Auditor Says Saline School District's Books are Clean

Despite facing a troubling financial picture and eliminating the district’s top financial post, Saline Area Schools’ financial books received a clean review from auditors Plante & Moran.

The firm audited financial statements for the 2010-11 fiscal year, which ended June 30, and rendered an unqualified opinion.

“That’s the highest level of assurance we can render on a financial statement,” said Jeffery Dolowy, of Plante & Moran.

In looking at the districts’ $167 million in assets, $147 million in liabilities and $67 million in expenditures, the audit found only one statement that stood out. Dolowy said the district recorded about $240,000 in federal revenue that needed to come in 60 days before the end of the fiscal year to be counted in the audit. The money did not arrive in time.

“We had to pull it out of 2011 and put it in 2012. That was the major finding we had this year,” Dolowy said, noting that it was impressive considering the district lost former assistant superintendent Tom Wall, who was in charge of finances, during restructuring in the summer.

Interim finance director Janice Warner handled the audit for the district

“Tom Wall was a great resource for you. I thought Janice and her team came through with flying colors,” Dolowy said. “We didn’t miss a beat through the process. The district’s books and records are in great shape.”

Having an unqualified audit helps keep the cost of borrowing lower.

Superintendent Scot Graden did note that Wall was of great assistance in the audit process.

The report showed the district taking in $50,866,745 and spending $51,247,713, for a deficit of $390,000.

During the fiscal year, the district closed Houghton Elementary and placed those students in other schools, closed and sold Union School, eliminated counseling and administrative positions, retired more staff than expected. At the same time, health care costs increased and the rate at which the district pays for employee retirement increased.

The district is looking at grim numbers for 2012-13. Plante and Moran estimated

The fiscal year ending June 30, 2011, was the final year of federal stabilization funding. Districts experienced a foundation allowance reduction of $470 per pupil.

Per-pupil finding for kindergarten students will be reduced if a district does not provide a full-day program. Retirement costs continue to rise.

The district is operating this year with a $1.3 million structural deficit. Plante & Moran estimated that if nothing changed, the district would be looking at a $3.8 million deficit for 2012-13. That would wipe out what’s left of the fund balance, which should be at $1.9 million on July 1, 2011. In such a situation, that state could appoint an emergency financial manager to take control of the district.