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East Central ISD receives clean 2023–24 audit; auditors, staff review fund balances and budget variances
Summary
External auditors delivered an unmodified opinion on East Central ISD’s 2023–24 financial statements and on federal programs; trustees were briefed on fund balances, budgetary comparisons and specific line-item variances.
Derek Walker of Coleman Horton & Company presented the district’s annual financial audit and told the board auditors issued an unmodified (clean) opinion on the 2023–24 financial statements and on federal-program compliance.
Walker said the district received the highest-level assurance auditors provide and that the single-audit review of federal programs — required because the district received about $17 million in federal funds — identified the child nutrition program as a major federal program and produced no reportable instances of noncompliance or internal control deficiencies.
The nut graf: the audit presentation included a review of major fund balances and a budget-to-actual comparison; trustees were given specific totals and cautioned about fund categories that are restricted for particular uses.
Walker reviewed fund balances and notable items: the general fund’s ending fund balance was presented as approximately $27,500,000 after a decrease of about $1,800,000 for the year; the debt service fund had an ending fund balance near $12,400,000 after an increase of about $2,200,000; and the capital projects (bond) fund had an ending balance presented near $111,000,000 after a reported increase of about $53,000,000 (reflecting bond proceeds received but not yet spent). Combined ending fund balance across funds was presented near $151,000,000.
On budgetary comparison, Walker said total revenues were lower than some original budget estimates while total expenditures were materially under budget overall; he highlighted two budget overexpenditures: debt-service function (function 71) tied to an audit adjustment for a lease payment, and child-nutrition (function 35), which reflected program activity.
Walker also noted one internal-service fund (health insurance) closed the year with a negative balance and that management and trustees should monitor and, if necessary, transfer general-fund resources to correct the negative balance.
Ending: The auditor’s presentation concluded with the firm’s offer to answer questions and district staff indicated they will continue to monitor and report on fund balances and budget variances; no board approval action on the audit was recorded in the provided transcript segment.
