RHR Smith and Company told the MSAD 52 board that the district's fiscal year 2024 financial statements received an unmodified opinion and that the district ended the year with roughly $1.9 million in combined surplus from revenue and expenditure savings.

Sam Oganoff of RHR Smith, one of the auditors who presented the report, said the firm issued "the highest opinion that we offered or issue, which is an unmodified opinion." The auditors delivered standard letters accompanying the audit, including a SAS 114 communication that flagged no major disagreements with management and a separate management letter with procedural recommendations.

The audit presentation to the board summarized key figures: total assets of about $34.8 million for FY24, capital assets near $23 million (about 66% of total assets), and net position of roughly $21.2 million. The auditors reported that combined revenue for the district was about $42.6 million and that expenditures were about $42.4 million, yielding positive results largely attributable to program on-behalf payments and savings in staffing costs.

On fund balances, the auditors noted the general fund's unassigned balance represented about 17% of annual expenditures (about two months of expenditures) with a total general fund balance of approximately $7.7 million. The nutrition (school lunch) fund drew down slightly as planned to meet state requirements, and ESSER (federal pandemic) funds remained as a separate major fund.

Oganoff highlighted audit recommendations in a management letter: stronger cash-receiving procedures, improved documentation of cash disbursements, and more consistent general ledger reconciliations. He and the district finance staff said turnover contributed to some of the documentation shortfalls but that responses and corrective plans were in place.

Board members asked whether a $1.9 million surplus was typical. Oganoff said he had seen similar surpluses in FY24 in other Maine and Vermont districts, in part because some federal funding streams are tapering off and districts are holding more reserves to smooth upcoming budgets. He also and district staff told the board that unfilled positions, particularly in transportation and special education staffing, contributed to expenditure savings.

The presentation was informational; there was no board vote attached to the audit report itself. The auditor invited board questions and said management had responded in writing to each recommendation in the management letter.

Why it matters: The unmodified opinion affirms the independent auditor's view that the district's financial statements fairly present district finances for FY24. The reported fund balance provides short-term flexibility for the district as federal COVID-era funds phase out; however, the management letter flagged procedural items the district should address to reduce risk in cash handling and accounting documentation.

What comes next: District finance staff will continue to implement corrective plans described in responses to the management letter. The board and finance committee will review follow-up on recommendations as part of normal oversight and upcoming budget workshops ahead of the FY25 budget referendum.