PONDER — The Ponder school district added more than $880,000 to its general fund balance last fiscal year, a recent audit report released by district officials indicates.

Funds were added to the fund balance as a result of a revenue increase attributed to district growth of 40 students during the 2008-09 school year, Ponder school officials have said.

“We work hard to manage the money in a transparent and forethought way, and this audit reflects that that is what we’re doing,” Superintendent Bruce Yeager said. “We’re very pleased that financially we continue to operate in good financial condition.”

Because of a tough economy that has slowed the housing market, Yeager said, the district conservatively approached how it would budget its funds to cover expenditures for the 2008-09 year. Fortunately, the district avoided any unforeseen expenses and saw an increase in enrollment, he said. That brought more money to the district.

The Texas Education Agency recommends that school districts have at least three to four months of operating funds in their fund balances — the savings carried from year to year — in case of an emergency.

The audit shows that Ponder began the 2008-09 year with $9.47 million and finished with about $10.36 million. According to the audit, it is recommended that Ponder have an optimum fund balance and cash flow of close to $6.7 million for emergency operating costs.

“We felt the results of the audit were extremely favorable to the Ponder Independent School District,” board member Todd Nichelson said.

The audit shows that Yeager and his staff are ensuring that accounting procedures are carefully attended to and accurate, Nichelson said.

Since natural gas production has helped boost district property values, Yeager said, Ponder has been able to keep tax rates low for homeowners. However, because Ponder is a “property wealthy” district, it is required to return money to the state to share with “property poor” school districts. The audit shows that Ponder returned more than $2.5 million during the 2008-09 year.

The district’s audit was conducted by independent firm Hankins, Eastup, Deaton, Tonn & Seay and tracked district finances through Aug. 31, 2009. The report was presented to board trustees last month.

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