Highlights of the 2010 Audit Report Highlights of the 2010 Audit Report

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

Transmittal Letter P. 1 – Management Responsibility P. 1 – Management Responsibility P. 2 – Debt Administration P. 2 – Debt Administration P. 3 – Cash Management P. 3 – Cash Management P. 4-5 – Major Initiatives and Achievements P. 4-5 – 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 2009 Page 7

Management’s Discussion & Analysis 2010 Financial Highlights All funds total net asset decreased by $1,140,293 (p. 17) All funds total net asset decreased by $1,140,293 (p. 17) General Fund Balance decreased. Undesignated Fund Balance decreased by $914,835 while Restricted Fund Balance increased by $130,012. (p. 26) General Fund Balance decreased. Undesignated Fund Balance decreased by $914,835 while Restricted Fund Balance increased by $130,012. (p. 26) Cash Balance Reduction of $689,260 due to State Aide Reductions. Cash Balance Reduction of $689,260 due to State Aide Reductions. Decrease in Nutrition Fund Balance of $20,474 as the result of $9,325 in operating loss and $11,149 of net long-term liabilities for OPEB. Decrease in Nutrition Fund Balance of $20,474 as the result of $9,325 in operating loss and $11,149 of net long-term liabilities for OPEB. Decrease in Child Care Fund Balance of $4,534 as the result of $2,810 in operating loss and $1,724 of net long- term liabilities for OPEB. Decrease in Child Care Fund Balance of $4,534 as the result of $2,810 in operating loss and $1,724 of net long- term liabilities for OPEB. Page 13 FINANCIAL SECTION

Economic Factors – District Future Local, State and National Economy Local, State and National Economy Possible Decline in Enrollment Possible Decline in Enrollment Election of a Republican Governor Election of a Republican Governor Election of a Republican House Election of a Republican House Page 22

Governmental Activities General Fund General Fund Student Activity Fund Student Activity Fund Debt Service Debt Service Capital Projects – PPEL, Sales Tax Capital Projects – PPEL, Sales Tax Management Fund Management Fund Page 24-29

Governmental Funds General Fund Undesignated Fund Balance ,359,636 3,629,572 2,714,737 3,359,636 3,629,572 2,714,737 Page 26

Governmental Funds (cont) Undesignated Fund Balance Management Fund926,035 1,001,7971,082,629 Activity Fund321, , ,465 Physical Plant &631, ,061 1,122,783 Equipment Fund Equipment Fund (PPEL) (PPEL) Page 26

Governmental Funds (cont) Capital Projects Fund Undesignated Fund Balance Page 26 Sales Tax 2,467,166 2,888,503 2,205,

Business Type Activities School Nutrition School Nutrition Day Care Day Care Internal Services – Self-Funded Health Internal Services – Self-Funded Health Page 30-34

Business-Type Funds Undesignated Fund Balance Daycare 211, , ,630 School531, , ,448 Nutrition Page 32

Internal Service Fund Undesignated Fund Balance Self-Funded 1,852,846 1,092, ,748 Self-Funded 1,852,846 1,092, ,748 Health Health Page 30

Agency Fund Due to Other Groups ,129 11,716 11,459 Page 34

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

P. 67 Taxable Value Last Ten Years P. 81Free and Reduced Last Ten Years P School Building Last Ten Years P. 90Official Enrollment by Grade Last Ten Years P. 94Average Salaries by Education P. 95Settlement Trends Last Ten Years P. 96Solvency Ratio Last Ten Years STATISTICAL SECTION (cont)

Federal Awards Total Federal Awards$2,766,201 Total Federal Awards$2,766,201 Pages Pages Title IPages 99 Title IPages 99

Schedule of Findings and Questioned Costs

Part II Findings Related to Basic Financial Statements - Internal Control Deficiencies A) Invoice dated after purchase order/policies not followed – Policies and procedures are in place – Personnel matter. Page

Part III Findings and Questioned Cost for Federal Awards No Matters of Non-Compliance Page 105

Part IV Statutory Findings Related to Required Statutory Reporting Page 106 D. Business Transaction 1) Transparency of transactions for purchases 2) Conflict of interest for Bill Hagge 3) Certified Enrollment - overstated