WBS fund balance back in the black, auditing firm says

The West Bloomfield Schools Board of Education approved an audit report by Plante & Moran for the 2010-11 school year, which was presented at the Monday, Sept. 26 school board meeting.

According to the report, the district’s general fund balance, which was previously in a deficit, increased by about $2.3 million to its balance of $551,562 as of June 30.

Plante & Moran reported that this was accomplished due to budget reductions and cost-cutting measures implemented by the board and administration for the 2010-11 school year, which included negotiated changes in salaries, wages and benefits of collective bargaining agreements with all district employees.

The firm added that other budget adjustments included staff reductions of 28.5 positions and the district’s implementation of a one-mile walking distance for students attending both elementary and secondary schools.

Plante & Moran also reported that if the district continues to follow its cost containment strategies for the current school year, the district can add to its positive fund balance and stay out of the red.

The firm’s previous audit report of the district’s finances for the 2009-10 school year had the district’s general fund balance at a deficit of $1.7 million after the balance decreased approximately $3.4 million in the 2008-09 school year.

The board previously submitted a budget deficit elimination plan to the state in May 2010, but the firm states that the district has notified the Michigan Department of Education that it is no longer in deficit and that continued filing of the plan would no longer be needed.

Plante & Moran also stated that the district amended its 2010-11 budget in February and that the revised general fund budget also showed an increase in revenue of $4.27 million due to increases in local, state and inter-district sources of revenue.

Expenditures were increased by $1.9 million to include changes in staffing, compensation, health insurance, mandatory retirement payments, collective bargaining settlements and the impact of the federal stimulus fund.

Plante & Moran also stated that the district has an outstanding unqualified general obligation debt of $107.6 million, which is well below the $266.3 million limit.

The report pegs the district’s general fund revenue as of June 30 at $70.49 million, with $49.1 million coming from state sources.

General fund expenditures totaled $68.57 million, with $42.86 million going towards instruction.