Auditor: No financial-audit findings; single audit to flag about $60,000 in Title I questioned costs; board approves 2024–25 audit

Dan Merritt, the district's financial auditor from Raymond Robson, told the Redford Union Schools Board on Dec. 1 that the firm found no findings in the 20241 financial statement audit, a first in several years for the district. "For the first time since we have been doing the school district audit, we had no findings in the financial audit report," Merritt said.

Merritt explained the firm issued a short "yellow book" letter now because guidance for the required single audit was delayed by the Office of Management and Budget; the single-audit report is expected to be completed before Dec. 25 and could include a finding tied to federal-grant documentation. "It is going to result in approximately $60,000 of questioned costs related to the Title I award," he said, attributing the missing invoices largely to staffing turnover and record-retention gaps.

The auditor also walked the board through the general-fund budget-to-actual schedule and warned about fund-balance use. Merritt said the district used about $3,800,000 of fund balance in 202425, starting the year with roughly $7,200,000 and ending with about $3,500,000, placing the district below roughly a 10 percent fund-balance level. "Pay very careful and close attention to what your finance department is telling you about the budget for the coming fiscal year," Merritt said, advising restraint on using fund balance going forward.

Board members asked when they received the audit packet (Merritt said Oct. 31) and pressed staff about timing and whether the board had adequate time to review a 71-page financial statement. Merritt and finance staff explained the difference between limited internal-control review for the financial statement audit and more extensive testing for the single audit; he offered to return to present the single-audit findings when the report is final.

Action taken: on the recommendation of interim Chief Financial Officer Maria Singer and interim Superintendent Judy Nachman, the board voted to approve the 202425 financial audit as presented. The roll call recorded Mister Bailey voting No and five other voting members voting Yes (motion carried). The board also approved the routine annual summer tax resolution for 2026 and selected the Michigan Association of School Boards to assist with the district's next strategic plan.

What happens next: the auditor will issue the single-audit report before Dec. 25; Merritt said the state may issue a management decision on questioned costs, which can include recoupment unless the district can remediate by locating supporting invoices. The board can request that the auditor return to present the final single-audit report and answer follow-up questions.