Consultants find $4.1 million overstatement in district carryover; board approves bond note and amended revenue budget

Consultants reviewing the district's books told the Appoquinimink School District Board of Education on Oct. 7 that a financial position report submitted in May overstated the district's discretionary carryover by about $4.1 million and left the district short of the required carryover.

The consultants, Chuck Longfellow and Scott Kessel, said the May submission listed a projected discretionary carryover of $7.9 million when the actual discretionary carryover was $3.8 million; the required discretionary carryover was $4.2 million. "On that report, there was a projected discretionary carryover balance reported of $7,900,000. The actual carryover was 3,800,000," Longfellow reported. "That report was overstated by $4,100,000."

Why it matters: carryover and discretionary balances affect the district's ability to fund payroll and operations early in the fiscal year. The consultants said the misstatement stemmed from mixing discretionary and nondiscretionary funds in budget reports, underestimates of salary and non-salary lines, and…