The Crookston School Board on Monday is slated to approve this year’s financial audit of the 2008-09 fiscal year, conducted by Drees, Riskey & Vallager, Ltd., which Kim Durbin presented to board members at a working session this week.
Board members have long been well aware that continued deficit spending is shrinking the district’s fund balance, and the audit’s findings confirmed that. Durbin said fund balances in the district decreased in 2008-09 by $996,530. Other major findings include an increase in net assets of $368,537 and a decrease in long-term debt of $1,822,619.
Gilman said he believes the audit went well and he’s pleased with the district’s overall accounting practices, which were found in the audit to be in compliance across the board. But he said the audit proves that the district is spending more than it’s taking in, and has been for some time.
“What I take from the audit is that we have confirmed a serious problem with deficit spending,” he said. “It will be a tough spring with all the potential reductions.”
Gilman hopes to get the 2009-10 audit completed earlier next year so board members and citizens of the district have as much financial information as possible as the November 2010 election nears, when the board is planning to pursue an extention and possibly an increase of the current operating levy in place.
The audit also cited a lack of sufficient segregation of duties in the business office, which, according to the audit report, reduces the level of internal controls over financial reporting.
Gilman said the district is aware of the situation, and that simply being aware might help alleviate some of the apparent issues that concerned the auditors. The district will continue to monitor the situation, he said, but the easiest remedy to segregate duties is to hire more staff in the business office. Given the district’s budget situation, Gilman said that’s not going to happen.
