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RSU 22 board reviews audit, learns fund balance exceeds statutory 9% cap
Summary
District staff reported receipt of the FY25 audit, described one minor single-audit finding in the school nutrition program, and said the district's unassigned fund balance stands at roughly $6.9 million (about 14.9% of last year's budget), $2.42 million above the 9% statutory limit and requiring a three-year plan to spend down.
RSU 22 officials reported receipt of the district's FY25 audit and walked the board through fund-balance figures that exceed the state's 9% cap.
At the board meeting, a district administrator summarized the auditor's feedback and next steps. "Overall the audit was great," the administrator said, noting the auditor praised district staff and the new finance director. The audit packet and related documents will be posted to the district's budget page later this week.
The district also disclosed a single-audit issue involving school nutrition. According to the report, breakfast and lunch counts were transposed in reporting, which led to an overpayment that the district has repaid. "A plan has been put in place for more oversight with that to avoid that deficiency in the past," the administrator said.
Board members spent most of the conversation on fund-balance totals. The audit lists a fund balance of $9,452,981; after subtracting a $1 million carryforward and several reserves (capital, technology, athletic facility and admin building reserves), officials reported an estimated unallocated balance of about $6,900,981. The presenter said that amount represents roughly 14.9% of the previous year's budget and therefore exceeds the state statute's 9% limit by about $2,420,428.
The board was told the statutory framework gives districts up to three years to reduce reserves above the cap. The administrator framed the surplus as the result of several years in which revenue exceeded projections and expenditures came in below budget, producing multi-million-dollar additions to the fund balance.
Board members asked how state subsidy (ED279) and enrollment trends will affect the coming budget; the district said it expects slightly more state revenue but a larger local responsibility because valuations and enrollment declines change the distribution of costs. Budget hearings are scheduled to begin in the coming weeks.
The board did not take formal action on spending at the meeting; members asked staff to develop a plan to spend down reserves within the allowable timeframe. The district will post the full audit and supporting schedules to the RSU 22 website and continue discussion during the budget process.
