The Bemidji School Board on Monday approved the district's fiscal-year 2025 annual audit, certified the 2025 levy limit, ratified a refunding of school building bonds and approved an LED retrofit bid for Bemidji Middle School.

Audit and findings: Amanda Skansen, signing shareholder for Brady Martins & Associates, told the board auditors issued an unmodified (clean) opinion on the financial statements. Auditors flagged two notable matters: a repeated internal-control issue involving journal entries and a single-audit finding over federal program eligibility for the child nutrition cluster. The auditors said two students were listed incorrectly in district software and one student's supporting documentation could not be located; the finding was characterized as a significant deficiency. The district has created corrective-action plans and added procedures to mitigate future eligibility issues. "We issued a clean opinion," Skansen said, noting the eligibility issue was related to sampling and documentation.

Fund balance and budget context: Finance staff and the superintendent highlighted the district’s structural deficit now visible without COVID-era federal support. The district’s unassigned/assigned/committed fund balance was reported at $9,954,275, or 15.1% of operating expenses (above the board policy minimum of 10%), down from 19.9% the prior year. Officials said the operating funds showed a $2.6 million operating deficit for the year and that COVID funds had provided a runway in prior years to spread adjustments over time.

Levy certification: Ashley (district finance presenter) recommended approval of the final levy limitation certification at $11,405,977. The board moved, seconded and approved the levy certification by voice vote.

Bond refunding: The board ratified a resolution to refund outstanding general obligation school building bonds (series 2026A) totaling $21,825,000. Steve Pumper of PMA said the district received seven bids; the low bid from Jefferies LLC at a 2.7922% interest rate produced estimated net present-value savings of $1,383,909 over the remaining roughly 10-year period. Pumper said the refunding closes Jan. 6 and the 2015 issue will be called April 1. The board approved the ratifying resolution by roll-call vote with members Haugen, Akas, Frenzel, Manneke, Long Volkner, Wall and Wahl voting yes.

Capital project: The board approved the low, timely bid for the Bemidji Middle School LED retrofit from Bessler Electric in the amount of $817,700. Ashley said the project (scheduled for June–August 2026) will upgrade lighting and controls (timers and occupancy sensors) and is funded from restricted operating capital rather than the general fund. A second contractor’s bid arrived after the deadline and was not considered.

Other actions: The board unanimously accepted two donations from the American Legion (a $500 contribution to Bemidji High School junior ROTC and a storage shed for the high-school football program). The board directed administration to begin its annual process for evaluating potential reductions in programs and positions (the process begins in January and concludes by statute on June 30). The board also moved to rescind SBR 300-40-1 (depositories of funds) as duplicative of the district’s investment policy.

Votes at a glance: the audit approval, levy certification, bond-refunding ratification, LED retrofit contract award, donation acceptance, motion to start reduction recommendations and the policy rescind all passed (voice votes or recorded roll-call where noted).