St. George -- Dorchester District 4 schools are in good financial shape, according to the annual audit.

"It is a very good audit report,' said Bob Harper of Harper Poston and Moree certified public accountants. "The district is very sound. It has been managed fiscally very well."

The 2010-11 audit report was presented at the regular board meeting on Tuesday.

The district spent more than $14 million, or 50 percent, of its revenue on instruction, he said.

The only issue was that at times during the year, the district had more than 15 percent in its capital reserve fund. The state recommends that the fund not have more than that.

The problem was the county's and not the district's, because it collected more than anticipated, Harper said. He said it was caused by one business that went bankrupt.

"The county dictates the millage," he said. "They're the ones that made the error. They received more than anticpated."

He said it has been corrected now so that the district will stay within the parameters.

Reach Brenda Rindge at 937-5713 or on Facebook.