Report No. 2010-109
September 2010
Complete Audit Report

Findings in the audit of the Kansas City 33 School District, Financial Condition and Projections

Financial Position
Significant decreases in state funding and a failure to significantly reduce expenditures have led to the Kansas City 33 School District's current financial position. Expenditures exceeded revenues (excluding other financing sources) in the operating funds for the years ended June 30, 2008, 2009, and 2010, resulting in the reduction of district undesignated reserves. Several factors have contributed to the decline in the district's financial position, including but not limited to, decreased funding from the state, the declining student population, declining property valuations, and increased enrollment in charter schools in the Kansas City area.

School closings were proposed by the district's administration to the Board every year since June 2006 with minimal action taken, all while the district's enrollment continued to decline. On March 10, 2010, the Board approved a plan to close, mothball, or reconstitute over 50 percent of district facilities. This plan was updated May 26, 2010, with the district planning to close or reconstitute 29 of its 61 facilities, including 26 schools. To further reduce the district's budgeted expenditures, district administration proposed eliminating approximately 900 full-time equivalent positions. Finally, district administration proposed cancelling and/or renegotiating various district contracts to reduce the district's expenditures.

Subsequent Report
The State Auditor's office is continuing to audit the operations of the district and any findings and recommendations will be included in a subsequent report.

Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov