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Deming Public Schools accepts FY2025 audit; auditors note repeat findings and recommend fixes
Summary
The board received a clean (unmodified) FY2025 audit opinion but was told of two repeat findings — school personnel act training/contract documentation and budgetary function variances — and approved related budget adjustment requests to reconcile accounts and fund summer programs.
The board heard Scott Ellison of Otamendi Accounting Group present the district’s fiscal year 2025 audited financial statements. Ellison said his firm issued an unmodified (clean) opinion on the district’s financial statements and on federal awards. He noted the district’s discretely presented component unit, Deming Cesar Chavez Charter School, is included per state audit rules.
Auditors identified two noncompliance/repeat findings: (1) School Personnel Act issues, including one employee with a substitute license and missing notifications/waivers and some required trainings not completed; and (2) budgetary compliance variances where expenditures were posted to incorrect functions relative to the adopted budgets. Ellison stressed the large pension and retiree‑health accounting disclosures (a prorated unfunded pension liability of about $93 million and ~$12 million of retiree health liability) are required by accounting standards and are not immediate cash obligations for the district.
Board members expressed concern about the charter‑related questioned costs (a figure of roughly $225,000 was referenced) and commended accounting staff for timely reconciliations. The board voted to accept the FY2025 final audit report.
Immediately following, the board approved several budget adjustment requests (BARs) to move funds for Title I summer recovery programs, adjust operational revenues after SED adjustments, cover transportation rentals, finalize ROTC salary shares, reconcile GO bond spending, and reduce certain function budgets to match June 30 cash estimates.
What happens next: district staff will implement corrective steps for the School Personnel Act findings, reconcile the budgetary function variances, and report back on remediation timelines.
