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2020 Executive Audit Summary Presentation Report
2020 Executive Audit Summary Presentation Report
Park Rapids Area Schools
Independent School District No. 309
Executive Audit Summary (EAS)
June 30, 2020
WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING
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REQUIRED COMMUNICATIONS
• Our Responsibility Under Generally Accepted Auditing Standards, Government
Auditing Standards, and Uniform Guidance
– Primary responsibility is to provide our opinion on the fairness of presentation of
the financial statements
– Reviewed internal accounting controls
– Risk based audit approach
– Based on internal controls, determined scopes, and tests of transactions
– Expressed opinion based on tests
– Review internal controls and compliance – federal awards
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REQUIRED COMMUNICATIONS (Continued)
• Significant Accounting Policies
– Outlined in Note 1 to the financial statements
– Unusual transactions – None noted
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REQUIRED COMMUNICATIONS (Continued)
• Management Judgments and Accounting Estimates ‐ We evaluated the key
factors and assumptions used to develop the estimates in determining that it is
reasonable in relation to the financial statements taken as a whole
– Special Education Aid from State of Minnesota
– Allowance for doubtful accounts
– Useful lives of capital assets
– Other Postemployment Benefits payable
– Net Pension Liability & Related Deferred Inflows and Deferred Outflows of
Resources
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REQUIRED COMMUNICATIONS (Continued)
• Management Representations
– We have requested certain representations from management included in the
management representation letter
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REQUIRED COMMUNICATIONS (Continued)
• Uncorrected Misstatements ‐ None
• Corrected
– Material audit adjustments to the prior period in the following funds related to tax
advance in prior year. There was also a material audit adjustment to allocate the
taxes among the funds, after this prior period adjustment.
◊ General Fund $154,793
◊ Community Service Fund $12,043
◊ Debt Service Fund $166,769
– Current year material audit adjustment to the taxes receivable in the debt service
fund for $51,106.
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SUMMARY OF AUDIT RESULTS
• Financial Statements
– Unmodified (“clean”) opinion
• Internal Control Over Financial Reporting under Government Auditing
Standards
– Three material weakness:
◊ Segregation of duties
◊ Auditor drafts financial statements and notes
◊ Material audit adjustment and prior period restatement
• Uniform Guidance (Single Audit)
– Unmodified Opinion
– Major Programs – Child Nutrition Cluster and Title I
– Noncompliance and Significant Deficiency in Internal Control – None
◊ Prior year significant deficiency for procurement was resolved in FY20
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SUMMARY OF AUDIT RESULTS (Continued)
• Minnesota Legal Compliance
– None noted
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Average Daily Memberships
1800
1700
1600
1500
1400
1300 705.21 689.69
725.12 659.99
1200 644.30
1100
1000
900
800
700
600 776.20 760.38
733.40 764.50 753.46
500
400
300
200
100 181.54 188.78 187.81 176.34 147.98
0
2020 2019 2018 2017 2016
Year
Kindergarten and Others Elementary Secondary
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Independent School District No. 309
Fund Trends
General Fund
For the Year Ended June 30, 2020 2019 2018 2017 2016
Total Revenues $ 21,086,970 $ 20,113,783 $ 19,034,667 $ 18,489,551 $ 17,637,493
Total Expenditures 20,147,035 19,469,899 19,249,157 17,608,091 17,223,145
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General Fund – Fund Balance by Category
$6,000,000
$5,750,000
$5,500,000
$5,250,000
$5,000,000
$4,750,000
$4,500,000
$4,250,000
$4,000,000
$3,750,000
$3,500,000
$3,250,000
$3,000,000
$2,750,000
$2,500,000
$2,250,000
$2,000,000
$1,750,000
$1,500,000
$1,250,000
$1,000,000
$750,000
$500,000
$250,000
$‐
Nonspendable Restricted Committed Assigned Unassigned
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General Fund – Fund Balance by Category
Restricted - General Fund Committed - General Fund
Staff Development $ 138,896 Separation/Retirement Benefits $ 784,241
Operating Capital 1,166,969
Achievement/Integration 25,341
Student Activities 119,775
Scholarships 465,771
Safe Schools - Crime 101,039
Gifted and Talented 159,402
LTFM 1,748,221
Medical Assistance 55,949
Other Restricted 83,420
Total Restricted $4,064,783
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Food Service Fund
For the Year Ended June 30, 2020 2019 2018 2017 2016
Total Revenues $ 946,876 $ 1,048,815 $ 980,194 $ 972,716 $ 979,219
Total Expenditures 1,056,999 954,883 887,314 910,495 957,498
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Community Service Fund
For the Year Ended June 30, 2020 2019 2018 2017 2016
Total Revenues $ 805,725 $ 907,998 $ 941,242 $ 890,313 $ 818,709
Total Expenditures 890,195 894,947 894,466 913,008 743,858
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Community Service Fund – Fund Balance by
Category
Restricted - Community Service
Community Education Programs $ 24,515
Early Childhood and Family Education Programs 21,698
School Readiness 66,024
Total Restricted $ 112,237
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Independent School District No. 309
Fund Trends
Debt Service
For the Year Ended June 30, 2020 2019 2018 2017 2016
Total Revenues $ 2,760,194 $ 2,859,010 $ 2,812,414 $ 2,763,951 $ 2,763,006
Total Expenditures 2,714,067 2,852,974 2,874,053 2,847,276 2,790,832
Prior Period Adjustment 166,769
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ISD #309 Park Rapids Area Schools
Debt Service Fund
Revenue, Expenses, Fund Balance, and Cash
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
15‐16 16‐17 17‐18 18‐19 19‐20
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INDEPENDENT SCHOOL DISTRICT NO. 309
Administration and District Support per ADM
$1,200
$1,000
$800
Per ADM
$600
$400
$200
$0
15‐16 16‐17 17‐18 18‐19 19‐20
District and School Admin – all costs related to providing administration to the District (Board of Education, Superintendent,
Assistant Superintendent, Principals, etc.) District Support Services – activities provided by Central Office (Business
Services, Director of Building and Grounds, Legal, Data Processing, Other District-Wide support activities).
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INDEPENDENT SCHOOL DISTRICT NO. 309
Total Instruction per ADM
$10,000
$9,000
$8,000
$7,000
Per ADM
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
15‐16 16‐17 17‐18 18‐19 19‐20
Total Instruction – includes vocational instruction, special education instruction and instructional support services.
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CLAconnect.com
Thank you for the opportunity to serve
the Park Rapids Area Schools.
CliftonLarsonAllen LLP
Mary Reedy, CPA, CGFM
Principal
320‐203‐5534
[email protected]