RISD trustees approved the audit results, known as the annual comprehensive financial report, during their Nov. 9 meeting. The results revealed several positive variances from fiscal year 2022-23, which provide RISD with additional one-time funds to address the $15 million operating shortfall in FY 2023-24 and the projected shortfall for FY 2024-25.
The details
These are some of the positive variances found between the FY 2022-23 budget and actual revenue and expenditures, according to the news release:
- $11.4 million: payroll costs, due mainly to vacant positions during the 2022-23 school year
- $8.5 million: School Health and Related Services revenue related to services provided by qualified staff to Medicaid-eligible students
- $7.4 million: interest income, due to interest rates increasing faster and to higher levels than anticipated
- $5.9 million: property tax collections, due to value changes as protests settled
- $4 million: indirect grant cost revenue, which is the overhead costs of administering a grant
- $3.6 million: state revenue, due to an increase of about 200 students more than what was projected
- $1.5 million: xPlore tuition revenue, due to more students than projected participating in the district’s before- and after-school care program
The audit found one negative variation of about $4.5 million for nonpayroll expenditures. The discrepancy happened because of higher costs for insurance, fuel, substitute teachers and contracted services to assist with staffing shortages in areas such as special education, according to the news release.
The backstory
All school districts must be audited annually to comply with state law. The audit evaluates internal controls over critical areas, such as human resources, payroll, procurement, accounts payable and information technology. It also analyzes the district’s compliance with state laws and regulations, according to an RISD news release.
RISD’s audit showed all “financial statements are correct in all material aspects,” according to the news release.
