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Finance director reports accrual of $110,000 interest and ongoing cash‑flow borrowing; district has borrowed about $3 million this year
Summary
Finance reported the audit’s first review will occur soon; an accrual of roughly $110,000 in interest for cash‑flow borrowing affected FY24 expenditures, the district has borrowed about $3,000,000 this year, and declining enrollment could reduce revenue by about $350,000.
Dawn, speaking for finance, told the board the audit is progressing but that the district must accrue interest on cash‑flow borrowing for fiscal 2024, which increased expenditures by about $110,000. The finance update said the district has undertaken roughly $3,000,000 in borrowing this year and that the audit will show those required accruals.
Dawn explained that state payments to districts are metered and do not arrive as a single lump sum, and that the combination of cash‑flow borrowing and lower enrollment drives continued interest expense: "We have already borrowed $3,000,000 for this year," she said, and the board heard an estimate that a drop from a 71‑student senior class to 36 kindergarteners represents about a $350,000 reduction in revenue.
The finance office said it is pursuing every allowable use of reserve funds and will present audit results in November. The board discussed the timing of reductions and the relationship between near‑term savings plans and longer‑term audit recovery.
