springdale 2014

8/17/2019 Springdale 2014

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SPRINGDALE SCHOOL DISTRICT NO. 50WASHINGTON COUNTY, ARKANSAS

REGULATORY BASIS FINANCIALSTATEMENTS AND

SUPPLEMENTARY INFORMATION

YEAR ENDED JUNE 30, 2014

with

REPORT OF INDEPENDENTCERTIFIED PUBLIC ACCOUNTANTS


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CONTENTS

PAGE

Report of independent certified public accountants 1 - 3

Regulatory basis financial statements: Balance sheet - regulatory basis 4Statement of revenues, expenditures and changes in fund balances -

governmental funds - regulatory basis 5Statement of revenues, expenditures and changes in fund balances -

budget to actual - general and special revenue funds - regulatory basis 6

Notes to financial statements 7 - 14

Other reports and supplementary information: Schedule of capital assets 15Independent auditors’ report on internal control over financial

reporting and on compliance and other matters based on anaudit of financial statements performed in accordance withGovernment Auditing Standards 16 - 17

Independent auditors’ report on compliance for each major program and on internal control over compliance required byOMB Circular A-133 18 - 19

Schedule of expenditures of federal awards 20 - 21Schedule of state assistance 22Schedule of findings and questioned costs 23 - 24Independent auditors’ report on compliance with Arkansas state

requirements 25Schedule of statutes required by Arkansas Department of

Education to be addressed in independent auditors’ report oncompliance 26

Supplemental data sheet as required by Arkansas Department of

Health and Human services Audit Guidelines Section IX-C 27


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4

Special Other Fiduciary

General revenue governmental fundfund fund funds types

ASSETS

Cash and cash equivalents 19,366,939$ 5,872,294$ 32,428,561$ 770,082$

Cash held with fiscal agent - - 223,254 - Due from other funds 1,887,393 - - - Accounts receivable 1,154,453 3,331,257 4,779 -

Total assets 22,408,785$ 9,203,551$ 32,656,594$ 770,082$

LIABILITIES AND FUND BALANCESLiabilities:

Accounts payable 1,378,643$ 302,511$ 1,203,530$ -$Accrued expenses 1,131,118 - - - Due to other funds - 1,887,393 - - Due to student /other groups - - - 770,082

Total liabilities 2,509,761 2,189,904 1,203,530 770,082

Fund balances: Restricted:

State programs 2,380,828 - - - Federal programs - 7,013,647 - -

Assigned:Capital projects - - 31,453,064 - Scholarships - - - -

Unassigned 17,518,196 - - -

Total fund balances 19,899,024 7,013,647 31,453,064 -

Total liabilities and fund balances 22,408,785$ 9,203,551$ 32,656,594$ 770,082$

SPRINGDALE SCHOOL DISTRICT NO. 50

BALANCE SHEET - REGULATORY BASIS

JUNE 30, 2014

Governmental Funds

Major

See accompanying notes.


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5

Special Other

General revenue governmentalfund fund funds

REVENUES

Property taxes 58,275,440$ -$ -$Interest - - 205,211 State revenues 115,532,326 79,795 1,785,945 Federal revenues - 27,930,230 -

Food services - 1,871,188 - Other 871,867 69,049 7,700

174,679,633 29,950,262 1,998,856

EXPENDITURESCurrent:

Instruction and instructional-related services 101,104,022 8,321,012 973,534 Support services 56,457,085 7,144,872 138,095 Non-instructional services 35,219 11,070,382 654,791 Other 4,348 136,430 -

Debt service:Principal - - 2,780,000 Interest - - 6,810,843 Paying agent’s fees - - 4,168

Capital outlay 1,816,586 2,079,900 6,448,404

159,417,260 28,752,596 17,809,835

xcess e c ency o revenues over expen tures 15,262,373 1,197,666 (15,810,979)

OTHER FINANCING SOURCES (USES)Transfers, net (13,321,299) 3,225 13,318,074 Proceeds from insurance claims 9,296 - 498,293

Total other financing sources (uses) (13,312,003) 3,225 13,816,367

Net change in fund balances 1,950,370 1,200,891 (1,994,612)

Fund balance - beginning 17,948,654 5,812,756 33,447,676

Fund balance - ending 19,899,024$ 7,013,647$ 31,453,064$



STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES - GOVERNMENTAL FUNDS - REGULATORY BASIS

Major



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Budget Actual Variance

REVENUES

Property taxes 59,500,000$ 58,275,440$ (1,224,560)$State revenues 111,333,950 115,532,326 4,198,376 Federal revenues - - - Food services - - - Other 563,206 871,867 308,661

171,397,156 174,679,633 3,282,477

EXPENDITURESCurrent:

Instruction and instructional-related services 102,203,923 101,104,022 1,099,901 Support services 59,052,696 56,457,085 2,595,611 Non-instructional services - 35,219 (35,219) Other - 4,348 (4,348)

Capital outlay 1,222,224 1,816,586 (594,362)

162,478,843 159,417,260 3,061,583

Excess (deficiency) of revenues overexpenditures 8,918,313 15,262,373 6,344,060

OTHER FINANCING SOURCES (USES)Transfers, net (9,707,389) (13,321,299) (3,613,910) Proceeds from insurance claims - 9,296 9,296

Total other financing sources (uses) (9,707,389) (13,312,003) (3,604,614)

Net change in fund balances (789,076)$ 1,950,370$ 2,739,446$



STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

BUDGET TO ACTUAL - GENERAL AND SPECIAL REVENUE FUNDS -

REGULATORY BASIS

General Fund



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Budget Actual Variance

-$ -$ -$75,000 79,795 4,795

25,086,963 27,930,230 2,843,267 2,050,000 1,871,188 (178,812)

- 69,049 69,049

27,211,963 29,950,262 2,738,299

11,736,544 8,321,012 3,415,532 10,198,316 7,144,872 3,053,444 11,036,644 11,070,382 (33,738)

239,206 136,430 102,776 2,237,252 2,079,900 157,352

35,447,962 28,752,596 6,695,366

(8,235,999) 1,197,666 9,433,665

- 3,225 3,225 - - -

- 3,225 3,225

(8,235,999)$ 1,200,891$ 9,436,890$

Special Revenue Fund


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7SPRINGDALE SCHOOL DISTRICT NO. 50

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2014

Note 1: Summary of significant accounting policies

Reporting entity

The Board of Education, a seven (7) member group, is the level of government which hasresponsibilities over all activities related to public elementary and secondary school education within the jurisdiction of the Springdale School District (“District”). There are no component units.

Fund accounting

Major governmental funds (per the regulatory basis of accounting) are defined as General and SpecialRevenue:

General Fund - The General Fund is the general operating fund and is used to account for all financialresources, except those required to be reported in another fund.

Special Revenue Fund - The Special Revenue Fund is used to account for and report the proceeds ofspecific revenue sources that are restricted or committed to expenditure for specified purposes other thandebt service or capital projects. The Special Revenue Fund includes federal revenues and relatedexpenditures, restricted for specific educational programs or projects, including the District’s foodservices operations. The Special Revenue Fund also includes transfers from the general fund tosupplement such programs.

Other governmental funds, presented in the aggregate, consist of the following:

Capital Projects Fund - The Capital Projects Fund is used to account for and report financial resources

that are restricted, committed, or assigned to expenditure for capital outlays including the acquisition orconstruction of capital facilities and other capital assets. The Capital Projects Fund excludes those typesof capital-related outflows financed by proprietary funds or for assets that will be held in trust forindividuals, private organizations, or other governments.

Debt Service Fund - The Debt Service Fund is used to account for and report financial resources thatare restricted, committed, or assigned to expenditures for principal and interest.

Fiduciary Fund types include the following:

Agency Funds - Agency Funds are used to report resources held by the reporting government in a purely custodial capacity (assets equal liabilities).

Measurement focus and basis of accounting

The financial statements are prepared in accordance with a regulatory basis of accounting (RBA), whichis an Other Comprehensive Basis of Accounting (OCBOA). This basis of accounting is prescribed byArk. Code Ann. 10-4-413(c), as provided in Act 2201 of 2005, and requires that financial statements be presented on a fund basis with, as a minimum, the general fund and special revenue fund presentedseparately and all other funds included in the audit presented in the aggregate. The law also stipulatesthat the financial statements consist of a balance sheet; a statement of revenues, expenditures, andchanges in fund balances; a comparison of the final adopted budget to the actual expenditures for thegeneral fund and special revenue funds of the entity; notes to financial statements; and a supplementalschedule of capital assets, including land, buildings, and equipment. The law further stipulates that theState Board of Education shall promulgate the rules necessary to administer the regulatory basis of presentation.


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JUNE 30, 2014

Note 1: Summary of significant accounting policies (continued)

Measurement focus and basis of accounting (continued)

The RBA is not in accordance with generally accepted accounting principles (GAAP). GAAP requiresthat basic financial statements present government-wide financial statements. Additionally, GAAPrequires the following major concepts: Management’s Discussion and Analysis, accrual basis ofaccounting for government-wide financial statements, including depreciation expense, modified accrual basis of accounting for fund financial statements, separate financial statements for fiduciary fund types,separate identification of special and extraordinary items, inclusion of capital assets and debt in thefinancial statements, specific procedures for the identification of major governmental funds andapplicable note disclosures. The RBA does not require government-wide financial statements or the previously identified concepts.

The accompanying financial statements are presented on a fund basis. A fund is defined as a fiscal andaccounting entity with a self-balancing set of accounts, which are segregated for purposes of recordingspecific activities or attaining certain objectives. Revenues are reported by major sources andexpenditures are reported by major function. Other transactions, which are not reported as revenues orexpenditures, are reported as other financing sources and uses. Transactions related to the recording ofinstallment contracts and capital leases are reported as other financing sources. Changes in private- purpose trust funds, if any, will be reflected in the notes to the financial statements.

Revenue recognition policies

Revenues are recognized when they become susceptible to accrual in accordance with the RBA, exceptfor property taxes (see below).

Capital assets

Information on capital assets and related depreciation is reported in the accompanying Schedule ofCapital Assets. Capital assets are capitalized at historical cost or estimated historical cost, if actual datais not available. Capital assets purchased are recorded as expenditures in the applicable fund at the timeof purchase. Donated capital assets are reported at fair value when received. The District maintains athreshold level of $1,000 for capitalizing equipment. Library holdings are not capitalized.

No salvage value is taken into consideration for depreciation purposes. All capital assets, other thanland and construction in progress, are depreciated using the straight-line method over the followinguseful lives:

Asset Class Estimated Useful Life in YearsImprovements/infrastructure 20Building 50Equipment 5-20

Property taxes

Property taxes are levied in November based on property assessments made between January 1 andMay 31 and are an enforceable lien on January 1 for real property and June 1 for personal property. Thetax records are opened on the first business day of March of the year following the levy date and areconsidered delinquent after October 15 of the same calendar year.


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JUNE 30, 2014


Property taxes (continued)

Arkansas Code § 6-20-401 allows, but does not mandate, the District to accrue the difference betweenthe amount of the 2013 calendar year taxes collected by June 30, 2014, and 28% of the proceeds of thelocal taxes that are not pledged to secure bonded indebtedness. The District elected not to accrue property taxes or the option to accrue property taxes was not applicable because the amount of propertytaxes collected by June 30, 2014, equaled or exceeded the 28% calculation. In the current year, theDistrict collected approximately $10,200,000 more than the stated 28% pullback amount and hasrecorded this amount in its current year revenues.

Amendment No. 74 to the Arkansas Constitution established a uniform minimum property tax millage

rate of 25 mills for maintenance and operation of public schools. Ark. Code Ann. 26-80-101 providesthe uniform rate of tax (URT) shall be assessed and collected in the same manner as other school property taxes, but the net revenues from the URT shall be remitted to the State Treasurer anddistributed by the State to the county treasurer of each county for distribution to the school districts inthat county. For reporting purposes, URT revenues are considered property taxes.

Fund balance classifications

Under GASB 54, fund balance is reported under the following five classifications:

1. Nonspendable Fund Balance - includes amounts that are not in a spendable form or are

required to be maintained intact. The District does not have any nonspendable fund balance atyear end.

2. Restricted Fund Balance - includes amounts that can be spent only for the specific purposesstipulated by external resource providers, constitutionally, or through enabling legislation. TheRestricted for State Programs and Restricted for Federal Programs balances reflect amountsrestricted for specific state and federal programs as mandated by respective state and federalgrant or funding agreements.

3. Committed Fund Balance - includes amounts that can be used only for the specific purposesdetermined by a formal action of the District's highest level of decision-making authority (theBoard of Education) and does not lapse at year end. The District does not have any committedfund balance at year end.

4. Assigned Fund Balance - includes amounts intended for a specific purpose by the Board of

Education or by a District official that has been delegated authority to assign amounts. TheDistrict has assigned portions of its fund balance for construction or other capital outlay projectsand for scholarship programs.

5. Unassigned Fund Balance - includes any remaining fund balance that has not been reported inany other classification. This classification can also include negative amounts in othergovernmental funds, if expenditures incurred for specific purposes exceeded the amountsrestricted, committed, or assigned to those purposes.


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JUNE 30, 2014


Fund balance classifications (continued)

For the purposes of fund balance classification, the District’s policy is to have expenditures spent fromrestricted fund balance first, followed in order by committed fund balance (if any), assigned fund balance (if any) and lastly unassigned fund balance.

Budget and budgetary accounting

The District is required by state law to prepare an annual budget. The annual budget is prepared on afiscal year basis. The District does not prepare and submit amended budgets during the fiscal year. TheState Department of Education’s regulations allow for the cash basis or the modified accrual basis.

The District budgets intra-fund transfers. Significant variances may result in the comparison of transfersat the Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -General and Special Revenue Funds - Regulatory Basis because only interfund transfers are reported atthe Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds -Regulatory Basis.

Budgetary perspective differences are not considered to be significant, because the structure of theinformation utilized in preparing the budget and the applicable fund financial statements is essentiallythe same.

Note 2: Cash deposits with financial institutions

Cash deposits are carried at cost (carrying value). A comparison of the bank balance and carrying valueis as follows:

Carrying Bank amount balance

Insured (FDIC) $ 473,254 $ 473,254Collateralized - held by pledging bank or pledging bank’s trust department in the District’s name 58,187,876 66,710,502

Total deposits $ 58,661,130 $ 67,183,756

Note 3: Cash held with fiscal agent

Cash held with fiscal agent includes funds held in escrow totaling $223,254 that includes sinking funddeposits for Qualified Zone Academy Binds that are required to be used for future principal payments.


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JUNE 30, 2014

Note 4: Accounts receivable

The account receivable balance of $4,490,489 is comprised of the following at June 30, 2014:

Special CapitalClass of General revenue projects

receivable fund fund fund Total

Local taxes $ 312,525 $ - $ - $ 312,525Due from other

governments 841,928 3,331,257 4,779 4,177,964

Total $ 1,154,453 $ 3,331,257 $ 4,779 $ 4,490,489

Note 5: Commitments

Construction commitments

The District was contractually obligated for three construction contracts related to construction andrenovation projects within the District, with remaining contract balances of approximately $2,700,000 atJune 30, 2014.

Long-term debt issued and outstanding

The District is presently paying on the following long-term debt:

Amount Debt Maturities

Date of Date of final Rate of authorized outstanding toissue maturity interest and issued June 30, 2014 June 30, 2014

Bonds payable:6/1/2011 6/1/2041 3.0 - 4.75% 135,650,000 128,505,000 7,145,0009/27/2011 9/27/2021 4.48% 1,115,456 1,115,456 -9/20/2012 6/1/2041 2.0 - 3.70% 37,025,000 35,575,000 1,450,000

Totals $ 173,790,456 $ 165,195,456 $ 8,595,000

Changes in long-term debt: Balance Balance

Description July 1, 2013 Issued Retired June 30, 2014

Bonds payable $ 166,860,000 $ - $ 2,780,000 $ 164,080,000Qualified School Construction

Bonds 1,115,456 - - 1,115,456

Totals $ 167,975,456 $ - $ 2,780,000 $ 165,195,456


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JUNE 30, 2014

Note 5: Commitments (continued)

Long-term debt issued and outstanding (continued)

Total long-term debt principal and interest payments are as follows:

Year endedJune 30 Principal Interest Total

2015 $ 3,135,000 $ 6,761,415 $ 9,896,4152016 3,505,000 6,649,115 10,154,1152017 3,880,000 6,523,215 10,403,2152018 4,025,000 6,386,715 10,411,715

2019 4,145,000 6,265,965 10,410,9652020 - 2024 24,005,456 29,080,980 53,086,4362025 - 2029 27,485,000 24,349,253 51,834,2532030 - 2034 33,665,000 18,261,219 51,926,2192035 - 2039 41,845,000 10,219,401 52,064,4012040 - 2041 19,505,000 1,345,280 20,850,280

Totals $ 165,195,456 $ 115,842,558 $ 281,038,014

Note 6: Operating leases

The District leases two office spaces from The Jones Trust under cancelable operating leases. The terms

of the leases contain a contingent rent clause based on the rate of the electrical utility. In the event theelectrical rate increases by more than 25% from the original rate at the inception of the leases, $0.0258 per KWH, the rent will increase $0.19 per square foot annually for every $0.01 per KWH increaseincurred in the electrical utility rate.

For the year ended June 30, 2014, the District incurred $90,325 in total rent expenditures.

Note 7: Accounts payable

The accounts payable balance of $2,884,684 at June 30, 2014 is as follows:

General Special Capital

fund revenue fund projects fund Total

Vendor payables $ 1,378,643 $ 302,511 $ 1,203,530 $ 2,884,684


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JUNE 30, 2014

Note 8: Interfund transfers

The following details the transfers between governmental funds for operating purposes:

General Special Capital Debtfund revenue fund projects fund service fund Total

Transfers in 226,943,955 $ 7,708 $ 11,186,246 $ 9,595,011 $ 247,732,920Transfers out (240,265,254) (4,483) (7,463,183) - (247,732,920)

$ (13,321,299) $ 3,225 $ 3,723,063 $ 9,595,011 $ -

Note 9: Retirement plans

Arkansas Teacher Retirement System

Plan description: The District contributes to the Arkansas Teacher Retirement System (ATRS), a cost-sharing multiple-employer defined benefit pension plan that covers all Arkansas public schoolemployees, except certain nonteachers hired prior to July 1, 1989. ATRS provides retirement anddisability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit and contribution provisions are established by State law and can be amended only by the Arkansas General Assembly. The Arkansas Teacher Retirement System issues a publiclyavailable financial report that includes financial statements and required supplementary information forATRS. That report may be obtained by writing to Arkansas Teacher Retirement System, 1400 WestThird Street, Little Rock, Arkansas 72201 or by calling 1-800-666-2877.

Funding policy: ATRS has contributory and non-contributory plans. Contributory members arerequired by law to contribute 6% of their salary. Each participating employer is required by law tocontribute at a rate established by the Arkansas General Assembly. The current employer rate is 14%.

The District’s contributions to ATRS for nonfederally-funded employees for the years ended June 30,2014, 2013, and 2012 were $16,096,809, $15,317,700, and $14,242,916 respectively. The District’scontributions to ATRS for federally-funded employees for the years ended June 30, 2014, 2013, and2012 were $1,133,478, $806,468, and $746,021, respectively, equal to the required contributions foreach year.

Arkansas Public Employees Retirement System

Plan description: The District contributes to the Arkansas Public Employees Retirement System(APERS), a cost-sharing multiple-employer defined benefit pension plan that covers certain nonteachingArkansas public school employees hired before July 1, 1989. APERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries.Benefit and contribution provisions are established by State law and can be amended only by theArkansas General Assembly. The Arkansas Public Employees Retirement System issues a publiclyavailable financial report that includes financial statements and required supplementary information forAPERS. That report may be obtained by writing to Arkansas Public Employees Retirement System,One Union National Plaza, 124 W. Capitol, Little Rock, Arkansas 72201 or by calling 1-800-682-7377.


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JUNE 30, 2014

Note 9: Retirement plans (continued)

Arkansas Public Employees Retirement System (continued)

Funding policy: APERS has contributory and non-contributory plans. Contributory members arerequired by law to contribute 5% of their salary. Each participating employer is required by law tocontribute at a rate established by the Arkansas General Assembly. The current statutory employer rateis 4% of annual covered payroll. The District’s contributions to APERS for the years ended June 30,2014, 2013 and 2012 was $2,790, $4,785, and $5,710, respectively, equal to the required contributionsfor each year.

Note 10: Risk management

The District is exposed to various risks of loss from torts; theft of, damage to and destruction of assets;errors and omissions; and natural disasters for which the District carries commercial insurance.

The District carries commercial insurance for coverage of buildings’ contents, board liability, theft,student accidents, bus drivers, and business trip accidental death and dismemberment. Settled claimshave not exceeded this commercial coverage in any of the past three fiscal years. There were nosignificant reductions in insurance coverage from the prior year in the major categories of risk.

The District is a member of the Arkansas School Board Association self-insurance program, a publicentity risk pool currently operating a common risk management and insurance program for its members.The fund was created by members to formulate, develop and administer a program of self-funding forthe fund’s membership, obtain lower costs for Workmen’s Compensation Coverage and develop a

comprehensive loss control program. The District pays an annual premium to the fund for itsWorkmen’s Compensation Coverage. The Pool’s governing agreement specifies that the Pool will beself-sustaining through member premiums and will reissue through commercial carriers for claims inexcess of specified stop loss amounts.

Note 11: Litigation and contingencies

The District participates in federally assisted grant programs. The District is potentially liable forexpenditures which may be disallowed pursuant to the terms of these grant programs. Management isnot aware of any material items of noncompliance which would result in the disallowance of programexpenditures.

Note 12: On behalf payments

During the year ended June 30, 2014, health insurance premiums of $2,511,593 were paid by theArkansas Department of Education to the Arkansas Employee Benefits Division on behalf of Districtemployees.

Note 13: Subsequent event

Subsequent to year-end, the District issued a construction bond in the amount of $3,465,000.


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OTHER REPORTS AND SUPPLEMENTARY INFORMATION


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Nondepreciable capital assets:

Land 20,610,496$Construction in progress 5,402,949

Total nondepreciable capital assets 26,013,445

Depreciable capital assets:Site improvements 5,203,915 Buildings 267,797,456

Machinery and equipment 29,685,320 Total depreciable capital assets 302,686,691

Less accumulated depreciation for:Site improvements 1,284,499 Buildings 54,563,724 Machinery and equipment 18,635,773

Total accumulated depreciation 74,483,996

Total depreciable capital assets, net 228,202,695

Capital assets, net 254,216,140$


SCHEDULE OF CAPITAL ASSETS


(Unaudited)


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FederalCFDA Federal

number expenditures

TITLE I CLUSTER

U.S. Department of Education

Passed through Arkansas Department of Education:Title I, Part A - Grants to Local Education Agencie 84.010 5,388,813 Title I, Regular 1003 (A) - School Improvement Grant 84.010 129,098 Title I, Part D - Neglected and Delinquent Children 84.010 80,419

Total Title I - Cluster 5,598,330

CHILD NUTRITION CLUSTER

U.S. Department of Agriculture

Passed through Arkansas Department of Education:School Breakfast Program - Cash Assistance 10.553 2,583,737 National School Lunch Program - Cash Assistance 10.555 6,727,273

Total Arkansas Department of Education 9,311,010

Passed through Arkansas Department of Human Services: National School Lunch Program - Non-Cash Assistance 10.555 605,261

Total Child Nutrition Cluster 9,916,271

OTHER PROGRAMS:

U.S. Department of Agriculture

Passed through Arkansas Department of EducationChild and Adult Care Food Program 10.558 24,558

Passed through Arkansas Department of Human ServicesChild and Adult Care Food Program 10.558 155,812

Total U.S. Department of Agriculture 180,370

U.S. Department of Education

Direct programsRace to the Top - District Grants 84.416 3,622,287 Title V, Part D- Fund for Improvement Education 84.215 505,187

Passed through Arkansas Department of Career Education:

Vocational Education - Basic Grants 84.048 301,258


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Federal grant/pass-throughgrantor/program title


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FederaCFDA Federal

num er expen ures

U.S. Department of Education (continued)

Passed through Arkansas Department of Education:Title I, Migrant Education 84.011 229,506$Title VI - Part B - Special Education Grants to States 84.027 3,858,708 Title IV-B, 21st Century Community Learning Center 84.287 660,753 Title III, English Language Acquisitio 84.365 870,125 Title II, Part A - Improving Teacher Qualit 84.367 383,766

Total Arkansas Department of Education 6,002,858

Total U.S. Department of Education 10,431,590

U.S. Department of Health and Human Services

Passed through Arkansas Department of Education:Comprehensive School Health Programs to Prevent

the Spread of HIV 93.938 622

Passed through Arkansas Department of Human ServicesChild Care and Development Block Grant 93.575 792,179

Total Other Programs 11,404,761

Total Expenditures of Federal Awards 26,919,362$

1.

2.

3.

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)


NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

This schedule includes the federal awards activity of the District and is presented on the regulatory

basis of accounting. The information in this schedule is presented in accordance with the

requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit

Organizations. Therefore, some amounts presented in this schedule may differ from amounts

presented in, or used in the preparation of the basic financial statements.

gran or program e

Medicaid reimbursements are defined as contracts for services and not federal awards, therefore,

such reimbursements totaling $376,978 are not covered by the reporting requirements of OMB

Circular A-133.

Nonmonetary assistance is reported at the approximate value as provided by the Arkansas

Department of Human Services.

Federal grant/pass-through



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Arkansas Department of EducationState Foundation Funding 91,701,997$

DS Fund 1,073,026 Student Growth Funding 2,899,577 General Facilities Funding 1,836,279 Professional Develo ment Fundin 887,703 LEP Allocation 2,775,675 Food Service State Matching 79,795 Special Education - Catastrophic Occurrences 1,415,370 Alternative Learning 1,789,589 National School Lunch Student Funding 7,224,646

Arkansas Better Chance Program 3,147,784 AP Exam Award 37,150 Tobacco Excise Grant 104,000 National Board of Professional Teaching Standards 2,332 Wellness Center 5,958 Extended School Year Fundin 109,642 Child Supervision Extended School Year Funding 77,342 International Baccalaureate Progra 22,000 Arkansas School Recognition 209,264 PQE Mentoring 103,426 Residential Treatment 1,840,114

Other Grants & State Aid 2,855

117,345,524

Arkansas Department of Career EducationSVAC Funding 52,542

Total State Assistance 117,398,066$

SCHEDULE OF STATE ASSISTANCE




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SCHEDULE OF FINDINGS AND QUESTIONED COSTS


A. SUMMARY OF AUDITORS’ RESULTS

1. Our report expresses an adverse opinion based on generally accepted accounting principlesand an unmodified opinion based on a regulatory basis of accounting on the basic financialstatements of Springdale School District No. 50.

2. The independent auditors’ report on internal control over financial reporting described:

Significant deficiency(ies) identified?Yes No

Material weakness(es) identified?Yes No

3.

Noncompliance considered material to the financial statementswas disclosed by the audit?

Yes No

4. The independent auditors’ report on internal control over compliance with requirementsapplicable to major federal awards programs described:

Significant deficiency(ies) identified?Yes No

Material weakness(es) identified?Yes No

5. The opinion expressed in the independent auditors’ report on compliance with requirementsapplicable to major federal awards was:

Unmodified Modified Adverse Disclaimed

6. The audit disclosed findings required to be reported byOMB Circular A-133?

Yes No

7. The Auditee’s major programs were:

Cluster/Program CFDA Number(s) Child Nutrition Cluster 10.553 and 10.555 Race to the Top – District Grants 84.416

8. The threshold used to distinguish between Type A & Type B programs as those terms aredefined in OMB Circular A-133 was $807,581.


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SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)


A. SUMMARY OF AUDITORS’ RESULTS (CONTINUED)

9. The Auditee qualified as a low-risk auditee as that term isdefined in OMB Circular A-133?

Yes No

B. FINDINGS - FINANCIAL STATEMENTS AUDIT

None

C. FINDINGS AND QUESTIONED COSTS - FEDERAL AWARDS AUDIT

None

D. PRIOR YEAR FINDINGS AND QUESTIONED COSTS

None


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SCHEDULE OF STATUTES REQUIRED BY ARKANSAS DEPARTMENT OF EDUCATIONTO BE ADDRESSED IN INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE


DESCRIPTION STATUTES Bidding & Purchasing Commodities 6-21-301 – 6-21-305

Ethical Guidelines and Prohibitions 6-13-628; 6-24-101 et seq.

Collateralization & Investment of Funds 6-20-222; 19-1-504

Deposit of Funds 19-8-104; 19-8-106

District Finances

Bonded & Non-bonded Debt,

District School Bonds

Petty Cash

Changes in Pullback (no deferrals –

declining accrual percentages)

Investment of Fund

6-20-402

6-20-1201 – 6-20-1208; 6-20-12106-20-409

6-20-40119-1-504

Management of Schools

Board of Directors

District Treasurero Warrants/checks

6-13-604; 6-13-606; 6-13-608; 6-13-611 – 6-13-613; 6-13-6176-13-620; 6-24-101 et seq.6-13-7016-17-918; 6-17-919; 6-20-403

Management Letter for Audit 14-75-101 – 14-75-104

Nonrecurring Salary Payments 6-20-412

Revolving Loan Fund 6-19-114; 6-20-801 et seq.

Salary Laws - Classified 6-17-2201 et seq.; 6-17-2301 et seq.

Salary Increases 5% or more (certifiedand classified

6-13-635

School Elections 6-13-622; 6-13-630; 6-13-631; 6-13-634; 6-14-106; 6-14-109;6-14-118

Teachers and Employees

Personnel Policies

Employment and Assignment

Teacher's License Requirement

Contracts

Certification Requirements

Fair Dismissal Act

Sick Leave Policies

6-17-201 et seq., 6-17-23016-17-301 et seq.6-17-401 et seq.6-17-801 et seq.6-17-309; 6-17-4016-17-1501 et seq.; 6-17-1701 et seq.

6-17-1201 et seq.; 6-17-1301 et seq.

Teacher Salaries and Foundation

Funding Aid

6-17-803; 6-17-907; 6-17-908; 6-17-911 – 6-17-913; 6-17-9186-17-919

Trust Funds (Education Excellence) 6-5-307

Use of Contractors, Improvement

Contracts

22-9-201 – 22-9-205

Use of DM&O Millage 26-80-110

On Behalf Payments The amounts of funds paid by the Arkansas Department ofEducation to the Employee Benefits Division, on-behalf ofDistrict employees


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SUPPLEMENTAL DATA SHEET


The following information is being provided to satisfy the requirements of Arkansas Department ofHealth and Human Services Audit Guidelines, Section IX. C - Special Requirements:

1. Entity's Full Name: Springdale School District No. 50 of Washington County

2. Entity's Address: P.O. Box 8Springdale, AR 72765

3. Entity's FEIN: 71-6021364

4. Entity's Telephone Number: (479) 750-8804

5.

Name of Director: Dr. Jim Rollins, Superintendent6. Name of Contact Person: Kelly Hayes, Comptroller

springdale 2014

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