Audit report: Dublin schools cut $3 million off deficit

A preliminary audit report filed with the state shows the Dublin City Schools trimmed almost $3 million off its general fund deficit to finish fiscal year 2026 about $931,000 in the red.

Overall, the school district took in $5 million more in total funds than it spent, according to the “unaudited statement of actual financial operations” approved by the local school board at a called meeting on Friday. 

School districts deemed by the state Department of Audits & Accounts as high- or moderate-risk are required to publish the statements twice in their legal organ (in this case, Saturday’s and Tuesday’s editions of The Courier Herald) prior to undergoing an independent state audit. The requirement is part of a new law, inspired by Dublin City’s financial troubles, that gives the state more oversight over local school finances.

Dublin’s statement actually paints a much sounder financial picture than had been predicted. Last fall, at the peak of its financial crisis, state officials projected Dublin City would end the year with a $13.4 million deficit. 

However, that projection included more than $6 million owed to the State Health Benefit Plan after the district went a year without paying into the plan. The system is making monthly payments on that debt and still owes over $4 million, though that liability is not included in the audit statement.

According to that statement, the district took in almost $45.9 million in total revenue and spent $40.9 million, finishing with $1.5 million left over. The general fund posted $33.3 in revenue and $30.3 in expenditures.

Those year-end numbers have since new school year began. The monthly financial report from August showed a $2.1 million general fund deficit, and more lean months are ahead until property taxes can be collected this winter. In the meantime, officials said they will need to ask the state for advances in monthly funding allotments to make payroll.

Still, Chief Financial Officer Teresa Lounder told the school board last week that recently implemented financial controls have significantly cut back on spending. 

The district has spent about $1 million less than at this time last year, she said, adding that the district could possibly clear its deficit this fiscal year, rather than 2028 as currently projected in its deficit reduction plan.

Among the revelations from Dublin City’s financial crisis was that the district had not completed an annual audit since 2021. Audits for fiscal years 2022 and 2023 have since been finished. Both showed the district ending with the years with a surplus, though the FY23 audit cited the system for a “lack of financial controls.” District officials said last week that the 2024 audit has been submitted to the state and is undergoing suggested revisions.

The controversy led to the resignation of the district’s financial officer, the early retirement of its school superintendent and the suspension and removal of the school board by Gov. Brian Kemp, who appointed seven new members to the board. State and federal investigations into the district’s accounting practices are ongoing.