Clean audit for District 16

District 16 has once again received a clean opinion in an audit for the fiscal year ending June 30, 2012.

Aaron Nielson of Malloy, Montague, Karnowski, Radosevich & Co., a certified public accounting firm from Minneapolis, delivered a report to the Spring Lake Park School Board on the district’s annual audit in a management report.

The report is intended to communicate relevant information regarding the financing of public education in Minnesota.

“We reported no deficiencies involving the district’s internal control over financial reporting that we consider to be material weaknesses,” the report states.

Also, no findings were reported by MMKR on internal controls over compliance in testing of major federal programs and in the firm’s testing of the district’s compliance with Minnesota laws and regulations.

“So, exactly what you’re looking for in our testing results for the year… 2012,” Nielson said.

Independent audit 

MMKR was hired by District 16 to conduct an independent scrutiny into its financial practices. The company has conducted the district’s audits for the last 10 years, said Amy Schultz, District 16 business director, preceding Nielson’s report and remarks at a school board meeting earlier this year.

School districts are required to undergo an annual audit in accordance with provisions under U.S. Government Auditing Standards of the Federal Single Audit Act and the U.S. Office of Management.

“I feel the audit went very well,” Schultz said in an email to the Life. “A ‘clean’ audit is always the result you look for. It signifies that we have good controls in place and are following the guidelines established for school districts.”

Nielson, at a January board meeting, reported the general fund operating revenues for 2012 at $50.5 million, 4.6 percent more than anticipated in this year’s budget.

On the expenditure side, he reported the district’s revenues at $46.6 million, 2.69 percent below appropriations approved for 2012.

An increase in the district’s enrollment brought in more state education revenue, according to Schultz.

Expenditures came in under budget mostly in the severance and utilities area.

“Fewer staff retired last year and fewer staff qualify for severance as those benefits have been phased out,” Schultz wrote in the email. “The warmer winter with less snow resulted in lower energy and snow removal costs.”

The district’s food and community services budget ended with a fund balance of about 5.6 percent of their expenditures.

Overall, the district’s financial position has improved.

“As you can see, they’ve been operating at a very clean fund balance level for several years,” Nielson said.

The district will submit the report for the Certificate of Excellence in Financial Reporting determined by review of the Association of School Business Officials, International, according to Schultz.

District 16 operates on a $50.9 million general fund budget for 2012-13.

For more information on the audit, visit the District 16’s website at

Elyse Kaner is at [email protected]