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YELLOW SHEET Office of the State Auditor of Missouri |
March 13, 2001
Report No. 2001-19
Some problems were discovered as a result of an audit conducted by our office in response to the request of petitioners from the New Bloomfield R-III School District, Callaway County, Missouri.
The
New Bloomfield R-III School District has experienced significant growth in the
revenues and expenditures of its operating funds during the last five
years.� Despite the growth in revenues,
the district has spent more than it received during the last two years, and as
a result, has experienced a significant decline in the financial condition of
its operating funds.� The district�s
operating reserves dropped from 29 percent to 5 percent of annual expenditures
over the past two years.� In addition,
the district�s current budget projects an operating funds deficit of
approximately $200,000 at� June 30,
2001.�� The School Board needs to review
its current budget and take steps to balance the budget.� In addition, the School Board needs to
develop a long-range plan to improve the financial condition of the district.
During
the five years ended June 30, 2000, the district repeatedly overspent budgeted
expenditures in various funds.�� In
addition, the budget document was not presented to and approved by the school
board in a timely manner for the year ended June 30, 2000.� The board approved this budget on September
1, 1999.� The district�s budgeting
policy requires that the budget be adopted by June 30.
In
light of the district�s declining financial position, it is imperative for the
district to prepare accurate budget estimates on a timely basis and to closely
monitor� actual revenues and
expenditures.� The board should refrain
from approving expenditures in excess of the budgeted amounts, and if
necessary, adopt budget amendments in accordance with state law.
The
district�s 2000 debt service tax levy was set at $1.01 per $100 assess
valuation while it appears the levy should have been set at $.51 per $100
assessed valuation.� The district will
over collect approximately $138,000 in debt service revenues.� District officials indicated the extra
revenues generated by the levy will be used for the early retirement of
callable bonds, which reduces bond interest expenditures.� The district should ensure future debt
service levies are properly calculated.�
The
school district does not always solicit bids or retain bid documentation for
major purchases.� The district�s bidding
policy only addresses construction projects and insurance.� The�
district should develop a formal bid policy for all major purchases.
The
purpose of some meal reimbursements to the former superintendent was not always
clearly documented, and expense reimbursements to the former superintendent and
the former administrative assistant were not always approved by a
supervisor.� Purchase orders were not
prepared in accordance with district policy for several purchases.� The district did not have adequate policies
to ensure professional development resources were spent in accordance with
state guidelines.
A
husband recorded some of his time worked on his wife�s timesheet, to allow her
to qualify for benefits including health insurance.� The district incurred 1,741 hours of overtime in the 1999-2000
school year, but doesn�t have a policy to govern the approval of overtime.� Some compensation payments made to employees
were not reported on Forms W-2, and the district did not issue any Forms
1099-Miscellaneous for 1999.
The
district does not have a current facility usage plan or a written contract for
the use of the machine shop at the home of the individual who maintains the
buses.
