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District auditor reports clean audit, rising state aid and $2.5M unreserved fund balance
Summary
Auditor Anthony Ardo told the Denellum Board that the district’s fiscal 2025 audit contained no findings for the second consecutive year, state aid more than doubled since 2021, and the district reported an unreserved general fund balance of about $2.5 million.
The Denellum School District’s audited finances for fiscal year 2025 show a stronger position than in recent years, the district’s auditor told the board on Jan. 6.
Anthony Ardo of Ardo & Company presented the fiscal‑year audit (covering July 1, 2024–June 30, 2025) and said the report was completed and released late last year. “This is the second year in a row that we don't have any audit findings or recommendations,” Ardo said, noting the district received an unqualified presentation and no formal findings.
Ardo walked trustees through the district’s fund structure and revenue drivers. He said state aid rose sharply in recent years — from roughly $9 million in 2021 to more than $21 million in 2025 — driven in part by new preschool education aid. That increase, Ardo said, accounts for much of the growth in operating revenues.
On the balance sheet, Ardo reported an unreserved (unassigned) general fund balance of about $2.5 million, compared with the district’s allowable 2% cap of roughly $790,000. He also said the district’s capital reserve stood at approximately $8 million as of June 30, 2025, after board‑authorized transfers and planned use for debt service and preschool expansion projects. “All in all, the finances of the district look stellar,” Ardo said.
Business administrator Rich Pepe and the superintendent confirmed the board will use reserves in coming budget cycles for planned projects rather than immediately pursuing a referendum, while continuing routine debt service obligations. Trustees asked questions about the composition of expenditures, on‑behalf benefit accounting for teacher pensions and the district’s capital planning approach.
The auditor and administration said most current capital projects are winding down, and the district will continue quarterly review of the capital‑planning schedule.
