What does your financial report say about your district

Among the many ways a school district can demonstrate its financial and organizational prowess is through its financial reports. With several of our CPAs involved in judging certificate programs for the Association of School Business Officials, we understand all the components of outstanding financial reports. Following are some simple ways to improve yours:

• Reconcile UFARS and EDRS numbers
  While the Uniform Financial Accounting and Reporting Standards (UFARS) is your primary accounting system, expenditures must match up with those submitted via the Electronic Data Reporting System (EDRS).
  
• Accurately report student activities
  This budget category is so frequently misrepresented that the Minnesota Department of Education requires a separate student activity audit. These funds are defined as co-curricular or extra-curricular school-related student activities outside the regular classroom that directly add value to the formal curriculum. They're also distinguished by the fact that students and their sponsors--not the school board--manage the activities and relationed financial decisions. Some incorrect expenses commonly included in this budget category include:
  
  
  • Coaches salaries
    Coaching fees must come out of your general fund, although they can be reimbursed by a student activity fund.
    
    
  • Yearbook
    This is not considered a student activity if you pay an outside copany to produce it.
    
    
  • Vending machines
    While a student organization may be in charge of vending machines, typically the school board determines how proceeds should be distributed. Therefore, vending machines should be considered a district activity.
    
    
• Provide a popular report, in addition to the CAFR
  While the Comprehensive Annual Financial Report is required by law its many details can be confusing to citizens, and even school board members. A popular report conveys consolidated financial information in easy-to-understand charts, graphs and simple language. We can help you develop a popular report as well as a school board presentation so district leaders understand your financial position and trends.

If you have questions about your reporting or are coming up on the five- year rotation cycle for an auditing partner, contact one of our government experts.