St. Martin Parish School Board members heard a presentation on a draft resolution to call a May 3 election asking voters to authorize up to $30,000,000 in additional general obligation bonds and received the district's annual audit, which carried an unmodified opinion but identified compliance findings tied to federal grants and to budgeting.

The bond proposal, presented by Grant Schluter, bond counsel, and Steven Lofsacker, the district's financial adviser, would seek voter approval for up to $30 million in general‑obligation bonds “with no projected increase above the current rate of 21.5 mills,” Schluter said. Board members discussed preparing an itemized capital‑project list for voters before the election, as the draft proposition contemplates approving specific projects prior to the vote.

The audit presentation, delivered by the district's external auditor, reported an unmodified ("clean") audit opinion on the district's financial statements but disclosed several findings: a budget‑to‑actual revenue variance that triggered a Louisiana Budget Act finding, a federal‑funds prepayment issue on one tested transaction, and an ongoing restitution collection tied to a prior misappropriation case dating to 2016.

Why it matters: The bond proposition would fund capital needs across the parish if voters approve it; the audit findings identify areas the board and staff must address to maintain state and federal compliance and to continue restoring the district's financial position.

Board presentation on bond proposition

Grant Schluter summarized the draft resolution and said the proposition mirrors prior bond measures the board has placed before voters. "The resolution . . . would authorize the calling of election for May 3rd to authorize up to 30,000,000 of additional general obligation bonds with no projected increase above the current rate of 21.5 mills," Schluter said. He told the board it is not a legal requirement to publish a detailed project list but said boards typically do so as a covenant with voters; the draft resolution before the board would require the board to approve a capital improvement plan and project list prior to the election.

Board members pressed for transparency and for a parishwide process to gather project requests. One board member said security upgrades across schools should be a top priority; others mentioned equipment and renovations for career/technical programs as potential capital projects. Staff said they plan to consult principals and produce a prioritized list for the board to review before any election materials are finalized.

Audit results and findings

The district's external auditor told the board the audit "is what's known as a clean or unmodified audit opinion," indicating the financial statements present fairly in all material respects. The auditor highlighted three areas of concern required to be reported in the audit:

- Louisiana Budget Act finding: The auditor said the way some special revenue accounts were grouped for budget versus audit purposes produced a 5.4% deviation in projected revenues for certain special revenue funds, which triggers a reportable finding under the state budget law. The auditor said staff already know what to change for the next year.

- Federal‑program prepayment finding: Testing identified one transaction in which a check was issued for services that included payments for services extending through September 2024; federal rules and the district's grant guidance prohibit prepaying for services that have not yet been performed. The auditor explained this produced duplicate findings because the same issue affects state and federal compliance tests.

- Ongoing restitution recovery: The audit re‑reported a long‑running matter originating in June 2016 involving misappropriated funds. The district's attorney pursued garnishments and other collections; the auditor reported payments began in September 2024 and that management continues to monitor recovery efforts.

Staff response and next steps

Casey, the district finance staff member, said the federal‑grant prepayment issue arose in part from billing practices by a vendor the district hired to write and evaluate a new MSAP (magnet) grant. "I have since contacted them . . . and we are going to reverse the way that it has been done and change it going forward," Casey told the board, describing a corrective action that staff will implement for invoicing and billing procedures.

The auditor also reviewed fiscal‑position metrics: the district's net position increased year‑over‑year by about $1,000,186, and the general fund's total fund balance moved from approximately $33.1 million to $31.2 million, which the auditor said represents roughly 4.8 months of operating expenditures.

Formal actions at the meeting

- The board approved the consent agenda (motion by Miss Gauthier; second by Mr. Martin).
- The board accepted the finance committee recommendations (motion by Miss Gauthier; second by Mr. Martin).
- The board received the annual audit (motion passed; mover/second not specified in the record).

No formal vote on calling the May 3 bond election appears in the provided transcript excerpt. Schluter and the financial adviser recommended the board prepare and later approve a specific capital‑project list prior to any election, which members directed staff to begin assembling.

What comes next

Board members directed staff to reach out to principals and prepare a prioritized, itemized capital improvement list that the board will review before finalizing any election proposition or ballot language. Staff also said it will implement corrective billing practices for the MSAP grant and continue garnishment and collection efforts tied to the restitution matter noted in the audit. The board has scheduled follow‑up work through its finance committee to refine project priorities and track audit remediation steps.