Tuesday night, the River Valley School Board heard and approved the audit presentation for the 2024-25 fiscal year that took a year to complete and showed eleven problems and a financial shortfall.
The audit showed for that year a budget deficit of $966,782, and the findings overview showed five material weaknesses and six significant deficiencies, ranging from a lack of account reconciliations to errors in previously issued statements to three transfers totaling $220,000 from Student Activities Fund accounts to finance the general fund payroll.
On top of ICTC and Cyber School payments for this year, the total deficit the district faces could be close to $2.5 to $3 million in debts.
Auditors Wessel and Company suggested four priority actions for the district:
- Stabilize cash and safeguards
- Restore monthly-close discipline
- Formalize year-end reporting
- Strengthen compliance ownership
When asked how did the district get to this point, Board President Rick Harper said that former Superintendent Philip Martel gave the board incorrect information.
Harper also said that the board is not pursuing legal action against Martel.
Like many of the Board Members, Beverly Caranese said that the sustainability of the district’s schools are at stake, including the STEAM academy.
Both agreed that the district will have to make some hard financial decisions moving forward.
