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Audit closes with no findings; board approves final 2024-25 budget revisions and fund balance designation
Summary
The district received an unmodified audit with no findings and the board approved final 2024-25 budget revisions, accepted a nearly $150,000 increase to final fund balance and moved $1.5 million into revenue stabilization.
The Spartan Area School District reported a clean year-end audit and the board approved several budget measures, including final budget revisions for 2024-25 and designation of revenue stabilization fund balance.
Miss Hauser, a staff member, told the board the annual audit by Hawkins Ash CPAs had "no findings, no journal entries, so everything was as it should be." She thanked auditors and finance staff for the work.
Board action: On a roll-call vote the board approved the final 2024-25 budget revisions (motion carried 5-0, two members absent). Staff reported small adjustments in several funds: Funds 10 and 27 showed revenue increases of about $1,000 and expense increases of roughly $20,000; the final change in combined fund balance for 2024-25 was an increase "just shy of $150,000," according to staff. The board approved the budget revisions as presented.
Fund-balance designation: Staff explained there was an existing revenue stabilization set-aside and recommended rounding that balance. The district reported revenue stabilization had been set aside last year at about $1,000,004.96 and staff recommended increasing that to an even $1,500,000. Staff explained that $150,000 placed into Fund 46 (state-aid tiered formula) would be reimbursed at about 43% the following year (approximately $60,000), which would reduce the local levy by an amount staff described as "a couple pennies." After discussion the board approved moving $1,500,000 of Fund 10 into revenue stabilization fund balance (motion carried 5-0, two absent).
Decision vs. discussion: The audit report and budget revisions were formal actions approved by the board. The analysis of placing $150,000 into Fund 46 versus fund balance was described by staff; the board approved the larger revenue stabilization placement rather than the Fund 46 transfer.
Context: Staff noted the district had earlier projected a $1.5 million shortfall for the year but actual results were substantially better due to unexpected revenue and lower expenses, producing the modest increase in ending fund balance.
