With the release of the annual financial audit report for the
2005-06 school year, Morgan Hill Unified School District Board of
Education trustees learned that their financial situation is
good.
Morgan Hill – With the release of the annual financial audit report for the 2005-06 school year, Morgan Hill Unified School District Board of Education trustees learned that their financial situation is good.
Board President Peter Mandel said Tuesday during the board’s regular meeting that the clean independent report is one of several examples of the board’s fiscal responsibility.
“The community appropriately looks to us to make sure their taxes are handled well by us,” Mandel said. “This year, we have gotten many confirmations of that … Over and over, we keep getting recognition that school district money is being handled responsibly and well.”
The district is required by law to have its books audited each year.
Deputy Superintendent Bonnie Tognazzini told trustees the Santa Clara County Office of Education also reviewed the report and “gave a positive opinion.”
Tom Brewer of Vavrinek, Trine, Day & Co., the auditing firm, told trustees that the audit is “clean.”
“The district has good surpluses but not excessive surpluses … it is well above in reserves,” Brewer said. “There are no findings this year.”
According to the audit report, the district experienced growth in its operating surplus, enrollment and fiscal stability. From 2004-05 to 2005-06, average daily attendance (ADA), which is what state funding is based on, increased by 148 students or 1.8 percent. The district’s net assets increased to $121.9 million, according to the report, an increase of $17.2 million or 16.5 percent from 2004-05.
Tognazzini also gave trustees an update on Gov. Arnold Schwarzenegger’s budget proposal for 2007-08 and how it will affect the district budget.
The proposed budget has been described as a “maintenance budget.”
Mandel reminded his fellow board members that last year’s budget was also “not very exciting,” but after the governor’s May revise of the budget, “everything went wacko,” and there were some extra funds. However, he said, when he and Trustee Kathy Sullivan, who is the board’s vice president, were in Sacramento recently they visited Senator Abel Maldonado. Maldonado told them the same thing would probably not happen this May.
“Nobody’s expecting anything different,” he said. “Nobody’s thinking there’s going to be a nice surprise this year.”
Tognazzini said the governor’s budget would include a cost of living increase (COLA) of 4.04. After the district pays employees the built-in step and column increases on the salary schedule, 2.24 percent of the 4.04 percent could be spent at the board’s discretion.
The rest of the governor’s proposal is very straightforward, according to Tognazzini.
“There is no money with strings attached,” she said.
Superintendent Alan Nishino cautioned that there are increasing costs that could eat up any additional funds.
“You have to look at the true dollar you’re going to get,” he said. “You have increasing maintenance costs. That’s something, like transportation, we can’t control. Gas costs, fuel or insurance costs … We’re being very conservative in this to make sure we don’t deficit spend.”
Marilyn Dubil covers education and law enforcement for The Times. Reach her at (408) 779-4106 ext. 202 or at md****@*************es.com.
