Areas of concern noted in LS-H School Board's annual audit report

The board learned they do have some unclaimed checks to be addressed. Abdo Senior Audit Manager Layne Kockelman informed the board that if the school district has checks that have not been cashed for three years, they need to reach out to the individual and get the check off the books. Kockelman said these are usually smaller checks for part-time help.

School Board Chair Brigid Tuck said she looked through the list and found no alarming checks, some were amounts like $20 for someone who helped referee a game.

Another area of concern is the district’s declining daily membership. According to Kockelman, the district’s enrollment has dropped from 1,034 in 2019 to an all-time low of 915 in 2021, and is up to 920 this year. Along with the decrease comes a decrease in state aid, and Kockelman further pointed out the district’s fund balance is a little under where it should be.

However, Tuck pointed out the district had a negative balance in 2012. Higher than expected expenses in the past year decreased the fund balance from $2 million to $1.5 million, Kockelman said.

The district expected $12,256,432 in revenues last year, but when the total was in they had spent $12,334,344 against $11,910,703 in revenues.

Kockelman also shared data that showed LS-H is receiving less general fund aid compared to the state and region. LS-H receives $9,707 per average daily membership, $775 from the feds, and $2,457 from local sources, for a total of $12,939. By comparison, the regional average is $13,739, and the state average is even higher, $14,400.

At the same time, LS-H also has the lowest property tax impact per student. The statewide average is $1,885 which amounts to $495 on a $100,000 home; the regional average is $1,845 and $476 on a $100,000 home; and LS-H is collecting $1,658, or $349 on a $100,000 home.

It should come as no shock that student instruction is the highest cost to the district, followed by special education instruction, sites and buildings, pupil support services and administration.

The Community Service budget took a hit last year, with $839,719 in expenses, while $802,177 was collected in revenue, for a loss of $37,542, which came out of the community service fund balance.

Some good news is the district’s bond for the high school remodel (about $1.3 million/year) will be maturing and dropping off in 2026.

The school district also took in $761,935 in revenues for food service last year, against $572,447 in expenses, for a net profit of $189,488.

However, Tuck pointed out that school lunch has gotten a lot more expensive this year, and does not anticipate that will continue.