Auditor Ken Meadows of Greene, Finney and Cauley accounting firm told the Anderson School District One Board last week that the District is in very good condition.
Meadows said that the District received an “unmodified opinion” which is “the best you can receive”.
According to Meadows, the annual audit showed that the General Fund Balance for District One increased by $5.3 million to $35.2 million. Of that, $2 million is appropriated for 2025 budget expenditures and $4.4 million assigned for capital projects.
The Unassigned Fund Balance reserve is $28.5 million, Meadows said. That amounts to 27 percent of actual 2024 expenditures and 25 percent of 2025 budgeted expenditures. The GFOA recommends a minimum of 16.7 percent or two months be kept in reserve.
General Fund Revenues for 2024 were $99.5 million, an increase of $9.8 million from 2023.
Revenue from State sources saw an increase of $5.8 million. There was an increase in property taxes revenue of $1.8 million and the District had an increase in investment earning of $1.3 million. The increase in revenues resulted in the District having $4.4 million, or 5 percent, over what was budgeted. Half of that, $2.2 million was more than budgeted from state sources and $1.5 million was over what was budgeted to come from other local revenues.
General Fund Expenses for 2024 were $105.6 million.
There was expensed of $66.8 million for instruction; $37.6 million for support services and $1.2 million for other expenditures.
There was an increase of $11.3 million due to increase in instruction salaries and benefits ($7 million) and increase in support services salaries and benefits of $4.6 million.
The District Student Activity Fund had a fund balance of $1.5 million. There was a carryover of $600,000 at the end of the year, compared to $500,000 carryover the prior year, Meadows said.
The Food Service Fund had a fund balance of $2.3 million, a decrease of $700,000 from the prior year. Meadows said higher wages, food costs and equipment purchases came out of the fund.
Capital Assets were $250.6 million, an increase of $4 million from the prior year.
Capital assets included current year additions of $13.5 million for construction projects at Powdersville High, Powdersville Middle and the new Oak Hill Elementary school. There was also equipment and technology purchases of $1.8 million.
The Capital Projects Fund had a $37.6 million fund balance. Included were $24 million unspent from the Local Option Sales Tax (LOST) revenues; $11.3 million in unpent bond proceeds and $2 million unspent General Fund transfers.
Outstanding commitments as of June 20, 2024 amounted to $44.2 million.
Long-term outstanding debt decreased $10.3 million to $164 million. Principal payments for 2024 amounted to $9.1 million.
Debt service for 2025 is expected to be $15.2 million ($9.7 million for principal and $5.5 million for interest). The Debt Service Fund includes a $5.1 million fund balance and $2.6 million in LOST revenues.
Overall, the District has total assets of $344 million and total liabilities of $378 million.
Assets include cash and investments $84.5 million; Receivables and other assets $8.9 million and Capital assts, net of accumulated depreciation, of $250.6 million.
Liabilities include accounts payable and other expenses of $11 million, unearned revenue of $800,000; long term obligations $165 million; net pension accounts for State plans $101.7 million and net OPEB accounts for State plans of $97.9 million resulting in a net position of negative $32.3 million.
A required single audit was done on IDEA and ESSER, Meadows said. It did show a material weakness related to procurement in which two education materials purchases should have had three quotes but didn’t. Meadows said in prior years educational materials were subject to local procurement exemptions but the State clarified that the exemptions are no longer allowed for federal funds. Several school districts had the same problem, he said. Meadows said he didn’t expect it to be a problem in the future.
Overall, Meadows said the District is in “very good financial condition”.
