Paola USD 368 board accepts audit and bond disclosures; finance staff report stable trends

Paola USD 368’s Board of Education reviewed and approved the district’s annual audit and bond compliance disclosures for the 2023–24 fiscal year after a staff summary of key financial trends and footnote items.

District finance staff presented a high‑level summary of the 63‑page audit. The presentation noted a $763,000 year‑over‑year increase in the general fund and a $258,000 increase in the Local Option Budget (LOB). Staff emphasized timing differences in capital outlay expenditures that created a roughly $1.2 million variance tied to project payment timing.

On pension liabilities, the audit disclosed the district’s share of unfunded net pension liabilities (CAPERS/KPERS) at $44,600,000, down about $1.8 million from the previous year, which staff attributed in part to state contributions. Outstanding long‑term bonds were reported at approximately $6.3 million, and staff said those bonds are scheduled to be paid off next July. The finance summary also highlighted a district tax collection rate of 98.8% for Lyon County and noted that total expenditures increased about 1.54% year‑over‑year (net increase 1.19%).

The board moved to approve the audit and bond disclosures for filing with the state and market disclosures to bond investors. Staff said the full audit and disclosures are available in the board packet and on the Kansas Department of Administration website.

During questioning, board members sought clarifications about long‑term debt capacity, investment collateralization and health insurance fund history; staff said deposits are insured or collateralized as required and that recent changes to the health plan have returned that fund toward a positive trend after several years of deficits.

The motion to accept the audit and bond compliance disclosures passed by raised‑hand vote.