During the Anderson School District One Board meeting Tuesday, Ken Meadows of Greene Finney CPA firm told the Board that District One received an “unmodified” opinion, “the best you can get” on their annual audit report. “The audit went well and Travis Thomas and his staff did a great job,” Meadows said.
The audit showed the District One Fund Balance increased $.5 million to $22.4 million and the District has a nonspendable fund balance of $.2 million for inventory, leaving the unassigned Fund Balance at $22.2 million. That is 26 percent of the budgeted expenditures for 2022.
Meadows said the GFOA recommends a minimum of 16.7 percent, or about two months of expenditures be in reserve in the fund balance.
General Fund revenues increased 2.3 percent, or $1.8 million, to $80.8 million for 2021. An increase in assessed values for property taxes was $1.1 million, while state sources provided $1.6 million increase. There was a decrease of $900,000 in other local revenues due to lower investment earnings, Meadows said.
State sources also accounted for $1.3 million more than budgeted.
On the expense side, District One had General Fund expenses of $83.2 million for 2021. Of that, $53.2 million was for instruction, $27.5 million for support services and $2.5 million in other expenses.
There was a $3.4 million (4.2 percent) increase in salaries and benefits for instruction and a $600,000 increase for support services salaries and benefits. There was also a $700,000 increase in capital outlay.
There was a $2.9 million transfer from the General Fund to cover EIA teacher raises and indirect costs last year.
Audits were done on the Debt Service Fund, Capital Projects Fund and two special revenue funds, student activity and food service.
The debt service fund had a $5.5 million fund balance with $2 million collected from the Local Option Sales Tax.
The Capital Projects Fund had a $39.2 million fund balance with $8.1 million in LOST revenues; $17.9 million unspent LOST revenues; $19.3 million unspent debt proceeds; $2 million unspent General Fund transfers and $20.9 million in outstanding commitments.
Special Revenue funds audit showed the student activity funds had a $1.1 million fund balance and a $2.9 million carryover (restricted) at the end of the year. The Food Service fund had a fund balance of $1.9 million.
Capital assets increased $44.5 million to $220.2 million. This includes current year additions of $50.9 million. Of that $47.8 million is construction in progress at Wren Middle, Palmetto Middle, Powdersville Middle, energy efficiency upgrades and other ongoing projects.
Equipment and technology upgrades were $3.1 million.
Depreciation amounted to $5.4 million. There were outstanding commitments of $20.9 million at the time of the audit.
Longterm obligations amount to outstanding debt of $159 million, an increase of $1.1 million. The lease purchase for energy efficiency upgrades were $7 million. Principal payments of $5.9 million were made during 2021.
Debt service payments for 2022 is expected to be $12.4 million ($6.9 million for principal and$5.5 million for interest).
The management letter mentions school bookkeepers and lack of segregation of duties as areas that could be improved.