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Friday, May 6, 2016

Schools receive top audit rating

Friday, January 14, 2011

McCOOK, Nebraska -- McCook Public Schools' board of education president said at a board meeting Monday evening that every organization that goes through an audit of its financial records hopes for an "unqualified opinion."

"Unqualified ... no reservations. That's the best audit you can get," MPS board president Tom Bredvick said. "That's our goal ... to get an unqualified audit."

And that's what the McCook school system got -- an unqualified audit of its 2009-2010 financial records with everything up to standard and code.

Bredvick said the only comment on the MPS audit report is that the school district needs more employees in the business office to ensure that one person is not responsible for one financial transaction or process from beginning to end. But, Bredvick added, that's the most common comment on almost every audit report he's ever read.

Business manager Rick Haney told board members at their meeting Monday that having two people involved with every transaction "would be tough to do without doubling the staff."

Haney assured board members that, despite having a small staff, he never has one person entirely in charge of one process. ""There are multiple eyes and multiple checks and balances on each transaction," Haney said.

Bredvick said he would like to know, from the school district's auditor, if one half-time employee could meet the goal of auditors to assure that no one employee starts and finishes one transaction.

Despite that comment from auditors, Bredvick said, "This is a clean audit ... an unqualified audit. That's the best audit you can get."

Haney explained financial highlights of the audit:

* Special building fund net cash assets increased $136,206 over the 2008-09 school year.

Haney said that the special building fund has its own tax levy, generating funds to pay for infrastructure projects, generally new construction. There will be about $350,000 in the fund at the end of the 2010-11 school year.

* Bond fund net cash assets increased $65,186.

The bond fund, which is paying for the expansion and remodeling of North Ward/McCook Elementary, has a reserve in it to pay for refinancing, if that should become available and cost-effective, or to pay off the bond early. Haney said that he would like an additional half-payment -- although the state rules that schools can't collect taxes to purposely create a reserve in the future.

* Lunch fund net cash assets increased $23,437.

The lunch fund has a reserve of about $50,000, money that may be used for improved services at Central Elementary.

* Employee benefits fund net cash assets increased $94.

The employee benefit fund is not designed to increase, Haney said.

* Depreciation fund net cash assets increased $90, 699.

The depreciation fund may be used for repairs to roofs or infrastructure, but cannot be used for new construction. While the depreciation fund and special building fund can supplement each other and work together, the depreciation fund cannot be used for new construction, and the special building fund can be used for new construction and/or repairs/maintenance.

Haney said for the 2007-08 budget, the school board created a list of projects that would be budgeted best over several years, including a district-wide telephone system update, maintenance and kitchen equipment, roofs, track replacement and gym floor renovation and route and activity busses, maintenance vehicles and vans.

The depreciation fund was used to pay for the air conditioner at the junior high and updates to the high school track and track complex.

* General fund net cash assets increased $462,156, or 2.8 percent.

-- The increase in the general fund was not a budgeted increase, Haney said. Increases in this fund can be attributed to stimulus funds from the federal government, curriculum purchases that were budgeted last year but not made and cost savings in personnel.

* Total net cash assets of all funds increased $796,332.

-- An increase in the total net cash assets of the school district can be put away or into the general fund, Haney said.

Also from the 2009-10 school year, the school district's assessed tax valuation increased $16,189,166, from $432,933.497 to $449, 122,663.

Over the past five years, the school district's tax levy has decreased.


General fund: $1.088915

Bond fund: $0.113562

Special building fund: $0.0

District total: $1.202477


General fund: $1.052440

Bond fund: $0.139115

Special building fund: $0.0

District total: $1.191555


General fund: $1.082353

Bond fund: $.0139759

Special building fund: $0.0

District total: $1.222112


General fund: $1.069933

Bond fund: $.0129274

Special building fund: $0.019830

District total: $1.219037


General fund: $1.034815

Bond fund: $0.123072

Special building fund: $0.029988

District total: $1.187875

The school district's second largest source of receipts is property tax. The largest single source of revenue is state aid.

The history of the school district's state aid receipts is as follows:

2000-2001: $4,287,555

2001-2002: $4,077,840

2002-2003: $4,147,729

2003-2004: $4,158,900

2004-2005: $3,994,062

2005-2006: $4,830,744

2006-2007: $4,817,084

2007-2008: $5,614,242

2008-2009: $5,748,521

2009-2010: $6,066,262

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