Audit shows Sidney Public Schools operating in the black

As the year draws to a close, the primary focus of Monday’s School Board meeting was the 2012-2013 audit completed by Rauner and Associates. The Nebraska Department of Education and state statutes require that all schools complete annual audits.

Julie Peetz, a representative from Rauner and Associates, came to the meeting to walk the board through the year’s finances.

The audit revealed that Sidney Public Schools’ funds have remained fairly constant over the last few years. The beginning and ending positions showed a net increase of $350,335 between the cash equivalents, cash with fiscal agents and beginning ending investments.

Federal money has decreased greatly over the last two years while state aid has remained fairly constant, which makes Sidney Public Schools luckier than most. Some smaller schools have been experiencing a yearly decrease in state aid.

The depreciation fund ended the year with $711,000. Members of the board asked what money from that fund could be spent on, and Peetz made it clear that the money could only be allocated for its initial purpose, such as capital outlay, building expenses and vehicle expenses.

The net income in the school lunch fund was $28,671. Charting out the last five years of this fund brought to light that in 2008-2009, Sidney Public Schools experienced operating loss, but now they are breaking even and even recording an income. Peetz explained that some of the ten other schools Rauner and Associates do audits for have to move revenue from the general fund to the school lunch fund to support it.

Sidney Public Schools had net profit in the majority of the funds except for employee benefits, which depends on the timing of the employees submitting for their 125-plan, according to Peetz.

Rauner and Associates also looked at the budget to see if the school district was compliant with the document that was accepted, as well as cash on hand. Peetz said that they recommend that there be three months of operation on hand, so they took the general fund, checking account, cash for fiscal agent and investments to find that there were 4.23 months of cash reserve in case of an emergency.

“The audit is mostly all cash-basis, but it’s modified. The Nebraska Department of Ed mandates that and the only thing that’s modified that is included in addition is cash for fiscal agent, so we’re able to say that that amount sitting at the Cheyenne County Treasurer that you’re getting on September 15, is available to you and is included as an asset. That’s why my number’s a little bit higher,” Peetz explained to the board.

When looking at the breakdown, the board discovered that the tax levy on the bonds decreased by 11 percent over the last year.

“It [the year] was favorable. As I said, there was a loss in the general fund, but you were doing things and there was a big transfer to the depreciation fund,” Peetz said.