KIRKWOOD SCHOOL DISTRICT R-7 FINANCIAL STATEMENTS

Transcription

KIRKWOOD SCHOOL DISTRICT R-7
FINANCIAL STATEMENTS
AND INDEPENDENT AUDITORS' REPQRTS
AND SUPPLEMENTARY INFORMATION
June 30,2005
TABLE OF CONTENTS
INDEPENDENT AUDITORS REPORT ..........................................................
MANAGEMENT'S DISCUSSIONAND ANALYSIS - REQUIRED
SUPPLEMENTARY INFORMATION............................................................
BASIC FINANCIAL STATEMENTS:
Government-wide FinancialStatements:
Statement of Net Assets ...................................................................
..
Statement of Activ~t~es
......................................................................
Fund Financial Statements:
-
Balance Sheet Governmental Funds .............................................
Reconciliationof the Balance Sheet of Governmental
Funds to the Statement of Net Assets............................................
Statement of Revenues, Expenditures and Changes in
Fund Balances Governmental Funds...........................................
-
Reconciliationof the Statement of Revenues, Expenditures
and Changes in Fund Baiances of Governmental Funds
to the Statement of Activities ..........................................................
Notes to Basic Financial Statements ...................................................
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Revenues, Expenditures and Change in
Fund Balance - Budget and Actual (Budgetary Basis) Unaudited:
General Fund ...............................................................................
Special Revenue Fund.................................................................
Notes to Required Supplementary Information................................
TABLE OF CONTENTS
ADDITIONAL SUPPLEMENTARY INFORMATION:
-
Combining Balance Sheet Debt Service Fund
by Component Unit...........................................................................
Combining Balance Sheet - Capital Projects Fund
by Component Unit ..........................................................................
Combining Statement of Revenues, Expendituresand
Chanaes
- in Fund Balances - Debt Service Fund
by Component Unit...........................................................................
Combining Statement of Revenues, Expendituresand
Changes in Fund Balances - Capital Projects
Fund by Component Unit..................................................................
Schedule of Revenues, Expenditures and Change in
Fund Balance - Budget and Actual (Budgetary Basis):
Debt Service Fund ......................................................................
Capital Projects Fund .................................................................
Schedule of Selected Statistics ............................................................
Report on Compliance - State Requirements ......................................
COMPLIANCE AND INTERNAL CONTROLS:
Schedule of Expenditures of Federal Awards ......................................
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance
with Government Auditing Standards...........................................
TABLE OF CONTENTS
COMPLIANCE AND INTERNAL CONTROLS (continued):
Report on Compliance With Requirements Applicable
to Each Major Program and Internal Control
Over Compliance in Accordance with OMB
Circular A-133. .........................................
.........................................
67
Schedule of Findings and Questioned Costs ..............................;.....$..
69
CERTIFIED PUBLIC A C M I U N T A N T S A N D CONSULTANTS
1 1 8 7 8 GRAVOIS R O A D
ST. LOUIS, MISSOURI 63 127
(314) 8 4 9 4 9 9 9
FAX (314) 849-3486
FINANCIAL SERVICES
COMPUTER SOLUTIONS
ADMlNtSTRATlVE OFFICES
l1?77 GRAVOIS ROAD
ST. LOUIS, MISSOURI 63127
(314) 812,2929
FAX (314) 842.3483
INDEPENDENTAUDITORS' REPORT
To the Members of the
Board of Education
Kirkwood School District R-7
We have audited the accompanying financial statements of the governmental
activities, and each major fund of the Kirkwood School District R-7 (the "District") as of
and for the year ended June 30, 2005, which collectively comprise the District's basic
financial statements as listed in the table of contents. These financial statements are the
responsibility of the District's management. Our responsibility is to express opinions on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States of America, and the Standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all
material respects, the respective financial position of the governmental activities and each
major fund of the District as of June 30, 2005, and their respective changes in financial
position for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
The management's discussion and analysis on pages 3 through 13 and the
Schedule of Revenues, Expenditures and Change in Fund Balances - Budget and Actual
- General Fund and Special Revenue Fund and related notes on pages 44 through 45 are
not a required palt of the basic financial statements but are supplementary information
M6MBERS
SEC PRACTICE SECTION
AMKRICAN INSTITUTE OF CERTIFIED PUBUC ACCOUNTANTS. MISSOURI SOCIETY OF CERTIFIED PUBLlC ACCOUNTANTS
SC IN'I'ERNATIONAL (MEMBER FIRMS THROUGHOUT THE WORLD)
required by accounting principles generally accepted in the United States of America. We
have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit the information and express no
opinion on it.
In accordance with Governmenf Auditing Sfandards, we have also issued a report
dated August 12, 2005 on our consideration of the District's intemal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements and other matters. The purpose of that report is to
describe the scope of our testing of intemal control over financial reporting and
compiiance and the results of that testing and not to provide an opinion on the intemal
control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Audifing Sfandards and should be read
in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming opinions on the financial
statements that collectively comprise the District's basic financial statements. The
accompanying Additional Supplementary Information on pages 48 through 60 and the
Schedule of Expenditures of Federal Awards on page 63 required by OM5 Circular A133, are presented for purposes of additional analysis and are not a required part of the
basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, is
fairly stated, in all material respects, in relation to the basic financial statements taken as
a whole.
St. Louis, Missouri
August 12,2005
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30,2005 UNAUDITED
-
The discussion and analysis of the District's financial performance provides and
overall review of the District's financial activities for the fiscal year ended June 30, 2005.
The intent of this discussion and analysis is to look at the District's financial performance
as a whole; readers should also review the transmittal letter, notes to the basic financial
statements and the financial statements to enhance their understanding of the District's
financial performance.
The management's Discussion and Analysis (MD&A) is an element of the
reporting model adopted by the Government Accounting Standards Board (GASB) in their
Statement No. 34 Basic Financial Statements - and Management's Discussion and
Analysis - for State and Local Governments issued June 1999.
Financial Highlights
Overall:
The District's net assets increased by approximately $1.3 million or 18%. primarily
due to increases in property tax revenue. Program revenues accounted for $11.9 million
or 22% of total revenue, and general revenues accounted for $42.1 million or 78%.
Total revenue was $54.0 million and total expenses were $52.7 million.
Outstanding debt decreased to $31.5 million from $33.5 million in 2004.
The general fund balance was $18.6 million, a decrease of $0.7 million from 2004.
The District's tax revenue during the 2005-2006 school year will be reduced by
approximately $500,000 relating to commercial real estate taxes that were successfully
protested for the tax years 2002, 2003, & 2004. The District will recoup approximately
$200,000 of this loss by increasing the 2005-2006 tax levy.
On April 5, 2005, Prop i was passed by our community. The first part of Prop i
includes a $0.20 levy for the payment of principal and interest on leasehold revenue
bonds that will generate approximately $30 million to be used for immediate infrastructure
re~airsand ~morovementsthrou~houtthe District. The second part of Prop i was a $0.15
tax levy for deferred maintenance to be phased in at $0.05 increments over a period of
three years.
On August 1, 2005, the District issued $7,850,000 General Obligation Refunding
Bonds, Series 2005A, for the purpose of providing funds to advance refund a portion of
the District's General Obligation Bonds, Series 1996 and Series 1997. The net present
value savings is estimated to be $452,923.
FOR THE FISCAL YEAR ENDED JUNE 30,2005 - UNAUDITED
Reporting the School District as a Whole
Statement of Net Assets and the Stafement of Activities
One of the most important questions asked about the District's finances is, "Is the
District better off or worse off as a result of the year's activities?" The Statement of Net
Assets and the Statement of Activities report information about the District as a whole and
about its activities in a manner that helps to answer this question. These statements
include all assets and liabilities using the accrual basis of accounting similar to the
accounting used by most private-sector companies. This basis of accounting takes into
account all of the current year's revenues and expense regardless of when cash is
received or paid.
These two statements report the District's net assets and changes in those assets.
This change in net assets is important because it tells the reader that, for the District as a
whole, the financial position of the District has improved or diminished. The causes of this
change may be the result of many factors, some financial, some not. Non-financial factors
include the District's property tax base, current property tax laws in Missouri restricting
revenue growth, facility conditions, required educational programs and other factors.
These statements include the activity of the Kirkwood School District Educational
Facilities Authority.
Reporting the District's Most Significant Funds
Fund FinancialStatements
The analysis of the District's major funds begins on page 6. Fund financial reports
provide detailed information about the District's major funds. The District uses many funds
to account for a multitude of transactions. However, these fund financial statements focus
on the District's most significant funds. The District's major governmental funds are the
general fund, special revenue fund, debt service fund and the capital projects fund.
GovernmenfaiFunds
All of the District's activities are reported in governmental funds, which focus on
how money flows into and out of those funds and the balances left at year-end available
for spending in future periods. These funds are reported using an accounting method
called modified accrual accounting, which measures cash and all other financial assets
that can readily be converted to cash. The governmental fund statements provide a
detailed short-term view of the District's general governmental operations and the basic
services it provides. Governmental fund informatian helps determine whether there are
-
Reporting the District's Most Significant Funds (continued)
GovernmentalFunds (confinued)
more or fewer financial resources that can be spent in the near future to finance
educational programs. The relationship (or differences) between governmental activities
(reported in the Statement of Net Assets and the Statement of Activities) and
governmental funds is reconciled in the financial statements.
Government-Wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a
government's financial position. In the case of the District, assets exceeded liabilities by
$8.5 million at the close of the most recent fiscal year.
The District's net assets consists of unrestricted fund balances totaling $18.6
million, restricted fund balances totaling $3.8 million, and ($13.9) million in investments in
capital assets. Investments in capital assets are reported as a negative because the
District is required to show capital assets at their purchased price (historical cost) net of
related debt that is still outstanding. The District uses capital assets to provide services;
consequently, these assets are not available for future spending. Although the District's
investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the
capital assets themselves cannot be used to liquidate these liabilities.
Table 1 provides a summary of the District's net assets for 2005 & 2004
Table 1
Net Assets
(in Thousands)
Assets
Current and other assets
Capital assets
Total Assets
Liabilities
Other liabilities
Long-term obligations
Total Liabilities
Net Assets
Investment in capital assets,
net of related debt
Restricted
Unrestricted
Total Net Assets
Governmental Activities
Graph 1
Net Assets Governmental Activities
(In Thousands)
Total Assets
Total Liabilities
Government Activities
(In Thousands)
Total
Assets
Total
Total Net
Liabilities Assets
Current assets decreased $0.3 million. The decrease was primarily the result of a
decrease in receivables. Capital assets decreased by $0.4 million, equal to the difference
between capital asset purchases of $0.8 million and depreciation expense of $1.2 million.
Approximately $222,000 of the capital asset additions was roof replacements; $216,000
of the additions was for a video system at the middle schools; and $119,000 of the
additions was for new copiers in the Copy Center. Total liabilities decreased by $1.8
million primarily because of principal payments on the District's general obligation bonds.
Net assets of the District's governmental activities increased by $1.3 million and
undesignated net assets reflect a healthy positive balance of $18.6 million.
-
Governmental Activities
Table 2 shows the change in net assets for fiscal year 2005 & 2004 for
Govemmental Activities:
Table 2
Changes i n Net Assets for Govemmental Activities
(In Thousands)
lncrease
{Decrease)
Revenues
Program Revenues:
Charges for Services and Sales
Operating Grants
Capital Grants and Contributions
General Revenue:
Property Taxes
Sales Taxes
State Aid
Investment Earnings
Other
Total Revenue
Program Expenses
Instruction
Attendance
Guidance
Health Services
Improvementof lnstruction
Professional Development
Media Services
Board of Education Services
Genera1,Administration
Building Level Administration
Business, Fiscal and Internal Services
Operation of Plant
Transportation
Food Service
Community Services
Facility Projects
Debt Services.
Total Expenses
lncrease in Met Assets
-
District Funds
Graph 2
Revenue Sources
(In Thousands)
Local
County
State
Federal
$48,714
636
3,716
1.175
Total
.
Revenue Sources
(In Thousands)
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$-
Local
County
State
Federal
The District's reliance upon local revenues is demonstrated by the graph above
that indicates 90% of total revenues for the District's funds come from local sources.
The property tax laws in Missouri create the need to periodically seek voter
approval for additional operating funds. Reassessment revenue growth is restricted by
the lower of the percentage increase in assessed valuation or the increase in the
Consumer Price Index. Therefore school districts such as ours that are dependent upon
property taxes as a primary source of revenue must periodically return to the ballot and
ask voters for additional resources to maintain current programs. Since the District must
rely heavily on voter approval of operating tax issues management of the resources is of
paramount concern to District's administration and the voting public. The District utilizes a
five-year cash financial forecast to estimate revenues and control expenditures to assure
tax levy revenues can maintain operations for a significant period of time.
District Funds (continued)
The District's governmental funds (as presented on the balance sheet on page 16
reported a combined fund balance of $22.9 million. The schedule below indicates the
fund balance and the total change in fund balance by fund type as of June 30,2005 and
2004.
General
Special Revenue
Debt Service
Capital Projects
Total
Fund Balance
June 30.2005
Fund Balance
June 30,2004
increase
(Decrease)
$18,636,897
-4,286,739
--
$19,349,470
--
$ (712,573)
4,333,068
20
(46,329)
(20)
a.923.632
&S,t6B235B
--
$1L5-8&22)
General Fund
The District's General Fund balance decreased because expenditures exceeded
revenue by $.3 million and because the District recorded $.4 million in lost revenue due to
taxes that were successfully protested by commercial entities for the tax years 2002,
2003, & 2004.
Special Revenue Fund
The District set a zero tax levy in the Special Revenue Fund. State law allows
Districts to transfer amounts from the General Fund to the Special Revenue Fund to
avoid deficits in the Special Revenue Fund.
MANAGEMENTS DISCUSSION AND ANALYSIS
Graph 3
As the graph below illustrates, the largest portions of District's fund expenditures
are for salaries and fringe benefits.
Graph 3
Expenditures by Object
(In Thousands)
2005
2004
$5&3m
& 5 M
Increase
{Decrease)
Salaries & Beneflts
Purchased Services
Supplies
Capital Outlay
Other Objects
Total
Increase
$851
KI~KWOODSCHOOL DISTRICT R-7
-
Total expenditures are up $.9 million or 1.6% over the prior year mostly due to
salary and benefit increases associated with new and existing staff and decreases in
supplies and capital outlay expenditures. Expenditures exceeded general revenues
during the fiscal year resulting in a decrease of $0.7 million in fund balance. Debt service
expenditures exceeded revenues during the fiscal year resulting in a decrease in fund
balance of approximately $20,000. Capital Projects expenditures exceeded revenues
during the fiscal year resulting in a decrease in fund balance of $20.
Budget information
The District's budget is prepared in accordance with Missouri state law and is
based on the cash basis of accounting, utilizing cash receipts, disbursements and
encumbrances.
The District amended its revenue estimates to reflect greater than originally
anticipated revenues from taxes and state & federal sources. The final budget for
expenditures increased $1.6 million over the original budget due to an increase of $0.9
million in general expenditures and $0.7 million in capital outlay expenditures. The
increase in general appropriations resulted from several changes in functional categories
due to spending patterns.
Capital Assets
The District has $18.9 million invested in capital assets net of depreciation.
Acquisitions for governmental activities totaled $780,251 and depreciation was
$1,161,307. Majority of the acquisitions were roof replacements and equipment. Detailed
information regarding capital asset activity is included in the notes to the basic financial
statements (Note 3).
Debt
At June 30, 2005, the District had $31.5 million in outstanding general obligation
bonds, $2.3 million due within one year. The District paid $2,100,000 in principal on
bonds outstanding. Detailed information regarding long-term debt is included in the notes
to the basic financial statements (Note 4).
Under current state statutes, the District's general obligation bonded debt issues
are subject to a legal limitation of fifteen (15%) of the assessed valuation of the District
(including State assessed railroad and utility). At June 30, 2005, the District's general
obligation debt was below the legal limit.
Graph 4
Debt and Debt Limit at June 30
Constitutional Debt Limit
General Obligation Bonds Payable
Amount Available in Debt Service Fund
$135,570,281
(31,450,000)
4.286.739
$136,495,094
(33,550,000)
4,333,068
Legal Debt Margin
3iaELaUa.
am
Debt and Debt Limit At June 30
(In Thousands)
Constitutional
Debt Limit
Total Debt
For the Future
The Kirkwood School District R-7 continues to be in a strong financial position.
With the passage of the 1997 tax levy and Prop C rollback, the District has been able to
maintain the iow class size goals and continue its quality educational programs. Also, with
the passage of Prop i, the District will be able to make infrastructure repairs and
improvements throughout the District without using our operating fund balance. However,
the future financial stability of the District is not without challenges.
One challenge facing the District is the future funding of the VlCC program. The
2005-06 is expected to be the low point of per pupil funding. The District expects to
receive $5,700 per pupil including Title I funding. The funding for the future years
progressively improves assuming that the new school funding formula doesn't change.
The per pupil funding is projected to be $6,900 in 2006-2007, $7,500 in 2007-2008, and
$8,000 in 2008-2009.2009-2010 and beyond continue this trend of gradual improvement.
-
For the Future (continued)
Furthermore, a favorable outcome to the state funding lawsuit would only. improve
these
.
projections. It will take approximately a year and a half before an unappealabe decision is
reached in the case. 2008-2009 is the last Year to accept new students under the 1999
Settlement as is presently stands. There wilt be a twelve year "tail" for the enrolled
students to complete school through graduation. However, with no new students coming
to replace students that graduate, move from the city, or otherwise withdraw from the
program, enrollment is expected to fall rapidly after 2008-2009.
Another challenge facing the District is the changes in State funding due to the
new school funding formula. Senate Bill 287 enacted a new school funding formula
beginning in 2006-07, which will be phased in over 7 years. The new formula is primarily
student "needs based" and will fund school districts based on a State Adequacy Target
($6,117 per Average Daily Attendance or ADA) plus a Dollar Value Modifier (DVM). DVM
is an adjustment for the cost of education differences within the state. If certain
"thresholds" are met, districts will receive adjustments to their ADA ("Weighted ADA) for:
students who qualify for free & reduced lunch, students who receive special education
services, and students who possess limited English language proficiency (LEP). The
Kirkwood School District does not have enough free & reduced and LEP students to meet
the required thresholds and since Special School District serves our special needs
students, the District will not receive any adjustments to our ADA when calculating our
State funding. Since the District's local tax revenue is greater than the revenue calculated
under the new formula, the District will continue to be "Hold Harmless" and will receive a
small increase in State funding due to the DVM adjustment.
Currently Proposition C funds are distributed based on ADA. Because of
provisions in the new formula, these sales tax funds will be distributed using a "Weighted
ADA" count beginning with the 2006-07 school year. Because the District does not meet
the 'thresholds" mentioned above, it will not receive adjustments or additional "weight" to
its ADA. Districts with "weighted ADA will receive additional Prop C revenue leaving less
revenue for Districts such as Kirkwood.
In 2006-07, the District expeds to receive an increase of approximately $69,000 in
State funding under the new formula, and the District expects a decrease in Prop C
revenue of approximately $163,000 for a total net decrease of $94,000.
Contacting the School District's Financial Management
This financial report is designed to provide our citizens, taxpayers, and investors
and creditors with a general overview of the District's finances and to show the District's
accountability for the money it receives. If you have any questions about this report or
need additional financial information, contact Dr. Joyce West, Treasurer of Kirkwood
School District R-7, 11289 Manchester Road, Kirkwood, Missouri 63122.
KIRKWOOD SCHOOL DISTRICT R-Z
STATEMENT OF NET ASSETS
JUNE 30,2005
- - ASSETS - Cash and investments........................................................................................................................
Cash and investments - restricted......................................................................................................
Receivables:
Taxes (net).........................
Interest................
.......
.................................................................................................................
Other................................................................................................................................................
Prepaid item
Inventory.............................................................................................................................................
TOTAL ASSETS..................................................................................................................................
- - LIABILITIES - Cash overdrafl.....................................................................................................................................
Accounts payable................................................................................................................................
Accrued wages ...................................................................................................................................
Deferred revenue................................................................................................................................
Medical benefits payable.................................................................................................................
..............
Accrued Interest....
...............
Property taxes pa
Long-term liabilities:
Due within one year:
Compensated absences (vacation)...............................................................................................
Bonds..................... ..................................................................................................................
.
.
Due afler one year:
Compensated absences (vacation).......... ..............................................................................
Bonds.............................................................................................................................................
.
.
Total Liabilities............................................................................................................................
- - NET ASSETS - Invested in capital assets, net of related debt...................................................................................
Restricted for:
TOTAL LIABILITIES AND NET ASSETS
See accompanying notes to the basic financial statements
- 14-
Governmental
Activities
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30,2005
Net (Expense)
Revenue and
Changes in
Net Asssls
Program Revenues
Ch;uges for
Services
and Sales
Expenses
GOVERNMENTAL ACTIVITIES:
Inslruction..............................................
Auendance
..................................
Guidance
Health services
....................
Improvement of insttuction.......................
Profession development..........................
Media devices
Board of education services....................
General administration
Building level administration
Business, fiscal and internal services
Operation af plant...................
Transportation
..................................
Food service
Community services
Facility projects...........................................
Debt services:
interest
Other expenses
..........
.
$
................................................
................ ..
..............
.
.
......................
..............................
......... ..............
........
.........
.
.
.............
.............................................
...................................
..................................................
............
.
....................
TOTAL GOVERNMENTAL ACTIVITIES.....
28,792,648
44,776
1,914,133
427,138
515,350
80.300
2,938,577
113,690
958,889
4,180,920
909.787
4,989,028
879,071
1,300,918
2,181,851
921.138
$
204.518
Operating
Grants and
Contributions
$
Capital
Grants and
Contributions
Total
Governmental
Activities
6.270.587
1,498.318
118,082
177.595
9.000
11.874
945,038
1,665364
231.585
304,206
290,987
1,592,107
1,574
$
52,699,693
$
4,334.012
$
7,393,022
$
123,234
(40,849,425)
General Revenues
Taxes:
.....................................................
TOTAL GENERAL REVENUES................................
42,180,339
...........
NET ASSETS. BEGiNNiNG OF YEAR. RESTATED...
CHANGE iN NET ASSETS ..............................
NET ASSETS. END OF YEAR ................................
- 15 -
37.207.925
3,293,289
931.789
634,379
112,947
1.330.914
7,220.366
$
8,551.280
URKWOOD SCHOOL DISTRICT R-7
BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30,2005
Special
Revenue
General
- - ASSETS - -
.
.
Cash and investments..........
........... $17,948,918
Cash and investments-restricted.............
1,193,648
Receivables:
Taxes (net)..........................................
713,269
lnteres
61,446
Other......................................................
167,692
Prepaid items............................................
383,601
Inventor
TOTALASSETS..................................... $20,764,723
$
-
Debt
Service
$2,679,755
1,622,099
Capital
Projects
$
-
77,065
12,133
-
$4,391,052
$
325,855
9,541
81,884
43,790
$
822,179
73,579
170,565
2,873
461,070
461,070
$20,923,642
2,815,745
31,845
-
$
294,969
Total
Governmental
Funds
$
3,914
848,585
296,151
333,601
$25,950,446
- - LIABILITIES AND FUND BALANCES - LIABILITIES:
Cash overdraft....................................... $
Accounts payable................................
Accrued wages ................... ............
Deferred revenues...............................
Medical benefits payable.......................
Property taxes payable..........................
.
.
.
Total Liabilities..........................
466,055
201,831
722,702
293,265
443,973
2,127,826
461,070
60,860
25,149
104,313
333,601
4,286,739
$
461,070
325,855
784,048
283,715
852,501
293,265
487,426
3,026,810
296,151
4,286,739
$4,391,052
$
4,286,739
-
18,836,897
$20,764,723
308,452
43,453
..
TOTAL LIABILITIES AND
FUNDBAMNCES..............................
$
-
FUND BALANCES:
Reserved for:
Debt service.....................................
Capital projects................ ..............
Inventory........................... ..............
296,151
Unreserved:
Undesignated...................................... 18,340,746
Total Fund Balances........................
-
$
-
18,340,746
-
22,923,636
333,601
$25,950,446
KIRKWOOD SCHOOL DISTRJCT R-7
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TOTHESTATEMENTOFNETASSETS
June 30,2005
.
Total fund balance governmental funds
...................................................................................
$ 22,923,636
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and therefore
are not reported in the funds. The cost of the assets is $39,677,181 and the
accumulated depreciation is $20,726,220 .........................................................................................
18,950,961
Property taxes and other receivables will be collected this year, but are not available
soon enough to pay for the current period's expenditures and therefore are
deferred in the funds..........................................................................................................................
649,291
To recognize interest accrual to year end on general obligation bonds,
leasehold revenue bonds, and obligations under capital leases.........................
.............................
(569,716)
Long-term liabilities, including bonds payable, are not due and payable in the current
period and therefore are not reported in the funds:
General obligation bonds
Facilities authority leasehold revenue bonds.................. ...................
Compensated absences (vacations)......................... ..............................
Capital lease obligatio
Total
.
.
31,450,000
740,000
571,624
NET ASSETS OF GOVERNMENTAL ACTIVITIES.......................................................
-17-
$
8,551,280
STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30. 2005
Special
Revenue
General
REVENUES:
Local sources:
Properly taxes
$ 31.953.
127
Sales taxes.........................
............ 3.2932.99
Investment income
491.329
Food service...............................................
945.038
Student activilies
1.498.
315
Community services
1.665.
265
VICC .....................................................
3.557.
662
Other local
75.542
Total Local.............................................
43.4795
.77
Countv sources:
State assessed utilities...............................
470.160
Other county................................................
Total County............................................
470.160
State sources:
822.756
Basic formula..............................................
2.892.
863
State grant and contributions.....................
Total State
................... 3.715619
.
Federal sources.............................................
885.048
........................................
..........
.....................................
....................................
..................................
..................................................
$
.
1.715
204.517
206.232
56.838
56.836
Debt
Service
$ 3.431.
004
Capital
Projects
$
1.454.
756
1.999
140.781
3.571.785
1.456.
755
80.069
28.812
80,069
.
Total Revenues..................................
EXPENDITURES:
Current:
......................
Instruction.................
Attendance.........
.......
............................
Guidance....................................................
Health services..........................................
Improvement of instruction.......................
Professional development..........................
Media services....................................
Board of Education services......................
General administration..............................
Building level administration
Business. fiscal and internal services........
Operation of plant..................
..............
Transportafion............................................
Food service......................
................
Community services..............................
Facility projects
....................
Debt Services:
Principal retirements....................
interest
Other charges...........................................
.
.
....................
.
.
.
.
.............
.
.
...............
.......................................................
Total Expenditures..................................
48.350404
.
629.
546
8.254.
588
52.741
589.496
427.138
284.578
17.156
2.076.
761
113.690
597.912
2.547.
865
856.319
4.8344
.61
879.071
1.248.
230
1.958.116
21.618.
389
28.812
123.234
822.756
2.892.863
3.715.
619
1.174.762
1.608.801
54.240.
607
1 10.500
1.321.194
3.443
191.291
43.143
829.444
51.530
272.395
359.591
1.575.
391
133.902
7.964
3.980
7.799
67.798
5.792
3.400
1.261.
161
88.243
1.W1
96
22.739.239
3.651.
854
26.156.
588
27.981.
477
52.741
1.914.133
427.138
527.399
60.299
3.178.
800
113.690
965.
467
4.127.
216
996.020
4.902.
279
879.071
1.254.
022
2.047.
759
1.2611
.81
2.355000
.
1.613.
108
1.575
625.645
12.734
2.981.646
1.625.
938
1.575
3.969.
683
2.434.
121
55.299.
631
See accompanying notes to the basic financiai statements
-18-
36.838.
887
3,293.299
635.824
945.038
2.496.
315
1.665.285
3.557.
662
280.059
48.714.
349
579.041
56.836
635.877
...................
.
366.480
Total
Governmental
Funds
kWXM?OD SCHOOL DISTRICT R-7
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS (CONTINUED)
EXCESSOFREVENUESOVER
(UNDER) EXPENDITURES
...........................
OTHER FINANCING SOURCES (USES):
....................
Transfers in (out)
Proceeds from sale of capital assets.............
Inception of capital lease.............. ..........
.................
.
.
.
Total Other Financing
Sources (Uses)...............................
General
25.61 1,165
(25,527.040)
(317,829)
(825.320)
(1,059,024)
(26.056.755)
25,527,040
297,449
232,266
5,900
587,134
5,900
587,134
825.300
593,034
-
(26,056,755)
(445.590)
.............................
19,349,470
FUND BALANCES, BEGINNING
OF YEAR ..........................
PRIOR PERIOD ADJUSTMENT.......................
Capital
Projects
-
...............
NET CHANGE IN FUND BALANCES
Debt
Service
Total
Governmental
Funds
Special
Revenue
25,527.040
(20,380)
(20)
$
-
$ 4,286,739
$
-19-
(465,990)
(292,932)
(25,949)
(266,983)
FUND BALANCES. END OF YEAR .................. $ 18,636.897
297,449
-
$ 22,923,636
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE, 30,2005
............................................................. $
NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS
(465,990)
Amounts reported for governmental activities in the Statement of ActivBes are different because:
Governmentalfunds report capital outlays as expenditures. However, in the statement
of Activities, the cost of those assets is allocated over their estimated useful lives
as depredation expense. In the current period, these amounts are:
Capital asset purchases......................................................................................................
Depreciation expense.........................................................................................................
780,251
(1,161,307)
(381,056)
Revenues in the Statement of Activities that do not provide current financiai resources
are not reported as revenues in the fund
(210,001)
Repayment of bond principal is an expenditure in the governmentalfunds, but the
repayment reduces long-term liabilities in the Statement of Net Assets...............................................................
2,355,000
In the Statement of Activities, interest is accrued on outstanding bonds and obligations
under capitai leases, whereas in Ule governmental funds, an interest expenditure
is reported when due...................
.......
...........................................................................................................
33,830
-
In the Statement of Activities, certain operating expenses compensated absences
(vacations) are measured by the amounts earned during the year. In the
government funds, however, expenditures for these items are measured by
.
............................
the amount of financial resources used (essentially, the amounts actually paid).................
7,914
Some capital additions were financed through capital leases. In governmental funds, a
capital lease arrangement is considered a source of financing, but in thestatement of
Net Assets, the lease obligation is reported as a liability......................................................................................
(587,134)
The principal payments on the capital leases are reported as expenditures in governmental
funds but the repayment in the Statement of Net Assets reduces the liability....................................................
626,646
Loss on disposed assets..........................................................................................................................................
(48,2952
.......
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES ..........
........................................................
- 20 -
$
1,330,914
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30,2005
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Kirkwood School District R-7 (the "District") operates under the
regulations pursuant to Section 162.092 RSMo of the Public School Laws of
Missouri, which designates a Board of Education to act as the governing authoriiy.
The District provides educational services.
The financial statements of the District have been prepared in conformity
with generally accepted accounting principles (GAAP) as applied to governmental
units. The Governmental Accounting Standards Board (GASB) is the accepted
standard-setting body for establishing governmental accounting and financial
reporting principles.
The basic financial statements of the reporting entity include those of the
Kirkwood School District (the primary government) and the Kirkwood School District
Educational Facilities Authority (the "Authority"). Criteria for including a potential
component unit within the reporting entity includes the governing body's abifiy to
exercise financial accountability. Financial accountability includes control or
dependence over budget adoption, taxing authority, funding and appointment of the
respective board. Based upon the application of these criteria, the Authority has
been determined to be a component unit of the District. Its purpose is to act on
behalf of the District in its acquisition, construction, improvement, extension, repair,
remodeling, renovation and financing of capital improvement projects. The financial
information of the Authority has been incorporated into the District's financial
statements using the blending method. Under the blending method, transactions of
a component unit are presented as if they were executed directly by the primary
government. Complete financial statements of the Authority are as shown in the
supplementary information following these Notes to Financial Statements.
Additionally, while the parent-teacher organizations of the District's schools
and the Kirkwood School District Foundation are organizations that provide financial
support exclusively to the District, they are not required to be included as a
component unit because the amount of financial support provided is of a de
minimus nature.
KIRt<WOOD SCHOOL DISTRICT R-7
JUNE 30,2005
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Fund Accounting
The accounts of the District are organized on the basis of legally established
funds, each of which is considered a separate accounting entity. The operations of
each fund are accounted for with a separate set of self-balancing accounts that
comprise its assets, liabilities, fund equity, revenues and expenditures. District
resources are allocated to, and accounted for, in individual funds based upon the
purposes for which they are to be spent and the means by which spending activities
are controlled. The District's policy is to close all encumbrances at the end of each
fiscal year. The following fund types are used by the District:
Governmental Funds
Governmental Funds are those through which most functions of the District
are financed. The District's expendable financial resources are accounted for
through Governmental Funds. The measurement focus is upon determination of
changes in the financial position rather than upon net income determination. The
following are the District's governmental fund types, each o f which the District
considers to be a major fund:
General Fund
This fund is the general operating fund of the District and accounts for
expenditures for noncertified employees, pupil transportation costs, operation of
plant, fringe benefits, student body activities, community services, the food service
program and any expenditures not required or permitted to be accounted for in
other funds. This fund includes the operations of the Free Textbook Fund, which
accounts for taxes collected by the State on foreign (out-of-state) insurance
companies doing business in Missouri. Expenditures are restricted to the purchase
of textbooks and related supplies.
Special Revenue Fund
A special revenue fund accounts for revenues derived from specific taxes or
other earmarked revenue sources. The Special Revenue Fund accounts for
expenditures for certified employees involved in administration and instruction, and
includes revenues restricted by the state and local tax levy allocations for the
payment of teacher salaries and certain benefits.
JUNE 30,2005
1.
Debt Service Fund
This fund is used to account for the accumulation of resources for, and the
payment of principal, interest and fiscal charges on long-term debt.
Capital Proiects Fund
This fund is used to account for the proceeds of long-term debt, taxes and
other revenues restricted for acquisition or construction of major capital assets.
Basis of Presentation
Government-wide Financial Sfatements:
The staternent of net assets and the staternent of activities present financial
information about the District as a whole. These statements include the financial
activities of the primary government. Governmental activities generally are financed
through taxes, intergovernmental revenues and other nonexchange transactions.
The government-wide statements are prepared using the economic
resources measurement focus. This differs from the manner in which governmental
fund financial statements are prepared. Governmental fund financial statements
therefore include reconciliation with brief explanations to better identify the
relationship between the government-wide statements and the statements for
governmental funds.
The statement of net assets presents the financial condition of the
governmental activities of the District at year-end. The staternent of activities
presents a comparison between direct expenses and program revenues for each
function of the District's governmental activities. Direct expenses are those that are
specificalty associated with and are clearly identifiable to a particular function.
Amounts reported as program revenues include (a) charges paid by the students for
tuition, fees, or goods and services offered by the programs and (b) grants and
contributions that are restricted to meeting the operational or capital requirements of
a particular program. Revenues not classified as program revenues are presented
as general revenues and include all property taxes. The comparison of direct
expenses with program revenues identifies the extent to which each governmental
function is self-financing or draws from the general revenues of the District.
JUNE 30,2005
1.
Basis of Presentation (continued)
Fund Financial Statements:
The fund financial statements provide information about the District's funds.
A balance sheet and statement of revenues, expenditures and changes in fund
balances are presented. The emphasis of fund financial statements is on major
governmental funds; each displayed in a separate column. The District considers
each of its funds to be major.
The accounting and reporting treatment applied to a fund is determined by its
measurement focus. All governmental fund types are accounted for using a flow of
current financial resources measurement focus. The financial statements for
governmental funds are the balance sheet, which generally include only current
assets and current liabilities, and a statement of revenues, expenditures and
changes in fund balances, which reports on the sources (i.e., revenues and other
financing sources) and uses (i.e., expenditures and other financing uses) of current
financial resources.
Measurement Focus and Basis of Accountina
Basis of accounting determines when transactions are recorded in the
financial records and reported on the financial statements. Government-wide
financial statements are prepared using the accrual basis of accounting.
Governmental funds use the modified accrual basis of accounting.
Revenues - Exchange and Non-Exchange Transactions - Revenues
resulting from exchange transactions, in which each party receives essentially equal
value, is recorded on the accrual basis when the exchange takes place. On a
modified accrual basis, revenues are recorded in the fiscal year in which the
resources are measurable and available. Available means that the resources will
be collected within the current fiscal year or are expected to be collected soon
enough thereafter to be used to pay liabilities of the current fiscal year. For the
District, available means expected to be received within sixty days of the fiscal yearend.
NOTES TO BASIC FlNANClAL STATEMENTS
JUNE 30,2005
1.
Measurement Focus and Basis of Accountina (continued)
Nonexchange transactions, in which the District receives vaiue without
directly giving value in return, include property taxes, grants, entitlements, and
donations. On an accrual basis, revenue from property taxes is recognized in the
fiscal year for which the taxes are levied. Revenue from grants, entitlements, and
donations is recognized in the fiscal year in which all eligibility requirements have
been satisfied. Eligibility requirernents include timing requirements, which specify
the year when the resources are required to be used or the fiscal year when use is
first permitted, matching requirements, in which the District must provide local
resources to be used for a specified purpose, and expenditure requirements, in
which the resources are provided to the District on a reimbursement basis. On a
modified accrual basis, revenues from nonexchange transactions must also be
available before it can be recognized.
Under the modified accrual basis, the following revenue sources are
considered to be both measurable and available at fiscal year end: property taxes
available in advance, interest, tuition, grants, student fees and rentals.
Deferred Revenue - deferred revenue arises when assets are recognized
before revenue recognition criteria have been satisfied. Property taxes not
available, grants and entitlements received before eligibility requirernents are met
are recorded as deferred revenues.
Expenses/Expenditures- On the accrual basis of accounting, expenses are
recognized at the time they are incurred. On the modified accrual. basis of
accounting, expenditures are generally recognized in the accounting period in which
the related fund liability is incurred, if measurable. Costs are not allocated between
functions.
Prowertv Taxes
Property taxes attach as an enforceable lien on property as of January 1.
Taxes are levied on November 1 and are payable by December 31. The County
collects the property tax and remits it to the District. The District believes all
property taxes are collectible; therefore, no allowance for uncollectible taxes has
been provided.
The assessed valuations of the tangible taxable property for the calendar
years 2004 and 2003 for purposes of local taxation were $903,801,870 and
$909,967,290, respectively.
JUNE 30,2005
1
Propertv Taxes (continued)
The tax levy per $100 of the assessed valuation of tangible taxable property
for the calendar years 2004 and 2003 for purposes of local taxation were:
December 31.2004
December 31,2003
General Fund..................................
Special Revenue Fund ...................
Capital Projects Fund .....................
Debt Service Fund..........................
$3.3597
$ 3.3210
0.1500
0.3630
0.1820
0.3680
Total ................................................
$3.872Z
$3.8710
--
--
The receipts of current and delinquent property taxes during the fiscal year
ended June 30, 2005, aggregated approximately 100% of the current assessment
computed on the basis of the levy as shown above.
Pooled Cash and Temoorarv Investments
Cash resources are combined to form a pool of cash and temporary
investments which is managed by the District Treasurer, except resources from the
Debt Service Fund, as state law requires these deposits to be separately
maintained.
The District may invest in United States Treasury-bills, notes, bonds,
government agency and instrumentality obligations, repurchase agreements
collateralized by government securities, time certificates of deposit, bankers'
acceptances issued by domestic commercial banks and commercial paper issued
by domestic corporations.
Investments of the pooled accounts consist of a repurchase agreement and
certificates of deposit. These investments are carried at cost, which approximates
fair value.
Interest income earned is allocated to contributing funds based on each
funds' proportionate share of funds invested.
JUNE 30,2005
1.
Prewaid ltems
Payments made to vendors for services that will benefit periods beyond
June 30, 2005, are recorded as prepaid items using the consumption method. A
current asset for the prepaid amount is recorded at the time of the purchase and
an expenditure /expense is reported in the year in which services are consumed.
Inventory
Inventories are stated at cost, which approximates market on a first-inlfirst
out (FIFO) basis. The District uses the purchase method of accounting for
inventory. ltems purchased are recorded as expenditures when purchased with
the expenditure being adjusted at year end depending on the change in inventory
level.
Ca~italAssets
Capital assets result from expenditures in the governmental funds. These
assets are reported in the governmental activities column of the government-wide
statement of net assets but are not reported in the fund financial statements.
All capital assets are recorded at cost (or estimated historical cost) and
updated for additions and retirements during the year. Donated fixed assets are
recorded at their fair market values as of the date received. The District maintains
a capitalization threshold of five thousand dollars for financial reporting purposes.
The District does maintain an inventory of removable electronic equipment with a
useful life of two years for tracking purposes. The District does not possess any
infrastructure.
The costs of normal maintenance and repairs that do not add value to the
asset or materially extend the asset's Fie are not capitalized.
Major outlays for capital assets and improvements are capitalized as
projects are constructed and placed in service. Improvements are depreciated
over the remaining useful lives of the related capital assets. Interest incurred
during construction is not capitalized. Except for land, all reported capital assets
are depreciated. Depreciation is calculated using the straight-line method over the
following useful lives:
Assets
Land improvements
Buildings
Machinery and equipment
Years
15-20
40
5-20
JUNE 30,2005
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continu&)
Compensated Absences
Vacation time earned but unused at year end has been recorded as an
expenseiexpenditure in the government-wide financial statements. In accordance
with GASB Interpretation 6, no liability is required to be reported in the govemmental
fund level financial statements.
Sick leave is considered an expenditure in the year paid. Amounts which are
unused and vested in the employee are payable upon retirement, but are forfeited
upon any other type of termination. The amount of unpaid sick leave subject to
accrual which is not included in the accompanying financial statements has not
been determined; however, the District considers the amount to be immaterial.
Restricted Cash and Investments
Restricted cash and investments represent amounts whose use is limited by
legal requirements and consist of amounts escrowed for future general obligation
bond principal and interest payments in conjunction with the Missouri School District
Direct Deposit Program as discussed in Note 2 and Note 4.
Accrued Liabilities and Lona-term Obliaations
All payables, accrued liabilities and long-term obligations are reported in the
government-wide financial statements.
In general, payables and accrued liabilities that will be paid from
governmental funds are reported on the governmental fund financial statements
regardless of whether they will be liquidated with current financial resources.
However, special termination benefits that will be paid from governmental funds are
reported as a liability in the fund financial statements only to the extent that they will
be paid with current, expendable, available financial resources. In general,
payments made within sixty days after year end are considered to have been made
with current available financial resources. Bonds, capital leases and other long-term
obligations that will be paid from govemmental funds are not recognized as a liability
in the fund financial statements until due.
JUNE 30,2005
1.
Fund Balance Reserves
The District reserves those portions of fund equity legally segregated for a
specific future use or which do not represent available expendable resources and
therefore are not available for appropriation or expenditure. Unreserved fund
balance indicates that portion of fund equity that is available for appropriation in
future periods. Fund equity reserves have been established for inventory, prepaid
items, debt service and capital projects balances.
Net Assets
Net assets represent the difference between assets and liabilities. Net
assets invested in capital assets, net of related debt, consists of capital assets, net
of accumulated depreciation, reduced by the outstanding balances of any
borrowings used for the acquisition, construction, or improvement of those assets.
Net assets are reported as restricted when there are limitations imposed on their
use either through the enabling legislation adopted by the District or through
external restrictions imposed by creditors, grantors or laws or regulations of other
governments. The District applies restricted resources first when an expense is
incurred for purposes for which both restricted and unrestricted net assets are
available.
lnterfund Act'~itv
lnterfund transfers are reported as other financing sourcesluses in
governmental funds.
Repayments from funds responsible for particular
expenditureslexpenses to the funds that initially paid for them are not presented on
the financial statements.
During the current year, transfers were made from the General Fund to the
Special Revenue Fund and Capital Projects Fund to zero out the Special Revenue
Fund and make a GTBlLine 1 transfer to the Capital Projects Fund.
Extraordinary and S~ecialItems
Extraordinary items are transactions or events that are both unusual in
nature and infrequent in occurrence. Special items are transactions or events that
are within the control of the Board of Education and that are either unusual in nature
or infrequent in occurrence. Neither type of transaction occurred during the fiscal
year ended June 30,2005.
JUNE 30,2005
1.
Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results may differ from those
estimates.
2.
CASH AND INVESTMENTS
The District is governed by the deposit and investment iimitations of state
law. The depository bank is to pledge securities in addition to Federal Deposit
Insurance Corporation (FDIC) insurance at least equal to the amount on deposit at
all times in accordance with sections 110.010 and 110.020 of the Missouri Revised
Statutes.
The District may invest the funds in bonds or any instrument permitted by
law for the investment of state money's in accordance with section 165.051 of the
Missouri Revised Statutes. The District participates in the Missouri Direct Deposit
Program which is a mechanism for public school bond repayments through the
MOHEFA Bond Program. It authorizes the direct deposit of a portion of the school
district's state aid payment by the State of Missouri to a trustee bank that
accumulates these payments and then makes the principal and interest payments
to the paying agent on the bonds. The direct deposits occur monthly and the
balance withdrawn every six months to pay the debt service requirement of the
related bond issues. At June 30, 2005, the District had $1,453,566 in this
program, which has been included in deposits.
The District also participates in the Missouri Securities investment Program
(MOSIP). MOSIP is an external investment pool where a District's monies are
pooled with other Districts' monies to purchase investments that are permitted by
state statutes. The District's monies purchase a pro-rata share of the pool. A
board of directors comprised of Missouri school administrators, school board
members, and school business officials provides governance and oversight of
MOSIP's operations. The board seeks to maintain a stable net asset value of $1
per share.
The deposits and investments held at June 30, 2005, and reported at cost,
are as follows:
JUNE 30,2005
2.
CASH AND INVESTMENTS (continued)
Tvwe
Maturities
Deposits:
Demand deposits ...................................
Money Markets ......................................
Cetiicate of deposits ............................
MOHEFA Bond Program .......................
Investments:
FNMA Callable Bond .............................
Money Market Mutual Funds .................
External investment pool .......................
Total Deposits and Investments....
Carrying
Value
Various
11/01/07
1 year
.c
=$2&4X335_32
Reconciliation to financial statements:
Current:
Cash and investments...........................
Cash and investments - restricted .........
Other overdraft.......................................
-
-
Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event
of a bank failure, the district's deposits may not be returned to it. The District does
not have a deposit policy for custodial credit risk. As of June 30, 2005, $684,094
of the District's bank balance of $26,490,560 was exposed to custodial credit risk,
as follows:
Collateralized with securities held by
the pledging financial institution ..............................$684,094
-
-
Custodial Credit Risk lnvesfmenfs Investment securities are exposed to
custodial credit risk if the securities are uninsured, are not registered in the name
of the government, and are held by the party who sold the security to the district or
its agent but not in the government's name. All investments, evidenced by
individual securities, are registered in the name of the District or of a type that are
not exposed to custodial credit risk.
JUNE 30,2005
2.
CASH AND INVESTMENTS (continued)
-
Investment interest Rate Risk The District has no formal investment policy that
limits investment maturities as a means of managing its exposure to fair value
losses arising from increasing interest rates. Maturities of investments held at June
30,2005 are provided in the schedule above.
-
lnvesfment Credit Risk The District has no investment policy that limits its
investment choices other than the limitation of state law, as documented above.
At June 30,2005, the District's investments were rated as follows:
Description
FNMA Callable Bond
Money Market Mutual Funds
Extemal investment pool
Financial
Institution
Amount
U.S. Bank
Tax Managed Fund
MOSIP
$992,800
168,533
97,049
AAA
Aaa
AAA
-
Concenfration of Investment Credit Risk Concentration of credit risk is
required to be disclosed by the District for any single investment that represents
5% or more of total investments (excluding investments issued by or explicitly
guaranteed by the US Government, investments in mutual funds, investments in
external investment pools and investments in other pooled investments).
The District does not have a policy on limiting the amount it may invest in
any one issuer. At June 30, 2005, the District had the following investments that
were more than 5% of the District's total investments:
Descriation
FNMA Callable Bond
Concentration
79%
NOTES TO BASIC FINANCIAL STAEMENTS
JUNE 30,2005
3.
CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2005, was as
follows:
Beginning
Balance
July 1, 2004
Capital Assets Not Being Depreciated:
Land .................................................................... $
Construction In progress ............... ,....
................
Total Capital Assets, Not Being Depreciated .........
Capital Assets, Being Depreciated:
Land Improvements:
Land Improvements .......
...........................
.
.
.
.
535,139
Dis~osals/
~ransfers
Additions1
Transfers
$
$
$
369,826
369,826
535,139
Ending
Baiance
June 30. 2005
1,445,914
535,139
369,826
904,965
1,445,914
Buiidings:
Building Components ............................................. 26,283,445
69,070
(38,323)
26,314,192
Equipment:
Machinery & Equipment
......................................... 10,863,935
. .
Vehicle .................. .
............................................
10,663,935
328,255
13,100
341,355
(193,180)
(193,180)
10,999,010
13,100
11,012,110
Total Capital Assets, Being Depreciated ...............
38,593,294
410,425
(231,503)
38,772,216
1,212,656
48,206
15,318,722
411,639
(38,323)
65,692,038
3,216,743
(144,885)
3,216,743
699,715
1,747
701,462
(144,885)
3,771,573
1,747
3,773,320
Totai Accumulated Depreciation............................
19,748,121
1,161,307
(163,208)
20,726.220
Total Capital Assets, Being Depreciated, Net........
18,845,173
(750,882)
(48,295)
18,045,996
(48,295)
$ 18,950,961
Accumulated Depreciation
Land and improvemenfs:
Land improvements ..............................................
Buildings:
Buiiding Components ......................................
Equipment;
Machinery & Equipment..................................
Vehicle ..................................................................
Capital Assets, Net of Accumulated
, .
Depreclatlon ...................................................
$ 19,380,312
$
(381,056)
1,260,862
'
$
Depreciation was charged to functions of the District as follows:
Instruction ..................................$
Media services ...........................
Community services ..................
Food service ..............................
Operation of plant ......................
829,142
30,082
113,892
46,896
141,295
JUNE 30,2005
4.
CHANGES IN LONG-TERM LIABILITIES
Chanaes in Lona-Ten Liabilities
A summary of changes in long-term liabilities (excluding the Kirkwood School
District Facilities Authority leasehold revenue bonds) for the year ended June 30,
2005 is as foliows:
Balance
July 1,
2004
Bonds payable................. $33,550,000
~a~ital'lease
obligations .....................
680,780
Compensated
absences (vacation)......
579.538
Total ...........................
BLWO0318
Additions
Deductions
Balance
June 30,
2005
Amounts
Due Within
One Year
--
$2,100.000
$31,450.000
$2,320.000
587,134
626,646
641,268
353,520
487,330
495,244
571,624
485.880
$
-$
$3621890
$a-
$3.159.4QQ
Payments on the general obligation bonds are made by the debt service
fund. The obligations under capital leases are paid by the capital projects
fund. The compensated absences (vacation) will be paid by the fund in
which the employee worked.
Bonds Pavable
Bonds payable at June 30, 2005 consist of:
$5,000,000, general obligation capital
expansion bonds issued on July 15,1996;
due in varying annual installments through
February 15,2014; interest at a variable
rate ranging from 4% to 5.25% and is
payable on February 15 and August 15
of each year ...............................................................
$5,800,000 general obligation capital
expansion bonds issued on November
I,1997; due in varying annual installments
through February 15,2014; interest at a
variable rate ranging from 4.25% to 7.25%
and is payable on February 15 and August
15 of each year ..............................................
$ 4,240,000
JUNE 30,2005
4.
CHANGES IN LONG-TERM LIABILITIES (continued)
Bonds Pavable (continued)
$18,420,000 general obligation refunding
bonds issued on January 15,1999;
due in varying installments through
February 15, 2014; interest at a
variable rate ranging from 3.05% to 5.00%
and is payable on February 15 and August
15 of each year........................................................
15,080,000
$11,255,000 general obligation refunding
and improvement bonds issued on
January 15,2001; due in varying
installments through February 15, 2016;
interest at a variable rate ranging fmm
3.35% to 4.875% and is payable on
February 15 and August 15 of each year..
Total bonds payable at June 30, 2005 ..............
&&&5=
The annual requirements to amortize bonded debt outstanding as of June
30, 2005, is as follows:
Year Ending
June 30.
Princi~al
Total .................... $314
.500
.&3
Interest
Total
$40.108.730
JUNE 30,2005
4.
GENERAL LONG-TERM LIABILITIES (continued)
Bonds Pavable (continued)
Repayment of the Series 1999 and 2001 bond issues are made through the
Missouri School District Direct Deposit Program which is a mechanism for public
school bond repayments. It authorizes the direct deposit of a portion of the school
distrid's state aid payment by the State of Missouri to a trustee bank that
accumulates these payments and then makes the principal and interest payments
to the paying agent on the bonds.
The District has $1,453,566 on deposit with Commerce Bank Investment
Management Group in conjunction with this program, as discussed in Note 2.
Leaai Debt Marain
Article VI, Section 26(b), Constitution of Missouri, limits the outstanding
amount of authorized general obligation bonds of a District to fifteen (25%) percent
of the assessed valuation of the District (including State assessed railroad and
utility). The legal debt margin, computed excluding the assessed valuation of State
assessed railroad and utilities, of the District at June 30, 2005, was:
Constitutional debt limit .........................................
General obligation bonds payable ........................
Amount available in Debt Service Fund................
$135,570,281
(31,450,000)
4.286.739
Legal Debt Margin .................................................
$i2Q&&iua
Defeased Debt
In prior years, the District issued general obligation bonds to refund certain
outstanding bonds. This resulted in a debt defeasance of the District's outstanding
bonded debt and the bonds defeased were removed from the District's general
long-term debt. During the year ended June 30, 2005, the entire amount of
defeased debt was paid in full.
JUNE 30,2005
4.
GENERAL LONG-TERM LIABILITIES (continued)
Ca~italLeases
The District leases certain equipment under agreements classified as capital
leases for the purchase of computer equipment and copiers. The cost for such
equipment as of June 30, 2005 was approximately $1,171,477 and the accumulated
depreciation was $67,330.
The following is a schedule of: future minimum lease payments under the
capital leases together with the present value of the net minimum lease payments
as of June 30,2005:
Year Endinq June 30,
Total future minimum lease payments......
676.136
Less amount representing interest ...........
(34,868)
Present value of future
minimum lease payments ..........................
$ 641.268
The Kirkwood School District adopted a resolution approving the formation of
the Kirkwood School District Educational Facilities Authority (the "Authority") on
February 19, 2002. The Authority is organized under the not for profit provisions of
Chapter 355, revised statutes of Missouri (1986) as amended, for the purpose of
acting on behalf of the Kirkwood School District (the "District") in its acquisition,
construction, improvement, extension, repair, remodeling, renovation and financing
of capital improvement projects, and other purposes as specified in the Authority's
Articles of Incorporation.
JUNE 30,2005
5.
KIRKWOOD SCHOOL DISTRICT EDUCATIONAL FACILITIES AUTHORITY
(continued)
On April 1, 2002, the District leased to the Authorii the Kirkwood Early
Childhood Center in exchange for issuing bonds. The District also authorized the
Authority to issue $1,665,000 principal amount of Insured Leasehold Revenue
Bonds ("2002 Bonds").
*
The District executed a lease agreement dated April 1, 2002 between the
Authority and the District under which the Authority will lease the Kirkwood Early
Childhood Center to the District. The term of the lease expires on April 2, 2012.
Rental payments will be determined annually based on the amount of monies
necessary for the payment of bond principal and interest on the 2002 Bonds when
due, less amounts held by the Authority in its Bond Fund and Bond Reserve Fund.
The District is also obligated to make additional payments for costs specmed in the
lease agreement. The Authority has agreed to convey to the District title to the
Kirkwood Early Childhood Center at the expiration of the lease term following full
payment of the 2002 Bonds.
The following is a summary of bond transactions for the year ended June
30,2005:
Bonds payable, July 1, 2004 .............................
Bonds issued.....................................................
Bonds retired .....................................................
$995,000
~ o n d payable,
s
June 30, 2005 .........................
$740.000
--
255.000
The following are the annual debt service requirements of the 2002 Bonds:
Principal
Total. ............................
$--74.000
Interest
Total
JUNE 30,2005
5.
KIRKWOOD SCHOOL DISTRICT EDUCATIONAL FACILITIES AUTHORITY
(continued)
The 2002 Bonds mature in varying amounts through April 1, 2012, and
carry rates of interest at 4.55%.
As discussed in Note 1, the Authority has been determined to be a
component unit of the District under criteria established by current governmental
accounting standards. In accordance therewith, the Authority's debt and assets
have been reported as a form of the District's debt and assets in the
accompanyingfinancial statements.
6.
RETIREMENT PLANS
The District contributes to the Public School Retirement System of Missouri
(PSRS), a cost-sharing multiple-employer defined benefit pension plan. PSRS
provides retirement and disability benefits to full-time (and certain part-time)
certified employees and death benefits to members and beneficiaries. Positions
covered by the PSRS are not covered by Social Security. PSRS benefit provisions
are set forth in Chapter 169.010-.I41 of the Missouri Revised Statutes. The
statutes assign responsibility for the administration of the system to a seven
member Board of Trustees. PSRS issues a publicly available financial report that
includes financial statements and required supptementary information. That report
may be obtained by writing to: The Public School Retirement System of Missouri,
P.O. Box 268, Jefferson Ci,Missouri 65102, or by calling 1-800-392-6848.
PSRS members are required to contribute 11% of their annual covered
salary and the District is required to contribute a matching amount. The
contribution requirements of members and the District are established and may be
amended bv the PSRS Board of Trustees. The District's contributions to PSRS for
the years ehded June 30, 2003 through June 30, 2005 were equal to the required
contributions and are as listed in the table below.
The District also contributes to The Non-Teacher School Employee
Retirement System of Missouri (NTRS), a cost-sharing multiple-employer defined
benefit pension plan. NTRS provides retirement and disability benefits to
employees of the district who work 17 or more hours per week and who do not
contribute to PSRS. Positions covered by NTRS are also covered by Social
Security. Benefit provisions are set forth in Chapter 169.600-.715 of the Missouri
Revised Statutes. The statutes assign responsibility for the administration of the
system to the Board of Trustees of PSRS. NTRS issues a publicly available
financial report that includes financial statements and required suppiementary
information. That report may be obtained by writing to: The Non-Teacher School
Employee Retirement System of: Missouri, P. 0. Box 268, Jefferson City, Missouri
65102 or by calling 1-800-392-6848.
JUNE 30,2005
6.
RETIREMENT PLANS (continued)
NTRS members are required to contribute 5.25% of their annual covered
salary and the District is required to contribute a matching amount. The contribution
reauirements of members and the District are established and may be amended by
the' Board of Trustees. The District's contributions to NTRS for-the years ended
June 30, 2003 through June 30, 2005 were equal to the required contributions and
are as listed in the table below:
Year Ended June 30,
7.
PSRS
NTRS
EMPLOYEE BENEFIT PLANS
The District offers its employees a tax-sheltered annuity program created in
accordance with lntemal Revenue Code Section 403(b). The plan, available to all
District employees, permits them to defer a portion of their salary for investment
purposes.
The District also offers a Section 125 cafeteria plan to all employees. Under
this plan, the deferred portion can be used to purchase health insurance benefb.
In addition, the District offers a Section 457 Deferred Compensation Plan
that is offered to all employees. This plan is an investment program to enhance
retirement benefks similar to the 403(b) plan. In order to take advantage of tax
savings, it is funded through jointly owned lie insurance.
8.
INSURANCE PROGRAM
The District, along with various other local school districts, participates in the
Missouri United School Insurance Council ("MUSIC"), an insurance association for
workers' compensation, general liability and property and casualty insurance. The
purpose of MUSIC is to distribute the cost of self-insurance over similar entities.
MUSIC requires an annual premium payment to cover estimated ciaims payable
and reserves for claims from each entity. The members of MUSlC have no legal
interest in the assets, liabilities, or fund balances of the insurance
JUNE 30,2005
8.
INSURANCE PROGRAM (continued)
association. However, the District retains a contingent liability to fund its pro rata
share of any deficit incurred by MUSIC should it cease operations at some future
date. The District's premium payments to MUSIC during the year ended June 30,
2005 were $632,618. Settled claims have not exceeded insurance coverage in
any of the past three years.
The District has adopted a self-insured medical plan to cover substantially
all employees in the District.
Liabilities are recorded when it is probable that a loss has occurred and the
amount of loss can be reasonably estimated. Liabilities include an amount for
claims that have been incurred but not reported (IBNR). Claim liabilities are
calculated based upon recent claim settlement trends. Changes in the balance of
claims liabilities during the past two years are as follows:
9.
SELF-INSURANCE PLAN
June 30,2005
Unpaid claims, beginning of year ..... $
192,152
Incurred claims (including IBNRs)....
3,289,945
(3,188,832)
Claim payments..............................
June 30,2004
$
300,000
3,262,487
(3,370,335)
u l z
Unpaid claims, end of year .........
In addition, the District carries insurance to protect from any excessive
liabilities that could result from medical claims that are incurred. The District
carries insurance for any employee's claims exceeding $100,000 per year.
10.
COMMITMENTS AND CONTINGENCIES
The District is obligated under operating leases for office equipment. Rental
for these leases was approximately $35,000 for the year ended June 30, 2005.
Future minimum lease payments are as follows:
Total Minimum Lease Payments ........
$2&22%
JUNE 30,2005
10.
COMMITMENTS AND CONTINGENCIES (continued)
The District has been notified by the County that taxes that were protested
by commercial entities have been awarded to those entities. The protested taxes
amount to a total of approximately $500,000 for the tax years 2002, 2003 and
2004 and will be deducted from the District's December or January tax payment
from the County. A liability has been recorded in the fund financial statements and
government-wide financial statements for this amount. The District plans to recoup
a portion of this loss by increasing the 2005-2006 tax levy.
II. POST EMPLOYMENT BENEFITS
In addition to the pension benefits described in Note 6, the District allows
employees who retire from the District to participate in the District's health, dental
and iife insurance plans. Upon meeting the retirement requirements per PSRS or
NTRS, the employees can elect to participate in the District's plans. The retirees
must pay for 100% of their coverage for each plan in which they elect to
participate.
12.
NEW ACCOUNTING PRONOUNCEMENTS
GASB Statement No. 45, Accounfing and Financial Reporting For Ofher
Posf Employmenf Benefifs (OPEB) issued June 2004 will impose new standards
for the recognition of post employment benefits other than pension benefk The
statement mandates that the District account for the implicit subsidy costs related
to retiree health, dental and iife insurance. Rather than recognizing the expense
associated with the post employment benefits when they are paid by the District,
the District will have to recognize the cost over the working lifetimes of the
employees. This statement will be effective for the District for the fiscal year
ending June 30, 2009. Management of the District has not yet completed its
assessment of the statement; however, compliance with this statement may have
a material effect on the District's financial statements prepared in accordance with
accounting principals generally accepted in the United States of America.
13.
SUBSEQUENT EVENTS
Subsequent to June 30, 2005, the District issued $7,850,000 General
Obligation Refunding Bonds, Series 2005A, for the purpose of providing funds to
advance refund a portion of the District's General Obligation Bonds, Series 1996
and Series 1997. The interest rate on the refunding bonds range from 3.00-5.00
percent and the maturity date is February 15,2014.
JUNE 30,2005
13.
SUBSEQUENT EVENTS (continued)
Subsequent to June 30, 2005, the Facilities Authority issued $30,335,000
Leasehold Revenue Bonds, Series 2005B, for renovations to various schools.
The Bonds are payable solely from rental payment to be made by the District
pursuant to an annually renewable Lease Agreement Dated August 1, 2005. The
leased property includes 43.5 acres upon which the District's Kirkwood Senior
High School campus is situated. The interest rate on the leasehold revenue bonds
range from 3.25-5.00 percent and the maturity date is February 15,2025.
On June 29, 2005, the District entered into a lease agreement for copiers
that is classified as a capital lease. The lease requires 60 monthly payments of
$4,752.
14.
PRIOR PERIOD ADJUSTMENTS
Beginning fund balances and beginning net assets were adjusted as
follows:
-
Fund Financial Statements Govemmental Funds:
To record a liability for the 2002
and 2003 protested taxes ...............
General
Debt
Service
$1286,983)
$ (25,949)
Government-Wide Financial Statements - Govemmental Activities:
Net assets, as originally reported.....
To record a liability for the 2002
and 2003 protested taxes..............
Net Assets, Beginning of Year,
Restated....................................
$7,513,298
(292.932)
=-3fit
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL (BUDGETARY BASIS) - GENERAL FUND - UNAUDITED
BudgetedAmounts
Original
Final
..-.-..---.
Local..............................................................
County..............................................................
$
Total Revenues..........................................
EXPENDITURES:
Current:
.
.
Improvement of instruction................
.....
Professional development............................
Media services........... .
.
............................
Board of Education services..........................
Executive administration...............................
Building level administration.......................
Business, fiscal and internal services............
Operation of plant.......................... .
.
.........
Pupil transportation...................................
43,329,783
460,000
2,546,165
597,613
$
i
i
I
44,133,424
460,823
3,449,113
746,536
46,933,561
48,789,896
6,802.984
55,500
584,303
441,052
324,590
7,019,473
60,500
626,533
449,951
298,489
11,282
2,339,703
137,157
632,617
2,600,379
908,189
5,637,282
856,826
1,310,242
2,230,512
1,958,746
138,157
1,089,924
2,636,221
954.943
5,391,996
833,574
1,310,242
2,228,487
Debt Services:
.
.
.....................
Principal retirements.......... .
interes
1
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
1,001
96
Total Expenditures.....................................
24,750,719
25,120.212
.....
(UNDER) EXPENDITURES..................
.
.
.
22,182,842
23,669,684
26,294,031
Transfers in (out)..............................................
(25,503,766)
(25,503,766)
(25,752,883)
(249,117)
Total Other Financing Sources (Uses) .......
(25,503,766)
(25,503,766)
(25,752,683)
(249.1 17)
NET CHANGE IN FUND BALANCE....................
(3,320,924)
(1,834,082)
541,148
FUND BALANCE, BEGINNING OF YEAR...........
18,171,082
18,171,082
FUND BALANCE, END OF YEAR.......................
$
14,850,158
$
16,337,000
2,376,230
18,171,082
$
See accompanying independent auditors' report and
notes to required supplementary information
-44-
2,624,347
18,712,230
$
2,375,230
SCHEDULE OF RWENUES, EXPENDITURES AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL (BUDGETARY BASIS) - SPECIAL REVENUE FUND - UNAUDITED
Budgeted Amounts
Original
Final
REVENUES:
Local..............................................................
County............................................................
State.................................................................
.... .....................................
Federal................
$
200,000
36,767
517,886
455,834
$
200,000
56,767
Variance with
Final Budaet
positive"
(Negative)
Actual
Amounts
$
250,022
55.836
$
50.022
69
484,659
366,480
(118,179)
Total Revenue
EXPENDITURES:
Current:
..................................
Building level administration..........................
Business, fiscal and internal services............
Community' services ......................................
Total Expenditures.....................................
(UNDER) EXPENDITURES............................
(25,324,312)
(26,336,889)
(25,479,759)
857,130
Transfers in (out) ..............................................
25,336,532
25,336,532
25,479,759
143,227
Total Other Financing Sources (Uses) .......
25,336,532
25,336,532
25,479,759
143,227
12,220
(1,000.357)
1,000,357
FUND BALANCE, BEGINNING OF YEAR ...........
FUND BALANCE, END OF YEAR .......................
$
12,220
$
(1,000,357)
$
See accompanying independent auditors' report and
notes to required supplementary information
-45-
$
1,000,357
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30,2005
1.
Budaets and Budaetaw Accounting
The District follows these procedures in establishing the budgetary data
reflected in the financial statements:
1.
In accordance with Chapter 67 RSMo, the District adopts a budget
for each fund.
2.
Prior to July, the Superintendent, who serves as the budget officer,
submits to the Board of Education a proposed budget for the fiscal
year beginning on the following July I. The proposed budget
includes estimated revenues and proposed expenditures for all
District funds. Budgeted expenditures cannot exceed beginning
available monies plus estimated revenues for the year.
A deficit was budgeted in the special revenue fund for the fiscal year
ended June 30, 2005, as a wsult of the amendments made during
the year.
3.
A public hearing is conducted to obtain taxpayer comments. Prior to
its approval by the Board of Education, the budget document is
available for public inspection.
4.
Prior to July 1, the budget is legally enacted by a vote of the Board of
Education.
5.
Subsequent to its formal approval of the budget, the Board of Education has the authority to make necessary adjustments to the budget
by formal vote of the Board. Adjustments made during the year are
reflected in the budget information included in the financial statements.
Budgeted amounts are as originally adopted on June 15, 2004.; or as
amended by the Board of Education on July 18,2005.
6.
Budgets are adopted on the cash basis of accounting.
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30,2005
2.
Adiustments to Convert Budaetarv Basis to Modified Accrual Basis
The following is a reconciliation of the adjustment necessary to convert from
the budget basis to the modified accrual basis:
General
Fund
Special
Revenue
Fund
Debt
Service
Fund
Capital
Projects
Fund
Excess of Revenues Over (Under)
Expenditures, Budgetary Basis ......... $26,294,031 $ (25,479,759)
942,407
-Taxes and other receivables ...............
-Inventory..............................................
296,151
Prepaid items.......................................
383,601
461,070
Accrued expenses, salaries
taxes and compensated
(201,831)
(81,884)
absences ...........................................
(466,055)
(9,541)
Accounts payable ................................
Medical and dental benefits payable ...
(293,265)
-Deferred tax revenue...........................
(722,702)
(43,790)
(176,990)
-Property taxes payable........................
-Unrealized loss on investments...........
(16,783)
Inception of capital lease .....................
--Lease payment tolfrom facilities
authority .............................................
--Interest income from facilities
-authority .............................................
Reverse June 30, 2004 accruals .........
(427.399)
(373.136)
-
Excess of Revenues Over (Under)
Expenditures, Modified Accrual
Basis...............................................
) .$25.61
oL . . .1..I65
....
u a )
The above schedule does not include the activity of Kirkwood School District
Educational Facilities Authority.
ADDITIONAL SUPPLEMENTARY INFORMATION
COMBINING BALANCE SHEET DEBT SERVICE FUND BY COMPONENT UNIT
JUNE 30,2005
Kirkwood
School
District
Kirkwood
School District
Educational
Facilities
Authority
Total
- - ASSETS - Cash and investments........................................$ 2,679,755
Cash and investments - restricted......................
1,453,566
Receivables:
77,065
Taxes...............................................................
Interest.............................................................
12,133
$
TOTAL ASSETS...............................................
$
$ 4,222,519
168,533
$ 2,679,755
1,622,099
77,065
12,133
w
168,533
$ 4,391,052
- - LIABILITIESAND FUND BALANCES - LIABILITIES:
Deferred revenue......................................... $
Property taxes payable.....................................
60,860
43,453
Total Liabilities.............................................
104,313
FUND BALANCES:
Fund balances:
Reserved for debt service..............................
4,118,206
168,533
4,286,739
Total Fund Balances...................................
4,118,206
168,533
4,286,739
168,533
$ 4,391,052
TOTAL LIABILITIES AND FUND BALANCES.... $ 4,222,519
$
-
-
$
$
60,860
43,453
104,313
COMBINING BALANCE SHEET CAPITAL PROJECTS FUND BY COMPONENT UNIT
JUNE 30,2005
Kirkwood
School
District
Kirkwood
School District
Educational
Facilities
Authority
Total
- - ASSETS - Cash and investments........................................
Receivables:
.
...........................................
Taxes.. ............. .
Other................................................................
Prepaid items.................................................
$ 294,969
TOTAL ASSETS................................................
$ 333,601
$ 308,452
25,149
-
$ 294,969
-
31,845
2,873
3,914
$
-
$ 333,601
$
-
$ 308,452
25,149
-
333,601
$
31,845
2,873
3,914
%
- - LIABILITIES AND FUND BALANCES - LIABILITIES:
Accounts payable............................................
Deferred revenue...........................................
...
Total Liabtlities...............................................
333,601
I
FUND BALANCES:
Resewed for capital projects............................
-
-
Total Fund Balances...............;.....................
-
-
'I
Ii
TOTAL LIABILITIES AND FUND BALANCES....
$ 333,601
$
-
$ 333,601
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - DEBT SERVICE FUND BY COMPONENT UNIT
Kirkwood
School
District
REVENUES:
Local..............................................................
$
County................ .....................................
Leaselpurchase payments from
the District...........
................................
.
.
.
.
.
3,570,340
80,069
Kirkwood
School District
Educational
Facilities
Authority
$
1.445
Total
Eliminations
$
-
297,429
(297,429)
(297,429)
$
3,571,785
80,069
Total Revenues.........................................
3,650,409
298,874
EXPENDITURES:
Debt service:
Principal retirements...................................
interest.........................................................
Other charges.............................................
2,100,000
1,570,679
1,575
255,000
42,429
2,355,000
1,613,108
1,575
3,672,254
297,429
3,969,683
Total Expenditures...............
(UNDER) EXPENDITURES......
.
.
........
(21,845)
Transfers in (out) ............................................
Total Other Financing Sources (Uses)........
NET CHANGE IN FUND BALANCES................
FUND BALANCES, BEGINNING OF YEAR ......
.
.
....
PRIOR PERIOD ADJUSTMENT.........
FUND BALANCES, END OF YEAR ................... $
3,651,854
1,445
(297,429)
(317,829)
20
297,429
297,449
20
297,429
297,449
(21,845)
1,465
4,166,000
167,068
(20,380)
4,333,068
(25,949)
4,118,206
(25,949)
$
168,533
$
-
$
4,286,739
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND BY COMPONENT UNIT
-
Kirkwood
School District
Educational
Facilities
Authority
Kirkwood
School
District
REVENUES:
$
....................................................................
1,456,755
28.612
123,234
1,608,801
5
Eliminations
-
$
-
Total
$
1,456,755
28,812
123,234
1,608,801
EXPENDITURES:
Current
.....................................
Building level administration.............................
Business, fiscal and internal services.....................
Operation of plant
Food services...............
.....
...................
Community se~ices
............ .........................
Facility projec
Debt service:
Leaselpurchase payments to the Authority............
Principalretirements.......
.
.
....................
Interest.................
.........................................
Total Expenditure
.
.
.
.
.
.
(UNDER) EXPENDITURES.................................
Transfers in (out).............. ..............................
Proceeds from sale of capital asset................
IncepUon of capital lease.............. ...................
Total Other FinancingSources (Uses)................
.
.
.
.
110,500
3,443
51,530
272,395
7,964
3,960
7,799
67,798
5,792
3,400
1,261,161
110,500
3,443
51,530
272,395
7,964
3,960
7,799
67,798
5,792
3,400
1,261,161
297,429
625,645
12,734
2,731,550
(297,429)
(1,122,749)
297,429
(825,3201
(20)
(297,429)
(20)
(297,429)
232,266
5,900
587,134
825,300
625,645
12,734
2,434,121
(297,429)
529,715
5,900
587,134
1,122,749
NET CHANGE IN FUND BALANCES....................
(20)
(20)
FUND BALANCES, BEGINNING OF YEAR ..............
20
20
FUND BALANCES, END OF YEAR ........................... $
-
$
-
5
-
5
SCHEDULE OF REVENUES, EXPENDITURESAND CHANGE IN FUND BALANCE BUDGET AND ACTUAL (BUDGETARY BASIS) - DEBT SERVICE FUND
Budgeted Amounts
Originai
Final
REVENUES:
Local.................................................................
County................. .......................................
.
.
Total Revenues...........................................
EXPENDITURES:
Debt Services:
Principal retirements............................. ............
Interest.....................
.....................................
Other charges.......................... .
......................
Total Expenditures.........................................
(UNDER) EXPENDITURES.........................
Transfers in (out)..............................................
Total Other Financing Sources (Uses)..........
FUND BALANCE. END OF YEAR .......................
This schedule does not include the activity of the
Kirkwood School District Educational Authority
- 52 -
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
SCHEDULE OF REVENUES, EXPENDITURESAND CHANGE IN FUND BALANCE BUDGET AND ACTUAL (BUDGETARY BASIS) - CAPITAL PROJECTS FUND
FOR THE FISCAL YEXR ENDED JUNE 30,2005
Actual
Amounts
Budgeted Amounts
Original
Final
Variance with
Final Budaet
~ositivg
(Negative)
REVENUES:
Lo@ ......................... .
.....................................
County............................................................
State..................
.
...........................................
Federal............ .
..............................................
Totai Revenues............
.
.........................
EXPENDITURES:
Current:
improvement of instruction..........................
Building level administration..........................
Business, fiscal and internal services ............
Operation of piant
Food Service................. .
.
.....................
Community services .......................
.
...........
Facilitv oroiect
,
Debt Services:
Principal retirements.....................................
Interest............................ ..............................
..
861,412
64,447
884,199
65,772
883,396
55,285
803
10,487
1,791,762
2,491,367
1,692,684
598,683
167,234
167,234
273,124
5,900
105.890
5,900
Total Other Financing Sources (Uses).......
167.234
167.234
279,024
111,790
48,821
(713,423)
1,539,889
................
Total Expenditures.................
.
(UNDER) EXPENDITURES.............................
Transfers in (out) .............. ..........................
Proceeds from sale of capital asset..................
.
.
FUND BALANCE, END OF YEAR .......................
$
1,588,710
713,423
1,539,889
$
826.465
1,539,889
$
This schedule does not include the activity of the
Kirkwood School District Educational Authority
1,539,889
$
713,423
SCHEDULE OF SELECTED STATISTICS
1.
Calendar
A.
The number of actual calendar hours classes were in session and pupils
were under the direction of teachers during this school year was as follows:
Kindergarten A.M. ...................... 528.00
Kindergarten P.M. ...................... 528.00
Kindergarten - Full Day .............. 1,085.92
Grades 1 - 5 ............................... 1,072.57
Grades 6 8 ............................... 1,077.09
Grades 9 1I............................. 1,082.76
Grade 12 .................................... 1,066.64
-
B.
The number of days classes were in session and pupils were under the
direction of teachers during this school year was as follows:
Kindergarten A.M. ......................
Kindergarten P.M. ......................
Kindergarten - Full Day ..............
Grades 1 5 ...............................
Grades 6 - 8 ...............................
Grades 9 II.............................
Grade 12 ....................................
-
2.
Hours
Hours
Hours
Hours
Hours
Hours
Hours
176 Days
176 Days
176 Days
176 Days
177 Days
177 Days
174 Days
Students
A.
The number of resident eligible pupils for this schooi year was 4,013.052
163.011(4), RSMo), calculated as follows:
Resident
Eligible
Pupils
Voluntary
Transfer
Students
Incoming
voluntary
Transfer
Students
Outgoing Reported
at 50% *
529.766
--
Regular Full-Time Average
Daily Attendance:
Kindergarten...........................
Kindergarten AM and PM.......
Grades I- 5 ...........................
Grades 6 - 8 ...........................
Grades 9 11 .........................
Grade 12 ................................
-
3.828.01 9
* Not provided by City of St. Louis Public Schools
SCHEDULE OF SELECTED STATISTICS (CONTINUED)
2.
Students (continued)
Resident
Eligible
Pupils
Voluntary
Transfer
Students
lncominq
Voluntary
Transfer
Students
Outgoing Reported
at 50% *
Part-Time Average Attendance:
Kindergarten A.M.and P.M. .......
Grades 1 - 5 ...............................
Grades 6 - 8 ...............................
Grades 9 1I.............................
Grade 12 ....................................
-
I.694
1.499
2.140
8.798
122.752
Summer School Average
Attendance:
The applicable summer school for this fiscal year was the one held in calendar year
2004.
Grades 1 - 5 ...............................
Grades 6 - 8 ...............................
Grades 9 - 12 .............................
4.466
5.673
13.581
1.969
4.659
5.977
--"
Remedial Average Attendance:
-
Grades 1 5 ...............................
Grades 6 - 8 ...............................
Grades 9 11.............................
Grade 12 ....................................
0.710
--
---
0.710
Total Average Daily Attendance ....
-&X&2&
------tS82-~l.
-"
------
2.
Students (continued)
Resident
Eligible
Pu~ils
Voluntary
Transfer
Students
Incoming
Voluntary
Transfer
Students
Outgoing Reported
at 50% "
Determination of Eligible
Pupils for State Aid:
Total Average Daily Attendance ....
Summer School Average
Daily Attendance .........................
Pupils Eligible for State Aid ...........
September Membership
(as of the last Wednesday of
September 2004) .......................
FREE AND REDUCED PRICE ELIGIBLE PUPILS (Section 163.011(6),
RSMo). (This is a full-time equivalency (FTE) number as of the last
Wednesday of January, 2005.)
Free
Reduced
Total
3.
757.91
129.86
-8BiZ.77
Transportation
A.
The pupil transportation allowable costs substantially conforms to 5 CSR
30-261.040, Allowable Costs for State Transportation Aid.
X Y ES __ NO
If no, has corrective action been recommended?
Y E S -NO
6.
The District's pupil transportation ridership records are so maintained as to
accurately disclose in all material respects the average number of regular
riders transported.
A Y E S
NO
Y E S -NO
3.
Transportation (continued)
Based on the ridership records, the average number of students (K-12,
vocational, and handicapped) transported on a regular basis (ADT) eligible
for state transportation aid was 1,367 and the average number of students
transported on a regular basis (ADT) ineligible to be counted for state
transportation aid was 58.
C.
The District's transportation odometer mileage records are so maintained as
to accurately disclose in all material respects the eligible and ineligible
mileaae
- for the year.
A Y E S -NO
Y E S -NO
Based on the mileage records, the total mileage for the year was 184,569.
Of this total, the eligible non-handicapped and handicapped miles were
142,881 and the ineligible non-route and disapproved miles (combined)
were 41,688.
D.
4.
The District operated the pupil transportation system for 177 days during
this school year.
Adult Education and Family Literacy
A.
The District participated in the Adult Education & Literacy (AEL) programs.
Y E S
If no, skip topart five.
X N O
If yes, check the appropriate programs
Regular AEL - Special Literacy - Supplementary Literacy
MESL EUCivics Other (Name) -
B.
The number of contact hours eligible for core funding reimbursement in AEL
for this year was
o
C.
-
No AEL teacher generated more than fifteen contact hours per teacher
paid hour.
YES -NO
No AEL teacher generated more than eight contact hours for special
needs participants.
YES -NO
Teachers who are paid with AEL funds:
4
are AEL certificated.
Y E S
NO
if employed as a substitute, have obtained 60 college credit hours from
__YES
NO
an accredited institution.
4.
Adult Education and Famik Liieracv (continued]
D.
5.
The District has adequate procedures to maintain student record of
enrollment, test scores, and attendance hours.
Career Ladder
A.
The District participated in the career ladder program. If no, skip to part six.
Y E SX N O
B.
Revenues paid to the District by the state for career ladder participation
-YES
NO
were paid to the appropriate teachers.
The District's required local match for participation in the career ladder
program was set aside and paid to participating teachers.
Y E S -- NO
Finance
C.
6.
A.
Bond, as required by Section 162.401, RSMo has been purchased for the
District treasurer in the total amount of $25,000.
B.
The District's deposits were secured at all times during the year as required
by Sections 110:010 and 110.020, RSMo.
Details of the security agreement are located in Note 2 to the financial
statements.
C.
The District did not maintain a separate bank account for its Debt Service
Fund in accordance with Section 165.01 1 RSMo.
D.
The District's Free and ReducedIAt-Risk (line 14) expenditures are in
accordance with DESE and/or statutory requirements.
X Y E S -NO
E.
The District's expendiiures for At-Risk activities were $1,200.853.
6,
Finance (continued)
F.
The District has a school improvement
development committee plan adopted by the
development committee plan identifying the
percent (75%) of one percent (1%) of the
apportionment.
School Improvement Plan
Professional Development Plan
plan and a professional
Board with the professional
expenditure of seventy-five
current year basic formula
X Y E S -NO
X Y E S -NO
G.
The District's June, Basic Formula Calculation Sheet, Line H, Basic
Formula Apportionment amount was $822,756. The District's 75% of 1% of
the Basic Formula Apportionment amount was $6,171. The amount spent
for approved professional development committee plan activities was
$60,230.
H.
Did the District use state-funded grant monies to supplant existing salaries?
_ YES X NO
If yes, what grant monies were used to supplant existing salaries?
I.
Did the District use federal monies to supplant state expenditures?
Y E SA N 0
If yes, please explain.
J.
Lease purchase obligations entered into after November 1, 1993 and prior
to January 1, 1997, for which the principal and interest payments are being
made from the GTBILine 1 transfer amount are in accordance with Section
-YES N O X N I A
165.011.5(5), RSMo.
K.
Did the District make a GTBILine 1 transfer?
X YES -NO
If a GTB/Line 1 transfer was made in excess of adjusted expenditures, did
the Board approve a resolution to make the transfer, which identified the
specific projects to be funded by the transfer and an expected expenditure
date for the projects to be undertaken?
-YES
-NO
N/A
L.
The District issued general obligation refunding bonds in the current year.
Y E S X NO
If yes, identify the type of refunding: -Current __ Advance-Defeased
-Advance-Crossover
6.
7.
Finance (continued)
M.
The District has appropriately included all current and prior year crossover
refunding bonds in the current year.
-YES
-NO
NIA
N.
The District took action prior to October 31 to cause the 2003-04 audit to be
X Y E S
NO
performed.
0.
For the preceding year (not the current audit period) in which the District
took action to cause an audit to be performed by October 31, the District
published a summary of the 2002-03 report within thirty days of the receipt
of the audit pursuant to Section 165.121, RSMo.
X YES -NO -NIA
-
P.
Based on the school's federal expenditures, an audit was required to be
performed in accordance with OMB Circular A-133 (Revised)?
X Y E S -NO
Missouri School lmorovement Proaram (MSIP)
A.
The District has adequate procedures that allow for the proper recording
and reporting of hours of absence.
X Y E S -NO
-YES
NO
B.
The District has adequate procedures that allow for the identification and
recording of dropouts as defined in the Core Data Manual (Exhibit 6) and
the subsequent reporting of those students to the Adult Literacy Hotline and
on the June Cycle of Core Data.
XYES
NO
Y E S -NO
-
C.
The District has a set of adequate procedures for following up on the
College and Vocational Placement of all of the previous year's graduates
&YES
NO
180 days after graduation.
-YES
-NO
D.
The District has a set of procedures that ensures Advanced Courses and
Vocational Courses (approved by the State) are properly
.
.
. identified and
reported according to k%e Data standards?
A Y E S -NO
-- YES -NO
$CHOWALTER & J- MOUWII, P.C.
CERTIFIED PUBLIC ACCOUNTANT5 AND CONSULTANTS
11878 GRAVOIS ROAD
ST. WUIS. MISSOURI 63127
(314) 849.4999
FAX (314) 849-3486
FINANCIAI. SERVICES
COMPUTER SOLUTIONS
ADMlNISTRATlVE OFFICBS
11777 GRAVOIS ROAD
ST. LOUIS. MlSSOURI 63127
0141 842-2929
FAX (PI41842.3483
REPORT ON COMPLIANCE - STATE REQUIREMENTS
Board of Education
We have audited the financial statements of the Kirkwood School District R-7 (the
"District") as of and for the year ended June 30,2005, and have issued our report thereon
dated August 12,2005.
As required by the Revised Statutes of the State of Missouri, we have performed
auditing procedures to test compliance with the budgetary statute (Chapter 67 RSMo)
and Section 165.121.3(7) RSMo with respect to the methods of maintaining pupil
attendance and wudl transwortation records for the year ended June 30, 2005. The
management of 'the ~istriktis responsible for the7District's compliance with those
requirements. Our responsibility is to express an opinion on compliance with those
requirements based on our audit.
We conducted our audit of compliance with those requirements in accordance with
auditing standards generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether
material noncompliance with the requirements referred to above occurred. An audit
includes examining, on a test basis, evidence about the District's compliance with those
requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the District's budgetary and disbursements procedures were in
compliance, in all material respects, with the budgetary statute (Chapter 67 RSMo) for the
year ended June 30,2005, except the final amended budget for the special revenue fund
resulted in a deficit fund balance. It is further our opinion that the pupil attendance and
pupil transportation records are so maintained as to accurately disclose, in all material
respects, the average daiiy attendance; resident membership on the last Wednesday of
September; and mileage and allowable cost for pupil transportation in compliance with
state law and administrative rules for the year ended June 30, 2005.
MEMBERS
SEC PUCnCESECTlON
AMERICAN INSTITUTEOF CERTIFIEDPUBLICACCOUNTANTS. MISS OUR^ FOCIKTYOFCERTIFIED
PUBLIC ACCOUNTANTS
SC INTERNATIONAL (MEMBBR FIRMS TliROUGHOUT THE WORLD)
This report is intended for the information and use of the Board of Education,
District management, the Missouri Department of Elementary and Secondary Education
and federal awarding agencies and pass-through entities and is not intended to be and
should not be used by anyone other than these specified parties.
SCHOWALTER & JKBOURI.
P.C.
St. Louis, Missouri
August 12,2005
COMPLIANCE AND INTERNAL CONTROLS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Proararn Title
Federal
CFDA
Number
U.S. Deparirnent of Education:
Passed throuah Missouri
~ e ~ a r t r n e GElementary
of
and Secondarv Education:
ESEA Title I .......................................
ESEA Title Ill .....................................
ESEA Title II A ...................................
ESEA Title IV .....................................
Early Childhood Special Education ...
ESEA Title II D ...................................
ESEA Title V ......................................
Education for Homeless Children
and Youth ........................................
IDEA Special Education ....................
Total U.S. Department
of Education.................................
U.S. Department of Aariculture:
Passed through Missouri
De~artmentof Elementary
and Secondary ducat ion:
National School Lunch.......................
National School Breakfast .................
Food Distribution..............................
Community Food Assistance.............
Total U.S. Department of
Agriculture....................................
10.555
10.553
10.550
10.558
Pass-Through
Identification
Number
Expenditures
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)
Proaram Title
Federal
CFDA
Number
Pass-Through
Identification
Number
Exoenditures
Corooration for National and
Communitv Services:
Passed through Missouri
Department of Elementary
and Secondary Education:
Learn & Serve America ....................
Total Corporation for
National and Community
Services............................................
TOTAL.......................................................
-
Note 1 Sianificant Accountina Policies
The District prepares its Schedule of Expenditures of Federal Awards on the
modified accrual basis of accounting. Under the modified accrual basis of accounting,
revenue is recorded when susceptible to accrual, i.e., both measurable and available.
Available means collectible within the current period or soon enough thereafter to be used
to pay liabilities of the current period. Expenditures are recorded when the related liabilities
are incurred.
Note 2 - Food Distribution
Nonmonetary assistance is reported in the schedule at the fair market value of the
commodities received and disbursed.
Note 3 - Insurance
The District did not have any federal insurance in effect during the fiscal year ended
June 30,2005.
Note 4 - LoanslLoan Guarantees
The District did not have any loans or loan guarantees outstanding as of June 30,
2005.
$CHOWALTER & -.IABOICIlRII, P.C.
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS
1 1 8 7 8 CRAVOIS ROAD
ST.LOUIS,M l S S O U R l 6 3 1 2 7
(~ .-.,
3 1 4 ) R49-4999
.~~
FAX (314) 849-3486
FINANCIAL SERVICES
COMPUTER SOLUTION5
ADMINISTRATIVE OFRCES
11777 GRAVOlS ROAD
ST. LOUIS. MISGOURI 63127
(3141 842.2929
FAX 0 1 0 842.3483
REPORT ON INTERNALCONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
W N A N C I A L STATEMENTS PERFORMED IN A C C O R D m E
WITH GOVERNMENTAUDITING STANDARDS
Board of Education
We have audited the financial statements of the Kirkwood School District R-7 (the
"District") as of and for the year ended June 30,2005, and have issued our report thereon
dated August 12, 2005. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Audifing Standards, issued by the Comptroller
General of the United States.
Internal Control Over Financial Rebortinq
In planning and performing our audit, we considered the District's internal control
over financial.reporting in order to determine our auditing procedures for the purpose of
expressing opinions on the financial statements and not to provide an opinion on the
internal control over financial reporting. Our consideration of the internal control over
financial reporting would not necessarily disclose all matters in the internal control that
might be material weaknesses. A material weakness is a reportable condition in which
the design or operation of one or more of the internal control components does not
reduce to a relatively low level the risk that misstatements caused by error or fraud in
amounts that would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal course of
performing their assigned functions. We noted no matters involving the internal control
over financial reporting and its operation that we consider to be material weaknesses.
MEMBERS
SEC PRACTICE SECTlON
AMRRICANI N S T I N ~ O F C E R T I F I ~PUBLIC
D
ACMUNTANlS .MISSOURI S O C I E N O F C K R ~ E DPUBLIC ACCOUNTANTS
SC INTeRNAnONAL (MEMBER FIRMS THROUGHOUT +HE WORLD)
Comoliance and Other Matters
As part of obtaining reasonable assurance about whether the District's financial
statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements, noncompliance
with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions
was not an objective of our audit and, accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Audifing Sfandards.
and other federal awarding agencies and pass-through entities and is not intended to be
and should not be used by anyone other than these specified parties.
St. Louis, Missouri
August 12,2005
SCMOWMTER & JMOUWI, P.C.
C ~ I L ~ F PUBLIC
~ E D ACCOUNTANTS AND CONSULTANTS
1.1878 GRAVOlS ROAD
ST. WUIS, MISSOURI 63127
(314) 6494999
FAX (314) 849-3486
FINANCLAL SERVlCES
COMPUTER SOLUTIONS
ADMlNISTRATJVE DFPICES
11777 GRAVOIS ROAD
ST. LOUIS, MISSOURI 63127
(314) 842.2929
FAX (314) 842.3+83
REPORT ON COMPLIANCE WlTH REQUIREMENTS APPLICABLE
TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WlTH OMB ClRCULAR A-133
Board of Education
We have audited the compliance of the Kirkwood School District R-7 (the
"District"), with the types of compliance requirements described in the US. Office of
Management and Budget ("OMB") Circular A-133 "Compliance Supplement" that are
applicable to each of its major federal programs for the year ended June 30, 2005. The
District's major federal programs are identified in the summary of auditors' results section
of the accompanying schedule of findings and questioned costs. Compliance with the
requirements of laws, regulations, contracts and grants applicable to each of its major
federal programs is the responsibility of the District's management. Our responsibility is
to express an opinion on the District's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards
generally accepted in the United States of America; the standards applicable to financial
audits contained in Government Audifing Standards, issued by the Comptroller General of
the United States; and OMB Circular A-133, "Audits of States, Local Governments and
Non-Profit Organizations." Those standards and OM6 Circular A-133 require that we plan
and perform the audit to obtain reasonable assurance about whether noncompliance with
the types of compliance requirements referred to above that could have a direct and
material effect on a major federal program occurred. An audit includes examining, on a
test basis, evidence about the District's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We
believe that our audit provides a reasonable basis for our opinion. Our audit does not
provide a legal determination on the District's compliance with those requirements.
MEMBERS
SEC PRACTlCE SECTION
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MISSOURI SOCIETY OF CERTlFlEDPUBLIC ACCOUNTANTS
SC INTBRNAllONAL (MEMBER FIRMS THROUGHOUT 'IXB WORLD)
In our opinion, the District complied, in all material respects, with the requirements
referred to above that are applicable to each of its major federal programs for the year
ended June 30,2005.
Internal Control Over Com~iiance
The management of the District is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations, contracts
and grants applicable to federal programs. In planning and performing our audit, we
considered the District's internal control over compliance with requirements that could
have a direct and material effect on a major federal program in order to determine our
auditing procedures for the purpose of expressing our opinion on compliance and to test
and report on internal control over compliance in accordance with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily
disclose all matters in the internal control that might be material weaknesses. A material
weakness is a condition in which the design or operation of one or more of the internal
control components does not reduce to a relatively low level the risk that noncompliance
with applicable requirements of laws, regulations, contracts and grants that would be
material in relation to a major federal program being audited may occur and not be
detected within a timely period by employees in the normal course of performing their
assigned functions. We noted no matters involving the internal control over compliance
and its operation that we consider to be material weaknesses.
and other federal awarding agencies and pass-through entities and is not intended to be
and should not be used by anyone other than these specified parties.
St. Louis, Missouri
August 12,2005
1.
SUMMARY OF AUDITORS' RESULTS
Financial Statements
Unqualified
Type of auditor's report issued:
Internal control over financial reporting:
-Yes
No
Material weakness(es) identified?
Reportable condition(s) identified
not considered to be material weaknesses? -Yes X None reported
Noncompliance material to financial statements
noted?
-Yes
No
Federal Awards
internal Control over major programs:
Material weakness(es) identified?
Yes X No
Reportable condition(s) identiied
not considered to be material weaknesses? -Yes A None reported
-
Type of auditor's report issued on compliance
for major programs:
Unqualified
Any audit findings disclosed that are required
to be reported in accordance with
Circular A-I 33, Section .52O(a)?
Y
e
s A No
Identification of major programs:
CFDA Numberfs)
Name of Federal Prosram or Cluster
10.555 and 10.553
10.550
Child Nutrition Cluster
Food Distribution
Dollar threshold used to distinguish between Type A and Type B programs:
$300,000
Auditee qualified as low-risk auditee?
X Yes-
No
KIRWOOD SCHOOL DISTRICT R-7
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
2.
FINANCIAL STATEMENT FINDINGS
There were no findings which are required to be reported in accordance with
Generally Accepted Governmenial Auditing Standards.
3.
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
There were no findings and questioned costs related to Federal Awards.
4.
FOLLOW-UP OF PRIOR YEAR FEDERALAWARD FINDINGS AND
QUESTIONED COSTS
There were no prior year findings and questioned costs related to Federal
Awards.

KIRKWOOD SCHOOL DISTRICT R-7 FINANCIAL STATEMENTS

Transcription

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