001Good evening everyone. We are going to move forward with tonight's meeting despite the fact that we do not have a quorum for our audit committee. Uh so we may have an abbreviated presentation. However, we do want to go through with our audits. So with that we will begin the process. Very good. So we'll start with a present start with presentation and introductions if we may. And I'll start first of all with um introductions of the folks that are here with us this evening. So uh I'm Dominic Lesie. the assistant superintendent for business and finance. We have Emily Ship who is our assistant school business executive. Uh normally Lori M, our treasurer would be here. She could not be here with us this evening. We also have Dwayne Shon I hope I pronounced that correctly. He
002did. >> Excellent. From Insuro Advisors. Uh Mr. Sham carries our financial audit. Uh we will have I believe will Nathan be joining us as well or just Okay. All right. Very good. Uh Anthony Balardi will join us u uh online through video conferencing from Quest Rar 3 Proceeds uh for our internal audit and Courtney Pollo. I hope I have that I always say palo. >> All right very good claims our claims auditor will also join us through the video. Uh just a quick historical perspective in terms of why we have the audits. Um we carry out yearly a series of uh audits, an internal and external audit, also our claims audit. It really started with um a series of of fiscal accountability issues with New York State School back in the early 2000s and it
003became was legislated as law to um to start the five points audit oversight uh which is now education law and it's also part of our normal practice and policy that we carry out. So I just want to kind of go through those very quickly. Uh just give folks at home an understanding of why we do these and what they are and what role they play within the district. So very quickly the five points of audit oversight. First of all claims audit. Uh this basically that's a continuous pre- audit of all claims and warrants. Purpose of that is to ensure that each payment is lawful follows our policies and procedures. Of course no safety education law. Second, our internal audit. Uh inter internal audit for lack of a better term is really our risk assessment. It
004looks at uh various aspects of uh operations within the district to ensure or to to see if there are any weaknesses, our financial processes, our operational controls and as an outcome of that provides recommendations for corrective actions. Our external audit, the third part of the fivepoint oversight process is really what most of us are familiar with. That's our financial audit. Uh it is there to determine uh make sure that our statements are accurate. our financial statements. Of course, with all of these particularly our internal external audits, they're conducted not only for financial transparency and determine our own processes, systems, but we report to New York State and these process have become these these reports have become uh available to the public. Uh the fourth element is our audit committee which normally would take place this
005evening. That's typically a three member body that uh provides um again uh interfaces with both our internal and external auditors as well as our claims auditor and that serves a role to strengthen board oversight ensures a review that monitors corrective actions and last of all our corrective actions. So these recommendations are then formulated into uh what we refer to as our corrective actions. It's the work we need to do to make sure that we address anything that would be identified our current internal audit. you're going to hear a little bit more about this evening. So, I won't talk too much about that. But again, that that is our risk assessment. Again, it's something we do yearly. Uh and results can result in recommendation for a corrective action plan. Just the roles and responsibilities that are
006associated with each of those. I won't go through this in detail, but uh just you have a sense of who plays a role in all of these audit functions. Our board of education, of course, they appoint our auditors and approve our audit plans. Uh they review our reports and adopt corrective action plans as identified. Our audit committee reviews reports, meets with auditors, monitors progress. Claims auditor looks at our our purchases to make sure that we're following policy practices against education law. And they are hired and answer directly to the board of education. Our internal auditor, again, our risk assessor, they evaluate our internal controls, identify risk, and recommend improvements. our external auditor and our this is an independent body that uh reviews our financial statements and conducts our financial audits and the administration. We implement
007uh internal controls ensure that corrective action plans are carried out and the goal of this ultimately uh we want to this reinforce public trust. want to maintain public trust and provide fiscal transparency uh promote continuous improvement and protect the district's reputation and of course uh our taxpayers uh funds. So, with that, if there are any questions, I'll address those and then we'll move on to I believe, let's see, who is first here? >> Courtney. Very good. >> She's if she's on. Is Courtney on? >> If she isn't on, then I told her that we would have Anthony speak first. >> I'm here. >> Very good. So, Anony's with Questions. And Anthony, if you're on, we'll we'll have you start if that's okay. Actually, >> perfect. >> Questions now. now or do you want to wait
008until Very good. >> Okay. Uh, good to go. Or >> Yeah. Thanks, Anthony. You're on. >> All right. Perfect. Um, before we get started though, Emily, I sent you an email. Um, unfortunately, when I saved this document, one one of the pages got out of order. It was the letter. It's towards the end of the document. Um all it does really is explain uh how uh basically when we provide our services to districts and BOSIES it's a requirement of the 2005 financial oversight legislation. Uh it's a generic letter that we sent to all districts and Boseies that we service. Um so that being said um we completed a timekeeping audit uh back in May of this year. Uh the audit included evaluating the internal controls and policies administered by the district um and conducting field
009testing to determine how well the district followed existing guidelines and policies. Um so if you return past the cover um you should see a summary regarding our objective and scope as it pertains to the audit. Just want to make sure we're on the right page here. >> We're good. >> Yeah. Okay. So, you'll see the objective and scope as it pertains to the audit. Uh, so we conducted field work starting May 19th of this year. It ended on May 23rd. Um, it's originally going to be a payroll order from all departments. Uh, but after further discussion, um, it was decided to have a focus on the transportation department and their time sheets. Uh, with that being said, we reviewed the transportation department's timekeeping process. Uh, we compared it to other departments as well. Um, where
010we did testing on them as well. Uh we've specifically reviewed the internal controls in place and any applicable bargaining agreements. Uh we noted two observations during our audit. Uh one of one of which has several sub items. Um and we found several issues related to signatures, uh the counting of hours, rates used, uh employees being paid during their lunches, and other issues related to the documentation of bid time. Additionally, we found issues regarding a completion um and storage of I9 and IT2104 forms. Uh any questions so far? Oh, can I ask why it was decided to focus so narrowly on transportation? Just a little bit more background on that. >> Certainly. So, when we originally started doing the audits, um, it takes about I'm there for like a week and come Wednesday, you know, because
011how do I put this? Transportation is all time sheets. It's all time sheets and the contract they get paid a different way via overtime. And there were several issues that I was seeing time sheets. And so I reviewed these with Emily and Dom and we looked them over and um it was decided to focus on that mostly because that's where the concern lied. >> Okay. All right. Perfect. Let's see where was I. One second here. Oh, perfect. Uh if you would return to page two, um you'll show uh you'll see preliminary details related to the audit. So I interviewed Dominic Lesey, uh the assistant superintendent for business and finance. Emily Ship, assistant school business executive. Uh Jessica Hobart, um she was a payroll clerk previously. Uh Kenya Alexander, uh she's the current administrative assistant for
012transportation. And Latoya McCoy, the previous admin assistant for transportation, uh we reviewed the district's overall procedures as it relates to timekeeping, determined how effective the process was based on the information provided by them and through review of the processes. uh we selected a sample of 15 bus drivers and focused on two separate pay periods to conduct testing. Uh one was from September 29-23 to October 12th to 23 and the other from March 1st to 24 to March 14th to 24. Uh we we tested time cards from these pay periods and recalculated pay based on the hours presented and the applicable bargaining agreement. Um additionally, we selected a sample of 20 employees from departments other than transportation to test for completeness of time cards, specifically supervisor signatures. Um, we also test the completeness and accuracy of
013I9 and IT204 forms for each of the 15 transportation employees. Um, any questions so far? >> I had one other question about the sampling. What what's the population? The 15 represents a sample. >> So, there's 15 single employees. So, there's 15 transportation employees, specifically bus drivers, but there's two separate time periods. So, there's 30 total samples. >> Okay. But what's the total population of bus drivers? like is the is the 15 of >> out of out of like a total number I I can look at that I can give you >> understand like 20% sampling >> yeah okay thank you um our overall objective with this audit was to ensure that the district's processes are operating effectively and efficiently and to ensure records are being properly stored uh we noted key program objectives to the
014district as well uh so the transportation department they use manual time cards to account for hours worked. Uh these are completed by employees and submitted via a Dropbox at the department. Uh the admin assistant for transportation is responsible for collecting or viewing every time card. Uh from here she'll input the information to a Google spreadsheet shared by transportation and payroll. Payroll will then enter this information into the payroll system. Um other key controls to note here um is the administrative assistance usage of zonar to account for bus usage and the documentation of bid times in September and October of each year. Um on page three we'll have our first observation. Uh this is a multi-part observation. So um I've condensed it here for organizational purposes. Uh so during fieldwork uh pertaining to the transportation department's
015timekeeping processes. Uh we found that none of the time cards had signature approval from a supervisor. Uh should be noted in testing time cards from other departments. We found that every one of them contained signed approval from a supervisor. Uh we also found that three of the time cards from sampled employees were overpaid. uh three were underpaid and that one of the time cards was allegible and should not have been paid. Additionally, we found that there was no formal bid time documentation for two transportation department employees. Uh meaning that two employees started after the second meeting in October and didn't have their bid time documented anywhere. Um there was also an instance where the incorrect rate was used for an entire week's pay for an employee who changed roles uh from bus driver trainee to
016bus driver during the week. Uh we also found one instance where a time card was submitted 2 months late and another instance where an employee was paid hourly wages of 7 and 1/2 hours without any supporting documentation. Um and also six instances where employees were paid during their scheduled lunch. Lastly, we found there was no review of time cards on behalf of the business office. The payroll clerk would assume that the information received was correct and would only focus on input. Uh any questions here? No. Okay. So, we recommend that the district uh transition from manual time cards to an electronic timekeeping system to mitigate potential errors. Uh promote timeliness and enforce the requirement of supervisor approval. Uh but also allow for timely review on behalf of the business office um and ensure an overall
017improvement to the documentation process regarding bid hours. Uh in the meantime, the district should um focus on requiring supervisor sign off on manual time cards uh formulated um formally documented bid times and a secondary review of all payroll calculations to minimize potential errors. Any questions there? No. Okay, perfect. And our second observation pertain to the review of I9 and IT 104 documentation. We found one instance where an I9 wasn't signed by an employee. Two instances where IT2104 forms were not signed by the district. uh two instances where IT24 forms cannot be found. Uh for our recommendation, we recommend that the district strengthen its recordkeeping processes. To ensure all uh required employment documentation is complete and accurate, there should be a checklist implemented in addition to a review process for new hires to confirm completion, receipt,
018and storage of this documentation. Any questions? No. Okay. So, that's the audit portion. We're all set with that. Uh we can move on to the risk assessment if you guys are ready. Sure. Thank you. >> Perfect. Okay. Um, as for the risk assessment, we completed that back in March of this year. Um, if you turn past the cover, you'll find a generic letter that we sent to all district embosses that we service um, explaining the purpose of the risk assessment, how it's a requirement of the 2005 financial oversight legislation. Um, so on and so forth. It's a similar letter that you would see on the audit. Uh, if you turn to page one, you'll find a list of inherent risks. This is a generic listing of inherent risks that are found in each district that
019we service. Uh we have our recommendations detailed on the right. This section is a part of every report that we issue. At the bottom of the page, you will find audits that we've completed in prior years. Um and I'll have that list updated um to reflect the most recent audits once we issue the final report. Um any questions so far? No. Okay. So, if you turn to page three, you'll find a chart that showcases various functional areas throughout the district. um our prior and current year classifications for these areas and any applicable comments to the items um that have seen changes between prior and current years. Um our first comment is related to the lunch program cash. Uh we found that startup funds are not being approved by the board. Uh for extra classroom clash
020um we found that clubs with no um financial activity are still active and that the review of meeting minutes has been inconsistent uh for accounts receivable specifically special education and Medicaid. Uh we made a comment regarding how entering session note slate can have a negative impact on the district receiving payment. Uh for payroll, we found that staff aren't timely with sending time sheets to the payroll department. Uh for purchasing, we based our comment on the assistant superintendent for business approving purchase orders. Uh he didn't receive board approval yet. He was newly hired at that time, so it's understandable. Um the approval wasn't granted until March 25th. Uh for human resources, uh we noted an outdated we noted um outdated collective bargaining agreements. uh employee resignations and terminations not being reported to HR timely and the
021absence of a written operational procedure uh regarding HR is also absent. Um we'll go into detail on each of those in the later pages. Any questions so far? >> So I had a quick question but two of these um the risk went down in the current year compared to the prior year and I just don't have enough background to understand why. So could you provide like briefly explain what changed about fixed assets and information systems that >> went down? >> Certainly. Yeah. So that'll be towards the end of the presentation. Those have to do with the clear cont. >> Okay, I can wait then. I just maybe I just missed it. >> No problem. That's okay. I apologize. I should have went over those as well. Uh basically um because once I get towards the
022end, let me see here. So the prior issue was um acceptable use agreements. Those weren't uh require those weren't uh being enforced by the district. District is now enforcing a paper form uh that needs to be signed annually. So that reduced the risk there. Uh next um it was uh had to do with transportation. They were allowing mechanics to work on their personal vehicles. Uh the district's no longer allowing that. >> Okay. >> All right. Perfect. So, if you return to page five, uh you'll find our comments and recommendations prior risk assessments. Uh the most recent updates uh regarding each issue can be found underneath the respective comment and recommendation. Um I'll briefly review the ones that have an update or change as of this year. Uh if you would turn to page six, you
023will find a comment regarding transportation inventory controls. Um our observation pertains to the transportation department not having a formal parts inventory program. And we found this year that the department is currently in the process of implementing transfinder as its perpetual inventory system. It was anticipated to be completed over last summer. Um we'll go ahead and update that for 2526 uh once we visit there again. Um if it's been implemented. Uh if you turn to page 7, you'll find another comment related to the same process. We found previously that the transportation department's room for storing parts and supplies was not being properly safeguarded. We've updated this comment uh this year to reflect that a fence was installed outside the parts room uh because there's a garage door and it leads outside where extra um items are
024stored. Uh but we've also noted that none of the cameras are working properly. Um if you would turn to page 11, we have a comment regarding the district's uh child nutrition program. We had a previous comment from 23 regarding expenditures in excess of revenues uh for the year ending June 30th 24. Uh we found that the district had food service expenditures of 6 um 622,72 in excess of revenues. Any questions so far? >> No. Okay, perfect. Go ahead. I'm sorry. >> No. Okay, perfect. So, if you would turn to page 13, uh you'll find our issues identified in the current year of the trial nutrition. We found that the amount of startup cash funds was missing from the approved reorg minutes. This amount should be approved by the board annually. For extra classroom activities, we
025found that clubs are not consistent with delivering meeting minutes to the central treasures for review. Additionally, the treasures are not reviewing the minutes regularly. Uh clubs should be delivering these timely and they should be reviewed by the central treasures upon receipt. Additionally, we found that the district had four high school clubs, five Boon Middle School clubs, and two LACs clubs that were still active even though they had no financial activity for the year ending June 30th, 24. The district removed clubs with no activity from the extra classroom activity fund. Um for human resources, we found that the collective bargaining agreements for both the educational um support professionals and the substitutes association is expired as of June 2024. The district should prioritize negotiations regarding these agreements and finalize them to ensure timely renewals. Um additionally regarding
026HR, we found that employee terminations resignations are not consistently reported to HR in a timely manner. Uh there was one instance that was noted uh during the risk assessment um where an employee continued to receive pay for several months um after leaving the district due to late notification. Uh we recommend that the district implement a process for reporting all terminated and resigned employees to HR in a timely manner. Uh lastly for HR we found that there's no operational procedure uh regarding the onboarding and attendance process. There should be a pro a procedure regarding these processes that outlines the responsibilities and the steps that need to be taken. Any questions so far? No. Okay. So, for operations and maintenance, uh we found that there isn't anyone cross trainined to handle the facilities admin assistance role. Uh
027that involves uh billing procedures, fielding various questions, uh so on and so forth. We recommend that the district cross trainin at least one employee um to ensure continuity on these functions. Uh for payroll, we found that numerous staff are not timely with sending time sheets to the payroll department for processing. We also noted the absence of signatures on behalf of the transportation department after our findings in the audit. Uh these time sheets should be sent uh timely and the deadline should be communicated across all departments and every time sheet should be signed by a supervisor. Uh for purchasing we found the assistant superintendent for business have the ability to approve purchase orders without formal board approval. Um we recommend that the board should formally approve all individuals who are responsible for the approval of purchase
028orders. And lastly, for a special education, we found that uh there are district personnel who enter session notes late. This can lead to the district not receiving payments. Uh we recommend that the district implement procedures to ensure session notes are completed and entered on a timely manner. Uh deadline should be established in addition to periodic reviews to ensure that these are entered timely. Um any questions here? No. Okay, perfect. Um lastly, just to indicate where those cleared comments are that you questioned, um we have one on page 18. Um that's the one with the acceptable use agreements um when sending it to the district's network. Uh previously the district didn't require this even though it was part of policy. Uh this year we found that the district is now requiring this via paper document annually.
029Uh next, uh it's on page 17, I believe, if I have that page right. Let me double check here. Give me one second. Uh, let's see here. Page 17. It's not page 17. I apologize. One moment. Page 27. A typo on my end. Okay. So, page 27. Uh, regarding transportation. Uh, we noted previously the district mechanics work the personal vehicles in the transportation garage. um this is no longer allowable um after interviewing during the risk assessment. So this concludes this portion of the presentation as well. Any other questions? >> No, I think we're >> all set. Okay. >> All right. Perfect. Um with that said, uh once I receive a corrective action plan, um I'll go ahead and um have that signed off by my manager and then we can go ahead and forward the
030final report to you for both the risk assessment and the audit. Okay. >> Very good. Thank you. >> Thank you. Okay, you guys have a great night. >> You as well. >> Sorry, I think it's gone. Okay, she's co-host, but she said that she she able to speak, but she can control her mic. >> She can control her what? >> Her microphone. She is a co-host. She's able to turn to turn on her mic. >> Well, can anybody hear me right now? >> We can. Yeah. >> Okay. I was saying stuff before and nobody was reacting, so I was like, maybe it's not worth checking. Sorry. >> Oh, that's okay. Um, so how is everybody today? >> Doing well. How are you? >> Good. Um, do you have the quarterly up in front of you?
031>> Yes, I think we have a paper copy. >> Okay, >> I think we're all set. >> Perfect. So, this quarter um was one that we mostly saw the usual PO after invoice. Um it we didn't have anything major sticking out besides our after invoices and then a couple of um teachers that wanted um reimbursement for items that were shipped to their house. Um beyond that, we didn't have any other issues to discuss today. Uh does anybody have questions about those two issues? >> No, I think we're good there. >> Forward. >> Um >> was it worth the wait, Courtney? It was a pretty easy quarter. Everything was pretty smooth. I mean, it's hard to get rid of all the PO afters, but um we've definitely decreased them in the past few years. Um but
032yeah, I I was happy to see that that was our only real issue throughout the quarter. >> Great. Thank you very much. Just for a matter of pointing border, uh Courtney is our claim author. Thanks, Courtney. >> No problem. Have a good day. >> You as well. >> Thank you, Courtney. So Dwayne, you're on. >> All right. >> Terrific. Well, thank you. Um, >> so um, thank you for a few minutes of the meeting this evening, uh, to review the results of the external audit. Um, I want to start by thanking Emily for sure, Lori, Dominic, everybody at the district. Uh, there is a lot of work that goes into this. Uh, a lot of information, a lot of requests, a lot of documents uh, flying back and forth. Um, and uh, we are close
033to the finish line. So, that's that's certainly good news. Um, I'm going to talk mostly from the executive summary that you have in front of you and then I'll touch on some of the some of the details and highlight some of the other documents um as as we go through. Um, so I want to start on page two of the executive summary and this just mentions some of the overall audit reports uh that we're issuing. Um, we're issuing the technical term is unmodified opinion. It's a green opinion. it's the kind of opinion you want to get. Uh so we're issuing an unmodified opinion uh on the financial statement as well as on the district's internal control and compliance in accordance with government auditing standards. Uh you see the last bullet on page two mentions uh
034what's commonly called the single audit. The uh technical term is the uniform guidance which is federal uh federal regulations. And because the office of management and budget is not yet released the 2005 sorry 2025 compliance supplement um we're not able to issue those single audit reports. uh we have uh our firm has traditionally put them all together, issued them all at once even though those uniform guidance reports aren't actually required to be submitted until March till 9 months after year end. Um and because we don't have those, we can't issue them. So for you know this year, we're going to start separating um our our report issuances. you know, you'll receive the regular financial statements, the government auditing standards report, uh, in time for the 15th, and then the uniform guidance reports. Um, once we
035get the supplement, we have a chance to review it and make sure that there aren't any changes. Uh, they've sent out two draft versions so far. Uh, they said the final was going to be issued in May. Uh, it's no longer May and it's still not out, but anyway. Um so that's where we are with uh with that. Uh page three of the executive summary mentions some of the other letters that are part of the audit process. Uh we we have a management comment letter which doesn't have any current issues and I'm happy to report as one resolved issue. Uh there was a comment in the last couple of years about u accounts payable and capital projects fund was uh the way it was being accounted for wasn't correct couple years in a row. Uh
036but that was fixed uh for June 30, 2025. And then there is a report um and a comment letter related to the extracurricular activity fund. Um, the report has an unmodified opinion. Uh, the comment letter has several comments in it. Many of the same comments that we've had in the past. Uh, a lot of, uh, receipt documentation, a lot of dispersement documentation. Um, you know, some clubs in there that don't seem like bonafide clubs. So, there are, you know, a number of comments, uh, in that comment letter. Um and again similar to what we've had in the past. Um page four of the executive summary notes one more letter that's part of the audit process. Um we call it the communication letter. Um auditing standards require that we communicate certain aspects of the audit with
037you at the conclusion and that's what that letter does. It's pretty much boilerplate language. Uh there is reference in there. There were a couple of new accounting standards adopted and when we look at the financial statements, you'll see those. Um there was a couple of um uh corrected misstatements that are mentioned in that communication letter as well. Um but pretty much the letter is boilerplate language. Um page five and six of the executive summary gives you give you u some overall perspective. So these two pages are not fundbased. These are the district as a whole and these give you just kind of a pie chart to let you know kind of where the money comes from and where the money goes. Um the chart on page five shows um the sources of revenue by broad
038category and you can see these numbers tend not to change too much from one year to the next. Uh the district is roughly 2/3 funded by property taxes and tax items. uh a little more than 20% uh from state sources and then operating grants and other revenues bring in the rest. And I did notice this evening when I was looking at this that the revenue is 101%. So that's good. You're actually bringing in more revenue than I'll I'll fix that before we uh and then on page six, the same kind of pie chart with related to expenses. You can see roughly threearters of the district's total expenses um are categorized by instructions uh about you know 13 14% each year uh on general support and then transportation about 7% and then other is the rest
039other includes uh um community services includes interest on debt you know any other categories um beginning on page seven of the executive summary of several pages with some uh trend information um concerning uh the general fund mostly. Uh and so I wanted to kind of just go over some of the highlights of those. On page seven, uh you'll note that the general fund assets um ended the year at a shade under $53 million. Uh which was an increase of about 3.4 million from the year prior. Uh that increases pretty much all cash and cash and cash and investments. Uh cash and investments increased from about 35.6 million in 2024 uh to 38.9 million uh at the end of the current year. Uh receivables were down a little bit due from other funds which is just
040all the different funds and owed each other money was up a little bit. Those two things kind of cancel each other out. Uh the bottom half of page seven shows the liabilities and deferred inflows in the general fund. And in total liabilities decreased by 1.1 million uh mostly in that due due to other funds category which went from 3.3 million uh down to 2.1. The other the other numbers in there pretty stable from year to year. Um, so assets grew, liabilities dropped a little bit. And so the net result of that on page eight is that fund balance increased in total about 4.4 almost $4.5 million uh from 34.8 million up to 39.2. Uh most of that increase um is restricted. So all the different reserves uh which we'll look at in a couple of
041slides. Uh the reserves in total increased about $4.9 million in total. Uh the assigned fund balance which includes encumbered funds and also includes monies that are appropriated to balance the 2526 budget uh declined about $600,000 and the unassigned category of fund balance increased about $200,000. The unassigned fund balance by state law is limited to 4% of next year's budget. And in a couple of slides, we'll see that you were within the 4% limitation. Uh the bottom of page eight shows the revenues for the general fund. Uh the revenues in total increased about $4.8 million from 156 million to $ 160.8 million. Uh most of that increase is real property taxes. You can see the property tax line uh increased about $4.1 million. Um uh state sources actually declined a little bit. Uh and then other
042revenue uh refunds from BOSES, things like that increased a little bit as well. Uh page nine shows the expenditures for the general fund and the expenditures increased in total about $1.2 million from 155.1 million to aund 156.3 million. And if you look at the detail, you can see general support pretty flat, actually down a little bit. Construction down a little bit. Uh employee benefits was uh up a little bit. The inter fund transfers was up a little bit because you uh sent more money over to capital projects fund this year compared to last. Uh bottom of page nine uh shows some of the other uh governmental funds. capital outlay for the year was $19.8 million. All the capital projects that are ongoing. Uh the special aid fund showed about $9.2 million in revenues and expenditures.
043So the special aid fund generally speaking has no fund balance because it's all grant funded and until you earn the revenue from the grant by spending the money, you don't have you don't have the revenue. So the revenues and the expenditures typically offset there. And then the school lunch fund uh had a little bit of an increase in fund balance. Uh revenues increased to 3.5 million. Expenditures increased to 3.3 million. Um page 10 of the executive summary shows all the different categories of fund balance. And you can see the top half of this spreadsheet shows all the restricted funds, all the reserves. Uh the in total restricted fund balance is about $21.2 million. Um I'll note that we do, you know, we do look at each of those reserves for reasonleness, for making sure that
044they are within best practice, within state law, uh within those guidelines. And all of those reserve funds are within uh the guidelines that are established. So, you know, none of those are more than they should be. Uh, I'll put in quotes. Um, assigned fund balance, again, the appropriated for next year's budget and all the incumbrances. Uh, and then the unassigned fund balances the is the remaining amount. Um, page 11 of the executive summary uh shows that calculation, the 4% rule. So, um the the current year's budget uh is $169 million and change. So, the maximum allowed is 4% of that, which is 6,761. Uh the district's unassigned fund balance is $6,505. So, you're at 3.85%. You can see pretty stable uh you know, within the 3.7 3.8 the last uh four years, including this one.
045Uh page 12 shows the activity for all those reserve funds. And so you can see uh the beginning balance of 16.3 million. Uh the district added um almost $7.7 million to to all the different reserves in total. Um interest was a little bit more than half a million and then roughly $3.3 million was procreated from the reserves to get to that ending balance of 20 mil 21.2 million. Uh page 13 and 14 uh show very summarized budget uh comparison uh schedules. Uh the 2425 year is on page 13 and then the year prior is on the next page. If you look at the 2425 budget, you'll see that the district had revenues that exceeded the final budget by about $6.3 million in total. So about 4% uh more than budgeted uh came in on the
046revenue side and then on the expenditure side uh the district was below the final budget um by almost $9 million or 5.3%. And those both those numbers are a little bit higher than they were a year ago. So you look at the next page, uh the revenue excess over the budget was a little less than 4%. Uh and the expenditures below the final budget was about 2.1%. And then page 15 shows the net position analysis. So this is governmentwide uh not just general fund. Uh and this shows the the total net position of the district. And you can see if you look at this, the unrestricted net position is a big scary negative number. Um, and it is a big scary negative number primarily because the district's uh retirey health insurance obligation is recorded in
047the governmentwide financial statement. Uh, but there is no asset and there is no mechanism to create an asset uh to offset that liability. It's simply something that is paid out over the next 30 40 years as you know current retire current employees retire receive benefits. Um so there again there is no asset because there isn't the ability to create one. Um, so on this schedule, we show you what the net position would be if those um unallowable, if you will, uh, liabilities weren't reported. Uh, and you can see at the very bottom of this uh, analysis that if there wasn't uh, a pension obligation recorded and if there wasn't an retirey health insurance obligation recorded, the district would have a positive net position of about $8 million at um, page 16 of the executive summary
048just mentions the status of some uh, new accounting standards. Uh again I mentioned um a statement on compensated absences was adopted this year. So there is a re statement put note towards the back of the financial statements uh regarding that. There's also a a a note on risk disclosures and then there are a couple upcoming statement changes that'll be effective uh next year. Any questions on the executive summary? If not, I'll dig a little bit into the highlights of some of the other documents. Um, so I mentioned the management comment letter. Um, I mentioned there was one finding that we've had the last couple of years that was resolved this year. Um, a year ago, accounts payable and capital projects fund was about $3.2 million over what it should have been. there were some incumbrances
049that were recorded as accounts payable and not incumbrances uh in capital projects fund and so that that issue was corrected uh for this year so no longer a finding so we didn't have any findings so that's good um I also mentioned that communication letter uh and again that that letter mentions those new standards that were effective this year uh on first page and then on the very last page of that there is a schedule of correctness statements. Uh a couple things in the um self insurance fund uh that were adjusted during the audit process. Uh I did want to touch on a couple things in the financial report itself. I'll mention if you're, you know, if you're not going to read through the whole 80page document, I wouldn't be surprised. I I won't be offended
050if you don't read it. Um, but if nothing else, I'd encourage you to read through that management's discussion and analysis section, uh, which begins on page five. This is page 5H, uh, is a nice narrative format. It's got some nice charts and graphs that are helpful, but it gives you a, you know, a very top level, very summarized sense of where the district is financially without going into, you know, a lot of heavy detail. Uh, the financial statements themselves begin on page six and page 6 through 8 uh are the governmentwide statements. So those include all of the funds together, includes the capital assets of the district, and then includes all the district's debt, compensated absences, um, uh, pension obligation, retirey health insurance obligation, and so all of that is included there. And then the
051fund level statements, uh, follow it. So the fund level statements begin on page nine uh, and continue for the next several pages. Um the internal service fund which is page 13 through 15 um is the district's um health insurance um fund. And so you can see there uh pretty stable in terms of the overall net position. Uh declined about $50,000 from a million516 uh down to a million466. The district also has health insurance reserve in the general fund. in addition to that net position uh in the health insurance fund. And then I wanted to skip ahead a bit in the financial statements and turn to a couple of the notes that I wanted to point to. So page 34 of the financial report um shows uh capital asset activity for the district. Um, you can
052see the lefth hand column, the beginning balance had a a net value of $187.6 million including construction in progress, buildings, uh, equipment. You can see the district added about $19.2 million to construction in progress. Um, added a little bit to buildings, added about $2.2 million in equipment additions during the year. So, total additions were 21.8 million. uh depreciation and amortization expense was about 7.7 million. And so on a net basis, the district's uh net value or capital assets increased a little more than $14 million during the year. Um beginning on page 36 and continuing a couple of pages is information about the debt, the long-term debt that the district has. uh a total of $70 million in bonds outstanding as of June 30, 2025. Um and then the very bottom of page 20, sorry, page
05338 uh is a chart that shows the payoff of those bonds over time um all the way out to 2039 when the last bond uh is scheduled to be paid. Uh the notes on the pension obligation and the um retirey health insurance obligation are note 11 and note 12 respectively. You can see there's a lot of information in there. I did want to point to one place at the very bottom of page 47. So both systems that the state or that the district participates in the the ERS, employee retirement system and TRS uh teachers retirement system um are annually um actuarially determined at the state level and then the district has a small uh percentage component of that overall statewide liability. So the numbers at the bottom of page 47, those are the statewide numbers.
054And so you can see that the ERS system had a total actuarily uh estimated liability of $247.6 billion and had total assets cash investments of 230.4 billion. So a net liability at the state level of 17.1 uh billion dollars your share of that which is reported in the governmentwide financial statements uh is about 9.3 million and then on the TRS side TRS is actually funded more than 100% so assets exceeded the actuarially determined liability uh the total assets of the plan was $145.8 8 billion. Uh the total liability was 142.8. So about $3 billion um excess of asset over liability. And your share of that net pension asset uh was $7.6 million. Uh there are some charts towards the back uh providing some historical information uh about the pension obligation about the retirey health insurance
055obligation and those are all back there as well. Um and I think that's all I wanted to cover in the financial statement. Um and then the the last thing that you have is the extra classroom activity fund. Um and again uh in total across all four buildings to have funds um there was about $328,000 in cash at the end of the year. You can see on page three the breakdown by building. So the high school had about $165,000 in cash. Uh LACS had about 58,000. Uh Boon had 71,000 and had 35,000 at the end of the year. And then behind that uh schedule is a list of all the receipts, dispersements uh for each club within each of those buildings. So there's several pages there uh showing all the clubs. Uh and then the comment
056letter as I mentioned has uh a lot of comments uh related to each of the buildings and you know some things that were found during the audit. Uh again, those things have been pretty stable in terms of overall types of findings. The numbers, you know, some years they go up, some years they go down. Um but the types of findings that are in there are pretty similar uh from what they've been in the past. With that, I'll open it up to any other questions anybody might have. >> Maybe a lot of information. >> Thank you very much. Appreciate it. Thank you for your time. >> Okay. >> Excellent. >> All right. >> Thanks. >> So, we we can't formally close the meeting, so I think we're essentially done unless there's any questions or comments. Anything
057you'd like to add? No, >> you're read the whole thing. >> You're very good. Very good. And with that, I think we'll close. All right. Thank you so much. this.