Board accepts clean audit but auditors warn fund balance is low — district could operate about eight days on reserves

The Ann Arbor Board of Education accepted the district's 2023‑24 annual audit after auditors gave a clean (unmodified) opinion but highlighted a shrinking reserve.

Jennifer Chambers of Plante Moran told trustees the audit found no material weaknesses, no audit adjustments and no federal program findings. "We rendered an unmodified opinion on both the financial statements and the federal awards report," Chambers said, the highest level of assurance an auditor provides.

Chambers presented the headline numbers: actual revenues were about $316.6 million and actual expenditures about $322.5 million for the 2023‑24 fiscal year. The district used roughly $5.7 million of fund balance during the year, leaving an ending general fund balance of about $7.1 million (approx. 2.2% of expenditures). Chambers translated that to an operating cushion of about eight days of expenditures.

"That fund balance percentage slipped below board targets in recent years," the auditor said, while noting the district continues to invest capital via bond proceeds (about $58.7 million in current‑year capital investments from the 2019 bond series and roughly $6.2 million from the sinking fund).

Trustees and auditors discussed recommended monitoring practices and the utility of fund balance threshold metrics; the auditor said many school districts aim for substantially higher reserves (a suggested target shown in the presentation was about 15% of expenditures).

Trustee Ward Smith moved to accept the audit; the motion was seconded and approved on recorded voice votes.

The audit acceptance completes the district's official review of fiscal year 2024 results; auditors and trustees said the board and administration will continue monthly monitoring and cost‑containment actions to support long‑term viability.