Annual audit clean but trustees warned of a multi‑million dollar deficit and year‑ahead cuts

Liberty Hill ISD's external auditors presented the district's FY24 Annual Financial Report and gave an unmodified (clean) opinion, but administrators told trustees the district faces near‑term budget pressure requiring multi‑million dollar adjustments.

Audit manager Clayton Rogers of Patillo, Brown & Hill said at the meeting that "everything was good" and that the auditors rendered an unmodified opinion on the financial statements and a clean compliance opinion for federal programs. Rogers highlighted that the general fund's unassigned fund balance was around $12.5 million and that the audit showed expected decreases consistent with the board's ongoing budget conversations.

District staff told the board they currently expect roughly a $7.5 million deficit and have set a planning target of a $4.6 million expenditure reduction for next year (not including potential salary increases). Snell and finance staff said strategies under review include hiring freezes on vacated positions, reducing central office costs and travel, audits of master schedules, transportation efficiencies and exploring revenue options such as supply fees, athletics fees, advertising and partnerships under proposed state programs.

Trustees pressed for transparent modeling of cuts versus revenue options and clarity on impacts to classroom staffing, hourly employees and student programs. Staff said deeper analysis and town halls will follow, and that final budget adjustments are expected through the spring as property valuations and demographic reports are finalized.

The board voted to accept the FY23–24 annual financial report as presented; auditors made no reportable findings requiring board action.