AUDIT HIGHLIGHTS YEAR ENDED JUNE 30, 2018 Audit dit Opinio inion- - - PowerPoint PPT Presentation

AUDIT HIGHLIGHTS YEAR ENDED JUNE 30, 2018

 Audit

dit Opinio inion- “Unmodified Opinion” meaning that the fina nancia ial l statem ements ents are prepared ared usin ing generally nerally accepted ted accounti ting principles nciples (GAAP), AP), do not contain ntain materia terial l misstat statemen ements, s, and nd are fairly ly present ented ed.

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audit it report rt Page ges s 2-4

State Aids Property Taxes Federal Other Rev enue Ty pe 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Percentage Minnew aska State Average

2018 Revenue Comparison

Admin & Suppor Direct Instruction Exceptional Instr Instructional Sup Site, Build & Equi Other Expenses 0% 10% 20% 30% 40% 50% Percentage Minnewaska State Ave rage

2018 Expense Comparison

Year Ended June 30, 2018 Year Ended June 30, 2017 Amount of Increase (Decrease) % Increase (Decrease) Local Sources Property Taxes $ 2,222,364 $ 2,387,592 $ (165,228) (6.9)%

2 years severance in 2017, tax decrease

Interest earnings 23,410 11,878 11,532 97.1%

Rates increased

Other 1,553,846 1,813,966 (260,120) (14.3)%

Baseball field donations 2017> Turf donations

State sources 13,440,812 13,141,297 299,515 2.3%

Aid 2%, 18 more students, less PERA/TRA

Federal sources 540,792 457,457 83,335 18.2%

More Special ed flow thru

Insurance Proceeds/Property Sales 40,511 384,558 (344,047) (89.5)% Fire loss 2017

Total General Fund Revenue $ 17,821,735 $ 18,196,748 $ (375,013) (2.1)

Year Ended June 30, 2018 Year Ended June 30, 2017 Amount of Increase (Decrease) % Increase (Decrease)

Analysis

Salaries $ 9,457,775 $ 8,983,593 484,182 5.3%

Contract, more staff

Employees benefits 2,632,870 2,277,471 355,399 15.6%

Contract, VEBA, TRA, PERA

Purchased services 3,440,560 3,286,248 154,312 4.7%

Transp, Janitorial, LTFM, Tuition

Supplies & material 758,022 631,976 126,046 19.9%

Supplies

Capital Expenditures 1,849,273 2,113,264 263,991 (12.5)%

Baseball, technology, LTFM

Debt Service 277,495 264,512 12,983 4.9%

Bobcat

Other expenditures 87,824 555,244 467,420 (84.2)%

TRA/PERA Total Expenditures $ 18,503,819 $ 18,112,288 $ 391,511 2.2%

Fund Balances (Deficits) 2018 2017 Change General Nonspendable 151,048 238,589 (87,541) Restricted for: Staff Development 261 169,565 (169,304) Operating Capital 16,275 119,761 (103,486) Other 210 10,804 (10,594) Severance & Retirement 217,296 489,813 (183,039) Total Restricted 234,042 789,943 (555,901) Assigned to: Music Department 12,899 12,899 Unassigned General 1,796,096 1,776,065 20,031 Total General Fund Balances $ 2,194,085 $ 2,817,496 (623,411)

2014 2015 2016 2017 2018 Ideal Year 0.00% 5.00% 10.00% 15.00% 20.00% 0.00% 0.00% 0.00% 0.00% 0.00% Dollars Percent of Expenditures

Unassigned General Fund Balance

Fund Capital Projects 2018 Balance 2017 Balance 255,575 Change (255,575) Debt Payment 395,019 359,874 35,145 Debt Refunding 7,166,005 (7,166,005) Food Service 205,399 91,482 113,917 Community Education 167,511 85,250 82,261

2018 Budgeted Amounts Actual General Fund Over (Under) Budget Original Final Revenues Local property tax levies $ 2,146,196 $ 2,198,153 $ 2,222,364 $ 24,211 Other local and county revenues 867,453 1,091,317 1,498,200 406,883 Revenues from state sources 12,949,008 13,045,232 13,440,812 395,580 Revenue from federal sources 478,397 506,280 540,792 34,512 Sales and other conversions of assets 71,560 78,912 79,056 144 Insurance recovery

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7,204 7,205 1

Total Revenues $16,512,614 $ 16,927,098 $ 17,788,429 $ 861,331

General Fund Expenditures 2018 Budgeted Amounts 2018 Actual General Fund Over (Under) Final Budget Current: Original Final District and school administration $ 672,437 599,470 602,156 2,686 District support services 267,828 408,814 408,791 (23) Regular instruction 6,296,771 6,355,555 6,401,982 66,427 Vocational instruction 246,675 323,781 323,753 (28) Exceptional instruction 5,064,077 5,125,899 5,467,281 341,382 Instructional support services 130,436 412,569 414,291 1,722 Pupil support services 1,341,047 1,357,736 1,364,564 6,828 Site, buildings and equipment 1,805,125 1,581,447 1,311,130 (270,317) Fiscal and other fixed cost programs 79,000 83,104 83,103 (1) Total Current 15,903,396 16,228,375 16,377,051 148,676 Capital Outlay 687,372 1,118,639 1,849,273 730,634 Debt Service: Principal 185,419 207,311 205,924 (1,387) Interest 68,530 70,186 71,571 1,385 Total Debt Service 253,949 277,497 277,495 (2)

Total Expenditures $ 16,844,717 $17,624,511 $ 18,503,819 $ 879,308

Budgeted Amounts Actual General Fund Variances with Final Budget Favorable (unfavorable) Original Final Excess (deficiency) of revenue over expenditures (332,103) (697,413) (715,390) (17,977) Other Financing Sources (Uses) Capital Equipment Lease ,58673 58,673 Sale of real property and equipment 10,000 33,305 33,306 1 Total Other Financing Sources (Uses) $ 10,000 $ 33,305 $ 91,979 58,674 Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing (Uses) $ (322,103) $ (664,108) $ (623,411) $ 40,697 Fund Balances - Beginning of Year 2,817,496 2,817,496 2,817,496

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Fund Balances - End of Year $ 2,495,393 $ 2,153,388 $ 2,194,085 $ 40,697

2018 2019 2020 2021 2022 2023 Year 250 500 750 1000 1250 1500 1750 2000 Thousands

Debt & Lease Payments

The District has reserved and committed fund balance to cover this liability. OPEB is being levied for each year

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 Other Post Employment 

Insurance Benefits (OPEB) Early Retirement Incentive (Severance) Plan

2018 $217,296 2017 $489,613

Fiscal Year Ended Annual OPEB Cost Actuarial Accrued Liability Net OPEB Assets (Liability)

06/3 /30/2018 $238,1 ,107 172,5 ,515 (2,0 ,063,8 ,828) 06/3 /30/2017 $ 310,8 ,850 (379,1 ,112) 06/30/2016 $ 313,214 $ 2,0 ,097,7 ,795 $ (130,9 ,903) 06/30/2015 $ 260,417 186,104 06/30/2014 $ 250,451 $ 446,521 06/30/2013 $ 253,844 $ 2,496,561 $ 696,972 06/30/2012 $ 246,626 $ 950,816 06/30/2011 $ 135,537 $ 2,507,154 $ 1,195,642

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2018 2017 % Chg

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TRA Liabili lity ty $23,195,628 ,195,628 $28,193,520 ,193,520 (17.7) 7)%

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PERA Liability $2,783,395 $ 3,320,878 (16.2)%

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Total $25,979,023 $31,514,398

TRA Assumptions– 7.5 % return, 2.50% inflation, 3.0% payroll growth Current Contribution Rate- 7.5% employer, 7.5% employee

T R A P E R A 5 1 0 1 5 2 0 2 5 3 0 Millions 2 0 17 2 0 18

Food d Service vice Defici cien encies cies all co correc ecte ted Inte ternal rnal Control rol & & Minne nesota sota Compl pliance iance No defici cien encies cies were co corrected ected

MATE TERIAL IAL WEAKNE NESSES ES Def efici cien ency 201 018-1, 1, 5 Segregation tion of Dutie ies Pages es 7 75, , 79 Def efici cien ency 201 018-2, 2, 6 Materia ial l Adjustme stments ts P Page ges s 76, , 80 SIGN GNIF IFIC ICANT ANT DEFIC FICIE IENC NCIES IES Def efici cien ency 201 018-3 3 Assistance ance Prep eparin aring g Fina nancia ncials ls Page e 77 77 Def efici cien ency 201 018-4 4 Student Activit ivity Accounti counting g Page e 78 STATE ATE COMPLI LIANC ANCE E Pages es 83 -86 86 Def efici cien ency 201 018-7 7 Contra racti cting/B ng/Bid id law compli lian ance e Def efici cien ency 201 017-8 8 Borrowi rowing g Def efici cien ency 201 018-9 9 Booster er clu lubs

 Thanks to the District Staff for their

cooperation during the audit.