All Minnesota school districts are required to conduct an annual financial audit at the close of each fiscal year. The fiscal year for school districts is July 1 to June 30. Each annual audit is conducted by an independent audit firm. The final audit report is presented to the school board in December of each year.
The cost of running the district is paid through a combination of local property taxes, state aid and other revenues such as fees, gate receipts, etc.
Fiscal Year 2016 Audit
The District's Fiscal Year 2016 audit was conducted by the firm of Bergan KDV, who presented the results of the audit to the school board on December 5, 2016. The reports shared with the Board include:
Highlights of the year's audit results include:
- The auditors issued an unmodified opinion which is the best opinion an auditor can issue.
- The district’s financial statements present fairly in all aspects the district’s financial position.
- The auditors found a material weakness in lack of segregation of accounting duties which is due to a limited number of district office staff. It is a finding that is noted yearly for the district.
- With actual revenues at $56,335, 809 the budget produced a positive variance of $2,662,623 or 5%. This is due to an increase in student enrollment and a contribution to the State for TRA that was not budgeted. Other revenues were over budget due to federal special education revenue tuition receipts and budgeting conservatively for student activities.
- Actual expenditures were over budget by $371,831 or 0.7%. This is due to the district not budgeting for TRA payments.
- The fund balance increased from $13,063,515 to $15,688,467, which is 2.8 months of operating expenditures. District policy requires a General Fund balance equal to 1.5 months of operating expenditures.
- The unassigned fund balance increased from $10,929,611 to $12,714,533.
- The unrestricted fund balance as a percentage of unrestricted expenditures is 30.8%. In FY2015, it was 28.2% compared to the state average of 20.6%. This statistic is often used to evaluate the financial health of a school district.
- The tax capacity rate has remained relatively flat over the last five years with the FY 2016 rate of 49.10%, which is the lowest rate in the past five years.
- The referendum rate is 0.14% compared to a high of 0.19% in FY 2013.
Overall, the District continues to be sound and stable.
Fiscal Year 2015 Audit
The District's Fiscal Year 2015 audit was conducted by the firm of BerganKDV, who presented the results of the audit to the school board on December 8, 2016.
Fiscal Year 2014 Audit
The District’s Fiscal Year 2014 audit was conducted by the firm of Kern, DeWenter, Viere, Ltd., and they presented the results of that audit to the School Board on December 1, 2014.