Number crunchers from the accounting firm of Moss Adams are expected to issue their final report of its audit on the South Whidbey School district fund balance, 2003-04 budget and reporting systems at the December board of education meeting.

Moss Adams’ lead auditor on the project, Tom Krippaehne, told the South Whidbey Board of Education last week his firm will provide a final report before the end of the year.

“We are continuing with the fact finding,” he said. “We have met with all the principals and the superintendent. From the fact-finding phase we are moving toward more analytical work with regard to the budget.”

Krippaehne said he is also working with the district’s new business manager, Ben Thomas, on firming up the numbers of the fund balance. To this point, the district is keeping accurate track of the balance.

“The fund balance right now is $256,000, very close, if not exactly what Thomas has reported,” Krippaehne said.

Krippaehne reported the beginning fund balance for the 2002-03 budget year to be $504,000. That amount dropped by $248,000 over the course of the year, a finding that set off alarm bells on the board of education and resulted in the resignation of the district’s former business manager.

Still, the Moss Adams examination of the district’s funds is not entirely fraught with problems. In reviewing the records, Krippaehne said, “the district may be in better shape than what they first reported.”

Moss Adams will continue its audit, zeroing in on the numbers for the 2003-04 budget numbers, and finishing the budget shortfall audit.

“We will also be ramping up to look at the district internal controls as the final phase of the audit,” Krippaehne said.

The final phase of the audit will include a look at oversight, reporting systems and internal controls of the budget management process.

The South Whidbey Board of Education requested an independent audit after errors in calculations resulted in a fund balance shortfall. Cost of the audit is expected to be $49,000.