Commentary published by School Board Vice Chair, Kristi Peterson, in the Shakopee Valley News - December 2023

Financial stability is what the Shakopee Public Schools Board has been striving to achieve for several years. In fact, financial stability and district alignment are one of the three strategic priorities established by the School Board for the district.

During the November 20^th School Board meeting, the district received and accepted the formal annual audit results as presented by BerganKDV.  On behalf of the School Board, I am happy to report that another clean audit report was received, which is the highest rating that a district can earn.  

An Independent Auditor Report serves as an unmodified opinion on the district’s financial statements for the year ended June 30, 2023. The results of the audit were performed with Government Auditing Standards from a single audit performed in accordance with uniform guidance and testing of Minnesota Legal Compliance.

In addition, the audit confirmed that the district’s unassigned fund balance had reached $9,491,506 or 8.4% of the general fund.  For the first time in 9 years, Shakopee Public Schools has met policy 714, which states that the district’s unassigned fund balance should remain between 8-12%.

An unassigned fund balance is the one financial figure that is most often used as an indicator of a district’s overall financial health. It allows the district to have a sufficient cash flow if we experience uneven revenue or expenditures. In addition, a healthy unassigned fund balance helps maintain or improve the district’s credit rating. For example, if the State of Minnesota would experience a shutdown, the district would not receive any funding during this time. Thus, a healthy unassigned fund balance would allow Shakopee to continue operating and be able to pay expenses without penalty.

Bringing Shakopee’s unassigned fund balance within policy range is extra meaningful for both the School Board and district leadership. Moving forward, the district will continue to work to maintain this balance in addition to other highlights that were included in the audit. 

Achieving financial stability didn’t happen overnight nor does it stop here. Maintaining such stability is critical to the future of our district. We are committed to ensuring that the future of Shakopee Public Schools remains bright for our students and community, and will bring that momentum in the new year, and beyond.