SOLANCO SCHOOL DISTRICT Results of Annual Audit June 30, 2019 - - PowerPoint PPT Presentation

SOLANCO SCHOOL DISTRICT

Results of Annual Audit June 30, 2019

PRESENTED BY: BARBACANE, THORNTON & COMPANY LLP

Steven Kutsuflakis, CPA

Results of Audit

■ Comprehensive Annual Financial Report (CAFR) – Prepared by management – Unmodified opinions ■ Standards Followed – Auditing Standards Generally Accepted in the US – Government (Yellow Book) Auditing Standards ■ No significant deficiencies or material weakness in internal controls over financial reporting reported ■ A management letter was issued with recommendations for improving internal control processes

Results of Audit (cont’d)

■ Single Audit – In accordance with the Uniform Guidance – Unmodified opinion on compliance – No noncompliance reported – No significant deficiencies or material weakness in internal controls over compliance with the requirements of the major programs reported – Total federal expenditures were $3,767,117 – Major programs

■ Title I and Food Nutrition Cluster (71% of total spent) ■ The District met the requirements of a low risk auditee

Fund Balance Results

$6,280,867 $6,209,590 $20,850,392 $6,712,876 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000

2018 2019

General Fund Capital Projects

Fund balance – resources of the District available for use in future years Fund balance of the General Fund consistent with the previous year (1% decrease) Capital Project’s fund balance decreased due to the use of prior year borrowings for planned capital projects

General Fund

$258,668 $325,000 $2,032,216 $3,593,706 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000

Nonspendable Committed Assigned Unassigned

Fund Balance is classified as follows: Nonspendable fund balance is the prepaid Items and inventory Committed fund balance is committed by Board for tax reassessment property tax appeals Assigned fund balance is the amount to be used in next year’s budget Unassigned fund balance is not earmarked for a purpose (unrestricted)

General Fund Revenue Trends

$31,612,790 $33,205,377 $19,806,794 $20,047,273 2,145,726 2,264,864 1,466,178 1,619,624

• 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000

2018 2019

Taxes State Sources Federal Sources Other Sources

General Fund Spending

$33,471,881 $33,383,858 $16,164,057 $17,247,108 1,126,230 1,141,946

• 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000

2018 2019

Instruction Support Services Noninstructional

Food Service Fund Trends

$1,618,839 $1,589,114 $1,594,334 $1,567,495 1,540,000 1,550,000 1,560,000 1,570,000 1,580,000 1,590,000 1,600,000 1,610,000 1,620,000 1,630,000

2018 2019

Revenue Expenses

Revenues and expenses consistent from year to year

PSERS

■ The PSERs pension plan is 54% funded as

• f June 30, 2018 (PY 51.84%)

■ The District’s portion of the unfunded pension liability is .1617% which equates to a liability of $77,624,000 (PY .1630% and $80,468,000) ■ The PSERs OPEB plan is 5.56% funded as of June 30, 2018 (PY 5.47%) ■ The District’s portion of the unfunded OPEB liability is .1617% which equates to a liability of $3,371,000 (PY .1630% and $3,320,000) ■ These liabilities are measured on a one- year lag

District OPEB Plan

■ $2,673,765 net OPEB liability reported in the financial statements (The PY liability was $2,868,316). ■ Measured as of July 1, 2018

Other Audit Communications

■ No audit adjustments ■ Cooperation from management and members of staff ■ A meeting with management was held earlier in the month to discuss the audit results ■ The audit is expected to be finalized this week.