Audit: Kenyon-Wanamingo district receives clean opinion but remains in deficit position

Jason Boyd of Smith Schaeffer presented the Kenyon-Wanamingo School District’s audit for the fiscal year ended June 30, 2024, and told the board the firm issued an unmodified, or “clean,” opinion on the district’s financial statements. "It's an unmodified opinion," Boyd said as he summarized the audit findings.

Boyd reviewed the district’s key fiscal metrics. The district reported an average daily membership of about 668 students (up roughly eight from the prior year). Revenue highlights included roughly $2.8 million in property tax collections, about $8.9 million in state aid, approximately $560,000 in federal funds and nearly $1.2 million in other revenue, yielding total reported revenues near $13.5 million. On the expenditure side, regular instruction was stated at about $4.6 million and special education expenditures at about $1.0 million. The auditors noted interest costs of roughly $125,000 tied to borrowing for cash flow, and that the district ran a small overall deficit for the year after a transfer to clear a negative balance in debt service.

Board members and staff emphasized that while the audit shows progress, the district remains under fiscal pressure. One board member described the recent work as stopping a “free fall” in reserves: "The free fall has stopped," a presenter said during discussion of multi-year trends. Discussion focused on high transportation and special-education costs driven by geography and individual student needs, and on the need to continue tight budget management, pursue a revised budget and run scenario projections in upcoming months.

After the presentation and questions, Marilyn Severson moved to accept the audit as presented; Jamie Summer seconded and the board approved the audit 7–0.