At its October meeting, the Bond County Community Unit 2 Board of Education received its audit report from fiscal year 2015, which included the district’s financial profile number.
The state computes the number, which can be as high as 4.0, based on fund balance to revenue ratio, expenditures to revenue ratio, days of cash on hand, percent of short-term borrowing remaining and percent of long-term debt margin remaining.
The Unit 2 number remained at 2.90, which is classified as a “warning” rating.
Superintendent Wes Olson told WGEL that Unit 2 were rated a 2 in Days Cash On Hand, an indicator the state uses for their financial profile. Unit 2 has 52 days cash on hand. Another low score was for long-term debt remaining. Olson said the district is, “pretty debt heavy.” There was refinancing of bonds in 2013 and the district is currently operating at about 66% of its long-term debt capacity, meaning the district will be paying on bonds and debt for an extended period of time.
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The superintendent said the “warning” category is one step above the “oversight” category, where the state will become significantly more active in district operations. Unit 2 has been operating at the warning level for a couple of years. Olson said part of that was why the district had to do the deficit reduction plan that was laid out for the board in September.
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Findings noted in the audit included overspending in the operations and maintenance fund, using restricted lease levy proceeds for non-leasing expenditures, and failure to adopt a budget by September 30 of 2014. Superintendent Olson said the operations and maintenance fund and leasing fund situations have been addressed. The school board eventually approved last year’s budget on October 20.