CENTER — The Center School District swore in a new board director and approved the fiscal year 2008-09 audit at its Jan. 12 regular board meeting.

 At the beginning of the meeting, Bryan Arellano, a parent of two students attending Center Schools was sworn in as the new director at large, filling a seat left open following the November election.

 Shortly afterward, Karla Wilschau and Kimberly Temple presented the 2008-09 audit to the board directors.  According to the audit, the district’s total net assets as of June 30, 2008 were $4,207,912. Total net assets as of June 30, 2009 were $4,421,683, an increase of $213,771 due in large part to the district’s reduction of administrative and teaching staff and the combination of several key positions during the 2008-09 school year.

 The audit also showed that total General Fund revenues increased from $4,725,017 to $4,755,741, an increase of $30,724 mostly due to increased per pupil funding by the state but also due to an increase in federal programs funding that was then transferred to the General Fund via school-wide consolidated budgeting practices. 

 Capital Reserve Fund revenues decreased from $484,333 to $338,552, in large part because of a decrease in state capital construction grant revenue.

 Total General Fund expenditures increased from $4,405,688 to $4,526,353, an increase of $120,665.  A majority of this increase was budgeted due to the above-mentioned change in federal grant money, transferred to the General Fund via school-wide consolidated budgeting practices. 

 The Center Consolidated School District ended the 2008-2009 fiscal year with a General Fund balance of $352,499, an increase of $181,082 over last year’s ending fund balance of $171,417.  The Capital Reserve Fund ending balance was a negative $90,757, increasing from last year’s negative balance by $36,777. 

 The auditors stated that the district has made many improvements regarding its accounting practices during the past year and the district appears to be in the “best financial condition” it has been since the 1995 fiscal year.  

The audit still identified two findings as follows:

1. The District does not have a “complete” operating system of internal control to prevent or detect financial misstatements. 

2.  The District needs to review the earmarking and reporting requirements of the Title I, Part A program with Colorado Department of Education program staff, to ensure that all funds are spent and reported properly, accurately and filed in a timely manner.

 The auditors also expressed a concern that the negative Capital Reserve fund of $95,000 needs to be addressed in the near future.  District business office officials explained that this fund would be “zeroed out” during the 2009-10 fiscal year.

 Copies of the audit can be requested at the district office.