[read complete report - pdf]

Audit Objective

Determine whether the Board and District officials effectively managed general fund balance.

Key Findings

• The Board overestimated appropriations from 2016-17 through 2018-19, resulting in over $5 million in appropriated fund balance not being used to finance operations.
• After adding back unused appropriated fund balances each year, the District’s recalculated surplus fund balance exceeded the statutory 4 percent limit each of the last three fiscal years ranging from 12.1 percent to 16.7 percent.

Key Recommendations

• Adopt budgets that include reasonable estimates for appropriations and the amount of fund balance that will be used to fund operations.
• Reduce surplus fund balance in a manner that benefits District taxpayers.

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