NRHEG receives strong audit report

Members of the NRHEG school board were given a positive audit report during their regular meeting the evening of Monday, Oct. 20.

 

Chad Guse, a senior associate with Abdo accounting firm out of Mankato, attended Monday’s meeting remotely, and announced NRHEG’s required annual audit is “clean,” that is, substantially free from errors or elements which would cause concern. While there are dozens of expected steps and requirements for tax-funded entities, only a few minor missteps were noted: one example is that the letting of a contract which, based on state-set procedures, should have been handled using sealed bids, was instead decided based on quotes provided by the interested companies.

 

Guse, whose company performs hundreds of similar audits all around the state, complimented the district on its frugality, noting that its costs per student are lower than most other districts, its debt load is lighter, and its dependence on property taxes is lower.

Many districts statewide have what are called “operating levies,” that is, they have requested special income from area property tax payers in order to “keep the doors open.” NRHEG has no such levy.

 

A significant element affecting the district’s finances, Guse indicated during his report, is its gradually falling average daily membership (ADM), a figure the state uses to determine how much funding it will provide to districts. ADM is meant to indicate not the school’s official enrollment, but how many learners are present in the district’s buildings on any given day. The state provides a bit more than $7,250 in funding each year for every “member” the district serves.

 

Guse also mentioned that, because of the federal government shutdown, certain procedural steps for the audit have not been completed. While the numbers and findings in the report are all finalized, the audit is still technically only a “draft” until those procedural steps have been satisfied.

 

Board chair Rick Schultz also announced the results of a recent annual review of district superintendent Michael Meihak’s job performance. His summary stated Meihak “meets or exceeds the board’s expectations” when it comes to four target areas of communication and information sharing, general environment, providing professional development and maintaining positive public relations, he “meets or exceeds” board expectations. 

 

Schultz’s statement indicated, “It is the board’s belief that staff relationships continue to remain strong. Compliments were given about the maintenance and general appearance of our district. Mr. Meihak shared with the board of education that he will continue to learn and grow with the district.

 

“The board of education appreciates the good working relationship with him.”

 

Meihak informed the board he had been notified by the Minnesota Department of Transportation (MnDOT) that the work originally scheduled on Highway 30 for the summer of 2026 has now been rescheduled to 2027.