Education Code 41020 requires school districts to engage an independent auditor for the annual audit of their financial records and accounts. The audit for fiscal year 2017/18 has been completed and is now presented to the Board of Trustees for review. The District received an audit for 2017/18 with no audit findings. Ms. Sarah Fiehler from Christy White Associates will be in attendance to review the highlights of the report with the board and will be available for questions. The full annual financial report consists of three separate parts, including Management’s Discussion and Analysis, Basic Financial Statements and Supplementary Information. The three sections together provide a comprehensive overview of the District. While all information contained in the report is considered important, below is an overview of the key sections: Independent Auditor’s Report (page 1-3): Introductory statement and disclosure as prepared by the Auditor. Management’s Discussion and Analysis (pages 4-11): - Financial Highlights
- Overview of Financial Statements:Keys to understanding the difference and the reporting of Government-Wide Statements vs. Fund Financial Statements
- Financial Analysis of the Entity as a Whole
- Economic Factors and Next Year’s Budget
Basic Financial Statements (pages 12 – 23): Consists of the Statement of Net Position, Statement of Activities, and Balance Sheet. Various categories are further explained in the Notes to the Basic Financial Statements (pages 23 - 59) Supplementary Information: - General Fund – Budgetary Comparison (page 60)
- Compares original budget, final budget and actual revenues and expenditures for the year
- Schedules of Proportionate Share and District Contributions for CALSTRS and CALPERS liabilities (pages 62-65)
- Notes to Required Supplemental Information (page 66):
- Key to understanding the Supplementary Information statement and schedules (pages 68-75)
Independent Auditor’s Report on Internal Controls (page 76-77): Report on the District’s Internal Controls over Financial Reporting for the District. It defines the two types of deficiencies that may occur: Material Weakness and Significant Deficiency. - The report indicates that there were no deficiencies identified during the audit.
Independent Auditor’s Report on State Compliance (page 78-80): Review of the District’s compliance with state laws and regulations. - The report indicates that the district is in compliance with state program requirements.
Summary and Schedule of Findings and Questioned Costs (page 81-85): Summary and detail of audit findings. The summary also shows the overall type of audit opinion issued for Financial Statement and Compliance for State Awards: - An “Unmodified” opinion was given in the State Awards categories which is the highest opinion obtainable.
Audit Findings: None A copy of the Annual Financial Report for June 30, 2018 was provided to each of the Governing Board members as a separate document and is provided as an attachment to this item.
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