According to White, “These temporary loans are inflating the true cash and investment balance of the school corporation’s Regulatory Statement Fund Balance at June 30, 2016, by $10,000,000.”
Moreover, Muncie Schools Corporation reported that it has accounts payable worth $2,072,410 as of June 30, 2016. It had unfunded post-employment benefit liability.
In her report, White stated that Muncie Community Schools will have a negative cash and investment balance of -$13,163,369 if it paid all of its debt and payable items on June 30, 2016.
Furthermore, White noted that the school corporation’s revenue is declining due to declining enrollment and property tax caps. It already shut down three elementary schools. Its CFO projected that its cash balance will be zero by October this year.
According to White, Muncie Community Schools’ deficit cash balances and its operational procedures raises significant doubt regarding its ability to continue. She emphasized that its procedures do not address the root causes of its deficits, which is an ongoing concern.
