Nebo School District's financial position is better than it was a few years ago, but an independent auditor says the district still has a few areas that need improving.

Independent auditor Kim Peterson, of Peterson, Odgen and Associates, told district officials Wednesday that the district is in good financial shape. He said the audit revealed that the district is following proper accounting procedures and guidelines pertaining to proper use of federal and state money.He said district revenues were up from last year but less than anticipated. Errol Smith, business administrator, said the reason for the revenue shortfall is because the district has not received some deferred funding from the state.

"We know it's coming but it doesn't belong to the district until it's been received," Peterson said.

Peterson said that even though the district is in good financial condition, he recommended changes in certain areas. The main area of concern is the amount of money some schools are keeping in individual checking accounts. Two schools had more than $100,000 in various accounts.

Peterson said some expenditures have been made from these accounts without proper documentation. He said enforcement of proper record-keeping policies will protect principals and office personnel.

"The policy really needs to be adhered to because there are so many dollars going through that system," Peterson said.

District officials said those schools that had more than $100,000 in accounts have since put some money in district funds. Principals have been notified that office personnel need to keep better documentation of expenditures and make more timely bank deposits.

For the past few years district officials have been concerned about continual losses in the school lunch fund. Peterson said school lunch is still losing money, but not as much as in years past. The school lunch fund showed a $300,000 deficit. But Peterson noted that one reason for this year's deficit is the loss of $236,000 in federal funds.

"You've turned the corner and you're heading in the right direction, despite what the bottom line shows," Peterson said.

Peterson also said the district slightly overspent its special transportation budget and does not have sufficient funds in its retirement account. He said the problems are not major, but should be addressed to prevent them from becoming so in the future.

"The more nit-picky we get on little items, the less big items we were able to find," Peterson said. "So for the most part things look good."