W.S. school audit raises spending concerns

Operating on the minimum tax rate levy in Missouri, Willow Springs R-IV School district showed a net decrease in funds of over $1.2 million and a six percent decrease in the unrestricted fund balance in the audit of the 2024 fiscal year. The school board heard a review of this audit at their Jan 13 meeting.  
 
Responding to a school board member’s question about spending, independent auditor Kenny Thomas said, "If we repeat this process, you're gonna be hurting pretty fast."
 
Both restricted and unrestricted reserves are down, due in large part to COVID-era spending, the board heard. 
 
The unrestricted fund balance for the fiscal year 2024 is 13.8%, the board heard. Current targets for the district are to keep that figure at 20%, confirms Superintendent Dr. Marty Spence. He described the unrestricted fund balance as, “basically a school’s savings account.” 
 
The state of Missouri requires only a 3 percent unrestricted fund balance. 
 
Members of the public in attendance had harsh criticism of this decreasing balance. Figures provided by the central office show a fluctuation around the target since fiscal year 2021, as follows: FY21 - 20.88%; FY22 - 27.51%; FY23 - 19.85% 
 
“The district average from 2000-2010 was 10.8% and from 2011-2020 it was 19.2%,” noted Dr. Spence.
 
Dr. Spence, along with an almost entirely fresh slate of administrators, took the helm in 2022. 
 
Former school board president Tony Friga addressed the board during the public comment period, saying, “There’s a spending problem in this district that needs to be addressed.”
 
In a follow-up interview, Dr. Spence commented, “We have increased salaries and spent ESSER funds (as required)…We're going to be more conservative in our spending and evaluating our programs and staffing, and future budgets will reflect that strategy. We need to make some financial changes over the next couple of years and I'm confident that we will work towards that end.”
 
The FY25 audit will show that all the ESSER funding has been spent, as required, the board heard. 
 
Regarding the decline in the unrestricted fund balance, Dr. Spence listed, “post-COVID salary increases, inflation across the country, and enrollment has dropped over 100 students from 2020,” as contributing factors. 
 
The Willow Springs School District is not immune to larger economic factors. 
 
“We had an influx of federal money (ESSER) beginning in 2020. Those funds are gone, and that has had a substantial impact on our finances. Additionally, like everything else in the country post-COVID expenditures are up, and revenues are down. The district still operates at the state minimum $2.75 tax levy,” Dr. Spence said. 
 
Friga, who was school board president when Spence was hired, had harsh words for the superintendent, “The goal is to have 20% in reserves, right? You are failing on this, desperately,” Friga said. 
 
Dr. Spence responded to this criticism, telling the News, “The unrestricted fund balance did not meet the district's goal. Ultimately, it's my responsibility to help the district meet that goal. Other than budgetary concerns, I feel like I've been able to lead the district to high standards and values.
 
Our main goal is to love, serve, and educate the kids of Willow Springs. I feel we achieve that goal every day with a tremendous staff that loves helping kids succeed. I've been able to lead a team of administrators and staff that has grown a positive, high-trust culture across campus. 
 
Academically, we are consistently one of the top performing schools in the conference. Willow remains innovative and respected across the region. I remain highly confident in the future of Willow Springs R-IV.”
The FY24 audit appears on page 10 of this edition. 
 
For full coverage of the Jan. 13 school board meeting, see PAGE XXX. 
 
Content Paywall Trunction: 
Free

Login For Premium Content

Howell County News

110 W. Main St.,
Willow Springs, MO 65793
417-252-2123

Comment Here