Auditors Give Huron Valley Schools High Marks for Financial Records

As a continuing sign of its comprehensive budgeting and financial management, Huron Valley Schools received an unqualified or “clean” opinion in the independent audit of its 2011-2012 financial records. An unqualified rating is the highest level available and is the same top-level rating the District received
in its 2010-2011 audit.

The audit was completed by the independent accounting firm Plante Moran and presented to the HVS Board of Education at its November meeting. Plante Moran auditors Eric Formberg, CPA, and Andrea Link, CPA, reported that the District’s financial records are fairly presented, in all material respects. According to Formberg, the financial records are in excellent condition and their audit opinion represents the highest honor a district can receive.

Link recapped the District’s budget to actual results by indicating the revenue was “spot on” or in other words 100% to budget. Expenditures were as expected at 99.4% of budget, after considering timing differences such as purchases in June that were not received until July and building budget carryover amounts.

Michigan School Business Officials recommends a fund balance of 15 percent to 20 percent. Formberg praised the District for striving to maintain a fund balance as a hedge against future financial uncertainties. A portion of the fund balance will be used to cover long-term employee obligations and to help offset the anticipated future shortfalls due to state funding not keeping up with escalating costs. For 2012-2013, the state increased the base foundation allowance to $6,966, which represents an increase of $18 per pupil for Huron Valley Schools. However, this foundation amount is lower than the 2005-2006 school year as the District received a $300 per pupil cut in 2010-2011. HVS continues to be at the bottom of funding in Oakland County and statewide.

In addition to the regular audit report, the District also received an audit report for its federal grants. In total, the District received approximately $8.2 million in federal grants in 2011-2012. These include Special Education Individuals with Disabilities Education Act (IDEA) grants, Federal Title Grants, Education Jobs Fund, Physical Education Program Grant, Head Start and National School Breakfast and Lunch Program Grants. The District did not have any audit findings with regard to grants.

More information on the Huron Valley Schools finances is posted on the District’s website www.hvs.org under the “District/Business Office/School Finance” tab. Included are the auditor’s report and the 2012-13 budgets as well as budgets from previous years.

(Source: Huron Valley Schools)