KISD receives audit report on 2017-18 budget; no issues found

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An external audit report found no issues with the Katy ISD 2017-18 budget, which ended Aug. 31.

KISD received an unmodified opinion—the highest opinion level that can be given—on its 2017-18 budget from accounting firm Whitley Penn LLP. Firm partner Lupe Garcia presented the audit findings to the KISD board of trustees at the Jan. 14 work-study meeting. The report was approved at the board’s Jan. 21 meeting.

According to the presentation, KISD had a net position of -$7.3 million for the 2017-18 fiscal year. This negative number was the result of new accounting rules related to reporting postemployment benefits other than pensions, known as OPEB, such as retiree health care, Garcia said, not Hurricane Harvey recovery, lower property tax collections or less state or federal funding, he confirmed in an email.

KISD’s net OPEB liability totaled $235.2 million, according to the presentation.

Texas Education Agency’s Financial Integrity Rating System of Texas will not penalize the district for a negative net balance because it is due to OPEB reporting, Garcia said.

KISD general fund’s ending balance increased $10.7 million year-over-year to $213.5 million and the debt service fund’s ending balance increased $3.1 million year-over-year to $57.4 million, according to the presentation.

KISD has about $143.7 million in its general fund that is unassigned, which is the district’s working capital or the portion of the fund balance that is available for spending, Garcia said. That $143.7 million translates to funding the district for 76 days, and it is recommended a district have enough working capital to fund itself for two to three months, he said.

“I’m real proud to say that our district operates efficiently,” KISD Chief Financial Officer Chris Smith said before Garcia gave his presentation.

 

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  1. Reginald Reeves

    After backing out the employment benefits, there still seems to be a VERY LARGE negative gap.
    I can hear the words being typed for the next BILLION $$$ BOND ISSUE to be put forth.

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Jen Para
Jen joined Community Impact Newspaper in fall 2018. A graduate of the University of Missouri, Jen has written about business, politics and education since 2013. Prior to CI, Jen was the web producer at Houston Business Journal.
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