- Lincoln Center Elementary
Annual District Financial Audit Receives Clean Report
Wednesday, Dec. 16, 2020 — The 2019-2020 financial audit shows stability despite the changing circumstances surrounding the COVID-19 pandemic.“Our finance team and district leaders have done a fantastic job navigating the financial complications that came with the pandemic,” says Superintendent Dr. Dave Webb.
Finance Director, Aaron Bushberger says, “Overall we had some good news in the general fund. It was a challenging year, but we finished the 2019-20 year better than we had budgeted.” While this is positive financial news and provides a higher fund balance than was originally anticipated, the district will continue to face financial challenges moving forward. The district ended the 2019-20 year with a 11.6% fund balance, which is just below the policy target of 12%.
There are many factors that play into the change in budget, the biggest being the pandemic. One area that experienced significant change was the Food Service Fund. The original planned deficit was about $171,000, but actually came in slightly higher at a $203,000 deficit.
“The deficit is only slightly over, which in my opinion is actually good news considering the large shift we made to the food service program in March,” says Bushberger, “We began delivering meals on buses around the community and offering free lunches for our students.” Some of the food service financial burden was offset by funding from the USDA Summer Food Service Program. This program gave the school district the flexibility to serve seven meals each week to our families.
Other areas of note are the Self Insurance Funds and Community Education Funds. Of the Self Insurance funds, Bushberger says, “We were trending in the right direction all year. When the pandemic hit, it completely changed our medical and dental self insurance costs. Overall we saw less costs over the course of April, May, and June which had a positive impact.”
When it comes to the Community Education Fund, it’s important to note the district did allocate money from the general fund to offset some of the revenue lost when the pandemic hit. Bushberger says, “The program couldn’t offer their typical programming that usually brings in revenue, including the Kids Choice before and after school care program.”
The District received an unmodified, or clean, report of basic financial statements from MMKR Certified Public Accountants. This independent auditing firm gives an outside opinion on the finances and issues their reports on internal controls and other state and federal compliances requirements.