The district's unrestricted fund balance has exceeded the
statutory limit for the past three fiscal years by amounts ranging from $1.5
million to nearly $3 million. District officials have also allowed the
unemployment reserve balance to accumulate to an excessive level and have not
used funds from the retirement contribution reserve as budgeted.
Key Findings
•Although the Board appropriated fund balance each year to
help finance the budget, none of it was needed because the Board and District
officials overestimated appropriations each year.
•The District’s unrestricted fund balance has exceeded the
statutory limit for the past three fiscal years by amounts ranging from $1.5
million to nearly $3 million.
•District officials have allowed the unemployment reserve
balance to accumulate to an excessive level and have not used funds from the
retirement contribution reserve as budgeted.
Key Recommendations
•Ensure that budgets include realistic estimates of revenues
and appropriations to avoid levying property taxes at a level greater than
needed and that estimates in the annual budget for the planned use of fund
balance are accurate and reasonable.
•Maintain unrestricted fund balance within the statutory
limit, and develop a plan to reduce unrestricted fund balance in a manner that
benefits District residents.
•Ensure that reserve fund balances are maintained at
reasonable levels and used as budgeted, and take appropriate action, in
accordance with applicable statutes and Board policy, to reduce any reserves
with excess funds.
The complete audit report can be viewed HERE.
This is the response from the school district:
