The financial statements compiled by the administrators and staff at Rolla Public Schools are accurate, according to Lynn Graves, a certified public accountant from Jefferson City, who presented the audit Thursday night to the Rolla Board of Education.
Graves, representing his firm, Graves and Associates, CPA’s, LLC, put it this way in his official report:
“We have audited the accompanying financial statements of the government activities, the business-type activities, the aggregate discretely presented component units, and each major fund of the Rolla School District No. 31, as of and for the year ended June 30, 2012, which collectively comprise the district’s financial statements,” Graves wrote.
And here’s the summary: “In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, and each major fund of the Rolla School District No. 31, as of June 30, 2012, and the respective changes in financial position thereof for the year ended in conformity with accounting principles generally accepted in the United States of America.”
All that language means is that the accountants have looked closely at the records kept by the district and found that the numbers are presented accurately.
The audit is divided into several sections, beginning with the two-page report itself, followed by a 15-page management’s discussion and analysis, the basic financial statements, notes to the financial statements, required supplementary information, plus additional supplementary information having to do with state compliance and federal compliance, report on internal control, report on internal control in compliance with federal regulations and a schedule of findings and questioned costs.
The audited statement of activities for the year ended June 30 shows the district spent $38,022,848 for governmental activities such as instruction, guidance, health, speech therapy, business service, administration, transportation and community education. Some of these areas generate revenue through charges for service ($4,375,573), operating grants ($6,546,939) and capital grants ($115,160). That resulted in net spending of $26,985,177.
In addition, the district spent $2,920,550 on self-funded business-type activities, received $2,641,092 back in charges for services, resulting in net expenditures in that area of $279,458.
CORE had expenses of $154,297, charges for service of $13,025, operating grants and contributions of $90,773 for net expenses of $50,499.
The Rolla License Fee Office had expenses of $202,990, charges for service of $245,251 for net revenue of $42,261.
On the revenue side, property taxes brought in $12,488,401; sales taxes, $3,227,911; state aide, $12,780,129; fines and forfeitures, $279,477; sale of school buses, $3,840; sale of other property, $23,442; investment income, $682,628 for governmental activities, $45,270 for business-type activities and $4,824 for CORE; miscellaneous revenue of $36,022 for governmental activities and $10,523 for the Rolla License Fee Office; transfer of $60,000 from the Rolla License Fee Office to CORE.
Net assets at the end of the year were $40,362,107 for the district’s governmental activities, $4,206,863 for its business-type activities, $44,568,970 total.
Page 2 of 2 - CORE ended the year with $827,751 in assets. The Rolla License Fee Office closed out with $7,023 in assets. The Rolla License Fee Office raises money for CORE to use on educational enrichment activities.
At the meeting, Graves went through the audit report, pointing out highlights, such as the amount held in reserve for the capital projects fund, $8.2 million, which is double the amount required by the Department of Elementary and Secondary Education. “Very healthy,” is the way he described that reserve.
Graves noted the auditing firm found no material weaknesses in internal control of financial reporting, although for this audit, the scope did not include a check of the effectiveness of internal controls.
“Nothing came to our attention,” Graves said at the meeting. In the written report, he explained: “The purpose of that report is to describe the scope of our testing of internal control of financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance,”
Also, he noted, the auditors did not look into the financial statements of the Internal Service Fund, the Rolla Public School Foundation and the Rolla License Fee Office.