MINNEWASKA SCHOOL DISTRICT #2149 AUDIT HIGHLIGHTS YEAR ENDED JUNE 30, 2009

Transcription

1 MINNEWASKA SCHOOL DISTRICT #2149 AUDIT HIGHLIGHTS YEAR ENDED JUNE 30, 2009

2 Prior Year Follow up Corrected Deficiency Acceptance of Donations & Grants Deficiency Prompt Payment Work in Progress Deficiency Financial Oversight & Monitoring Deficiency Financial Reporting Process Deficiency Fixed Asset Controls

3 CURRENT YEAR SUMMARY Audit Opinion- Unqualified Opinion audit report (Page 2-3) 2 Internal Controls Reporting Pages MATERIAL WEAKNESS Deficiency Financial Oversight & Monitoring Page 62 SIGNIFICANT DEFICIENCY Deficiency Period End Financial Reporting Page 63 Deficiency Fixed Asset Controls Page 64 Deficiency Senior Class Activity Account Page 65

4 Require separate reporting on our consideration of Internal Controls and Compliance. Control deficiency is when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions to prevent or detect financialal misstatements on a timely basis. Significant Deficiency More than a remote likelihood that a more than inconsequential misstatement will not be detected by the District s s internal controls. Material Weakness More than a remote likelihood that a material misstatement will not be prevented or detected by the District ss internal controls.

5 Summary (Continued) Federal Awards Program Audit Internal Control Deficiency Deficiency Time Distribution Records (Page 66)

6 Statutory Operating Debt (SOD) Original Recovery Plan - Need revenue surplus of $150,000 within three year period to escape SOD. Board goal of fund balance equal to 6% expenditures within five years. That goal translates to a fund balance of $900,000 Goal of fund balance equal to 13-15% 15% within seven years That goal translates to a fund balance of approximately $1,950,000.

7 GENERAL FUND UNRESERVED- UNDESIGNATED FUND BALANCE AS A % OF EXPENDITURES % Y e a r % % %of expenditures

8 Components of the Unreserved General Fund Balance Thousands Designated for Student Activity Designated for Post Employment Severance Special Projects Unreserved/Undesignated

9 Fund Balances (Deficits) General Community Service Building Construction Total Designated for: Student Activities 100, ,234 Separation/Retirement Benefits 400, ,896 Total Designated 501, ,130 Reserved for: Staff Development 82,241 82,241 Deferred Maintenance (116,593) (116,593) Health and Safety (43,534) (45,534) Operating Capital 450, ,033 Unfunded Severance & Retirement Levy 51,007 51,007 Community Education 18,932 18,932 Early Childhood and Families Education 11,277 11,277 Alternative Facilities 1,416,953 1,416,953 Gifted and Talented 4,330 4,330 Safe Schools 11,886 11,886 School Readiness 3,506 3,506 Total Reserved $ 439,370 $ 33,715 $ 1,416,953 $1,890,038

10 Table A-1 Minnewaska Area Schools Combined Statement of Net Assets Governmental Activities Total Percentage Change Current and Other Assets $ 8,562,123 $ 17,390,942 (50.8)% Capital Assets 27,120,093 20,892, % Total Assets 35,682,216 38,283,040 (6.8)% Long-term Liabilities 17,828,471 17,096, % Other Liabilities 5,209,968 9,701,820 (46.3)% Total Liabilities 23,038,439 26,797,893 (14.3)% Net Assets debt Invested in capital assets, net of related 12,705,648 12,126, % Restricted 629, , % Unrestricted (691,529) (1,039,865) 33.5% Total Net Assets $ 12,643,777 $ 11,485, %

11 Table A-2 Minnewaska Area Schools Change in Net Assets Percentage Change Revenues: Program revenues Charges for services $ 1,114,280 $ 1,444,148 (22.8)% Operating grants and contributions 4,202,696 3,933, % Capital grants and contributions 81, ,261 (31.9)% General revenues Property taxes 2,844,691 2,161, % State aid-formula grants 6,842,413 7,296,361 (6.2)% Other 331, ,534 (20.6)% Total Revenues 15,416,930 15,372, %

12 Expenses: Percentage Change Administration 472, ,576 (7.8)% District support services 244, , % Regular instruction 5,279,327 5,544,523 (4.8)% Vocational instruction 114, ,439 (6.3)% Exceptional instruction 3,796,871 3,638, % Community education and services 284, , % Instructional support services 190, , % Pupil support services 1,120,955 1,139,044 (1.6)% Site and buildings 924,754 1,114,964 (17.1)% Fiscal and other fixed cost programs 92,337 75, % Food service 727, , % Interest and fiscal charges on debt 345, ,992 (19.9)% Unallocated Depreciation 663, , % Total Expenses 14,258,300 14,480,248 (1.5)% Increase (Decrease) in Net Assets $ 1,158,630 $ 891, % Ending of Year Net Assets 12,643,777 11,485, %

13 Figure A-3 Sources of Minnewaska Area School's Revenues Property Taxes 18.5% Miscellaneous Local 2.2% Fiscal Year 2009 Charges for Services 7.2% Federal & State Aids & Grant Programs 72.2%

14 Figure A-4 Minnewaska Area School's Expenses Fiscal Year 2009 Site, Buildings, Equipment 11.1% Food services 5.1% Fiscal & fixed 0.6% Interest Expense 2.4% Administration & District Support 5.0% Pupil & Instructional support 9.2% Community Ed 2.0% Direct Instruction 37.8% Exceptional Instruction 26.6%

15 Summary General Fund Revenues Year Ended June 30, 2009 Year Ended June 30, 2008 Amount of Increase (Decrease) % Increase (Decrease) Local Sources Property Taxes $1,419,238 $ 1,178,571 $240, % Interest earnings 33, ,462 (74,791) (69.0)% Other 1,182,962 1,498,381 (315,419) (21.1)% State sources 9,827,512 10,243,335 (415,823) (4.1)% Federal sources 400, ,648 20, % Other Financing Sources 1,715,538 2,573,715 (858,177) (33.3)% Total General Fund Revenue $ 14,579,372 $ 15,982,112 $ (1,402,740) (8.8)%

16 The following schedule presents a summary of General Fund Expenditures. Year Ended June 30, 2009 Year Ended June 30, 2008 Amount of Increase (Decrease) % Increase (Decrease) Salaries $ 7,435,752 $ 7,497,297 $ (61,545) (0.8%) Employees benefits 3,308,414 1,857,698 1,450, % Purchased services 2,049,415 1,980,418 68, % Supplies & material 761, ,973 (149,560) (16.4)% Non-Capital equipment 48,260 80,724 (32,464) (40.2)% Capital Expenditures 1,064,953 1,771,426 (706,473) (39.9)% Debt Service 269,602 85, , % Other expenditures 50,567 62,825 (12,258) (19.5)% Total Expenditures $ 14,988,376 $ 14,246,989 $ 741, %

17 Budgeted Amounts Original Final Actual General Fund Variances with Final Budget Favorable (Unfavorable ) Revenues Local property tax levies $ 1,465,333 $ 1,413,699 $ 1,419,238 $5,539 Other local and county revenues 1,166,385 1,220,631 1,172,204 (48,427) Revenues from state sources 10,140,994 9,692,199 9,827, ,313 Revenue from federal sources 251, , ,451 27,692 Sales and other conversions of assets 27,400 15,667 14,904 (763) Insurance recovery and settlement 29,525 29,525 Total Revenues $ 13,051,753 $ 12,744,480 $ 12,863,834 $ 119,354

18 Expenditures Current: Budgeted Amounts Original Final Actual General Fund Variances with Final Budget Favorable (Unfavorable District and school administration $477,104 $ 513,161 $ 470,512 $ 42,649 District support services 225, , ,430 37,484 Regular instruction 5,434,481 6,921,125 6,823,516 97,609 Vocational instruction 121, , ,667 1,579 Exceptional instruction 3,774,925 3,863,144 3,796,871 66,273 Community education and services Instructional support services 150, , ,244 2,462 Pupil support services 1,171,165 1,142,819 1,109,450 33,369 Site, buildings and equipment 1,080, , ,033 37,945 Fiscal and other fixed cost programs 74,010 60,098 60,098 Total Current 12,508,955 13,973,191 13,653, ,370 Capital Outlay 1,851,105 1,077,287 1,064,953 12,334 Debt Service: Principal 87,166 87,166 Interest 92, , , Debt issuance costs 25,185 25,185 Total Debt Service 92, , , Total Expenditures $ 14,452,802 $ 15,320,845 $ 14,988,376 $ 332,469

19 Budgeted Amounts Original Final Actual General Fund Variances with Final Budget Favorable (unfavorable) Excess (deficiency) of revenue over expenditures (1,401,049) (2,576,365) (2,124,542) 451,823 Other Financing Sources (Uses) Sale of real property and equipment Sale of Bonds 1,710,000 1,710,000 Bond Premium (4,963) 4,963 9,926 Interfund transfer to OPEB Debt Services Fund (45,500) (45,499) 1 Total Other Financing Sources (Uses) $ $1,660,112 $ 1,670,039 $ 9,927 Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing (Uses) $ (1,401,049) $ (916,253) $ (454,503) $ 461,750 Fund Balances - Beginning of Year 1,491,730 1,491,730 $ 1,491,730 Fund Balances - End of Year $ 90,681 $ 575,477 $ 1,037,227 $ 461,750

20 Proactive in Benefit Funding Implemented GASB 45 Other Post Employee Benefits (OPEB). Elected to bond for the liability of $1,650,000. Have special funding levy of $150,000 for Post Employment Severance Plan with liability of $1,400,000. Will do an actuarial study every two years as required to measure liability & funding

21 Total Debt 20 Thousands Total Debt Year

22 2009 Conclusions The District continued to take positive steps on its SOD plan. However, the District has a ways to go to restore the unreserved/undesignated fund balance to a reasonable amount. The District has taken steps to fund and monitor its post employment severance and OPEB costs. The District is concluding its facilities upgrade and now should monitor its energy savings and work on paying down debt.

23 SAS 114 Letter Thanks to the District Staff for cooperation during the audit.

24 Dinham, Folkert & Associates Chtd. Certified Public Accountants