“The school is in good financial position again this year. It’s good to get back to a healthy fund balance.”
Those are the comments from Larry Weeks, auditor from EideBailly, the Sibley East School District’s accounting firm. Weeks presented the report to the Board of Education Monday.
Weeks said that the school district is “getting close” to having a large enough fund balance so that it would not need to issue aid anticipation certificates. Sibley East’s undesignated fund balance, as of June 30, 2007, is $1,149,124. Weeks said that district would need at least $1,447,000 as an undesignated fund balance in order to cash flow.
He also noted that the district’s fund balance for operating capital of $182,901 is “a small balance for two fairly old buildings.”
According to the audit, revenues exceeded expenses for the year ended June 30, 2007. Revenues totaled $12,096,017, while expenses totaled $12,000,421.
The balance for severance payable, as of June 30, 2007, was $2,196,093. This reflects health insurance costs until age 65.
One issue discovered in the audit is that the Sibley East School District is holding tradable stocks as an investment in the trust fund, used for scholarships. According to Minnesota Statutes, tradable stock is not an allowable type of investment. The auditing firm recommended that the district sell the stock and obtain an acceptable investment in accordance with Minnesota Statutes.