▁required ▁by ▁state ▁law ▁to ▁keep ▁ 5 ▁percent ▁of ▁their ▁annual ▁sp ending ▁in ▁the ▁und es ign ated ▁reserve ▁funds ▁to ▁preserve ▁bond ▁ratings . ▁By ▁law ▁the ▁state ▁limits ▁the ▁total ▁un res erved - undes ign ated ▁fund ▁balance ▁at ▁ 8 % ▁of ▁the ▁annual ▁budget ▁for ▁school ▁districts ▁that ▁have ▁bud gets ▁over ▁$ 1 9 ▁million ▁a ▁year . ▁According ▁to ▁the ▁Pennsylvania ▁Department ▁of ▁Education , ▁from ▁ 2 0 0 3 ▁to ▁ 2 0 1 0 , ▁as ▁a ▁whole , ▁Pennsylvania ▁school ▁districts ▁am ass ed ▁nearly ▁$ 3 ▁billion ▁in ▁reserved ▁funds . ▁ ▁Aud it ▁In ▁June ▁ 2 0 1 1 , ▁the ▁Pennsylvania ▁Aud itor ▁General ▁conducted ▁a ▁performance ▁aud it ▁of ▁the ▁Sol an co ▁School ▁District . ▁The ▁find ings ▁were ▁reported ▁to ▁both ▁the ▁School ▁Board ▁and ▁the ▁district ' s ▁administration . ▁They ▁found ▁that ▁Sol an co ▁School ▁District ▁had ▁taken ▁appropriate ▁correct ive ▁action ▁in ▁implementing ▁our ▁recommend ations ▁per tain ing ▁to ▁conflict ▁of ▁interest ▁transactions , ▁failure ▁to ▁obtain ▁Mem or and um ▁of ▁Under standing , ▁failure ▁to ▁file ▁Stat ements ▁of ▁Fin an cial ▁Inter ests , ▁cert ification ▁def ic ien cies , ▁and ▁un mon itor ed ▁vendor ▁system ▁access ▁and ▁logical ▁access ▁control ▁weak ness es . ▁ ▁Tu ition ▁Stud ents ▁who ▁live ▁in ▁the ▁Sol an co ▁School ▁District ' s ▁attend ance ▁area ▁may ▁choose ▁to ▁attend ▁one ▁of ▁Pennsylvania ' s