KATONAH-LEWISBORO UNION FREE
SCHOOL DISTRICT
Executive Summary of Audit
For the Year Ended June 30, 2008
SAS No. 114 Letter
Auditors’ Letter on Required Communication to the Board
of Education
– A letter that specifically addresses certain required communication
to the Board of Education in accordance with professional
standards – there were no comments of concern to be reported
regarding the following
• Significant Accounting Policies
• Accounting Estimates
• Significant Audit Adjustments
• Disagreements with Management
• Consultation with Other Accountants
• Issues Discussed Prior to Retention of Independent Auditors
• Difficulties Encountered in Performing the Audit
SAS No.112 Letter
Auditing standard over communication of internal control
related matters noted in the audit
– Material Weakness
• A significant deficiency that could result in a more than remote likelihood
that internal controls would not detect a material misstatement
– Significant Deficiency
• A control deficiency that adversely affects the entity’s ability to process and
report reliable financial data
– Other Matters
• Other control weaknesses identified in the audit that are not deemed material
weaknesses or significant deficiencies
•
SAS No.112 Letter
Status of Prior Year’s Findings and Recommendations
– Material Weaknesses
• None
– Significant Deficiencies:
• Extraclassroom Activity Fund-Cash Receipts - Noted Again in Current Year
• Extraclassroom Activity Fund-Cash Management - Corrected
• Federal Grant Payroll Certification - Corrected
– Other Matters:
• Segregation Of Duties-Payroll/Human Resources - Corrected
• Bid/Quote Documentation - Noted Again in Current Year
• Internal Claims Auditor - Corrected
• Inventory - Corrected
•
SAS No.112 Letter
Current Year Findings and Recommendations
– Material Weaknesses
• None
– Significant Deficiencies:
• None
– Other Matters:
• Purchases
• Staff Attendance
• Information Technology
KATONAH-LEWISBORO UNION FREE SCHOOL DISTRICT
Executive Summary of Audit
For the Year Ended June 30, 2008
Basic Financial Statements
Independent Auditor’s Report. Unqualified Opinion on the School District’s basic financial
statements for the year ended June 30, 2008.
No matters noted with regard to Managements Discussion
and Analysis budget comparison, and other reports required
by NYSSED. Unqualified Report on Schedule of
Expenditures of Federal Awards in relation to basic financial
statements taken as a whole.
Report on Compliance and on Internal Control Over Report on the School District’s compliance with laws and
Financial Reporting Based on an Audit of Financial regulations that may have a direct and material effect on the
Statements Performed in Accordance with Government basic financial statements, and on the School District’s
Auditing Standards. internal control structure, policies and procedures based on
the auditors’ understanding of the internal control structure
and assessment of control risk obtained as part of the audit of
the basic financial statements. This report identified no
material instances of noncompliance.
KATONAH-LEWISBORO UNION FREE SCHOOL DISTRICT
Executive Summary of Audit (cont.)
For the Year Ended June 30, 2008
Single Audit (OMB A-133) Report
Report on Compliance with Requirements Applicable to Each Major Report on each major program’s compliance and internal controls that
Program and Internal Control Over Compliance in Accordance with could have a direct and material effect on these programs. OMB
OMB Circular A-133. Circular A-133 identifies 14 compliance areas that are required to be
tested in addition to other laws, regulations, contract, and grant
agreements. This report identified no material instances of
noncompliance and no material internal control weaknesses
regarding compliance in accordance with OMB Circular A-133.
However, we did note the following compliance issue required to be
reported to you in accordance with A-133:
The federal award program expenditures totaled $ 1,001,801. We
identified the following programs as major based on a risk based
approach:
U.S. Department of Education – Special Education Cluster
CFDA #84.0173 Special Education – Preschool Grants
$ 53,204
CFDA #84.027 Special Education Grants to States
$ 698,711
Total $ 751,915
Percentage of Total 75%
BALANCE SHEET
For the Two Years Ended June 30, 2008
2008 2007
Assets
Cash - Unrestricted $ 13,715,731 $ 11,784,331
Cash - Restricted 5,532,941 4,560,138
Accounts Receivable 129,919 85,818
Due From Other Funds 326,086 643,334
Due From Fiduciary Funds 1,031,946
Due From Other Governments 1,028,397 1,641,850
Prepaid Expenditures 1,467,019 1,432,492
Total Assets 23,232,039 20,147,963
Liabilities
Accounts Payable 1,795,102 2,228,978
Accrued Liabilities 469,871 332,539
Due To Other Funds 23,810 46,604
Due To Teachers' Retirement System 4,258,641 3,844,642
Due To Employees' Retirement System 237,602 262,274
Compensated Absences 77,155 175,996
Accrued Liabilities 0 0
Other Liabilities 0 21,045
Deferred Revenues 16,970 30,137
Total Liabilities 6,879,151 6,942,215
Fund Balances
Reserve for Encumbrances 2,611,433 2,735,274
Special Reserves 6,999,962 5,992,630
Unrestricted
Designated for Subsequent Year's Expenditures 3,000,000 1,400,000
Undesignated 3,741,493 3,077,844
Total Fund Balances 16,352,888 13,205,748
Total Liabilities and Fund Balances 23,232,039 20,147,963
• Healthy Balance Sheet
• Current Ratio of Approximately 3:1
INCOME STATEMENT
For the Two Years Ended June 30, 2008
2008 2007
REVENUES
Real Property Taxes $ 83,010,562 $ 80,362,713
Other Real Property Tax Items 9,530,436 9,670,996
Nonproperty Taxes 917,415 890,736
Charges for Services 295,972 351,890
Use of Money and Property 1,002,033 1,465,293
Forfeitures 3,600
Sale of Property and Compensation for Loss 108,901 179,895
Miscellaneous 477,220 478,773
Interfund Revenues 0
State Sources 7,440,799 7,119,239
Federal Sources
Total Revenues 102,786,938 100,519,535
EXPENDITURES
General Support 10,747,288 10,333,142
Instruction 53,947,733 49,596,475
Pupil Transportation 4,619,331 4,510,762
Community Services 18,649 36,644
Employee Benefits 22,883,056 20,838,753
Debt Service 7,313,849 7,970,811
Total Expenditures 99,529,906 93,286,587
Excess (Deficit) Revenues Over Expenditures 3,257,032 7,232,948
Other Financing Sources (Uses)
Interfund Transfers From (47,171) (555,507)
Interfund Transfers To 157,063 88,956
Total Other Financing Sources (Uses) 109,892 (466,551)
Excess (Deficit) Revenues Over Expenditures
and Other Financing Sources (Uses) 3,147,140 6,766,397
Fund Balance, Beginning of Year 13,205,748 6,439,351
Fund Balance, End of Year 16,352,888 13,205,748
REVENUES
$100,000,000
$90,000,000
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
2008 2007
Real Property Taxes $93,458,413 $90,924,445
State Sources 7,440,799 7,119,239
Other Local Sources 1,887,726 2,475,851
Real Property Taxes make up 90% of Revenue Source
EXPENSES
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0
2008 2007
Community Services 18,649 36,644
Debt Service 7,313,849 7,970,811
Employee Benefits 22,883,056 20,838,753
Pupil Transportation 4,619,331 4,510,762
Instruction 53,947,733 49,596,475
General Support 10,747,288 10,333,142
FUND EQUITY
Fund Equity 2008 2007
Reserve for Encumbrances $ 2,611,433 $ 2,735,274
Reserve for Employee Benefit Accrued Liability 913,062 659,920
Reserve for Prepaid Expenditures 550,000 656,899
Reserve for Repairs 3,086,189 3,012,700
Reserve for Debt Service 343,012 285,318
Reserve for Tax Certiorari 1,190,680 602,200
Reserve for Risk Financing 917,019 775,593
Designated for Subsequent Year's Expenditures 3,000,000 1,400,000
Undesignated 3,741,493 3,077,844
Total Fund Balances 16,352,888 13,205,748
Highlights
• Overall fund equity increased $3,147,140
• Appropriated an additional $1.6 million towards tax levy for a total of
$3 million
• $4 million budgeted appropriations unexpended and unencumbered
• Encumbrances carried over to 08/09 $ 2.6 million
• Unreserved, Undesignated Fund Balance currently at 3.5% of the
subsequent year’s budget (NYS allows up to 4%)
FUND EQUITY
18,000,000
16,000,000
Fund Equity -
Difference 14,000,000
between Assets
and Liabilities 12,000,000
Planning with a 10,000,000
healthy fund
balance ensures 8,000,000
future stability
against: State Aid 6,000,000
fluctuations,
future liabilities, 4,000,000
and future
projects. 2,000,000
0
2008 2007
Undesignated 3,741,493 3,077,844
Designated for Subsequent Year's 3,000,000 1,400,000
Expenditures
Other Reserves 2,450,711 2,320,027
Reserve for Repairs 3,086,189 3,012,700
Reserve for Prepaid Expenditures 550,000
Reserve for Employee Benefit Accrued Liability 913,062 659,920
Reserve for Encumbrances 2,611,433 2,735,274
Thank you