THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Wednesday, January 29, 1997           TAG: 9701290463
SECTION: LOCAL                   PAGE: B3   EDITION: FINAL 
SOURCE: BY NANCY YOUNG, STAFF WRITER 
DATELINE: CHESAPEAKE                        LENGTH:   43 lines

GLOWING FINANCIAL REPORT PLEASES SCHOOL BOARD

An independent auditor has given the school district's finances a clean bill of health - so much so that the auditors couldn't find anything to improve upon.

``This is the best report we can make for you,'' said Elizabeth Foster, a partner in the firm that conducted the audit, KPMG Peat Marwick LLP, in Norfolk. She presented the firm's findings for the fiscal year 1995-96 at the School Board meeting Monday night.

``This proves we've got a good system set up,'' said school board member L. Thomas Bray, who added that he especially appreciated it because it allowed the School Board to concentrate on other issues, such as curriculum.

``We don't have to spend time wondering if we're doing our finances right,'' Bray said.

Superintendent W. Randolph Nichols said it was unusual for an auditor's report to contain no recommendations for improvement - a statement with which Foster agreed.

``It doesn't happen very often that we scratch our heads at the end of the audit as to what to put in a management letter,'' Foster told the board.

Among other things, Foster cited that the district has a history of ``clean opinions'' - meaning that ``no significant adjustments need to be made in order for the financial statements to be presented fairly.'' She said the school system has been responsive to the firm's suggestions in the past and has a history of returning surplus money to the city.

``The school system has a history of living within its means,'' Foster told the board.

For the taxpayer, Bray said, the report represents an assurance that the school district's budget - which makes up more than half of the city's budget - is in good hands.

``Their tax dollars are being spent wisely. We're not being flamboyant, but we're doing what we need,'' Bray said.

The report also provided assurances that Chesapeake won't suffer the same fate that befell Virginia Beach in 1995, when the school budget showed a $12 million deficit, Bray said.

``We've got too many checks and balances, so that won't happen,'' he said.

KEYWORDS: AUDIT CHESAPEAKE SCHOOLS CHESAPEAKE SCHOOL BOARD