Sharyland ISD finance staff says 2023–24 audited financials show positive fund balances; capital projects mostly funded

Sharyland ISD held a budget workshop in which district finance staff reviewed the district’s audited 2023–24 financial statements and reported positive net changes in fund balances across the general fund, the child nutrition fund and debt service.

The finance presenter said the general fund showed “a net change in fund balance ... a little over a million dollars, 1 million a hundred and 10 thousand 1 80,” and that the district began the 2023–24 year with a fund balance reported as “$37,000,002.83” and ended the year with an increased balance as reported in the audited numbers. The presenter added the child nutrition program produced a positive net change in fund balance of 38,882 and the debt service fund showed a positive net change (reported as 974, $6.42 in the presentation). The presenter emphasized that those audited fund-balance figures are what “TA” will use to calculate fund-balance requirements for first‑rating purposes.

The presenter described the district’s calculation method for the required fund balance: the auditor’s expenditures (less capital projects) divided by 365 and multiplied by 75 days, producing a cited requirement figure of 21,041,005. That requirement was compared against what the presenter described as the district’s “inside fund balance” (reported during the meeting as 37,855,566) and an “assigned fund balance” (reported as $537,008.31), with the presenter explaining the assigned portion represents inventory and other carryovers.

District staff noted two budget amendments already approved for the current year: one to carry forward capital projects not completed in 2023–24 and one to cover certain vehicle and purchase requests (reported in the workshop as roughly $1,296,035). Those adjustments left a working available fund-balance number the presenter identified (spoken as a multi-part figure during the presentation).

On capital projects, staff reviewed four projects funded from general fund balance. The special education project was described as slightly over budget (the presenter reported a negative variance of about $98,007) but expected to finish this year with offsetting grant funds. The generator-room project had a remaining encumbrance noted as account 400104; staff expected completion and some savings. The PHS multipurpose project was completed under the original $500,000 budget, and the presenter said that project’s final cost left approximately $340,005 in savings after accounting for a $151,004.73 line item. Staff clarified the multipurpose room conversion reused existing gym space and remains in use by cheer, dance, JROTC and color guard; a previously discussed build‑out above the fine arts area was described as unsuitable for conversion.

On debt management, staff referred to a previously passed defeasance resolution and said the district’s financial adviser was evaluating outstanding debt to identify payoff options that would produce taxpayer interest savings; in recent years defeasance payments cited in the workshop ranged from about $1.8 million to $2 million.

Staff also reviewed operating funds including child nutrition and tax collections. The presenter noted the child nutrition fund had collected nearly $5 million to date and had March claims of about $550,000; staff projected finishing the year in a positive position for that fund. For tax collections, staff reported they had collected most anticipated revenue and expected late payments to cover remaining budgeted receipts.

Board members and staff asked clarifying questions about the fund-balance-day calculation and inventory/assigned balances; staff said they would provide a precise days‑on‑hand figure to the board. No formal budget decisions were taken at the workshop; staff said they will return with updated month‑end reports and any required budget amendments.

Ending: The reviewer told trustees staff expect to return to the board with March data and other updates and reiterated that the audited 2023–24 fund balances are the basis for the state agency’s first‑rating calculations.