District financial update: audit returns positive findings; projected deficit reduced

A finance staff member presented the December financial report and final audit results to the board, reporting improved fund balances and a cleaner audit than in recent years.

The presenter said the district’s final audit produced a $355,000 increase to last year’s ending fund balance and removed material weaknesses and significant deficiencies from the audit report for both financial statements and federal awards. “We gained $355,000 in our ending fund balance for last year,” the finance staff member said.

Using December actuals and the improved beginning balance, staff said the projected ending fund balance for the current year could be about 10% (up from a budgeted 6.38%). That change and other savings reduced planned deficit spending from about $5.6 million to a projected $3.9 million, a decrease of roughly $1.6 million, according to the presentation.

Staff noted revenue items that contributed to the improvement: higher-than-expected property tax revenue and an upward adjustment of about $200,000 to the state school fund allocation in post-budget recalculations. The presenter cautioned that excess property-tax receipts are subject to a later state correction process and could be adjusted in May.

On expenditures, staff said savings are concentrated in materials and supplies (including software timing differences) and other line items; equipment or bus purchases were also noted as opportunities for savings. Board members asked for line-item detail; staff said additional breakdowns could be provided after the meeting.

The board received the report; no formal fiscal action was taken at the presentation beyond later agenda votes on related items.