Financial Audit Presentation
Year Ended June 30, 2013
Greene, Finney & Horton, CPAs
The School District of
Newberry County
2013 FINANCIAL AUDIT
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•OPINION
 District’s responsibility:
 Effective internal controls
 Financial statements
 GF&H responsibility:
 Opinion – reasonable assurance that financial
statements are materially correct
 Issued unmodified opinion
 BEST OPINION THE DISTRICT CAN RECEIVE
Greene, Finney & Horton, CPAs
NCSD
2013 FINANCIAL AUDIT
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• General Fund
 Total fund balance
increased $1.05 million
to $11.9 million
• Unassigned fund balance
is $11.2 million, which is
26% of 2013 actual
expenditures and 25% of
2014 budgeted
expenditures
• GFOA recommends a
minimum of 16.7% (two
months)
GENERAL FUND
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
2010
2011
2012
Fund Balance
2013
Greene, Finney & Horton, CPAs
NCSD
NCSD
• Major Reasons To Maintain An Adequate
Fund Balance:
• Cash flow through second half of calendar year;
property taxes are cyclical
• Significant emergencies and unanticipated expenditures
• Flexibility for discretionary funding needs
• Potential for better interest rates on debt issues (can
save the District money)
• To cover potential shortfalls from the state (a) due to
budget cuts or (b) as a result of the change in legislation
• Extremely important given the continuing uncertainties
in our economy
Greene, Finney & Horton, CPAs
2013 FINANCIAL AUDIT
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2013 FINANCIAL AUDIT
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General Fund Revenues:
• General Fund revenues of $42.8
million increased $2.2 million
(5%) compared to the prior year.
Major causes were:
• Increase in state revenues of $ 1.9 million
• Increase in local taxes of $0.4 million
• Decrease in all other revenues of $ 0.1
million
• $1.4 (3%) million higher than
budget
• Local taxes were $0.7 million higher
• State revenues were $0.7 million higher
GENERAL FUND
REVENUES
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
2010
2011
2012
Taxes
State Sources
Other Revenues
2013
Greene, Finney & Horton, CPAs
NCSD
2013 FINANCIAL AUDIT
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General Fund Expenditures:
• General Fund expenditures
increased approximately $2.2
million (5%) to $43.3 million
• Increase in Expenditures were
due to:
• $1.1 million increase in instruction
• $1.0 million increase in support
• $0.1 million increase in all other
expenditures
• Increases in salaries and benefits was
the primary driver
• $0.3 million (1%) less than
budget due primarily to lower
than anticipated expenditures
for purchased services, energy
and supplies and materials
GENERAL FUND
EXPENDITURES
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
2010 2011 2012 2013
Instruction
Support Services
All Other
Greene, Finney & Horton, CPAs
NCSD
NCSD
Other Funds
• Special Revenue Funds:
• Federal and state grants and programs – total of $11.0 million
expended in FY2013 for approximately 70 programs
• The District is constrained by federal and state requirements for
most of these programs to use the funds only as allowed by the
applicable grants
• No fund balance for most of these programs as any unspent funds
must be returned to the State or carried over to the next year.
• Food Service Fund:
• Increase in fund balance of $174k to $2.1 million
Greene, Finney & Horton, CPAs
2013 FINANCIAL AUDIT
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NCSD
Other Funds
• Capital Project Funds:
• Decrease in fund balance by $3.4 million leaving $8.9 million in
fund balance
• $4.2 million expended on capital projects and $1.8 million
transferred from NICE Capital Projects to the NICE Debt Service
Fund for the NICE principal payment
• Major projects in2013: upgrades and improvements at Newberry
High School and construction on the new District Office
• Debt Service Funds:
• Decrease in fund balance by $0.5 million leaving $8.0 million in
fund balance
• Total debt service payments of $13.4 million, including payments
of $6.2 million on short-term bonds
Greene, Finney & Horton, CPAs
2013 FINANCIAL AUDIT
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NCSD
Other Items of Note:
• Total outstanding debt was $78.5 million at June
30, 2013
• Decrease of $3.2 million from June 30, 2012
• $3.7 million (principal) and $3.9 (interest) is due in FY2014
• The District issued is Series 2013B General
Obligation Bonds in the amount of $6.0 million in
October 2013
• Bonds will be used to partially fund the required NICE debt
service for FY2014 and to provide additional proceeds for
capital outlay
• Bonds mature in March 2014, plus interest at 0.6%
Greene, Finney & Horton, CPAs
2013 FINANCIAL AUDIT
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NCSD
District-Wide (GASB 34)
• Assets - $156.4 million
• Net Position - $69.6 million
 $49.6 million Net
 $115.9 million is capital
Investment in Capital
assets
Assets
 $35.7 million is cash and
 $7.4 million Restricted
investments
 $12.6 million Unrestricted
• Liabilities - $86.9 million
• Revenues - $65.7 million
 $78.5 million is
 62% is state/federal outstanding principal restricted
debt
• Expenses - $64.4 million
- $3.5 million is non-cash
depreciation
Greene, Finney & Horton, CPAs
2013 FINANCIAL AUDIT
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NCSD
ACCOUNTING UPDATE:
• Future Significant Changes in Accounting
Principles:
• GASB #67/68: Accounting and Financial Reporting for
Pension Plans and Pensions.
• Effective in FY2015 for cost-sharing multipleemployer plans (SCRS and PORS).
• The District will be required to record its pro-rata
portion of the net pension liability associated with
these plans in its Statement of Net Position
• This will significantly decrease the District’s
unrestricted net assets/position.
Greene, Finney & Horton, CPAs
2013 FINANCIAL AUDIT
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NCSD
Compliance
• No findings, significant deficiencies, or material
weaknesses were noted
• Single Audit was required for 2013:
• Major programs audited were Title I, IDEA and School
Improvement - ARRA
Management Letter
• Required communications to management and those
charged with governance:
• Pupil Activities
Greene, Finney & Horton, CPAs
2013 FINANCIAL AUDIT
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NCSD
Summary
• Unmodified opinion on the Financial
Statements from GF&H
• Good financial condition as of June 30,
2013
Greene, Finney & Horton, CPAs
2013 FINANCIAL AUDIT
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