District Audit: BCSD in Good Financial Condition

MONCKS CORNER, SC (December 8, 2015) – Berkeley County School District (BCSD) is in good financial condition as of June 30, 2015, per the annual District audit. BCSD received an unmodified opinion from Greene, Finney & Horton, CPAs, the most favorable decision the school district can receive. A major highlight of the year is that due to a recent bond rating upgrade and refinancing of existing bonds, the District was able to obtain gross savings of $18,456,438 for Berkeley County taxpayers. In addition, because of conservative budget estimates, BCSD’s general fund balance increased by $4.1 million.

The Government Finance Officers Associations recommends an unrestricted general fund balance of no less than two months, or a minimum of 16.7 percent, of regular general fund operating revenues or expenditures. BCSD surpassed this expectation by almost 4 percent with an unassigned fund balance of $46.6 million, which is 20.8 percent of 2015 actual expenditures and 19.5 percent of 2015 budgeted expenditures.

“It is important to maintain an adequate fund balance to ensure cash flow through the second half of the calendar year, cover unanticipated expenditures and significant emergencies and allow for flexibility to meet discretionary funding needs,” said Brantley Thomas, BCSD Chief Financial Officer. “Given the uncertain economic times, an adequate fund balance covers potential shortfalls from the state and changes in local ordinances that impact local tax levy estimates.”

Consideration of future financial risks, such as increases in salaries and benefits and increased operating costs due to new facilities, will be addressed in long-term strategic and financial planning.

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