Little Falls fund balance decreases due to an increase in expenditures

By Tina Snell

Staff Writer

tina.snell@mcrecord.com

 

The Little Falls School Board voted to accept the audit of the district’s finances at Monday night’s board meeting.

Kern Dewenter Viere, a Minnesota-based certified public accountant and business advisory firm, was represented by Janel Bitzan. She gave the board an audit presentation for the 2012-13 school year.

With an increase in revenue and a greater increase in expenditures, the general fund balance for the year ending June 30 was $3.05 million, a 12.7 percent decrease from June 30, 2012.

For the year ending June 30, Bitzan said $2.76 million was received from local property taxes, $20.26 million was received from state sources and $1.72 million was received from other sources. The $24.75 million in revenue was an increase of about 4 percent over the previous year.

Expenses were $25.8 million for the 2012-13 school year, $1.1 million more than the revenue taken in and about $500,000 more than budgeted for.

The district had budgeted for $24.6 million in revenues and $25.3 million in expenditures. It expected operating revenue to decrease by $723,000. The general fund decreased by about $450,000 due to capital lease proceeds of more than $650,000.

Food service revenues were $1.18 million with $1.23 million in expenditures, a $52,543 decrease in the fund balance which was finalized at $305,305.

The Community Service revenues for the year were $855,974 and expenses came to $880,139, a $24,165 difference. Its fund balance is now $32,704.

Bitzan said that there were negative findings due to the lack of segregation of accounting duties within the business office. She also said the same was found in about 98 percent of all districts she audited. She also found no issues with the districts compliance with legal provisions.

Little Falls School Board briefs 

Other business conducted by the Little Falls School Board Monday night included:

• Allowing the Wellness Committee to spend up to $4,200 for prizes, gifts and healthy treats during the annual wellness program for staff. During the 2013-14 school year, there will be four different challenges to keep employees engaged, the first is walking 50 miles over a period of time. The money for the annual program comes from approximately $43,000 the district received from a prior tobacco settlement;

• Agreeing to apply to the Minnesota State High School League Foundation for a grant to offset student activity fees;

• Voting to sign a statement of compliance with state and federal laws prohibiting discrimination;

• Agreeing to increase the district’s leased land from $18 per acre to $20 per acre. Lessees include Scott Doroff (61.25 tillable acres near the Morrison County Fairgrounds) and Eric Smude (24 tillable acres near the FFA property). The payments will be reduced annually by the amount of property taxes paid by the lessee;

• Accepting gifts from the Norma E. Nelson estate — $500 to the Dr. S.G. Knight Scholarship fund and $500 to the Little Falls Community High School (LFCHS) fund; Zion Lutheran Women — $75 each to Dr. S.G. Knight, Lincoln and Lindbergh elementary schools; Bruce and Donna Bergman — three bookshelves to Lindbergh Elementary; city of Little Falls — $29,000 to the Youth Recreation Program; Woltjer and Associates — $1,000 to the greenhouse project; Flyer Athletic Boosters — $1,800 to the strength and conditioning program; and Heartland Symphony Orchestra — complimentary family concert tickets for all fifth grade students in the district;

• Hiring Melissa Anez as the district school nurse; Scott Doroff as Lindbergh’s lunchroom supervisor; Stephany Karpinski as a paraprofessional at Lincoln Elementary; LaJoy Scepurek as an administrative assistant with community services; John Sobiech as a custodian and Sheila Venske as a paraprofessional, both at the LFCHS;

• Accepting the resignation of Katie Boser as the ninth grade girls basketball coach and Gary VonderHaar as Lindbergh’s lunchroom supervisor;

• Allowing Robert Salber to extend his retirement date to Sept. 30.

The next School Board meeting will be held at the Morrison County Government Center Tuesday, Nov. 12, beginning at 5 p.m.

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