Finding Text
Criteria
The State School Aid Act of 1979 Article 10 Section 388.1702 does not allow for districts receiving funds under the act to operate under a deficit.
Condition
The Academy did not monitor the budget to actuals on a regular basis.
Context
We noted that the General Fund has an unassigned deficit fund balance as of June 30, 2022.
Cause and Effect
The academy lacked adequate budgetary controls. The Academy has filed a deficit elimination plan with the State.
Recommendation
The Academy should follow its deficit elimination plan and submit needed revisions as they arise.
Management’s Response
The Academy will monitor the budget to actual numbers on a monthly basis and review with the Board. We will also put in place tighter budgetary controls. The building leaders' and all other administrators' budgets will be monitored monthly, and budget overages will be resolved immediately. The Academy will follow the currently approved deficit reduction plan and submit revisions if needed.