Twin Rivers audit highlights expense cuts

BROSELEY, Mo. -- Auditors credit wiser spending practices for a more than 14 percent increase in total net assets during Twin Rivers School District's previous fiscal year.

Board members approved an audit for the fiscal year ending June 30 during a board meeting Tuesday night in Broseley, the Daily American Republic reported.

Twin Rivers, located southeast of Poplar Bluff, Mo., has almost 1,000 students.

"The district is very sound financially," said Dewayne Clark of the accounting firm Hillin and Clark. "The fund balances look good."

Clark spoke to board members about spending during the prior school year and made recommendations to improve investment returns.

By cutting expenses, according to the audit, the district increased its reserve while seeing a less than 1 percent bump in total revenues of governmental funds.

District revenue has increased steadily in the past four years to almost $8.4 million in fiscal year 2009. This is the first time in that period expenses were down from the previous year.

Total net assets are now about $3.3 million, up nearly $419,000. Just one year prior, Twin Rivers saw a $13,000 deficit.

The increase includes $100,000 restricted for debt service. This fund now holds nearly 75 percent of the $1 million in bond payment due in 2013. The remaining moneys are unrestricted.

Twin Rivers spent approximately $7.9 million during the last school year. Those expenses are: 59.5 percent for instruction (58.3 percent in 2008); 4.5 percent paid to instruction support such as library and speech service (5.1 percent in 2008); and 17.1 percent for administration including district-wide, building administration services and operation of plant (18.3 percent in 2008).

Nearly $72,000 was cut from district operating funds, much of that related to transportation and maintenance costs.

Clark recommended investment changes that could lead to a $20,000 annual profit.

The district has an interest earnings account at Southern Missouri Bank and Trust, now known as Southern Bank.

"Interest rates have declined drastically and the account is paying one-half percent," Clark said. "I recommend the district look at other forms of investment, possibly certificates of deposit where you could earn 1.5 percent."

Clark also told board members the district needed to keep better records of payments made to umpires, but auditors did not consider the money involved material enough to put in the audit report.