Board corrects accounting errors, revises FY26 budget and requests AFR revision after audit variance

Hackberry Elementary School District #3’s governing board on Sept. 9 reviewed a financial report that identified a $78,000 variance between fund balances and cash balances traced to revenue mis-postings under the prior administration and approved a set of financial corrections and budget updates.

Business Manager Sam Dell presented the financial report (ending July 30, 2025), explaining that after manual corrections the report now reflects accurate balances. Dell reported cash on hand grew 2% year-over-year and that 31% of the FY26 budget remained unencumbered. He reported a current budget capacity of $245,000 but noted approximately $100,000 will be needed for classified staff wages.

The board moved and approved a FY26 expenditure budget revision to incorporate post-legislative changes, an updated tax rate, audit-service alignment, final federal grant allocations and additional capital budget capacity. The motion to revise the FY26 budget passed 3-0. Separately, the board approved a motion requesting revision of the FY24 Annual Financial Report after confirming revenue posting errors between FY24 and FY25; that motion also passed 3-0.

Board members were informed that the corrective action plan addressing 41 Auditor General findings has been completed and uploaded and that supporting documentation had been submitted to the Auditor General’s Office; the board awaits confirmation. Outstanding supporting items include documents such as 2023 conflict-of-interest forms still being located.

The board asked administrators to continue documentation and to report updates to the Auditor General’s Office as responses are received.