The Orono Public School District Board of Education on Nov. 10 accepted the district's 2024-25 audit and annual comprehensive financial report after auditors from LB Carlson presented findings that included an unmodified opinion and no internal-control or compliance findings.

"We were able to give the district an unmodified opinion on your basic financial statements," said Bill Lauer of LB Carlson during the board meeting. Lauer told the board the auditors found the district's records "in excellent condition" and had no new findings in the Minnesota legal compliance review following a 2024 finding on contract withholding that was cleared in 2025 testing.

Lauer said implementation of new Governmental Accounting Standards Board guidance on reporting compensated absences required the district to report an additional long-term liability of approximately $1,300,000 at the entity-wide level. "That implementation of that new guidance changed to be getting that position by about $1,300,000 for reporting that liability," Lauer said, adding the change affects entity-wide statements and does not alter fund-level statements used for budgeting.

The auditors also described the district's high-level financial results: general fund expenditures around $50 million, general fund revenues of about $48.7 million (roughly $766,000 over the final budget), year-end cash and investments just over $10 million, and a total fund balance of about $4.9 million. Lauer noted the district's unassigned fund balance was just under the district policy target (about 4.7% of 2026 budgeted expenditures, compared with the 5% policy target).

Auditors also told the board that the district will receive a separate single-audit report for federal awards at a later date because the federal compliance supplement had not been finalized; the U.S. Department of Education extended the single-audit deadline to March 31 to allow issuance once the supplement is released.

Board member Todd (S2) described the results as a positive sign of fiscal stewardship, and members thanked finance staff and auditors for the work. Following the presentation, the board voted to accept the audit and related reports as presented by LB Carlson (motion moved by S2 and seconded; voice vote recorded as "Aye").

The acceptance resolves the board action to approve the annual audit; the auditors and district indicated the single-audit schedule will be issued separately when federal guidance is finalized.