Sun Prairie Area School District posts $1.9 million increase in general fund, auditors say
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Summary
An independent audit presented to the Sun Prairie Area School District found an unmodified opinion on the 2024 financial statements and reported a $1.9 million increase in the district's general fund balance, with recommendations on capitalization and compensated-absence accounting.
Tara Bast, audit partner with Johnson Block and Company, presented the Sun Prairie Area School District's 2024 audited financial highlights, saying the auditors issued an unmodified opinion and that the district's general fund balance increased by $1.9 million.
The unmodified opinion, Bast said, means the financial statements "are fairly stated and presented in accordance with applicable accounting standards and free of any material misstatements." The audit package also includes the management discussion and analysis, fund financial statements, notes to the financial statements, and required supplementary schedules, Bast said.
Key figures in the presentation included total general-fund assets of $60,860,000; current liabilities of just over $18,000,000; and $9,000,000 in short-term cash-flow borrowing, leaving a reported general-fund balance of $33,573,000. Bast said the district's unassigned fund balance represented 13.7% of the next year's operating budget and total fund balance equaled 19.6% of the operating budget, compared with 13.7 percentage points prior-year comparisons of 17.1% (unassigned) and 22.7% (total).
Bast said the district had budgeted an amended decrease in fund balance of $874,000 but actual results produced a $1,900,000 increase, primarily because instructional expenses were below budget. The auditors noted the district transferred $500,000 to its capital improvement fund, producing a reported ending fund balance for future capital of $8,900,000.
The presentation covered other funds. Bast said the food service fund, reported as a major proprietary (business-type) fund under full accrual accounting, showed a decrease in net position of $557,863 on an accrual basis; on a regulatory and budgetary basis the food service fund showed a decrease of about $612,000. Bast summarized food-service cash-flow activity as yielding a $355,500 increase in cash and cash equivalents for the year.
On debt, Bast said state statutes allow the district to borrow up to 10% of the equalized value for general obligation debt; as of fiscal year-end 2024 the district had used approximately 63% of its available general-obligation debt capacity. Bast also reviewed five-year trends in revenues and expenditures, noting the two largest revenue categories were local tax dollars and intergovernmental (state and federal) aid.
The annual audit process includes certifications to the Wisconsin Department of Public Instruction. Bast said the auditors' federal and state compliance testing found no material weaknesses, significant deficiencies, or other compliance findings. The auditors provided a communication packet with letters and recommendations; Bast said items discussed with management included reviewing the district's capitalization-dollar thresholds and updating methods for estimating compensated absences under new governmental accounting guidance.
The presentation was a screencast summary of audit report contents and highlights; Bast concluded with the auditors' standard report disclaimers and the statement of no material compliance findings.
