Executive Audit Summary for Hopkins Public Schools (ISD 270)

Transcription

1 Executive Audit Summary for Hopkins Public Schools (ISD 270) Presented by: CliftonLarsonAllen Michelle Hoffman, Manager

2 Audit Results Year Ended 6/30/17 Audit Opinion The financial statements are fairly stated. We issued what is known as a clean or unmodified audit report. Yellow Book Opinion No compliance issues were noted in our review of laws, regulations, contracts and grants that could have significant financial implications to the District. Internal Controls One material weakness in controls over financial reporting was noted related to annual financial reporting under GAAP.

3 Audit Results Year Ended 6/30/17 Single Audit One material weakness was noted with regards to direct and material compliance requirements of the major federal programs relating to reporting for the Child Nutrition Cluster. Legal Compliance No legal compliance matters were reported. Student Activities No findings were reported.

4 GENERAL FUND HOPKINS PUBLIC SCHOOLS AUDITED FUND BALANCES THROUGH JUNE 30, /30/ TRANSFERS TRANSFERS 6/30/2017 AUDITED AUDITED INTO AUDITED OUT OF AUDITED FUND DESCRIPTION BALANCE REVENUES FUNDS EXPENDITURES FUNDS BALANCE A. UNASSIGNED - OPERATING $8,684,402 $78,793,863 ($4,218,615) $73,642,263 $932,985 $8,684,402 B. NONSPENDABLE FOR PREPAID ITEMS $229,673 $245,822 $0 $475,495 INVENTORY $71,282 $12,543 $0 $83,825 TOTAL NONSPENDABLE $300,955 $258,365 $0 $0 $0 $559,320 C. COMMITTED FOR FOREIGN LANGUAGE IN ELEMENTARY (FLES) $2,428,627 $0 $0 $0 $2,428,627 $0 D. ASSIGNED FOR TURF FIELDS $0 $750,000 $0 $750,000 HEALTH & SAFETY CLOSEOUT $0 $312,132 $0 $312,132 BENEFIT AUDIT $0 $493,650 $0 $493,650 PLAYGROUNDS $0 $55,210 $0 $55,210 BUS SHELTER INTER-AGENCY AGREEMENT $27,500 $0 $0 $27,500 Q COMP $49,460 $29,778 $49,460 $29,778 SECURITY CAMERA INFRASTRUCTURE $65,000 $0 $65,000 $0 TRANSITION COSTS $375,000 $0 $1,460 $373,540 BOARDROOM TECH UPDATE $150,000 $0 $150,000 $0 TOTAL ASSIGNED $666,960 $1,640,770 $0 $265,920 $0 $2,041,810 E. RESTRICTED FOR MEDICAL ASSISTANCE $0 $456,859 $43,695 $413,164 ACHIEVEMENT & INTEGRATION $0 $1,217,412 $18,880 $1,236,292 $0 GIFTED AND TALENTED $0 $96,114 $1,041,404 $1,137,518 $0 CAREER AND TECHNICAL PROGRAMS $0 $175,481 $868,318 $1,043,799 $0 SAFE SCHOOLS PROGRAMS $0 $391,441 $68,790 $460,231 $0 STAFF DEVELOPMENT $307,182 $907,114 $919,092 $295,204 LEARNING AND DEVELOPMENT $0 $1,496,476 $1,496,476 $0 BASIC SKILLS $0 $4,188,945 $1,221,223 $5,410,168 $0 OPERATING CAPITAL $1,371,212 $3,716,524 $1,000,000 $3,914,492 $2,173,244 LONG-TERM FACILITIES MAINT (LTFM) $0 $317,567 $317,567 $0 HEALTH & SAFETY ($415,240) $271,820 $0 ($143,420) TOTAL RESTRICTED $1,263,154 $13,235,753 $4,218,615 $15,979,330 $0 $2,738,192 BUDGET $93,452,765 $0 $93,203,953 $3,361,612 $10,231,298 TOTAL GENERAL FUND $13,344,098 $93,928,751 $0 $89,887,513 $3,361,612 $14,023,724 DIFFERENCE $475,986 $0 ($3,316,440) $0 $3,792,426 % VARIANCE 0.51% -3.56%

5 Audited Fund Balances Other Funds FOOD SERVICE HOPKINS PUBLIC SCHOOLS AUDITED FUND BALANCES THROUGH JUNE 30, /30/ TRANSFERS TRANSFERS 6/30/2017 AUDITED AUDITED INTO AUDITED OUT OF AUDITED FUND DESCRIPTION BALANCE REVENUES FUNDS EXPENDITURES FUNDS BALANCE NONSPENDABLE FOR INVENTORY $64,422 $1,444 $0 $65,866 RESTRICTED FOR FOOD SERVICE PROGRAM $377,063 $4,473,320 $4,193,993 $656,390 COMMUNITY EDUCATION BUDGET $4,476,327 $4,397,820 $519,992 TOTAL FOOD SERVICE $441,485 $4,474,764 $0 $4,193,993 $0 $722,256 DIFFERENCE ($1,563) ($203,827) $202,264 % VARIANCE -0.03% -4.63% NONSPENDABLE FOR PREPAID ITEMS $0 $4,047 $0 $4,047 RESTRICTED FOR REGULAR COMMUNITY ED $1,310,398 $7,070,869 $250,000 $6,961,026 $1,670,241 RESTRICTED FOR EARLY CHILDHOOD FAMILY ED $161,056 $510,060 $448,042 $223,074 RESTRICTED FOR SCHOOL READINESS $58,812 $271,345 $280,162 $49,995 RESTRICTED FOR ADULT BASIC EDUCATION $49,165 $1,189,850 $1,201,225 $37,790 RESTRICTED FOR PRESCHOOL SCREENING $48,812 $25,590 $40,848 $33,554 RESTRICTED FOR NONPUBLIC PUPIL AID $84,826 $507,358 $483,771 $108,413 BUDGET $9,187,285 $250,000 $9,406,815 $1,743,539 TOTAL COMMUNITY EDUCATION $1,713,069 $9,579,119 $250,000 $9,415,074 $0 $2,127,114 DIFFERENCE $391,834 $0 $8,259 $383,575 % VARIANCE 4.26% 0.09% BUILDING CONSTRUCTION FUND NONSPENDABLE FOR PREPAID ITEMS $232,123 $0 $22,062 $210,061 RESTRICTED FOR LONG-TERM FAC MAINT (LTFM) ($1,977,682) $15,049,359 $5,112,001 $7,959,676 RESTRICTED FOR TURF FIELDS LEASE $0 $3,667,000 $21,000 $3,646,000 RESTRICTED FOR CAPITAL PROJECTS LEVY $1,431,617 $7,724,075 $6,810,495 $2,345,197 RESTRICTED FOR FY17 CAPITAL PROJECTS LEVY SCHOOL NUTRITION KITCHEN IMPROVEMENTS ($2,943,469) $430,051 $1,385 ($2,514,803) SAFETY AND SECURITY $0 $243,467 $243,467 $0 CONTINGENCY $324,113 $182,982 $486,683 $20,412 SIGNAGE $1,536 $25,000 $29,848 ($3,312) SECURITY CAMERAS $9,836 $118,500 $124,715 $3,621 BUDGET $27,034,664 $14,301,345 $9,811,393 TOTAL BUILDING FUND ($2,921,926) $27,440,434 $0 $12,851,656 $0 $11,666,852 DIFFERENCE $405,770 ($1,449,689) $1,855,459 % VARIANCE 1.50% %

6 Audited Fund Balances Other Funds (cont d) DEBT SERVICE HOPKINS PUBLIC SCHOOLS AUDITED FUND BALANCES THROUGH JUNE 30, /30/ TRANSFERS TRANSFERS 6/30/2017 AUDITED AUDITED INTO AUDITED OUT OF AUDITED FUND DESCRIPTION BALANCE REVENUES FUNDS EXPENDITURES FUNDS BALANCE RESTRICTED FOR OPEB DEBT SERVICE $419,682 $4,401,013 $4,237,997 $582,698 RESTRICTED FOR DEBT SERVICE $2,418,674 $10,267,516 $10,290,450 $2,395,740 BUDGET $14,948,128 $14,530,497 $3,255,987 TOTAL DEBT SERVICE $2,838,356 $14,668,529 $0 $14,528,447 $0 $2,978,438 PROPRIETARY AND TRUST & AGENCY DIFFERENCE ($279,599) ($2,050) ($277,549) % VARIANCE -1.87% -0.01% SCHOLARSHIP & OTHER TRUST FUNDS $57,073 $24,425 $30,057 $51,441 INTERNAL SERVICE FUND - OPEB REVOC TRUST $17,111,915 $605,317 $779,246 $16,937,986 INTERNAL SERVICE FUND - SEVERANCE $10,735,826 $81,430 $3,111,612 $940,890 $12,987,978 INTERNAL SERVICE FUND - SELF-INSURANCE $5,095,215 $9,458,699 $10,024,879 $4,529,035 TOTAL OTHER FUNDS $33,000,029 $10,169,871 $3,111,612 $11,775,072 $0 $34,506,440

7 Student Enrollment ADM s Served Pre-K & KH Reg Kindergarten Elementary 3, , , , , Secondary 3, , , , , Net ADM Served 7, , , , , Percent Change -2.15% -0.93% 0.30% -0.92% -2.66% HOPKINS PUBLIC SCHOOLS Student Enrollment (in ADMs) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Pre-K & KH Reg Kindergarten Elementary Secondary

8 Student Enrollment Open Enrollment Total Residents 7, , , , , Open Enrollment Out (1,129.28) (1,191.01) (1,253.38) (1,327.04) (1,517.61) Charter Schools Out (417.09) (340.89) (336.40) (349.95) (349.95) Net Residents Served 5, , , , , Open Enrollment In 1, , , , , Net ADM Served 7, , , , , Net Pupil Units Served 8, , , , , HOPKINS PUBLIC SCHOOLS Student Enrollment for Aid (in ADMs) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Net Residents Served Open Enrollment In

9 General Fund - Operations Year Ended June Revenues $ 83,858,943 $ 83,493,597 $ 89,944,743 $ 91,275,976 $ 93,928,751 Expenditures 80,956,770 82,437,906 86,526,580 89,391,494 89,887,513 Excess of Revenues Over Expenditures 2,902,173 1,055,691 3,418,163 1,884,482 4,041,238 Other Financing Sources (Uses): Sale of Equipment Proceeds 23,200 3, Sale of Real Property Proceeds - 28, Insurance Recovery Proceeds - - 1, Transfers (Out) (856,840) (1,650,000) (2,273,113) (6,721,373) (3,361,612) Total Other Financing Sources (Uses) (833,640) (1,617,714) (2,272,000) (6,720,900) (3,361,612) Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses 2,068,533 (562,023) 1,146,163 (4,836,418) 679,626 Fund Balance: Beginning of Year 15,527,843 17,596,376 17,034,353 18,180,516 13,344,098 End of Year $ 17,596,376 $ 17,034,353 $ 18,180,516 $ 13,344,098 $ 14,023,724 Nonspendable Fund Balance $ 246,984 $ 235,209 $ 227,406 $ 300,955 $ 559,320 Restricted Fund Balance 232, , ,198 1,263,154 2,738,192 Committed Fund Balance 6,041,951 6,041,951 5,735,000 2,428,627 - Assigned Fund Balance 2,442,348 1,233,735 1,318, ,960 2,041,810 Unassigned Fund Balance 8,632,275 9,136,232 10,151,542 8,684,402 8,684,402 Total Fund Balance $ 17,596,376 $ 17,034,353 $ 18,180,516 $ 13,344,098 $ 14,023,724 Unassigned Fund Balance as a Percentage of Expenditures 10.66% 11.08% 11.73% 9.72% 9.66%

10 General Fund Revenue Sources Local Property Taxes $ 19,804,169 $ 11,441,543 $ 23,720,510 $ 23,687,302 $ 25,608,340 State Sources 57,434,006 65,449,897 59,904,963 61,641,459 61,072,518 Federal Sources 2,863,130 2,600,309 2,464,613 2,355,868 2,775,987 Other 3,757,638 4,001,848 3,854,657 3,591,347 4,471,906 Total Revenues $ 83,858,943 $ 83,493,597 $ 89,944,743 $ 91,275,976 $ 93,928,751 HOPKINS PUBLIC SCHOOLS General Fund Revenue Sources $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Other Local Property Taxes Federal Sources State Sources

11 General Fund Expenditures per Student General Fund Expenditures Per Student (Per ADM) $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 General Fund - All Expenditures $11,503 $11,823 $12,373 $12,901 $13,327

12 General Fund Expenditures by Object Over (Under) Budget Actual Budget % Actual Actual Salaries $ 56,848,422 $ 55,499,835 $ (1,348,587) (2.4)% $ 55,414,902 $ 51,167,235 Employee Benefits - Excluding OPEB 16,623,734 15,985,381 (638,353) (3.8) 17,542,824 15,154,540 Purchased Services 13,258,035 13,027,130 (230,905) (1.7) 12,429,567 12,768,108 Supplies and Materials 2,141,679 1,980,618 (161,061) (7.5) 1,580,262 1,842,025 Capital Expenditures 3,426,922 2,197,569 (1,229,353) (35.9) 1,487,573 1,357,538 Other Expenditures 905,161 1,196, , , ,460 Total Expenditures $ 93,203,953 $ 89,887,513 $ (3,316,440) (3.6)% $ 89,391,494 $ 82,437,906

13 Food Service Fund - Operations Year Ended June 30, 2017 Revenues $ 4,221,792 $ 4,052,578 $ 4,386,370 $ 4,583,975 $ 4,473,766 Expenditures 4,071,970 4,004,146 4,357,110 4,437,815 4,193,995 Excess of Revenues Over Expenditures 149,822 48,432 29, , ,771 Other Financing Sources: Sale of Equipment Proceeds - - 2,986 7,991 1,000 Excess of Revenues and Other Financing Sources Over Expenditures 149,822 48,432 32, , ,771 Fund Balance Beginning of Year 56, , , , ,485 End of Year $ 206,656 $ 255,088 $ 287,334 $ 441,485 $ 722,256

14 Food Service Fund Meals Served MEALS SERVED TO STUDENTS 900, , , , , , , , ,000 - Reduced Meals 56,637 55,171 65,639 59,323 64,049 Free Meals 274, , , , ,457 Full-Price Meals 356, , , , ,609 Total meals served 687, , , , ,115 Full-Price Meals Free Meals Reduced Meals

15 Community Service Fund - Operations Year Ended June 30, 2017 Revenues $ 9,669,417 $ 9,951,061 $ 9,687,233 $ 9,783,477 $ 9,579,119 Expenditures 9,773,855 10,508,900 9,839,863 10,051,559 9,415,074 Excess (Deficiency) of Revenues Over (Under) Expenditures (104,438) (557,839) (152,630) (268,082) 164,045 Other Financing Sources: Transfers In 356, , , , ,000 Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses 252,402 (107,839) 297, , ,045 Fund Balance: Beginning of Year 1,014,218 1,266,620 1,158,781 1,456,151 1,713,069 End of Year $ 1,266,620 $ 1,158,781 $ 1,456,151 $ 1,713,069 $ 2,127,114 Fund Balance: Nonspendable for Prepaid Items $ 10,461 $ 995 $ 9,886 $ - $ 4,047 Restricted for Community Ed 996, ,877 1,024,671 1,310,398 1,670,241 Restricted for ECFE 56,153 48, , , ,074 Restricted for School Readiness 3,566 4,542 30,038 58,812 49,995 Restricted for Adult Basic Education 112, , ,178 49,165 37,790 Restricted for Other Purposes 87, , , , ,967 Total Fund Balance $ 1,266,620 $ 1,158,781 $ 1,456,151 $ 1,713,069 $ 2,127,114

16 Questions and Feedback We welcome any questions pertaining to the audit, Governance Communication Letter, Internal Control Communication or other matters related to the engagement. We appreciate the opportunity to serve as the auditors for the Hopkins Public Schools and welcome any feedback relative to our performance.

17 Thank You! Michelle Hoffman Manager