Determine whether the Board and District officials properly managed fund balance and reserves.
- The Board and District officials can better manage fund balance and reserves.
- As of June 30, 2019, surplus fund balance was nearly $2.9 million (14 percent of the 2019-20 budgeted appropriations), exceeding the statutory limit by more than $2 million or 10 percentage points.
- The Board and District officials improperly restricted $2.2 million in two reserves and the agency fund.
- Reduce surplus fund balance to comply with the statutory limit and use the excess funds in a manner more beneficial to taxpayers.
- Return money improperly restricted to surplus fund balance in the general fund.
District officials agreed with our findings and recommendations and indicated they have initiated, or planned to initiate, corrective action.