DPS gets thumbs up on its finances

Auditors gave Durham Public Schools two thumbs up after reviewing the district's 2008-09 budget.

But they did catch one thing. Leon Rives II, a partner with Rives & Associates LLP, who conducted the audit, compared the error to a misidentified accounting code. He said the oversight was minor.

Rives reported the audit findings during tonight's monthly school board meeting.

"Things went very very well during your audit this year," he said. 

Rives highlighted challenges the district had with its budget, including cuts in state funding and spending freezes. He said the school system will face challenges maintaining cash flow with a low undesignated fund balance, something school board members said they have made county commissioners and state legislators aware of. 

But total revenues are up and the district's total fund balance, which includes money reserved for next year, also increased - something only one other school district audited by the firm can say, Rives said.

"To have this clean of an audit is an amazing thing for the size of our budget," said Steve Martin, school board member.

Board members also approved changes to the district's bullying and harassment policies and student conduct code to reflect the passing of the 2009 School Violence and Prevention Act by state legislators. The act outlines the definition and consequences of bullying and harassment as well as how such cases should be reported and investigated.