Richland School District One finance team presents FY2025 annual financial report; committee hears clean audit and fund-balance plans

Richland School District One finance staff presented the district's Annual Comprehensive Financial Report for the fiscal year ending June 30, 2025, to the FNF committee at Stevenson Administration Building on Jan. 20, 2026.

The presentation, led by Arnett Edmund, director of accounting, Sierra Bean, director of budget services, and Sherry Matthews Hazel, chief financial officer, summarized the ACFR's four sections (introductory, financial, statistical and single-audit) and highlighted that the district received a clean audit with no material weaknesses or significant deficiencies. "We received a clean audit report indicating the financial statements are fairly presented," Sherry Matthews Hazel said.

Why it matters: the ACFR is the district's official, audited record of revenues, expenditures, debt and fund balance and is used by citizens, bond-rating agencies and investors to evaluate fiscal health. Staff said the report had been prepared to meet national and state accounting standards and noted the district submitted required materials to the state department on schedule.

Key takeaways from the report included a multi-year look at revenues and expenditures, schedules of capital assets and debt, and the single-audit schedule of federal awards. Arnett Edmund reviewed the single-audit section and the schedule of expenditures of federal awards, which the report lists at $56.7 million for fiscal year 2025.

The presentation also emphasized fund-balance management. Staff noted a year-over-year deficit of $2.7 million and discussed the district's board-required 10% reserve. "We set aside $9 million for fiscal year 2026" to help balance the coming year's budget, Sierra Bean said, and staff outlined planned one-time uses of fund balance including an $8 million capital projects allocation for devices, maintenance and security, reserves for summer instructional programs, student-meal hubs over breaks, and recruitment and retention incentives.

On expenditures, the finance team said salaries and fringe benefits represented the overwhelming share of the general-fund spending (about 84 percent) and that roughly 82 percent of expenditures by function went to instruction, including instructional-support positions such as counselors and media specialists.

Committee members asked several follow-ups. One member asked whether the district planned policy changes in response to the ACFR; staff said no immediate policy revisions were proposed but that they would return with recommendations if requested. Another member asked whether energy-savings equipment leases have produced net savings and whether that work contributed to roof or ceiling leaks; staff said the projects are multi-year and have produced savings in prior reviews and agreed to investigate reported leaks and report back. Staff also agreed to research how retired board members' payroll and retirement deductions have been handled historically and to provide details to the committee.

The presentation documented component-unit reporting for charter schools and included ten-year statistical trend tables. Staff noted the district has sought GFOA and ASBO recognition for its report and expects continued recognition for consecutive-year award submissions.

The committee publicly thanked CFO Sherry Matthews Hazel as she prepares to retire. The committee adjourned after the presentation and question-and-answer period; staff committed to follow up on the facility and payroll questions raised during the meeting.

Provenance: Topic introduction began with the finance presentation and overview (ACFR section) and concluded with the committee's closing remarks and adjournment.