Statement of Clarification Regarding LVISD Financial Health
The La Vernia Independent School District would like to present community stakeholders with clarifications related to recently published information regarding the financial health of the District.
Regarding the District’s fund balance and recent history, the following are accurate general fund balance numbers taken from the applicable Annual Financial Reports for periods ending June 30:
- 2015: $10,138,921
- 2016: $9,279,429
- 2017: $8,218,765
- 2018: $6,771,100
The District’s Annual Financial Reports are available as public record on the District website.
Additionally, regarding the annual audit presentation made by Mr. Phil Vaughn of Armstrong, Vaughn & Associates, P.C., the following is a verbatim record of Mr. Vaughn’s comments to the Board and the public pertaining to the District’s 2018 fund balance and overall financial health:
“Your revenues were $26.8 million, which was a little shy of your budget, but it was an increase of 5% over the year before almost across the board. Then your expenditures were $28.2 million ... You’ll see that you had some lines that were a little bit over budget and some that were under. Overall, the expenditures were under your final amended budget ... You did decrease your fund balance this year by $1.4 million to $6.7 million. That $6.7 million is just over three months of your operating costs. Our general recommendation is three months is where you want to be, and not go any lower than that ... So three months is the target, and you’re right there in the general fund. That doesn’t mean that you have a lot of extra money, but you have a good foundation in your general fund. However, since it is a decrease, it is going to impact your FIRST rating a little bit ... You won’t have the shiny Superior status next year. You’ll be just under that. You’ll be Above Standard. You’re far above Passing. There are no issues. You have no risk of not passing, and there’s no extra credit for getting Superior. It’s just bragging rights. It’s not anything that is going to impact the District.”
Finally, concerning the District’s capacity for future bond proposals, the Board heard an annual report from Mr. Lewis A. Wilks of U.S. Capital Advisors to review current District debt structure and obligations. This annual report is a normal course of business when reviewing year end information, and includes vital information related to appraised taxable values, debt tax rates, outstanding debt schedules, capacity analysis, and projections of future bond opportunities. This report is for informational purposes only.
The District remains committed to financial transparency with our community stakeholders and will continue to strive for excellent stewardship of public money to provide a world-class education for every student of La Vernia ISD.