excel link iconNovember 2013 Vendor Spend Report (excel)

$21.6M Expensed To Prior Year
The Nov 2013 report shows that $21.6 million dollars were paid this year and expensed to last year’s budget. We should be concerned/alarmed/hair on fire that $21.6 million dollars never showed up on any Monthly Financial Reports.

McKenna Long & Aldridge (MLA) (Legal Expenses)
The Board approved $50,000/month for 16 months starting June 2013. McKenna Long & Aldridge doesn’t show up on any vendor reports and is not reflected in any Monthly Financial Report fiscal year to date.

DE46 Financial Report
We need to see the DE46 data turned into the state in September. The DE46 is the form used to send the final YTD fiscal report to the state. In August, the board was presented with the June Fiscal Report containing the YTD FY’13 information. During the months of July and August, the administration kept dumping expenses into the FY’13 budget, but the Fiscal Reports for those months only reflect FY’14. Final transmission and Superintendent sign-off of the FY’13 DE46 was due September 30.

Modified Accrual Basis For Accounting
Generally Accepted Accounting Principles (GAAP) and the Ga DOE require that the modified accrual basis of accounting be used for governmental fund types.  Dr. Bell, CFO, said, “The financial report is on a modified accrual basis. This spend report is really on a cash basis.”

  1. Salaries appear to be reported on a cash basis. The total budgeted amount for salaries should be divided by 12 and accrued monthly at that rate ($335,834,812/12 = $27,986,234 per month).
  2. How can the financial report be on a modified accrual basis when 95% of the data is salaries and vendor spends , both of which appear to be reported on a cash basis?