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Fiscal Year 2019 Audit Results Financial Statement Audit and Federal Single Audit Engagement Team

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Fiscal Year 2019 Audit Results Financial Statement Audit and Federal Single Audit Engagement Team Fiscal Year 2019 Audit Results Financial Statement Audit and Federal Single Audit Engagement Team Lupe Garcia, CPA Tom Pedersen, CPA Dan Hernandez, CPA Raul Balbuena Dustin Hicks Diana Gonzalez Engagement Partner Concurring Partner Senior Manager Senior Associate Associate Associate The Audit Process 1 Planning Risk Assessment Internal Controls Determine if we can rely on controls and 2 reduce risk of material misstatement. 4 3 Substantive Testing Opinion Sufficient audit evidence Disclaimer, Modified, Unmodified Types of Auditor Opinions Disclaimer Modified Unmodified (No Assurance) (Qualified or Adverse) (Clean Opinion) Auditor’s Report on Financials (pp. 1-3) • Unmodified or “clean” opinion • Highest level of assurance that can be given on a set of financial statements • Audit conducted in accordance with Generally Accepted Auditing Standards and Government Auditing Standards Auditor’s Report on IC and Compliance • Internal control over financial reporting • No material weakness identified • No significant deficiencies reported • No instances of noncompliance material to the financial statements were noted Pages 1-2 of Single Audit Report Federal Single Audit – Major Programs • Child Nutrition Cluster - $10.4 million • School Breakfast Program • National School Lunch Program • Seamless Summer Option • Child and Adult Food Care Program - $0.3 million Total Schedule of Expenditures of Federal Awards - $23.4 million Pages 6-8 of Single Audit Report Auditor’s Report on Major Programs • Internal control over federal major programs • No material weakness identified • No significant deficiencies reported • Unmodified opinion on compliance for federal major programs • No instances of noncompliance or questioned costs were noted Pages 3-5 of Single Audit Report Condensed Statement of Net Position – Governmental Activities ($000) August 31, 2019 August 31, 2018 Current and other assets $443,972 $540,261 Capital assets 745,045 680,707 Total Assets 1,189,017 1,220,968 Total Deferred Outflows 79,338 37,179 Current and other liabilities 42,579 34,079 Net pension liability 97,539 53,429 Net OPEB liability 114,654 91,505 Other noncurrent liabilities 1,131,361 1,159,257 Total Liabilities 1,386,133 1,338,270 Total Deferred Inflows 41,601 54,665 Total Net Position $(159,379) $(134,788) Condensed Statement of Revenue, Expenditures, and Changes in Fund Balances ($000) Year ended 8/31/2019 General Debt Capital Nonmajor Total Service Projects Total Revenue $295,943 $54,679 $8,643 $32,990 $392,255 Total Expenditures 294,306 68,525 103,517 32,439 498,787 Total Other Financing Sources (Uses) (16) 3,500 (3,500) 16 - Net Change in Fund Balances 1,621 (10,346) (98,374) 567 (106,532) Beginning Fund Balance 72,887 25,048 401,019 5,233 504,188 Ending Fund Balance $74,509 $14,702 $302,645 $5,800 397,656 General Fund – Budget to Actual ($000) For the Year Ended August 31, 2019 Final Budget Actual Variance Total Revenues $284,256 $295,943 $11,687 Total Expenditures 300,867 294,306 6,563 Total Other Financing Sources (Uses) - (16) (16) Net Change in Fund Balance (16,611) 1,621 18,234 Beginning Fund Balance 72,887 72,887 Ending Fund Balance $56,276 $74,509 General Fund Unassigned Fund Balance ($M) $72.00 $70.04 $70.06 $70.00 $68.16 $68.00 $66.00 $64.10 $64.00 $62.00 $60.89 $60.00 $58.00 $56.00 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019* * The GF also reports $4.7M in committed fund balance and $4.5 in assigned fund balance. General Fund Unassigned Fund Balance (in Days) 100 90 Days 90 79 Days $72.6M 80 70 $64.1M 60 50 40 30 Days 30 $24.2M 20 10 - TEA Min District TEA Max Required Communications • Significant Accounting Policies • The District’s accounting policies and methods are appropriate and in accordance with industry standards. • Accounting Estimates • The preparation of the financial statements requires that certain estimates and judgments be made by management. These judgments and estimates include: • State Aid • Allowances for uncollectable taxes receivable • Useful lives of capital assets • Net pension and OPEB liabilities, deferred inflows and outflows of resources, and pension and OPEB expense • We concluded that management has a reasonable basis for significant judgments and estimates that impact the financial statements. Required Communications • Difficulties Encountered in Performing the Audit • We encountered no difficulties in dealing with management in performing and completing our audit • Corrected or Uncorrected Misstatements • There were no material misstatements that were identified by us that required management’s correction • Disagreements with Management • We had no disagreements with management over the application of accounting principles or management’s judgments about accounting estimates. Required Communications • Management Representations • We have requested certain representations from management • Consultation with Other Accountants • We are not aware of any situations in which management consulted with other accountants on accounting or financial reporting matters. • Major Issues Discussed with Management Prior to Retention • We discussed the application of accounting principles and auditing standards, however, our responses were not a condition to our retention. .
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