Financial Advisory Committee announces findings

MAT-SU -- The Financial Advisory Committee, a group of independent financial experts asked by Chief School Administrator Bob Doyle to review the school district's financial bottom line, announced its findings last week in a letter to the Matanuska-Susitna Borough School Board. Six community members volunteered their time to review nearly 30 financial documents, ask questions of the district's auditors and generate four findings and recommendations for the board's consideration.

"We feel confident full disclosure of financial information was granted," read the letter. "It is our opinion the district's audit report can be relied upon to be indicative of its financial position."

The committee found four findings during the three meetings they held in November. One, the district's annual fund balance is inadequate in relationship to the size of its budget; two, the public questions the credibility of the district's financial disclosures; three, the committee was given unrestricted access to the district's auditors and the auditors consider the district's June 30 financial statements to be accurate; and four, that approximately 89 percent of the district's budget is committed to employee salary, and as a result, it is increasingly difficult to produce a balanced budget and provide for required services and fixed expenses, such as classroom supplies and worker's compensation.

The committee made four recommendations to the board based on its findings:

The district should adopt long-term goals that provide for unreserved Fund Balance of 3 to 7 percent of the current year's operating fund balance.

The district should charter an audit/financial advisory committee comprised of third-party financial experts to annually review the district's financial situation.

The committee concluded the district's audited financial statements should be accepted by the public as a definitive statement of the district's financial condition.

In an effort to effectively manage employee costs, percentages should be comparable to other large or similarly sized districts and kept within reasonable limits.