MARYSVILLE EXEMPTED VILLAGE SCHOOL DISTRICT UNION COUNTY SINGLE AUDIT ...

[Pages:77]MARYSVILLE EXEMPTED VILLAGE SCHOOL DISTRICT UNION COUNTY

SINGLE AUDIT

FOR THE YEAR ENDED JUNE 30, 2006

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MARYSVILLE EXEMPTED VILLAGE SCHOOL DISTRICT UNION COUNTY

TABLE OF CONTENTS

PAGE

Independent Accountants' Report................................................................................................................. 1

Management's Discussion and Analysis....................................................................................................... 3

Basic Financial Statements:

Statement of Net Assets ...................................................................................................................... 13

Statement of Activities ......................................................................................................................... 14

Balance Sheet - Governmental Funds................................................................................................. 16

Reconciliation of Total Governmental Fund Balances To Net Assets of Governmental Activities ......................................................................................... 18

Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds ......................................................................................................................... 20

Reconciliation of the Statement of Revenues, Expenditures And Changes in Fund Balances of Governmental Funds To the Statement of Activities .......................................................................................................... 24

Statement of Revenues, Expenditures and Changes in Fund Balance ? Budget and Actual (Non-GAAP Budgetary Basis) General Fund ................................................................................................................................... 25

Statement of Net Assets - Proprietary Funds ...................................................................................... 26

Statement of Revenues, Expenses and Changes in Fund Net Assets Proprietary Funds .............................................................................................................................. 27

Statement of Cash Flows - Proprietary Funds..................................................................................... 28

Statement of Net Assets - Fiduciary Funds ......................................................................................... 29

Statement of Changes in Net Assets Fiduciary Fund.......................................................................... 30

Notes to the Basic Financial Statements ............................................................................................. 31

Schedule of Federal Awards Receipts and Expenditures........................................................................... 61

Notes to Schedule of Federal Awards Receipts and Expenditures ............................................................ 62

Independent Accountants' Report On Internal Control Over Financial Reporting and On Compliance and Other Matters Required By Government Auditing Standards............................................................................................................... 63

Independent Accountants' Report on Compliance with Requirements Applicable To Major Federal Programs and Internal Control Over Compliance In Accordance With OMB Circular A-133 .......................................................................... 65

Schedule of Findings................................................................................................................................... 67

Schedule of Prior Audit Findings................................................................................................................. 71

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INDEPENDENT ACCOUNTANTS' REPORT

Marysville Exempted Village School District Union County 1000 Edgewood Drive Marysville, Ohio 43040

To the Board of Education:

We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Marysville Exempted Village School District, Union County, Ohio, (the District) as of and for the year ended June 30, 2006, which collectively comprise the District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Comptroller General of the United States' Government Auditing Standards. Those standards require that we plan and perform the audit to reasonably assure whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Marysville Exempted Village School District, Union County, Ohio, as of June 30, 2006, and the respective changes in financial position and where applicable, cash flows, thereof and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February 12, 2007, on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. While we did not opine on the internal control over financial reporting or on compliance, that report describes the scope of our testing of internal control over financial reporting and compliance and the results of that testing. That report is an integral part of an audit performed in accordance with Government Auditing Standards. You should read it in conjunction with this report in assessing the results of our audit.

35 N. Fourth St. / Second Floor / Columbus, OH 43215-3612 Telephone: (614) 466-3402 (800) 443-9275 Fax: (614) 728-7199

auditor.state.oh.us

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Marysville Exempted Village School District Union County Independent Accountants' Report Page 2

Management's Discussion and Analysis is not a required part of the basic financial statements but is supplementary information accounting principles generally accepted in the United States of America requires. We have applied certain limited procedures, consisting principally of inquiries of management regarding the methods of measuring and presenting the required supplementary information. However, we did not audit the information and express no opinion on it. We conducted our audit to opine on the financial statements that collectively comprise the District's basic financial statements. The schedule of federal awards receipts and expenditures is required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. We subjected the schedule of federal awards receipts and expenditures to the auditing procedures applied in the audit of the basic financial statements. In our opinion, this information is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Mary Taylor, CPA Auditor of State February 12, 2007

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MARYSVILLE EXEMPTED VILLAGE SCHOOL DISTRICT

Management's Discussion and Analysis For the Fiscal Year Ended June 30, 2006

Unaudited

The discussion and analysis of Marysville Exempted Village School District's financial performance provides an overall review of the District's financial activities for the fiscal year ended June 30, 2006. The intent of this discussion and analysis is to look at the District's financial performance as a whole; readers should also review the financial statements and notes to the basic financial statements to enhance their understanding of the District's financial performance.

FINANCIAL HIGHLIGHTS

Key financial highlights for 2006 are as follows:

In total, net assets increased $5,577,857. Net assets of governmental activities increased $5,729,572, which represents a 72.2% increase from 2005. Net assets of business-type activities decreased $151,715 or 121.2% from 2005.

General revenues accounted for $56,519,319 in revenue or 92.6% of all revenues. Program specific revenues in the form of charges for services and grants and contributions accounted for $4,543,321 or 7.4% of total revenues of $61,602,640.

The District had $53,254,532 in expenses related to governmental activities; only $2,464,785 of these expenses were offset by program specific charges for services, grants or contributions. General revenues were adequate to provide for these programs.

Among major funds, the general fund had $43,537,141 in revenues and $41,737,408 in expenditures. The general fund's fund balance increased by $1,719,668 to ending balance of $1,361,098. The increase is a result of not transferring monies to support the proprietary funds as was done in 2005.

OVERVIEW OF THE FINANCIAL STATEMENTS

This annual report consists of two parts ? management's discussion and analysis and the basic financial statements. The basic financial statements include two kinds of statements that present different views of the District:

These statements are as follows:

1. The Government-Wide Financial Statements ? These statements provide both long-term and short-term information about the District's overall financial status.

2. The Fund Financial Statements ? These statements focus on individual parts of the District, reporting the District's operations in more detail than the government-wide statements.

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data.

DRAFT

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MARYSVILLE EXEMPTED VILLAGE SCHOOL DISTRICT

Management's Discussion and Analysis For the Fiscal Year Ended June 30, 2006

Unaudited

Government-wide Statements

The government-wide statements report information about the District as a whole using the accrual basis of accounting similar to that which is used by most private-sector companies. The statement of net assets includes all of the District's assets and liabilities. This basis of accounting considers all of the current fiscal year's revenues and expenses regardless of when cash is received or paid.

These statements report the District's net assets and changes in those assets. The change in net-assets is important because it tells the reader whether the financial position of the District as a whole has increased or decreased from the prior fiscal year.

Over time, increases or decreases in the District's net assets are an indicator of whether its financial health is improving or deteriorating, respectively.

To assess the overall health of the District you need to consider additional nonfinancial factors such as the property tax base, current property tax laws, student enrollment growth and facility conditions.

The government-wide financial statements of the District are divided into two categories:

Governmental Activities ? Most of the District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation and extracurricular activities.

Business-Type Activities ? These services are provided on a charge for goods or services basis to recover all of the expenses of the goods or services provided. The District's food service, uniform school supplies, rotary and day care are reported as business activities.

Fund Financial Statements

The fund financial statements provide more detailed information about the District's major funds; while the District uses many funds to account for its multitude of financial transactions, the fund financial statements focus on the District's most significant funds. Funds are accounting devices that the District uses to keep track of specific sources of funding and spending for particular purposes.

Governmental Funds ? Most of the District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the District's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or less financial resources that can be spent in the near future to finance educational programs.

Proprietary Funds ? Proprietary funds use the same basis of accounting as business-type activities; therefore, these statements will essentially match.

DRAFT

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