Merrill Area School District board accepts clean audit, approves staffing, bus contract and budget contingency

MERRILL, Wis. ' The Merrill Area School District Board of Education on Feb. 19 accepted the district's 2023-24 financial audit, approved Head Start reports and several personnel and program changes, authorized a contract with the district's selected transportation provider, and approved a contingency transfer from fund balance for 2025-26 budget planning.

The board accepted an audit for the fiscal year ended June 30, 2024, after a presentation from lead auditor John Troffman of CliftonLarsonAllen. Troffman told the board the firm issued "an unmodified opinion, a clean opinion" on the district's financial statements and described the district's general-fund reserve at the end of the year as roughly $8.8 million, or about 21% of expenditures.

The board also approved Head Start documents and program changes, added an Educators Rising co-op advisor position, approved two social-emotional learning (SEL) coach positions, authorized purchase of a CNC plasma cutter for the Fab Lab using grant funds, and voted to put a limited contingency use of fund balance on the table while finalizing the 2025-26 budget.

Why it matters: The audit acceptance confirms the external auditor's clean opinion for 2023-24 and provides board members and the public a financial baseline as administrators finalize a budget amid enrollment shifts and state-level funding uncertainty. The personnel and program approvals advance district efforts in early childhood services, career pathways and social-emotional supports, while the transportation contract and equipment purchases affect day-to-day operations and community partnerships.

Key facts and supporting details

- Audit: John Troffman said the audit produced an unmodified (clean) opinion and noted the district ended FY24 with a general-fund balance of about $8,806,000 (unassigned portion about $8,791,000), representing about 21% of expenditures. Troffman also reviewed the district's single-audit (federal grants) schedules and noted one recurring finding related to preparation of the annual financial report.

- Head Start: The board approved the 2024-25 Head Start Community Assessment and the 2025 Head Start Self-Assessment following motions from members of the board; both motions carried on voice votes.

- Programs and positions: The board authorized creating and hiring an Educators Rising club advisor and approved two SEL coach positions (motions carried unanimously by voice). Administrators said the Educators Rising advisor is intended to help recruit high-school students into education careers; the SEL coach positions are presented as part of a district plan to support social-emotional learning districtwide.

- Fab Lab equipment: The board approved purchase of a CNC plasma cutter for the district Fab Lab to be paid for with Career and Technical (CT) incentive grants and Perkins grant funds, per the presentation.

- Transportation contract: The board approved a contract with the vendor selected in the district's January bid process for student transportation. District staff said the contract has been reviewed by legal counsel; administrators noted routing and transition details will be finalized with the vendor in the coming weeks.

- 2025-26 budget planning: The board approved a motion authorizing the possible use of up to $300,000 of fund balance, if needed, to address potential shortfalls in the 2025-26 budget while administrators continue planning. Board discussion noted the proposal included a mix of staffing and departmental reductions (3 to 4 FTEs were referenced as an estimate in committee discussion), and that the board favored restoring salary increases up to CPI for staff if feasible once state funding clarity is obtained.

- Nursing services: The board voted to discontinue the district's contract with the Lincoln County Health Department for nursing services beginning in 2025-26, and to pursue hiring one full-time district nurse and two 0.625 FTE health aides; administrators said the financial effect is expected to be budget-neutral to the district's existing arrangements.

- Donations and consent agenda: The board accepted two donations to the Merrill School Forest (a 2024 Ski-Doo snowmobile and accessories, and three animal mounts) and approved the consent agenda (minutes, claims and personnel items). All votes were taken by voice and recorded as carrying.

Votes at a glance (motions recorded during the Feb. 19 meeting)

- Accept 2023-24 financial audit (motion carried on voice vote). Mover: Ron Liberty. Second: Mike Hornisher. Outcome: approved. Notes: Auditor reported an unmodified (clean) opinion.

- Approve Head Start 2024-25 Community Assessment (motion carried on voice vote). Mover: Nubs Ashlag. Second: Amber D'Rizzo. Outcome: approved.

- Approve 2025 Head Start Self-Assessment (motion carried on voice vote). Mover: Ron Liberty. Second: Nubs Ashlag. Outcome: approved.

- Add Educators Rising co-op advisor and authorize hiring (motion carried on voice vote). Mover: Jacqueline Renmar. Second: Ron Liberty. Outcome: approved. Notes: Presentation from Heather Solberg; plan to hire in spring to launch club in fall.

- Approve SEL coach positions (motion carried unanimously on voice vote). Mover: Jacqueline Renmar. Second: Amber D'Rizzo. Outcome: approved.

- Approve purchase of CNC plasma cutter for the Fab Lab using grant funds (motion carried on voice vote). Mover: Ron Liberty. Second: Mike Hornisher. Outcome: approved. Notes: Funded by CT incentive grants and Perkins funds.

- Approve contract with selected transportation provider (motion carried on voice vote). Mover: Nubs Ashlag. Second: Mike Hornisher. Outcome: approved. Notes: Contract follows the board's January bid approval; staff said legal counsel reviewed the contract and routing/operations details will follow.

- Approve possible transfer/use of up to $300,000 of fund balance if needed for 2025-26 budget planning (motion carried on voice vote). Mover: Ron Liberty. Second: Jacqueline Renmar. Outcome: approved. Notes: Board discussion emphasized attrition-driven staffing reductions where possible; estimated staffing reductions referenced in committee materials.

- Discontinue nursing contract with Lincoln County Health Department and pursue hiring a district nurse and health aides (motion carried on voice vote). Mover: Ron Liberty. Second: Amber D'Rizzo. Outcome: approved. Notes: Administrators said the plan is budget-neutral to current costs.

- Accept donation of a 2024 Ski-Doo and accessories to Merrill School Forest (motion carried on voice vote). Mover: Mike Hornisher. Second: Amber D'Rizzo. Outcome: approved.

- Accept donation of three animal mounts to Merrill School Forest (motion carried on voice vote). Mover: Mike Hornisher. Second: Nubs Ashlag. Outcome: approved.

- Approve consent agenda (minutes, claims totaling $4,104,236.71, promotions, and personnel report contingent on contract finalization) (motion carried on voice vote). Mover: Ron Liberty. Second: Mike Hornisher. Outcome: approved.

What the board said and what comes next

John Troffman, the district's external auditor, cautioned that new GASB standards coming into effect will require additional reporting of compensated absences and similar liabilities beginning with the next audit cycle; the board heard this as part of the audit discussion. Administrators said they will continue budget work through March and May and will return to the board with specific implementation plans for staffing, routing and health-service hiring as required.

The board adjourned the meeting at 6:41 p.m.