Though the Caldwell County School District’s financial position remains stable, the coming years may mean lean times, an auditor told school board members this week.

Red Howe, of the Murray accounting firm of Howe & Melton, the school district’s auditors for the past several years, presented his audit report for the 2008-09 fiscal year Monday evening.

Howe listed the district’s net worth at the June 30 conclusion of the fiscal year at $15.8 million, an increase of $416,000 from the prior fiscal year.

The district, according to audit data, finished the year with a net income of $416,523, based on total revenues of $19,044,580 and expenses of $18,628,057.

Last year’s net income was $442,235. “There has been no significant change in the financial position of the district since last year,” Howe wrote in his report.

The auditor did point out a $108,000 decrease in interest income on the district’s deposits.

The decline helped create a $185,000 net loss in the district’s general fund.

“That’s a significant impact to the district this year,” he said.

Howe said the district’s financial management practices were “excellent.”

He also cautioned the school board to be ready to deal with shortfalls from the state and federal levels in the coming years.

“The state of the economy and the health of the state budget is really not that good at this point,” he said, citing a $1.2 billion deficit projected for the state in the next four years.

The district’s budget set aside about 7 percent of its funds for contingencies, well ahead of the 2 percent minimum required by law.

In other business:

• Director of Pupil Personnel Bruce McCalister presented information on nonresident contract students for 2008-09 and the current school year.

According to the statistics, 120 Caldwell County residents are attending school in other districts this year, down from 124 last year.

On the other side, 54 nonresidents are attending Caldwell County schools, up from 45 last year.

More than half those students reside in Lyon County.

The majority of county residents attending other school districts go to Dawson Springs or Lyon County, McCalister noted.

• Superintendent Carrell Boyd reported the following personnel action:

Employed: Chasity Davis, substitute teacher/substitute paraeducator; Nichelle Dunbar, color guard instructor; Cynthia Griffith, bus monitor; Ashley Simmons, Bristyn Prowell, Robin Ramsey, Cindy Renae Helms, Rebecca Jane McCormick, Suzanne Hall and Heather Nelson, substitute teachers; Lana Wynn, substitute paraeducator/substitute teacher.

Retired: Sue Lynn Gardner, bus driver.

School district officials extended recognition to Gardner, who frequently volunteered her services for sports competitions and other extracurricular trips. “She’s been a special contributor to our whole school system,” said Boyd.

• The board approved leaves for four employees.

Judy Ortt, CCMS custodian, was given leave without pay effective July 1. Linda Church, bus driver, was given leave without pay, effective Oct. 18.

Mandy Hooks, primary school teacher, was approved for maternity leave, effective Sept. 23. Marie Gray, CCPS paraeducator, was approved for maternity leave, effective Nov. 12.