2009 Audit Report Highlights

Type of Audit Comprehensive Annual Financial Report (CAFR) -Introductory Section -Financial Section -Statistical Section -Single Audit Section

Transmittal Letter P. 1 – Management Responsibility P. 2 – Debt Administration P. 3 – Cash Management P. 3-5 – Major Initiatives and Achievements Pages INTRODUCTORY SECTION

Certificates of Achievement 1983 Association of School Business Officials International – only 14 Iowa School Districts received this in Governmental Finance Officers Association of the United States and Canada – only 9 Iowa School Districts received this in 2008 Pages 7-8

Management’s Discussion & Analysis 2009 Financial Highlights –All funds total net asset increased by $344,138 (p. 19) –General Fund Balance increased by $343,709 –Redemption of $5,425,000 of 1998 and 1999 bonds from the Capital Project Fund –School Nutrition Fund Balance decreased by $71,849 due to cost of closing down the Junior High cafeteria and the start up, renovation, and addition to their new cafeteria –Child Care Fund Balance increased by $5,698 –Student Activity Fund decreased by $25,750 including $25,461 from the high school athletics fund balance for the second year in a row Page 15 FINANCIAL SECTION

Economic Factors – District Future Local, State and National Economy Possible Decline in Enrollment Page 24

Governmental Activities General Fund Student Activity Fund Debt Service Capital Projects – PPEL, Sales Tax Management Fund Page 26-31

Governmental Funds General Fund Undesignated Fund Balance ,422,773 3,359,636 3,629,572 Page 28

Governmental Funds (cont) Undesignated Fund Balance Management Fund788,673926,035 1,001,797 Activity Fund353,424321, ,542 Physical Plant &593,350631, ,061 Equipment Fund (PPEL) Page 28

Governmental Funds (cont) Capital Projects Fund Undesignated Fund Balance Page 28 Sales Tax 6,317,073 2,467,166 2,888,

Business Type Activities School Nutrition Day Care Internal Services – Self-Funded Health Page 32-36

Business-Type Funds Undesignated Fund Balance Daycare 181, , ,480 School 508, , ,650 Nutrition Page 32

Internal Service Fund Undesignated Fund Balance Self-Funded 2,123,051 1,852,846 1,092,325 Health Page 32

Agency Fund Due to Other Groups ,435 12,129 11,716 Page 36

Pages P Financial Trends P Revenue Capacity P Debt Capacity P Demographic and Economic P Operating Information P Miscellaneous STATISTICAL SECTION

P. 69 Taxable Value Last Ten Years P. 83Free and Reduced Last Ten Years P School Building Last Ten Years P. 92Official Enrollment by Grade Last Ten Years P. 96Average Salaries by Education P. 97Settlement Trends Last Ten Years P. 98Solvency Ratio Last Ten Years STATISTICAL SECTION (cont)

Federal Awards Total Federal Awards$1,445,979 Pages Title IPages 101

Schedule of Findings and Questioned Costs

Part II Findings Related to Basic Financial Statements A.Inventory Controls in Place - Building stockpiling supplies – same audit comment from 2006 B.Clothing Purchased for Staff - Clothing should be taxable or staff must pay for clothing C.Additional Compensation - Cell phones – documentation will be required - Non-overnight travel will become taxable and the policy will be reviewed Page 106

Part III Findings and Questioned Cost for Federal Awards No Matters of Non-Compliance Page 107

Part IV Statutory Findings Related to Required Statutory Reporting Page 109 D. Business Transaction 1) Transparency of transactions for purchases 2) Conflict of interest for Bill Hagge