H-BC budget remains in the black

Finances continue to be positive for the Hills-Beaver Creek School District, according to an independent audit report presented at the district’s Dec. 28 meeting.
Accountant Matt Taubert presented the 2019-20 financial statement to board members for the fiscal year ending June 30.
“This is a clean opinion. It’s no qualifications, which is exactly what you’re looking for in your reports,” Taubert said. “The same opinion we have had for all the financial statements that we have done for the district.”
Taubert is with Meulebroeck, Taubert & Co. of Pipestone and has completed the district audit since 2013.
H-BC had total revenues of $5.9 million for the 2019-20 school year and expenditures of $5.5 million.
The $323,000 positive fund balance boosted the general fund to $3.4 million as of June 30. The amount includes $2.5 million in reserves.
Taubert noted the boost would have been larger if not for a roof repair at the elementary school that lessened the general fund by $265,000
The district instituted a policy several years ago to have at least 20 percent of an annual year’s expenditures or about $874,000 carried over at the end of the fiscal year.
“You’re well over your target. Your unassigned fund balance is at 59 percent of what an average three years of  expenditures would be,” Taubert said.
The fund balance was at a negative $224,000 at fiscal year-end 2012.
“In nine years you have increased your fund balance by $3.7 million,” he said. “You have some wiggle room now especially for uncertain funding times that might be coming up.”
The healthy unrestricted balance will allow the district to continue without any significant cuts or changes to curriculum in the near future.
 
Uncertainty ahead for 2021 due to COVID-19
H-BC enters the second half of the 2020-21 fiscal year with uncertainty, according to information presented at the district’s Dec. 14 Truth in Taxation hearing.
No one from the public attended the hearing in person or via Zoom.
A revised 2020-21 budget will be presented at a future meeting and could provide a glimpse of what is ahead for the district.
Six months ago, board members approved general fund spending of $4.721 million.
“That budget has changed quite a bit since June,” Superintendent Todd Holthaus said.
Revenue is up due to coronavirus aid dollars coming into the district along with expenses related to COVID-19. The district also purchased a new bus last fall.
After the hearing, the board approved the state-tabulated local 2021 levy of $1.371 million, or $18,800 more than last year.