2015-10-04 / News

Montrose school audit goes well

By Jeanne Marcello
Staff Reporter

MONTROSE – The Montrose Community Schools Board of Education listened as CPA Kim Lindsay of Lewis & Knopf presented an overview of the 2014-2015 school audit during the Sept. 22 board meeting.

Montrose Schools received a clean or unmodified opinion for the 2014-2015 audit. “This is the highest level of assurance possible for the district’ financial statements,” he said.

Lindsay explained that this year, all schools are required to report their portion of the Michigan Public School Employees Retirement System (MSPERS) unfunded pension liability. Montrose’s share is $15.6 million; placing Montrose in a deficit position of $15.6 million. He explained that the pension has no effect on the general fund. The difference is the way it’s now reported as part of the district’s financial position. Presently, the state is subsidizing the retirement system, he added.

Lindsay commended the school district’s financial management saying, “[you’ve] brought the fund equity to the best I’ve seen; 13.73 percent. That’s great news for you as a district. I’m happy to see you guys made huge progress, painful progress.”

He reported that Montrose Schools received $13,016,640 in revenues, and had $12,390,060 in expenditures. The general fund ending fund balance was reported as $1,701,522.

Lindsay noted that 86 percent of the school district’s revenue comes from the state; six percent from the federal government; just seven percent is local funding. One percent is from other sources. He also pointed out that 60 percent of the district’s expenditures are going directly into the classrooms, such as teachers and their benefits, as well as supplied. Thirty-eight percent goes toward support staff, including administration, custodial, athletics and busing. On the whole, 79 cents of every dollar goes to pay people; providing salaries and benefits.

Lindsay said the final audit report is due Nov. 1. Montrose Finance Director Lynne Clark had the district financials ready early. However, the district has to wait for the Michigan attorney general’s approval before turning the audit in to the state.

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