Determine whether Rome City School District (District) officials established comprehensive multiyear financial and capital plans.
Officials did not develop comprehensive written multiyear financial or capital plans. While officials have some information needed to develop the plans, additional information and analysis is needed. For example, officials:
- Reviewed historical trends to project future revenues and expenditures but did not calculate the projected annual operating deficits in future fiscal years or assess the impact of the operating deficits on fund balance and reserves.
- Maintained asset inventory lists, replacement schedules and conducted periodic building condition surveys but did not incorporate the information into a comprehensive capital plan to prioritize and fund capital projects and purchases.
In addition, the District’s preliminary plan for using American Rescue Plan Act (ARPA) funds includes using about $11.2 million to pay for recurring operational expenses, resulting in a projected budget gap of about $3 million in 2025-26. A comprehensive multiyear financial plan would help decision makers fully evaluate the long-term impacts and sustainability of using ARPA funds.
- Develop and adopt comprehensive written multiyear financial and capital plans.
District officials agreed with our recommendations and indicated they planned to initiate corrective action. Appendix B includes our comments to issues raised in the District’s response.