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External audit issues clean opinion; single-audit pending, reserves and fund balance improved
Summary
The district's external auditor issued an unmodified (clean) opinion on the financial statements and internal control compliance; single-audit (uniform guidance) reporting is pending release of federal compliance supplement. Fund balance and reserves grew; capital projects and bonds totals and pension notes were summarized.
The district's external auditors presented a summary of the financial statement audit and related reports, delivering an unmodified opinion on the financial statements and on internal control and compliance under government auditing standards.
The presenters told the board the audit issued a "clean opinion" (unmodified opinion) on the financial statements and that single-audit (uniform guidance) reports are delayed pending the Office of Management and Budget's final compliance supplement. The audit firm said it will issue the financial statements and government-audit standards report in time for required filings and will issue the uniform-guidance reports once the federal supplement is released.
Highlights the auditors reviewed included: general fund assets ended the year just under $53 million with increases mostly in cash and cash equivalents; restricted reserves increased by roughly $4.9 million while assigned fund balance decreased about $600,000; unassigned fund balance increased slightly and remains within the 4% statutory limit (the district reported unassigned fund balance at $6,000,005 and a 4% cap of $6,000,007.61, representing roughly 3.85% of the next year's budget).
The auditors reported total general-fund revenues rose by about $4.8 million to $160.8 million, driven largely by a roughly $4.1 million increase in property-tax revenue; expenditures increased by about $1.2 million to $156.3 million. Capital outlays for the year totaled approximately $19.8 million. The special-aid fund reported roughly $9.2 million in activity; the school-lunch fund reported revenues near $3.5 million with expenditures around $3.31 million.
Notes reviewed included capital-asset activity showing net additions to construction-in-progress and equipment for a net increase in capital assets of about $14 million and long-term bonds outstanding of roughly $70 million with scheduled payoffs through 2039. Pension disclosures show the district's proportionate share of the statewide Employee Retirement System and Teachers' Retirement System liabilities and assets; on the TRS side the plan was reported as overfunded at the plan level, producing a net pension asset in the district's share.
Auditors also noted management comment letter items and a commentary on the extracurricular-activity fund (unmodified opinion on that fund but comment letters with receipt and documentation concerns). The audit presentation included corrected misstatements that occurred during the audit process and several routine disclosure and note changes related to new accounting standards.
The auditors invited trustees and staff to read the management's discussion and analysis and other narrative sections for more context and said that one prior-year finding related to accounts payable and the capital projects fund had been corrected for the current year.
No formal board votes were recorded at the meeting during the audit presentation; auditors said they will finalize and distribute reports once outstanding single-audit matters are resolved.
