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McDowell County Schools staff present FY24 unaudited financial statements; board records a motion
Summary
District finance staff reviewed FY24 unaudited financial statements, explained fund codes and why some funds show negative balances because of federal grant drawdowns, and a board member made a motion near the end; the transcript records a motion and second but not the motion text or a recorded vote.
Miss Khan, the presenter for McDowell County Schools, told the board the district's FY24 unaudited financial statements show total assets of about $143,000,000 and total liabilities of about $12,500,000, yielding a net position of roughly $131,400,000. She said the district's net position rose by about $13,400,000 compared with the prior year and reported an unrestricted net position of 26.2.
Miss Khan said the materials before the board cover all funds and must be submitted to the state department by September 30; she added that an independent audit is expected around December or January and that the audited statements should match the figures being submitted now. "They're just auditing what I'm submitting to the state department," she said.
During the presentation Miss Khan reviewed major fund codes: Fund 11 is the general current expense (the district's operating fund); Fund 61 holds special revenues from state and federal grants; Fund 65 aggregates school activity funds from the district's 10 schools (ticket sales, fundraisers, donations); Fund 71 holds COVID-related funds that will be closed as they are liquidated; Fund 41 is the permanent improvement fund for buildings and capital projects funded by transfers from the general fund; and Fund 51 is the capital projects fund, which includes transfers and reimbursements from the School Building Authority.
Miss Khan explained why some fund balances appear negative: federal grant-funded expenditures are paid first and later reimbursed with drawdowns, which the statements show as deferred revenue until reimbursement arrives. She told the board the general fund balance was about $25,700,000 and an unassigned reserve of about $10,800,000 — described as a district "nest egg" available at the board's discretion — and that the combined overall fund balance was about $37,900,000. She pointed to a bottom-line figure of $24,900,000 that incorporates the negative balances from the individual funds.
A board member asked several clarifying questions about Fund 65 and Fund 71, confirming that school activity receipts include ticket sales and fundraisers and that the COVID-related Fund 71 must be expended by September 30 with liquidation by November 15. Miss Khan confirmed those timelines and the drawdown process for federal reimbursements.
Near the end of the transcript a board member said, "I'd like to motion," followed by "A 2nd." The transcript does not record the wording of the motion, who seconded it, or any subsequent vote.
Next steps noted in the discussion: the unaudited statements are to be submitted to the state department by the stated deadline and an audit will follow; the transcript shows the board moved to take action but does not record the motion text or outcome.
