Gilbert Public Schools audit shows stronger finances, clean opinion 

By Tom Blodgett
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Gilbert Public Schools reported improved overall financial health and received an unmodified, or clean, audit opinion in its annual comprehensive financial report for the fiscal year ending June 30. 

Bonnie Betz, the district’s associate superintendent, outlined the overall financial results and trends for the governing board last week, reporting a positive change in the district’s government-wide net position, which ended the year at $420.7 million.  

Betz said that total includes a negative unrestricted balance tied to the district’s proportionate share of statewide pension liabilities, a required accounting disclosure that does not represent an immediate cash obligation for the district. 

Audit findings and required communications were presented by Jennifer Shields of Heinfeld Meech & Co., who reported no disagreements with district management and no violations of auditor independence or ethical standards.  

Shields said the audit resulted in an unmodified opinion, the highest level of assurance available, and confirmed the financial statements were completed and issued on schedule. 

Shields also described key accounting estimates included in the report, including depreciation of capital assets, actuarial assumptions related to employee benefits, and pension obligations tied to the Arizona State Retirement System.  

She noted the district implemented a new accounting standard governing compensated absences during the fiscal year, a change that required extensive recalculation of employee leave liabilities. 

Betz provided additional context on the pension figures, saying the district’s proportionate share of statewide pension liability declined from the prior year due to improved investment performance and a reduced share of the system’s total obligation.  

She said the reported liability is intended as a transparency measure and does not indicate that the district owes that amount directly. 

Turning to fund-level results, Betz said governmental fund statements showed an overall increase in fund balance of about $11 million year over year. While asset values declined largely due to depreciation, she said the district saw a much larger reduction in liabilities, resulting in a net improvement in fund balance. 

Within the general fund, Betz highlighted increased interest earnings tied to the district’s participation in a retirement contribution prepayment program. She said the investment strategy generated millions of dollars in earnings during the past two years, strengthening the district’s long-term financial flexibility. 

Betz also reviewed spending patterns, noting that classroom expenditures remained steady at 69% of total spending, consistent with the previous year.  

She said interest costs on long-term debt declined as the district continued to pay down general obligation bonds, reducing outstanding bond debt to roughly $90 million and contributing to a lower bond tax rate. 

Additional updates from Betz included improved results in the food services fund following earlier losses tied to the end of universal free meals, the near-complete drawdown of voter-approved bond funds and results from internal service funds, including the employee benefit trust, where investment income largely offset a modest operating loss. 

The governing board unanimously accepted the report. 

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Tom Blodgett
Senior News Editor | Gilbert

tblodgett@iniusa.org

Meet Tom
Tom Blodgett joined Independent Newsmedia, Inc., USA, in 2022, when the company acquired Community Impact Newspaper's Phoenix-area properties. Raised in Arizona, he has spent more than 35 years in journalism in the state.

Community: He has served as an instructional professional in the Walter Cronkite School of Journalism and Mass Communication since 2005, and is editorial adviser to The State Press, the university's independent student media outlet. He also is director of operations for an 18U girls fastpitch softball team from Gilbert.

Education: Arizona State University with a BS in Journalism. 

Random Fact: He lived in Belgium during his freshman year of high school.  

Hobbies: Tweeting enthusiastically about ASU softball (season-ticket holder) and grumpily about other local sports (pessimistic fan).