East Baton Rouge Parish School System. Presentation of the 2011 Audit Results

Transcription

1 East Baton Rouge Parish School System Presentation of the 2011 Audit Results 1

2 Contents Fiscal Year 2011 Financial Highlights Summary of Audit Results Required Communications with the Board 2

3 Total Revenue (All Funds) All Others 4% All Others 5% Federal Grants 18% State MFP 28% Federal Grants 16% State MFP 29% Property Taxes 24% Sales Tax 26% Property Taxes 23% Sales Tax 27% Total Revenue $560,298, Total Revenue $558,386,448 3

4 Total Expenditures By Category (All Funds) (per the Fund Financial Statements, includes the net expenditures of Internal Service Funds) Transportation 5.4% Transportation 5.6% Other Instr Support 23.7% Other Instr Support 25.2% Instruction 48.6% Instruction 50.8% Capital Outlay 10.6% Child Nutrition Plant Ops & 4.2% Maint 7.5% Capital Outlay 4.8% Child Nutrition 5.0% Plant Ops & Maint 8.6% Total Expenditures $702,200, Total Expenditures $626,301,043 4

5 General Fund Expenditures by Category Appropriations 7.6% Appropriations 7.8% Other Instr Support 8.6% Other Instr Support 8.1% Transportation 7.8% Transportation 7.4% All Other 6.2% Instruction 54.2% All Other 7.7% Instruction 53.4% School Admin 5.3% School Admin 5.1% Plant Ops & Maint 10.3% Plant Ops & Maint 10.5% Total Expenditures $408,143, Total Expenditures $397,137,206 5

6 General Fund Operating Reserves $500,000,000 $400,000,000 $323,482,962 $354,489,232 $384,713,703 $397,137,206 $408,143,538 $300,000,000 $200,000,000 $100,000,000 $117,023,870 $135,693,655 $117,976,661 $101,769,535 $72,600,391 $ General Fund Operating Expenditures Total Fund Balance 6

7 Revenue Over (Under) Expenditures and Other Net Uses of Funds (Thousands of Dollars) $80,000 $60,000 $40,000 $20,000 $0 ($20,000) ($40,000) ($60,000) ($80,000) ($100,000) ($120,000) 76,991 32,258 31,286 18,670 14,460 (12,785) (17,717) (8,310) (16,207) (29,169) (33,920) (47,831) (46,468) (118,092) General Fund Only System-Wide (w/o GASB 45) System-Wide (w/ GASB 45) 7

8 Fund Balance (All Governmental Funds) (as revised by GASB 54) $225,000,000 $200,000,000 $175,000,000 $150,000,000 $125,000,000 $100,000,000 $75,000,000 $50,000,000 $25,000,000 $0 $384,490 $339,333 $102,476,478 $89,167,849 $55,369,624 $25,446,776 $58,899,699 $57,934, Assigned Unassigned Restricted Nonspendable 2010 $ 217,130, $ 172,887,958 8

9 Expenditures per Student (excludes Recovery School District and Charter School appropriations, excludes GASB 45 adjustment) $16,000 $14,000 $12,209 $13,806 $13,560 $14,877 $12,000 $9,962 $10,000 $8,000 $6,000 $5,469 $6,428 $6,826 $7,020 $7,271 $4,000 $2,000 $ Instructional Total 9

10 Post-Employment Liability During the fiscal year ended June 30, 2008, the School System implemented GASB Statement No. 45, Accounting and Financial Reporting by Employers for Post-employment Benefits Other Than Pensions. Recorded in the Medical Insurance Fund (internal service fund), which now has a deficit at June 30, 2011 of $182.2 million. Liability will change (increase) each year based upon an annual outside actuarial analysis. Currently in 4 th year of recognition. 10

11 Summary of Audit Results 11

12 Summary of Audit Results Unqualified Opinion on the Basic Financial Statements No Material Weaknesses in Internal Control Audit Tests Did Not Disclose Any Material Violations of Laws or Regulations 12

13 Summary of Audit Results Federal Programs Audited as Major Programs: Special Education (IDEA) Education Jobs Hurricane Educator Assistance Program (HEAP) TANF Title I Together, these five programs constitute more than 68% of total federal award expenditures 13

14 Required Communications 14

15 Required Communications with the Board Items to be Communicated Postlethwaite & Netterville s Responsibility Under Generally Accepted Government Auditing Standards: To express an opinion on the basic financial statements, To provide reasonable, not absolute, assurance of detecting material misstatements of the financial statements, To gain a basic understanding of the internal control policies and procedures to design an effective and efficient audit approach, and To inform the Board of any material illegal acts and non-compliance discovered. 15

16 Required Communications with the Board Items to be Communicated Significant Accounting Policies Implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The more significant accounting policies are disclosed in note 2 to the financial statements. The new standard establishes new categories for reporting fund balance and revises the definitions for governmental fund types. 16

17 Required Communications Management Judgements and Accounting Estimates with the Board Items to be Communicated We evaluated the key factors and assumptions used by management in making the following accounting estimates and judgments significant to the financial statements, and concluded that all estimates and judgments appeared reasonable. The most significant estimates in your financial statements are: Estimate of health, legal and workers compensation claims payable of $14,922,226 Net post-employment benefit obligation payable of $228,691,982 Depreciation expense and accumulated depreciation of $19,230,833 and $180,835,320, respectively 17

18 Significant Audit Adjustments Required Communications with the Board Items to be Communicated The following adjustments were recorded as part of the audit: Recorded Internal service fund claims expense and payable (made annually) Net post-employment benefit obligation Conversion entries for presentation of governmentwide statements under GASB 34 Unrecorded None 18

19 Required Communications with the Board Items to be Communicated Discussions Held Prior to Retention Other Matters Disagreements with management No major issues were discussed as a condition to our retention. There were no difficulties encountered in dealing with management. None 19