The Elkhorn Area School District board voted Dec. 15 to accept the 2024–25 financial audit and management letter after a presentation by the business office. The audit identified several accounting and compliance items the district plans to correct or monitor.

The business manager/auditor said a change in accounting principles produced an increase in reported (paper) liabilities for accrued sick time, which the auditor described as ‘‘really, like, a $3,000,000 perceived liability,’’ and noted that the district does not actually pay out all accumulated sick time. The auditor explained a separate accounting reclassification required the district to recognize a previously recorded arrangement with Gateway Technical College as a long‑term lease; on paper this produced a sizable long‑term lease liability that the business manager said would normalize in next year’s reporting.

The audit also documented a decrease in state aid the prior year (the business office cited roughly $1.5 million) and several significant deficiencies that the district plans to address: year‑end journal entries, prior budgeting for employee benefit obligations (OPEB), capitalization thresholds for assets, procurement checks for federal debarment and suspension, and cleanup of Medicaid grant claim records. The business manager said staff have created procedures (debarment spreadsheets, HR‑grant reconciliations) and will continue remediation work.

The audit presentation included notice of a previously identified double claim to the Department of Health Services; the district expects to issue a repayment check of approximately $90,000. The board moved to accept the audit and management letter and the motion passed by voice vote. In the same meeting the board approved general and other fund bills totaling $769,851.81, accepted a $3,000 gift from the Community Foundation of Central Wisconsin for the art program, approved personnel recommendations, and adopted the 2026–27 budget development calendar (budget workshop set for April 15, 2026).

Before adjourning, the board moved into closed session under Wisconsin Stat. §19.85(1)(d) to review written evaluations of school safety drills; a roll‑call vote was recorded and the board stated it would not reconvene in open session.