ROSEMOUNT, Minn. – District 196 Rosemount-Apple Valley-Eagan Public Schools has received a "clean" unmodified audit opinion—the highest level of assurance possible—following the presentation of the 2024-2025 Annual Comprehensive Financial Report to the School Board on November 10.

The independent audit, conducted by the accounting firm Eide Bailly LLP, found zero material audit findings and confirmed that the district’s financial statements are accurate and transparent.

“No Surprises” Fiscal Management 

During the presentation to the School Board, Eide Bailly Partner Jamie Fay praised the district’s "conservative budgeting," noting that the district’s revenues came in slightly over budget while expenditures remained under budget.

"Conservative budgeting is what I see in a lot of my Minnesota school districts," said Fay during the meeting. She added that in her work with the district's finance team, "There are never any surprises coming up."

The School Board welcomed the consistency. "The best thing you said was there's no surprises. That's my favorite part," said Board Member Jackie Magnuson. "There shouldn't be any surprises. Thank you to everybody who worked on this."

Key Financial Highlights:

• Strong Financial Position: The district’s total net position increased by $47.3 million during the fiscal year.
• Operational Efficiency: The district’s General Fund revenues ($512,414,251) were approximately $2.5 million over budget, while expenditures ($511,637,767) were $3 million under budget.
• Responsible Fund Balance: The General Fund’s unassigned fund balance stands at $76.25 million, representing 14.9% of annual operating expenditures, in alignment with the School Board’s minimum fund balance policy to ensure stability during economic fluctuations.
• Stable Enrollment: Serving approximately 28,500 students (average daily membership), District 196 remains the third-largest school district in Minnesota, with enrollment projections remaining stable over the next five years. Enrollment fluctuations over the last five years are with +/- 0.84%.

A Team Effort 

Danny DuChene, Coordinator of Finance, presented the report to the Board, emphasizing the extensive work required to achieve these results.

"We are proud to report that the 2025 audit includes a clean unmodified audit opinion with zero material audit findings," DuChene said. He credited the result to the "collaboration, communication, teamwork, trust, and honesty" of the entire district, all principals, budget managers, coordinators, and the whole finance department—led by Director of Finance and Operations Christopher Onyango-Robshaw, Controller Seth Mader, and Manager of Financial Systems Kim Woods.

The full 2024-2025 Annual Comprehensive Financial Report is available on the district website.

Awards and Federal Reporting 

District 196 continues to be recognized for excellence in financial reporting. The district was awarded the Certificate of Excellence in Financial Reporting (2024) from the Association of School Business Officials (ASBO) International for the 22nd consecutive year. The district had also earned the Meritorious Budget Award for fiscal year 2025 (its 10th consecutive year) and for the current fiscal year 2025-26 (11th consecutive year).

While the financial statement audit is complete, the report on federal grant awards is currently pending final compliance guidelines from the federal government.  At the time of the audit presentation, Eide Bailly had zero material audit findings or concerns for federal programs.

Voter-approved Referendum Funds

In November 2015, voters approved a bond and a 10-year technology capital projects levy to fund classroom technology. With the levy set to expire in 2025, the district held a referendum on November 4, 2025, and gained 68% approval to renew and increase the levy through 2035.

On November 5, 2019, district voters approved a 10-year operating referendum with an inflationary factor. These funds have been used to reverse the reductions of previous years and provide additional support for areas of great need, including mental health support and after-school activity buses, which allow more students to participate in enrichment activities beyond the school day.

On May 9, 2023, district voters approved two new building bond referendum questions for $493 million in capital improvements. Referendum question 1 provided the District with $374 million in bonding authority to make safety and security improvements at all schools, a new elementary school, a new Rosemount Middle School and repurposing the current school, additions to Scott Highlands Middle School and Dakota Ridge School, finish renovation of Rosemount High School with an addition, renovation of Transition Plus, science lab and performance space improvements at secondary schools. The referendum questions also include $119 million to provide an activity center addition at each of the district’s four comprehensive high schools. The district received revenue from the first bond issuance in fiscal year 2024 and has been spending down the building construction fund balance. A second bond issuance is expected in 2026.