Auditors Give Kudos To School District Finances

Auditors from Vachon Clukay and Co., PC presented the review of audited financial statements for the year ended June 30, 2013 for the Londonderry School District, and said there were “no deficiencies or weaknesses identified and no findings or questioned costs to report.”
According to Tammy Webb of Vachon Clukay, the district received “an unmodified opinion” on its financial statements and on its federal compliance audit.

“What that means is, is that it’s a clean opinion,” she said. “Your financial statements are fairly stated, plain and simple. It’s the highest opinion that one can receive on their financial statements.
Because of required changes, previously classified assets have been split into “assets” and “deferred outflows of resources.
“And you have liabilities which have been split into ‘liabilities’ and ‘deferred inflow of resources.’ They simply changed the term of ‘net assets’ into ‘net position,’” Webb said.
She said an example of a deferred outflow is when the district refinanced a bond in 2004 and because there was no other category, it was classified as an asset. “An asset is what is owned, and you can’t exactly sell this and turn it into cash,” she said, thus the new category of deferred outflow.
“The only difference between the old reporting and the new reporting for the deferred loss on the refunding is that it’s no longer an asset, it’s in a separate category,” Webb said.
She said that an example of deferred inflow of resources would be money received in advance, such as a grant award. The district did not have any deferred inflows as of June 30, 2013.
“The total net position of the district at year end was $31.1 million, (with) $34.7 million represent(ing) your net investment in capital assets.
Webb said the General Fund’s total revenues and other financing sources exceeded budgeted estimates by $253,000. She called it a great job in estimating fiscal year revenue.
She said actual revenues exceeded actual expenditures on the budgetary basis by $1 million.
She noted the district expended approximately $1.8 million in federal awards.
“This is down from the prior year’s federal funding of $2.5 million,” she said. “During FY 12, the district had received $473,000 from the Education Jobs Fund, which is no longer a federal grant award.”
Webb said that as part of the federal compliance audit, both financial reporting and compliance were tested and no weaknesses or deficiencies were identified and no findings or questioned costs were found.
The board voted unanimously to approve the audit at its Thursday, Dec. 19 meeting.

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