Falls City school board reviews oil lease, annual audit
by Bain Serna
Oct 28, 2012 | 1662 views | 0 0 comments | 9 9 recommendations | email to a friend | print
FALLS CITY – The Falls City Independent School District (FCISD) board of trustees reviewed an oil and gas lease bid, as well as the district’s annual audit report during the Oct. 17 regular school board meeting.

The board reviewed and approved a bid from Marathon Oil for the lease of a 1.465 acre tract of land the school district owns in the area known as “Jauer Flats,” which is an area between Falls City and Karnes City. The approved three year lease agreement will have Marathon Oil paying $5,000 per acre plus a 25% royalty. Marathon Oil was the only company to make a bid on the district-owned property.

They (Marathon Oil) came to us stating they wanted to lease the property, so we put it out for bid,” explained KCISD business manager Teri Crawford. “We didn’t go looking to lease it. It is extra income for the district, even if it never gets drilled on… because they are paying us about $8,000 just to lease the land, so we can always use the extra money.”

“The oil lease bid was good for the district,” added district superintendent Linda Bettin. “It allows the district to earn some income on a small piece of property that is not being used at this time.”

Also during the meeting, the trustees heard and approved the annual district audit report given for the 2011-2012 fiscal year. Auditor Cameron Gulley presented the audit to the board. The audit report stated in summary that the district had no material weaknesses identified, and reported no significant deficiencies in regards to internal control over financial reporting.

According to the audit findings, a “clean opinion” was issued on the general purpose financial statements. The audit showed “no non-compliance which is material to the general purpose financial statements.”

“The audit was a great audit,” explain Crawford after the meeting. “Our fund balance was increased by over $500,000 during the 2011-2012 school year, due to increases in property values in the district.”
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