Sharon Mahaffey, chief financial officer for Alexander County Schools, reported to the board on Aug. 11 that auditors completed fieldwork last week and that the district closed the fiscal year without using its current expense fund balance.

Mahaffey told the board the North Carolina Legislature approved a partial or "mini" budget that included higher employer retirement rates and increased employer health-insurance contributions. She said the legislature set a new retirement rate the district will pay and described it as 24.67 percent; she said that represents an increase from the prior rate, which she described as roughly 20 percent. Mahaffey said the retirement-rate change will increase district expenses by about $50,000 systemwide. She also said the employer contribution for employee health coverage increased to $8,500 per qualifying employee from $8,095, an increase she estimated will add about $195,000 across district programs.

Mahaffey said the mini-budget affected average daily membership (ADM) allotments used to calculate positions: in earlier planning allotments the district expected to lose about 5 teaching positions but additional ADM funding in the mini-budget returned that loss to the district's original planning level (she said the district is now set to lose approximately 3.5 teaching positions in planning scenarios). She added that the mini-budget did not include systemwide pay raises, but it did permit step increases for teachers and other step-based salary schedules.

Mahaffey also described continuing problems earlier this year with the state Department of Public Instruction's software transition, which caused delays reconciling district records and state allotment data. She said district staff persevered and that the audit should reflect a successful year-end close despite the technical challenges.

Board members thanked finance staff and specific departments (transportation and maintenance) for remaining under budget. The district plans to present audited financial statements at the October work session.

Sources: Remarks by Sharon Mahaffey, Alexander County Schools chief financial officer, Aug. 11 board meeting.