, Corbin, KY

January 15, 2013

Williamsburg Ind. Schools receive clean audit

Advised to watch accounts more closely

The Times-Tribune

CORBIN — By John L. Ross, Staff Writer

Williamsburg Independent Schools got its audit of last fiscal year 2012, and while the audit report came out clean, Barry D. Daulton, an independent auditor, advised the Williamsburg School District Board of Education members Tuesday they needed to watch the school accounts more closely.

“You need to see the numbers every month,” Daulton told board members. “There is a drop in the fund balance.”

According to the report, the fund balance at the end of fiscal year 2011 showed an actual amount of $201,381.

Fiscal year 2012 showed an actual balance of $54,172.

Daulton said he didn’t want to say it was a “significant” drop.

“You are not the only (school),” he said. “You do a good job here.”

He pointed out that state and federal mandates, combined with funding cuts, hold much of the blame.

“These are mass problems (across the country),” Daulton said, again stressing the board “pay close attention” to the funds.

Board member Allan Steely mentioned other expenditures straining the school budget, including the leaking roof over the gymnasium and security.

Superintendent Denny Byrd said the school received approximately $300,000 of stimulus money in 2008.

“Well, the state cut the same amount,” he said. “And we’ve made it up for four years.”

Other unexpected expenses also arose from jury duty — board members learned five teachers currently serve jury duty. This requires substitute teachers to take over the classrooms.

Adding to the financial strain is the new $5 million addition, which added necessary tools and security for the students.

Some of the monies reviewed by Daulton include federal funding provided to the school system.

According to the auditor’s findings, the U.S. departments of Agriculture and Education provided $1.24 million in federal financial assistance. These monies cover needs with child nutrition and special education.

Other financial highlights in the report show the general revenues totaled $5.7 million — 79 percent of all revenues. These “consist primarily of tax assessments and state funding allocations,” the report states.

Program-specific revenues totaled $1.16 million — which accounts for the remaining revenues. This includes charges for services, sales, grants, contributions and others.

Of the total general fund revenue, the report states approximately $1.07 million was received through local taxation and investment income.

Also noted was a decrease of $205,000 in total governmental assets which comes primarily from depreciation expense.

Three of the fund accounts operated under a deficit as of June 2012. The general fund showed a $231,000 deficit. Construction funds showed a $2,489,931 deficit, and special revenues were $55,164 in the red.

All totals were accumulated by June 30, 2012.

A summary of Daulton’s audit results states the report, “expresses an unqualified opinion on the financial statements of Williamsburg Independent School District.”

Daulton explained that was not a bad thing.

“An unqualified opinion is the highest you can get,” he said.

The same was stated in the audit results about compliance with federal award programs. Also mentioned was the school district had nothing in its financial statements that were questionable nor required reporting to the state.

Daulton stressed many times that board members must watch the accounts regularly. Board members agreed to scrutinize monies on a monthly basis. After this discussion, board members were handed a draft budget for the next year.

Three budgets usually get prepared during the budgetary process. The first is the draft, due in January, followed by the “tentative” budget in May, with an actual budget finalized over the summer.

Some discussion concerning budgeting prior to knowing dollar amounts came up, but board members learned the budgetary process was mandated.

The next meeting of the board is scheduled for 6 p.m. Feb. 12.