Harrisburg City School District
Audit of Financial Statements
Year Ended June 30, 2013
Finance Committee Meeting
January 1...
Areas of Discussion

• Independent Auditors’ Report
• Comments on Financial Position &
Financial Results
• Discussion of F...
Independent Auditors’ Report
Pages 6 - 8

• Management’s Responsibility for the
Financial Statements
• Auditors’ Responsib...
Highlights of Financial Results – Government Wide
Statement of Net Position – Assets (page 22)
Governmental
Activities
CUR...
Highlights of Financial Results – Government Wide
Statement of Net Position – Liabilities (page 23)
Governmental
Activitie...
Highlights of Financial Results – Government Wide
Statement of Net Position – Net Position (page 23)
Governmental
Activiti...
Highlights of Financial Results – Government Wide
Statement of Activities (page 24)
Governmental
Activities
Program Revenu...
Highlights of Financial Results – General Fund
Balance Sheet - Assets (page 25)
General
Fund
ASSETS
Cash and cash equivale...
Highlights of Financial Results – General Fund
Balance Sheet – Liabilities (page 25)
General
Fund
LIABILITIES
Accounts pay...
Highlights of Financial Results – General Fund
Balance Sheet – Fund Balances (page 25)
General
Fund
FUND BALANCES
Nonspend...
Highlights of Financial Results – General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
– Budget to...
Highlights of Financial Results – General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
– Budget to...
Highlights of Financial Results – General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
– Budget to...
Discussion of Findings



Financial Audit

–
–



Material Weakness
Significant Deficiencies

•

District’s budgeting pr...
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Harrisburg School District Audit Power Point

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Harrisburg School District Audit Power Point

  1. 1. Harrisburg City School District Audit of Financial Statements Year Ended June 30, 2013 Finance Committee Meeting January 13, 2014 1
  2. 2. Areas of Discussion • Independent Auditors’ Report • Comments on Financial Position & Financial Results • Discussion of Findings 2
  3. 3. Independent Auditors’ Report Pages 6 - 8 • Management’s Responsibility for the Financial Statements • Auditors’ Responsibility • Opinions 3
  4. 4. Highlights of Financial Results – Government Wide Statement of Net Position – Assets (page 22) Governmental Activities CURRENT ASSETS Cash and cash equivalents Investments Taxes receivable, net Internal balance Due from other governments Other receivables Prepaid expenses Inventories Total current assets NONCURRENT ASSETS Sinking fund investments Bond discounts and issue costs, net Land and site improvements, net Building and building improvements, net Furniture and equipment, net Construction in progress Deferred outflow Total noncurrent assets Total assets $ 27,358,849 1,708,331 15,228,983 1,323,439 6,706,424 1,091,074 54,862 963 Business-Type Activities $ 8,977 1,025 82,988 87,219 48,486 Total $ 27,367,826 1,709,356 15,228,983 1,323,439 6,789,412 1,178,293 54,862 49,449 53,472,925 228,695 53,701,620 3,896,116 7,382,778 13,700 188,659,462 3,685,717 1,578,297 23,672,566 91,860 - 3,896,116 7,382,778 13,700 188,659,462 3,777,577 1,578,297 23,672,566 228,888,636 91,860 228,980,496 320,555 $ 282,682,116 $ 282,361,561 $ 4
  5. 5. Highlights of Financial Results – Government Wide Statement of Net Position – Liabilities (page 23) Governmental Activities CURRENT LIABILITIES Internal balance Accounts payable Accrued interest Current portion of long-term debt Current portion of capital leases Current portion of compensated absences Deferred subsidy revenue Accrued salaries and benefits Total current liabilities NONCURRENT LIABILITIES Long-term debt net of current portion Premium on issue of swap Premium on bond issue Capital leases Compensated absences Derivative instruments - swaps Other post-employment benefits liability Total noncurrent liabilities Total liabilities $ Business-Type Activities Total 14,425 7,148,934 1,606,097 3,005,000 602,040 200,892 491,530 5,526,400 $ 1,285,534 14,089 22,892 17,348 158,883 $ 1,299,959 7,163,023 1,606,097 3,005,000 602,040 223,784 508,878 5,685,283 18,595,318 1,498,746 20,094,064 266,808,000 2,834,589 763,307 486,539 1,995,249 24,040,135 1,739,192 30,497 127,394 266,808,000 2,834,589 763,307 486,539 2,025,746 24,040,135 1,866,586 298,667,011 157,891 298,824,902 $ 317,262,329 $ 1,656,637 $ 318,918,966 5
  6. 6. Highlights of Financial Results – Government Wide Statement of Net Position – Net Position (page 23) Governmental Activities NET POSITION Restricted for debt service Net investment in capital assets Unrestricted Total net position Total liabilities and net position $ 5,614,283 (68,815,863) 28,300,812 Business-Type Activities $ (34,900,768) $ 282,361,561 91,860 (1,427,942) Total $ 5,614,283 (68,724,003) 26,872,870 (1,336,082) $ (36,236,850) 320,555 $ 282,682,116 6
  7. 7. Highlights of Financial Results – Government Wide Statement of Activities (page 24) Governmental Activities Program Revenues General Revenues $ 29,788,726 103,077,976 Business-Type Activities $ 5,466,962 1 Total $ 35,255,688 103,077,977 Total Revenues 132,866,702 5,466,963 138,333,665 Expenses 124,932,627 5,442,950 130,375,577 7,934,075 24,013 7,958,088 Change in Net Position Net Position - beginning of year Net Position - end of year (42,834,843) $ (34,900,768) (1,360,095) $ (1,336,082) (44,194,938) $ (36,236,850) 7
  8. 8. Highlights of Financial Results – General Fund Balance Sheet - Assets (page 25) General Fund ASSETS Cash and cash equivalents Investments Taxes receivable, net Due from other funds Due from other governments Other receivables Prepaid expenses Inventories Sinking fund investments Total assets $ 26,305,964 46,255 15,228,983 1,323,439 6,706,424 1,091,074 54,862 963 - $ 50,757,964 8
  9. 9. Highlights of Financial Results – General Fund Balance Sheet – Liabilities (page 25) General Fund LIABILITIES Accounts payable Due to other funds Accrued salaries and benefits Deferred revenues Total liabilities $ 7,148,064 5,526,400 15,429,868 $ 28,104,332 9
  10. 10. Highlights of Financial Results – General Fund Balance Sheet – Fund Balances (page 25) General Fund FUND BALANCES Nonspendable: Reserve for inventories Interfund receivable Prepaid expenses Committed: Athletics and band reserve Assigned: Health insurance stabilization PSERS increases Debt service increases Capital improvements Information Technology improvements Unassigned: General fund $ 402,381 1,500,000 5,000,000 3,000,000 3,000,000 1,500,000 6,871,987 Total fund balances Total liabilities and fund balances 963 1,323,439 54,862 22,653,632 $ 50,757,964 10
  11. 11. Highlights of Financial Results – General Fund Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual (pages 72-73) Final Budgeted Amount REVENUES Local revenues State program revenues Federal program revenues Total revenues Actual (Budgetary Basis) Variance With Final Budget Positive (Negative) $ 50,009,683 62,816,647 20,437,694 $ 52,712,730 63,650,390 15,697,660 $ 2,703,047 833,743 (4,740,034) $ 133,264,024 $ 132,060,780 $ (1,203,244) 11
  12. 12. Highlights of Financial Results – General Fund Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual (pages 72-73) Final Budgeted Amount EXPENDITURES Regular programs Special programs Vocational programs Other instructional programs Community/Jr college programs Pupil personnel services Instructional staff services Administrative services Pupil health Business services Operation and maintenance of plant services Student transportation services Central and other support services Other support services Student activities Community services Debt service $ $ 49,541,132 21,576,881 2,725,000 5,584,742 750,000 4,511,544 5,387,222 6,982,218 1,177,122 1,438,856 11,830,917 2,669,649 3,714,901 2,045,000 595,171 519,036 300,000 $ 45,002,494 20,299,184 2,723,577 3,972,080 734,439 4,131,152 2,608,487 6,379,033 1,030,016 1,098,798 8,863,742 2,519,936 3,171,226 1,751,271 469,614 318,643 13,174 121,349,391 Total expenditures Excess of revenues over expenditures Actual (Budgetary Basis) 105,086,866 11,914,633 $ 26,973,914 Variance With Final Budget Positive (Negative) $ 4,538,638 1,277,697 1,423 1,612,662 15,561 380,392 2,778,735 603,185 147,106 340,058 2,967,175 149,713 543,675 293,729 125,557 200,393 286,826 16,262,525 $ 15,059,281 12
  13. 13. Highlights of Financial Results – General Fund Statement of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual (pages 72-73) Actual (Budgetary Basis) Final OTHER FINANCING SOURCES (USES) Refund prior year receipts Transfers out Budgetary reserve Total other financing sources (uses) Net change in fund balances FUND BALANCE - BEGINNING FUND BALANCE - ENDING $ (16,070,650) (301,622) $ (807,619) (15,383,960) - Variance With Final Budget Positive (Negative) $ (807,619) 686,690 301,622 (16,372,272) (16,191,579) (4,457,639) 10,782,335 15,239,974 11,871,297 11,871,297 $ (4,457,639) $ 22,653,632 180,693 $ 27,111,271 13
  14. 14. Discussion of Findings  Financial Audit – –  Material Weakness Significant Deficiencies • District’s budgeting process • • Technical accounting and financial reporting expertise Spreadsheet management Single Audit – Noncompliance and Significant Deficiency in Internal Control • • • • • • • Improper documentation of time and effort Untimely submission of required final reports Incorrect calculations for reimbursements related to food service grants One month was noted where all students received free breakfast and lunch due to the inability to use the food service point of sale system Supporting documentation for food service bids were unable to be located and provided for testing Reports were not obtained from the food service point of sale system for reimbursement and all eligible students were claimed, rather than the actual amount that received meals Sales tax was paid and charged to a grant 14

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