External audit gives Winston‑Dillard SD 116 a clean opinion, notes falling reserves and rising long‑term liabilities

The district's external auditor told the board that the financial statements for the year ending June 30, 2025, received an unmodified (clean) opinion and showed improvements in some operating metrics but notable declines in reserves and increases in long‑term liabilities. "Based on our audit, we've given the school district an unmodified opinion, and it was a clean audit with no qualifications or deficiencies noted," the auditor reported to the board.

The audit showed the government‑wide ending net position at $31,800,000, down about 8% from the prior year, and governmental funds ending fund balance at $6,327,000, down roughly 13%. Cash and investments were reported at $20,200,000 (an 8% decrease), while revenues were $25,400,000 (up 4%). The auditors also reported government‑wide expenses of $26,200,000 (up 3%) and total government‑wide liabilities of $27,100,000 (up 6%).

Auditors highlighted a substantial increase in the district's long‑term, unfunded pension liability, which the audit recorded at about $8,300,000 at year end, up from approximately $4,300,000 the prior year. The auditors said that actuarial changes and demographic shifts among employees drove much of that increase and that the liability will change over time as the employee mix and retirement rules evolve.

The report also noted an Other Post‑Employment Benefits (OPEB) asset of about $276,000, which the auditors said rose roughly 16% from the prior year. Board members asked about how the district plans to allocate fund balance and how long‑term liabilities will be addressed; auditors advised the board to monitor actuarial assumptions and future budget impacts.

The board took no formal action on the audit during the meeting; staff said final audit documents and recommended items would be returned with a resolution on a future agenda.