The Appoquinimink School Board is learning more about what led to a nearly $5 million budget deficit discovered earlier this year.
At a meeting on October 7, Board of Education members heard from two consultants working with the district to unravel the complex chain of accounting failures that led to the shortfall. While an investigation this summer by the State Auditor’s office highlighted issues with the district’s financial management, the consultants also focused on recommendations to right the district’s fiscal ship for the future.
The consultants’ report found that there was a single person responsible for financial reporting, creating a vulnerable point of failure.
“Make sure that as we go forward, we establish procedures with multiple levels of preparer, reviewer, and approver of reports where it's appropriate," said consultant Chuck Longfellow.
The report also found issues with transparency and monitoring of expenditures.
“Don't wing it," Longfellow said. "Don't let contracts for goods and services roll from year to year without a review. Programs need periodic analysis of your return on investment related to academic or operational outcomes.”
Longfellow also suggests the district has outgrown its current accounting processes, something the district’s new finance director, Alleesa Stewart, is already working on.
“I think that the district's now grown too big to really rely on spreadsheets for everything," he said. "I know that Ms. Stewart is looking at software for budgeting. She's also looking at zero-based budgeting techniques, which I think is awesome.”
The nearly $5 million budget shortfall prompted outcry from local taxpayers and lawmakers, an audit from the state, and contributed to the district’s decision to raise property taxes by ten percent earlier this year, as permitted by state law after reassessment.
District staff told board members that many of the recommendations are already being put into place and promised an update at a board workshop later this month.
