School audit report 11.4.09

Written by David Green.

By DAVID GREEN

The Morenci Board of Education received a positive report from its past-year audit, but the reality of the current year came through later in the evening.

Auditor Phillip Rubley told board members the district was in a good position for the current economic times, but he cautioned that the situation could change rapidly.

The board has already seen some of those changes through the combination of lower enrollment and cuts in state funding. That led to the decision to lay off 2.5 teaching positions, one paraprofessional and two full-time secretaries. The cuts will take effect for the second trimester starting after the Thanksgiving break.

Additional cuts could be announced later, based on the final outcome of state funding decisions.

Superintendent of schools Kyle Griffith told audience members that the layoff decisions were very difficult for the board.

He said he doesn’t blame people for being angry about the cuts, but he urged people to channel their anger toward Lansing where legislators must work to make school funding right.

Rubley’s review of the audit showed an excess of $283,000 in revenue over spending before transfers to other funds, mainly athletics.

After transfers, the district’s fund equity stood at $811,952, as of June 30, 2009.

Rubley explained that he is also required to examine finances from a business model perspective of accounting. This gives a truer picture of equity, he said, since it shows total depreciation and debt obligations.

This approach places the fund equity at $629,000. The equity went down by $203,000 from the previous year, but Rubley said he believes it’s still in a good position for a district of this size.

“I think this is a very good report for the times,” he said. “I think you’re in a pretty good financial position, but you need to be extremely cautious.”

Additional state funding cuts could deliver a loss of $230,000 to $250,000 very quickly, he said.

Rubley said the food service account is in very good shape, with an equity of $147,000. The $225,000 transfer to the athletic fund was $20,000 less than budgeted.

Rubley gave the district the top rating for its accounting practices.

“Your system is excellent and probably one of the cleanest we audit,” Rubley said. “Your accounting records are very thorough and precise.”

Rubley said it’s rare to present an audit without some deficiencies, but he had none to discuss.

“You should be commended for that,” he said.

  • Front.cross
    HUDSON RUNNER Jacob Morgan looks toward the top of the hill with dismay during the tough finish at Harrison Lake State Park. Fayette runner Jacob Garrow focuses on the summit, also, during the Eagle Invitational cross country run Saturday morning. Continuing rain and drizzle made the course even more challenging. Results of the race are in this week’s Observer.
  • Front.bear
    HOLDEN HUTCHISON gives a hug to a black bear cub—the product of a taxidermist’s skills—at the Michigan DNR’s Great Youth Jamboree. The event on Sunday marked the fourth year of the Jamboree. Additional photos are on page 12.
  • Front.crossing
    Crossing over—Jim Heiney was given a U.S. flag to carry by George Vereecke (behind Jim in the hat), turning him into the leader of the parade. Bridge Walk participants cross over Bean Creek while, in the background, members of the Morenci Legion Riders cross the main traffic bridge on East Street South. Additional photos appear on the back page of this week’s Observer.
  • Front.hose Testing
    HOSE safety—The FireCatt hose testing company from Troy put Morenci Fire Department hose to the test Monday morning when Mill Street was closed to traffic. The company also checks nozzles and ladders for wear in an effort to keep fire fighters safe while on calls.
  • Front.starting
    BIKE-A-THON—Children in Morenci’s Summer Recreation Program brought their bikes last Tuesday to participate in a bike-a-thon. Riders await the start of the event at the elementary school before being led on a course through town by organizer Leonie Leahy.
  • Front.train
    WRECKAGE—Morenci Fire Department member Taylor Schisler walks past the smoking wreckage of a semi-truck tractor on the north side of the Norfolk and Southern Railroad tracks on Ranger Highway. The truck trailer was on the south side of the tracks

Weekly newspaper serving SE Michigan and NW Ohio - State Line Observer ©2006-2016