Pine Tree ISD accepts 2024–25 audit showing much smaller deficit than projected

The Pine Tree ISD Board approved the district's financial audit for the fiscal year ended June 30, 2025, after auditors reported an unmodified opinion and no findings of noncompliance or internal control issues. Salena Jackson presented the audit summary and noted that the district ended the year with an estimated deficit of $84,000, substantially less than the $3.5 million that had been anticipated.

Mishal Majewski of Pattillo, Brown & Hill, who supervised the district's audit, told trustees the firm could not issue its final opinion letter until the federal compliance supplement for 2025 is released—a requirement tied to the district exceeding $750,000 in federal grant spending. "The auditors are not allowed to issue a final opinion letter until the compliance supplement has been completed," Majewski said. The Texas Education Agency has extended the district's submission deadline to February 2026. Board member Mike Smith moved to accept the audit; Aaron Klein seconded the motion, which passed 7-0.

The district reported a General Fund balance of $18.9 million, with $11.9 million unassigned, equating to roughly 89 days of fund balance (above the district's 75-day requirement). Trustees also discussed a large debt service balance related to a Qualified School Construction Bond (QSCB); the district holds $6.3 million against a required $5.8 million, creating an excess that can be used only to pay voter-approved bonded debt or to buy down the tax rate. The board has chosen to use these excess funds to reduce the tax rate.