Professional Documents
Culture Documents
TABLE OF CONTENTS
Page
Independent Auditor's Report
13
14
15
16
17
18
Fiduciary Funds
Statement of Fiduciary Net Position
19
21
50
51
52
54
55
Fiduciary Funds
Combining Statement of Changes in Assets and Liabilities
56
-1-
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, each major fund, and the
aggregate remaining fund information of the School District, as of June 30, 2015, and the
respective changes in financial position, for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Changes in Accounting Principles
As discussed in Note 15 to the financial statements, the School District implemented GASB
Statement No. 68, Accounting and Financial Reporting for Pensions, during the year. As a
result, the financial statements now recognize the School Districts unfunded defined pension
benefit obligation as a liability for the first time and more comprehensively and comparably
measures the annual costs of pension benefits. The statement also enhances accountability and
transparency through revised note disclosures and required supplemental information (RSI). Our
opinions are not modified with respect to this matter.
Also as discussed in Note 15 to the financial statements, the School District implemented GASB
Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement
Date - An Amendment of GASB Statement No. 68, during the year. As a result, the School
District recognized a beginning deferred outflow of resources for its pension contributions made
subsequent to the measurement date of the beginning net pension liability. Our opinions are not
modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
managements discussion and analysis, budgetary comparison schedules, and schedules of
proportionate share of net pension liability and contributions, as listed in the table of contents be
presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with managements responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
-2-
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the School Districts basic financial statements. The combining and
individual fund financial statements, as listed in the table of contents, are presented for purposes
of additional analysis and are not a required part of the basic financial statements.
The combining and individual fund financial statements are the responsibility of management
and were derived from and relate directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the combining and
individual fund financial statements are fairly stated in all material respects in relation to the
basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 30, 2015, on our consideration of the School Districts internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the School Districts internal control over financial reporting
and compliance.
-3-
For fiscal year ended 2015, the Board of Education adopted a final general fund budget
with a projected increase in fund balance of $68,966. The actual results of operation in
the general fund showed that actual expenditures were approximately $3,827 less than the
final general fund budget and that actual revenues were approximately $2,871 more than
the final general fund budget, resulting in an actual increase in fund balance of $75,664.
At June 30, 2015 the governmental activities total net position was $(74,361) of which
$(1,659,475) was unrestricted, $1,541,667 was the net investment in capital assets, and
$43,447 was restricted for specific purposes.
The governmental activities total net position increased $175,354 from $(249,715) as of
June 30, 2014 to $(74,361) as of June 30, 2015. Refer to the government-wide financial
statements change in net position for fiscal year ended June 30, 2015 and June 30, 2014
for explanations regarding the net position increase.
At June 30, 2015, the total fund balance for the general fund was $(119,550).
The first two statements, the statement of net position and the statement of activities, are
district-wide financial statements that provide both short-term and long-term information
about the School Districts overall financial status.
-4-
The remaining statements are fund financial statements that focus on individual parts of
the School District, reporting the School Districts operations in more detail than the
district-wide statements.
o Governmental funds statements tell how basic services such as regular and special
education were financed in the short term as well as what remains for future
spending.
o Fiduciary funds statements provide information about the financial relationships
in which the School District acts solely as a trustee or agent for the benefit of
others.
The basic financial statements also include the notes to the financial statements that explain the
information in the basic financial statements and provide more detailed data. Supplementary
information follows and includes combining and individual fund statements, a budgetary
comparison schedule for the general fund, and pension schedules.
District-wide Financial Statements
The district-wide financial statements report information about the School District as a whole
using accounting methods similar to those used by private-sector companies. The statement of
net position includes all of the School Districts assets, deferred inflows / outflows, and
liabilities. All of the current year's revenues and expenses are accounted for in the statement of
activities regardless of when cash is received or paid.
The two district-wide statements report the School Districts net position, and how they have
changed. Net position the difference between the School Districts assets, deferred inflows /
outflows, and liabilities - is one way to measure the School Districts financial health or position.
Over time, increases or decreases in the School Districts net position are an indicator of whether
its financial position is improving or deteriorating, respectively.
To assess the School Districts overall health, one should consider additional non-financial
factors such as changes in the School Districts property tax-base and the condition of school
buildings and other facilities.
In the district-wide financial statements, the School Districts activities are presented as
governmental activities. Governmental activities include the School Districts basic services,
such as regular and special education, instructional support, transportation, administration,
community services, food service and athletics. State aid and property taxes finance most of
these activities.
-5-
-6-
181,047
56,304
19,776
4,369
261,496
140,709
31,795
22,753
196
4,436
199,889
2,909,777
3,171,273
2,961,843
3,161,732
162,380
162,380
5,116
51,810
36,950
10,427
279,022
250,000
633,325
16,502
62,578
41,233
11,700
199,799
200,000
531,812
1,089,088
19,541
1,494,199
3,236,153
1,371,551
20,084
1,478,519
3,401,966
171,861
171,861
1,541,667
43,447
(1,659,475)
(74,361)
1,390,493
67,917
(1,708,125)
(249,715)
-7-
3,547
336,283
339,830
3,044
361,838
364,882
1,362,161
39,810
1,401,971
1,741,801
1,383,068
37,844
1,420,912
1,785,794
863,949
436,801
71,110
8,063
61,311
125,213
1,566,447
175,354
(249,715)
(74,361)
861,965
448,478
94,111
16,543
71,558
118,842
1,611,497
174,297
(424,012)
(249,715)
Governmental funds: Most of the School Districts basic services are included in
governmental funds, which generally focus on (1) how cash and other financial assets
that can readily be converted to cash flow in and out and (2) the balances left at year-end
that are available for spending. Consequently, the governmental funds statements provide
a detailed short-term view that helps you determine whether there are more or fewer
financial resources that can be spent in the near future to finance the School Districts
programs. Since the district-wide financial statements and the fund financial statements
use different methods of accounting to report the School Districts financial condition, a
reconciliation is included in the financial statements showing the differences between the
two types of statements.
Fiduciary funds: The School District is the trustee, or fiduciary, for assets that belong to
others, such as scholarship funds and student activities funds. The School District is
responsible for ensuring that the assets reported in these funds are used only for their
intended purposes and by those to whom the assets belong. The School District excludes
these activities from the district-wide financial statements because it cannot use these
assets to finance its operations.
-8-
-9-
Land
4,652,002
349,984
785,421
5,798,907
2,889,130
2,909,777
More detailed information about the School Districts capital assets can be found in the notes to
the financial statements section of this document.
Long-term Debt
At year end, the School District had total long-term liabilities of $2,881,850 of which the largest
portion is $1,245,000 in bonds payable and $1,494,199 in net pension liabilities.
The School District continued to pay down its debt, retiring $199,799 of outstanding
bonds and leases during the year.
The School District issued no new debt during the current year.
The School Districts other long-term obligation is for accumulated sick/vacation leave in
the amount of $19,541.
The State limits the amount of general obligation debt that schools can issue based on the
assessed value of all taxable property within a districts boundaries. The School District is well
under the State limit as of June 30, 2015.
More detailed information about the School Districts long-term debt can be found in the notes to
the financial statements section of this document.
Economic Factors and Next Years Budget and Rates
The projected general appropriations budget for the 2015-2016 fiscal year includes $1,329,497 in
total revenues, and $1,339,000 in total expenses, resulting in a projected $9,503 decrease in fund
- 10 -
- 11 -
181,047
6,677
49,627
19,776
4,369
261,496
11,500
2,898,277
3,171,273
162,380
162,380
5,116
51,810
36,950
10,427
279,022
250,000
633,325
1,089,088
19,541
1,494,199
3,236,153
171,861
171,861
1,541,667
8,830
34,617
(1,659,475)
(74,361)
The Notes to the Financial Statements are an integral part of these Financial Statements
- 13 -
Program Revenues
Functions/Programs
Primary Government
Governmental Activities:
Instruction
Supporting Services
Food Services
Athletic Events
Interest on Long-term Debt
Unallocated Depreciation
Total Primary Government
Charges for
Services
Expenses
863,949
436,801
71,110
8,063
61,311
125,213
1,566,447
Operating
Grants and
Contributions
--508
3,039
--3,547
194,298
62,752
79,233
---336,283
Capital Grants
and
Contributions
--------
The Notes to the Financial Statements are an integral part of these Financial Statements
- 14 -
Governmental
Activities
(669,651)
(374,049)
8,631
(5,024)
(61,311)
(125,213)
(1,226,617)
39,810
1,362,161
-1,401,971
175,354
(249,715)
(74,361)
Debt Service
General
ASSETS
Cash & Cash Equivalents
Taxes Receivable
Other Receivables
Due from State
Prepaid Items
Due from Other Funds
Total Assets
LIABILITIES
Accounts Payable
Salaries Payable
Accrued Employee Benefits
State Aid Note Payable
Due to Other Funds
Total Liabilities
FUND BALANCE
Nonspendable
Restricted
Unassigned
Total Fund Balance
Total Liabilities and Fund Balance
$
$
2007 Debt
118,676
6,677
49,627
19,072
4,369
32,582
231,003
11,793
51,810
36,950
250,000
-350,533
4,369
-(123,919)
(119,550)
231,003
Other
Governmental
Funds
49,388
-----49,388
----14,771
14,771
-34,617
-34,617
49,388
Total
Governmental
Funds
12,983
--704
--13,687
----17,811
17,811
-8,830
(12,954)
(4,124)
13,687
The Notes to the Financial Statements are an integral part of these Financial Statements
- 15 -
181,047
6,677
49,627
19,776
4,369
32,582
294,078
11,793
51,810
36,950
250,000
32,582
383,135
4,369
43,447
(136,873)
(89,057)
294,078
Capital assets used in governmental activities are not financial resources, and therefore are
not reported in governmental funds. This is the sum of capital assets not being depreciated
of $11,500 and net capital assets being depreciated of $2,898,277.
(89,057)
2,909,777
Certain liabilities, such as bonds payable, are not due and payable in the current period and
therefore are not reported in the funds. This is the sum of bonds and installment notes
payable of $1,344,022, premium on bonds payable, net, of $24,088, accrued interest on longterm debt of $10,427, and compensated absences of $19,541.
(1,398,078)
Certain liabilities are not due and payable in the current period and, therefore, are not
reported in the funds. This represents the sum of the net pension liability and its related
deferred inflows and deferred outflows.
(1,497,003)
The Notes to the Financial Statements are an integral part of these Financial Statements
- 16 -
(74,361)
Debt Service
General
Revenues
Local Sources
State Sources
Federal Sources
Athletic Activities
Other Revenue
Total Revenues
Expenditures
Instruction
Supporting Services
Athletic Events
Food Services
Capital Outlay
Debt Service - Principal
Debt Service - Interest
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
Net Change in Fund Balance
Fund Balance at Beginning of Period
Fund Balance at End of Period
1,165,078
121,352
92,424
3,039
-1,381,893
Other
Governmental
Funds
2007 Debt
$
208,109
----208,109
72,058
3,870
75,363
-508
151,799
Total
Governmental
Funds
$
1,445,245
125,222
167,787
3,039
508
1,741,801
848,812
424,893
8,063
--19,799
4,662
1,306,229
-----180,000
61,363
241,363
-11,908
-71,110
73,147
--156,165
848,812
436,801
8,063
71,110
73,147
199,799
66,025
1,703,757
75,664
75,664
(195,214)
(119,550)
(33,254)
(33,254)
67,871
34,617
(4,366)
(4,366)
242
(4,124)
38,044
38,044
(127,101)
(89,057)
The Notes to the Financial Statements are an integral part of these Financial Statements
- 17 -
38,044
(52,066)
Bond proceeds provide current financial resources to governmental funds in the period
issued, but issuing bonds increases long-term liabilities in the statement of net position.
Repayment of bond principal is an expenditure in the governmental funds, but is recorded as
a reduction in long-term debt on the statement of net position. This amount represents
current year principal payments of $199,799 and amortization of bond premiums of $3,441.
203,240
Some expenses reported in the statement of activities do not require the use of current
financial resources and therefore are not reported as expenditures in the funds. This amount
represents the decrease in accrued interest of $1,273 and the decrease in compensated
absences of $543.
1,816
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in the funds. This
amount represents the change in net pension liability, and the related deferred inflows and
outflows, during the year.
Changes in Net Position - Governmental Funds
(15,680)
$
The Notes to the Financial Statements are an integral part of these Financial Statements
- 18 -
175,354
Agency
ASSETS
Cash & Cash Equivalents
Total Assets
LIABILITIES
Due to Student Groups
Total Liabilities
NET POSITION
Held in Trust
3,606
3,606
3,606
3,606
--
The Notes to the Financial Statements are an integral part of these Financial Statements
- 19 -
- 21 -
- 22 -
Starting in the spring, School District administrative personnel and department heads
work with the Superintendent and Business Manager to establish proposed operating
budgets for the fiscal year commencing the following July 1.
In June, preliminary operating budgets are submitted to the Board of Education. These
budgets include proposed expenditures and the means of financing them.
Prior to June 30, a public hearing is held to obtain taxpayer comments on the proposed
budgets.
After the budgets are finalized, the Board of Education adopts an appropriations
resolution setting forth the amount of the proposed expenditures and the sources of
revenue to finance them.
The original general and special revenue funds budgets were amended during the year in
compliance with State of Michigan Public Act 621 (the Uniform Budgetary and
Accounting Act).
Budgets for the general and special revenue funds were adopted on the modified accrual
basis of accounting, which is consistent with accounting principles generally accepted in
the United States of America.
- 23 -
Bonds, bills, and other direct obligations of the United States or its agencies.
Certificates of deposit and other savings instruments issued by a federally insured bank,
savings and loan or credit union maintaining an office in Michigan.
Commercial paper rated prime at the time of purchase and maturing not more than 270
days after the date of purchase.
Mutual Funds comprised of investments which are legal for direct investment by local
units of government in Michigan.
The Board of Education is authorized to designate depositories for District funds, and the funds
are invested in accordance with State of Michigan statutory authority.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at
the end of the fiscal year and all other outstanding balances between funds are referred to as due
to/from other funds (i.e., the current portion of interfund loans).
All receivables are shown net of an allowance for uncollectibles, as applicable. All amounts
deemed to be uncollectible are charged against the allowance for doubtful accounts in the period
that determination is made. No amounts have been deemed uncollectable during the current
year.
- 24 -
Inventories are valued at cost using the first-in/first-out (FIFO) method and consist of food
commodities and related supplies.
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements. The cost
of prepaid items is recorded as expenditures/expenses when consumed rather than when
purchased.
Capital Assets
Capital assets, which include land, land improvements, buildings, vehicles, and furniture and
equipment, are reported in the district-wide financial statements. Assets having a useful life in
excess of two years and whose costs exceed $1,000 are capitalized. Capital assets are stated at
historical cost or estimated historical cost where actual cost information is not available. Donated
capital assets are stated at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of an asset or materially
extend an assets useful life are not capitalized. Improvements are capitalized and depreciated
over the remaining useful life of the related assets.
Land improvements, buildings and additions, furniture and equipment and vehicles are
depreciated using the straight-line method over the following estimated useful lives:
Description
Buildings, Building Additions, & Land Improvements
Vehicles & Buses
Furniture & Equipment
Useful Life
10 - 50 Years
7 - 15 Years
2 - 15 Years
- 26 -
- 27 -
- 28 -
Governmental
Activities
Statement of Net Position
Cash and Cash Equivalents
Statement of Fiduciary Net Position
Cash and Cash Equivalents
Total Deposits
Deposits and Investments
Checking and Savings Accounts
Petty Cash
Total
181,047
3,606
184,653
$
$
184,453
200
184,653
- 29 -
Receivable Fund
General Fund
General Fund
Payable Fund
Debt Service
Sinking Fund
$
$
Amount
14,771
17,811
32,582
Interfund balances resulted primarily from the time lag between the dates that 1) interfund goods
and services are provided or reimbursable expenditures occur, 2) transactions are recorded in the
accounting system, and 3) payments between funds are made.
There were no interfund transfers during the year.
Note 5 - State of Michigan School Aid
The School District reports State of Michigan school aid in the fiscal year in which the School
District is entitled to the revenue as provided by State of Michigan School aid appropriation acts.
State funding provided approximately 6 percent of the total revenues to the School District
during the 2015 fiscal year.
- 30 -
11,500
Additions
Reductions
11,500
4,590,591
349,984
773,685
5,714,260
61,411
11,736
73,147
4,652,002
349,984
785,421
5,787,407
1,900,491
229,055
634,371
2,763,917
77,553
20,132
27,528
125,213
1,978,044
249,187
661,899
2,889,130
2,950,343
(52,066)
2,898,277
$ 2,909,777
$ 2,961,843
(52,066)
Depreciation expense for the fiscal year ended June 30, 2015 amounted to $125,213. The School
District determined that is was impractical to allocate depreciation expense to the various
government activities as the capital assets serve multiple functions.
Of the amounts reported above, $157,866 was acquired through a capital lease. Accumulated
depreciation on these assets at June 30, 2015 was $59,200.
Note 7 - Long-term Debt
Bonds Payable
2007 Refunding General Obligation Bonds
Original issue - $2,500,000 - 2007 Refunding Bonds due in annual installments as scheduled
below. Interest rates vary from 4.0% to 5.0% throughout the life of the bond issue. The final
payment is due May 1, 2022.
- 31 -
$ 1,425,000
27,529
1,452,529
Additions
$
Reductions
$
Due Within
One Year
(180,000)
(3,441)
(183,441)
$ 1,245,000
24,088
1,269,088
180,000
180,000
118,821
(19,799)
99,022
99,022
20,084
(543)
19,541
(203,783)
$ 1,387,651
$ 1,591,434
279,022
Annual debt service requirements, exclusive of compensated absences and bond premiums, for
long-term debt outstanding as of June 30, 2015 follows:
Year Ending
June 30,
2016
2017
2018
2019
2020
2021 - 2022
Totals:
Governmental Activities
Principal
Interest
Total
$
279,022
$
53,662
$
332,684
185,000
44,662
229,662
180,000
35,412
215,412
180,000
28,212
208,212
175,000
21,012
196,012
345,000
21,024
366,024
$ 1,344,022
$
203,984
$ 1,548,006
$34,617 is available in the 2007 debt retirement fund to service the general obligation bonds.
The lease purchase agreement will be paid from the general fund.
Accumulated unpaid compensation for termination leave pay at June 30, 2015 has been
computed and recorded in the financial statements as a long-term liability as the liability is
- 32 -
Interest
Rate
1.29%
Maturity
November 2, 2015
June 30,
2014
$ 200,000
Additions
$ 250,000
Reductions
$ (200,000)
June 30,
2015
$ 250,000
181,489
16,855
6,168
204,512
16,979
108,934
101,843
210,777
432,268
Benefits Provided
Benefit provisions of the defined benefit pension plan are established by State statute, which may
be amended. Public Act 300 of 1980, as amended, establishes eligibility and benefit provisions
for the defined benefit (DB) pension plan. Retirement benefits for DB plan members are
determined by final average compensation and years of service. DB members are eligible to
- 34 -
- 35 -
- 36 -
- 37 -
- 38 -
Employer
18.34 - 19.61 %
18.34 - 19.61
18.11
15.44 - 16.61
The System may reconcile with actuarial requirements annually. If the system reconciles in a
year, any funding excess or deficiency for pension benefits is smoothed over a maximum of 5
years, with at least one-fifth (20%) of the funding excess or deficiency included in the
- 39 -
$ 65,160,887,182
43,134,384,072
$ 22,026,503,110
66.20%
250.11%
Year 1 MPSERS GASB 68 implementation recognizes a 0.00% change in the reporting unit's
proportionate share between beginning net pension liability and ending net pension liability.
- 40 -
$ 62,859,499,994
39,427,686,072
$ 23,431,813,922
Asset Class
Domestic Equity Pools
% Alternative Investment Pools
International Equity
Fixed Income Pools
Real Estate and Infrastructure Pools
Absolute Return Pools
Short-term Investment Pools
Total
Target
Allocation
28.0
%
18.0
16.0
10.5
10.0
15.5
2.0
100.0 %
- 41 -
Long-term Expected
Real Rate of Return*
4.8
%
8.5
6.1
1.5
5.3
6.3
(0.2)
- 42 -
3.5%
8.0%
7.0%
3.5 - 12.3%, including wage inflation at 3.5%
3% Annual Non-Compounded for MIP Members
8.5% Year 1 graded to 3.5% Year 12
Mortality: RP2000 Male and Female Combined Healthy Life Mortality Tables, adjusted for
mortality improvements to 2025 using projection scale BB. For retirees, 100% of the table rates
were used. For active members, 80% of the table rates were used for males and 70% of the table
rates were used for females.
Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended June 30, 2015, the School District recognized total pension expense of
$121,034.
- 43 -
Deferred Outflows of
Resources
$
55,133
Deferred Inflows of
Resources
$
-
165,184
107,247
Total
162,380
165,184
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Deferred (Inflows) and Deferred Outflows of Resources by Year (to Be Recognized in
Future Pension Expenses)
Amount:
(26,960)
(26,960)
(26,960)
(29,171)
Postemployment Benefits
Under the MPSERS act, all retirees participating in the MPSERS pension plan have the option of
continuing health, dental, and vision coverage through MPSERS. Retirees electing this coverage
contribute an amount equivalent to the monthly cost for Part B Medicare and 10 percent, or 20
percent for those not Medicare eligible, of the monthly premium amount for the health, dental,
and vision coverage at the time of receiving the benefits. The MPSERS board of trustees
annually sets the employer contribution rate to fund the benefits on a pay-as-you-go basis.
Participating employers are required to contribute at that rate. The employer contribution rate
ranged from 5.52 percent to 6.45 percent of covered payroll for the period from July 1, 2014
through September 30, 2014, and from 2.20 percent to 2.71 percent of covered payroll for the
period from October 1, 2014 through June 30, 2015, dependent upon the employees date of hire
and plan election as noted above. Members can choose to contribute 3 percent of their covered
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General Fund
Nonspendable:
Prepaid Items
Total Nonspendable
Restricted for:
Debt Service
Food Service
Total Restricted
2007 Debt
4,369
4,369
Unassigned
(123,919)
Nonmajor
Funds
$
-
4,369
4,369
34,617
34,617
8,830
-
34,617
8,830
34,617
(12,954)
(136,873)
(119,550)
Total
34,617
(4,124)
(89,057)
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1,238,285
(1,478,519)
(9,481)
(249,715)
Budgeted Amounts
Original
Final
Revenues
Local Sources
State Sources
Federal Sources
Total Revenues
Other Financing Sources
Total Revenues and Other
Financing Sources
Expenditures
Insturction
Basic Programs
Added Needs
Total Instruction
Supporting Services
Instruction Staff
General Administration
School Administration
Business
Operations / Maintenance
Transportation
Total Supporting Services
Athletics
Total Expenditures
Other Financing Uses
Total Expenditures and Other
Financing Uses
Excess (Deficiency) of Revenues and
Other Sources Over Expenditures
and Other Uses
Net Change in Fund Balance
Fund Balance at Beginning of Period
Fund Balance at End of Period
1,162,000
135,000
138,000
1,435,000
1,053,889
192,710
132,423
1,379,022
Variance
Positive
(Negative)
Final to Actual
Actual
$
1,168,051
121,352
92,490
1,381,893
114,162
(71,358)
(39,933)
2,871
1,435,000
1,379,022
1,381,893
2,871
620,000
245,000
865,000
642,283
207,633
849,916
641,769
207,043
848,812
514
590
1,104
35,000
112,000
72,000
3,500
135,000
78,500
436,000
13,000
1,314,000
19,012
112,032
89,500
4,033
142,000
85,500
452,077
8,063
1,310,056
19,420
112,073
89,467
4,033
142,749
81,612
449,354
8,063
1,306,229
(408)
(41)
33
-(749)
3,888
2,723
-3,827
1,314,000
1,310,056
1,306,229
3,827
121,000
121,000
(195,214)
(74,214)
68,966
68,966
(195,214)
(126,248)
75,664
75,664
(195,214)
(119,550)
6,698
6,698
-6,698
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2014
School District's Portion of Net Pension Liability (%)
0.00678%
1,494,199
420,716
Districts Proportionate Share of Net Pension Liability as a Percentage of its Covered Employee Payroll
Plan Fiduciary Net Position as a Percentage of Total Pension Liability
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355.16%
66.20%
105,354
2015
105,354
420,716
25.04%
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Special Revenue
Capital Projects
Food Service
ASSETS
Cash & Cash Equivalents
Due from State
Total Assets
LIABILITIES
Due to Other Funds
Total Liabilities
FUND BALANCE
Restricted
Unassigned
Total Fund Balance
Total Liabilities and Fund Balance
$
$
$
Sinking
8,126
704
8,830
---
8,830
-8,830
8,830
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Total Nonmajor
Governmental
Funds
4,857
-4,857
17,811
17,811
-(12,954)
(12,954)
4,857
12,983
704
13,687
17,811
17,811
8,830
(12,954)
(4,124)
13,687
Special Revenue
Capital Projects
Food Service
Revenues
Local Sources
State Sources
Federal Sources
Other Revenue
Total Revenues
Expenditures
Supporting Services
Food Services
Capital Outlay
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
Net Change in Fund Balance
Fund Balance at Beginning of Period
Fund Balance at End of Period
3
3,870
75,363
508
79,744
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Sinking
$
72,055
---72,055
Total Nonmajor
Governmental
Funds
$
72,058
3,870
75,363
508
151,799
-71,110
-71,110
11,908
-73,147
85,055
11,908
71,110
73,147
156,165
8,634
8,634
196
8,830
(13,000)
(13,000)
46
(12,954)
(4,366)
(4,366)
242
(4,124)
July 1, 2014
ASSETS
Cash & Cash Equivalents
Total Assets
LIABILITIES
Due to Student Groups
Total Liabilites
4,345
4,345
4,345
4,345
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9,731
9,731
9,731
9,731
Deductions
$
10,470
10,470
10,470
10,470
3,606
3,606
3,606
3,606
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The most sensitive estimates affecting the School Districts financial statements were:
Managements estimate of the useful lives of depreciable capital assets is based on the
length of time it is believed that those assets will provide some economic benefit in the
future.
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important that each district reconcile taxable values, as reported on the Michigan Department of
Education website, monthly.
Changes that occur on the web site are postings made by the county treasurers. These changes
are then posted to your State Aid Status Report which directly affects the State Aid funds
received each month. Reconciling those changes monthly is important.
The best approach is to print the MDE taxable value data each month and then agree any changes
in these reports to page two of your monthly status report.
Tax Revenue Distribution
All tax revenue is deposited directly to the general fund bank account including debt retirement
and sinking fund taxes. While the entry recording the taxes properly credits a due to account in
the general fund, the corresponding entry is not recorded into either the debt retirement fund or
the sinking fund. In addition, the cash is not timely transferred. The cash transfers should occur
each time taxes are received and due to/due from accounts should be -0- at year end.
Written Procedures
As a precondition to receive federal funds recipients must have effective administrative and
financial internal controls. School districts are required to have written procedures to document
these administrative and financial controls. The School District has not yet complied with this
requirement.
Segregation of Duties
There is not adequate segregation of duties in the accounting area. One individual posts all
journals, the general ledger and also prepares checks and reconciles the bank accounts. The same
individual also initiates and posts all journal entries. The lack of segregation of duties is inherent
because of staff limitations. The Board must recognize that all internal controls must be
evaluated for cost effectiveness. The controls that could be added would have to be compared
with the costs required to obtain those controls.
Restriction on Use
This information is intended solely for the use of the Board of Education and management of the
School District and is not intended to be, and should not be, used by anyone other than these
specified parties.
Very truly yours,
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