October 25, 2024 Hannibal, MO – Hannibal Public Schools would like to provide an update on the findings of the recently completed State Auditor's investigation of the district’s fiscal management. We are pleased to report that the investigation found no indication of fraud or corruption within the district. This finding aligns with previous analysis completed by the outside firm that annually audits the district, the MO Department of Elementary and Secondary Education, the contracted bond underwriters, and financial/investment firms that consulted with the district. The investigation did acknowledge that the district is in a weakened financial position, a concern that has been well-documented and is actively being addressed.
The investigative summary highlighted areas where the district needs to improve its fiscal management. The district’s goal moving forward is to strengthen our financial processes and continue to provide transparency with our stakeholders.
Summary of findings:
Budgetary Shortfall: Despite financial challenges, the district has made deliberate efforts to address the projected budget shortfall.
Reserves: The Missouri Department of Elementary and Secondary Education (DESE), in accordance with Section 161.520 RSMo, considers districts with less than 3 percent in unrestricted fund balance reserves to be financially stressed. Hannibal Public Schools ended the 2023-2024 fiscal year at 4.3%, which places it above this threshold.
Financial Reporting: The investigative summary identified the need for more clear fund-level summary information. It is essential that the district ensures all requirements under Section 67.010 are presented in its budget.
Next Steps and Commitment to Transparency
At the October 15, 2024 Board of Education meeting, the formation of a district finance committee was announced. This committee will include members of the Board, District staff, and local financial experts. The committee will collaborate to review and recommend amendments to the budget, ensuring compliance with statutory requirements and supporting the district’s long-term financial stability.
The district recognizes the importance of making this data more accessible and aligned with state statutes. The district has historically provided a consistent format with comprehensive data, with all information presented via individual line items. Future reports will organize expenditures and revenues by fund, streamlining the format for greater clarity and ease of understanding. This approach will ensure stakeholders can more readily interpret our financial information.
District administrators, under the direction of the Hannibal Board of Education, will provide regular updates on the district's financial status with the community. Hannibal Public Schools will remain fully committed to strengthening our fiscal management to promote financial health and empower our students to thrive.
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For more information contact: Andrea Campbell
Hannibal Public Schools
acampbell@hannnibal60.com
573-221-1258
Related Resources:
State Auditor Investigative Summary
Tax Rate Information (July 30, 2024)
HPS Plans for Fiscal Challenges (March 14, 2024)