FY14 Audit Report EXECUTIVE SUMMARY · Microsoft PowerPoint - Presentation14.ppt [Compatibility...

Report prepared by McGladrey, LLP in conjunction with the Finance Office Presented by: Jon Schulte, McGladrey, LLP December 8, 2014

FY14 Audit Report

EXECUTIVE SUMMARY

Purpose: To receive the findings of the FY14 audit report.

Attached is the PowerPoint presentation of the FY14 audit report of the School District’s auditors, McGladrey, LLP. Jon Schulte from McGladrey, LLP will be in attendance at the meeting on Monday, December 8, 2014, to present the audit findings.

Recommendation: It is recommended that the School Board approve the audit report for FY14 and direct the audit to be sent to the Department of Legislative Audit for their approval.

Sioux Falls School District 49-5Sioux Falls School District 49 5

© 2012 McGladrey LLP. All Rights Reserved.


Data portrayed in the attached graphic presentations were derived from the District’s b i fi i l t t t hi h dit dbasic financial statements which were audited by McGladrey LLP whose report thereon is expected to be dated in December 2014 Theexpected to be dated in December 2014. The data should be read in conjunction with the District’s basic financial statements and theDistrict s basic financial statements and the auditor’s report thereon.


2

200

220

Milli

ons

GOVERNMENT WIDENet Position

200 208 202

29

34 39 34

160

180

200

31 29 34

120

140

135 141 134 60

80

100

20

40

60

0 2012 2013 2014

Net capital assets Restricted Unrestricted


3

30

lions

GENERAL FUNDFund Balance

28.5

25

Mil

24.6 24.1

20

15

5

10

0 2012 2013 2014


Unassigned Next Year's Budget or Other

4

GENERAL FUND (continued)

64.8 65.8

70

ions


Revenues

61.3 64.8

50.3 52.2

54.6 60

Milli

40

50

30

12.7 12.1 11.08.1 8.2 8.1 10

20

0 2012 2013 2014


Local Taxes State Sources Federal Grants Other

5

140

ons


Expenditures

107.7 110.4

119.2 120

Milli

o

80

100

60

14.8 15.0 16.1 20

40

6.8 6.6 7.21.4 0.8 1.0

0 2012 2013 2014

Salaries/Benefits Purchased Services Supplies/Materials Other


Salaries/Benefits Purchased Services Supplies/Materials Other

6

Local Taxes47 2%

Federal Grants 7.9%

Other5.8%

Revenues


47.2%

State Sources39.1%

Supplies/Materials5.0% Other

Expenditures and Other Financing Uses

Salaries/Benefits 83.0%

Purchased Services11.2%

0.7%


7

SPECIAL EDUCATION FUND

7,907 8,000

Fund Balance

Thousands

5,854 6,500 7,000 7,500 ,

5,444

4 500 5,000 5,500 6,000

3,000 3,500 4,000 4,500

1,500 2,000 2,500 3,000

0 500

1,000

2012 2013 2014


2012 2013 2014

8

SPECIAL EDUCATION FUND (continued)

10 9 10 7 11.4 12.2

15.1 15.0

12 13 14 15 16

RevenuesSPECIAL EDUCATION FUND (continued)

ions

10.9 10.7

4.2

7.1

4 5 6 7 8 9

10 11 12 Mi

ll

2.5 1.1 1.0 1.1

0 1 2 3 4

2012 2013 2014Local Taxes State Aid Federal Grants OtherLocal Taxes State Aid Federal Grants Other

22.5 23.3

27.1

20 22 24 26 28 30

Milli

ons Expenditures

4.2 4.4 4.5 2 04

6 8

10 12 14 16 18 20

0.6 2.0 0.6 0 2 4

2012 2013 2014

Salaries/Benefits Purchased Services Other


9

Local Taxes33 0%Federal Grants

Other3.1%

RevenuesSPECIAL EDUCATION FUND (continued)

33.0%Federal Grants 20.4%

3.1%

State Aid43.4%

Salaries/Benefits 84.3%Purchased Services

13.8%Other1.9%

Expenditures


10

CAPITAL OUTLAY AND PROJECTS FUNDS

50,000

Fund Balance

CAPITAL OUTLAY AND PROJECTS FUNDS

46,010

40,000

Thou

sand

s

,

36,066

30,000

10,000

20,000 13,586

0 2012 2013 2014

(10,000)

/


Capital Outlay Capital Improvement Elementary Project/Middle School Project

11

T

F d B l

POST SECONDARY VOCATIONAL FUND

8 167 8,367 9,000

10,000

housands

Fund Balance

6,378

8,167

6,000

7,000

8,000

4,000

5,000

6,000

1,000

2,000

3,000

0

2012 2013 2014


12

FOOD SERVICE FUND

Revenues, Expenses and Net Income

9,417 9,847 10,191

9 111 9,696

10,525

10,000

12,000

Thou

sand

s


9,111

8,000

T

4,000

6,000

306 151 0

2,000

(333)

(2,000)

0

2012 2013 2014

Revenues Expenses Net Income


13

FOOD SERVICE FUND (continued)

7,000

ds

FOOD SERVICE FUND (continued)

Net Position

6 422 6,573

6,000 Thou

sand 6,2406,422

4,000

5,000

3,000

1,000

2,000

0 2012 2013 2014


Net Capital Assets Unrestricted

14

30 000


GROUP HEALTH INSURANCE FUND

24,955 26,035

27,314 26,325 26,469 26,353

25,000

30,000

Thou

sand

s

15,000

20,000

5,000

10,000

(1,370) (434)

961

(5 000)

0

(5,000) 2012 2013 2014

Revenues Expenses Net Income (Loss)


p ( )

15

12,000

ds

Net PositionGROUP HEALTH INSURANCE FUND (continued)

9,494 9,059

10,020 10,000 Th

ousa

nd

8,000

4,000

6,000

2,000

0 2012 2013 2014

Net Position


16

Post Audit Communications

New accounting standard implemented- GASB 65, Items Previously Reported as Assets and Liabilities,

Deferred outflows and inflows of financial resources

Audit adjustments Audit adjustments- $445,708 to defer stop-loss policy revenue- $245,000 write off of debt issuance costs at Southeast Technical

Institute Housing Foundation (a component unit)

Uncorrected misstatementsP i il th d l f lf i li bilit d- Primarily the under accrual of self insurance liability and construction payables, and overstated depreciation expense

No significant or unusual transactionsNo significant or unusual transactions Summary of significant accounting estimates

- Self-insurance liability, allowance for doubtful accounts, other


y, ,postemployment benefit liability

17

Internal Control / Federal Award Compliance

No material weaknesses in internal control over financial reporting noted

Significant deficiency in internal control over financial reporting - related to audit adjustment

Two federal award compliance issues reported - Deficiency in reconciliation procedures for Federal

Direct Student Loans disbursements (STI)- Delay in reporting of STI student withdrawals, due

to delay in appropriate software updateto delay in appropriate software update Control deficiencies communicated to

management© 2012 McGladrey LLP. All Rights

Reserved.

management18

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