Audit finds significant improvement in Cape Girardeau School District's budgeting

An audit of Cape Girardeau School District finances show the district struggled with bookkeeping again but has made significant improvement.

For a second year, the district broke state budget law by spending more than was budgeted in two funds.

There were no material weaknesses, significant deficiencies or noncompliance material reported, however, and the auditor noted that this year's report was "much easier and much more pleasant to report" than last year's, where serious bookkeeping problems were noted.

"Even though there is the same end result, I believe the reasons for needing the recommendation are much more explainable," said the lead auditor, Jeff Stroder, of Beussink, Hey, Roe, Seabaugh & Stroder LLC.

The audit reports a June 2007 bond interest payment was not recorded, which caused the district to be off with June 2008 estimates. The district spent $107,420 more in its general fund and $149,590 more in its debt service fund than authorized. Stroder said expenditures should have been kept within limits or budget amendments should have been made.

The problem is common, he said; he finds it in about 80 percent of governmental bodies he audits.

The June 2007 recording problem dates back to a former director of finance. Brenda McCowan was placed on administrative leave and Misty Clifton was hired last fall after McCowan presented a budget board members said was riddled with errors and a tax levy calculation mistake resulted in the district receiving $700,000 less than it could have.

An audit from the same year also showed extensive problems, including interfund transfers totaling $15.9 million that had not been recorded, expenditures exceeding budgetary limits and, in two cases, deficit budgeting. Then-superintendent Dr. David Scala was placed on administrative leave shortly after.

Board members have expressed confidence in Clifton, who has made changes to make budgeting procedures more transparent and to keep the board abreast on the district's finances. Monthly reports to board members are much more detailed and easier to read, members have said. Clifton also worked to accelerate the budgeting process to have a budget in place before the start of the school year. A main focus of her new budget was to clean up budgeting codes.

Referring to ensuring a similar audit issue does not recur, Stroder said that with the new district procedures in place, the district's finances are "something you'll all be able to keep a close eye on."

lbavolek@semissourian.com

388-3627