Silver Falls SD 4J reports clean audit, improved net position and projected modest surplus

The Silver Falls School District Board of Education heard a finance update Feb. 9 that the district received an unmodified — or "clean" — audit opinion and is projecting a modest positive margin for the fiscal year.

Tom, presenting the enrollment and finance report, said statewide revenue forecasts improved and the district’s projections show approximately $54,000,000 in revenues against about $52,400,000 in expenditures, producing an approximate $1,600,000 surplus under current assumptions. He told the board the district’s net position improved by about $5,000,000, from a negative $7,700,000 to a negative $2,800,000. "For the last fiscal year, our district received what is called an unmodified or clean opinion," Tom said, adding that the finding indicates the district's financial statements are "fairly presented in all material aspects."

The presentation included auditor observations about the finance office’s staffing and internal controls. Tom said auditors from ClearTrails reviewed segregation of duties, purchasing and payroll controls and found the district’s financial statements reliable while noting the business office is "fairly lean for a district our size." He said auditors are available by email for any follow-up questions.

Board members pressed on the district’s fund balance policy (policy DBDB) and whether a 10% target should remain. Tom noted the district’s projected ending general fund balance is near the top of the recommended 3–8% range and said staff will bring a proposal for any policy changes. He also warned that large facility needs — and the accounting treatment of long-term liabilities — mean the district should consider building capital reserves and a prioritized 1‑, 5‑ and 10‑year facility list.

The board discussed accounting-standard changes that affected how compensated absence balances are reported. The presenter said new accounting rules require districts to report unused leave as a future liability under a revised methodology; that change increased reported compensated-absence balances this year and affected the net position calculation.

The board did not take any formal budget‑adoption votes at the meeting; they scheduled follow-up work as part of ongoing long-range facilities and strategic planning items.