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External audit finds balanced reserves as district faces federal funding cuts
Summary
An external auditor reported an unmodified opinion and $5.4M in cash at year-end while the superintendent warned of a likely substantial cut to Title I funds and other legislative pressures affecting next year's budget.
An external auditor told the Echo SD 5 board that the district closed the fiscal year with about $5.4 million in cash compared with $4.3 million the previous year, and issued a standard (unmodified) opinion on the audit. "The district ended the year with about $5,400,000 in cash," the auditor reported and noted the general fund contains roughly $3.3 million, with about $2.8 million unassigned.
The auditor summarized capital activity (about $83,000 added in capital assets, offset by $513,000 in depreciation) and a net decrease in assets driven by routine depreciation and scheduled debt payments. The presenter recommended uniform documentation for mileage reimbursements: "We ask that you submit a map request ... that shows where you're coming up with that mileage on that reimbursement," the auditor said, citing an IRS auditing concern. The board had no audit disagreements to note.
Superintendent (speaker 2) said the district will adjust internal allocations to accommodate anticipated federal funding changes. "We only get about $56,000 right now as it is from Title I funds," the superintendent said, adding that recent census-driven recalculations of poverty within the district mean federal Title I funding is expected to drop substantially in the coming year. The superintendent said the district may have to shift some Title I-funded positions into the general fund if cuts materialize.
The board thanked the auditor and moved on to other agenda items; no formal action was required on the audit beyond receipt and discussion.
