More details: Visit websiteAccording to a statement from the school district requested from Source ONE News, the root of the crisis lies in a critical error in the district's financial management practices, particularly in how revenue is recorded and handled. School districts are required to adhere to a revenue accrual system, recording revenue in the fiscal year it is earned, regardless of when the cash is actually received. This system ensures that funds are accounted for accurately across fiscal periods.
However, in the case of Moses Lake, this system was mishandled. Revenue from grant funding, which was correctly earned and recorded in the fiscal year it was due, was not adjusted when the actual cash was received in a subsequent period. This oversight led to the same revenue being recorded twice, falsely inflating the district's financial position by millions of dollars.
Compounding the financial woes, the district also reported student enrollment figures approximately 200 students higher than actual numbers. This discrepancy prompted the state to reclaim about $2 million from Moses Lake School District's funding throughout the 2024 calendar year, further straining its budget.
The combined impact of these errors has been devastating. The district, forced to reassess its financial standing and correct the inflated records, found itself in a position where drastic cost-cutting measures became inevitable. The decision to lay off 100 teachers was made as a last resort to balance the suddenly depleted budget, sending shockwaves through the educational community and beyond.
The school district would not tell Source ONE News whether those responsible for the error have been disciplined or terminated as it does not comment on personnel matters.
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