District 197 receives clean audit for 2012-13 finances

The independent auditing firm of Malloy, Montague, Karnowski, Radosevich & Co., PA, (MMKR) has given School District 197 a “clean opinion” of its finances for 2012-13. 

James Eichten of MMKR presented the 2012-13 Audit Report at a meeting of the School Board on Nov. 18. Overall, MMKR has issued a “clean opinion” — the highest rating an auditor can give — on the district’s basic financial statements, citing good record keeping and financial accounting. The district has received the same rating for several years in a row.

“We are proud that our careful, conservative budgeting continues to help make the district’s financial situation stronger,” said Brian Schultz, director of finance. “The district is committed to responsible and transparent stewardship of our resources to help achieve our educational goals.”

Eichten reported that the district’s unassigned fund balance has increased by $2.8 million (about 5.1 percent of the district’s total general fund operating expenditures) since last year. The district has focused on increasing its fund balance for the past few years. Maintaining a conservative fund balance adds to the overall financial stability of the district, is an indication of prudent spending, and allows for better long-range planning.

Last year’s fund balance increase was mainly due to increased enrollment within the district, prior year aid under accruals, and the first year collecting on a new operating referendum passed by voters in 2011.

“The increase in enrollment provides a lot of positives for the district’s financial standings,” Eichten said.

Eichten also told the School Board that the projected versus actual budget prepared by the district Finance Office for 2012-13 was exceptionally accurate.

“You as a board should know that you can believe the information you’re getting from the Finance Office in order to make informed decisions,” Eichten said. “You should be confident that the final budget results mimic the projected budgets.”