Senior manager at Brady presents FY2025 audit; district implements new accounting standard, audit finds one grant documentation issue

Angela, a senior manager at the audit firm Brady, presented the district's fiscal year 2025 audit and summarized the opinion and required communications to the board. She said the firm performed the audit in accordance with generally accepted audit standards and applicable government auditing standards and issued an unmodified opinion on the financial statements they audited.

Angela told the board the district implemented a new accounting principle this year: "we implemented a new accounting principle in this financial period which was for statement number 101 compensated absences," covering how sick leave and vacation are accrued. She said that change, together with a presentation change for the Career and Technical Education (CTE) academy fund, produced a prior‑period adjustment to fund balance and position on the financial statements.

Angela reported the firm issued an unmodified opinion on the major federal award programs it tested, including the special education cluster, the child nutrition cluster and comprehensive literacy awards. She said the auditors identified one internal‑control finding related to the special education cluster: time‑and‑effort documentation did not fully support payroll charges to the grant. "The numbers were right but the documentation that was supposed to reflect the amount of time and effort that it was charged to the grant just didn't match," she said.

On liquidity and fund balances, Angela said the building fund showed a large cash balance tied to a recent refunding. She noted a prior transfer last year of $3.8 million from the debt service fund and said the debt service fund this year reflected a positive position of $4.5 million. "Your fund balance makes up 14% of your expenses," she said, adding that translates roughly to "one to two months" of operating coverage.

Angela also reviewed the auditor's required communications: net pension and other liability estimates, uncorrected misstatements the auditors considered too small to adjust for individually, and general notes on the district's internal control report. She closed by thanking district staff (naming Naomi and Stephanie) for their assistance and offering contact information for follow up.

The board had no questions immediately following the presentation and thanked Angela for the report. The district did not announce additional corrective actions in the meeting minutes recorded in the transcript; the finding and the documentation issue will typically be addressed through follow up between staff and auditors.