Preliminary audit shows revenue/expenditure variance; board warned of roughly $700,000 projected deficit

District finance staff gave a fiscal update that summarized preliminary audit findings and current budget projections. The auditors' preliminary numbers for 2022-23 show revenues exceeded the budget by about $400,000 while expenses were about $1.5 million over budget; final audit figures will be issued after the auditors deliver the draft expected April 18.

Administrators said the district is projecting a preliminary deficit of roughly $700,000 for the current year and outlined efforts to reduce that gap through close line-by-line reviews with budget managers. "My goal in the next month is to reduce that so then when I speak to you in May I will be able to provide a better update," a finance presenter told the board.

Staff also explained Act 1 millage indexing and its local effect: one mill on an assessed value of $100,000 yields approximately $10 in local revenue under the old-assessment example cited during the meeting. Board members discussed fund balance targets (the presenter noted a recommended balance of 5'8%) and the possibility that state funding actions could change the district's eligibility for supplemental aid.

The presentation covered audit scheduling, the risk of being labeled high risk if audit deadlines are missed (which increases audit sampling), and next procedural steps: a draft audit is expected and the finance office will bring updated projections to the board at the May meeting when the preliminary budget will be considered.