Smithville ISD Receives Clean Audit For FY25

By Kristen Meriwether, Publisher

The Smithville Independent School District received an unmodified opinion, also known as a clean opinion, for the fiscal 2025 audit. Due to the federal government shutdown, the report given at the meeting was a draft until federal data can be finalized.

The lone written comment was due to the Career and Technical Education program not meeting the required spending level for the year. Auditor Kim Roach, from Armstrong, Vaughan and Associates, said the comment was required by the Texas Education Agency, but not something she considered a red flag.

During discussion, board member Josh Magden asked for the cause, wondering if it was a teacher the district was unable to hire. Superintendent Molley Ealy said she didn’t have the data in front of her, but noted those grants typically cover supplies or materials, not personnel.

Roach clarified that the district kept its spending levels the same, but the allotment from the state actually increased, causing the shortfall in spending.

“More than anything, it is just a planning opportunity for management to go through and determine what funds might need to be reallocated or redistributed to make sure you don’t lose some of that funding opportunity in the CTE program,” Roach said at Monday’s meeting.

Stacy Tiner, the district’s business manager, said she implemented a monthly review of this specific funding to ensure the district won’t be short of the spending requirements again.

Roach also noted that the district brought its fund balance up to 6.7 months of average operating expenses, putting it in a “very financially healthy position.” By comparison, most districts keep two to five months of operating expenses on hand.

She noted that even with the projected deficit budget of $287,000 for this fiscal year, the district is still in a good financial position and would not drop below the recommendation.

“It’s a wonderful honor to work with the district,” Roach said. “It’s one of the highlights of my year, getting to come out here for field work, and getting to work with everyone out here. All the staff, all the personnel are wonderful to work with.”