Storm Lake Schools Audit Shows Unmodified Opinion, Revenues Up, Solvency Dip

Auditors concluded the Storm Lake Community School District’s financial statements were presented fairly in all material respects, while the district recorded higher revenues and a lower solvency ratio that will shape budget conversations in Buena Vista County. School Business Official Trudy Pedersen walked the School Board through the draft 2024–25 audit prepared by Cornwell, Frideres, Maher & Associates, PLC of Fort Dodge, and board members unanimously accepted the draft with only minor edits remaining.

General fund revenues increased by about $1 million last year, and expenditures rose $890,000. Despite the revenue gain, the district’s solvency ratio fell from 5.56 percent to 3.42 percent, a change Pedersen said was expected. Enrollment grew by 80 students overall, including a net increase of 154 open enrollment students, shifting classroom sizes and resource needs across the district. Salaries and benefits now account for more than 81 percent of general fund spending, reflecting new teacher minimums and improved support staff pay.

The report showed the district’s total net position increased modestly by $154,000, while long-term liabilities declined by $2.7 million, largely because of bond payments. Construction in progress rose $2.68 million, tied primarily to the new early elementary school project. Federally funded programs remain a significant revenue source; Storm Lake received $5.56 million last year, down from prior years as Elementary and Secondary School Emergency Relief pandemic funds expired.

Public pensions factored into the discussion. Storm Lake’s share of the Iowa Public Employees’ Retirement System, or IPERS, stands at 0.25 percent of the statewide plan, which was 92.3 percent funded as of June 30, 2024. That funding level has implications for long-term employee retirement security and future employer contribution rates that will affect district budgets.

Auditors reiterated familiar internal control deficiencies, such as segregation of duties, but reported no compliance violations. The board’s acceptance of the draft came the same night board president Dave Skibsted expressed appreciation for Pedersen’s work; Pedersen plans to retire June 30 after more than two decades with the district.

For Storm Lake families and staff, the audit’s mix of stability and strain matters for day-to-day services. Higher salary costs underscore progress on pay equity and staff retention, which can improve school-based supports for students’ mental and physical health. At the same time, the drop in solvency and the wind-down of ESSER funds mean the district will need to balance pay, staffing, and the completion of the early elementary school without depending on one-time federal relief.

Next steps include finalizing the audit after the minor changes Pedersen noted and continuing budget planning for the coming school year. Community members should watch board meetings this spring as the district translates these audit figures into staffing decisions, program funding, and timelines for the new early elementary school.