Highlights Highlights of theof the2010 2010 Audit Audit ReportReport

Type of AuditType of Audit

Comprehensive Annual Comprehensive Annual

Financial Report (CAFR)Financial Report (CAFR)

-Introductory Section-Introductory Section

-Financial Section-Financial Section

-Statistical Section-Statistical Section

-Single Audit Section-Single Audit Section

Transmittal LetterTransmittal Letter P. 1 – Management ResponsibilityP. 1 – Management Responsibility P. 2 – Debt AdministrationP. 2 – Debt Administration P. 3 – Cash ManagementP. 3 – Cash Management P. 4-5 – Major Initiatives and P. 4-5 – Major Initiatives and

AchievementsAchievements

Pages 1 - 6

INTRODUCTORY SECTION

Certificates of AchievementCertificates of Achievement

1983 Association of School Business 1983 Association of School Business Officials International – Officials International – only 14 Iowa only 14 Iowa School Districts received this in 2009School Districts received this in 2009

Page 7

Management’s Discussion & Management’s Discussion & AnalysisAnalysis

2010 Financial Highlights2010 Financial Highlights All funds total net asset decreased by $1,140,293 All funds total net asset decreased by $1,140,293

(p. 17)(p. 17) General Fund Balance decreased. Undesignated General Fund Balance decreased. Undesignated

Fund Balance decreased by $914,835 while Fund Balance decreased by $914,835 while Restricted Fund Balance increased by $130,012. (p. Restricted Fund Balance increased by $130,012. (p. 26)26)

Cash Balance Reduction of $689,260 due to State Cash Balance Reduction of $689,260 due to State Aide Reductions.Aide Reductions.

Decrease in Nutrition Fund Balance of $20,474 as Decrease in Nutrition Fund Balance of $20,474 as the result of $9,325 in operating loss and $11,149 the result of $9,325 in operating loss and $11,149 of net long-term liabilities for OPEB.of net long-term liabilities for OPEB.

Decrease in Child Care Fund Balance of $4,534 as Decrease in Child Care Fund Balance of $4,534 as the result of $2,810 in operating loss and $1,724 of the result of $2,810 in operating loss and $1,724 of net long-term liabilities for OPEB.net long-term liabilities for OPEB.

Page 13

FINANCIAL SECTION

Economic Factors – Economic Factors – District FutureDistrict Future

Local, State and National EconomyLocal, State and National Economy Possible Decline in EnrollmentPossible Decline in Enrollment Election of a Republican GovernorElection of a Republican Governor Election of a Republican HouseElection of a Republican House

Page 22

Governmental ActivitiesGovernmental Activities

General FundGeneral Fund Student Activity FundStudent Activity Fund Debt ServiceDebt Service Capital Projects – PPEL, Sales TaxCapital Projects – PPEL, Sales Tax Management FundManagement Fund

Page 24-29

Governmental FundsGovernmental FundsGeneral FundGeneral Fund

Undesignated Fund BalanceUndesignated Fund Balance

20082008 20092009 20102010

3,359,636 3,629,572 3,359,636 3,629,572 2,714,7372,714,737

Page 26

Governmental Funds (cont)Governmental Funds (cont)Undesignated Fund BalanceUndesignated Fund Balance

Management FundManagement Fund 926,035 1,001,797926,035 1,001,7971,082,6291,082,629

Activity FundActivity Fund 321,252321,252 294,542 294,542

313,465 313,465

Physical Plant &Physical Plant & 631,590631,590 790,061 790,061 1,122,783 1,122,783

Equipment FundEquipment Fund (PPEL)(PPEL)

2008 2009 2010

Page 26

Governmental Funds (cont)Governmental Funds (cont)

Capital Projects FundCapital Projects FundUndesignated Fund BalanceUndesignated Fund Balance

Page 26

Sales Tax 2,467,166 2,888,503Sales Tax 2,467,166 2,888,503 2,205,412 2,205,412

2008 2010 2009

Business Type ActivitiesBusiness Type Activities

School NutritionSchool Nutrition Day CareDay Care Internal Services – Self-Funded Internal Services – Self-Funded

HealthHealth

Page 30-34

Business-Type FundsBusiness-Type FundsUndesignated Fund BalanceUndesignated Fund Balance

DaycareDaycare 211,457 211,457 218,480 218,480 214,630214,630

SchoolSchool 531,121 465,650531,121 465,650 318,448 318,448

NutritionNutrition

2008 2009 2010

Page 32

Internal Service FundInternal Service FundUndesignated Fund BalanceUndesignated Fund Balance

Self-Funded 1,852,846 1,092,325 Self-Funded 1,852,846 1,092,325 915,748915,748

HealthHealth

2008 2009 2010

Page 30

Agency FundAgency FundDue to Other GroupsDue to Other Groups

20082008 20092009 20102010

12,12912,129 11,716 11,716 11,459 11,459

Page 34

Pages 61-98

P. 60-66 Financial Trends

P. 67-70 Revenue Capacity

P. 71-76 Debt Capacity

P. 77-79 Demographic and Economic

P. 80-83 Operating Information

P. 84-98 Miscellaneous

STATISTICAL SECTION

P. 67 Taxable Value Last Ten Years

P. 81 Free and Reduced Last Ten Years

P. 82-83 School Building Last Ten Years

P. 90 Official Enrollment by Grade Last Ten Years

P. 94 Average Salaries by Education

P. 95 Settlement Trends Last Ten Years

P. 96 Solvency Ratio Last Ten Years

STATISTICAL SECTION (cont)

Federal AwardsFederal Awards

Total Federal AwardsTotal Federal Awards $2,766,201$2,766,201

Pages 97-98Pages 97-98

Title ITitle I Pages 99Pages 99

Schedule of FindingsSchedule of Findingsand Questioned Costsand Questioned Costs

Part II Part II Findings Related to Basic Findings Related to Basic

Financial Statements -Financial Statements -Internal Control DeficienciesInternal Control Deficiencies

A) Invoice dated after purchase A) Invoice dated after purchase order/policies not followed – order/policies not followed – Policies and procedures are in Policies and procedures are in place – Personnel matter.place – Personnel matter.

Page 104-105

Part IIIPart IIIFindings and Questioned Cost Findings and Questioned Cost

for Federal Awardsfor Federal Awards

No Matters of Non-No Matters of Non-ComplianceCompliance

Page 105

Part IVPart IVStatutory Findings Related to Statutory Findings Related to Required Statutory ReportingRequired Statutory Reporting

Page 106

D. Business Transaction

1) Transparency of transactions for purchases

2) Conflict of interest for Bill Hagge

3) Certified Enrollment - overstated