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Weslaco ISD auditors report $14.4M general-fund shortfall; board approves annual financial report
Summary
External auditors issued a clean (unmodified) opinion on Weslaco ISD’s FY2025 financial statements but reported a $14.4 million general‑fund deficit and required corrective actions; the board voted to approve the annual comprehensive financial report.
External auditors presented the Weslaco ISD annual comprehensive financial report for the year ended June 30, 2025, and issued a nonmodified (clean) opinion while disclosing an audited general‑fund deficit of $14.4 million.
"The actual revenues came in at $198 million. Your expenses plus transfers totaled $212 million, giving you a loss of $14,400,000," the auditor said during the presentation. The audit report also included an $8.8 million adjustment for the new governmental accounting pronouncement on compensated absences; auditors said that adjustment affected government‑wide net position but did not change day‑to‑day fund operations.
Trustees asked for clarifications about where the deficit originated; the auditor cited instruction (payroll) as the major function contributing to the shortfall and said the district must adopt a written corrective action plan addressing functional overages. Superintendent Rivera said Region 1 and the district finance team are working on recommendations to reduce expenditures and increase nonrecurring revenues.
The board approved the comprehensive financial report on a motion by Dr. Jaime, seconded by Mr. Los Santos. No roll‑call tally was recorded on the agenda; the chair announced the motion carried.
The district will publish the auditor's corrective action plan (included in the audit packet) and return to the board with implementation steps and, where applicable, timelines for reducing recurring payroll pressures.
