LCS ends fiscal year with $1.1 million general fund balance

The Le Mars Community School District ended the 2007-08 school year with a general fund balance of $1,123,037.

That fund is down $731,756 from the year's beginning balance of $1,854,793.

Jeff Peters of Williams and Company presented the district's annual audit report to the board of education Monday evening.

That balance, Peters told the board, indicates the district would be able to cover 23 days of expenditures.

"As we've talked in the past, I try to equate that (ending balance) to the number of days of expenditures," Peters said. "Again if you think of your revenue stream and when your primary revenues begin in the middle of September, 23 days is probably pretty short."

Last year's audit showed a 37 day expenditure balance on hand.

Peters said 90 to 120 days is the preferred amount to have as a balance.

Peters also said he felt none of the information in the audit was a surprise to the board.

"You've seen the fund balance and were aware of where it was going and the challenges that you've got," Peters said. "You are fully aware and working hard to manage that process."

Other fund balances as of June 30, 2008, were:

* Management Levy $103,845;

* PPEL Fund, $469,651;

* Capital Project LOST, $1,682,795;

* Debt Service, $519;

* Other Governmental Funds $407,823.

The Capital Project fund balance, which includes income from the School Infrastructure Local Option Sales Tax (SILO) was down $245,293 from the beginning of the year.

Peters told board members that decrease reflected the construction of the middle school/high school addition and the acquisition of the Education Service Center building.

"That fund still has a pretty good fund balance," Peters said. "You did spend all your current collections."

The Debt Service Fund balance decreased from $17,306 in fiscal year 2007 to $159 in fiscal year 2008, according to the audit report. This decrease is due to final payment for the 2002 note obligation.

The district's nutrition fund showed a loss of $29,331 for the fiscal year ending June 30, 2008.

"The decrease was largely due to the increased cost of food and supplies," according to the audit report.

While it's not a big piece of the puzzle, Peters said the cost of meals and cost of services was something to look at. The board increased the meal ticket charges for the beginning of the 2008-09 school year.

School board president Mark Stelzer said he receives questions on what the district actually spends per pupil, but Peters said that iinformation was not in this audit.

"This type of audit is what 95 to 98 percent of the school districts present, the required financial statement presentation," Peters said.

The district could expand that into a comprehensive annual financial report, which would include a 10-year trend financial information, with one of those pieces being the cost per student.

"That's not a very simple process to pull it together," Peters said. He said he was aware of only one school in northwest Iowa which prepares such an audit.

"Did you find any misuse of the SILO funds or general fund dollars?" Superintendent Dr. Todd Wendt asked Peters.

"No I did not. There were no compliance findings that way," Peters replied.

"Not that it makes it more palatable, but there are a lot of school districts in the same boat," Peters said of the district's financial picture.

"The state funding formula obviously makes it a challenge. And when you have fluctuation in enrollment, and we've been pretty fortunate until the last couple of years, when you start to have decreases in enrollment, it makes it just that much tougher to hold it together," he said.

Board members thanked Peters for his presentation. Later in the meeting, the board unanimously voted to accept the audit as presented.