Munster school district responds to state audit showing more spending, less revenue

MUNSTER | The Indiana State Board of Accounts issued an audit report for the School Town of Munster saying spending seems to outpace revenue, and that the district has spent a lot of money on buildings.

There are no criminal matters, however, and no one has been ordered to repay money.

The audit report is for July 1, 2009, to June 30, 2011. The report indicates some funds had a negative balance, and "routinely overdrawn funds could be an indicator of serious financial problems which should be investigated by the governmental unit."

Ryan Preston, with the Indiana State Board of Accounts, said the district needs to figure out the problem and correct it.

Munster Assistant Superintendent Richard Sopko said general fund spending outpaced revenue during the audit period, but the district has the ability to transfer money to correct the problem.

"It's not something we want to happen. We're aware of it and we're addressing it," Sopko said. "It occurred when the governor cut funding to K-12 education. We lost $1.5 million that year. Most of those cuts were in personnel and salaries. We have to get our spending practices and personnel in line with what we are getting from the state."

The School Town of Munster will receive $21.7 million in the general fund in 2012 from the state, a slight drop from 2011 when the figure was $21.85 million. The general fund, or school operating fund, pays for salaries and benefits.

Based on the amount of money the district gets from the general fund, it spends $4,750 per pupil, ranking 348th out of 357 schools across the state. The Lake Central School Corp. ranks less at $4,662 per pupil and the Gary Community School Corp. ranks among the highest in the state at $7,686 per pupil.

The audit report said the district spends almost as much on debt ($14.4 million) as it does on instruction ($17 million). Sopko said the district had a high debt load because it renovated several buildings over the past 10 years.

"We've done a lot of renovation but we are caught up now," he said. "Some of the debt will be paid off in 2016 and the oldest debt, including the new swimming pool and classroom renovation at the high school, will extend to 2032."

The other issue the State Board of Accounts cited was the annual parking fee the district charges high school students who drive a vehicle to school. During the two-year audit period, the high school collected $9,031 in parking fees.

Preston said parking fees, like bus rider fees, should not be charged. A previous report cited the School Town of Munster for charging transportation fees, and the district subsequently stopped.