Business manager: audit underway, fund balance above $14.5M; board approves budget changes and fund designations

Jeff Mahoney, the district business manager, presented the financial update and led three action items at the McFarland School District board meeting.

Mahoney said the 2024–25 audit is in progress and that formal audit presentation usually occurs in November or December. He reviewed components underpinning the district fund balance and revenue assumptions for 2025–26, including virtual‑school oversight fees, interest earnings and grant timing. "We're just over 14 and a half million," Mahoney said referring to the district fund balance.

Mahoney summarized several revenue and expense trends: the district’s virtual program oversight fee (described in the meeting as the oversight fee from the district’s virtual partnership) exceeded the budgeted estimate for 2024–25; Mahoney said the district budgeted about $1,400,000 for 2024–25 but received roughly $1,963,000 and proposed using a four‑year average to budget $1,700,000 for planning. He also said interest earnings were roughly $450,000 above budget in 2024–25 and that the district had approximately $100,000 of remaining ESSER funds across years that auditors and staff are reconciling.

Mahoney described cost‑saving work with an energy vendor (Data Wrangler) to reduce peak demand charges and noted some capital and facilities projects: Gym B roofing nearing completion and continuing roofing projects. He said the district has carried a recurring capital allocation of $249,000 and is exploring expanded community programming with the McFarland Community Ice Arena.

The board took three formal actions during Mahoney’s update. First, it approved the consent/consent‑agenda items earlier in the meeting (administrative minutes and personnel items). Second, the board approved the attached 2024 budget changes for the 2024–25 school year. Third, the board approved the recommended designation of certain 2024–25 unused funds to restricted fund balance for the 2025–26 school year. The motion texts were presented on the record; motions were moved and seconded and each passed.

After the votes on budget changes and fund balance designations, the board moved into closed session under Wisconsin state statute 19.85(1)(c) and 19.85(1)(f) to consider personnel matters. A roll call vote was taken to enter closed session: Chapman (yes), K. Huey (yes), Fisher (not attending/absent), Fessler (yes). The board announced it would adjourn from closed session when finished.

Ending: The board approved the budget changes and fund designations and directed staff to continue audit work and to bring final audit results and levy details as the district approaches the annual meeting and October aid/valuation updates.