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