Audit shows strong reserves; state retirement revenue cut will squeeze next-year budget

External auditors told the Harper Creek Board of Education that the district closed the fiscal year with approximately $6.9 million in the general fund, about a 16.5 percent fund balance.

"You ended the year in your general fund with about $6,900,000, which is about a 16 and a half percent fund balance," Christine Kratzer of Willis and Jersak said during the audit presentation. Kratzer also told the board the districts federal single audit of the Grow Your Own program returned no findings.

Finance director Missus Obermeyer walked the board through how recent state budget actions affect district budgeting. She said the state per-pupil foundation was set at $10,050, which provided about $137,000 more than estimated, and the districts spring pupil count is about 30 students higher (to roughly 2,740), providing an estimated $300,000 in additional revenue.

However, Obermeyer said the state also cut retirement revenue to the district by roughly $1.2 million. "If you just take everything in concert...we finished last year a little better than we thought," she said, but the net impact leaves the district preparing a conservative revised budget. She estimated an offset of roughly $600,000 to the retirement reduction and noted audit adjustments added about $631,000 to the bottom line.

Obermeyer said the district would likely present a revised budget later in the fall or at the December meeting, with the business office monitoring impacts and returning with more detailed numbers for board review.

Next steps: the board approved the audit and directed business staff to file the audit and continue to monitor the retirement-revenue changes and pupil-count effects on the revised budget.