Chief business officer: 2023–24 unaudited actuals show positive ending balance but district misses 60% CEA threshold

Chief Business Officer Jeremy McReynolds presented the district’s 2023–24 unaudited actuals and recommended the board approve the report to accompany the county submission.

McReynolds said the district finished the year within budget, reporting an "unrestricted ending fund balance [increase] of $555,000" and a total ending fund balance increase of $756,000, which includes restricted funds and a $157,000 fair-market valuation adjustment tied to pooled county treasury investments. He cautioned that valuation gains are not ongoing, liquid revenue.

The presentation also noted the district did not meet the current-expense-allowable (CEA) 60% requirement; staff reported the district was at roughly 48% and will seek an exemption from the county office of education after the audit is complete. McReynolds attributed the shortfall to declining enrollment, higher contractor costs and special-education-related expenses for paraprofessionals and related services.

Trustees pressed for context about reserves and monthly cash flow. McReynolds said the state-required minimum reserve (3%) equates to about $751,000, and that the district’s overall assigned reserves include designated amounts for strategic priorities such as technology replacement, curriculum adoption and special-education contributions. He called the current reserve posture "resilient" but warned that next year could include planned deficit spending and that staff will continue cost controls.

After discussion, the board approved the 2023–24 unaudited actuals.