Newton Independent
Newton Community School District expenditures in the most recently completed fiscal year exceeded the certified budget amount by more than $300,000, the audit report showed.
The audit report for the year ending June 30, 2012 completed by Newton CPA firm Nolte, Cornman & Johnson and posted this week on the state auditor's site shows that the district exceeded the certified amounts in the support services and other expenditure functional areas.
The report shows the expenditures in both area exceeded certified budgeted amounts by a total of $323,861.
"The certified budget should have been amended in accordance with Chapter 24.9 of the Code of Iowa before expenditures were allowed to exceed the budget," the audit report states.
In response, school district representatives said that future budgets will be amended prior to expenditures exceeding the budget amounts, with the report also showing that the district did amend their budget one time during the past fiscal year to meet the Code's requirement.
The district's response states that the "budget over expenditure was due to the District calling its revenue bonds prior to their maturity date."
That move, however, allowed the district to decrease its total outstanding long-term obligations by nearly 33 percent between fiscal years 2011 and 2012. At the end of the 2012 fiscal year, outstanding debt in the district was down from $11.8 million to $7.9 million, including the elimination of all revenue bond debt.
The audit report also noted what it deemed questionable disbursements. The Newton firm found that the district purchased gift cards from the General Fund that might not meet the requirements of a legitimate public purpose.
"The invoice support included an approved purchase order however the purchase does not appear to be appropriate as the gift cards do not appear to provide the district with adequate support to determine the final purchases and determine if the amounts are allowable with public funds," the audit report states.
In response, the Newton district said it will cease the purchase of gift cards and will use a district credit car for the purpose of buying eBooks and Apps for iPads or other electronic devices "as directed by the Iowa Department of Education."
The auditors also suggested that the school district change its policy on purchase orders so that all disbursements are approved by the appropriate administrator prior to the ordering of supplies takes place. The district responded by saying it will discontinue the use of purchase orders for staff seeking remimbursement for previous purchases and will develop a reimbursement request form.
In an addendum to the audit, school district officials noted that general fund revenues increased slightly to $29.2 miilon at the end of the 2012 fiscal year and general fund expenditures were also only up slight to $28.2 million. The general fund's fund balance grew more than $400,000 to $2.9 million and its solvency ratio, which is designed to be between 5 and 10 percent, exceeded that rate at 10.59 percent.
Interest earnings in the General Fund decreased for a fifth consecutive year, from $109,000 in 2008 to $717 at the end of the 2012 fiscal year.
You can read the full report here.
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