Auditor gives District 196 clean bill of health
The Rosemount-Apple Valley-Eagan School District received a clean bill of health this month during its annual audit.
During his Oct. 22 presentation, auditor Bill Lauer of Malloy Montague, Karnowski, Radosevich and Co. commended the district for its sound financial controls.
“It’s a very clean audit report,” Lauer said. “Your general fund remains in sound financial condition.”
Lauer noted that District 196 continues to remain under budget and spend less than other school districts on average. In fiscal 2012, District 196 spent $11.9 million from its general fund — money that is not reserved for specific services. By comparison, school districts statewide spent $12.3 million on average, while those in the metro alone spent $12.9 million.
Lauer did note a few areas in which District 196 could improve.
The district struggled a bit last year to ensure internal controls were in place when collecting cash outside the business office. The board took action earlier this fall to remedy the issue by paying for a service that will enable parents to pay fees online.
Lauer also recommended the district close two inactive student activity accounts.
The district’s fund balance was another issue noted by Lauer. Its fund balance by June 30, 2012, was $39 million, which is 14.6 percent of the district’s general fund. This is a smaller percentage of the general fund than the state average of 20.8 percent.
Lauer noted that the district has struggled since 2011 to have adequate cash flow and investments due to delayed state aid payments and declining property taxes.
“Recent increases in state aid can help make up for the losses in earlier years,” he said referring to the per pupil funding formula increase recently passed by the Legislature.
District 196 has a history of sound financial reporting. For nearly a decade, it has every year received the Excellence in Financial Reporting award from the Association of School Business Officials International for its clean audit reports. Clean reports enable the district to achieve a better credit rating and lower interest rates on loans.
