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Auditor issues clean opinion as Kenyon‑Wanamingo faces small deficit and borrowing for cash flow
Summary
External auditors issued an unmodified (clean) opinion on the district’s 6/30/2024 financial statements, while the district reported a roughly $1.86 million unassigned general fund deficit and $125,000 in interest costs related to short‑term borrowing for operations.
Jason Boyd of Smith Schaeffer presented the district’s audit for the year ending June 30, 2024, and said the firm issued an unmodified opinion on the financial statements, meaning they are "fairly stated in accordance with generally accepted accounting principles." He told the board the audit found no legal compliance exceptions and no significant deficiencies in internal control.
Boyd walked the board through key figures: average daily membership (ADM) of 668 (up about eight from the prior year), total state aids of about $8.9 million, and total district revenues of roughly $13.5 million. On expenditures, regular instruction was about $4.6 million and total reported spending across funds left the district with an unassigned general fund balance of roughly negative $1.86 million. Boyd and district staff said the district has used short‑term borrowing during the year to cover operations, producing about $125,000 in interest expense in 2024 that did not directly benefit instructional programs.
Board members and finance staff pressed on drivers of higher costs in the district, with transportation and special education repeatedly cited. A board member asked why pupil support costs per ADM are high; the presenter and district finance staff attributed much of the disparity to the district’s wide geography, shuttle services and higher special‑education transportation needs. One board member summarized the auditor’s message as: "the free fall has stopped," noting prior multi‑year declines in ADM have slowed and some stabilizing actions have been taken.
Following the presentation and questions, a motion to approve the audit as presented was made and seconded; the board adopted the audit by voice vote, recorded as 7 to 0. The board asked staff and its consultants to return with a revised budget and a five‑year projection model to test scenarios such as reducing shuttle services or changing program mixes.
