The Denton school district saw revenue go up and kept the fund balance of its general fund stabilized in the same year that it opened three campuses and faced a possible deficit of more than $2.1 million, according to a recent audit report presented to board members.

Auditor Carl Deaton, of the firm Hankins, Eastup, Deaton, Tonn & Seay, noted that the Denton district was able to finish the fiscal year ending June 30 without a budget deficit and brought in about $3.4 million more in tax revenue because property tax values increased.

The district finished the year with an estimated $51 million in its fund balance for the general fund — the savings a district carries from year to year.

The Texas Education Agency recommends that school districts have at least three to four months of operating funds in their fund balance in case of emergency. For Denton, the optimum range reported placed that figure at more than $56 million.

Deaton said Denton is at about 90 percent of the preferred range and he encouraged the district to maintain a goal of three months in operating expenses in its fund balance.

Deaton said the district’s finances reflected no negative variances or spending over budget for the year.

The audit reflected that the district had yet to receive a portion in state funding for the 2008-09 year. School officials said that a delay in funding is not uncommon and that they anticipate receiving the payment by February.

Deaton said that while the payment was not received in time to be reflected in the 2008-09 fiscal year, it will be recorded in the current fiscal year once received.

“The district had a very strong fiscal year considering the economic times they were in,” said Deaton. “They were able to maintain their general fund balance at the level that they came into this last year with, which is excellent.”

School board trustees unanimously approved the audit report in a Nov. 10 meeting.

Superintendent Ray Braswell said he was pleased with the report’s findings. He said that in a year when the district opened three new campuses and thought there may be a deficit of more than $2 million, it was able to complete the fiscal year, making up the deficit. He attributed the district’s financial stability to the hard work of staff and the stewardship of the school board.

Board member Mia Price said that in spite of the district’s growth, she was pleased to see financial matters handled successfully.

The district’s finances were given high marks with an unqualified opinion, the report states, and there were no areas in which the district was found to be out of compliance.

During the previous fiscal year, Deaton said, the auditing firm had recommended the district keep up with doing employee background checks in a timely manner and renewing teacher certifications. The district’s work to address those issues was improved, he said.

Board President Jim Alexander said the audit report is an important part of the fiscal management process. The findings, he said, confirmed that management policies are working and that the district “is being financially responsible with taxpayer money.” Alexander said the audit reflects a sound financial system.

“We have every reason to be pleased with the fiscal management of this district,” he said. “That’s very good news for all of us.”

BRITNEY TABOR can be reached at 940-566-6876. Her e-mail address is btabor@dentonrc.com.