Auditors give Faribault Public Schools an unmodified opinion; district posts $2.9M fund-balance increase

Faribault Public Schools’ independent auditors told the school board Jan. 27 that the district’s financial statements for the year ended June 30, 2024, received an unmodified opinion and that the district’s general fund balance rose by about $2.9 million.

The audit presentation, delivered by Caroline Stutzman of Bergen KDV, emphasized that the unmodified opinion is the highest level of assurance an auditor issues and that the auditors found the financial statements “fairly stated in all material respects as of June 30, 2024.” The board voted to approve the audit after the presentation; the motion carried 6–1.

Why this matters: the independent audit confirms the district’s statements for 2023–24 and documents where internal controls and reporting require attention. The findings inform the board’s financial oversight and the district’s budget and policy planning.

The audit highlights and context

Stutzman told the board the audit included consideration of internal control and testing required by the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly called the single-audit or Uniform Guidance). Two federal programs were selected for testing this year: the Child Nutrition Cluster and the Education Stabilization Fund. Stutzman said the auditors “did not have any findings related to any of that test work either.”

The auditors noted several matters for management. Stutzman described a mid-level internal-control finding that she called “very, very common,” and she identified a small number of state-compliance items tied to circumstances in the year. Barbie Raessler, the district’s director of finance and operations, told the board the issues were limited and not expected to recur.

Key financial figures presented

- Ending total fund balance (all components): about $10,900,000. - Increase in unassigned (available) fund balance for the year: just under $2,400,000. - General fund revenues increased by about 8% in 2024; general fund expenditures were about 3.2% under the final amended budget. - Resident ADM (average daily membership) fell by about 57 students; total pupil units served fell by roughly 200 for the year after applying weighting and open-enrollment effects. - General-education formula allowance rose by about 4% in the year noted in the presentation.

Presentation of program-level funds

The auditors reported that the food-service fund activity increased in 2024, reflecting state changes to free meals and federal after-school program revenue. The food-service fund ended the year with a fund balance of about $2,100,000; the community service fund ended with about $1,100,000.

Special education and comparisons

Board member Linda Boudreaux highlighted that special education accounted for about 23% of the district’s general fund expenditures this year versus a statewide average of about 19%, a difference the auditors’ slides explicitly showed. The auditors also showed that district and school administration remained below state averages.

Board discussion and questions

Board members asked about the sampling nature of audits and the scope of internal-control review. Stutzman explained auditors provide “reasonable, not absolute” assurance and that their work includes sampling and recalculation of major items; she said that approach is standard practice. Raessler noted three findings the district expects to address and said the most likely recurring finding would be a segregation-of-duties comment, a common issue for many Minnesota districts.

Board action

Board member Chad Wolf moved to approve the audit; Dr. Robichaud seconded. The board approved the audit 6–1.

Ending

Board members and district staff thanked Bergen KDV and the business office for completing the audit and for the presentation. Raessler and Stutzman both acknowledged staff effort in closing the year and preparing materials for the auditors.