When the Finance Committee of the Morehouse Parish School Board meets next week, they’ll get a good news and bad news report of the fiscal year that ended June 30.
The good news is the system will still have a fund balance of more than $3.5 million.
The bad news is that’s over 50 percent less than they had at the end of the last fiscal year.
Committee members will hear a report from business manager Renee Hinton that will outline adjustments made to the 2010-2011 fiscal year budget. Documents they will review show the system started the fiscal year on July 1, 2010 with a fund balance of almost $7.2 million. By year’s end, expenditures outpaced revenues by nearly $3.7 million, putting the fund balance at $3.5 million, reducing the balance by just over 51 percent.
In their packet, committee members will review a letter from Hinton that outlines a $1.7 million decline in general fund revenues resulting from a miscalculation of the state’s Minimum Foundation Program funding. The letter states that Hinton found “a large mistake” in how much MFP funding she projected for the year.
“I used the distribution letter for the October 1  count, not the distribution letter with the revised count for February 1,” the letter states. “That was a difference of $1,668,132 that lowed the revenue in the general fund.”
Higher-than-expected revenue in sales tax collections more than offset the discrepancy in the MFP funding. An additional $561,985 in Sales Tax Fund Number 3 and a $1,287,821 increase in Sales Tax Fund Number 11 resulted in $1,849,806 in additional revenue.
The Finance Committee, along with the Personnel and Building and Properties committee meet at 5:15 p.m. on July 26 at the Resource Center, 714 South Washington St.