ALPENA - The Alpena Public Schools Board of Education accepted the 2011-2012 audit report, presented by Phil Straley, CPA/PFS and Mark Sandula, CPA, of Straley, Ilsley & Lamp P.C. Straley said the audit report covering the school year ending June 30, 2012, was completed without disagreement during unsettling economic times.
"APS financial statements were wonderfully presented and fairly accurate, but things aren't wonderful ... APS lost $1.5 million and it's reflected in this. We'll just have to move forward from there," Sandula said.
The auditors' report showed general fund revenues of $34,134,001 with $35,336,833 in expenditures, amounting to a loss of $1,458,412 in fund balance, ending the year with a fund balance of $1,070,904.
"The only thing that's available for the board to spend is $398,835 (unassigned money from the general fund) ... There is a shortfall in the general fund," Sandula said. "You don't have a lot of money going into 2013. Paying bills may be difficult without borrowing money."
However, Sandula said, APS did implement $800,000 in cuts, which he said was used to offset the shortage of $2 million of revenue. He said APS is not in a deficit situation, but revenue sources are "drying up," with 65 percent of APS revenue coming from the state.
"We made is very clear that a year from now, on the track that we're on, we will be in deficit spending," Superintendent Brent Holcomb said. "We couldn't cut fast enough to keep up with the revenue side."
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