How to Read Your Board Packet: A Field Guide for New Directors

Congratulations on your appointment to the board. Within a week or two, you will receive your first monthly board packet — likely twenty to forty pages of financial statements, check registers, and compliance summaries. The meeting is in four days. You are expected to review it, ask informed questions, and vote on a resolution approving the expenses.

Start with the bookkeeper's cover memo (Section 1). A well-run district will have a one-page memo that summarizes the key variances for the month: which budget lines are over or under, any unusual items, and what the board needs to approve. This memo does not exist in every packet — its presence is itself a sign of a professional operation.

The Statement of Financial Position (Section 2) is your balance sheet. Focus on two numbers: total cash and total liabilities. Is cash at a healthy level for operating needs? Are there any liabilities that the board has not formally approved? A payable to a contractor that has been sitting for 90 days without board action is a red flag.

The Revenues and Expenditures report (Section 3) is your income statement for the month and year-to-date. Compare the YTD actual column to the YTD budget column. Any line that is more than 15% over budget should have an explanation in the cover memo. If it doesn't, ask for one before you vote.

The AP Register and Check Run (Section 8) lists every check or ACH payment made during the month. Do not skip this section. As a board member, your signature on the approving resolution means you have reviewed these disbursements. Look for any vendor you do not recognize, any amount that seems disproportionate, and any check made payable to an individual rather than a company.

The PFIA Compliance Summary (Section 9) confirms that the district's investments comply with the adopted investment policy. If any investment is flagged as out-of-policy, the district must correct it before the next reporting period. This is a statutory requirement, not an administrative preference.

Finally, the Board Resolution (Section 10) is what you actually vote on: the formal approval of all bills payable for the month. Read the resolution before the meeting, not during it. If you have questions about any item, contact your bookkeeper or CPA before the meeting so the discussion is informed rather than rushed.