District commended for budgeting during 2012-13 audit report
December 17, 2013
The Moorhead School Board learned that differences between the original budget, final budget, and actual revenue and expenditures for the 2012-13 school year were close.
Brian Stavenger, Eide Bailly LLP, presented the executive summary of the district’s 2012-13 annual audit report to the board at the Dec. 9 meeting. The report provides an overview of the district’s finances and demonstrates the district’s accountability for the money it receives.
According to the audit, total revenues budgeted were $57.3 million and actual revenue was $59.1 million with a difference of 3.3 percent or $1.87 million. The positive variance was due in part to special education aid, which is usually budgeted conservatively, and to carryover federal funds.
For expenditures the district had budgeted $56.2 million. Actual expenditures were slightly higher at $56.6 million for a difference of $335,973 or 0.6 percent. The district, on a cost-per-student basis, continues to spend below the state average in the areas of administration and regular instruction.
Although the district spent a little more than budgeted, Stavenger reminded the board that it is less than a 1 percent negative variance.
“If you can get within 2 to 3 percent of your budget, you’re doing a good job. You were within 0.6 percent,” Stavenger said.
Stavenger also reminded board members how the general education aid payment delays had been affecting the district. Previously the district received 90 percent of its general education aid in the current fiscal year, with the remaining 10 percent paid the following year. However, that changed to 73/27 for 2009-10, 70/30 for 2010-11 and 64/36 for 2011-12. It was adjusted to 86/14 for 2012-13, which improved the district’s ability to have adequate cash on hand to pay bills without borrowing.
Stavenger said the district received a clean, unqualified opinion, which means the financial statements have been prepared using accepted accounting principals and do not contain misstatement.
The complete audit and the executive summary will be available on the district’s website www.moorheadschools.org.
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