by David Hill
Editor

The 2022-23 audited financial statement of School District 564, Thief River Falls, by Brady Martz and Associates was accepted by the Board of Education Monday, Nov. 27. It found that its financial statements were presented fairly, in all material respects, and in accordance with the applicable financial reporting framework.

These audits look at basic information, routine financial tasks and duties, such as use of funds in accounting, internal control procedures, financial reporting requirements, federal and state auditing requirements, deposits and investments.

It found no instances of non-compliance. There was one issue regarding internal control as the District apparently overpaid a penalty, and it was not reported as Brady Martz would have preferred to see it reported. It was noted by members of the Board of Education that the District still believes the penalty will be forgiven.

The report did focus on one major federal program. It audited the Education Stabilization Program. Brady Martz found it had complied with all financial reporting requirements.
It was also noted that the District’s unreserved general fund balance was at 13.4% of general operating expenditures as of June.

An unreserved (unassigned) fund balance is maintained by all Districts in the state for financial stability, and to protect programs that are needed to serve children at times when revenues are uncertain.

At its last meeting, the Thief River Falls Board of Education modified its policy of maintaining an unreserved fund balance from between 10 and 20% to 15 and 25%.

The report briefly touched on several elements of the District’s budget. One unusual element was a large expense for Long-Term Maintenance Facilities. Superintendent Chris Mills explained that the District can borrow against the levy and had done so to cover the expense of a large project.

Mills also noted the revenue was down because there is less ESSER funding for schools, there had been a property tax equalization change, the District had refinanced some bonds, and there was a decline in enrollment.

Superintendent’s Report
In his report to the Board of Education, Mills noted that enrollment had stabilized at 1801 as of Nov. 1. That includes students K-12, and students enrolled in the Northwest Area Learning  Center plus 50 Early Childhood Education students.

Budget review
Mills also reported that the administrative team had started the process of reviewing budget reduction areas. The intent of the group is to present recommendations to the Finance Committee in mid-December and a report to the full Board in January. They will be updating a timeline of the process for review in the next week. Mills said they plan to inform teachers impacted by budget reductions in the end of January.

Mills also touched on future opportunities with teacher internships. Mills said the state seems to finally be moving in the direction educators would like – paid internships, and allowing more local District control. He sees it as a good sign.

State statute prohibits Districts from paying student teacher interns.

Native American Coordinator and Ojibwe Language Teacher
The Board of Education approved using grant funds to pay for an American Indian Coordinator (up to 20 hours per month), and an Ojibwe Language Teacher.

The next regular meeting of the Board of Education will be on Monday, Dec. 11, at 5 p.m.