Clarkston schools head into the new fiscal year with a clean audit.
The audit by Hungerford, Aldrin, Nichols and Carter, P.C., was approved without modification by the Board of Education at Monday’s meeting.
‘Thank you, Mary Beth, and your staff and the auditors,? said board President Rosalie Lieblang, Oct. 27. ‘We appreciate all your hard work to get us the information as well.?
The auditors provided their highest opinion of the district’s financial reporting, finding it in compliance with all laws, no deficiencies in internal spending controls, and qualified as a low-risk auditee for the year ended June 30, 2014.
The district received the same opinion last year, but still made improvements, said Mary Beth Rogers, executive director of Business Services.
“We work every year to get better,” Rogers said. “We hope to improve next year, too.”
Improvements this year include more accurate budget estimates compared to actual spending, closer alignment of district accounting structures to state structures, and making sure spending is placed in the right categories, she said.
According to the report, total revenue for the district this year was $92 million, including $18.9 million in taxes, $53.7 million in state funding and federal unrestricted funding, $14.3 million from other governments and organizations subsidizing programs with grants and contributions, $3.5 million from those who benefited from the programs, and $1.5 million with other revenue.
The district’s total revenues increased by $3.5 million this year, mostly with revenue enhancements and cost containment ? the district modified its health care structure, and saved several million in health care benefit costs.
Spending this year was $88.1 million. Instruction and support services functions cost $72.2 million, or approximately 82%.
The district General Fund had total revenues of $76,081,938, and total expenditures of $74,115,341, according to the report.
The district ended the fiscal year with a $2,335,145 increase in fund balance, for a total fund balance surplus of $5,655,263, up from $3,320,118, according to the report.
The district’s total long-term debt is $157.5 million. The largest portion is $137.7 million in general obligation bonds. The district paid off $23.2 million of outstanding bonds, loans and leases this year.
The district issued $9,270,000 of refunding bonds to retire the final $9,600,000 of its 2004 refunding bond issue, providing a savings in interest of about $564,000.
The auditor report also said the district borrowed $6,425,323 from the Michigan School Bond Loan Fund for payment of annual maturities of its general obligation bonds during the fiscal year.
Interest added on the outstanding loan during the fiscal year was $224,861. The district is not required to make payments to the Michigan School Bond fund until the taxable value of the district increases to a point where it is able to make the debt payments and has funds available, according to the report.
The district’s underlying rating on the unlimited tax bonds is A byStandard and Poor’s and Aa3 by Moody? Investors. The unlimited bonds also carry the State’s credit rating of AA- by Standard & Poor’s and Aa2 by Moody’s Investors, the report said.
The state limits the amount of general obligation debt that schools can issue to 15 percent of the assessed value of all taxable property within a district’s boundaries.