A recent audit report revealed that Pilot Point school district finances were clean for the 2012-13 fiscal year.
The school district received an opinion signifying significantly sound finances, according to the report prepared by Denton firm Hankins, Eastup, Deaton, Tonn & Seay and presented to the school board last week. No findings of significant deficiencies in internal controls or areas of noncompliance were identified, according to the report.
Results of the audit were as expected by the school board, President Melinda Street said.
“We were pleased with the audit report,” she said.
Reserves for the general fund decreased by more than $8,500 during the 2012-13 fiscal year, according to the report. In an e-mail, Nikki Hamblin — the district’s business manager — wrote that the district planned to use reserves last fiscal year to cover one-time expenditures for upgrades and repairs.
“These enhancements included technology, security, roofing, flooring, playground and athletic facility upgrades and repairs,” she wrote.
Hamblin said the upgrades and repairs included: tile and carpet replacement at Pilot Point High School; middle school roofing repairs; a tractor purchase for grounds maintenance; a bus refurbishment; a multipurpose fieldhouse for visiting football and track teams at Massey Stadium; laptops for all teachers; network enhancements; computer lab additions at three schools; surveillance camera installation; playground canopies at the intermediate school; and track refurbishment at Massey Stadium. She said the projects totaled about $775,000 in general funds.
Pilot Point completed the 2012-13 fiscal year with more than $5.1 million in general fund reserves. Expenditures for the general fund during the 2012-13 fiscal year totaled more than $12.4 million, according to the report.
Reserves for the district’s debt service fund declined by more than $195,000 last fiscal year, according to the report.
Hamblin said that for the past five years the district’s debt service fund, which covers debt obligation expenses, has operated with a budget deficit “with the intentional purpose of spending down a healthy fund balance.” The district finished the year with the fund accounting for more than $1 million in reserves.
“Due to the slow growth in the tax base, the district will need to evaluate their ability to sustain fund balance drawdowns into the future,” she wrote.
Also seeing a decline in reserves was the the district’s child nutrition fund, which decreased by more than $78,600.
At the close of the 2012-13 fiscal year, more than $163,500 remained in reserves for the child nutrition fund. Hamblin said the district also planned for using reserves in the child nutrition fund to support upgrades to the food service program.
In the current fiscal year, Hamblin said, the district looks to operate within the constraints of its revenue estimates and “if there are additional funds added to reserves, they will be reinvested into the district.”
BRITNEY TABOR can be reached at 940-566-6876 and via Twitter at @BritneyTabor.