001Following is a presentation of the summary financial highlight report for the Sun Prairie Area School District annual financial statement audit. My name is Tara Bast, audit partner with Johnson Block and Company. 2025 audit overview. A brief uh overview of the content of the audit report. First, you have the independent auditor's report where we issue our opinion on the financial statements. uh we issued an unmodified opinion which means we feel the financial statements are in accordance with applicable and required standards and free of any material misstatements. After the auditor's report is the management discussion and analysis section which provides additional narrative and information that supports the financial statements. Next, there are a few sets of different financial statement schedules. the governmentwide financial statements which is more of a consolidated version of the district's different funds on
002the full acrruel basis of accounting. It reports both the governmental activities and business type activities in which the business type activities are the food service fund. Then you have the fund financial statements that provide separate balancing fund statements for each of the different district funds. general fund, capital projects funds, special revenue funds, and then separate statements for the food service funds. After the financial statements, you'll find the notes to the financial statements. This is the largest section of the audit report and contains a summary of sign significant accounting policies as well as other footnote disclosures that help support the financial statements. Then after the footnote disclosures, you have required supplementary information as well as supplementary information. This includes budget uh budget comparison schedules as well as details on the non- major fund statements. To note,
003uh we do file an auditor aid certification and audited fund balance report with the department of public instruction each year. Additionally, we issue our communication packet uh which includes the letter titled audit matters requiring communication to the governing body. On this slide and following slides, we'll go over a brief summary of the financial statement results for the year ended June 30th, 2025. Here you'll see a condensed version of the general fund balance sheet uh reporting total assets, total liabilities, and fund balance. About the financial results of the district, we usually take a look at fund balance, the different breakdowns of the fund balance categories, and fund balance as it relates to a percentage of the operating budget. Here you'll see a breakdown of the fund balance for the general fund. Includes non-spendable, restricted, assigned, and
004unassigned fund balance categories. Unassigned general fund balance at the end of the year was just over the 23.5 million. When looking at fund balance as a percentage of the budget, uh comparing the ending unassigned fund balance to the 2026 fiscal year budget, uh it's around 13.5%. And as a percentage of the total fund balance compared to that budget, it is 19.4%. and then also taking a look at a summarized income statement or the results of revenues, expenditures, and other financing sources and uses. The amended budget for the district planned for a decrease in fund balance of over 3 million. However, the financial statement results of actual results was an increase of fund balance of just under 277,000. Additionally, here is a schedule of the other governmental funds of the district reporting or showing ending fund
005balance at the end of June 30, 2025 compared to June 30, 2024. These again include the special revenue funds, capital project funds, and debt service fund. Now, the district also reports a food service fund. uh the district reports their food service fund as a proprietary or business type fund. So it's on the full ac cruel basis of accounting. So it's slightly different than the basis of accounting that the district budgets on or reports to the regulatory agencies such as DPI. Uh the operating results for the food service fund for the end of uh was a decrease in operating income of $445,000. Additionally, you can look at the operations of a food service fund in terms of the cash flow activity. Uh the bottom half of the screen here shows the different cash flow um components
006of the food service fund for the year. Cash flows from operating activities, cash flows from non- capital financing, cash flows from capital financing activities such as purchases of equipment, and cash flows from investing activities such as interest income. resulting in an ending decrease in cash and cash equivalents in the food service fund of just over that 500,000. This as well as the following slides provide some historical information on the general funds expenditures and revenues. Here you'll see the general fund expenditures over the last 5 years, noting instruction and support being the largest expenditure categories for the general fund. Uh this schedule also includes a look at the debt service principal and interest expenses or expenditures over the last 5 years. Noting that the general fund also includes the special education fund for purposes of reporting
007in the financial statements. These pie charts here provide the same financial information just in a different visual uh showing the different percentages of total expenditures for those different expenditure categories uh including instruction, support, non-program services, capital outlay, and debt service. like the expenditure schedule. This also shows the five-year historical information for the general fund revenues. Noting like most districts, the largest revenue sources include local dollars, which is primarily tax levy, and state aids or state grants. And again, this uh page shows you a look at those revenue results for the current fiscal year end June 30, 2025, comparing it to the prior year, June 30, 2024. Uh taking a look at that pie chart view of the different revenue categories. Um again, made up of local dollars, interdist, state funding, federal funding, and other miscellaneous
008revenues. This graph shows you the general obligation debt outstanding versus the allowable capacity for the district to borrow. Under state statutes, the district can borrow up to 10% of the equalized value within the district. So the outstanding debt as of June 30, 2025 was just over that 272 million while the allowable capacity to borrow was over 900 million leaving just shy of 70% of the capacity to borrow available. A couple key points of emphasis. Uh the general fund reported an overall increase in fund balance of $277,000 resulting in a total ending fund balance that is approximately 19% of the district's budgeted expenditures for the next fiscal year. These results are consistent with the district's plan to maintain or reduce the amount of short-term borrowing necessary and um in line with the district's unassigned fund balance
009policy. Additionally, uh, as noted, the district's food service fund reported a decrease in fund balance of approximately $226,000. Now, this 226,000 is based on the regulatory or budget basis before those full acrrual adjustments. Now noting that like all school districts, the primary goal uh is to provide meals to students and with the mix of federal state federal and state funding as well as uh paid meal pricing um that sometimes results in in uh decreases in fund balance in the food service fund.