Board receives audited financial statements for District 1 and District 140; general fund shows positive balance but fund-balance ratio below 10% target

The school board on April 28 received the audited financial statements for Grand Forks School District No. 1 and the federally funded District 140 for the year ending June 30, 2024. Auditors issued unmodified (clean) opinions for both districts.

Brandon Bombach, finance director, presented the general fund financial statement for the first nine months of the 2024–25 fiscal year (through March 31). He reported revenues of roughly $102 million and expenditures near $83 million at that point in the year, leaving a positive year-to-date variance. Bombach described timing differences in local property-tax receipts tied to the primary resident tax credit and explained encumbrance deadlines as the district approaches year-end.

Brian (auditor) reviewed the audited financial statements and management’s discussion and analysis, reporting an overall unmodified opinion and noting a June 30 general-fund unassigned fund balance of $10,285,051, which auditors observed is about 7.8% of general fund expenditures at year-end. Auditors recommended a 10% or higher unassigned fund-balance target for greater financial flexibility. The building fund reflected significant capital expenditures during the year (about $35 million). The auditors also reported two findings: (1) auditor preparation of financial statements (a repeat finding common to many districts that engage auditors to compile the formal statements) and (2) missing support for some Title 1 private/nonpublic school documentation; district staff reported corrective steps already in progress.

District 140’s statements also received a clean opinion; its general fund ended with a positive balance and the capital projects fund showed a small deficit. Auditors noted timing and budgetary variances related to federal impact-aid receipts.

The finance committee asked follow-up questions about local revenue timing and the Title 1 documentation finding. Administration and the finance committee recommended receipt of the audited statements; the board voted to receive the reports (motion moved by Paul Palmasino and passed by recorded vote).