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Two district‑affiliated nonprofit audits earn clean opinions; auditors note minor tax and footnote items
Summary
Auditors presented unmodified opinions for the Foundation for New Education Initiatives (revenues ~$5.1M; net change ~$300K) and the Magnet Educational Choice Association (revenues ~$369K; near‑breakeven). The committee approved both reports and asked about a $159,000 prior‑period tax assessment in the foundation audit.
The committee reviewed audited financial statements for two nonprofit entities affiliated with the district.
Verdeja Alvarez partners reported a clean (unmodified) opinion for the Foundation for New Education Initiatives for year ended June 30, 2025. Engagement partner Manny Alvarez said revenues were about $5.1 million, expenses roughly $4.7 million and the change in net assets was approximately $300,000. Committee members asked about a $159,000 prior‑period tax liability tied to Form 1099 issuance; auditors said some 1099s were not issued or had incorrect information, resulting in IRS penalties that largely were abated but left $159,000 outstanding as of audit completion.
HLB Gravier partner Juliana Dalmas presented an unmodified opinion for the Magnet Educational Choice Association (MECA) for the year ended June 30, 2025. MECA reported revenues and contributions of approximately $369,000 with a small deficit of about $774; auditors found no internal‑control deficiencies.
Both audited financial statements were before the committee as action items; members moved, seconded and approved acceptance for transmittal to the full board.
