2010-2011 Budget Update

Utica Community Schools continues to meet a high level of financial accountability and remains stable in comparison to other Michigan districts, an independent auditor reported Monday.

Donna Hanson, CPA and partner in the auditing firm of Plante & Moran, PLLC, said that UCS officials have once again earned strong grades for meeting accounting standards used to measure district financial practices. 

She noted the district met all standards and did not report any findings even in the face of increased accountability standards required by federal stimulus funding and other grants. 

“All Michigan school districts are facing the same financial realities,” Ms. Hanson said. “Utica Community Schools is in a much better position because of its overall fiscal responsibility.”

Since 2002, the District has made more than $65 million in budget reductions. These adjustments included such things as an aggressive energy management program, selling surplus property, reducing staffing costs through lower health care and furlough days, and use of the district’s fund equity.

Board treasurer Carl Territo credited staff members for working together on the district’s budget.

“We were able to address the deficit because employees of the district saw what was going on,” Territo said. “It is the total group – the Utica Community Schools family – that was able to get us through this particular financial year.”

The audit demonstrated the district’s continued focus on its core mission of teaching and learning as it addresses the school funding crisis.

The audit showed that while overall expenditures were reduced by more than $1 million over the previous year, the percentage of the budget allocated to direct instruction and support grew by two percent.

 “The district is committed to making adjustments that address its fiscal responsibilities and protect student achievement in these difficult economic times,” said Dr. Christine M. Johns, superintendent of schools. 

The audit also showed revenue for the 2009-2010 school year to be at $258,838,630. In addition to reductions, the district has also used its fund equity to ensure financial stability for its schools and student programs. 

Ms. Hanson added that UCS needs to take additional caution while state lawmakers determine how to replace $12.1 million in one-time federal funding used to balance the 2010-2011 school aid fund.

Auditors noted that 4.5 percent of the district’s revenue was the result of one-time only federal funding – or approximately $400 per pupil. 

A complete copy of the audit is available at this link.