KPFD reports clean state audit for FY2021–2023; finance committee outlines budgeting refinements

The Kitsap Public Facilities District reported a clean audit for fiscal years 2021–2023 and discussed steps to improve budget reporting and forecasting at its April 28 meeting. The board also heard a sales‑tax rebate summary showing year‑to‑date increases and a recommendation to refine monthly timing of budget line items.

Russ (meeting chair) told members that the state audit returned a clean report for FY2021–2023 and that auditors affirmed the legality of the PFD’s project funding. “We received what's called a clean report,” he said, adding the district will move to financial audits every two years given forthcoming bond and debt service work with the cities of Poulsbo and Port Orchard.

Finance committee work: The finance committee — which includes Treasurer Draper, Director Sean Cucciardi, and Director Anne Blair — has met multiple times this year and recommended more granular monthly tracking of revenues and expenses. Committee members and the executive director noted that dividing annual budgets evenly by 12 months can produce misleading first‑quarter variances when predictable annual charges (for example, a triannual technical refresh or membership dues) fall in a single month. Director Cucciardi recommended timing budgeted charges in the month they are expected to occur to produce clearer reporting.

Sales tax trends and reserves: The executive director presented a sales‑tax rebate summary showing an upward trend over recent months, with March’s rebate about 9.8% higher than March of the prior year and a year‑to‑date increase of 7.2%. The report showed a net month figure after debt service and interest; the director confirmed investment income in the first quarter contributed to revenues and discussed whether to include a conservative interest placeholder in future budgets.

Operating variances and corrective steps: First‑quarter variances in the operations fund were driven by three categories: a missed technology refresh budget line that produced a one‑time communications overage, timing of consulting charges (Department of Commerce feasibility review and audit fees), and an unexpectedly higher membership dues invoice. The executive director took responsibility for the missed budget line and said the finance committee will tighten forecasting and engage Northwest Municipal Advisors on projections.

No formal board action was required for the audit or the finance updates; the board indicated it will continue the more detailed quarterly finance reporting and will meet with the finance committee more frequently ahead of board meetings to align timing and presentation of financial reports.