Only one minor finding. District remains in deficit spending, however
The Taft Union High School District got one minor finding in its annual audit, but is otherwise in good financial shape, despite some deficit spending as it continues to restructure its budget.
"The District's financial status continues to remain solid. The District is able to meet all of the current needs and maintain a more-than-adequate reserve," according to the audit report presented to the TUHSD Board of Trustees by CPA Scott Erwin. "However, deficit spending occurred in the 2017-18 fiscal year and may continue for the next few years. In addition, changes in school finances may greatly change the current outlook over the next few years."
The TUHSD made steep budget cuts in 2018 as its state revenues fall under the California Local Control Funding Formula and expenses, primarily for pension costs, increase.
The deficit spending has taken a significant amount from the District's net cash position.
It dropped from $43.828 million on June 30, 2017 year to $39.775 million on June 30, 2018, a change of 9.2 percent.
Still, that was an improvement over the prior year drop, Erwin said.
The only finding was an inconsistency in a compliance issue "that's very easily correctable," the auditor said.