The St. Charles Parish School Board gave initial approval to pursue two forms of borrowing as the district works to address projected yearly budget deficits of $56 million to $64 million through 2028 if it makes no changes to its spending or revenue.
On June 9, the School Board approved up to $30 million of Sales Tax Bonds and $35 million in Revenue Anticipation Notes. District staff will now move forward with the steps required before the bonds and notes can be issued.
The financing process comes after EisnerAmper, an accounting consulting firm hired by the district, estimated cash shortages in the coming years if operating costs continue to outpace revenue growth.
In its final report released June 17, the firm found that weak budget controls, inadequate financial reporting and accounting practices that obscured the district’s true financial position contributed to the school system’s financial challenges. These practices limited the School Board’s ability to accurately monitor the district’s finances throughout the year.
The review found no evidence that funds were misappropriated.
In its three-phase review, EisnerAmper found that substantially all district expenditures flowed through the General Fund, making it difficult to accurately track the financial position of individual funds. The review also found that the board-approved budget was not entered into the accounting system in a way that allowed meaningful monitoring throughout the year.
Capital project spending also exceeded the full-year budget after just seven months.
In a statement, the district said revenue and spending forecasts presented to district leadership and the School Board did not materialize as expected.
“As a result, decisions regarding capital projects and salary adjustments were made based on financial information that did not fully reflect the district’s financial condition,” the district said.
The EisnerAmper report comes after the school district notified the St. Charles Parish District Attorney and the Louisiana Legislative Auditor of concerns regarding the accuracy of the district’s financial information earlier this year.
Superintendent Dr. Ken Oertling initiated an internal review of all financial records after suspecting inaccurate financial information. The school district placed CFO Ronald E. White Jr. on administrative leave in January. He then resigned in February.
In a statement, the school district said it has used EisnerAmper’s findings and recommendations to bolster oversight, update procedures, and incorporate additional best practices moving forward.
“This includes year-round monitoring of restricted funds, stricter budget controls and financial reporting, safeguards that lock in School Board-approved budgets, dedicated accounts for specific funding sources, improved payroll and insurance cost allocation timelines, enhanced reporting on construction and capital projects, and additional procedures to prevent unauthorized transfers of funds,” the district said. “Together, these measures provide a clearer understanding of the district’s financial position and support more informed oversight.”
The district also noted that long-term financial stabilization is expected to be a multi-year process that could take three to five years.
“As this work continues, one indicator of progress will be gradual improvements in the district’s year-end fund balances as the district works toward long-term financial stability,” the district said.