Is BHUSD facing another budgetary shortfall? A recent audit of the Beverly Hills Unified School District food services department found discrepancies that could mean more dollar woes for the budget totaling over $400,000.

The findings follow a major discrepancy uncovered detailing over reporting of student  enrollment numbers in lunch programs and comes directly on the heels of the resignation of Director of Food Services Maria Hunsaker Feb. 5.

The report, issued by Interim Superintendent of Business Services Mary Anne McCabe, also states that the basic operational accounting system is flawed.

“The major issue is the use of a cash basis accounting system,” said the report. A cash basis accounting system is one that records revenue and expenditures only when cash is actually received. It is recommended by the state that schools operate on an accrual basis, or a system that recognizes revenues when they are both measurable and available to finance expenditures in the current period.

Because of this cash basis accounting system, McCabe uncovered over $150,000 in unreported expenditures.

“This practice has been in practice for the last few years so a true financial picture has not been presented and addressed,” said the report.

McCabe also states that the approved food service budget does not accurately reflect the needs of the department, “grossly understating” supple needs for expenditures such as repairs, technology maintenance, rentals and travel needs.

The result is a $403,938 deficit that will need to be compensated for.

“Any deficit we see in food services will have a negative impact on our general services budget,” said BHUSD Board of Education member Brian Goldberg. “Food services is designed to be cost neutral or a money maker for the district. Any deficit is an encroachment.”

McCabe’s report sites a lack of internal controls and/or appropriate supervision of services as a contributing factor to these budgetary deficits. McCabe states that proper monitoring of vending machine sales and variances in deposits and daily register detail have not been overseen accurately.

“Either previous employees were not qualified, not supervised or something nefarious was going on,” said Goldberg. “The more I see of this, the more I am leaning toward nefarious. This is a problem that has been coming up over and over and over again.”

District staff is currently surveying the budget to determine whether these deficits are just misreportings or actual missing dollars.