District finance review: school reports deficit now but large June county payment and audit timeline expected to improve position

During the June 23 working session, district staff presented a detailed financial review through May 31, 2025, showing mixed revenue receipt rates and a year‑to‑date spending variance in deficit. State revenue was reported at roughly 87% received, federal at 71% and local revenues at 56%. The presenter said total expenditures outpaced revenues year to date, producing a deficit of roughly $459,444, though a county payment of approximately $1,559,722.78 is expected to post in June and will reflect in next month’s financials.

The presenter described federal, state and local revenue timing as a primary driver of monthly variance: “In the month of June we have received $1,559,722.78 which will be received in and will show up on our financials next month,” they said. Staff noted compensatory revenue calculations were adjusted after a state formula update; compensatory revenue for 2025 is now estimated at $337,081, roughly $36,000 more than an earlier estimate.

The board was informed that the district signed an audit engagement letter with Brady Marks; the audit is planned for Sept. 29–Oct. 2. Staff said the audit process typically takes about two months and final Uniform Annual Report (UAR) filings to the state are due Nov. 30, with final statements completed by end of January.

Board members asked clarifying questions about capital equipment spending (budgeted low at 15% expended) and enrollment assumptions that underpin revenue projections. Staff emphasized conservative budgeting for FY26 — including a $44,100 increase in planned capital expenditures — and noted the administration’s goal to strengthen the unassigned fund balance.

The board approved the FY26 budget in the regular session, after which the administration will publish the adopted budget and proceed with required state submissions and the audit schedule.