- School district gets "A" on annual audit report
By Myrna Trauntvein
Some highlights indicating that Juab School District is in good financial health were discussed during presentation of the annual audit.
Matt Geddes and Dave Brown, representing Squire and Company, PC, said that the year ending June 30, 2012, had been audited by them.
"Instruction represents the largest dollar portion of expense of $11.7 million primarily for teacher salaries and related benefits," said Brown. "This is an increase of $0.2 million compared to the prior year due to increases in instructional supplies."
Other expenses for governmental activities include interest on long-term liabilities at 5 percent, community services at 2 percent, school food services at 6 percent and supporting services 22 percent.
The district's assets exceeded liabilities by $16.5 million at the close of the fiscal year.
"Net assets may serve over time as a useful indicator of a government's financial position," said Brown.
The district's basic financial statements comprise three components: government-wide financial statements, fund financial statements and notes to basic financial statements.
"During 2012, the district's expenses were $0.2 million less than the $18.1 million generated in taxes and federal, state, and other revenues for governmental activities," said Brown.
The largest portion of the district's net assets at 65.5 percent, reflects its investment in capital assets such as land, buildings and equipment net of accumulated depreciation less any related outstanding debt.
"The district uses these capital assets to provide services to students; consequently, these assets are not available for future spending," said Brown.
An additional portion of the district's net assets at 26.1 percent represents resources that are subject to external restrictions on how they may be used.
The remaining balance of unrestricted net assets at 8.4 percent, may be used to meet the district's obligations to students, employees, and creditors and to honor next year's budget.
"At the end of the current fiscal year," said Brown, "the district is able to report positive balances in all categories of net assets," he said. "The same situation held true for the prior fiscal year."
The district's net assets increased by $0.2 million during the current year.
"We gave the district a clean opinion, which is the best grade we can give as auditors," he said.
Government-wide financial statements are designed to provide readers with a broad overview of the district's finances in a manner similar to a private-sector business.
In the process of performing the audit, said Brown, the auditors visit the high school on an annual basis and then rotate between the other schools.
"We visited three schools this year," said Geddes. "We continue training the school personnel."
In addition, the auditors review the student population and test the federal funding program funds and use. That testing is required, he said.
"We are happy to report that you also got an 'A' grade there," Geddes said.
The purchasing policy had been changed this past year, said Brown. The new policy seemed to be working as it was intended.
The government-wide financial statements of the district are reported as governmental activities; the district has no business-type activities; and governmental activities and functions include instructional services, supporting services, school food services, and interest on long-term liabilities.
"Property taxes and state and federal grants finance most of these activities," said Brown.
The district, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
All of the funds of the district are classified as governmental funds.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
"The district maintains six individual governmental funds," said Brown.
Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the debt service fund and the capital projects fund. Each of these is considered to be major funds.
Data from the other three governmental funds are combined into a single, aggregated presentation.
As for revenues, said Geddes, property taxes brought in 35 percent, operating grants and contributions brought in 29 percent; federal and state aid not restricted to specific purposes brought in 31 percent, charges for services brought in 2 percent and miscellaneous brought in 3 percent.