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Board accepts FY24 audited financial report; CFO presents midyear review and five-year projection showing narrowing fund balance
Summary
The District 128 board unanimously accepted the FY24 audited financial report Feb. 24; the district’s five-year projection shows the fund-balance percentage could drop below the board’s 25% guideline by 2027 under current assumptions.
The Community High School District 128 Board of Education approved the district’s fiscal year 2024 annual comprehensive audited financial report on Feb. 24 and heard a midyear financial review and five-year projection from Chief Financial Officer Dan Stanley.
CFO Dan Stanley told the board the FY24 audit showed no surprising findings in the auditor’s summary and recommended acceptance. Board member Lisa Hessel moved to approve the FY24 annual comprehensive financial report; Sonal Kulkarni seconded and the roll call was unanimous.
Stanley then walked the board through a midyear review and a five-year projection that use current revenue and expenditure assumptions. He said the district’s revenues are heavily reliant on property taxes (about 89% of the revenue picture) and noted continuing volatility in some local state-funded sources (CPBR/T) and in interest income tied to market rates. On the expenditure side, he emphasized personnel costs are the largest driver (about 71% of the budget) and that retirements, lane changes and medical-insurance premiums are material ongoing pressures.
Stanley explained that under a status-quo scenario — holding FTEs flat and rolling forward current assumptions for CPI-linked raises and insurance trends — the district’s projected fund balance percentage drifts downward and would fall below the board’s 25% fund-balance guideline in fiscal year 2027 if no changes are made. He said the district’s midyear operating trend was modestly stronger than budgeted this year but cautioned long-term trends remain a concern. "The control you have is on your expenditure side," Stanley told the board, summarizing that revenue sources are largely set while spending choices drive the long-term outlook.
The CFO recommended continuing to be cautious about adding recurring operating costs, reviewing staffing levels and pursuing systemic changes to slow expenditure growth. He said finalized insurance renewals and pending contract negotiations (teacher contract negotiations were in progress at the time of the presentation) will materially affect the final projections.
No board action was required beyond acceptance of the audit report; Stanley said the administration will return with the budget and recommended actions as required in the next cycle.
