Audit Objective
Determine whether the Board and District officials properly managed finances by ensuring budget estimates and surplus fund balance were reasonable.
Key Findings
- The Board overestimated appropriations by a total of almost $3.2 million (7 percent) over a three-year period.
- As of June 30, 2018, surplus fund balance totaled $2.4 million, 15 percent of the 2018-19 budgeted appropriations, exceeding the statutory limit by more than $1.8 million.
- Despite the District generating operating surpluses totaling almost $2.2 million during the 2015-16 through 2017-18 fiscal years, the Board raised real property taxes by $50,000 during that same period.
Key Recommendations
- Adopt annual budgets that include reasonable estimates for appropriations.
- Reduce surplus fund balance to within the statutory limit and use excess funds in a manner more beneficial to taxpayers.
District officials agreed with our findings.