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Audit shows about $3.3M of favorable variances; finance staff warns some gains may be temporary
Summary
The district received an early audit with a clean opinion and roughly $3.3 million of favorable variances (taxes, EIT, interest and grants); finance staff cautioned many increases are timing or one‑time items and will be reflected in the March five‑year projections.
Mister Ghirboni opened the finance portion of the meeting and handed the audit presentation to Don, who summarized the district’s fiscal year results and several one‑time or timing‑related gains.
Don told the committee the audit showed roughly $3.3 million in growth to fund balance driven by multiple sources: about $188,000 additional real‑estate tax collected (including interim bills), roughly $318,000 more in earned income tax receipts, and approximately $1,036,000 more in interest revenue than budgeted. He said a $1,000,000 land‑sale journal entry had been posted to move proceeds into the capital account and that the funds were in the proper account after audit adjustments.
Don highlighted other notable items contributing to the positive variance: a $202,000 Computer Buy Act receipt, a $70,000 charter school reimbursement, roughly $304,000 in transportation subsidy above budget tied to about 45 routed students attending charter/nonpublic schools, a final ESSER payment near $109,000, an ARP homeless grant refund of about $85,000, and a final environmental grant payment near $229,000. He emphasized the district received a clean single audit (federal programs) and a clean regular audit.
Committee members asked follow‑up questions on how much of the additional revenue should be considered recurring versus one‑time. Don said he plans to roll down elevated interest expectations in the budget projections as market rates decline and will present a rough draft of the budget gap at next month’s meeting with a more detailed five‑year plan in March.
Assessment and tax base issues also drew committee attention. Don flagged a South Mall parcel whose assessed value dropped from $13.8 million in 2019 to $7.6 million most recently, a decline he estimated had reduced potential tax revenue; he said he will press the county commercial appraiser to review the parcel and may pursue a reverse assessment appeal if warranted.
Next steps: Don will present a draft budget gap next month and the five‑year financial plan (MFP) in March; staff will continue to monitor one‑time receipts and adjust projections accordingly.
