Dearest reader,
The final stop in Parchment School District's ledger takes us to the audits and the district's current budget. 🪶
And this one comes with both findings and corrections.
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📋 FY2023 — Budget Variances
Auditors found expenditures exceeded the amounts appropriated in certain General Fund budget categories.
The finding was attributed primarily to turnover and a vacancy in the Director of Finance position.
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⚙️ FY2023 — Lack of Internal Controls
Auditors also identified deficiencies involving:
• Review of bank reconciliations
• Review of journal entries
• Review and maintenance of time-and-effort reporting
Again, the audit attributed the issue primarily to turnover and a vacancy in the Director of Finance position.
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Now for an important receipt:
✅ Both findings were subsequently corrected.
According to the FY2024 audit, both 2023 findings were resolved as of June 30, 2024.
When Lady B finds a problem, it goes in the ledger.
When a district fixes it, that belongs in the ledger too.
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🍎 There was also a Food Service Fund issue.
The fund balance had exceeded the Michigan Department of Education's permitted three months of operating expenditures.
By June 30, 2025, the balance had been brought below the applicable threshold.
Resolved. ✅
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But there is another number worth watching in the district's 2025–26 final amended General Fund budget:
Revenue: $30,712,441
Expenditures: $31,442,408
Planned deficit: $729,967
Beginning fund balance: $3,919,866
Projected ending fund balance: $3,189,899
Projected ending fund balance: 10.15% of expenditures
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That planned deficit is not an audit finding, and Lady B will not present it as one.
It does, however, mean the district budgeted to spend roughly $730,000 more than it expected to bring in during the year, with the difference coming from fund balance.
That is a number worth keeping an eye on.
Receipts are not only about finding problems.
Sometimes they show that a problem was found, corrected and closed.
And sometimes they tell us what to watch next. 🪶
With receipts and respect,
Lady Budgetdown
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