The Park Rapids School District has seen two years of overspending.
Mary Reedy with CliftonLarsonAllen LLP presented a summary of the 2023 audit at the Monday, Nov. 6 school board meeting. The fiscal year ended on June 30.
General fund revenues were $23,952,788 compared to $24,691,936 of expenditures. As a result, the general fund balance decreased by $739,148.
“You’ve had two years of overspending – $524,866 last year. This year, $739,148,” she said.
Reedy compared the unassigned fund balance of $1,703,658 to last year’s $3,350,421 balance. The current balance is equivalent to 0.83 months of operating expenditures, but district policy is to have two months set aside, Reedy said. “You should be at about $4.1 million.”
“With the big, continual spend down, even back to 2020, you really need to assess that and monitor that. With that, you can’t really add more expenses that you don’t have revenue coming in for. That’s why you keep drawing from your unassigned fund,” she continued.
The district is “heavily reliant” on the state government for revenues, which totaled $31,515,285 in 2023. Fifty-seven percent of revenues came from the state, 21% from property taxes, 10% from federal government and 12% from other sources.
Graph courtesy of CliftonLarsonAllen LLP
Instructional costs comprise 45% of expenditures, “where you’d expect it to be,” Reedy said. Capital outlay is at 18%, with the new building projects.
Graph courtesy of CliftonLarsonAllen LLP
Debt service revenues and expenditures increased. “You have the new bonds you’re paying on,” Reedy said. The debt service restricted balance was $909,790.
In 2023, $5.3 million was spent out of the capital projects fund, with $46,926,959 remaining.
Food service revenues were $1,271,723, with expenses at $1,215,171. Expenditures were $90,966 over budget. Reedy noted food costs were higher than expected for about 90% school districts that she works with.
The community service fund saw a net increase of $48,045, with $1,304,301 in expenses offset by $1,352,346 in revenues.
Average daily membership was 1,664 in 2023, down 19 from 1,683 in 2022. “You did gain a little ground in secondary, which gave you a little more (state) funding there,” Reedy said.
The district’s combined net position was $7,262,219, an increase of $5,693,016 over the prior fiscal year.
CliftonLarsonAllen LLP gave an unmodified, or “clean,” opinion on the school district’s financial statements. This means, Reedy explained, that the documents are presented fairly and accurately.
The school board approved the audit report.
In other business, the school board did this:
- Hired Wyatt Sanford as assistant baseball coach, Jeb Sanford as C-team boys basketball coach and Casey Hilden as middle school speech coach.
- Hired paraprofessionals Amy Sorenson and Jane Peterson.
- Accepted a resignation from paraprofessionals Kristin Johnson.
- Accepted $3,222 in donations from Itasca-Mantrap Electric Cooperative to the Century Elementary and Middle schools, high school, Business Professionals of America (BPA) and Alternative Learning Center.
- Accepted a 3D printer from St. Cloud State University for Century Elementary School.
- Accepted Park Rapids Education and Activities Foundation’s donations of $2,300 for boy’s basketball travel tops and warm-up pants; $2,227 for girl’s basketball HUDL and shirts; $1,500 to BPA for a spring leadership conference; $1,500 to the post-prom committee and $303 to Kristen Poehler’s second grade class for a hydroponic growing system.
- Accepted 235 pumpkins, in total, from Carter’s Farm, Walmart and Pike’s Corn Maze for Halloween fun.
