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Region 08 board accepts clean 2023–24 audit and moves $625,599 surplus into education reserve
Summary
The board accepted a clean audit from PKF O'Connor Davies, approved allocating $625,599 (the allowable 2% surplus) to an education reserve for capital use and approved transfers totaling $441,414 of current‑year purchases to reduce the 2025–26 proposed capital and operating budgets.
The Regional School District 08 Board of Education voted to accept its 2023–24 audit, which auditors issued with an unmodified (clean) opinion, and approved moving the allowable 2 percent fiscal‑year surplus — $625,599 — into a Reserve for Educational Expenditures to help fund planned capital work.
Katherine Patnaude, managing partner at PKF O'Connor Davies, presented the audit highlights and told the board the auditors issued an unmodified opinion on the financial statements. She cited a total governmental funds ending fund balance of $5,178,000 (an $857,000 increase from the prior year); General Fund year‑end balance of $3,088,000 (up $773,000); capital asset additions of roughly $1.1 million; and a reduction in long‑term debt of about $1,023,000. She said the district’s Grants and other governmental funds increased largely because of a $391,000 School Air Quality Improvement grant that was received this year.
Katherine also noted there were no audit findings this year and that the district was below the federal single‑audit threshold; the auditors did perform a state single‑audit test of the HVAC Indoor Air Quality program and reported no findings.
During discussion a board member noted the district’s unrestricted net position appeared negative; Patnaude explained that other‑post‑employment‑benefits (OPEB) liabilities commonly cause negative unrestricted net position in districts that do not maintain an OPEB trust and that the result is not unusual.
Following the presentation the board approved the audit by voice vote. After accepting the audit, the board approved administration’s recommendation to allocate the allowable 2 percent surplus ($625,599) into a Reserve for Educational Expenditures to be applied to projects including the track project under consideration.
At the same meeting the board also approved using current‑year funds to make one‑time purchases that will reduce next year’s requested increase. Administration proposed and the board approved two separate transfers by voice vote: $280,790 to reduce next year’s capital improvement requests and $160,624 to reduce next year’s operating budget for identified one‑time purchases (total one‑time purchases described: $443,414). Administration said those uses — combined with other staffing and enrollment adjustments — are expected to lower the district’s anticipated budget increase for 2025–26.
Board members were told administration continues to await final insurance premium figures from the insurance consortium and that projected tuition revenue from interdistrict tuition (including possible Columbia students) will be firmed up in March, which may further affect final budget numbers.
