District's revenues exceed expenses - barely

The completion of Gaffney High construction repairs contributed to a $1.4 million increase in assets for the local school district this past year.

The district had net assets of $46.5 million at the end of the 2006-2007 fiscal year, according to an audit report Monday from the Cline, Brandt and Kochenower accounting firm in Gaffney.

The district also retired $5 million in long-term bond debt as part of financing efforts to accommodate a new $35 million school building program.

Installment purchase revenue bonds were issued through a nonprofit corporation by the school board. These funds were used to pay for the construction of a Gaffney High stadium, Blacksburg and Gaffney High ninth grade additions, a Limestone Learning Center and Goucher Elementary addition.

Overall, district revenues outpaced expenditures by just $5,539 for the financial year ending June 30, 2007, the report showed. The district received $57,239,192 in revenues and had $57,233,653 in expenses.

The majority of the district's expenses were salaries and benefits for the 1,200 employees. The district is one of the county's largest employers.

"An audit includes examining on a test basis, evidence about the Cherokee County School District's compliance with financial reporting requirements and performing such other procedures as we considered necessary in the circumstances," accountant Ben Kochenower said. "In our opinion, the overall financial condition of the district remains strong."

The school district finished $96,000 in the black with its food service budget this past school year. Traditionally a break-even enterprise, the district had struggled for the previous seven years to avoid operating in the red.

Finance director Ben Childs credited the district's favorable food service balance to better program management of labor costs and expenses involved in operating school lunch programs.