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Beloit School District accepts clean FY25 audit; superintendent warns of $4.5 million budget gap
Summary
The Beloit School District board unanimously accepted a clean, unmodified audit for fiscal year 2025 and heard Superintendent Dr. Anderson say the district may need to cut roughly $4.5 million from the 2026–27 budget if a staff cost-of-living raise is granted.
The Beloit School District board unanimously accepted the district's annual financial audit for the fiscal year ending June 30, 2025, following a presentation by auditors who reported no material weaknesses.
Christina Dmer of Lauderbach & Aean told the board the firm issued an unmodified (clean) opinion and that this year's audit did not include a SAS 115 management letter. "We don't have anything that rose to the level of a material weakness that we would have to report to you," she said during the presentation.
Superintendent Dr. Anderson told the board the audit's favorable findings are welcome context as the district begins budget work for 2026'27. He said if the board chooses to fund a staff cost-of-living increase in the coming budget cycle, the district will face a shortfall of about $4,500,000. "If we want to balance the budget for the 26-27 school year, we're going to have to cut about $4.5 million if we look at giving a CPI... raise," he said.
Auditor presentation highlights included a modest net increase in the general fund (roughly $471,000) and a June 30, 2025 fund balance of about $10.96 million, with approximately $8.8 million unrestricted and $2.0 million restricted. The auditors noted the district remains below the board's self-set 18% fund-balance target and recommended the board either adjust that policy or pursue actions to restore the target.
Board members asked technical questions about disclosure and the single-audit work for federal grants; auditors said the federal single-audit testing is concluding in March. Director of Finance Stephanie Elwood and auditor Dmer responded to questions about notes and management's discussion and analysis, explaining that while management's discussion and analysis is required supplementary information, many governments do not include it in packaged statements.
Motion and vote: Tom Henkins moved and Brian Nichols seconded acceptance of the 2024'25 district financial audit report; the board voted unanimously to accept the audit.
The board will use the audit results as it develops its budget strategy in the coming months; Dr. Anderson said staffing choices and program adjustments will be key levers as the district seeks a balanced 2026'27 budget.
