CUSD 201 board approves clean fiscal 2025 audit; discussion flags cash-allocation and budget pressures

The CUSD 201 Board of Education approved the district's fiscal 2025 audit on March 18 and directed staff to follow up on accounting allocations after the audit presentation highlighted a marked year-over-year drop in cash.

Allison Kmen, the manager in charge of the audit, told the board the auditors issued a clean, unmodified opinion for fiscal 2025 and pointed board members to financial highlights in the report, including a general fund balance of about $9.1 million out of a total fund balance of $16.2 million and a net decrease in the general fund of roughly $968,000. Kmen also noted one current-year IT-related recommendation and several prior-year items still in progress.

The audit presentation prompted detailed questions about an accounts-payable sweep and co-mingled cash that showed some individual funds with negative balances. During the Q&A, board members asked whether timing of tax payments or software issues could explain the discrepancy; district staff said they are reallocating revenues and adjusting procedures. District staff reported the cash balance fell sharply from about $12.6 million in June 2024 to about $1.9 million in June 2025, and said part of the gap could reflect delayed tax receipts or allocation timing.

Ron, a district finance staff member who addressed the board during the question-and-answer period, said adjustments have been made to allocate replacement tax receipts and other revenues to the correct funds and that the district is taking steps to correct negative fund balances. "It is being addressed for sure," Ron said in response to board questions about specific reallocations.

Board members and staff also discussed next steps for transparency: the auditors' documents and any contracts over reporting thresholds will be posted on the district's website after formal approval. The board approved the audit by roll call vote.

The board discussed budget pressures and pending reductions to balance the district's budget for the coming year. The finance-and-facilities recap that followed the audit noted enrollment projections, working cash concerns and an ongoing eminent-domain matter; the committee scheduled community listening sessions for April 28 (in person), April 29 (Zoom) and May 19 (in person) to gather public input on facilities and funding priorities.

What happens next: the board approved the audit and asked staff to return with follow-up on the co-mingled cash allocations and on any year-over-year timing factors affecting the cash balance. The board also signaled it will pursue potential federal funding opportunities and continue committee-level discussion about long-term facilities planning.