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Audit Objective

Determine whether the Board and District officials effectively managed financial condition.

Key Findings

• For the last three completed fiscal years (2015-16 through 2017-18) surplus fund balance exceeded the statutory limit by $1.15 to $1.83 million or 5.3 to 8.5 percentage points.
• The District has generated operating surpluses totaling approximately $1.5 million over the last three fiscal years. Although total budget variances were generally reasonable, District officials failed to use surplus funds in a manner that benefits the taxpayers and reduces the surplus fund balance.
• District officials have not developed a comprehensive multiyear financial plan.

Key Recommendations

• Reduce the surplus fund balance to within the statutory limit and use the surplus funds to finance one-time expenditures or needed reserves, pay off debt or reduce property taxes.
• Develop a comprehensive multiyear financial plan.

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