Jeffrey Kowalczyk, the engagement auditor representing Barbara Kane Thornton, presented the district’s financial statement audit for the year ended June 30, 2025, and told the board he is "anticipating issuing a clean or unmodified opinion on the financial statements" and an unmodified opinion on compliance for major federal programs.

Kowalczyk explained that final federal guidance (the federal compliance supplement) was delayed — first by the complexity of changes to auditing standards and later by a federal government shutdown — and that auditors are awaiting the final supplement to complete and formally issue the federal single audit. "At this point, it's a waiting game to see when the government reopens and then after that, how many additional weeks they need to finalize," Kowalczyk said.

He also described a new accounting standard affecting compensated absences (accrued sick and vacation time) that increased the district’s entity‑wide compensated‑absence liability by approximately $5.4 million. Kowalczyk emphasized that the compensated‑absences recognition affects entity‑wide, full‑accrual statements and notes but does not alter the district’s general‑fund (budgetary/cash) position.

Board members asked about timing for final audit approval. Administration recommended delaying formal acceptance until federal guidance is released and suggested certifying the audit in January if necessary; the board discussed scheduling a motion to finalize the report at that later meeting.

Next step: administration and the auditor will wait for the federal compliance supplement; the auditor indicated he does not expect additional testing will be required and expects issuance of clean opinions once the supplement is finalized.