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Sheridan SD 48J audit finds no formal findings; board urged to build reserves
Summary
An audit presented to the Sheridan School Board reported no formal findings. The report showed a $223,000 net loss on a full-accrual basis (largely depreciation) and an operating general-fund balance roughly equal to one month of operations; auditors and staff encouraged growing reserves toward a two-month target.
An audit presented to the Sheridan School Board found no formal audit findings and reported generally accurate financial reporting, the auditor told the board.
Cori, who spoke to the board during the audit review, said, “We didn't have any audit findings this year,” and praised the district's business manager for streamlining processes and keeping reporting timely. The presentation included a review of federal single-audit thresholds and routine journal entries the district made for compliance reporting.
On an accrual basis the district recorded a net loss of $223,000, which the presenter attributed largely to depreciation. On the budget basis used for the general fund, the auditor said the fund balance increased and reported an ending general-fund balance the presenter described as roughly $1,300,000, which she said represents about 8 percent of the district’s annual budget — roughly one month of operations.
Board members asked what constituted a healthy reserve. The presenter recommended a target informed by the Government Finance Officers Association: about two months of operating expenditures. She clarified that the two-month guideline refers to operating (general-fund) cash available for day-to-day operations and does not include capital projects or debt service.
The board did not take formal fiscal action during the audit presentation; the report will remain part of the district’s public financial records and inform budget planning during the next fiscal cycle.
