Audit gives Red Wing Schools a clean opinion; board certifies $10.39 million levy

CliftonLarsonAllen auditor Craig Popenhagen told the Red Wing Public School District board on Dec. 16 that the firm issued an unmodified (clean) opinion on the district’s fiscal 2024 financial statements and found no material weaknesses in internal control.

Popenhagen said the audit identified one federal compliance finding — a missing vendor debarment check in the child nutrition sample — and two minor state-compliance items: a small number of outstanding vendor checks requiring reporting and one vendor invoice that missed the district’s 35-day payment target. “Those are small items and easy to fix,” Popenhagen said.

The audit showed the district’s general fund revenues increased in 2024 and that roughly 78 cents of every general-fund dollar was spent on instruction and student support. The audit report also noted a roughly $1 million increase in the district’s unassigned general fund balance. District staff told the board that the increase resulted primarily from three factors: positions that were budgeted but remained unfilled, lower-than-expected district insurance costs tied to fewer employees participating in benefits, and purchase-service and tuition costs that came in below budget estimates.

District staff and the auditor highlighted an enrollment decline trend that affects long-term revenue planning; the audit noted the heavy reliance on state aid, which accounted for about 70% of general-fund revenue in fiscal 2024.

At the same meeting the board certified the district’s final 2024 (payable 2025) tax levy at $10,387,666.52. The board also voted to under-levy the other post-employment benefits (OPEB) line by $196,530 after the Minnesota Department of Education agreed the district’s funded irrevocable trust made the levy unnecessary. A board member moved the levy certification and the motion passed on a voice vote; the board chair announced, “Aye,” and the motion carried.

Board and finance leaders said the certified levy is about $196,000 lower than the maximum levy the board approved in the preliminary September certification and that county property-tax statements mailed in November may therefore overstate the district levy until county records are updated. The board directed the director of finance and operations to forward the certification to the county auditor.

The board scheduled a special meeting to approve the final audit documents the following Monday and district leaders said they will use the audited numbers to inform the FY2025 budget revision.