LORAIN CITY SCHOOLS IN $$ TROUBLE
Lorain - Auditor of State Mary Taylor today released the fiscal year 2007 audit for Lorain City School District. The audit reports that many of the district funds are operating with a cash deficit totaling more than $2.4 million.
“School districts must keep a watchful eye on their fund balances because every dollar counts when it comes to educating our children,” said Taylor. “It’s important that schools operate in a financially stable manner to ensure resources are available to continue to provide a quality education for their students.”
The audit shows that the following funds are operating with cash deficits totaling $2,421,942.
Alternative Education, $12,079
District Managed Act, $319,543
General fund, $968,657
JROTC, $226,219
Lunchroom, $102,810
MIS, $26,050
Misc. Federal Grants, $697,495
Misc. State Grants, $67,669
Title IV, $1,420
Additionally, the district did not set aside funds to pay for utilities, excess costs and legal fees that accumulated in fiscal year 2007. Due to this oversight, the funds will not be paid until fiscal year 2008.
The audit shows that the school district’s accounts payable did not list $721,713 in funds owed. It also notes that funds received by other government agencies were overstated by $726,800. However, the appropriate adjustments were made during the course of the audit and their financial statements now reflect the accurate amount.
Lorain City School District was placed in fiscal caution on June 23, 2007 because of potential fund balance deficits.
To read the Audit in full (pdf): CLICK HERE
“School districts must keep a watchful eye on their fund balances because every dollar counts when it comes to educating our children,” said Taylor. “It’s important that schools operate in a financially stable manner to ensure resources are available to continue to provide a quality education for their students.”
The audit shows that the following funds are operating with cash deficits totaling $2,421,942.
Alternative Education, $12,079
District Managed Act, $319,543
General fund, $968,657
JROTC, $226,219
Lunchroom, $102,810
MIS, $26,050
Misc. Federal Grants, $697,495
Misc. State Grants, $67,669
Title IV, $1,420
Additionally, the district did not set aside funds to pay for utilities, excess costs and legal fees that accumulated in fiscal year 2007. Due to this oversight, the funds will not be paid until fiscal year 2008.
The audit shows that the school district’s accounts payable did not list $721,713 in funds owed. It also notes that funds received by other government agencies were overstated by $726,800. However, the appropriate adjustments were made during the course of the audit and their financial statements now reflect the accurate amount.
Lorain City School District was placed in fiscal caution on June 23, 2007 because of potential fund balance deficits.
To read the Audit in full (pdf): CLICK HERE
posted by TMC NEWS at 2:55 PM
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