Kansas school district reports positive financial audit results under new management strategy

During the April 2025 Board Meeting of Seaman USD 345, significant financial insights were shared, highlighting the district's compliance with Kansas cash basis laws and the overall health of its finances. The meeting, held on April 15, 2025, revealed that the district received an unmodified opinion on its financial statements, indicating a materially accurate representation of its financial activities for the year.

The district's financial report showed a positive trend, with an increase in unencumbered cash balances by over $20 million, bringing the total to approximately $20 million. This increase reflects effective management and spending decisions, as the district began the year with $18.1 million, received $75.8 million, and spent $73.4 million. Notably, the general fund ended the year with zero cash, adhering to state regulations, while the supplemental general fund concluded with a healthy reserve of $680,000.

The meeting also addressed compliance with Kansas statutes, confirming that the district operated within its publicly approved budget across all funds. However, a significant finding was noted regarding internal controls related to cash receipts for activity and agency funds. The district has committed to improving these controls to prevent future discrepancies.

Additionally, the board discussed the implications of the Kansas Public Employees Retirement System (KPERS) shortfall, which currently stands at $38.7 million for the district. While this figure raises concerns, it is classified as a disclosed liability rather than a funded one, with hopes that state support will address the shortfall in the future.

Overall, the meeting underscored the district's financial stability and commitment to transparency, with plans for continued improvement in financial management practices. The board's proactive approach to discussing these issues reflects a dedication to maintaining the trust of the community and ensuring the district's fiscal responsibility.