The Ottawa school districtís financial reports and bookkeeping practices received a clean bill of health, according to an independent 2012 audit.

The audit of the districtís budget, including individual funds and other financial statements for the year ending June 30, 2012, contained no deficiencies, according to certified public accounting firm Agler & Gaeddert Chartered, 234 S. Main St., Ottawa. The 2012 audit covers the districtís budget for the 2011-2012 school year.†

The audit showed the school districtís general fund budget dropped about $103,000 from $14.5 million in 2011 to $14.4 million in 2012.

ďFor a general fund upwards of $14 million, $103,000 is not a sizeable difference,Ē Harold Mayes, a certified public account with Agler & Gaeddert, said Monday night during his review of the audit with the school board.

State aid increased about $321,000 from $9.958 million in 2011 (which represented the 2010-2011 school year) to $10.729 million in 2012. State assistance for special education also increased $160,000 from $1.61 million last year to $1.77 million in 2012.

But those gains were counter-balanced by a nearly $450,000 drop in federal grants between 2011 and 2012, the audit showed. The district, however, does receive other federal monies not recorded in the general fund that total some $2.1 million for such programs as school lunches and special education.†

The audit showed the district spent about $150,000 more on instructional salaries from 2011 to 2012, Mayes noted.

ďIím glad to see we are spending more on instructional [salaries],Ē Susan Ward, board president, said.

The district eliminated about $1.1 million in debt by refinancing some of the districtís bonds in 2012 to take advantage of lower interest rates, Mayes said.

With regard to federal grant funds, Mayes said, the district was in compliance with all federal requirements. And with regard to financial reporting, Mayes said the audit found no deficiencies with internal controls.

Doug Carder is senior writer for The Herald. Email him at dcarder@ottawaherald.com