Audit finds annual costs could be cut

Staffing would be included in cuts.
By AMANDA GARRETT
VINDICATOR TRUMBULL STAFF
WARREN -- A state performance audit requested by Warren City Schools shows how $508,000 could be saved annually.
Superintendent Kathryn Hellweg said the school district has already acted on several recommendations in the report, which covers performance between June 2005 and February. The audit covered purchasing facilities, food services and risk management.
"We worked closely with the auditing team to implement some of the suggestions during the course of this past school year," she said.
Savings
The savings, the audit report explains, could come from cutting some staffing -- especially custodians, reducing utility costs, developing a purchasing manual with policies, and hiring a risk management consultant.
Staffing: Auditors found Warren school buildings' square footage per full-time maintenance worker is higher than other similar districts; this will decrease when its new schools are built but will still be higher than similar schools.
Right now, the report states city schools could reduce at least seven full-time custodians. When the new school buildings are ready, an additional two full-timers could go. The savings from this could total $286,000.
Hellweg, however, said the age of current buildings combined with the new building projects require more custodial staff. The district will evaluate staffing more thoroughly when the new buildings are completed, she said.
The district also could reduce staffing in its warehouse if that operation is discontinued and the transition to a just-in-time delivery system begins. Cutting staffing here would save $47,000; eliminating an order clerk's job would save another $43,000.
The district is evaluating the warehouse operation, Hellweg said. It is moving away from storing foods and instead serving fresh products to students.
Purchasing: In some instances the district is maintaining delinquent accounts and some suppliers insist on cash payment at the time of delivery, according to the report. The district is dealing with these problems by developing a comprehensive purchasing manual, centralizing purchasing orders under the executive director of business services and using a purchasing card for items under $1,000.
Risk management: One of the greatest successes to come out of the audit was in the risk management area, Hellweg said. The district saved $80,000 by complying with training and policy requirements from the Bureau of Workers Compensation for a Safe and Drug-Free Workplace.
The school district's costs for liability and umbrella insurance is lower than similar districts, with similar or better coverage levels, according to the audit.
Utility costs: To save on energy costs the district joined a consortium, the Ohio School Council's electric program, Hellweg said.
Not done
Items requiring further study, the report says, are:
The district was unable to explain or document factors "driving the significant increase in base salaries" in fiscal 2004-05. Hellweg said salaries are done on a contractual basis and the district will look into the savings whenever contracts come up.
The idea of a central kitchen for the new schools, rather than kitchens in each, might decrease labor hours, utility costs and overhead, according to the report. Hellweg said she would be open to a central kitchen as long as it doesn't reduce food quality. "Good nutrition is part of a good education," she said.
The schools requested the audit prior to Hellweg's tenure at Warren, and before the school board hired a new business manager to evaluate the district's financial well-being. The auditors evaluated the district against selected peer school districts in Barberton, Hamilton and Zanesville based on demographics and input from district personnel.
agarrett@vindy.com