District receives clean audit report for 2016-17
December 14, 2017
The Moorhead School Board reviewed differences between the original budget, final budget, and actual revenue and expenditures for the 2016-17 school year during the presentation of the annual audit report.
Derek Flanagan, Eide Bailly LLP, presented the draft of the executive summary of the district’s 2016-17 audit report to the board at the Nov. 27 meeting. The report provides an overview of the district’s finances and demonstrates the district’s accountability for the money it receives and spends. The board approved the report at the Dec. 11 meeting.
According to the audit, total revenues budgeted were $74.4 million and actual revenue was $79.4 million with a difference of 6.8 percent or $5 million. For expenditures the district had budgeted $76.9 million. Actual expenditures were higher at $81.4 million for a difference of a negative 5.8 percent or $4.5 million. The higher than usual variance from the budgeted amounts was due in part to a nearly $2 million adjustment made to both revenues and expenditures to record pension support received and expended from the state related to pension funding.
The district’s fund balance increased approximately $2 million. This means the district’s unassigned fund balance is at 16.8 percent of general fund operating expenditures, which is just under the 17% minimum required according to School Board policy. That provides about two months of operating expenditures to meet cash flow needs.
The complete audit and the executive summary are available on the district’s website www.moorheadschools.org.