Gallipolis City School District Could Save More Than $1 Million
Columbus – More than $1 million in potential savings were identified in a performance audit of the Gallipolis City School District (Gallia County) released by Auditor of State Dave Yost.
“The district’s proactive response to its financial condition paid off,” Auditor Yost said. “These recommendations mark the trail to a sound fiscal future.”
The Auditor of State’s office selected the school district for a performance audit in consultation with the Ohio Department of Education (ODE). In July 2015, the district requested a staffing and financial analysis from ODE due to concerns about its near-term financial stability. Based on the results of the analysis, ODE placed the district in fiscal caution on August 7, 2015.
The district could save an average of $456,500 annually by reducing insurance premiums and increasing employee contributions to a minimum of 13.3 percent. In addition, the district could save approximately $143,300 per year by reducing its energy usage to the benchmark set by the U.S. Environmental Protection Agency’s (EPA) Energy Star program.
Eliminating seven spare buses from the district’s fleet could save approximately $59,400 annually by avoiding maintenance, operating and insurance costs. This includes $4,000 in one-time savings from the sale of unneeded buses. Using routing software to reduce regular bus mileage by 7.9 percent could save the district another $28,500 per year.
Auditors identified additional savings if the district:
- Reduces professional and technical staff by 4.5 full-time employees ($186,100);
- Reduces unnecessary phone lines ($48,400);
- Implements a fleet cycling plan ($45,500);
- Develops a purchasing process that sources items from vendors with the lowest prices ($37,600);
- Brings collective bargaining agreements (CBA) provisions in line with benchmarks ($10,100); and
- Implements state accounting software ($7,500).
The district’s October 2015 five-year forecast projects an ending fund balance deficit of $112,482 in FY 2019-20. If the district implements the recommendations within the performance audit, it is estimated that the deficit projected in FY 2019-20 would become a surplus of $3,510,800.
A full copy of this performance audit may be accessed online.
The Auditor of State’s office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,800 state and local government agencies. Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.
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