0:04During the audit presentation, Mikon detailed the implementation of new standards concerning group capital assets and the examination of internal controls over financial reporting, such as payroll and cash management. He underscored the importance of addressing the audit finding related to accounting practices to avoid future issues. Mikon assured the board that the district’s financial operations, including bill payments and contract reviews, were appropriate.

The audit also involved compliance checks with Minnesota laws and regulations, with no findings reported. The district received approximately $7.6 million in federal funding, necessitating a single audit for federal awards, which similarly reported no findings. Mikon emphasized that the audit process serves as a learning opportunity, encouraging continuous improvement in financial practices and noting that staff turnover had presented challenges during the audit year.

The financial results showed a slight increase in the district’s fund balance, reaching around $142 million in total for the general fund, with an increase of about $2.6 million. Mikon compared statewide operating fund balances, noting relative consistency over the years, with fluctuations due to the pandemic. The district’s fund balance as a percentage of expenditures was reported at 7.5%, up from 5.9% the previous year. Mikon urged board members to focus on maintaining the district’s fund balance policy, which aims for a minimum unassigned fund balance of 8%.

Insights into revenue and expenditure per student were shared, with district revenue reported at approximately $22,226 per student. State funding increases, particularly in special education and food service, were noted, along with a decline in federal funding as pandemic-related supports diminished. The district’s expenditures per student were about $2,633, with significant allocations to regular instruction and special education. Mikon highlighted the importance of the district’s financial health and urged vigilance regarding implemented financial practices and policies.

17:59The board also addressed the district’s fund balance, which, at 7.5%, is slightly below the established policy. General fund revenues exceeded the budget by approximately $3.8 million, attributed to conservatively budgeted other revenues, better-than-expected tax collections, and increased state funding in transportation. Conversely, general fund expenditures exceeded the budget by about $3.3 million, mainly in supplies and materials, salaries, and purchased services. Despite these overages, the budget was managed well overall, with a net variance of under one million.

The community service fund was discussed, showing a deficit position of approximately $322,000, although it performed better than expected. Increased participation in school-age care and youth enrichment programs contributed to this improved performance. The internal service fund, primarily for self-insured health benefits, saw an increase of about $800,000, with revenues reaching approximately $15 million by year-end. The internal fund’s operations are currently at about 33%, with a goal of reaching around 50%.

37:07The meeting also delved into community perceptions of the district, sharing results from a survey of 400 randomly selected residents. The survey revealed that 86% rated the quality of education positively, a slight increase from previous years and contrasting with a statewide trend of declining educational quality perceptions. Teachers were the most appreciated aspect of the district, while funding and discipline issues were cited as major concerns. Despite these concerns, a majority felt the district was meeting their needs, although worries about learning loss during the pandemic persisted.

56:05Community attitudes toward curriculum were explored, with 75% of respondents expressing no concerns, while 25% cited issues related to liberalism, gender identity, and LGBTQIA+ matters. The survey also highlighted property taxes as a concern, with 49% of residents believing their total taxes were high. However, only 44% considered school taxes to be high, and opinions on financial management were generally favorable, with 64% rating the district positively.