Was required by act 7 of the 2005 legislature

Made up of 20 evaluation criteria to show the local districts trends or current standing

Used to make the state aware of potential financial risks of local school districts

Public school enrollment Non-public school enrollment Local property & sales tax collections Fiscal conditions & district performance

scores Future obligations Certified school business officials Submittal of general fund budget forms

Submittal of Annual Financial Report (AFR)

Audit opinion on internal controls Consecutive audit findings Fraud Single audit report (A-133) Program monitoring Fiscal monitoring

General purpose financial statements Expenditures of federal programs Compliance with laws and regulations

on federal programs General fund deficit spending General fund balance as % of general

fund revenues Major events

Uses five year period

Looks for declining enrollment

If enrollment is declining might suggest adjustments need to be made in staffing

Looks at percentage of non-public enrollment to public enrollment

Looks for change greater than 15%

Looks at the prior five years

Looks at whether revenues are increasing or declining

Also looks at collections per student vs state average

Looks at expenditures per pupil

Ranks in relation to % below state average

Looks at district performance score

Looks at percent of teachers with more than15 years experience

Due to future retiree benefit costs (health ins)

Is the district’s business manager certified by LASBO

Does the business manager have CPA license

Was the budget submitted to DOE on time

Was it 1-14 days late or greater

Was the annual financial report submitted to DOE on time

Was it 1-14 days late or greater

Does the auditor list any weakness on internal controls

If there are internal controls was it a material weakness

Are the auditors finding the same problems year after year

Rated excellent, good, needs improvement or unacceptable

Was there any evidence of fraud discovered by auditors

Was there more than one case

Was it a material case of fraud

Based on district’s external audit

Looks for questioned costs

What percentage of expenditures were questioned

Less than 5% good

Greater than 10% unacceptible

Based on LDOE program monitoring

Looks at the use of funds related to program

Based on questioned costs by LDOE monitoring

Same percentages as single audit report

Based on LDOE monitoring

Looks for questioned costs in relation to fiscal issues (attached backups to checks, ect.)

This is based on external auditors opinion

Looking for unqualified opinion

Do not want an adverse opinion

This is based on the opinion the external auditors gave on the expenditures of federal programs

This is based on separate opinion the external auditors give on compliance with laws & regulations

Again looking for unqualified opinion

The looks at a five year period

Critical that district address continuous deficit spending

This looks at the district’s fund balance as related to revenues

Excellent is 7.5% or greater (GFOA recomments a fund balance of at least 12%)

Less than five percent is considered unacceptable

New school systems will be monitored by the state

Events such as districts impacted by hurricanes cause districts to be monitored by the state

Going concern opinion by the external auditor means there is concern that the district cannot meet its financial obligations

This document can be used as a positive in bond rating

the financial risk analysis can also be used with your stakeholders to show how well the district is operated