A issue at the meeting was the non-compliance with Minnesota statutes regarding contract bidding. It was highlighted that for projects exceeding $175,000, sealed bids are required. However, for the security camera and door access project, only quotes were received, leading to a finding of non-compliance. This situation underscored the need for financial oversight by the board to adhere to legal requirements and ensure transparency in financial dealings. The auditors, during their presentation, reiterated the importance of proper documentation and monitoring of financial activities. They noted ongoing challenges with segregation of duties and recommended improvements in credit card transaction records. The board was encouraged to maintain its healthy fund balance, which remains above the stipulated threshold, reflecting sound financial management despite the noted issues.

Another topic was the introduction of a grade check-in system aimed at improving student academic performance. This system involves regular monitoring of student grades, particularly focusing on those with failing marks. The intent is to facilitate early intervention by informing parents and students of academic challenges before the end of the quarter or semester. During the meeting, it was noted that 54 students initially had failing grades, which decreased to 40 following the implementation of the check-in system. However, response rates for the grade check forms dropped from 38 to 18, raising concerns about parental engagement. The board recognized the importance of maintaining clear communication with parents, exploring alternatives such as text messaging for more effective outreach. The speaker emphasized the need for students to take responsibility for their performance, while ongoing efforts aim to refine this process to enhance student accountability and academic support.

The meeting also included a review of the district’s financial audit for fiscal year 2025. Presented by Chad Guzie from ABDO, the audit remains in draft form pending a federal compliance supplement. Guzie reported an unmodified opinion on the financial statements, indicating no material misstatements, but noted issues with limited segregation of duties—a common challenge in smaller districts. The board discussed the fiscal health of the district, with revenues exceeding budget expectations due to state grants, though expenditures also surpassed projections primarily because of capital outlay on instructional iPads and buses. The school’s financial status was deemed favorable, with property tax rates per Average Daily Membership (ADM) lower than regional counterparts, reflecting efficient financial management.

The board also reviewed community service funding, which reported revenue surpluses due to increased fees and tuition, though this was counterbalanced by rising expenditure trends attributed to inflation. Another area of focus was the ongoing Highway 30 project, now delayed until summer 2027 due to funding issues, highlighting the need for continuous monitoring and planning by the board.

Additionally, the board addressed the integration of artificial intelligence (AI) in education, initiating discussions on responsible implementation to enhance learning environments. Plans are underway to develop guidelines, which will be presented for board approval.