Finance director outlines year-end close: May statements presented, office to switch to modified accrual reporting for audit

Business office staff presented the district’s May financial statements and outlined work needed to close the fiscal year and prepare for the annual audit.

Mr. Chris (business office) said the May statements show the General Fund tracking as expected and noted ongoing activity in food service that appears on special revenue funds. He explained that June and July financial activity are affected by timing differences — for example, payroll cost allocations — and that the business office will stop issuing separate monthly cash-basis financial statements after May. Beginning with the audit close, the office will prepare financials on a modified accrual basis used for government reporting. Staff said the auditors will be on site in September and the audited annual financial statements typically are finalized after the audit; the audit results often are presented at an October work session.

Committee members asked whether the full annual statements would be presented in a work session rather than a formal board meeting; staff confirmed the auditors’ presence in September and said the finalized statements usually come to a fall work session. Staff also advised trustees that the annual report contains extensive footnotes and supplementary information and suggested trustees review it in smaller sections if desired. The committee was told the first combined July/August monthly report will be provided to the Finance Committee at its September meeting.

No action items or votes were recorded on the financial statements themselves; the discussion functioned as an update and timeline for year-end close and audit preparation.