All Minnesota school districts are required to conduct an annual financial audit at the close of each fiscal year. The fiscal year for school districts is July 1 to June 30. Each annual audit is conducted by an independent audit firm. The final audit report is presented to the school board in December of each year.
The cost of running the district is paid through a combination of local property taxes, state aid and other revenues such as fees, gate receipts, etc.
Fiscal Year 2017 Audit
The District's Fiscal Year 2017 audit was conducted by the firm of Bergan KDV, who presented the results of the audit to the school board on December 4, 2017. The reports shared with the Board include:
Highlights of the year's audit results include:
- The auditors issued an unmodified opinion which is the best opinion an auditor can issue.
- The district’s financial statements present fairly in all aspects the district’s financial position.
- The auditors found a material weakness in lack of segregation of accounting duties which is due to a limited number of district office staff. It is a finding that is noted yearly for the district.
- A significant deficiency in the preparation of financial statements, offsite cash collections, journal entry approval and documentation, and community education revenue.
- With actual revenues at $58,394,312 the budget produced a positive variance of $1,628,125 or 2.9%. This is due to an increase in student enrollment and higher than anticipated special education revenue. Other revenues were over budget due to budgeting conservatively for student activities.
- Actual expenditures were over budget by $671,190 or 1.2%. This is due to various projects such as improvements to the nurse’s office at Middle School West and modifications to special education classrooms at Middle School East.
- The fund balance increased by $1,204,439 from $15,688,467 to $16,892,906, which is 2.9 months of operating expenditures. District policy requires a General Fund balance equal to 1.5 months of operating expenditures.
- The unassigned fund balance increased from $12,714,533 to $13,934,239.
- The unrestricted fund balance as a percentage of unrestricted expenditures is 30.3%. This is compared to the state average of 20.7%. This statistic is often used to evaluate the financial health of a school district.
- The food service fund finished the year with a 44.4% fund balance, which is a very healthy $1,285,664. Revenues increased 5.8% due to increased meals served because of an increase in student enrollment. Expenditures increased 6% due to increased kitchen staff and increased food costs due to the additional meals served.
- Revenues exceeded expenditures by $140,815 in the Community Service Fund. This resulted in an increase in the fund balance by 7.0%.
Overall, the District continues to be sound and stable.
Fiscal Year 2016 Audit
The District's Fiscal Year 2016 audit was conducted by the firm of Bergan KDV, who presented the results of the audit to the school board on December 5, 2016.
Fiscal Year 2015 Audit
The District's Fiscal Year 2015 audit was conducted by the firm of BerganKDV, who presented the results of the audit to the school board on December 8, 2016.
Fiscal Year 2014 Audit
The District’s Fiscal Year 2014 audit was conducted by the firm of Kern, DeWenter, Viere, Ltd., and they presented the results of that audit to the School Board on December 1, 2014.