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District auditor reports $18.15M ending fund balance; federal single audit delays formal acceptance
Summary
Auditor Andrew Kachinsky presented highlights of the FY2025 audit: ending fund balance about $18.15 million, capital and maintenance reserves, $4.533M excess surplus, and a pending federal single audit that delays formal acceptance of the audit report.
Andrew Kachinsky, the district auditor, presented the fiscal year 2025 audit highlights at the Oct. 27 board meeting and told trustees that a pending federal single audit prevents formal acceptance of the audit that night.
Kachinsky said the district closed the year with an overall fund balance of about $18.15 million, a decrease of approximately $4 million from the prior year. Components include a capital reserve of roughly $3.2 million and a maintenance reserve of about $1.126 million. He reported an excess surplus of $4,533,000 that has been consistent year‑to‑year and an unassigned fund balance (2% statutory calculation) of about $354,000. The audit showed $1.5 million in serial bonds were paid off, leaving approximately $30.87 million in outstanding serial bond principal; the net pension liability decreased by $784,000 to about $21.6 million.
On proprietary funds, the food service program recorded operating revenues of $2.2 million, nonoperating revenues of $958,000 and operating expenses of roughly $3.676 million, producing a modest operating decrease. Summer enrichment activity netted approximately $29,000 for the year.
Kachinsky said auditors included three advisory presentation suggestions and that no formal recommendations were required following testing. He also noted an open investigation referenced in the audit; auditors kept the disclosure in the report for transparency but said they did not anticipate a material liability emerging from it.
Why it matters: auditors’ numbers and reserve positions inform fiscal planning, the 2026 budget and the district’s ability to fund capital projects. The federal single audit must be completed before the district can formally accept the audit report.
Board reaction and next steps: trustees thanked the business office for responsive documentation. The auditor said he will provide the single‑audit documentation as soon as the federal compliance supplement is finalized, and the administration expects to bring the audit for formal acceptance at the next meeting following that finalization.
Representative quote: “We were subject to a federal single audit… I can't issue the report until it's finally approved,” Kachinsky said.
Ending: The board heard the audit presentation and will act on formal acceptance once the federal single audit is complete.
