15 Nov 2010
No Material Weaknesses in Audit for First Time in Four Years; Fund Balance at $100 Million
DALLAS-The Dallas Independent School District's financial operations have made vast improvement according to a preliminary report of the district's 2009-10 audit presented today by independent auditors Deloitte and Touche to the board of trustees' Audit Committee.
For the first time in four years, the preliminary report of the audit shows no material weaknesses and improvement in all areas of the district's financial operations. The report also shows that the district closed the 2009-10 school year with a $100 million fund balance, reflecting an unprecedented budget surplus of $62.4 million. The final version of the audit will be presented to the Dallas ISD Board of Trustees on November 18.
"Two years ago, we acknowledged that our financial operations had significant issues that needed to be repaired. We also said that these problems were fixable and, as it turns out, they were," said Superintendent of Schools Michael Hinojosa. "Since that time, the district's financial staff, led by Chief Financial Officer Larry Throm, has methodically attacked the deficiencies. While there are still some improvements to be made, the turnaround is real."
As presented today, the final 2009-10 audit shows no material weaknesses, compared to three in 2008-09, and 8 in 2007-08. In addition, the total number of material weaknesses and various deficiencies decreased from 36 in 2007-08 to 22 in 2008-09 to 9 projected in 2009-10.
"In 2008, the auditing team from Deloitte and Touche identified the largest areas of concern related to the district's finances," said Hinojosa. To have this highly respected firm of external auditors return two years later with this report validates that we are on the right track."
The report also notes that the district's fund balance, as of June 30, 2010, was $100 million, up from $37.6 million the year before. The district's long-term goal is to continue to build the fund balance to approximately $150 million.