[read complete report - pdf]

Audit Objective

Determine whether the Board and District officials properly managed fund balance.

Key Findings

• The Board overestimated appropriations by more than $5.7 million over a three-year period (6.75 percent), resulting in annual operating surpluses and a fund balance increase of more than $2 million (52 percent).
• As of June 30, 2017, unrestricted fund balance totaled more than $3.3 million and was 11 percent of the 2017-18 budgeted appropriations, exceeding the statutory limit by more than $2.1 million, or 7 percentage points.
• Despite the significant amount of accumulated fund balance, the Board annually increased the tax levy and did not take steps to reasonably fund reserves.

Key Recommendations

• Adopt budgets using realistic estimates for appropriations and the amount of fund balance to be used to fund operations.
• Reduce unrestricted fund balance to within the statutory limit and use the excess funds in a manner more beneficial to residents.

District officials disagreed with certain aspects of our findings and recommendations, but indicated they planned to initiate some corrective action