Final 2023–24 audit: Fond du Lac School District posts $2.16 million deficit; special education shortfall remains

The Fond du Lac School Board on March 10 received the district's final 2023'24 audit from its business office, which shows the general fund ended the year with a net decrease of $2,158,925 and confirms continued transfers from the general fund to cover special-education costs.

The executive summary presented at the meeting said general-fund balances declined from $25,800,000 at the start of the year to $23,600,000 at fiscal year end (June 30, 2024). The audited statement of revenues, expenditures and changes in fund balance lists a net change of $2,158,925 for the year. The district had adopted a planned deficit budget of $3.3 million for that fiscal year but closed the year at a smaller deficit than planned.

Why it matters: board members and district staff said the audit verifies the district's fiscal statements are audited by an independent firm and provides context for conversations with state legislators and the public about funding pressures, particularly in special education.

Details from the presentation

'23,600,000 is the ending general fund balance; net change was $2,158,925,'2 the business office presenter said, noting that the auditors "verify district fiscal activity as it relates to state law, federal law and regulatory guidance." He added, "the auditors don't work for management, they work for you as the elected public officials." (presentation transcript)

The audit book shows special-education expenditures of $16,000,241 for 2023'24 and an excess of expenditures over revenues in fund 27 of $9,000,167; district staff said that shortfall was covered by transfers from the general fund. Staff also reported roughly $4.5 million in voucher-related, flow-through payments the district administers for private-school special-education vouchers; those amounts are collected and paid out through state reconciliation and are not direct district program revenues.

Auditor findings and corrective actions

Staff told the board the independent audit reduced the number of corrective-action items from three last year to two this year. One remaining finding is that the district does not employ a staff member with the professional certification (a CPA) to prepare the financial statements; the auditors continued to assist by preparing certain year-end journal entries to complete the accounting. The business office presenter said the district is working to develop internal capacity to reduce reliance on outside auditors for those entries.

Board questions and budget context

Board members asked for and received line-item clarifications. A board member identified as Mark asked for the exact net-change number; staff pointed to the audit book and provided the $2,158,925 figure. Another board member pressed on special-education funding; staff confirmed the roughly $9.1 million annual subsidy from Fund 10 and said state aid for special education ran about $4.5 million in 2023'24 (approximately 30% of reported special-education costs).

Staff also reminded the board that for the current fiscal year the board adopted a $5.5 million deficit budget; staff said they are managing resources to reduce the final deficit but cannot yet state a final projection for the current year.

What the audit does not say

The audit reflects 2023'24 activity only; staff repeatedly noted it does not report current-year results. Where the transcript or the audit book did not specify exact future-year numbers, the presentation used phrases such as "on track" or "we will continue to manage," and the article does not paraphrase those as commitments.

Ending

District staff said the audit will be posted to the district website and that board members and the public may inspect physical or electronic copies. The business office commended Kelly Claprick, the district accountant, for work that removed a prior corrective action related to state and federal-award preparation, and said the office will continue to pursue capacity-building to reduce auditor dependence.