District audit returns clean opinion; auditor flags procurement‑code finding and adjustments

Hinkle & Landers audit partner Mr. Farley told the Jemez Valley Public Schools board that the district’s 2025 financial statements and federal compliance received unmodified (clean) opinions. "In our opinion, we believe the audit report is in compliance and it meets the requirements under GAAP and GASB," Farley said during the board’s special meeting.

Farley said the firm proposed several adjustments to the district’s books during the audit and described both attest and non‑attest work the firm performed. He told trustees the engagement included the single‑audit review of major federal programs and specifically named Impact Aid as the major federal program covered. "We had quite a few non attest adjustments…certain cash to accrual adjustments are required," he said, and later referenced about 54 adjustments the team expected to record.

The auditor also reported a finding related to the district’s procurement code that affected both financial statement presentation and federal compliance reporting. Farley described the procurement finding as the only significant procedural issue identified; he said there were no disagreements with management and the audit opinions remain clean.

Board members asked clarifying questions about the scope of the audit and upcoming accounting changes. Farley said new GASB guidance affecting compensated‑absence and capital‑asset presentation will change how some items appear in next year’s reports but does not alter the current unmodified opinion.

Next steps the board discussed included staff review of the recommended adjustments and follow‑up on the procurement finding. The board did not take formal action on the audit during the meeting beyond hearing the presentation.