The Troy City Schools received good news in its 2011 external audit of finances.

Tonya Mathis, auditor, presented the report to the Board of Education on Monday and said the district receive the highest level or recommendation in the review of federal and general programs.

Highlights of the report included the fact that the district ended fiscal year 2011 with cash reserves of $6.779 million and capital lease proceeds of $15 million. The district had $10.177 million in earmarked assets and another $6.276 million in unrestricted assets.

“Your total expenses were $21.4 million,” Mathis said. “Of that, $4.5 million was funded by the taxpayers of Pike County, or 21 percent.” Other sources of funding included $1.5 million in fees and fines; $12.6 million in operating funds; and $622,000 in capital grants.

Net assets were reduced by $1.5 million over the prior year. “But of that, you purchased nearly $1 million in Smart boards for classrooms.”

Mickey Daughtry, CFO for the school district, said the district also has approximately 5.1 months’ operating expenses on hand in cash reserves. “At the time we completed the audit, we had 4.4 months’ expenses,” he said. “Since that time, we’ve accumulated the ad valorem taxes and we’re up to 5. 1 months.”

Board member Wally Lowery described that as “good news.” “And I think this is the first time we’ve had an increase in sales tax revenues in a year and a half or so,” he said. “This is good news.”

Superintendent Lee Hicks had reported earlier in the meeting that sales tax collections for the district for the month of February were $215,831.55, or a 5.7 percent increase over last year.

In other business, the district approved an $11,195, three-year contract for gaggle.net to provide e-mail hosting services for students and teachers. “This is a self-contained, monitored environment that is safe for students,” said Wayne Hubbard, technology director. “They can host blogs, have digital lockers, email teachers … and post homework assignments.”

Hicks also reported that a committee comprised of faculty, PTO and parent representatives is working to create the master calendar for the 2012-2013 school year.

“They’re voting on it right now, as we speak,” he said. “I let them take the lead on it, and I appreciate their hard work and dedication.

The board approved two personnel items: the retirement of Marilyn Ash, special education teacher at Troy Elementary, effective May 31; and a medical leave of absence for Alissa Jordan, science teacher at Charles Henderson High School, effective April 16.

The board meets again at 5:15 p.m. on Thursday, April 19.