FY17 Audit Report EXECUTIVE SUMMARY

Transcription

1 FY17 Audit Report EXECUTIVE SUMMARY Purpose: To receive the findings of the FY17 audit report. Attached is the PowerPoint presentation of the FY16 audit report of the School District s auditors, RSM US LLP. Dan Schelske from RSM US LLP will be in attendance at the meeting on Monday, December 11, 217, to present the audit findings. Recommendation: It is recommended that the School Board approve the audit report for FY17 and direct the audit to be sent to the Department of Legislative Audit for their approval. Report prepared by RSM US LLP in conjunction with the Finance Office Presented by: Dan Schelske, RSM US, LLP December 11, 217

2 Sioux Falls School District 49-5

3 Data portrayed in the attached graphic presentations was derived from the District s basic financial statements which were audited by RSM US LLP, whose report thereon is expected to be dated in December 217. The data should be read in conjunction with the District s basic financial statements and the auditor s report thereon. 2

4 Millions GOVERNMENT WIDE Net Position Net capital assets Restricted Unrestricted 3

5 Millions 3 GENERAL FUND Fund Balance Unassigned Next Year's Budget or Other 4

6 GENERAL FUND (continued) Revenues Millions Local Taxes Federal Grants State Sources Other

7 Millions GENERAL FUND (continued) Expenditures Salaries/Benefits Purchased Services Supplies/Materials Other

8 7

9 Thousands SPECIAL EDUCATION FUND Fund Balance 8, 7,5 7,28 7, 6,5 5,953 6, 5,5 4, , 4,5 4, 3,5 3, 2,5 2, 1,5 1,

10 Millions SPECIAL EDUCATION FUND (continued) Revenues Local Taxes State Aid Federal Grants Other Millions Expenditures Salaries/Benefits Purchased Services Other 9

11 1

12 CAPITAL OUTLAY AND PROJECTS FUNDS Fund Balance Thousands 2, 18, 16, 16,998 17,75 14, 12,436 12, 1, 8, 6, 4, 2, (2,) Capital Outlay Capital Improvement Hail Damage Project Elementary Project/Middle School Project 11

13 POST SECONDARY VOCATIONAL FUND Thousands 1, 9, 8, 7, 8,283 Fund Balance 6,96 6, 5, 5,271 4, 3, 2, 1,

14 FOOD SERVICE FUND Revenues, Expenses and Net Income Thousands 14, 12, 1,632 11,14 11,241 11,41 11,818 11,365 1, 8, 6, 4, 2, (2,) 21 (472) Revenues Expenses Net Income

15 FOOD SERVICE FUND (continued) Net Position Thousands 8, 7, 6,626 6,827 7,28 6, 5, 4, 3, 2, 1, Net Capital Assets SDRS Pension Unrestricted 14

16 GROUP HEALTH INSURANCE FUND Thousands 4, 35, 3, 29,15 Revenues, Expenses and Net Income 29,871 3,162 3,7 34,56 32,345 25, 2, 15, 1, 5, (5,) (856) ,712 Revenues Expenses Net Income (Loss) 15

17 GROUP HEALTH INSURANCE FUND (continued) Net Position 12, Thousands 1, 9,164 9,319 11,3 8, 6, 4, 2, Net Position 16

18 Post Audit Communications New accounting standards implemented and Accounting Policy Updates The District increased its period of availability for revenue recognition from 6 days to 9 days for its modified accrual governmental fund statements. This has the impact of recognizing revenue sooner. The District adopted GASB 77, which added additional disclosures related to property tax abatements. Audit adjustments Adjustment recorded to reduce property and equipment and to record a loss on disposal of property and equipment by $4,37 for the Food Service Fund. Adjustment recorded for $54,141 to reclassify interest income earnings from dues and tuition revenue for the Post Secondary Vocational Fund. Uncorrected misstatements Primarily for the following: Moving certain accrued payroll liabilities and related cash balances from the Payroll Withholding agency fund to the governmental and enterprise funds in which the payroll expense was originally incurred in. Amortizing deferred outflows related to defeasance of 24B bonds from fiscal year 215 in the governmental activities shown on the government-wide statements. No significant or unusual transactions Summary of significant accounting estimates Self-insurance liability, allowance for doubtful accounts, other postemployment benefit liability, net pension asset assumptions. 17

19 Internal Control / Federal Award Compliance A significant deficiency in internal control over financial reporting noted related to the review of purchasing card expenditures at Southeast Technical Institute. No material weaknesses in internal control over financial reporting noted. Several federal award compliance issues reported: Payroll documentation at Southeast Technical Institute Contract procurement documentation at Southeast Technical Institute Bi-annual review of the Southeast Technical Institute's drug and alcohol abuse program A number of control deficiencies communicated to management. 18