6919217 Mannford Public Schools Audit 2013 M9u5
User Manual: 6919217
Open the PDF directly: View PDF 
.
Page Count: 36
FINANCIAL STATEMENTS AND REPORTS OF
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
JUNE 30, 2013
RALPH OSBORN
CERTIFIED PUBLIC ACCOUNTANT
500 SOUTH CHESTNUT
P.O. BOX 1015
BRISTOW, OKLAHOMA 74010-1015
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
JUNE 30, 2013
TABLE OF CONTENTS
SCHOOL DISTRICT OFFICIALS 1
INDEPENDENT AUDITOR’S REPORT 2-3
COMBINED FINANCIAL STATEMENTS
Combined Statement of Assets, Liabilities, and Equity -
Regulatory Basis All - Fund Types and Account Groups 4
Combined Statement of Revenues Collected, Expenditures
Paid and Changes In Fund Balances - All Governmental
Regulatory Basis - Fund Types 5
Combined Statement of Revenues, Expenditures, and Changes In
Fund Balances - Budget and Actual - Budgeted Governmental
Regulatory Basis - Fund Types 6
NOTES TO FINANCIAL STATEMENTS 7-18
OTHER SUPPLEMENTARY INFORMATION:
Combining Financial Statements
Combining Statement of Assets, Liabilities, and Fund
Balances -Regulatory Basis - All Special Revenue Funds 19
Combining Statement of Revenues Collected, Expenditures
Paid, and Changes in Fund Balances - Regulatory Basis -
All Special Revenue Funds 20
Combining Statement of Revenues Collected, Expenditures
Paid, and Changes in Fund Balances - Budget and Actual -
Regulatory Basis - Special Revenue Funds 21
Combining Statements of Assets, Liabilities and Fund Equity -
Regulatory Basis - All Agency Funds 22
Combining Statement of Changes in Assets and Liabilities -
Regulatory Basis - Activity Funds 23-24
Supporting Schedules
Schedule of Federal Awards Expended 25-26
Schedule of Statutory, Fidelity and Honesty Bonds 27
INTERNAL CONTROL AND COMPLIANCE REPORTS
Report on Internal Control Over Financial Reporting and
On Compliance And Other Matters Based on an Audit of
Financial Statements Performed in Accordance With
Government Auditing Standards 28-29
Report on Compliance with Requirements Applicable to Each
Major Program and Internal Control Over Compliance in
Accordance With OMB Circular A-133 30-31
SCHEDULE OF FINDINGS AND QUESTIONED COST
Schedule of Findings and Questioned Costs 32
Status of Prior Year Audit Findings 33
SCHEDULE OF ACCOUNTANTS’ PROFESSIONAL LIABILITY INSURANCE AFFIDAVIT 34
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
SCHOOL DISTRICT OFFICIALS
JUNE 30, 2013
BOARD OF EDUCATION
President Roger Moore
Vice-President Russell Dyer
Clerk Wayne Burk
Member Steve Hensley
Member David Greenwood
Superintendent of Schools
Dr. Steve Waldvogel
School District Treasurer
Gena Floyd
Encumbrance Clerk
Robin Haskins
Minutes Clerk
Meredyth Fry
INDEPENDENT AUDITOR’S REPORT
The Honorable Board of Education
Mannford School District No. I-3
Mannford, Creek County, Oklahoma
REPORT ON THE FINANCIAL STATEMENTS
I have audited the accompanying basic financial statements - regulatory basis of the governmental activities, each
major fund, and the aggregate remaining fund information of Mannford School District No. I-3, Creek County,
Oklahoma (District), as of and for the year ended June 30, 2013, as listed in the table of contents.
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with financial reporting provisions of the Oklahoma State Department of Education. Management is also
responsible for the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
AUDITOR’S RESPONSIBILITY
My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit
in accordance with auditing standards generally accepted in the Untied States of America. Those standards require
that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the entity’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, I express
no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit
opinions.
BASIS FOR ADVERSE OPINION ON U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
As discussed in Note 1, the financial statements are prepared by the Mannford School District Number I-3, on the
basis of the financial reporting provisions of the Oklahoma State Department of Education, which is a basis of
accounting other than accounting principles generally accepted in the United States of America, to comply with the
requirements of the Oklahoma State Department of Education. The effects of the financial statements on the
variances between the regulatory basis of accounting described in Note 1 and accounting principles generally
accepted in the United States of America, although not reasonably determined, are presumed to be material.
ADVERSE OPINION ON U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
In my opinion, because of the significance of the matter discussed in the “BASIS FOR ADVERSE OPINION ON
U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES” paragraph, the basic financial statements
referred to in the first paragraph do not present fairly, in accordance with accounting principles generally accepted
in the United States of America, the financial position of the governmental activities, each major fund, and the
aggregate remaining fund information of Mannford School District No. I-3, Creek County, Oklahoma as of June
30, 2013, the changes in its financial position, or, where applicable, its cash flows for the year then ended.
- 2 -
OPINION ON REGULATORY BASIS OF ACCOUNTING
As discussed in Note 1E, the financial statements referred to above do not include the general fixed assets account
group, which should be included in order to conform with the accounting and reporting regulations prescribed or
permitted by the Oklahoma State Department of Education. The amount that should be recorded in the general
fixed assets account group is not known.
In my opinion, the basic financial statements referred to in the first paragraph present fairly, in all material
respects, the respective financial position - regulatory basis of the governmental activities, each major fund, and
the aggregate remaining fund information of Mannford School District No. I-3, Creek County, Oklahoma
(District), as of June 30, 2013, and the respective changes in financial position - regulatory basis for the year ended
on the regulatory basis of accounting described in Note 1.
OTHER MATTERS
Other Information
My audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the District’s basic financial statements. The combining statements - regulatory basis, are presented for purposes
of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures
of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and
Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required
part of the basic financial statements.
The combining statements - regulatory basis and the schedule of expenditures of federal awards are the
responsibility of management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements to the basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In my opinion, the
combining statements - regulatory basis and the schedule of expenditures of federal awards are fairly stated in
all material respects in relation to the basic financial statements as a whole.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, I have also issued my report dated February 10, 2014on my
consideration of the District’s internal control over financial reporting and on my tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that
report is to describe the scope of my testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the District’s internal control over financial reporting and compliance.
Sincerely,
Ralph Osborn
Ralph Osborn
Certified Public Accountant
Bristow, Oklahoma
February 10, 2014
- 3 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
COMBINED STATEMENT OF ASSETS, LIABILITIES, AND EQUITY
REGULATORY BASIS - ALL FUND TYPES AND ACCOUNT GROUPS
JUNE 30, 2013
Fiduciary Account
Fund Types Groups
Governmental Fund Type Trust General Total
Special Debt Capital And Long-Term (Memorandum
ASSETS General Revenue Service Projects Agency Debt (Only)
Cash and cash equivalents $ 2,378,975 $ 310,610 $ 60,077 $ - $ 271,883 $ - $ 3,021,545
Amount available in Debt Service fund - - - - - 60,077 60,077
Amount to be provided for retirement
of general long-term debt - - - - - 1,659,923 1,659,923
Amount to be provided for capitalized
lease agreements - - - - - 3,314,499 3,314,499
Total Assets $ 2,378,975 $ 310,610 $ 60,077 $ - $ 271,883 $5,034,499 $ 8,056,044
LIABILITIES AND FUND EQUITY
LIABILITIES
Warrants payable $ 319,793 $ 10,315 $ - $ - $ - $ - $ 330,108
Encumbrances 93,229 13,852 - - - - 107,081
Due to other groups - - - - 271,883 - 271,883
Long-term debt:
Bonds payable - - - - - 1,720,000 1,720,000
Capital leases - - - - - 3,314,499 3,314,499
Total Liabilities 413,022 24,167 - - 271,883 5,034,499 5,743,571
FUND EQUITY
Unreserved
Designated for debt service - - 60,077 - - - 60,077
Undesignated 1,965,953 286,443 - - - - 2,252,396
Total fund equity 1,965,953 286,443 60,077 - - - 2,312,473
Total liabilities and fund equity $ 2,378,975 $ 310,610 $ 60,077 $ - $ 271,883 $5,034,499 $ 8,056,044
The accompanying notes are an integral part of this statement.
- 4 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
COMBINED STATEMENT OF REVENUES COLLECTED, EXPENDITURES
PAID, AND CHANGES IN FUND BALANCES
REGULATORY BASIS - ALL GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED JUNE 30, 2013
Total
Special Debt Capital (Memorandum
General Revenue Service Projects Only)
Revenues Collected
Local Sources $ 1,407,542 $ 181,175 $ 741,244 $ - $ 2,329,961
Intermediate Sources 232,592 - - - 232,592
State Sources 6,919,217 33,686 - - 6,952,903
Federal Sources 1,180,153 - - - 1,180,153
Return of Assets 33,306 16,130 - - 49,436
Total Revenues Collected 9,772,810 230,991 741,244 - 10,745,045
Expenditures Paid
Instruction 5,837,655 56,135 - - 5,893,790
Support Services 3,382,843 281,031 - - 3,663,874
Non-Instruction Services 568,497 15,968 - - 584,465
Capital Outlay - 12,484 - 750,000 762,484
Other Outlays 33,324 1,228 - - 33,324
Other Uses 5,173 - - - 5,173
Repayments 16,710 - - - 16,710
Debt Service:
Principal Retirement - - 685,000 - 685,000
Interest and Fiscal
Agent Charges - - 40,948 - 40,948
Total Expenditures Paid 9,844,202 366,846 725,948 750,000 11,686,996
Excess of Revenues Collected
Over (Under) Expenditures Paid (71,392) (135,855) 15,296 (750,000) (941,951)
Adjustments to Prior Year
Lapsed Appropriations 25,466 685 - - 26,151
Estopped Warrants 8 - - - 8
Other Financing Sources (Uses)
Proceeds from Bond Sales - - - 750,000 750,000
Excess (Deficiency) of Revenue
Collected Over (Under)
Expenditures Paid And Other
Financing Sources (Uses) (45,918) (135,170) 15,296 - (165,792)
792d Balance, Beginning 2,011,871 421,613 44,781 - 2,478,265
Fund Balance, Ending $ 1,965,953 $ 286,443 $ 60,077 $ - $ 2,312,473
The accompanying notes are an integral part of this statement.
- 5 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
REGULATORY BASIS - BUDGETED GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED JUNE 30, 2013
General Fund Special Revenue Funds Debt Service Fund
Original Final Original Final Original Final
Budget Budget Actual Budget Budget Actual Budget Budget Actual
Revenues Collected
Local Sources $1,276,903 $ 1,276,903 $ 1,407,542 $ 168,173 $ 168,173 $ 181,175 $ 688,668 $ 688,668 $ 741,244
Intermediate Sources 194,490 194,490 232,592 - - - - - -
State Sources 6,476,719 6,476,719 6,919,217 - - 33,686 - - -
Federal Sources 897,576 897,576 1,180,153 - - - - - -
Return of Assets - - 33,306 - - 16,130 - - -
Total Revenues Collected 8,845,688 8,845,688 9,772,810 168,173 168,173 230,991 688,668 688,668 741,244
Expenditures Paid
Instruction 10,857,559 10,857,559 5,837,655 4,105 4,105 56,135 - - -
Support Services - - 3,382,843 585,681 585,681 281,031 - - -
Non-Instruction Services - - 568,497 - - 15,968 - - -
Capital Outlay - - - - - 12,484 - - -
Other Outlays - - 33,324 - - 1,228 - - -
Other Uses - - 5,173 - - - - - -
Repayments - - 16,710 - - - - - -
Debt Service:
Principal Retirement - - - - - - 685,000 685,000 685,000
Interest and Fiscal
Agent Charges - - - - - - 40,948 40,948 40,948
Total Expenditures Paid 10,857,559 10,857,559 9,844,202 589,786 589,786 366,846 725,948 725,948 725,948
Excess of Revenues Collected
Over(Under) Expenditures
Paid Before Adjustments
To Prior Year (2,011,871) (2,011,871) (71,392) (421,613) (421,613) (135,855) (37,280) (37,280) 15,296
Adjustments to Prior Year
Lapsed Appropriations - - 25,466 - - 685 - - -
Estopped Warrants - - 8 - - - - - -
Excess (Deficiency) of Revenue
Collected Over (Under)
Expenditures Paid And Other
Financing Sources (Uses) (2,011,871) (2,011,871) (45,918) (421,613) (421,613) (135,170) (37,280) (37,280) 15,296
Fund Balance, Beginning 2,011,871 2,011,871 2,011,871 421,613 421,613 421,613 44,781 44,781 44,781
Fund Balance, Ending $ 0 $ 0 $ 1,965,953 $ 0 $ 0 $ 286,443 $ 7,501 $ 7,501 $ 60,077
The accompanying notes are an integral part of this statement.
- 6 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
1. Summary of Significant Accounting Policies
The basic financial statements of Mannford Public Schools Independent District
No. I-3, Creek County, Oklahoma (the District) have been prepared in conformity
with an other comprehensive basis of accounting as prescribed by the Oklahoma
State Department of Education. The more significant of the District’s policies
are described below.
A. Reporting entity
The District is a corporate body for public purposes created under Title 70 of
Oklahoma Statutes and accordingly is a separate entity for operating and
financial reporting purposes.
The District is part of the public school system of Oklahoma under the general
direction and control of the State Board of Education and is financially
dependent on State of Oklahoma support. The general operating authority for the
public school system is the Oklahoma School Code contained in Title 70, Oklahoma
Statutes.
The governing body of the District is the Board of Education composed of elected
members. The appointed superintendent is the executive officer of the District.
In evaluating how to define the District, for financial reporting purposes,
management has considered all potential component units. The decision to include
a potential component unit in the reporting entity was made by applying the
criteria established by the Governmental Accounting Standards Board (GASB). The
basic, but not the only, criterion for including a potential component unit
within the reporting entity is the governing body’s ability to exercise oversight
responsibility. The most significant manifestation of this ability is financial
interdependency. Other manifestations of the ability to exercise oversight
responsibility include, but are not limited to, the selection of governing
authority, the designation of management, the ability to significantly influence
operations, and accountability for fiscal matters. A second criterion used in
evaluating potential component units is the scope of public service. Application
of this criterion involves considering whether the activity benefits the District
and/or its citizens, or whether the activity is conducted within the geographic
boundaries of the District and is generally available to its patrons. A third
criterion used to evaluate potential component units for inclusion or exclusion
from the reporting entity is the existence of special financing relationships,
regardless of whether the District is able to exercise oversight
responsibilities. Based upon the application of these criteria, there are no
potential component units included in the District’s reporting entity.
- 7 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
B. Fund Accounting and Description of Funds
The District uses funds and account groups to report on its financial position
and the results of its operations. Fund accounting is designed to demonstrate
legal compliance and to aid financial management by segregating transactions
related to certain district functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An
account group, on the other hand, is a financial reporting device designed to
provide accountability for certain assets and liabilities that are not recorded
in the funds because they do not directly affect net expendable available
financial resources.
Funds are classified into three categories: governmental, proprietary and
fiduciary. Each category, in turn, is divided into separate “fund types.”
Governmental Fund Types
Governmental funds are used to account for all or most of governments’s general
activities, including the collection and disbursement of earmarked monies
(special revenue funds), the acquisition or construction of general fixed assets
(capital projects fund), and the servicing of general long-term debt (debt
service fund).
General Fund
The general fund is used to account for all transactions, except those required
to be accounted for in another fund. Major revenue sources include state and
local property taxes and state funding under the Foundation and Salary Incentive
Aid Program. Expenditures include all costs associated with the daily operation
of the schools except the programs funded for building repairs and maintenance,
school construction and debt service on bonds and other long-term debt. The
general fund includes federal and state restricted monies that must be expended
for specific programs.
Special Revenue Fund
The special revenue fund includes the District’s Co-op Fund, Building Fund, and
Gifts Fund. The Building Fund consists of monies derived from property taxes
levied for the purpose of erecting, remodeling, or repairing buildings and for
purchasing furniture and equipment. The Gifts Fund derives monies from
advertising signs. The Co-op Fund includes money received for certain current
expenditures.
Debt Service Fund
The debt service fund is the District’s sinking fund and is used to account for
the accumulation of financial resources for the payment of general long-term debt
principal, interest and related cost. The primary revenue source is local
property taxes levied specifically for debt service.
- 8 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
Capital Projects Fund
The capital projects fund is the District’s Bond Fund and is used to account for
the proceeds of bond sales to be used exclusively for acquiring school sites,
constructing and equipping new school facilities, renovating existing facilities,
and acquiring transportation equipment.
Proprietary Fund Types
Proprietary funds are used to account for activities similar to those found in
the private sector, where the determination of net income is necessary or useful
to sound financial administration. Goods and services from such activities can
be provided either outside parties (enterprise funds) or to other departments or
agencies primarily within the District (internal service funds). The District
does not have Proprietary Funds at this time.
Fiduciary Fund Types
Fiduciary funds are used to account for assets held on behalf of outside
partners, including other governments, or on behalf of other funds within the
District. When these assets are held under the terms of a trust agreement, trust
funds are used for their accounting and reporting. Agency funds generally are
used to account for assets that the District holds on behalf of others as their
agent and do not involve measurement of results of operations.
Account Groups
Account groups are not funds and consist of a self-balancing set of accounts used
only to establish accounting control over long-term debt and general fixed assets
not accounted for in proprietary funds.
General Long-Term Debt Account Group
This account group was established to account for all long-term debt of the
District, which is offset by the amount available in the debt service fund and
the amount to be provided in future years to complete retirement of the debt
principal. It is also used to account for liabilities for compensated absences
and early retirement incentives, which are to be paid from funds provided in
future years.
General Fixed Asset Account Group
This account group is used to account for property, plant and equipment of the
school district. The District does not have information necessary to include this
group in its combined financial statements.
- 9 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
Memorandum Only - Total Column
The total column on the financial statements is captioned “memorandum only” to
indicate that it is presented only to facilitate financial analysis. Data in
this column does not present financial position, results of operations, or cash
flow in conformity with generally accepted accounting principles. Neither is
such data comparable to a consolidation. Interfund eliminations have not been
made in the aggregation of this data.
C. Basis of Accounting and Presentation
The District prepares its financial statements in a presentation format that is
prescribed by the Oklahoma State Department of Education. This format is
essentially the generally accepted form of presentation used by the state and
local governments prior to the effective date of GASB Statement No. 34, Basic
Financial Statements-Management’s Discussion and Analysis- for State and Local
Governments. This format significantly differs from that required by GASB 34.
The basic financial statements are essentially prepared on a basis of cash
receipts and disbursements modified as required by the regulations of the
Oklahoma State Department of Education (OSDE) as follows:
1. Encumbrances represented by purchase orders, contracts, and other
commitments for the expenditure of monies are recorded as expenditures when
approved.
2. Investments and inventories are recorded as assets when purchased.
3. Capital assets in proprietary funds are recorded when acquired and
depreciated over their useful lives.
4. Warrants payable are recorded as liabilities when issued.
5. Long-term debt is recorded when incurred.
6. Accrued compensated absences are recorded as an expenditure and liability
when the obligation is incurred.
This regulatory basis of accounting differs from accounting principles generally
accepted in the United States of America, which require revenues to be recognized
when they become available and measurable, or when they are earned, and
expenditures or expenses to be recognized when the related liabilities are
incurred for governmental fund types; and, when revenues are earned and
liabilities are incurred for proprietary fund types and trust funds.
- 10 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
D. Budgets and Budgetary Accounting
The District is required by state law to prepare an annual budget. A preliminary
budget must be submitted to the Board of Education by December 31 for the fiscal
year beginning the following July 1. If the preliminary budget requires an
additional levy, the District must hold an election on the second Tuesday in
February to approve the levy. If the preliminary budget does not require an
additional levy, it becomes a legal budget. If an election is held and the taxes
are approved, then the preliminary budget becomes the legal budget. If voters
reject the additional taxes, the District must adopt a budget within the approved
tax rate.
The District may upon approval by the majority of the electors of the District
voting on the question make the ad valorem levy for emergency levy and local
support levy permanent. The District electors have made the levies permanent.
Under current Oklahoma Statutes, a formal budget is required for all funds except
for trust and agency funds. Budgets are presented for all funds that include the
originally approved budgeted appropriations and final budgeted appropriations as
adjusted for supplemental appropriations and approved transfers between budget
categories.
E. Assets, Liabilities, and Fund Equity
Cash and Cash Equivalents
For purposes of the statement of cash flows, the District considers all cash on
hand, demand deposits, and highly liquid investments, with an original maturity
of three months or less when purchased, to be cash and cash equivalents.
Investments
Investments consist of certificates of deposit or direct obligations of the
United States Government and Agencies with maturities greater than three months
when purchased. All investments are recorded at cost, which approximates market
value.
Property Tax Revenues
The District is authorized by state law to levy property taxes, which consists
of ad valorem taxes on real and personal property within the District. The
County Assessor, upon receipt of the certification of tax levies from the county
excise board, extends the tax levies on the tax roll for submission to the County
Treasurer prior to October 1. The County Treasurer must commence tax collection
within fifteen days of receipt of the tax rolls. The first half of taxes are due
prior to January 1. The second half is due prior to April 1.
- 11 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
If the first payment is not made timely, the entire tax becomes due and payable
on January 2. Second half taxes become delinquent on April 1 of the year
following the year of assessment. If not paid by the following October 1, the
property is offered for sale for the amount of taxes due. The owner has two years
to redeem the property by paying the taxes and penalty owed. If at the end of two
years the owner has not done so, the purchaser is issued a deed to the property.
Inventories
The value of consumable inventories at June 30, 2013 is not known but is not
believed to be material to the basic financial statements.
Capital Assets
The General Fixed Assets Account Group is not presented. The amount which would
be included in it is not known.
Compensated Absences
Vested or accumulated vacation leave that is expected to be liquidated with
expendable available financial resources is reported as an expenditure and a fund
liability of the governmental fund that will pay it. There are no amounts of
vested or accumulated vacation leave that are not expected to be liquidated with
expendable available financial resources.
Employees are allowed varying amounts of sick leave during the year in accordance
with Oklahoma Statutes. Sick leave used during the year is recorded as an
expense in the governmental fund. Vested accumulated rights to receive sick pay
benefits may be used in subsequent years, transferred to another District, or
added to years of service upon retirement. Based on the District’s experience
it is not probable that District will pay for vested accumulated rights to
receive sick leave. Therefore, a liability for vested accumulated sick leave has
not been recorded.
Long-Term Debt
Long-term debt is recognized as a liability of a governmental fund when due or
when resources have been accumulated in the debt service fund for payment early
in the following year. For other long-term obligations, only that portion
expected to be financed from expendable available financial resources is reported
as a fund liability of a governmental fund. The remaining portion of such
obligations is reported in the general long-term debt account group.
Fund Balance
Fund balance represents the cash and investments not encumbered by purchase
order, legal contracts, and outstanding warrants.
- 12 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
State Revenues
Revenues from state sources for current operations are primarily governed by the
state aid formula under the provisions of Article XVIII, Title 70, Oklahoma
Statutes. The State Board of Education administers the allocation of state aid
funds to school districts based on information accumulated from the districts.
After review and verification of reports and supporting documentation, the State
Department of Education may adjust subsequent fiscal period allocations of money
for prior year errors disclosed by review. Normally, such adjustments are
treated as reductions or additions of revenue of the year when the adjustment is
made.
The District receives revenue from the state to administer certain categorical
education programs. State Board of Education rules require that revenue
earmarked for these programs be expected only for the program for which the money
is provided. These rules also require that the money not expended as of the
close of the fiscal year be carried forward into the following year to be
expended for the same categorical programs. The State Department of Education
requires the categorical educational program revenues be accounted for in the
general fund.
Interfund Transactions
Quasi-external transactions are accounted for as revenues, expenditures or
expenses. Transactions that constitute reimbursements to a fund or
expenditure/expenses initially made from it that are properly applicable to
another fund are recorded as expenditures/expenses in the fund that is
reimbursed.
All other transactions, except quasi-external transactions and reimbursements,
are reported as transfers. Nonrecurring or nonroutine permanent transfers of
equity are reported as residual equity transfers. All other interfund transfers
are reported as operating transfers. There were no operating transfers or
residual equity transfers during fiscal year 2013.
2. Cash and Investments
The District’s investment policies are governed by state statute. Permissible
investments include direct obligations of the United States Government and
Agencies, certificates of deposit of savings and loan associations, and bank and
trust companies, and savings accounts or savings certificates of saving and loan
associations, and trust companies. Collateral is required for demand deposits and
certificates of deposit for all amounts not covered by federal deposit insurance.
- 13 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
Deposits and Investments
The District’s cash deposits at June 30, 2013, were completely insured or
collateralized by federal deposit insurance, direct obligations of the United
States Government, or securities held by the District or by its agent in the
District’s name.
Custodial Credit Risk
Custodial credit risk is the risk that in the event of failure of counterparty,
the District will not be able to recover the value of its deposits or
investments. Deposits are exposed to custodial credit risk if they are uninsured
and uncollateralized. Investment securities are exposed to custodial credit risk
if they are uninsured, are not registered in the name of the District, and are
held by counterparty or the counterparty’s trust department but not in the name
of the District. The District’s policy requires that all deposits and
investments in excess of amounts covered by federal deposit insurance be fully
collateralized by the entity holding the deposits or investments. As of June 30,
2013, all of the Districts deposits and investments were either covered by
federal deposit insurance or were fully collateralized.
Deposits
The District had deposits at financial institutions with a carrying amount of
approximately $3,021,545 at June 30, 2013. The bank balance of the deposits at
June 30, 2013 was approximately $3,021,999 .
Credit Risk
Fixed-income securities are subject to credit risk. However, the District did
not have fixed income securities at June 30, 2013.
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely
affect the fair value of an investment. The District’s Treasurer and Board of
Education monitor the District’s investment performance on an ongoing basis to
limit the District’s interest rate risk. As of June 30, 2013, all of the
District’s deposits consisted of demand deposits.
3. General Long-Term Debt
State statutes prohibit the District from becoming indebted in an amount
exceeding the revenue to be received for any fiscal year without approval by the
District’s voters. Bond issues have been approved by the voters and issued by the
District for various capital improvements. These bonds are required to be fully
paid serially within 25 years from the date of issue.
- 14 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
General long-term debt of the District consists of bonds payable and capital
leases. Debt service requirements for bonds are payable solely from fund balance
and future revenues of the debt service fund. Principal and interest on the
capital leases is paid from the General Fund.
The following is a summary of the long-term debt transactions of the District for
the year ended June 30, 2013:
Bonds Capital Lease
Payable Obligation Total
Balance, July 1, 2012 $ 1,655,000 $ 3,677,797 $ 5,332,797
Additions 750,000 - 750,000
Retirements (685,000) (363,298) (1,048,298)
Balance, June 30, 2013 $ 1,720,000 $ 3,314,499 $ 5,034,499
A brief description of the outstanding general obligation bond issue at June 30,
2013 is set forth below:
Amount
Outstanding
Independent School District No. I-3 Building Bonds,
Series 2012,original issue $550,000, interest rate of
15.0% to 2.25%, due in annual installments of $175,000,
final payment of $175,000 due July 1, 2015. $ 420,000
Independent School District No. I-3 Building Bonds,
Series 2010,original issue $575,000, interest rate of
15.0% to 2.25%, due in annual installments of $175,000,
final payment of $175,000 due July 1, 2015. 350,000
Independent School District No. I-3 Building Bonds,
Series 2009, original issue $800,000, interest rate
of 2.0% to 2.2%, due in annual installments of
$200,000, final payment of $200,000 due July 14, 2012. 200,000
Independent School District No. I-3 Building Bonds,
Series 2012,original issue $750,000, interest rate of
7.0% to 9.0%, $180,000 due in beginning annual installment,
due in annual installments of $190,000, final payment of
$190,000 due July 1, 2017. 750,000
$ 1,720,000
- 15 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
The annual debt service requirements for bond principal and interest are:
Year Ending June 30 Principal Interest Total
2014 $ - $ - $ -
2015 695,000 11,558 706,558
2016 505,000 8,155 513,155
2017 330,000 4,950 334,950
2018 190,000 3,420 193,420
Total $ 1,720,000 $ 28,083 $ 1,748,083
Interest expense on bonds paid during the current year totaled $40,948.
The District has entered into lease purchase agreements as lessee for financing
the acquisition of equipment and a copier. The lease agreements qualify as
capital leases for accounting purposes since title transfers at the end of the
lease term and have been recorded at the present value of the future minimum
lease payments. The leases contain a clause, which gives the District the
ability to terminate the lease agreement at the end of each fiscal year.
The District has recorded the liability for future lease payments in the general
long-term debt account group for the equipment. The schedule of the future
minimum lease payments under the capital leases and the present value of the net
minimum lease payments at June 30 is as follows:
Year ending June 30 Building Equipment Total
2014 $ 134,209 $ 870,000 $ 1,004,209
2015 134,209 815,000 949,209
2016 134,209 725,000 859,209
2017 140,170 725,000 865,170
Total minimum lease payments 542,797 3,135,000 3,677,797
Less: Amount representing interest 50,426 312,872 363,298
Present value of future minimum
lease payments $ 492,371 $ 2,822,128 $ 3,314,499
4. Employee Retirement System
The District participants in the state-administered Oklahoma Teachers’ Retirement
System (the “System”), which is a cost-sharing, multiple-employer Public Employee
Retirement System administered by the Board of Trustees of the Oklahoma Teachers’
Retirement System. The System provides retirement and disability benefits,
annual cost-of-living adjustments and death benefits to plan members and
beneficiaries. Title 70 Section 17 of Oklahoma Statutes establishes benefit
provisions and may be amended only through legislative action.
- 16 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
The System’s financial statements are prepared using the cash basis of
accounting, except for accruals of interest income. Plan member contributions
are recognized in the period in which the contributions are made. Benefits and
refunds are recognized when paid. The pension benefit obligation is a
standardized disclosure measure of the present value of pension benefits. This
pension valuation method reflects the present value of estimated pension benefits
that will be paid in future years as a result of employee services performed to
date and is adjusted for the effect of projected salary increases. There are no
actuarial valuations performed on individual school districts. The System has an
under funded pension benefit obligation as determined as part of the latest
actuarial valuation.
The District, the State of Oklahoma, and the participating employee make
contributions. The contribution rates for the District and its employees are
established by and may be amended by Oklahoma Statutes. The contribution rates
for the Districts, which are not actuarially determined, and its employees are
established by statute and applied to the employee’s earnings, plus employer-paid
fringe benefits. The required contribution for participating members is 7% of
compensation. Additionally, OTRS receives federal matching contributions for
positions whose funding comes from federal sources or certain grants. The
District and State are required to contribute 14% of applicable compensation.
Contributions received by the System from the State of Oklahoma are from 3.54%
of its revenue from sales tax, use tax, corporate income tax, and individual
income tax. The District is required by statute to contribute 9.5% of
compensation. The District is allowed by the Oklahoma Teacher’s Retirement
System to make the required contributions on behalf of the participating members.
Ten-year historical trend information is presented in the Teacher’s Retirement
System of Oklahoma Annual Report for the year ended June 30, 2013. This
information is useful in assessing the pension plan’s accumulation of sufficient
assets to pay pension benefits as they become due. The annual report may be
obtained by writing to Oklahoma Teacher’s Retirement System, PO Box 53524,
Oklahoma City, OK, 73152 or by calling 405-521-2387.
The Districts total contributions for 2013, 2012, and 2011 were $578,522,
$506,527, and $502,052 respectively.
- 17 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
5. Contingencies
Amounts received or receivable from grantor agencies are subject to audit and
adjustments by grantor agencies. Any disallowed claims, including amounts
already collected, may constitute a liability of the applicable funds. The
amount, of expenditures which may be disallowed by the grantor cannot be
determined at this time, although the District expects such amounts, if any, to
be immaterial.
The District may from time to time become involved in legal actions. Attorneys
provided by the District or the insurance provider vigorously defend the action.
6. Risk Management
The District is exposed to various risk of loss related to torts, theft of,
damage to, and destruction of assets, errors and omissions, injuries to
employees’s health and life, and natural disasters. The District manages these
various risks of loss through the purchase of commercial insurance. Management
believes such coverage is sufficient to preclude any significant uninsured losses
to the District. Settled claims have not exceeded this insurance coverage in any
of the past three fiscal years.
7. Subsequent Events
The District has considered subsequent events through February 11, 2013, the date
which the financial statements were available for release. The District is not
aware of any items which need to be disclosed during that period.
- 18 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
COMBINING STATEMENT OF ASSETS, LIABILITIES, AND CASH FUND BALANCES
REGULATORY BASIS - ALL SPECIAL REVENUE FUNDS
JUNE 30, 2013
Co-op Building
Fund Fund Total
ASSETS
Cash and Cash Equivalents $ 1,897 $ 308,713 $ 310,610
Total Assets $ 1,897 $ 308,713 $ 310,610
LIABILITIES AND FUND EQUITY
Liabilities:
Warrants Payable $ 1,897 $ 8,418 $ 10,315
Encumbrances - 13,852 13,852
Total Liabilities 1,897 22,270 24,167
Fund Equity:
Unreserved
Undesignated - 286,443 286,443
Total Fund Equity - 286,443 286,443
Total Liabilities and Fund Equity $ 1,897 $ 308,713 $ 310,610
The notes to financial statements are an integral part of this statement.
- 19 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
COMBINING STATEMENT OF REVENUES COLLECTED,
EXPENDITURES PAID, AND CHANGES IN FUND BALANCES
REGULATORY BASIS - ALL SPECIAL REVENUE FUNDS
JUNE 30, 2013
Co-op Building
Fund Fund Total
Revenues Collected
Local Sources $ - $ 181,175 $ 181,175
State Sources 33,686 - 33,686
Return of Assets 14,902 1,228 16,130
Total Revenues 48,588 182,403 230,991
Expenditures Paid
Instruction 52,693 3,442 56,135
Support Services - 281,031 281,031
Non-Instruction - 15,968 15,968
Capital Outlay - 12,484 12,484
Other Outlay - 1,228 1,228
Total Expenditures Paid 52,693 314,153 366,846
Excess of Revenues Over (Under)
Expenditures Before
Adjustments to Prior Year (4,105) (131,750) (135,855)
Adjustments to Prior Year
Lapsed Appropriations - 685 685
Total Adjustments to Prior Year - 685 685
Excess of Revenues and Other
Sources Over (Under)
Expenditures and Other
Financing Sources (Uses) (4,105) (131,065) (135,170)
Fund Balance - Beginning of Year 4,105 417,508 421,613
Fund Balance - Ending of Year $ - $ 286,443 $ 286,443
The notes to the financial statements are an integral part of this statement.
- 20 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
COMBINING STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
REGULATORY BASIS - SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2013
Co-op Fund Building Fund Total
Original Final Original Final Original Final
Budget Budget Actual Budget Budget Actual Budget Budget Actual
Revenue Collected:
Local Sources $ - $ - $ - $168,173 $168,173 $181,175 $168,173 $168,173 $181,175
State Sources - - 33,686 - - - - - 33,686
Return of Assets - - 14,902 - - 1,228 - - 16,130
Total Revenue Collected - - 48,588 168,173 168,173 182,403 168,173 168,173 230,991
Expenditures Paid:
Instruction 4,105 4,105 52,693 - - 3,442 4,105 4,105 56,135
Support Services - - - 585,681 585,681 281,031 585,681 585,681 281,031
Non-Instruction - - - - - 15,968 - - 15,968
Capital Outlay - - - - - 12,484 - - 12,484
Other Outlay - - - - - 1,228 - - 1,228
Total Expenditures Paid 4,105 4,105 52,693 585,681 585,681 314,153 589,786 589,786 366,846
Excess of Revenue Over (Under)
Expenditures Before Adjustments
to Prior Year (4,105) (4,105) (4,105) (417,508) (417,508) (131,750) (421,613) (421,613) (135,855)
Adjustments to Prior Year
Lapsed Appropriations - - - - - 685 - - 685
Total Adjustments to Prior Year - - - - - 685 - - 685
Excess of Revenue and Other
Sources Over (Under) Expenditures
and Other Financing Sources (Uses) (4,105) (4,105) (4,105) (417,508) (417,508) (131,065) (421,613) (421,613) (135,170)
Fund Balance - Beginning 4,105 4,105 4,105 417,508 417,508 417,508 421,613 421,613 421,613
Fund Balance - Ending $ 0 $ 0 $ - $ 0 $ 0 $286,443 $ 0 $ 0 $286,443
- 21 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
COMBINING STATEMENT OF ASSETS, LIABILITIES AND FUND EQUITY
REGULATORY FUNDS - ALL AGENCY FUNDS
JUNE 30, 2013
Agency
Fund
Activity
Funds Total
ASSETS
Cash and Cash Equivalents $ 271,883 $ 271,883
Total Assets $ 271,883 $ 271,883
LIABILITIES AND FUND EQUITY
Liabilities:
Due to Others $ 271,883 $ 271,883
Total Liabilities 271,883 271,883
Fund Equity:
Unreserved/Undesignated - -
Total Liabilities and Fund Equity $ 271,883 $ 271,883
The notes to the financial statement are an integral part of this statement.
- 22 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
REGULATORY BASIS - ACTIVITY FUND - HIGH SCHOOL
JUNE 30, 2013
July 1, 2012 Additions Deletions June 30, 2013
ANNUAL $ 3,478 $ 11,510 $ 12,143 $ 2,845
ART 413 1,170 1,153 430
ATHLETICS 31,854 81,792 95,351 18,295
GREENHOUSE 418 0 0 418
B BANFIELD RESALE 1,383 1,595 2,978 0
M BANFIELD RESALE 144 0 0 144
BAND 385 23,062 21,831 1,616
EARLY CHILDHOOD CENTER 6,340 18,367 18,913 5,794
BAND RESALE 0 539 0 539
CONCESSION 1,195 32,391 32,864 722
CLASS OF 2013 6,149 515 2,205 4,459
CLASS OF 2014 911 8,099 5,465 3,545
CLASS OF 2015 620 179 345 454
CLASS OF 2016 857 60 0 917
ELEMENTARY 7,405 18,192 15,776 9,821
FCA 26 0 0 26
FFA 2,108 73,175 72,996 2,287
E01 FUNDRAISER 1,075 19,220 16,645 3,650
RELIEF FUND 806 43,980 43,814 972
GENERAL FUND 0 0 0 0
GENERAL FUND REFUND 0 8,534 1,027 7,507
H.S. CHEERLEADERS 5,928 34,887 38,361 2,454
H.S. LIBRARY 8,242 5,738 7,185 6,795
H.S. STUDENT COUNCIL 2,685 6,461 6,770 2,376
INTEREST 34,235 1,002 205 35,032
GIRLS BASKETBALL FUNDS 1,372 4,701 2,741 3,332
EMPLOYEE RELIEF FUND 0 3,433 3,433 0
MIDDLE SCHOOL 15,502 8,781 10,959 13,324
MIDDLE SCHOOL LIBRARY 556 1,157 1,311 402
MIDDLE SCHOOL CHEERLEADING 3,409 4,099 4,374 3,134
M.S. STUDENT COUNCIL 5,324 4,703 4,506 5,521
NATIONAL HONOR SOCIETY 1,400 12,232 12,352 1,280
BOYS BASKETBALL 136 1,691 768 1,059
SADD 941 615 1,059 497
SCIENCE CLUB 986 776 1,206 556
SPANISH CLUB 289 499 669 119
SPECIAL OLYMPICS 74 0 0 74
MOTIVATIONAL READING 147 0 0 147
CHOIR 582 3,926 2,907 1,601
SIVIDON RESALE 10 0 0 10
LEADERSHIP COUNCIL 522 198 223 497
FRESHMEN EXPERIENCE 539 0 530 9
ELEMENTARY MEDIA 2,873 11,229 9,987 4,115
- 23 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
REGULATORY BASIS - ACTIVITY FUND - CONTINUED
JUNE 30, 2013
July 1, 2012 Additions Deletions June 30, 2013
ACADEMIC TEAMS $ 258 $ 0 $ 0 $ 258
H.S. TEACHERS LOUNGE 3,502 838 849 3,491
9 GRADE CHEERLEADERS 63 0 0 63
TH
MHS COMMUNITY SCHOLAR 3,796 0 750 3,046
WRESTLING 4,774 5,370 8,044 2,100
SMITH RESALE 44 0 0 44
COOP LIFE SKILLS 5,067 0 2,290 2,777
H.S. ACTIVITY ACCOUNT 16,105 5,604 10,978 10,731
WRESTLING RESALE 0 560 560 0
SOFTBALL 781 2,319 480 2,620
CONTEST SPEECH 86 2,252 2,292 46
SPIRIT CLUB 0 1,840 1,444 396
BASEBALL FUNDRAISER 3,198 7,671 7,471 3,398
FOOTBALL FUNDRAISER 4,032 24,329 16,551 11,810
FUTURE MEDICAL PROOF 0 0 0 0
ALTERNATIVE EDUCATION 290 339 232 397
PEPSI 40,154 15,618 26,060 29,712
UPPER ELEMENTARY 14,739 21,038 16,651 19,126
LANDRUM RESALE 0 0 0 0
SCOTT RESALE 41 0 0 41
SCHOLARSHIPS 21,496 0 500 20,996
MATH CLUB 4,746 11,547 8,407 7,886
BANFIELD RESALE 19 220 220 19
BUSINESS & TECHNOLOGY 95 0 0 95
M.S. ART 250 160 75 335
GIRLS SOCCER 3,271 20,197 17,952 5,516
MANNFORD TRACK 205 152 152 205
TOTAL HIGH SCHOOL $ 278,331 $ 568,562 $ 575,010 $ 271,883
- 24 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
SCHEDULE OF FEDERAL AWARDS EXPENDED
FOR THE YEAR ENDED JUNE 30, 2013
Federal Grantor/Pass Through Federal Grantor’s Approved Balance at Balance at
Grantor/Program Title CFDA# Number Amount July1,2012 Receipts Expenditures* June30,2013
U.S. Department of Education
Direct Programs
Impact Aid 84.041 $ - $ - $ 27,634 $ - $ -
Title VII 84.060 - - 255,643 70,999 -
Total Direct - - 283,277 70,999 -
Passed Through State
Dept. of Educ.
Title 1/Basic 84.010 - - 300,647 296,645 -
Flow Through PL Part B 84.027 - - 111,120 287,901 -
Preschool Ages 3-5 84.173 - - 2,154 7,962 -
Title II, Part A 84.367 - - 57,629 39,286 -
Head Start Funds to School 93.600 - - 3,720 - -
Total Passed Through
State Dept. of Educ. - - 475,270 631,794 -
Passed Through State Dept. of
Career and Tech. Educ.
Vocational Education 84.048 - - 14,980 11,377 -
Total U.S. Dept. Of Education - - 773,527 714,170 -
U.S. Dept of Interior Passed
Through Muskogee Creek Nation
Indian Education 15.130 - - 8,767 9,029 -
U.S. Dept of Health & Human
Services Passed Through
Okla. Health Care Authority
Medical Assistance Program 93.778 - - 55 - -
Flood Control 12.112 - - 178 - -
U.S. Dept Of Agriculture Passed
Through State Dept. of Education
School Breakfast Program 10.553 - - 92,626* 92,626* -
School Lunch Program 10.555 - - 305,000* 305,000* -
Passed Through State Dept.
Of Human Services
Commodities 10.550 - - 28,588* 28,588* -
Total U.S. Dept. Of Agriculture - - 426,214 426,214 -
Total Expenditures of
Federal Awards $ - $ - $1,208,741 $ 1,149,413 $ -
- 25 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
SCHEDULE OF FEDERAL AWARDS EXPENDED
FOR THE YEAR ENDED JUNE 30, 2013
Note 1 - * Represents federal share of expenditures only.
Note 2 - Commodities received in the amount of $28,588 were of a nonmonetary nature and therefore the total
revenue does not agree with the financial statements by this amount.
Note 3 - Statement is prepared on regulatory basis of accounting used by District.
The accompanying notes are an integral part of this statement.
- 26 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
STATEMENT OF STATUTORY, FIDELITY, AND HONESTY BONDS
FOR THE YEAR ENDED JUNE 30, 2013
Bond Bonding Bond Effective
Type Company Number Amount Date
Surety/Position Ohio Casualty 5081371 $ 100,000 07/01/12 - 06/30/13
The surety covers all positions required to be bonded at $100,000 each.
- 27 -
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND
ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Education
Mannford School District No. I-3
Creek County
Mannford, Oklahoma
I have audited, in accordance with the auditing standards generally accepted in
the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards issued by the Comptroller General of
the United States, the accompanying basic financial statements - regulatory basis
of the governmental activities, each major fund, and the aggregate remaining
fund information of Mannford School District No. I-3, Creek County, Oklahoma
(District) as of and for the year ended June 30, 2013, and the related notes to
the financial statements, which collectively comprise the District’s financial
statements, and have issued my report thereon dated February 10, 2014which was
adverse with respect to the presentation of the financial statements in
conformity with accounting principles generally accepted in the United States of
America because the presentation followed the regulatory basis of accounting for
Oklahoma school districts and did not conform to the presentation requirements
of the Governmental Accounting Standards Board. The report did not include the
General Fixed Assets Account Group.
Internal Control Over Financial Reporting
In planning and performing my audit, I considered the District’s internal
control over financial reporting (internal control) to determine the audit
procedures that are appropriate in the circumstances for the purpose of
expressing my opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the District’s internal control
over financial reporting. Accordingly, I do not express an opinion on the
effectiveness of the District’s internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control
does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct misstatements on a timely
basis. A material weakness is a deficiency, or combination of deficiencies, in
internal control such that there is reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or
detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those
charged with governance.
My consideration of internal control was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies
in internal control that might be deficiencies, significant deficiencies or
material weaknesses. Given these limitations, during my audit I did not identify
any deficiencies in internal control that I consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
- 28 -
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial
statements are free of material misstatement, I performed tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of my audit, and accordingly,
I do not express such an opinion. The results of my tests disclosed no instances
of noncompliance or other matters that are required to be reported under Government
Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of my testing of
internal control and the results of that testing, and not to provide an opinion on
the effectiveness of the entity’s internal control or on compliance. This report
is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Sincerely,
Ralph Osborn
Ralph Osborn
Certified Public Accountant
Bristow, Oklahoma
February 10, 2014
- 29 -
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH
MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
To the Honorable Board of Education
Independent School District No. I-3
Mannford, Creek County, Oklahoma
Report on Compliance for Each Major Federal Program
I have audited Mannford School District No. I-3, Creek County, Oklahoma (the
District) compliance with the types of compliance requirements described in the
OMB Circular A-133 Compliance Supplement that could have a direct and material
effect on each of the District’s major federal programs for the year ended June 30,
2013. The District’s major federal programs are identified in the summary of
auditor’s results section of the accompanying schedule of findings and questioned
cost.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws,
regulations, contracts, and grants applicable to its federal programs.
Auditor’s Responsibility
My responsibility is to express an opinion on compliance for each of the District’s
major federal programs based on my audit of the types of compliance requirements
referred to above. I conducted my audit of compliance in accordance with auditing
standards generally accepted in the United States of America, the standards
applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; and OMB Circular A-133 Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and OMB
Circular A-133 require that I plan and perform the audit to obtain reasonable
assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the
District’s compliance with those requirements and performing such other procedures
as I considered necessary in the circumstance.
I believe that my audit provides a reasonable basis for my opinion on compliance
for each major federal program. However, my audit does not provide a legal
determination of the District’s compliance.
Opinion on Each Major Federal Program
In my opinion, Independent School District No. I-3, Creek County, Oklahoma,
complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major
federal programs for the year ended June 30, 2013.
- 30 -
Report on Internal Control Over Compliance
Management of Independent School District No. I-3, Creek County, Oklahoma is
responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In
planning and performing my audit of compliance, I considered the District’s
internal control over compliance with the types of requirements that could have a
direct and material effect on each major federal program to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing
an opinion on compliance for each major federal program and to test and report on
internal control over compliance in accordance with OMB Circular A-133, but not for
the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, I do not express an opinion on the effectiveness
Independent School District No. I-3, Creek County, Oklahoma’s internal control over
compliance.
A deficiency in internal control over compliance exists when the design or
operation of a control over compliance does not allow management or employees, in
the normal course of performing their assigned functions, to prevent, or detect
and correct, noncompliance with the type of compliance requirement of a federal
program on a timely basis. A material weakness in internal control over compliance
is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not
be prevented, or detected and corrected, on a timely basis. A significant
deficiency in internal control over compliance is a deficiency, or a combination
of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those
charged with governance.
My consideration of internal control over compliance was for the limited purpose
described in the first paragraph of this section and was not designed to identify
all deficiencies in internal control over compliance that might be material
weaknesses or significant deficiencies. I did not identify any deficiencies in
internal control over compliance that I consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to
describe the scope of our testing of internal control over compliance and the
results of that testing based on the requirements of OMB Circular A-133.
Accordingly, this report is not suitable for any other purpose.
Ralph Osborn
Ralph Osborn
Certified Public Accountant
Bristow, Oklahoma
February 10, 2014
- 31 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2013
Section I - SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of auditor’s report issued: Qualified on regulatory
basis of accounting
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency identified that is
not considered to be material weakness(es)? Yes X None Reported
Noncompliance material to financial
statements noted? Yes X No
Federal Awards
Internal control over major programs:
Material Weakness(es) identified? Yes X No
Significant deficiency identified that is
not considered to be material weakness(es)? Yes X None Reported
Type of auditor’s report issued on compliance
to major programs: Unqualified
Any audit findings disclosed that are required
to be reported in accordance with section
510(a) of Circular A-133 Yes X No
Identification of Major Programs
CFDA Number(s) Name of Federal Program or Cluster
84.010 Title I
84.027 Flow Through Part B
Dollar threshold used to distinguish
between type A and type B programs: $ 300,000
Auditee qualified as low-risk auditee? Yes X No
Section II - FINANCIAL STATEMENT FINDINGS
There were no items noted.
Section III - FEDERAL AWARD PROGRAM FINDINGS
There were no items noted.
- 32 -
MANNFORD SCHOOL DISTRICT NO. I-3
CREEK COUNTY, OKLAHOMA
STATUS OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2013
No items were reported in the prior audit.
- 33 -
