FRIDLEY, MN — The Minnesota Department of Education has raised serious concerns about financial management at Fridley Public Schools, ISD 14, and demanded accounting records by November 6, warning that failure to comply could jeopardize state aid and the district’s ability to operate effectively. MDE’s concerns include an unfinished audit for the 2024-25 fiscal year and borrowing to repay existing debt. The department described the risk of continued borrowing as a “debt spiral.” The missing audit has complicated efforts to establish a reliable picture of the district’s finances and debt obligations. The district’s business and finance website continues to list the 2024-25 audit as a work in progress. Adopted budgets and financial forecasts are planning documents and do not replace completed audited financial statements. The district’s Moody’s rating has also been withdrawn. Lori Andler told the school board that the withdrawal was tied to the unfinished audit, rather than the district withholding information. A withdrawn rating can complicate borrowing; the material reviewed does not establish a specific dollar amount in added costs attributable to the withdrawal. Richard Coleman, whose three children graduated from Fridley Public Schools, raised concerns about financial controls and the consequences for taxpayers. Coleman previously ran unsuccessfully for school board, with district finances a central concern. He expressed fear that the financial situation could eventually result in district closure. That is Coleman’s prediction; the material provided does not establish that a closure has been ordered. In a written response, Fridley Public Schools acknowledged the seriousness of its financial challenges and said it is cooperating with MDE. The district said it welcomes a thorough review of its records and practices as it works toward long-term financial stability. District officials said recent work has focused on correcting historical financial reporting issues, strengthening oversight and improving internal processes. They acknowledged that more work remains. The district said it presented its financial circumstances, contributing factors, corrective actions and next steps during an October 20 school board work session. It said information from that presentation was also shared in the superintendent’s October 24 update, and promised continued updates to staff, families, the school board and the community. The November 6 records deadline is the next stated milestone in MDE’s review. The concerns described here are financial oversight issues; they do not establish a finding of criminal fraud. Image: Fridley Public Schools logo.