Richland CFO says district improving fund balance despite State Auditor’s Office finding

Richland School District Chief Financial Officer Travis briefed the board on the district’s fiscal condition, reporting an improvement in the fund balance from approximately $1.3 million to about $3.1 million year‑over‑year and an enrollment realization of roughly 98.76% of the budgeted student count that produced an estimated $1.7 million revenue shortfall.

Travis said the district is projecting an expenditure‑to‑revenue ratio near 97.98% (an "A" under OSPI grading standards referenced by staff) and reiterated that the district is building fiscal resilience under a newly adopted financial framework. He told the board that the State Auditor’s Office (SAO) issued a finding based on a March fund‑balance comparator and that had the district taken a conventional interfund loan (as done in some prior years) the March days‑of‑operation metric would have been higher and likely avoided the finding. "We did not need to do it," Travis said, defending the district’s choice not to take a loan solely to avoid an audit finding.

Board members and administrators discussed that SAO has increased the consistency and number of findings statewide; several board members expressed support for the district’s conservative approach and for communications to legislators about state funding constraints. The CFO also noted anticipated increases in insurance costs (approximately $700,000) and that a planned state MSOC increase (about $200,000) will not fully cover those insurance increases.

The board received the fiscal update; staff will continue to present budget assumptions and refined projections as staff finalizes the year‑end numbers and prepares budgets for the coming year.