Ketchikan Gateway Borough School District (A Component Unit of the Ketchikan Gateway Borough, Alaska) Ketchikan High School Student Club Accounts With Independent Auditor s Report June 30, 2014 This report was issued by BDO USA, LLP, a Delaware limited liability partnership and the U.S. member of BDO International Limited, a UK company limited by guarantee.
(A Component Unit of the Ketchikan Gateway Borough, Alaska) With Independent Auditor s Report June 30, 2014
(A component Unit of the Ketchikan Gateway Borough, Alaska) Contents Page Independent Auditor s Report 1-2 Financial Statement Statement of Fiduciary Assets and Liabilities 4 Notes to the Financial Statements 5-7 Supplementary Information Schedule of Changes in Fiduciary Liabilities 8-10
Tel: 907-278-8878 Fax: 907-278-5779 www.bdo.com 3601 C Street, Suite 600 Anchorage, AK 99503 Independent Auditor s Report Ketchikan Gateway Borough School District 333 Schoenbar Rd. Ketchikan, AK 99901 We have audited the accompanying Statement of Fiduciary Assets and Liabilities of the of Ketchikan Gateway Borough School District as of June 30, 2014, and the related notes to the financial statement. Management s Responsibility for the Financial Statement Management is responsible for the preparation and fair presentation of this financial statement in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statement that is free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on the financial statement based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. 1
Opinion In our opinion, the financial statement referred to above presents fairly, in all material respects, the financial position of the as of June 30, 2014, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1, the financial statement of is intended only to present the financial position attributable to the Ketchikan High School Student Activities Funds. It does not purport to, and do not, present fairly the financial position of other Student Club Funds or of the Ketchikan Gateway Borough School District as of June 30, 2014 and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United State of America. Our opinion is not modified with respect to this matter. Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statement of the. The accompanying Schedule of Changes in Fiduciary Liabilities (the Schedule) is presented for purposes of additional analysis and is not a required part of the financial statement. The Schedule is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statement. Such information has been subjected to the auditing procedures applied in the audit of the financial statement and certain additional procedures including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statement or to the financial statement itself, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion the Schedule is fairly stated in all material respects in relation to the financial statement taken as a whole. Anchorage, Alaska January 9, 2015 2
Financial Statement 3
Statement of Fiduciary Assets and Liabilities June 30, 2014 Assets Cash accounts: Checking account $ 499,780 Savings accounts 82,346 Total Assets $ 582,126 Liabilities Liabilities - Due to Student Groups and District Activities $ 582,126 See accompanying notes to the financial statement. 4
Notes to the Financial Statement June 30, 2014 1. Summary of Significant Accounting Policies A. Reporting Entity This financial statement reflects only those Student Club accounts maintained by the Ketchikan High School. This financial statement does not reflect Student Club accounts maintained by other schools within the Ketchikan Gateway Borough School District, nor does it reflect the financial activities of the Ketchikan Gateway Borough School District as a whole. The report financial information associated with both certain district funded activities as well as certain student fundraising accounts. The include, among other items, sports teams, cheerleading and dance, certain scholarship accounts, yearbook, culinary arts, and other educational and special interest clubs and activities typical of high school students. B. Fund Financial Statements For external reporting purposes, the Ketchikan High School Student Club Funds are reported in a consolidated agency fund comprised of all Student Club funds of the District. In an agency fund, cash and liability accounts are maintained, but income and expense accounts are not reflected. Increases and decreases to individual activity accounts may be netted against one another to maintain a net account balance. C. Accounting For day to day accounting, the student funds are tracked in a small, non-complex software system. Within the system, District funded amounts and student fundraising activities are tracked using revenue and expense accounts for each club account. For the purpose of this financial statement, all accounts are presented as a liability to the student activities, though certain amounts may not yet be allocated to any specific club. The remainder of this page intentionally left blank. 5
Notes to the Financial Statement 2. Cash Accounts The Ketchikan High School Student Club cash accounts are maintained in the form of checking, savings, and certificates of deposit. These accounts are maintained separately from the District s general operating accounts. Custodial Credit Risk Deposits Custodial credit risk is the risk that, in the event of bank failure, the District s deposits may not be returned to it. Of the bank balances, $250,000 was covered by federal depository insurance and $332,126 was not insured. Carrying Amount Bank Balance Ketchikan High School Student Club Accounts: Demand deposits $ 582,126 $ 580,371 6
Supplementary Information 7
Schedule of Changes in Fiduciary Liabilities Year Ended June 30, 2014 Student Club Accounts Opening Income/ Expense/ Ending Balance * Additions Reductions Transfers Balance 3000 ACDC $ 42 $ 1,687 $ 12,129 $ 13,882 $ 3,482 9000 AD & Administration Travel - 89 6,275 6,186-9005 AD Supplies & Equipment 135 1,308 13,365 11,922-1025 Adv. Placement Fees 3,465 9,111 9,227 198 3,547 1020 Alumni Donations 2,176 - - - 2,176 3010 Auto Shop (622) 10,316 10,995 1,296 (5) 3020 Band & Pep Band 7,094 13,933 8,278 (1,942) 10,807 1070 Bank Card Payable (11,994) - (16,721) - 4,727 3030 Baseball (748) 17,049 23,826 24,738 17,213 9010 Baseball Protech - - 1,050 1,050-9015 Baseball Reg V Tournament-A - - 15,867 15,867-9020 Basketball Protech - - 6,235 7,025 790 9025 Basketball Reg V Tournament-A - - 28,555 28,555-3040 Basketball, Boys 3,251 18,236 47,653 24,903 (1,263) 3050 Basketball, Girls 10,562 59,346 97,306 40,064 12,666 1030 Bomb Threat Reward 1,710 - - - 1,710 3060 Cheerleading 3,238 6,443 6,194 (15) 3,472 3070 Child Careers 166 31,980 19,569 (12,212) 365 3080 Choir 2,424 9,870 7,577 (2,297) 2,420 3090 Clarke Cochrane Tournament 25,264 63,709 64,743 10,010 34,240 4000 Class 2012 90 - - (90) - 4010 Class 2013 (205) - - 205-4020 Class 2014 (112) 30,175 24,766 (3,813) 1,484 4030 Class 2015-1,154 529-625 3100 Class Act Mentor 304 - - - 304 3110 College Fair 3,088 2,105 964 (1,375) 2,854 1035 Concessions 36,963 14,558 10,383-41,138 3120 Construction 1,819-5,119 (63) (3,363) 3130 Cross Country 7,264 11,044 20,445 20,542 18,405 9035 Cross Country Reg V Tournament-A - - 5,580 5,580-3140 Culinary Arts 37,781 45,875 62,091 8,429 29,994 3150 Dance (6,013) 37,469 34,258 615 (2,187) 3160 Debate 865 2,078 23,046 20,212 109 3170 Drama 1,250 - - - 1,250 5000 English Fees & Fines 781 620 1,306 (42) 53 3190 Enterpreneur 38 - - - 38 3200 Football 3,990 28,424 50,645 27,981 9,750 5010 French Fees & Fines 98-71 - 27 2000 Fund Balance 97,092-4,153-92,939 12000 Galley, Jerry Memorial 48,932 1,091 2,000-48,023 2100 Gate Revenue 19,564 41,742 - (19,709) 41,597 5020 Health Fees & Fines 222 45 - - 267 8
Schedule of Changes in Fiduciary Liabilities Year Ended June 30, 2014 Opening Income/ Expense/ Ending Student Club Accounts, continued Balance * Additions Reductions Transfers Balance 3210 HOSA $ 5,764 $ 8,699 $ 12,420 $ 1,000 $ 3,043 5030 Jack Cotant 819-1,113 - (294) 2110 KGBSD Activities Allocation 34,007 327,896 - (361,903) - 12010 Kralis, Don & Lois Memorial 1,660 - - - 1,660 5040 Library 1,667 1,040 796 70 1,981 1040 Lockers 2,105 - - - 2,105 5050 Math Fees & Fines 2,884 755 - - 3,639 12015 Mestas, Larry Scholarship 550 - - - 550 1045 Miscellaneous 24,744 24,501 31,432 3,480 21,293 9050 Music Reg V Festival-A - - 2,150 2,470 320 9055 Music SE Honors-A - - 320 320-3220 National Art Honor Society 81 653 214 85 605 3230 National Honor Society 382-362 600 620 3240 National Oceanic Sciences Bowl 2,054 5,919 6,069 (1,300) 604 2120 Non Specific Activities Donations 144 1,750 - - 1,894 5060 Non Specific Fees & Fines 1,173 - - - 1,173 3250 Office Practice 1,031-257 (48) 726 3260 Pep Club (228) 2,322 404 (2,263) (573) 3270 Photography 605 - - - 605 1050 Planners 342 - - - 342 1055 Postage 4,308 609 3,180 37 1,774 3280 Production Tech 1,165 9,073 10,520 600 318 1060 PSAT Fees 4,007 1,505 196-5,316 3290 PTA 853 - - - 853 3300 Racing, Auto 1,017 2,760 - (1,000) 2,777 9065 Reg V Festival Music-H - 4,538 11,002 1,158 (5,306) 9070 Reg V Tournament Baseball-H (3,782) 3,782 - - - 9075 Reg V Tournament Basketball-H - 13,183 12,423 (600) 160 9090 Reg V Tournament Track-H - - 600 600-9100 Reg V Tournament Wrestling-H - 2,467 2,755 288-3310 Robotics (188) 560 - - 372 5070 Science Fees & Fines 1,977 704 429-2,252 12020 Senior Class Scholarship 12,105-2,000-10,105 9105 Soccer Protech - - 2,020 2,020-3320 Soccer, Boys 2,583 15,305 41,468 23,899 319 3330 Soccer, Girls (317) 34,528 38,983 24,040 19,268 5080 Social Studies Fees & Fines 1,314 10 147-1,177 3340 Softball (1,082) 27,587 54,119 24,987 (2,627) 9110 Softball Protech - - - - - 5090 Spanish Fees & Fines (522) 2,750 1,685-543 2130 Student Activities Participation Fees 21,064 53,891 2,600 (72,455) (100) 3350 Student Body Association 8,246 7,241 6,872 (3,214) 5,401 9
Schedule of Changes in Fiduciary Liabilities Year Ended June 30, 2014 Opening Income/ Expense/ Ending Student Club Acccounts, continued Balance * Additions Reductions Transfers Balance 3360 Sunshine $ 134 $ 650 $ 592 $ - $ 192 9115 Swim Reg V Tournament-A - - 11,140 11,140-3370 Swimming 700-27,321 28,439 1,818 9145 Swimming Protech - - 500 500-3380 Track (1,060) 12,476 41,567 27,521 (2,630) 9120 Track Reg V Tournament-A - 8,352 8,352-1065 Vending 59,250 6,924 10,157-56,017 3390 Visual Arts 15,357 2,614 3,061 500 15,410 3400 Vocational Medical Science 2,265 1,075 - - 3,340 3410 Volleyball 4,076 21,989 49,760 26,573 2,878 9125 Volleyball Protech - - 1,503 1,503-9130 Volleyball Reg V Tournament-A - - 2,593 2,593-3420 Welding 113 610 432 57 348 3430 Work Study, SPED 282 717 643-356 3440 Wrestling 507 32,311 54,258 22,249 809 3450 Yearbook 21,178 27,864 8,511-40,531 Unallocated interest on savings accounts - 508 - - 508 Total Student Club Accounts $ 535,308 $ 1,121,223 $ 1,074,405 $ - $ 582,126 * Some opening balances were reclassified to conform to the club accounts used in conjuction with the change from Blue Bear accounting software used in 2013 to the School Cash Suite accounting software used in 2014. The reclassifications had no impact on total cash for student activities. 10