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Audit Objective

Determine whether District officials effectively managed the District’s financial condition.

Key Findings

• The Board authorized fiscal year-end interfund transfers totaling $1.2 million to be used for a capital project which had not yet been approved by District voters.
• District officials overestimated appropriations from 2015-16 through 2018-19. We project appropriations were estimated more reasonably in 2019-20 but certain account lines continued to be overestimated.
• Unrestricted fund balance ranged between 5.9 and 9.8 percent of ensuing years’ appropriations, exceeding the 4 percent statutory limit.

Key Recommendations

• Discontinue the practice of reducing unrestricted fund balance by making un-budgeted year-end interfund transfers.
• Develop realistic estimates of appropriations.
• Adopt a written plan to use excess fund balance to benefit District taxpayers.

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