[read complete report - pdf]

Audit Objective

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

Key Findings

• The Board and District officials overestimated appropriations by a total of approximately $11.6 million from 2016-17 through 2018-19 and annually appropriated an average of $3.3 million of fund balance that was not used to finance operations.
• As of June 30, 2019, surplus fund balance totaled approximately $5 million and was 9 percent of 2019-20 appropriations, exceeding the statutory limit by approximately $2.7 million.

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 to comply with the statutory limit and use the excess funds in a manner more beneficial to taxpayers.

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