Audit finds district's financial reports in order

October 11, 2018

Independent financial auditors have given the Stillwater Area Public School District an “unmodified” opinion on its annual audit; the highest rating possible.

The 2017-2018 Comprehensive Annual Financial Report, upon which the annual audit is based, showed no deficiencies in the district’s internal controls and no instances of noncompliance of government auditing standards. The audit was conducted by the auditing firm Malloy, Montague, Karnowski, Radosevich & Co. (MMKR).  

School districts, charter schools, and educational cooperatives are required to have an annual independent financial audit.  The audit and the financial statements included in the audit must be based on Generally Accepted Government Auditing Standards, the federal Single Audit Act, and the Minnesota Legal Compliance Guide issued by the Office of the State Auditor.  Minnesota Statutes, section 123B.77, requires reporting entities to submit audited financial data to the commissioner of the Minnesota Department of Education and to the Office of the State Auditor

Financial statements within the audit report show that the district ended fiscal year 2018 positively. The total unassigned fund balance reflected approximately one half of one percent variance between what was budgeted and what was actually spent.

The district closed the books with an unassigned fund balance totaling 3.9 percent, which is below the school board’s policy to maintain at least a five percent unassigned fund balance. The unrestricted fund balance, or “rainy day fund,” equals less than five weeks of operations for the district assuming level spending throughout the year.

The complete financial report is available at stillwaterschools.org/audit.