Auditor gives Watertown Unified a clean opinion; district shows strong fund balance

The presenter for the auditing firm told the committee the independent auditors issued an unmodified — or "clean" — opinion on the Watertown Unified School District’s financial statements, the strongest available professional assurance on the records.

In a brief summary of the Management Discussion & Analysis, the presenter said the district recorded roughly $65,000,000 in governmental expenditures for the year, of which about $32,000,000 was spent on direct instruction. The presenter reported a positive net position of about $58,000,000 and an increase in net position of roughly $1,200,000 over the prior year.

The presenter also highlighted liquidity: the district’s general fund balance stood at about $24,000,000, or roughly 44% of current-year expenses — a level the presenter described as high relative to the typical 15%–50% range seen among peers.

Committee members asked for clarifications about long-term liabilities. A member asked whether the $4.2 million listed as compensated absences represented accrued sick pay for all employees; the presenter confirmed the liability encompasses all employees and explained payout rules depend on local policy and eligibility. The presenter cautioned that the $4.2 million is an accounting liability and does not necessarily represent an immediate cash borrowing need.

On debt, the presenter said bonds payable fell from about $8.3 million to just over $3.3 million after scheduled principal payments and some cash defeasance transactions, which reduce future interest costs. The presenter recommended continuing active debt management to preserve flexibility for future capital needs.

The presenter concluded that, overall, the audit contained no material adverse findings and that the district appears to be in sound financial condition, noting the Wisconsin Retirement System funding level (reported in the audit) at approximately 98.8% as additional context.