Audit of Waynesboro Schools at end of last year indicates revenue was down

March 03, 2013|By JENNIFER FITCH |

WAYNESBORO, Pa. — An audit presented publicly last week by two certified public accountants laid out the Waynesboro Area School District’s financial picture at the end of 2011-12.

Smith Elliott Kearns & Co. LLC shared with the Waynesboro Area School Board its audit and a PowerPoint presentation with summarized results.

General fund revenues, which totaled $47.8 million, were down 5 percent from the previous year, due to expiring stimulus funds and the way the state allocated those monies, said Kevin Stouffer, a certified public accountant.

Expenditures from the general fund totaled $44.8 million.

The Waynesboro Area School District had total liabilities of $54.4 million and total assets of $26.4 million, Stouffer said in his presentation.

Although the district held $380,000 in capital reserve funds, it ended the year $2.8 million in the red for capital projects, Stouffer said. That amount could be misleading because of the timing of bonds issued for energy-savings projects, he said.

The cafeteria account experienced a loss for the third year, according to Stouffer, who was joined by colleague Scot Orndorff.

For all funds, the district ended the year with $500,000 more in expenditures than revenues.

The general fund’s fund balance, which is similar to savings, fluctuated again. It stood at $4.5 million in 2009-10, $5.9 million in 2010-11, and $5.4 million for 2011-12.

The district has bonds and loans payable totaling $42 million.

Among concerns noted in the audit were reports not completed by the district in a timely manner. Those included quarterly cash-on-hand reports not submitted to the Pennsylvania Department of Education and inconsistencies in the 2010-11 Annual Financial Report that led to the state requiring amendments.

That led the auditors to develop two findings related to “material weaknesses in internal control,” Stouffer said.

The auditors have already talked to the district business administrator’s office about making the necessary changes to avoid those findings, he said.

The school board voted unanimously to accept the audit Tuesday.

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