NATCHEZ — Natchez-Adams School District officials say despite how the district’s financial audit might look to a casual observer, the district does not have funds squirreled away to cover the majority of a building project should voters reject a Tuesday bond issue.

The district receives an average of $300,000 in annual interest from its 16th section fund. The 16th section fund is restricted and the district may only use the interest — with board approval.

Two pieces of debt will mature in Dec. 2017 and March 2018. The maturing debt will free up approximately $1 million in the district’s budget. 16th section principal interest has been allocated to paying off the Dec. 2017 debt.

This approximately $1 million per year is what the district is planning to use to ease the burden of the taxpayers, NASD Business Manager Monica Anderson said.

Click here for 2016 Natchez-Adams School District audit.

Click here for 2015 Natchez-Adams School District audit.

While the district is asking taxpayers to approve a $35 million bond issue, the remaining approximately $9 million needed to fund the approximately $44 million building program would come from the retiring debt and the 16th section fund.

“We do not have the money hid away to build a school,” Anderson said. “We do not like asking the public for the money as much as the public likes us asking for it, but we have no choice.”

Click here for 2014 Natchez-Adams School District audit.

Click here for 2013 Natchez-Adams School District audit.

Silas Simmons CPA Tim Byrd, who conducted the district’s 2016 audit, said the district does not have funds hidden away.

“We confirm all cash accounts,” Byrd said. “We test all of that. There are no hidden funds to our knowledge, based on our audit.”

Some members of the community have questioned the district’s finances based on two articles appearing in The Natchez Democrat.

A July 2015 article reported the district’s fund balance on July 1 to be $28,599,122, and that by June 30, 2016, the fund balance would be $26,209,318.

Then, in an April 2017 article, investments are listed at approximately $18.6 million as of June 30, 2016.

Investments are a portion of the 16th section fund, which also includes land leases and mineral and oil revenue.

The two stories led some to believe that the district’s 16th section funds had been decreasing.

The 16th section principal fund, as of June 30, 2016, is $19,412,894. Since 2013, the 16th section principal fund has been growing each year: $18,458,896 in 2013, $19,016,131 in 2014, and 19,053,514 in 2015.

Byrd also said if millions had been taken out like suggested, it would have shown up in the audit.

“If it did disappear, one of the other funds would have had some major increase in something,” Byrd said. “They don’t transfer like that. A little bit, but not millions.”

Anderson said total government fund balance as of June 30, 2016, is $28,480,510, which is approximately $117,000 less than the total governmental fund balance from June 30, 2015.

In the audit, total governmental fund is listed as fund balance. With the exception of 2016, total governmental funds have also been increasing.

In 2014, total governmental fund balances were $27,927,621. In 2013, total governmental fund balances were $25,072,951.

Total governmental funds are all funds, including revenues from local, state, federal and 16th section sources and expenditures related to instruction, support and debt.

Most of the budget is restricted, committed or assigned to being spent on specific purposes within the general fund. Approximately $6.7 million is unassigned.

The unassigned funds are listed as spendable resources, not necessarily cash.

The balance of the unassigned total governmental funds has also increased each year: in 2013, $2.2 million, $4 million in 2014 and $4.3 million in 2015.