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 25,000,000 $20,850,392 20,000,000 15,000,000 Fund balance – resources of the District available for use in future $6,280,867 $6,712,876 10,000,000 years $6,209,590 Fund balance of the General Fund 5,000,000 consistent with the previous year (1% decrease) 0 Capital Project’s fund balance 2018 2019 decreased due to the use of prior year borrowings for planned capital projects General Fund Capital Projects

General Fund Fund Balance is classified as $4,000,000 follows: $3,593,706 $3,500,000 Nonspendable fund balance is the $3,000,000 prepaid Items and inventory $2,500,000 $2,032,216 Committed fund balance is $2,000,000 committed by Board for tax $1,500,000 reassessment property tax appeals $1,000,000 Assigned fund balance is the $325,000 $500,000 $258,668 amount to be used in next year’s $- budget Unassigned fund balance is not Nonspendable Committed earmarked for a purpose (unrestricted) Assigned Unassigned

General Fund Revenue Trends 35,000,000 $33,205,377 $31,612,790 30,000,000 25,000,000 $19,806,794 $20,047,273 20,000,000 15,000,000 10,000,000 5,000,000 2,145,726 2,264,864 1,466,178 1,619,624 - 2018 2019 Taxes State Sources Federal Sources Other Sources

General Fund Spending 40,000,000 $33,471,881 $33,383,858 35,000,000 30,000,000 25,000,000 20,000,000 $17,247,108 $16,164,057 15,000,000 10,000,000 5,000,000 1,126,230 1,141,946 - 2018 2019 Instruction Support Services Noninstructional

1,630,000 Food Service $1,618,839 1,620,000 Fund Trends 1,610,000 1,600,000 $1,594,334 $1,589,114 1,590,000 1,580,000 Revenues and expenses $1,567,495 consistent from year to year 1,570,000 1,560,000 1,550,000 1,540,000 2018 2019 Revenue Expenses

PSERS ■ The PSERs pension plan is 54% funded as of 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.