Transcript MINNEWASKA SCHOOL DISTRICT #2149

MINNEWASKA SCHOOL DISTRICT
#2149
AUDIT
HIGHLIGHTS
YEAR ENDED JUNE 30, 2012
CURRENT YEAR SUMMARY
 Audit Opinion- “Unqualified Opinion” audit report Pages 2-3
Figure A-3
Sources of Minnewaska Area School's Revenues
Fiscal Year 2012
Miscellaneous Local
1.8%
PropertyTaxes
18.4%
Charges for Services
8.4%
Federal & State Aids & Grant Programs
71.4%
General Fund Revenues
Year Ended
June 30, 2012
Local Sources
Property Taxes
Interest earnings
Other
State sources
Federal sources
Other Financing Sources
Total General
Fund Revenue
$
1,635,425
7,910
1,285,209
10,038,479
687,339
8,051
$ 13,662,413
Year Ended
June 30, 2011
$
Amount of
Increase
(Decrease)
%
Increase
(Decrease)
(25.6)%
(57.2)%
13.4 %
10.7 %
(7.0)%
(55.9)%
2,197,205
18,486
1,133,586
9,069,916
739,202
18,275
$
(561,780)
(10,576)
151,623
968,563
(51,863)
(10,224)
$ 13,176,670
$
485,743
3.7 %
Figure A-4
Minnewaska Area School's Expenses
Fiscal Year 2012
Food services
4.6%
Fiscal & fixed
0.4%
Interest Expense
4.0%
Administration & District Support
5.8%
Site, Buildings, Equipment
13.1%
Pupil & Instructional support
8.6%
Community Ed
2.1%
Exceptional Instruction
27.9%
Direct Instruction
33.4%
General Fund Expenditures
Year Ended
June 30, 2012
Salaries
Employees benefits
Purchased services
Supplies & material
Non-Capital equipment
Capital Expenditures
Debt Service
Other expenditures
$
7,404,398
1,713,318
2,658,849
667,102
143,689
99,353
224,865
69,586
Total Expenditures
$ 12,981,140
Year Ended
June 30, 2011
$
7,462,498
1,786,276
2,440,605
720,099
198,952
219,874
233,219
59,677
$
$ 13,121,200
$
Amount of
Increase
(Decrease)
(58,100)
( 72,958)
218,244
(52,997)
(52,263)
(121,521)
(8,354)
9,889
%
Increase
(Decrease)
( 0.8)%
(0.4)%
8.9%
(7.4)%
(27.8)%
(54.8)%
(3.6)%
16.6%
(140,060)
(1.1)%
General Fund Revenues- Budget to
Actual
Budgeted Amounts
Original
Final
Actual
General Fund
Over (Under)
Budget
$
Revenues
Local property tax levies
$ 1,603,234
$ 1,606,504
$ 1,635,425
Other local and county revenues
1,039,988
1,110,158
1,246,782
136,624
Revenues from state sources
9,646,307
10,027,578
10,038,479
10,901
Revenue from federal sources
677,827
698,578
687,339
(11,239)
Sales and other conversions of assets
29,540
43,930
44,639
709
-0-
1,697
1,698
1
$ 12,996,896
$ 13,488,445
$ 13,654,362
$ 165,917
Insurance recovery and settlement
Total Revenues
28,921
General Fund Expenditures
Current:
District and school administration
District support services
Regular instruction
Vocational instruction
Exceptional instruction
Community education and services
2012 Budgeted Amounts
Original
Final
2012 Actual
General Fund
Over
(Under) Final
Budget
$
$ 546,560
$ 582,000
$ 588,988
6,988
296,891
296,638
263,632
(33,006)
5,017,402
4,909,073
4,859,060
(50,013)
89,504
87,675
86,922
(753)
4,270,606
4,305,030
4,282,667
(22,363)
-0-
-0-
-0-
-0-
116,801
115,729
133,120
17,391
Pupil support services
1,104,418
1,171,204
1,151,810
(19,394)
Site, buildings and equipment
1,104,134
1,,249,059
1,089,430
(159,629)
48,495
51,260
51,259
(1)
12,594,811
12,767,668
12,506,888
(260,780)
235,238
250,377
243,042
(7,335)
Principal
96,051
105,940
105,546
Interest
138,666
114,956
119,319
4,363
-0-
6,345
6,345
-0-
234,717
227,241
231,210
3,969
Instructional support services
Fiscal and other fixed cost programs
Total Current
Capital Outlay
Debt Service:
Debt issuance costs
Total Debt Service
Total Expenditures
$ 13,064,766
$13, 245,286
$ 12,981,140
(394 )
$ (264,146)
Budgeted Amounts
Original
Excess (deficiency) of revenue over expenditures
Variances with
Final Budget
Favorable
(unfavorable)
Actual General
Fund
Final
(67,870)
243,159
673,222
430,063
Sale of real property and equipment
-0-
-0-
75
75
Capital Equipment Lease
-0-
-0-
7,976
7,976
Other Financing Sources (Uses)
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other Financing
Sources Over (Under) Expenditures and Other
Financing (Uses)
Fund Balances - Beginning of Year
Fund Balances - End of Year
$
-0-
$ (67,870)
$
$
-0-
$
8,051
$
8,051
243,159
$
681,273
$ 438,114
1,351,651
1,351,651
$
1,351,651
-0-
$ 1,283,781
$ 1,594,810
$
2,032,924
$ 438,114
Fund Balance Classifications
Fund balance is divided into five classifications:
 Nonspendable Not in spendable form
 Restricted Fund balance is reported as restricted when
constraints externally imposed
 Committed Can be used only for the specific purposes
imposed by a formal action (resolution) of the School
District Board of Education
 Assigned Intended to be used by the School District for
specific purposes
 Unassigned All spendable amounts not contained in the
other classifications
Fund Balances
(Deficits)
Total
Nonspendable
Restricted for:
Debt Payment
Food Service
Operations
Community Education
School Readiness
Early Childhood
Community Service
Operations
Staff Development
Deferred Maintenance
Operating Capital
Gifted and Talented
Safe Schools
Severance &
Retirement
Total Restricted
General
Nonmajor
Governmental
Funds
Debt
Service
Total
223,615
-0-
23,017
246,632
-0-
328,550
-0-
328,550
-0-0-
-0-0-
5,503
3,056
5,503
3,056
-0-0-
-0-0-
734
4,313
734
4,313
-033,118
1
344,063
6,016
1,395
-0-0-0-0-0-0-
1,492
-0-0-0-0-0-
1,492
33,118
1
344,063
6,016
1,395
160,173
-0-
-0-
160,173
544,766
328,550
15,098
888,414
Committed to:
Separation
478,322
Assigned to:
Day Treatment
Music Department
105,582
66,020
-0-0-
-0-0-
105,582
66,020
171,602
-0-
-0-
171,602
614,619
-0-
-0-
614,619
Total Assigned
Unassigned (Deficit)
478,322
The property tax shift is an accounting entry that takes a portion of the school district's property
tax revenue and moves it forward one fiscal year, i.e., taxes that would otherwise be revenue for
fiscal year 2013 are shifted into fiscal year 2012. This shift replaces state aid that will be
repaid at some future date. The property tax shift requirement is in Minnesota Statutes,
section 123B.75, subdivision 5.
POST EMPLOYMENT SEVERANCE
BENEFITS
Early
Retirement
Incentive
(Severance)
Plan
2012
2011
$638,495
$682,579
The District has reserved fund balance to cover this
liability.
PostEmployment
Insurance
Benefits
Actuarial
Valuation
Date
7/1/11
Actuarial
Value of
Assets (a)
$ 1,241,468
Actuarial
Accrued
Liability
(AAL) (a)
$ 2,507,154
Unfunded
AAL (b-a)
$
1,265,686
49.5%
$ 6,994,975
UAAL as a
Percentage
of Covered
Payroll (b-a)/c)
18.1%
7/1/09
1/1/07
$ 1,422,070
$
-0-
$ 1,725,533
$ 1,646,049
$
303,463
$ 1,646,049
82.4%
0.0%
$ 7,153,122
$ 7,298,261
4.2%
22.5%

Funded
Ratio
(a/b)
Covered
Payroll (c)
This is the unfunded portion that eventually needs to be covered.

Prior Year Follow up
Corrected
Deficiency 2011-1 – Food Service Account Expenses
Deficiency 2011-2 Financial Oversight & Monitoring Controls
Deficiency 2011-4 - Fiscal Agent Responsibilities
Work in Progress
Deficiency 2011-3 – Period End Financial Reporting Process
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 financial misstatements on a timely basis.
Material Weakness
Reasonable possibility that a material misstatement of the financial statements will not
be prevented or detected by the District’s internal controls.
Significant Deficiency
Deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with
governance."
CURRENT YEAR SUMMARY

Internal Controls Reporting Pages 65-66
MATERIAL WEAKNESSES
Deficiency 2012-1 Ineligible students were being provided services by Title I teachers. Page 70
Deficiency 2012-2- Controls did not detect that ineligible students were receiving free and
reduced meals & some students should have received free and reduced benefits, but didn’t.
Page 71
SIGNIFICANT DEFICIENCIES
Deficiency 2012-3 – Documenting Time Charged to Federal Programs Page 72
Deficiency 2012-4 – Period End Financial Reporting Page 73
STATE COMPLIANCE Page 69
No compliance exceptions noted
Summary (Continued)
 Federal Awards Program Audit

Internal Control Deficiency
Deficiency 2011-1-Food Service Account Expenses
Page 70
2012 Conclusions
 The District needs to continue to closely monitor its
revenues & expenditures related to Day Treatment &
Special Ed. Once payments for prior year are finalized
the budget should be reviewed.
 The District needs to monitor its rising unfunded OPEB
actuarial accrued liability and consider how it is going to
fund this deficit.
 The District needs to continue to pay down debt.
SAS 114 Letter
 Thanks to the District Staff for cooperation
during the audit.
Desautels Bartosiewski
& Associates CPAs