[read complete report - pdf]

Audit Objective

Determine whether the Board and District officials effectively managed the District’s general fund financial condition.

Key Findings

As of June 30, 2017 unrestricted fund balance exceeded the statutory limit by approximately $1.2 million, or 4 percent.

• The Board annually adopted budgets with overestimated appropriations averaging $2.8 million (10 percent).
• District officials overfunded two reserves that totaled about $5.3 million and did not use most of the debt reserve funds.
• Taxpayers might have realized $775,000 in cumulative tax savings if the Board maintained the same 2013-14 tax levy and used reserves to pay for related expenditures.

Key Recommendations

The Board and District officials should:

• Ensure unrestricted fund balance is in compliance with statute.
• Adopt realistic budgets based on historical or other known trends.
• Review reserves to determine whether they are necessary and reasonably funded and use the debt reserve funds to pay related debt.

District officials disagreed with us in many instances; however, they indicated they plan to take corrective action. Appendix B includes our comments on the issues raised in the District’s response letter.