The district’s auditors told the board they intend to issue an unmodified (clean) opinion on the financial statements for the year ended June 30, 2025, but also identified findings the district must address.

An audit representative said the general fund increased approximately $2.7 million from the prior year to a $74.8 million fund balance at June 30. The auditors noted the unassigned fund balance — the portion of fund balance not set aside for reserves — is approximately 10.9% of next year’s budget, higher than the commonly recommended 4% limit, and listed it as a finding tied to some reserves not being fully funded.

The auditor also reported findings related to adjustments to accounts payable and missing documentation in older personnel files, which the auditor said management is addressing with a digital personnel‑file platform. The auditor noted the district received $216 million in COVID relief funds and had spent about $212 million as of June 30.

Trustees pressed the administration on apparent discrepancies between earlier, informal estimates discussed in spring and the audit’s final numbers. Administration and the auditor said those prior figures were preliminary and that the audit closes the year with audited revenue and expenditure totals; they committed to providing reconciliations to trustees.

The board discussed the implications for budgeting and asked staff to return with more precise reconciliations comparing prior internal projections and the audited results.