2012 Audit ReportAmes Community School District

2012 Financial HighlightsFiscal 2012 General Fund revenues

exceeded expenses by $5.7 million resulting in an increase in the fund balance from $10.2 million to $15.9 million

2012 Financial HighlightsRevenues were $51.7 million vs.

$50.6 million in fiscal 2011, and expenditures were $46.0 million vs. $46.2 million in fiscal 2011

2012 Financial HighlightsThe increase in General Fund

revenues was attributable to an increase in state sources

The decrease in expenditures was due primarily to a decrease in negotiated salaries and benefits

Economic HighlightsThe District has experienced declining

enrollment in nine of the past eleven years. Enrollment decreased 79 students for the

October 2010 enrollment count and another 55 students for the October 2011 enrollment count.

The District experienced an increase of 4 students for the October 2012 enrollment count.

Economic HighlightsThe District’s sales tax revenues remain

strong with a small percentage of growth to help fund capital expenditures in the District.

Economic HighlightsOn July 1, 2012, the IPERS increase to

8.67% will increase the Ames Community Schools employer benefit costs during fiscal 2013.An additional increase to 8.93% is

anticipated for FY14.

Unassigned Fund Balance and Solvency Ratio Comparison

Solvency Ratio = Unassigned Fund Balance Revenues - AEA Flowthrough

2010 2011 2012$4,560,310 $8,677,174 $14,240,553

9.49% 17.16% 28.40%

General Fund Revenues

Total General Fund Revenues of $51,662,662

Local tax Tuition Other State Sources Federal Sources -

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000 26,957,341

2,653,778 1,031,013

17,133,787

2,803,820

26,543,335

2,566,422 1,088,045

18,670,663

2,794,197

20112012

General Fund Expenses

Total General Fund Expenses of $45,945,827

Salaries Benefits Services Supplies Other -

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

24,583,027

11,895,360

4,618,570

2,232,784 1,858,936

24,899,349

12,302,798

4,816,443

2,226,625 1,700,612

20112012

Governmental Funds Restricted Fund Balance

2010 2011 2012Capital Projects $2,306,770 $3,064,829 $2,392,066Management $3,171,284 $2,298,864 $2,659,136Student Activity $343,530 $338,291 $331,741Debt Service $2,851,320 $3,891,550 $4,462,861

Capital Projects Management Student Activity Debt Service -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

201020112012

Proprietary Fund Total Net Assets

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2010 2011 2012School Nutrition ($294,993) $679,761 $699,295Internal Service Fund $4,782,474 $5,106,816 $4,848,886

2010 2011 2012

(300,000) (200,000) (100,000)

- 100,000 200,000 300,000 400,000 500,000 600,000 700,000

School Nutrition

2010 2011 2012 4,600,000

4,700,000

4,800,000

4,900,000

5,000,000

5,100,000

5,200,000

Internal Service Fund

Part II: Findings Related to the Financial Statements Agency Fund - We noted that the District

appears to be improperly accounting for Agency Fund accounts. We noted pop funds, staff appreciation, MS

teacher awards and the Environment Committee are reported in the Agency Fund.

Also noted the Academic Boosters are reported in the Agency Fund.

Part II: Findings Related to the Financial Statements Infinite Campus - We noted that the

District uses Infinite Campus software for the accounting of individual balances for lunch accounts. The District does not appear to reconcile

the balance in the individual student accounts to the General Ledger.

Part IV: Other Findings Related to Required Statutory Reporting Certified Budget - District

disbursements for the year ended June 30, 2012 exceeded the certified budget amounts in the non-instructional programs functional area.

Part IV: Other Findings Related to Required Statutory Reporting Questionable Disbursements - We

noted the District purchased volunteer t-shirts from the Student Activity Fund.

Part IV: Other Findings Related to Required Statutory Reporting Certified Enrollment - We noted a

variance in the basic enrollment data certified to the Department of Education. The number of resident students was

understated by 0.44.

Part IV: Other Findings Related to Required Statutory Reporting Officiating Contracts - We noted that

the Athletic Director was signing Activity Fund officiating contracts. According to 291.1 of the Code of Iowa, the

Board President shall sign all contracts entered into by the District.

Part IV: Other Findings Related to Required Statutory Reporting Student Activity Fund -

Scholarship Awards: It appears that the District awards scholarships to students from proceeds generated from activities recorded in the Vocal Club within the High School account.

Part IV: Other Findings Related to Required Statutory Reporting Student Activity Fund -

Commissions: We noted that Lifetouch commissions were recorded in the Student Activity Fund.

Thank you

We’d like to thank the Board of Directors for selecting us as your independent auditors, as well as the management and

staff in preparing for the audit.

We recognize that many hours go into preparing for our audit and we appreciate your efforts.