School financial picture brighter

By Trisha Marczak (Contact) | The Daily Journal

Published Tuesday, November 25, 2008

The Fergus Falls School District’s financial situation is looking up.

The district was mandated by the state to enter statutory operating debt (SOD) in June 2007 when the district’s fund balance deficit fell below acceptable state standards. But the district’s poor financial standing is soon to be a thing of the past.

An audit delivered to the school board Monday by Carlson Highland Certified Public Accountants revealed that the district is closer to working its way out of statutory operating debt — and should be able to do so by June 30, 2009.

When the school district first entered into statutory operating debt, the district had a fund balance deficit of $1.392 million. As of June 30, 2008, that deficit had shrunk to $916,000.

To help work its way out of SOD, the district drafted a general fund budget plan with revenues expected to exceed expenses by $50,333. The district wound up with $1,028,339 worth of revenue that exceeded expenses. That, in part, has helped the district progress towards its goal of making its way out of SOD by June of 2009, said Superintendent Jerry Ness.

Finding alternative ways to employ teachers who were placed on the district’s unrequested leave of absence in April have allowed the district to hire back 22 of the 23 teachers without reaching into the general fund. Many of those teachers were hired after the district applied for and were awarded grants.