USC School District increases revenue
Despite the state withholding funding from United South Central School District, an audit shows the district is pretty sound financially.
Greg Larson of Hill, Larson, Walth & Benda covered some of the highlights of a 79-page report at the School Board’s meeting Tuesday night.
“As a whole the district had a good year. It looks very good, despite the state holding back aid,” says Larson.
In the audit for the fiscal year ending June 30, 2011, revenue increased 1.43 percent from $8.616 million to $8.739 million.
There also was good news on the expense side, going from $7.875 million to $7.747 million.
“Salaries were kept pretty flat. That means you had to trim somewhere,” says Larson.
Superintendent Jerry Jensen was pleased to hear the district is financially sound, in light of the funding challenges districts statewide are facing.
“Our unassigned general fund balance did go up and that’s a good thing because we dropped 30 students. That’s a good chunk of money and affects our cash flow,” he says.
Reserves increased from $1.867 million to $2.3 million.
Jensen says it’s enough to cover three months of operational costs.
Larson says that fund balances and cash balances do not match. That’s because fund balance includes money the state owes the district.
Jodell Timm of the district’s business office says the audit attributes the good financial report to three factors:
• local revenue was better than projected;
• fuel expense for the facility came in lower than budgeted;
• and, other expenses overall were lower than expected.
Larson also went over some recommendations the board should consider, such as closing student accounts that are seldom used and implementing a policy and controls for use of the district’s credit card by school personnel.
In other financial-related news, board member Kari Jacobson gave a brief update on contract negotiations with the teachers’ union.
“We have some language items to work out. We’re moving forward,” she says.
The board also approved a one-year contract with Waste Management for garbage disposal.