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Auditor gives Dexter schools an unmodified opinion; single audit flags two findings
Summary
Auditor Juan Garcia told the board the district's financial statements received an unmodified opinion for year ending 2025; the single audit identified two remaining findings (one prior finding resolved), including a PED reporting reconciliation issue and budget‑to‑actual overexpenditure items; the board approved the audit unanimously.
Juan Garcia, the auditor presenting the district's year‑ending 2025 audit, told the Dexter board on April 20 that the financial statement audit received an unmodified opinion — the highest standard an auditor can give.
"We do have what we call an unmodified opinion," Garcia said, adding that the single‑audit review (triggered because federal expenditures exceeded $750,000) was presented "fairly in relation to the financial statements as a whole." He noted a $3 million change in net position on the government‑wide statements and a fund balance of about $1.2 million on the fund statements.
Garcia summarized the single‑audit testing selection and results: the auditor selected the child nutrition program for testing, noting total federal program expenditures of about $1.7 million for that program year; he also said the team reduced prior year findings from three to two, with one previously reported PED reconciliation error now resolved. He described the remaining items as issues around reporting and expenditures versus adopted budgets and noted the statute‑level materiality for budget excess: "On budgets there is no leeway, it's $1 off and it's because it's set by statute," Garcia said when explaining the strictness of budget controls.
Board members asked clarifying questions about the findings and timeline. Garcia described the audit timeline (initial submission to the Office of the State Auditor on Jan. 20 and about a two‑month delay before the state released the report) and proposed follow‑up via an exit conference with board members and management.
After the presentation the board moved, seconded and unanimously approved the 2025 audit report.
Clarifying details: Garcia said the district had a change in net position of roughly $3 million and fund balance movement of about $160,000; the single‑audit selection focused on child nutrition with program expenditures of about $1.7 million. He also explained that resolutions for budget overages typically use budget adjustment (BAR) procedures.
Next steps: District management will meet with the auditor in an exit conference, address the two repeated findings, and execute required budget adjustments or corrective actions to resolve compliance items identified in the single audit.
