The State Comptroller’s Office examined the fund balances and reserve funds at the McGraw School District for the past three school years.
The report showed the District’s reserve funds are larger than state recommendations.
The audit found an average excess of $638,000 for the three-year period.
Fund balances for repairs and capital reserves seemed reasonable to the auditors.
Their concern? Fund balances such as unemployment insurance, workers compensation and retirement contributions.
The Comptroller’s office recommends the District adopt budgets based on what it called realistic estimates, with reasonable fund balances, and come up with a use for the excess unrestricted fund balance that would benefit District residents.
Superintendent Melinda McCool tells X101 that McGraw will create a Capital Fund Reserve, to attack about $10-million in facility needs identified in the most recent facility needs survey.
In her response to the state, McCool points to a potential bus purchase, added primary school programming and technology for students.
She assures us the Board of Education and Business Official are already using the Comptroller’s advice.