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Tumwater School District receives clean audit opinions but auditors warn fund balance is fragile
Summary
State auditors issued unmodified (clean) opinions on Tumwater School Districtfinancial statements and federal grant compliance for fiscal 2025 but warned the districtcould only sustain about nine days of operating expenditures at year end and recommended continued budget monitoring.
State auditors told the Tumwater School District board during an exit conference that they will issue unmodified (clean) audit opinions on the district's financial statements and on its federal grant compliance for the audited periods.
"We are issuing an unmodified clean audit opinion on the district's financial statements," Alicia, an auditor with the state auditor's office, said during the presentation. At the same time, auditors flagged the district's financial condition as a concern: "the district could only sustain 9 days of operating expenditures at the end of 2025," Alicia said, citing declines in the general fund balance and fund balance efficiency over recent years.
Why it matters: A clean opinion indicates the financial statements can be relied on for decision-making, but the auditors' financial-condition finding signals limited financial flexibility. Auditors recommended the board and management continue to prioritize the district's financial condition, closely monitor operations, and update the district's financial response plan as current data dictate.
Auditors told the board they examined internal controls and found no significant deficiencies or material weaknesses that would require modification to the opinion. The audit covered the financial statement period Sept. 1, 2024through Aug. 31, 2025 and the accountability audit period Sept. 1, 2023through Aug. 31, 2025.
Board reaction: A board member praised the finance team for work to address recent trends and noted the district has made staffing changes and budget reductions in response to the condition. The board thanked finance staff members Kira Aker and Ben Raric for their role in the adjustments.
Next steps: Auditors advised continued monitoring and periodic updates to the district's financial response plan. Auditors also encouraged use of the office's FIT (financial intelligence) tool to review local and peer financial indicators.
The exit conference closed after auditors confirmed audit costs aligned with original estimates and explained the published reports and federal audit clearinghouse submission will be posted next week.
