FRUITLAND — Even with COVID-19 continuing to add to its list of expenditures, the Fruitland School District is managing its finances well. That’s according to audited 2020-21 school year financial statements, as reported by Quest CPA’s to the Fruitland School District Board of Trustees during its regular meeting on Sept. 13.
Dan Coleman, a partner at Quest CPAs, conducted and presented the audit’s findings for the year ended June 30. This was one of many he would present that evening.
“This is … my fourth [audit] tonight,” Coleman told the board. “The audit went well. It’s been a busy year for school districts, Fruitland had five new funds that were added this last year, because of the coronavirus money that came out, both from the feds and from the state.”
Following is a sample of its findings.
• The report notes that management has chosen not to adopt the provisions of Governmental Accounting Standards Board statement 75, ‘Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions,’ resulting in a qualified opinion from Coleman.
The report reads, in part, “Accounting principles generally accepted in the United States of America require recognition and measurement of an asset or liability, deferred outflows of resources, deferred inflows of resources, and expenses related to the other postemployment benefits as well as certain note disclosures and required supplementary information. The amount by which the departure would affect net position, assets, liabilities, deferred outflows of resources, deferred inflows of resources, expenses, note disclosures, and required supplementary information has not been determined.”
• Other than not using the above mentioned provisions, the report found that the district’s financial statements fairly present the position of each of its major funds. Thus Coleman gives the district an ‘unmodified opinion’ overall, the best possible.
Following is a summary of the district’s assets and liabilities, according to the report.
• Cash and investments: $6,438,587
- Local sources: $374,406
- State sources: $193,230
- Federal sources: $150,903
• Inventory: $36,610
Total current assets: $7,193,736
Total concurrent assets: $15,160,456
• Total deferred outflows of resources: $1,876,673
Total assets and deferred outflows of resources: $24,230,865
• Total current liabilities: $2,324,077
- Salaries and benefits payable: $1,238,369
- Long-term debt, current: $944,874
• Total noncurrent liabilities: $8,426,837
- Long-term debt, noncurrent: $3,657,384
- Net pension liability: $4,769,453
• Total deferred inflows of resources: $155,733
Total liabilities and deferred inflows of resources: $10,906,647
• Net investment in capital assets: $10,504,441
• Restricted funds:
- Special programs: $1,102,193
- Debt service: $1,593,565
- Capital projects: $984,339
• Unrestricted funds: $860,320
• Total net position: $13,324,218
• Total liabilities, deferred inflows and net position: $24,230,865
• Net changes in fund balances - total governmental funds: $864,756
• Change in net position of governmental activities: $452,561
Child nutrition fund
Coleman noted a general fund increase of $350,000, for a total of $2,105,788.
“That is about a 2.6-month operating reserve; Of course, we recommend a month-and-a-half to three months. So, you guys are right there in the middle of our recommendation,” said Coleman.
He also noted that the child nutrition fund did well in 2021, holding at $533,009.
“Most schools that I look at have done really well, but I think yours has outperformed all the other ones I’ve looked at, at this point.”
He did point out, though, that districts with funds that over-perform may be asked to plan to spend those balances down by the Idaho State Department of Education’s child nutrition programs.
The district’s bond retirement fund saw total revenues of $1,018,512 and expenditures of $995,150. The end balance is $1,593,565, up from $1,570,203 the year prior.
Plant facilities fund
Total revenues for the plant facilities fund were $320,760 in 2021. With expenditures totaling $145,338, the fund went from $669,634 last year to $845,056 this year.
Trustee Layne Howell moved to accept the audit results, seconded by Trustee Debbie Hurrle. The vote was 3-0 in favor.
Quest CPAs is the largest school audit firm in Idaho, according to the Idaho School Boards Association’s website.
For more information about the statements, call the district office at (208) 452-3595.