CONCORD COMMUNITY SCHOOLS: Reserves, deficits, administrative spending

[Shadowninja]

 LADY BUDGETDOWN: CONCORD COMMUNITY SCHOOLS

Dearest reader,

Today, Lady B takes a trip to Jackson County, Michigan, where Concord Community Schools has a financial story worth examining.

And this one involves disappearing reserves, repeated operating deficits, administrative spending above the state median, and some interesting observations from the district's auditors.

Let's follow the numbers. 🧐

💰 WHERE DID THE GENERAL FUND GO?

In 2021, Concord Community Schools had approximately $1.28 million in its General Fund balance.

Here's what happened over the next four years.

2021: $1,284,383

2022: $1,011,368

2023: $943,574

2024: $650,923

2025: $18,910, according to the district's audited financial statements.

That's approximately 99% of the district's financial cushion gone in just four years.

And in fiscal year 2025 alone, Concord reported:

Revenue and other financing sources: $9,845,007

Expenditures and other financing uses: $10,477,018

Annual deficit: $632,011

The district has now experienced four consecutive years of operating deficits.

Its remaining General Fund balance represents less than 1% of annual expenditures.

To help manage cash flow, the district also utilized a state aid note during the 2024–25 fiscal year and anticipated another in 2025–26.

Borrowing against anticipated state aid isn't necessarily unusual.

But when a district's financial reserves have nearly disappeared, it certainly deserves a closer look.

👑 NOW, LET'S TALK ABOUT ADMINISTRATION.

According to the Michigan School Almanac's fiscal year 2025 figures:

Concord administrative spending per pupil: $2,469

State median administrative spending per pupil: $1,975

That's approximately 25% ABOVE the state median.

Concord also devoted approximately 15.4% of its operating expenditures to administration, compared with a statewide median of 13.6%.

Now, smaller districts can have higher administrative costs per student because certain expenses remain necessary regardless of enrollment.

But here's Lady B's question.

When a district has lost approximately 99% of its General Fund reserves, shouldn't administrative spending be among the areas receiving particularly close scrutiny?

Especially when that spending is already above the state median?

📋 AND THEN THERE ARE THE AUDITS.

In 2022, Concord's independent auditors identified a significant deficiency involving budget compliance.
Expenditures exceeded approved budget amounts in several functions, resulting in reported noncompliance with Michigan's Uniform Budget and Accounting Act.

The district indicated that it would revise its budgeting procedures.

The good news?

The 2023 auditors reported that the previous finding had been corrected.

However, the 2023 auditor's communication included another recommendation worth mentioning.

The auditors recommended reviewing who had permission to establish vendors in the district's accounting system and separating that responsibility from accounts payable duties.

This was an auditor recommendation, not a formally reported significant deficiency.

And that distinction matters.

The 2024 and 2025 internal-control findings have not yet been independently verified, so Lady B isn't going to speculate about what they contain.

📉 LET'S PUT THIS TOGETHER.

Concord Community Schools has experienced:

📌 Approximately 99% depletion of its General Fund reserves over four years.

📌 Four consecutive years of operating deficits.

📌 Administrative spending approximately 25% above the statewide median.

📌 A documented significant deficiency in its 2022 audit, subsequently reported corrected.

📌 An additional 2023 auditor recommendation concerning separation of financial responsibilities.

📌 Reliance on short-term state aid borrowing to manage cash flow.

None of this, by itself, establishes wrongdoing.

But it certainly raises questions about financial planning, spending priorities, and long-term sustainability.

And here's the question Lady B keeps coming back to.

How does a school district go from approximately $1.28 million in General Fund reserves to less than $19,000 in four years, while spending substantially more per pupil on administration than the state median?

What financial decisions were made along the way?

What steps did the Board of Education take as those reserves continued declining?

And what is the district's plan to rebuild its financial cushion?

These are reasonable questions about public money.

Because whether a district serves 600 students or 6,000, taxpayers deserve to understand where their money goes.

And students and teachers deserve a financially stable school district.

Lady B will continue following the numbers.

With receipts and respect. 👑

Sources: Concord Community Schools audited financial statements, fiscal years 2021 through 2025. Michigan School Almanac, fiscal year 2025 administrative spending comparisons. Concord Community Schools 2022 and 2023 audit findings and auditor communications.

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