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Audit of Mason City schools released



This news story was published on February 20, 2018.
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MASON CITY – A financial audit report of Mason City schools was completed for 2016-2017 and released to the public.

The District’s governmental activities revenue totaled $53,373,829 for the year ended June 30, 2017, a 4.8% increase from the prior year. Revenue included $21,750,883 in local and other tax, charges for services of $3,659,708, operating grants and contributions of $8,201,404, unrestricted investment earnings of $249,946, unrestricted state grants of $19,128,577 and other revenue of $383,311. Business-type activities revenue totaled $2,115,161.

Expenses for District governmental activities operations totaled $51,795,997, a 6.0% increases from the prior year. Expenses included $23,214,131 for regular instruction, $10,943,207 for special instruction and $4,605499 for administration services. Business-type activities expenses totaled $2,153,098.

2017 FINANCIAL HIGHLIGHTS

General Fund revenue increased from $44,675,878 in fiscal year 2016 to $46,922,893 in fiscal year 2017, while General Fund expenditures increased from $43,371,095 in fiscal year 2016 to $45,471,255 in fiscal year 2017. This resulted in an increase of $1,450,522 (24.6%) in General Fund balance from $5,895,380 in fiscal year 2016 to $7,345,902 in fiscal year 2017.

The increase in General Fund revenue was mainly attributable to more state grants received. The increase in expenditures was due primarily to an increase in salary and benefits expenditures.

In fiscal year 2017, property tax and unrestricted state grants accounted for approximately 64% of total revenue. The District’s expenses primarily relate to instruction and support services which account for approximately 92% of the total expenses.

The District’s total revenue was approximately $55 million, of which approximately $53 million was for governmental activities and $2 million was for business-type activities.

The District as a whole experienced a 4.9% increase in revenue and a 6.2% increase in expenses. The increase in revenue was primarily due to more operating grants and contributions and unrestricted state grants received. The increase in expenses was primarily due to increases in salary and benefits costs.

The financial performance of the District as a whole is reflected in its governmental funds. As the District completed the year, its governmental funds reported combined fund balances of $21,858,934, an increase from last year’s ending fund balances of $20,642,002. The main reason for the increase in combined fund balances in fiscal year 2017 was due to more state grants received.

Governmental Fund Highlights

The General Fund balance increased from $5,895,380 to $7,345,902 primarily due to an increase in state foundation aid and a $1.2 million teacher leadership grant received from the state.

The Debt Service Fund balance decreased from $6,596,010 to $5,546,621 primarily due to the use of reserves to partially advance refund revenue bonds.

The Capital Projects Fund balance increased from $5,503,383 to $6,520,022 primarily due to less facilities acquisition and construction costs in the current year.

Proprietary Fund Highlights

The School Nutrition Fund net position decreased from $829,453 (restated) as of June 30, 2016 to $791,516 as of June 30, 2017, a decrease of $37,937, or 4.6%. Total revenue in fiscal year 2017 was $2,115,161, an increase of $54,704, or 2.7%. The increase was due to more federal reimbursements received. Total expenses for fiscal year 2017 were $2,153,098, an increase of $30,027, or 1.4%. The increase was due to more salary and benefits costs.

The District has been required by federal regulations to increase the price of school breakfast and lunch for students and staff each year. This increase was required because full-pay lunches are not being subsidized by the federal government through the free and reduced lunch reimbursement program.

Budgetary Highlights

In accordance with the Code of Iowa, the Board of Education annually adopts a budget following required public notice and hearing for all funds, except its internal service, private purpose trust and agency funds. Although the budget document presents function expenditures or expenses by fund, the legal level of control is at the aggregated function level, not by fund. The budget may be amended during the year utilizing similar and statutorily prescribed procedures.

The District’s budget is prepared on the GAAP basis. A schedule showing the original and final budget amounts compared to the District’s actual financial activity is included in the required supplementary information section of this report.

The District’s total actual revenue was $282,181 more than the total budgeted revenue; a variance of 0.5%. The difference was primarily related to more state revenue received than anticipated.

A copy of the audit report is available for review, below:

http://northiowatoday.com/wp-content/uploads/2018/02/MASON-CITY-SCHOOLS-AUDIT-2016-2017.pdf

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10 Responses to Audit of Mason City schools released

  1. Barney Fife Reply Report comment

    February 21, 2018 at 7:23 pm

    the pay raises were put in the paper today, lets cut the little people and give the chiefs a big fat piece of cake.

    • NIT Publisher Reply Report comment

      February 21, 2018 at 10:42 pm

      That’s the Mason City way.

  2. bodacious Reply Report comment

    February 21, 2018 at 3:20 pm

    All of you seem to have better ideas on how to run a successful school. I hope you will be running for the school board soon. Or, at the least, show up to the school board meetings and give your input. Oh, you won’t do that? Why?

  3. sad but true Reply Report comment

    February 21, 2018 at 9:56 am

    public education has NEVER been about he kids

  4. Dick Neely Reply Report comment

    February 21, 2018 at 12:13 am

    Money well spent if we had a competitive school district. Mason City doesn’t even rank on a top 20 list for much of anything, aside from a high graduating dumb ass percentage. All that money collected, all that money the higher ups make, you would think we would have better results.

  5. Anonymous Reply Report comment

    February 20, 2018 at 8:50 pm

    55 million in revenue to the highest taxing body in the City of Mason city and a 6.2% increase in expenses and yet they still want more of your money in the upcoming vote. I could say yes if the results were there but unfortunately they are not. Vote no to the levy.

  6. Anonymous Reply Report comment

    February 20, 2018 at 7:26 pm

    Pay particular attention to pages 67 through 72 of the report. Note there are no names of the offending parties. Why? The School District will soon be asking for approval of the levies. There is a retired school teacher who frequently posts on NIT. If that’s the type of teacher you want teaching our kids then vote yes. If not vote no.

  7. John Reply Report comment

    February 20, 2018 at 6:09 pm

    Every fact of increased infusion of money from State, local, Federal and grant funding makes Sharon Steckman look very foolish for continually running her mouth “saying the nasty republicans are cutting school funding.”

    • Anonymous Reply Report comment

      February 21, 2018 at 8:13 am

      Very true John very true. But, then again what else would you expect from the spend sisters.

      • sad but true Reply Report comment

        February 21, 2018 at 2:11 pm

        more big pay raises coming. NO amount of money would ever be enough