Ken Meadows of Greene, Finney, Cauley Accounting, reported that the annual audit “went very well” and that District One received an “Unmodified Opinion”, which is “the best you can get.”
The General Fund Balance saw an increase of $4.4 million to $29.9 million.
There is a nonspendable fund balance of $0.4 million for inventory and prepaids and $0.7 million appropriated for 2024 budgeted expenditures.
The unassigned fund balance is $28.8 million. According to Meadows, the unassigned fund balance is 31 percent of the District’s actual 2023 expenditures and reflects two to three months of expenditures. The GFOA recommends a minimum of two months (or 16.7 percent) of the budget be in the fund balance. “You have a healthy fund balance in the general fund,” Meadows said.
The funding is important for cash flow and savings for emergencies or future spending if needed.
General Fund Revenues were $89.6 million. $27.9 million came from property taxes and $61 million from State Government funding.
Meadows said revenues increased by $3.4 million from 2022 with a $1.7 million increase in state sources, $0.7 million increase in property taxes due to increase in assessed property values and $1 million increase in investment earnings due to higher interest rates.
The revenue was $1.8 million over budgeted, mainly due to the increase in state funding.
General Fund Expenditures
General Fund Expenditures saw an increase of $7.1 million over 2022 and totaled $94.3 million. Of that, $59.8 million was for instruction, $33 million in support services and $1.5 million in other expenditures.
$7 million of the increase was due to increase in salaries and benefits for teachers and $3.5 millionincrease in salaries and benefits for support services. The District had a $2.6 million decrease in capital outlay and $.8 million decrease in debt service from 2022. Expenditures were $2.3 million under budget.
Special Funds and EIA Funds had a $1.5 million fund balance for student activity funds with a carryover at year end of $.5 million. Carryover the prior year was $1.5 million. The Food Service Fund had a fund balance of $3.1 million, a decrease of $.5 million from the prior year.
Capital Assets increased $1.7 million from the prior year and totaled $246.6 million. The increases included current year additions of $10.1 million on constructon projects at Palmetto High School, Powdersville Middle School, Technology Support and Transportation Office, various other construction projects, building additions and building and land improvements. There was also equipment and technology purchases of $1.4 million. Depreciation expense amounted to $9.6 million.
The Capital Projects Fund had a fund balance of $39.6 million. The unspent Local Option Sales Tax showed revenues of $17 million. The fund has $20.5 million in unspent bond proceeds and $2 million in unspent General Fund transfers. Outstanding commitments totaled $5.6 million.
Long Term Obligations – total outstanding debt saw a $12.3 million increase to $174.3 million. The District issued a $24.4 million General Obligation refunding and improvement bond in September 2022. Principal payments on the GO Bond are $8.2 million. Refunding payments are $4.7 million.
Debt service payments for 2024 are expected to be $15 million ($9.1 million for principal and $5.9 million for interest.)
The Debt Service Fund has a $5.8 million fund balance and $2.5 million in Local Option Sales Tax revenues.
According to Meadows, there were no findings, significant deficiencies or material weaknesses. A single audit was done on Title 1 and ESSER and no issues were noted.
The management letter does point out a lack of segregation of duties regarding school bookkeepers and comments on improvements to the year-end close process regarding expense recognition and balancing of interfund accounts.
In summary, Meadows stated District One receive an “Unmodified opinion” from Greene, Finney, Cauley on their financial statements and the District is in “Very good financial condition.”
