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Auditor reports preliminary 'clean' opinion; fund balance up and OPEB liability falling
Summary
External auditor told the committee the district will receive an unmodified (clean) audit opinion for FY25, reporting a $3.4 million general fund balance, pension funding levels and a reduced OPEB liability; no reportable findings yet.
An independent auditor reported preliminary results to the school committee April 13, saying the district should expect an unmodified (clean) audit opinion for fiscal 2025 and that no significant audit findings have emerged to date.
Kyle Connors, managing director for CBIS, told members the district closed FY25 with a general fund balance of $3.4 million, representing 5.8% of the operating budget and about 1.8 percentage points above internal targets. He said revenue exceeded budget by roughly $800,000—mainly from state aid and Medicaid reimbursements—and noted a one‑time $250,000 gain related to the East Bay Collaborative building sale. Expenditures ran approximately $616,000 over budget, largely driven by special‑education out‑of‑district placements.
On retirement obligations, Connors reported plan funding levels: general employee plan roughly 82% funded; teacher pension plan just under 68% funded; teacher survivor benefit plan funded at about 194%. The pension‑related liability shown on financial statements was about $34.2 million. He also said the district’s OPEB liability has declined from about $17.7 million (2018) to about $7.5 million.
Connors said auditors are also testing federal programs (including ESSER) and had not identified noncompliance to date for the tested programs; some testing remained underway. He closed by saying CBIS had no recommendations or findings to report this year related to internal controls, noting past segregation‑of‑duties concerns have been addressed as positions were filled.
Board members asked about the OPEB target and whether the district should aim to reduce liability to zero; auditors said assumptions and actuarial methods drive that discussion and it would depend on policy choices. The audit remains in final form; staff will present the complete package when finalized.
