The independent auditor is a CPA from a local accounting agency. Recent audits reveal compliance with generally accepted accounting principles and applicable state and federal regulations. A clean financial opinion is desirable to keep public confidence high in the business operations of the district.

Observations and Recommendations

__________________________________________________________________

2.6.1    Observation

An interview with the auditor revealed his confidence in the two people primarily charged with district finances: the superintendent and the business manager. He cited good community support for the bond, school plant and supplemental levies in place through public election. Good internal controls are in place and he has met with key personnel at the schools and district office to review expectations of financial integrity. The auditor is concerned about the disappearance of the fund balance in the last year. He cited higher expenditures than revenue last fiscal year and he understands the enrollment decline has largely contributed to this unfortunate condition. His professional opinion is that the district must undertake immediate action to get out of its deficit financial situation as soon as possible.

Recommendation

The district should implement the auditor’s recommendations of strict business practices to build up the fund balance again.