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School system underspent its budget by $837,000 in last fiscal year, Broome says

Grady County School System Finance Officer Dan Broome is in the process of closing out the books for the fiscal year that ended June 30th, but his preliminary figures are positive for the public school system.
Broome briefed members of the Grady County Board of Education Tuesday night during the board’s July regular meeting.
“I’m still in the process of going over all the books to make sure everything balances before I have to submit the information to the state in September. I would tell you at this point these figures are 99 percent correct. The figures indicate we underspent our budgeted expenditures by approximately $837,000. That money will go into fund balance and be there to aid us going forward,” Broome said.
Rolling in the surplus created by the decreased spending with the approximately $900,000 budgeted revenue surplus, and combining that total with the approximately $650,000 in local funds freed up by federal stimulus funding and putting that on top of the $1.2 million fund balance from FY2009-2010, the system is sitting on a projected fund balance of $3.6 million as of June 30, according to Broome.
The increased fund balance will help the school board make up the $1.3 million shortfall in the FY2011-2012 operating budget and will provide a “cushion” for going forward, Broome commented.
In other financial news Tuesday night, the board unanimously approved the execution of a resolution by Chairman Cuy Harrell III to close out the Education Special Purpose Local Option Sales Tax II leaving $1,477,991.84 in unspent sales tax collections. The resolution stipulates the remaining sales tax proceeds be used to retire debt on capital projects.
The school board previously borrowed $1.4 million in short term financing to cover necessary capital projects. Now the school system will use these unspent sales tax dollars to pay off that short term debt.

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