City of Monroe School Board Monroe, Louisiana
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AU>^^ CITY OF MONROE SCHOOL BOARD MONROE, LOUISIANA Financial Report For the Year Ended June 30,2010 Under provisions of state law, this report is a public document. A copy of the report has been submitted to the entity and ottier appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court. Release Date ///f/// CITY OF MONROE SCHOOL BOARD Monroe, LA Financial Report For The Year Ended June 30,2010 Table of Contents Page Independent Auditors' Report Required Supplemental Information (Part A) Management's Discussion and Analysis (MD & A) — Basic Financial Statements Government-Wide Financial Statements (GWFS): Governmental Activities: Statement of Net Assets 16 Statement of Activities 17 Fund Financial Statements (FFS): Governmental Funds: Balance Sheet 19 Reconciliation of the Governmental Funds' Balance Sheet to the Statement of Net Assets 20 Statement of Revenues, Expenditures, and Changes in Fund Balances 22 Reconciliation of the Governmental Funds' Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 23 Fiduciary Fund - Agency Ftmds: Statement of Assets and Liabilities 26 Notes to the Basic Financial Statements 27 Required Supplemental Information (Part B) . Budgetary Comparison Schedules; General Fund 58 Title I 59 2001 Sales Tax — 60 Notes to Budgetary Comparison Schedules 61 CITY OF MONROE SCHOOL BOARD Monroe, LA Financial Report For The Year Ended June 30,2010 Table of Contents Page Supplemental hvformation Non-major Fimds: Combining Balance Sheet 66 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance 67 Special Revenue Funds: Balance Sheet 68 Schedule of Revenues, Expenditures and Changes in Fund Balances • 69 Debt Service Funds: Combining Balance Sheet 71 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 72 Capital Projects Funds: Combining Balance Sheet 74 Combining Schedule of Revenues, Expenditures and Changes in Fimd Balances 75 Other Supplementary Data Schedule of Compensation Paid Board Members 77 CITY OF MONROE SCHOOL BOARD Monroe, LA Financial Report For The Year Ended June 30,2010 Table of Contents Fage Supplementary Information - Grant Activity Report on Internal Control Over Financial Reporting and Compliance And Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 79 Report on Compliance With Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance With OMB Circular A-U3 81 Schedule of Expenditures of Federal Awards ; 83 Notes to Schedule of Expenditures of Federal Awards 85 Schedule of Findings and Questioned Costs 86 Summary Status of Prior Year Fmdings 90 Other Information Independent Auditors' Report on Applying Agreed-Upon Procedures 94 Schedule Descriptions 97 Schedule 1 - General Fimd Instructional and Support Expenditures and Certain Local Revenue Sources — 99 Schedule 2 - Education Levels of Public School Staff 100 Schedule 3 - Number and Type of Public Schools 101 Schedule 4 - Experience of Public Principals and Full-Time Classroom Teachers 102 Schedule 5 - Public School Staff Data 103 CITY OF MONROE SCHOOL BOARD Monroe, LA Financial Report For The Year Ended June 30.2010 Table of Contents Page Schedule 6 - Class Size Characteristics 104 Schedule 7 - Louisiana Educational Assessment Program (LEAP) for the 21'* Century 105 Schedule 8 - The Graduation Exit Exam (GEE) for the 21 '* Century 107 Schedule 9 - The iLeap Tests 108 John L Luffey. MBA, CPA (1963-2002) Frands I. Huffman, CPA PtiflipA.Ragsdate.CPA LUFI?EY, Hui^gMAN, PAG$PAI,E & SoiGNlER David Ray Soignier. CPA, MBA John HOTTian, CPA (A pROFESSioNAi, ACCOUNTING CORPORATION) Lynn Andiies, CPA Esther Attebeny. CPA CERTIFIED PUBUC ACCOUNTANTS Sandra Hanington.CPA INDEPENDENT AUDITORS' REPORT City of Monroe School Board Monroe, Louisiana We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of Monroe School Board (the School Board) as of and for the year ended June 30, 2010, which collectively comprise the School Board's basic financial statements as listed in the Table of Contents. These financial statements are the responsibility of the School Board'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, the standards for financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States and the Louisiana Governmental Audit Guide issued by the Louisiana Legislative Auditor and the Louisiana Society of Certified Public Accountants. 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 opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the City of Monroe School Board, as of June 30, 2010, and the changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 30, 2010 on our consideration of the School Board's internal 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 internal control over fmancial reporting and compliance and the results of that 1100 Nortfi 18th Street Monroe, Louisiana 71201 Tel". (318)^7-2672 • Fax: (318) 322-B866 • Website; www.afi.aservlcecpaRni).com MEMBERS OF THE AMERtCAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTAMTS Pagel City of Monroe School Board Independent Auditors* Report testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of oiiT audit. The "Management's Discussion and Analysis" presented on pages 5 through 13 and the "Budgetary Comparison Schedules", presented on pages 58 through 60 are not a required part of the basic financial statements but are supplementary information required by the Govenunental Accounting Standards Board. 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. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Monroe School Board's basic financial statements. The accompanying Supplemental Information, other supplementary data and supplementary grant activity as listed in the Table of Contents, including the Schedule of Expenditures of Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. This infonnation has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairiy stated in all material respects in relation to the basic financial statements taken as a "v^^ole. uMBMti Htt^i^«c«-s/v^Wa<£4< (A Professional Accounting Corporation) December 30,2010 REQUIRED SUPPLEMENTAL INFORMATION (PART A) MANAGEMENT'S DISCUSSION AND ANALYSIS CITY OF MONROE SCHOOL BOARD Management's Discussion and Anafysis For The Year Ended June 30,2010 We offer readers of the City of Monroe School Board's financial statements this narrative overview and analysis of the financial activities of the City of Moturoe School Board for the fiscal year ended June 30, 2010. It is designed to assist the reader in focusing on significant financial issues and identifying changes in the School Board's financial position. Financial Highlights The City of Monroe School Board ended the 2009-2010 fiscal year with a fiind balance in the General Fund of approximately $15 million. Other financial highlights for the 2009-10 fiscal year include the following: • Statement of Net Assets - The assets of the City of Monroe School Board exceeded its liabilities at the close of the most recent fiscal year by $36.3 million (net assets). • Capital Assets - Total capital assets (net of depreciation) were $62.3 million or 56% of the total assets. The City of Monroe School Board uses these assets to provide educational services to children and adults; consequentiy, these assets are not available for future spendmg. • Long-Term Obligations - The School Board's