[read complete report - pdf]

Audit Objective

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

Key Findings

• Appropriations were overestimated by $3.2 million over a three-year period.
• Unrestricted fund balance exceeded the statutory limit by more than $950,000, or five percentage points, as of June 30, 2017.
• Three reserves totaling $3 million were overfunded.

Key Recommendations

• Adopt budgets that include reasonable estimates for appropriations and use of appropriated fund balance.
• Reduce the unrestricted fund balance to within the statutory limit and use excess funds to fund onetime expenditures and needed reserves or reduce property taxes.
• Adopt a more comprehensive reserve policy and review reserves to determine whether the balances are necessary and reasonable.

District officials generally agreed with our recommendations and indicated they planned to initiate corrective action.

¹ Appointed February 26, 2018