End of year report shows school
School Treasurer Nancy White characterized Morgan County Schools' finances as "steady" during her presentation of the year-end financial statement at the September 18 school board meeting.
White walked board members through her 16-page report, which described both the county schools' assets and financial obligations for the last fiscal year.
White highlighted some general trends in the document. She noted that the school system's net assets exceeded their liabilities by $16.4 million at the close of the fiscal year on June 30.
The school system ended the fiscal year with an unreserved fund balance of $992,900, or 5% of its general fund. White said the state recommends keeping a balance of between three and six percent of a county's school budget.
Revenue & spending
Nearly $24 million in 2006-2007 revenue came from six major sources.
Property taxes provided 37% of the school's funds, unrestricted state aid accounted for 40% of revenue, and the remaining 23% came from investment
earnings (1%), charges for services (5%), operating grants and contributions (14%) and capital grants and contributions (3%).
White also tabulated school spending by function.
Of the school system's $23.4 million in expenses, 56% goes to instruction. Support services like staff, administration and transportation account for 38% of the school system's spending. Food services cost 6% of the school budget, and donations to community groups take up .6% of total spending.
Three distinct accounts
The school board maintains three funds: the General Fund, Special Revenue Fund and the Capital Projects Fund.
The General Fund is the school system's operating account, funded primarily by local tax revenue and state aid. Money in this fund is unrestricted, and can be spent on any expenses for operating the school system. This fund ended the year with a balance of $1,486,802.
The Special Revenue Fund is an account in which money is designated for specific uses under state and federal grant programs. Expenditures include things like federal special education programs, remedial instruction and bus replacement. This fund had an ending balance of $144,521.
The Capital Projects Fund is the account used to pay for building improvements and construction. This fund ended the year with a balance of $867,982.
Total fund balances of $2.499 million this year fell $1.2 million short of last year's ending balances, according to White.
$22.4 million in total assets
The financial report tallied the assets of Morgan County Schools, including buildings and equipment, at $22,452,464.
White said school fixed assets are valued at historical costs. That means a building's value is simply what it cost to build that structure. A valuation company inventoried the school system's assets in 2004, said White.
The school system's total liabilities last fiscal year were $6,091,257. These costs include both short-term expenses like supplies and salaries, plus long-term commitments like construction bonds and teacher retirement obligations.
Of the school system's net assets, 96% were items like school buildings, furniture, vehicles and equipment and debt related to the acquisition of those items.
A full financial report for the Morgan County Board of Education is printed elsewhere in this week's paper.