Kilgore ISD received and approved a clean audit during Monday monthly board meeting.
“It basically just states that you have complied with all of the rules and regulations that apply to you as a school district,” Lynda Newsome, of Brown, Bronstad, Habenicht & Rosson PC, told the board. “I did not come across anything that would require me to modify my opinion.”
The audit states the district had $93,105,367 in total assets, $58,186,637 in total liabilities and a total net position of $36,953,084.
The district’s overall net income was $2,296,094, Newsome told the board.
Following the presentation, trustee John Slagle noted the numbers are not as nice as they first appear because the increased net position is a reflection of the rescinded homestead exemption being set aside.
While it looks nice on paper, he noted, it is money that could be a liability with a confirmation from KISD Chief Financial Officer Revard Pfeffer.
With total assets in governmental funds of $22,093,125, the audit shows KISD has $7,069,220 in unassigned general fund (of a $17,849,511 total fund balance).
In the general fund, Newsome said, there were no negative numbers, meaning the district did not overspend in any function.
“You did a good job of keeping your expenditures within your budget or actually under budget,” she said.
The audit includes the food service and debt service budgets, which she noted both stayed under their budgets without any negative variances.
Of its total tax collection for the fiscal year ending Aug. 31, 2017, Newsome said, KISD collected $19,757,868, which is a 97.3 percent collection rate.
“That’s a really good collection rate,” she said. “Kilgore’s always had the highest rate of all the schools I’ve audited.”
Another $3 million of tax money has yet to be collected, though.
Also included in the audit were another two opinions based on the district’s status as a governmental entity that receives more than $750,000 in federal money.
The second and third opinions dealt with compliance and internal control and neither found any material noncompliance or internal control weakness, Newsome said.
“That gives you three auditors’ opinions that are all clean opinions,” she said.
The questions included stating the audit is an unmodified opinion, did not have any instances of material weaknesses in internal controls over financial reporting and compliance or any disclosure of material noncompliance for grants, contracts and laws related to local, state and federal funds.
“Those are the three questions that summarize to the [Texas Education Agency] that you had a clean audit,” Newsome said.
Slagle emphasized with confirmation from Newsome that the audit was just for compliance and was not a forensic audit.
After a motion from Board Vice President Scott Montgomery and a second from trustee Joe T. Parker, the board approved the audit unanimously.