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Committee hears FY25 audit with unqualified opinion, discusses large OPEB liability
Summary
Auditor reported no findings and issued an unqualified opinion on the FY25 financial audit. Committee discussion centered on the district's OPEB/OPED actuarial liability (discussed as roughly $40–48 million) and options to increase annual contributions to an OPEB asset account.
The Northborough‑Southboro Regional School Committee received the FY25 audit report at its March 18 meeting after the audit subcommittee met with the district’s auditor and evaluator earlier in the month.
Becky summarized the subcommittee meeting and said auditor Tom Scandlin presented an audit with no findings and an unqualified opinion. Committee members said Scandlin praised the district’s financial records and the responsiveness of the finance team.
Discussion turned to the district’s other post‑employment benefits (OPEB/OPED) liability. Committee members described a large actuarial liability — discussed in the meeting as roughly $40 million to $48 million — that contributes to a negative net position presented in the audit. The committee noted the district currently contributes about $25,000 per year to an OPEB asset account and debated whether to increase that contribution and to develop a 10‑year funding plan to mitigate the liability over time.
Members also discussed the Worcester regional retirement assessment included in the operational budget and how retiree costs influence long‑term financial position. Questions were raised about periodic rebidding for audit services; administration said a request for proposals was done previously, Scandlin has served several years, and guidance suggests re‑bidding every seven to ten years.
After discussion the committee moved to approve the FY25 audit; a roll‑call vote approved the audit unanimously.
The committee did not adopt a specific OPEB funding change at the meeting but identified the development of a longer‑term plan and potential increased annual contributions as topics for future budget consideration.
