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Taylor Releases Performance Audit of McDonald School District

Tuesday, June 8, 2010

Trumbull County - Auditor of State Mary Taylor today released the performance audit of McDonald Local School District.  The audit identifies potential savings of more than $870,000 annually, which could help the school district improve its financial condition.“The school district has worked diligently to cut costs as a result of declining financial resources,” Taylor said.  “The performance audit released today will serve as a blueprint to help district officials reduce costs even further while working toward achieving financial stability.”McDonald Local School District was placed in fiscal emergency on October 15, 2009 after an analysis by the Auditor of State showed the district anticipated deficits for fiscal year 2010 and the potential for deficits in future years.

The performance audit released today examines the school district’s financial systems, human resources and general operations.  The report notes the district has low tax revenues and property valuation, but can be commended for operating within those restrictions by keeping staffing and spending levels low.

The report contains 26 recommendations to improve management processes, enhance operational efficiency and improve long-term financial stability.  Some of these recommendations include:

  • Reduce regular education staffing by 7.0 full-time equivalents (FTE) for fiscal year 2011 ($282,000 in estimated annual financial savings). 
  • Review cost effectiveness of the special education program, including strategies to share certain services ($179,000 in estimated annual financial savings).
  • Negotiate reductions in cost of health benefits ($154,000 in estimated annual financial savings). 
  • Eliminate one active bus from the district’s fleet ($41,000 in estimated annual financial savings).

Other recommendations in the report outline how McDonald Local School District can strengthen management processes in order to better monitor its finances and enhance overall operations.  For example, the report recommends ways to improve budgetary performance and the purchasing process.

Performance audits report on the efficiency and effectiveness of government operations through peer comparisons and benchmarking to industry standards.  A performance audit is a valuable tool for agencies seeking to improve operations, identify cost savings and make better use of existing resources.

A copy of the complete report is available online.

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The Ohio Auditor of State’s office is a leader in the accounting and auditing field, earning prestigious national honors from the Government Finance Officers Association, the National White Collar Crime Center and the National State Auditors Association.

Contact
Julia Debes
(614) 644-1111