Panther Valley School District may lose $200,000 it invested in a now bankrupt savings and loan association because it failed to secure collateral on the funds, according to an audit report released by Auditor General Don Bailey.

The report, covering the Carbon County district's 1985 and 1986 fiscal years, contained three findings of deficiency and one audit observation.Bailey said that on June 3, 1986, the district's business manager invested $200,000 from the capital reserve fund with Sun Savings and Loan Association of California.