[read complete report - pdf]

Audit Objective

Determine whether the Board and District officials ensured that fund balance and restricted funds were reasonable.

Key Findings

District officials:

• Overestimated expenditures by an annual average of $1.2 million (about 7 percent) from fiscal years 2014- 15 through 2016-17.
• Appropriated a total of $1.8 million (3 percent of the subsequent year’s budgeted appropriations) in fund balance from fiscal years 2014-15 through 2016-17 that was not needed to fund operations.
• Overfunded three of the five reserves.

Key Recommendations

• Adopt realistic budgets based on historical or known trends.
• Use appropriated fund balance to fund operations.
• Use excess fund balance and reserves to benefit taxpayers.

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