Audit Summary June 30, 2019 Eastern Upper Peninsula Intermediate - PowerPoint PPT Presentation

Audit Summary June 30, 2019

Eastern Upper Peninsula Intermediate School District June 30, 2019 Statement of Net Position Governmental Activities Business ‐ type Activities Total Variance $ Variance % 2019 2018 2019 2018 2019 2018 Assets Current Assets $ 11,405,562 $ 9,537,521 $ 795,887 $ 807,232 $ 12,201,449 $ 10,344,753 $ 1,856,696 15.2% Net Capital Assets 1,599,217 1,658,145 362,719 260,073 1,961,936 1,918,218 43,718 2.2% Total Assets 13,004,779 11,195,666 1,158,606 1,067,305 14,163,385 12,262,971 1,900,414 13.4% Deferred Outflows of Resources 8,254,794 4,524,060 ‐ ‐ 8,254,794 4,524,060 3,730,734 45.2% Liabilities Current Liabilities 5,003,053 4,211,303 795,834 807,179 5,798,887 5,018,482 780,405 13.5% Long Term Liabilities 874,103 1,100,928 ‐ ‐ 874,103 1,100,928 (226,825) ‐ 25.9% Net pension liability 17,555,454 14,338,832 ‐ ‐ 17,555,454 14,338,832 3,216,622 18.3% Net pension liability 4,829,510 4,896,972 ‐ ‐ 4,829,510 4,896,972 (67,462) ‐ 1.4% Total Liabilities 28,262,120 24,548,035 795,834 807,179 29,057,954 25,355,214 3,702,740 12.7% Deferred Inflows of Resources 2,484,331 951,559 ‐ ‐ 2,484,331 951,559 1,532,772 62% Net Position Net investment in capital assets 1,320,618 1,292,539 362,719 260,073 1,683,337 1,552,612 130,725 7.8% Restricted 5,830,464 4,721,110 ‐ ‐ 5,830,464 4,721,110 1,109,354 19.0% Unrestricted (16,637,960) (15,793,517) 53 53 (16,637,907) (15,793,464) (844,443) ‐ 5.1% Total Net Position $ (9,486,878) $ (9,779,868) $ 362,772 $ 260,126 $ (9,124,106) $ (9,519,742) $ 395,636 4.3% MD & A Highlights • Eastern Upper Peninsula Intermediate School District again received an Unmodified Opinion on the District’s audited financial statements – the highest opinion an auditor can give. • No Significant Deficiencies or Material Weaknesses were found in the District’s internal controls. • Eastern Upper Peninsula Intermediate School District also received an Unmodified Opinion on the District’s Federal Compliance (Single) Audit. This is especially significant this year as findings on the Federal audit impact the risk level of the auditee and the amount of work (& dollars) required to audit the funds. • The District increased its total Net Position by $395,636 during the 2018 ‐ 19 fiscal year to a total deficit of $9,124,106. The District's Net pension liability increased by $3,216,622, net of deferred outflows and inflows. The District's Net OPEB liability decreased by $67,462, net of deferred outflows and inflows. • Unrestricted Net Assets, a part of the $9.1 million deficit, decreased during 2018 ‐ 19 by $844,443 to a deficit of $16.6 million at June 30, 2019. This reflects the District’s financial strength as a whole , beyond just the General fund.

Eastern Upper Peninsula Intermediate School District June 30, 2019 Statement of Activities Governmental Activities Business ‐ type Activites Total Variance $ Variance % 2019 2018 2019 2018 2019 2018 Program Revenues Charges for services $ 4,844,569 $ 4,690,016 $ 775,314 $ 755,053 $ 5,619,883 $ 5,445,069 $ 174,814 3.2% Capital grand and contributions 9,568,377 8,950,846 177,407 $ 119,588 9,745,784 9,070,434 675,350 7.4% General Revenues Property taxes 5,260,452 5,174,488 ‐ ‐ 5,260,452 5,174,488 85,964 1.7% State school aid, unrestricted 393,456 374,616 ‐ ‐ 393,456 374,616 18,840 5.0% Federal medicaid reimbursement 28,925 16,176 ‐ ‐ 28,925 16,176 12,749 78.8% Investment earnings 123,898 49,956 ‐ ‐ 123,898 49,956 73,942 148.0% Other 82,913 67,156 321,840 223,972 404,753 291,128 113,625 39.0% Total Revenues 20,302,590 19,323,254 1,274,561 1,098,613 21,577,151 20,421,867 1,155,284 1492.9% Expenses Instruction 6,446,185 3,163,009 ‐ ‐ 6,446,185 3,163,009 3,283,176 103.8% Supporting services 13,100,286 15,026,675 ‐ ‐ 13,100,286 15,026,675 (1,926,389) ‐ 12.8% Community services 451,120 218,012 ‐ ‐ 451,120 218,012 233,108 106.9% Interest expense 12,008 2,950 ‐ ‐ 12,008 2,950 9,058 307.1% Special education transportation ‐ ‐ 1,171,915 1,072,265 1,171,915 1,072,265 99,650 9.3% Total Expenses 20,009,599 18,410,646 1,171,915 1,072,265 21,181,514 19,482,911 1,698,603 8.7% Increase in net position 292,991 912,608 102,646 26,348 395,637 938,956 (543,319) ‐ 57.9% Net Position ‐ Beginning of Year (9,779,869) (10,692,476) 260,126 233,778 (9,519,743) (10,458,698) 938,955 9.0% Net Position ‐ End of Year $ (9,486,878) $ (9,779,868) $ 362,772 $ 260,126 $ (9,124,106) $ (9,519,742) $ 395,636 4.2%

Eastern Upper Peninsula Intermediate School District June 30, 2019 General Fund Analysis FUND BALANCE 5 ‐ YEAR TREND 1408225 $1,200,000 $1,000,000 $800,000 $600,000 669,417 $400,000 $200,000 $ ‐ 2015 2016 2017 2018 2019 General Fund Highlights • The District's General Fund balance increased by $119,795 to $1,111,923 at June 30, 2019. • The General Fund fund balance now represents 19.83% of the 2019 ‐ 20 budgeted expenditures. Maintaining a fund balance of at least 10 to 20 percent of the ensuing year’s expenditure budget is advisable for the Eastern Upper Peninsula Intermediate School District. This gives the District more stable operating funds during the year, helps to avoid or reduce the necessity of borrowing for short ‐ term cash flow purposes and, acts as a buffer against the uncertainty of state aid revenues accruing to the District. • Minimal adjustments were required to adjust the District’s financial statements to those presented in the Annual Financial Report. This ensures that the Board is receiving good financial information throughout the year to make necessary budgetary decisions.

Eastern Upper Peninsula Intermediate School Distr June 30, 2019 GENERAL FUND EXPENDITURES ‐ BUDGET VS. ACTUAL BASIC PROGRAMS BUDGET VS. ACTUAL 3,500,000 3,000,000 100 2,500,000 2,000,000 1,500,000 1,000,000 500,000 ‐ ‐ ‐ ‐ Added Needs Pupil services Instructional staff General Business services Operation and Central services Community services Interdistrict Basic Programs services administrative maintenance services Budget Actual services Budget Actual OTHER EXPENDITURES Expenditures Budget Actual Variance ($) Variance (%) BUDGET VS. ACTUAL 2,661 - Added Needs 2,661 #DIV/0! 178,263 147,516 Pupil services 30,747 20.84% 2,939,856 2,544,359 Instructional staff services 395,497 15.54% 300,000 437,516 423,107 General administrative services 14,409 3.41% 242,958 250,000 444,795 419,404 Business services 25,391 6.05% 209,716 120,911 110,317 200,000 Operation and maintenance services 10,594 9.60% 487,371 376,230 150,000 Central services 111,141 29.54% 242,958 209,716 Community services 33,242 15.85% 100,000 Interdistrict 1,256,272 1,147,241 109,031 9.50% 50,000 2,661 ‐ 6,110,603 5,377,890 Total Expenditures: 732,713 13.62% ‐ Added Needs Community services Budget Actual

Eastern Upper Peninsula Intermediate School District June 30, 2019 General Fund 2019 Expenditures 21% Supporting services General Admin Services Business Services 50% 4% Operation and Maintenance Central services 7% Community services Interdistrict 2% 8% 8% General Fund 2018 Expenditures 2% 0% 23% Basic programs Added Needs Supporting services General Admin Services 2% 45% Business Services Operation and Maintenance 8% Central services Community services Interdistrict 4% 8% 8%

Eastern Upper Peninsula Intermediate School District June 30, 2019 General Fund General Fund Revenue by Category YTD 2019 Revenue by Category YTD 2018 Property Taxes Interdistrict Property Taxes Interdistrict 9% Other local sources Other local sources 9% sources 3% sources 12% 16% 4% Non ‐ educational Non ‐ Federal Sources sources… educational 20% sources 1% Federal Sources 8% State Sources 55% State Sources 62%