Financial News
Southwest Local School District Receives Another Clean Audit from the State
Once again, the Southwest Local School District has received a Clean Audit Award from the Ohio Auditor of State, with no findings, comments, or management letter.
The Auditor of State’s Office presents the awards to local governments and school districts upon the completion of a financial audit. “By keeping accurate financial records, governing bodies demonstrate their commitment to efficient, effective, and transparent service,” Ohio Auditor of State Keith Faber said. “This award honors public entities that have put in the hard work to keep their finances in order.”
Entities that receive the award meet the following criteria of a “clean” audit report:
• The entity must file financial reports with the Auditor of State’s Office by the statutory due date, without extension, via the Hinkle System and in accordance with GAAP (Generally Accepted Accounting Principles);
• The audit report does not contain any findings for recovery, material citations, material weakness, significant deficiencies, Uniform Guidance (Single Audit) findings or questioned costs;
• The entity’s management letter contains no comment related to:
o Ethics referrals
o Questioned costs less than the threshold per the Uniform Guidance
o Lack of timely annual financial report submission
o Bank reconciliation issues
o Failure to obtain a timely Single Audit in accordance with Uniform Guidance
o Findings for recovery less than $500
o Public meetings or public records issues
• The entity has no other financial or other concerns
“We are proud of our ongoing commitment to fiscal responsibility, ensuring that every dollar is used to enhance student achievement and maintain a strong financial foundation,” said SLSD Treasurer Thomas Lowe. “This audit reinforces our dedication to transparency and efficiency in serving our students, families, and community. I would like to thank our finance team for their hard work and dedication, ensuring taxpayer funds are used wisely and spent according to all local, state, and federal laws.”
The full 2024 Audited Financial Statements are available HERE. Community members who have questions or are interested in learning more can contact Treasurer Thomas Lowe via email at thomas.lowe@southwestschools.org or by phone at 513-367-4139.
FY25 Fall Forecast
FY25 Fall Forecast Notes
The current five-year forecast shows a balanced forecast with a positive cash position in all five years, with deficit spending occurring in 2026 and 2027. This forecast is very dependent upon state funding and seeing the state both fully fund the formula as well as increases to base cost in all fiscal years. Changes during the State’s upcoming biennium budget process could substantially alter future revenues for the district. Final real estate valuations for 2025 are still estimates and could see significant variances from current fall forecast to the future spring forecast.
The board approved the most recent fiscal year 2025 budget at the August 8, 2024 meeting. This budget is in line with previously forecasted amounts.
The State Auditor’s Office has completed their annual audit of the Southwest Local School District. We are happy to report the State’s audit came back with a clean opinion and no audit findings or management letter. A big shout out to the all the members of the Southwest Local School District team who work hard every day to ensure a clean audit and wise use of taxpayer resources!
FY24 Spring Forecast
FY24 Forecast Assumptions
Fiscal year 2024, spring forecast updates show slight deficit spending in fiscal years 2026-2028. However, all future years forecasted show a positive cash position. The board will closely monitor our financial condition and respond to any changes as needed. The State’s Summer 2025 biennium budget will have a substantial impact on the district’s financial condition. Any reductions or unmet promises by the State will significantly alter the district’s annual revenues.
The final fiscal year budget was approved at the June 2024 board meeting. All budgets are in alignment with current forecasted spending amounts.
Southwest Local School District Receives Ohio Auditor of State Award Again!
Southwest Local Schools has earned the Auditor of State Award for transparency and excellence in fiscal stewardship, and has received another clean audit for the 2023 school year.
To be eligible for this award an entity must file financial reports timely, accurately, have no material weaknesses, no questioned costs, no ethics referrals, no findings, no public records issues, and lastly, no financial concerns. Click here to read the press release from the Ohio Auditor of State's office.
SLSD is proud to be a good steward of taxpayer resources.
FY23 Financial Report
The Fiscal Year 2023 Financial Report for the Southwest Local School District is completed. Click the link above to view the report from the Ohio Auditor of State.
FY23 May 5-Year Forecast
Southwest Local School District Board of Education approved an updated 5-year forecast at it’s April 20, 2023 board meeting. This forecast continues the trend of positive financial results for the future. Care’s Act operating expenses will begin showing back up in the general fund in fiscal year 2024 and be entirely spent by fiscal year 2025. HB33 shows promise in increasing Southwest’s share of the state foundation payments for future years. This will likely be the number one influencer of our financial future.
FY23 Forecast Assumptions
Southwest Local School District approved it’s 5-year forecast at the October 20, 2022 regular board meeting. This 5-year forecast puts the district in good shape for the foreseeable future. Beginning in fiscal year 2025 the district will see additional costs coming back to the general fund from expenses currently carried in the Care’s Act Funds. This has been called the “fiscal cliff” by many across the State of Ohio as many districts see a distinct downturn in financial condition beginning in fiscal year 2025. State Foundation funding is up for big changes at the end of fiscal year 2023 and could result in big changes for many districts including Southwest.
FY23 Budget Update
Southwest Local School District Board of Education approved an updated budget at it’s April 20, 2023 board meeting. This brings the general fund inline with the current 5-year forecast and aligns federal funds with the most recent expected amounts.
Moody’s Credit Rating Increased!
Southwest Local Schools received a boost in credit rating to Aa3 from A1. See what Moody’s had to say below:
New York, May 16, 2023 -- Moody's Investors Service has upgraded Southwest Local School District (Hamilton County), OH's issuer, general obligation unlimited tax (GOULT), and general obligation limited tax (GOLT) ratings to Aa3 from A1. The district had roughly $80 million of debt outstanding as of June 30, 2022.
RATINGS RATIONALE
The upgrade of the issuer rating to Aa3 reflects the district's strong reserves and liquidity, solid full value per capita and resident incomes and positive enrollment trend, balanced by an elevated long-term liabilities ratio.
FY22 Annual Financial Audit Complete
Southwest Local School District once again sees a clean audit from the Ohio Auditor of State’s office for the 2022 fiscal year. A copy of the financial report and audit can be found here.
4 StaRS Rating by Ohio Auditor of State – Monitoring Transparency in Government
Southwest Local School District once again receives a Four-Star rating from the Ohio Auditor of State’s office. This represents the highest level of achievement and rating offered by the Auditor’s office for transparency in government. You can view Southwest’s rating here.
