Audit report: Blackduck school district is stable
The Blackduck School District was given its audit report for the fiscal year, which ended on June 30, before the school board meeting on Dec. 9.
Donald Zierke, of Miller McDonald Inc., was present to give the board a general wrap-up of the districts funds for the year.
The total revenue for the district in 2013 was $6,635,881. The general fund balance has improved in 2013 to $112,848 compared to it being $34,193 in 2012.
The improvements will benefit the district, but Business Manager Josh Ziegler said that in the general scheme of things, $100,000 won’t make much of a difference. The fund is used to support fuel prices for heating, buses and more.
The fund increased in 2013 because the state of Minnesota changed its funding formula from a 60 and 40 percent split in 2012, to a 82 and 18 percent split in 2013.
With the funding formula in 20 12, the district only receives 60 percent of of the money that the state gives it at the beginning of the year and will receive the other 40 percent at the end of that fiscal year.
“That was very tough financially to budget and get through that because they withhold 40 percent of your money until the following year,” Ziegler said of 2012.
The general fund of cash and investments has also seen increases with the higher funding split. In 2012, the fund was at $355,486 and in 2013 it rose to $1,233,600.
“That’s where it’s really nice,” Ziegler said. “In past years, we’ve had to go to local banks that issue bonds just to make enough money to get by.”
The general fund of cash and investments is used for payroll in the district and also for supplies.
The district didn’t have any bonds issued to it in 2013, but did have a bond worth $495,000 in 2012.
Ziegler doesn’t anticipate that the district would have to borrow money for the fiscal year of 2014, but said it will all depend what the state does with the funding formula.
“If I did have to characterize … and I don’t like to characterize, I would say that were stable,” Ziegler said of the district’s current financial situation.