The Taylor County School District's financial condition continued to decline during the 2007-08 fiscal year.

That's the first finding in the Florida Auditor General's report.

The newly released audit shows the General Fund unreserved fund balance was a deficit $1,405,151.22 and total fund balance was a deficit $1,136,989.86 at June 30, 2008.

The summary report disclosed that the district's basic financial statements were presented fairly, in all material respects, in accordance with presribed financial reporting standards.

The audit also points out several material weaknesses, including: having insufficient resources and needing improvements on procedures and the accuracy of accounting records.

Taylor County resident Beverly Sunderland said, "I hate to see them go through what they're going through. It takes money to give the kids of Perry and all counties the quality education that they need."

The Taylor County Schools Finance Director the district is on the road to financial recovery and says all audit recommendations have either been corrected or are in the process of being corrected.

Officials say without the five percent salary cuts recently imposed, the district would have a $390,000 (1.73%) positive fund balance by the end of this school year.

Without the pay cuts, the finance director says they expect a $812,000 (3.5%) positive balance.

To view the audit, go to www.myflorida.com/audgen. Under "What's New, Released Reports" click on by Entity Audited. Go to District School Boards, then scroll down to 2009-171 Taylor - Financial, Operation, and Federal Single Audit.