By Megan Kelley
Editor
mkelley@mihomepaper.com
INDEPENDENCE TWP. — During its meeting on Nov. 11, the Clarkston Community Schools Board of Education received a presentation of its annual audit report from Hungerford, Aldrin, Nichols and Carter.
The district received an unmodified opinion on its audit of financial records for the fiscal year ending on June 30 of this year.
“Essentially, it’s the highest passing grade for the audit, the best kind of audit opinion that you can get and as well, the only audit opinion that the Michigan Department of Education accepts,” said Taylor Boonenberg, representative for Hungerford, Aldrin, Nichols and Carter. “It’s really the highest level of assurance that the financial statements are free from material misstatement and that they’re presented in accordance with accounting principles generally accepted in the United States.”
The report also shows that there were no findings regarding internal controls over financial reports, no material noncompliance with applicable laws and regulations and no new accounting pronouncements.
In the district’s general fund, total assets round out to $47.58 million with total liabilities equating to about $17.35 million.
The total fund balance in the general fund sits at about $30.23 million and total liabilities and fund balance is about $47.58 million.
Total revenues for the 2023-24 fiscal year was $131,033,299, a decrease of a little under $450,000 from the previous fiscal year. Expenditures, however, increased by about $5.5 million, equating to $128,918,441 in total expenditures for the fiscal year. Other financing sources totaled $2,932,901 for a net change in fund balance of $5,047,759.
“Pretty positive net change in fund balance going the right way every year that we like to see, so building up that fund balance to help cover any additional unknowns in the future. And then as well, just kind of showing a real great management of financial resources there from fiscal year to fiscal year,” Boonenberg said.
According to the report, a majority of revenue the district receives is from state sources (state school aid) with 80.3% of revenue coming from the state. Local sources (property tax revenues and interest earnings on cash and investments held) make up 9.8%, interdistrict sources (resources that come from the Intermediate School District) at 6% and federal sources (the nutrition program, the special education cluster and other federal grants) at 3.9%.
As far as expenditures, 61.4% is spent on instruction.
“Not really anything alarming or shocking with that percentage. Pretty standard there. You know, what are we here to do? Provide instruction to the kids. So, nothing really alarming with that percentage there,” said Boonenberg.
Additionally, 36.9% is spent on supporting services. The last bit of expenditures goes to 1.2% debt service at 1.2% and community services at .5%.
Boonenberg also highlighted the district’s five year trend which shows a positive uptick in fund balance.
“So, pretty solid financial management resources there building up that fund balance for any future costs as we move into fiscal 2year 025 and beyond,” said Boonenberg.
The district also received an unmodified opinion on its federal compliance audit meaning the district had compliance for each major program. The report found no noncompliance for internal controls over compliance.
The federal compliance audit showed a total of $6,543,745 in total federal expenditures.
“Every year I’ve been on the board, we have received an unmodified opinion, the highest level of audit that is possible and that is a real testament of Mrs. (Mary Beth) Rogers (Executive Director of Business Services) and the department to make sure that our financial records are in extremely good order,” said board President Greg Need.
The board approved the audit report unanimously.