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SPRINGDALE SCHOOL DISTRICT NO. 50WASHINGTON COUNTY, ARKANSAS

REGULATORY BASIS FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

YEAR ENDED JUNE 30, 2012

with

REPORT OF INDEPENDENTCERTIFIED PUBLIC ACCOUNTANTS

CONTENTS

PAGE

Report of independent certified public accountants 1 - 2

Regulatory basis financial statements:Balance sheet - regulatory basis 3Statement of revenues, expenditures and changes in fund

balances - governmental funds - regulatory basis 4Statement of revenues, expenditures and changes in fund

balances - budget to actual - general and special revenue funds - regulatory basis 5

Notes to financial statements 6 - 13

Other reports and supplementary information:Schedule of capital assets 14Report 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 15 - 16

Independent Auditors’ report on compliance with requirements that could have a direct and material effect on each major program and on internal control over compliance in accordance with OMB Circular A-133 17 - 18

Schedule of expenditures of federal awards 19 - 20Schedule of state assistance 21Schedule of findings and questioned costs 22 - 23Independent auditor’s report on compliance with Arkansas state

requirements 24Schedule of statutes required by Arkansas Department of

Education to be addressed in independent auditor’s report on compliance for the year ended June 30, 2012 25

Supplemental data sheet as required by Arkansas Department of Health and Human services Audit Guidelines Section IX-C 26

3

Special Other FiduciaryGeneral revenue governmental fund

fund funds funds types

ASSETS

Cash and cash equivalents 14,972,309$ 4,222,973$ 24,862,175$ 1,093,477$ Due from other funds 1,868,727 - - - Accounts receivable 1,823,869 2,572,110 939,971 -

Total assets 18,664,905$ 6,795,083$ 25,802,146$ 1,093,477$

LIABILITIES AND FUND BALANCESLiabilities:

Accounts payable 333,845$ 13,962$ 4,620,981$ -$ Accrued expenses 1,392,979 - - - Due to other funds - 1,868,727 - - Due to student /other groups - - - 538,315

Total liabilities 1,726,824 1,882,689 4,620,981 538,315

Fund Balances:Restricted:

State programs 1,036,200 - - - Federal programs - 4,912,394 - -

Assigned:Capital projects - - 21,181,165 - Scholarships - - - 555,162

Unassigned 15,901,881 - - -

Total fund balances 16,938,081 4,912,394 21,181,165 555,162

Total liabilities and fund balances 18,664,905$ 6,795,083$ 25,802,146$ 1,093,477$

SPRINGDALE SCHOOL DISTRICT NO. 50

BALANCE SHEET - REGULATORY BASIS

JUNE 30, 2012

Governmental Funds

Major

See accompanying notes.

4

Special OtherGeneral revenue governmental

funds funds funds

REVENUES

Property taxes 59,599,772$ -$ -$ Interest 22,586 - 182,039 State revenues 99,651,141 107,055 11,292,269 Federal revenues - 19,560,001 959,981 Food services - 2,103,045 - Other 669,068 80,701 31,616

159,942,567 21,850,802 12,465,905

EXPENDITURESCurrent:

Instruction and instructional-related services 89,882,446 4,883,016 - Support services 48,956,836 5,514,254 - Non-instructional services 2,055 9,251,091 - Other - 104,988 -

Debt service:Principal - - 3,300,000 Interest - - 5,890,633 Paying agent’s fees - - 3,895

Capital outlay 1,570,696 1,013,795 29,100,900

140,412,033 20,767,144 38,295,428

Excess (deficiency) of revenues over expenditures 19,530,534 1,083,658 (25,829,523)

OTHER FINANCING SOURCES (USES)Transfers, net (20,216,060) - 20,216,060 Proceeds from insurance claims 1,417,747 - - Proceeds from postdated warrant - - 1,115,456

Total other financing sources (uses) (18,798,313) - 21,331,516

Net change in fund balances 732,221 1,083,658 (4,498,007)

Fund balance - beginning 16,205,860 3,828,736 25,679,172

Fund balance - ending 16,938,081$ 4,912,394$ 21,181,165$



STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES - GOVERNMENTAL FUNDS - REGULATORY BASIS

Major


Budget Actual Variance

REVENUESProperty taxes 59,000,000$ 59,599,772$ 599,772$ Interest 25,000 22,586 (2,414) State revenues 96,503,624 99,651,141 3,147,517 Federal revenues - - - Food services - - - Other 250,000 669,068 419,068

155,778,624 159,942,567 4,163,943

EXPENDITURESCurrent:

Instruction and instructional-related services 92,623,772 89,882,446 2,741,326 Support services 53,011,827 48,956,836 4,054,991 Non-instructional services - 2,055 (2,055) Other - - -

Capital outlay 700,000 1,570,696 (870,696) 146,335,599 140,412,033 5,923,566

Excess (deficiency) of revenues over expenditures 9,443,025 19,530,534 10,087,509

OTHER FINANCING SOURCES (USES)Transfers, net (13,244,886) (20,216,060) (6,971,174) Proceeds from insurance claims 1,290,000 1,417,747 127,747

Total other financing sources (uses) (11,954,886) (18,798,313) (6,843,427)

Net change in fund balances (2,511,861)$ 732,221$ 3,244,082$



STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL - GENERAL AND SPECIAL REVENUE FUNDS -

REGULATORY BASIS

General Funds


5

Budget Actual Variance

-$ -$ -$ - - - - 107,055 107,055

19,447,234 19,560,001 112,767 1,800,000 2,103,045 303,045

- 80,701 80,701

21,247,234 21,850,802 603,568

5,512,873 4,883,016 629,857 6,428,646 5,514,254 914,392 7,954,672 9,251,091 (1,296,419)

119,148 104,988 14,160 1,495,898 1,013,795 482,103

21,511,237 20,767,144 744,093

(264,003) 1,083,658 1,347,661

- - - - - -

- - -

(264,003)$ 1,083,658$ 1,347,661$

Special Revenue Funds

6SPRINGDALE SCHOOL DISTRICT NO. 50

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2012

Note 1: Summary of significant accounting policies

Reporting entity

The Board of Education, a seven (7) member group, is the level of government which has responsibilities 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 Special Revenue:

General Fund - The General Fund is the general operating fund and is used to account for all financial resources, 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 of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The Special Revenue Fund includes federal revenues and related expenditures, restricted for specific educational programs or projects, including the District’s food services operations. The Special Revenue Fund also includes transfers from the general fund to supplement 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 or construction of capital facilities and other capital assets. The Capital Projects Fund excludes those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments.

Debt Service Fund - The Debt Service Fund is used to account for and report financial resources that are 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), which is an Other Comprehensive Basis of Accounting (OCBOA). This basis of accounting is prescribed by Ark. 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 presented separately and all other funds included in the audit presented in the aggregate. The law also stipulates that the financial statements consist of a balance sheet; a statement of revenues, expenditures, and changes in fund balances; a comparison of the final adopted budget to the actual expenditures for the general fund and special revenue funds of the entity; notes to financial statements; and a supplemental schedule of capital assets, including land, buildings, and equipment. The law further stipulates that the State Board of Education shall promulgate the rules necessary to administer the regulatory basis of presentation.



JUNE 30, 2012

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, GAAP requires the following major concepts: Management’s Discussion and Analysis, accrual basis of accounting 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 the financial statements, specific procedures for the identification of major governmental funds and applicable 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 and accounting entity with a self-balancing set of accounts, which are segregated for purposes of recording specific activities or attaining certain objectives. Revenues are reported by major sources and expenditures are reported by major function. Other transactions, which are not reported as revenues or expenditures, are reported as other financing sources and uses. Transactions related to the recording of installment 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, except for property taxes (see below).

Capital assets

Information on capital assets and related depreciation is reported in the accompanying Schedule of Capital Assets. Capital assets are capitalized at historical cost or estimated historical cost, if actual data is not available. Capital assets purchased are recorded as expenditures in the applicable fund at the time of purchase. Donated capital assets are reported at fair value when received. The District maintains a threshold 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 than land and construction in progress, are depreciated using the straight-line method over the following useful 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 and May 31 and are an enforceable lien on January 1 for real property and June 1 for personal property. The tax records are opened on the first business day of March of the year following the levy date and are considered delinquent after October 15 of the same calendar year.



JUNE 30, 2012


Property taxes (continued)

Prior to the year ending June 30, 2012, property taxes were accrued or deferred, as applicable, in accordance with guidelines issued by the Arkansas Department of Education (ADE), which were effective beginning with the fiscal year ended June 30, 2006. Arkansas Code § 6-20-401 defined revenue receipts of a school district and included forty percent (40%) of the proceeds of local taxes which are not pledged to secure bonded indebtedness or forty percent (40%) of the revenue from the uniform rate of tax whichever is greater collected in the succeeding calendar year, commonly known as 40% pullback, within that definition. The ADE determined that school districts must utilize the 40% pullback amount, as calculated by the ADE and reflected on the respective county’s abstract of assessments, in recording property tax revenue as follows:

If the amount of 40% pullback collected by June 30th was less than the calculated 40% pullback amount, the difference was accrued;

If the amount of 40% pullback collected by June 30th was more than the calculated 40% pullback amount, the excess was recorded as deferred taxes.

In March 2011, the General Assembly of the State of Arkansas passed Act 871 to amend Arkansas Code § 6-20-401 to clarify the definition of "revenue receipts of a school district". Act 871 is effective for years ending June 30, 2012 and thereafter. The Act eliminates the District’s requirement to defer property tax collections that exceed the 40% pullback (as defined above). Accordingly, the District recognized approximately $5.1 million in revenue on July 1, 2011 that was deferred at June 30, 2011 related to the 40% pullback requirements, but did not defer any property tax collections during the year ending June 30, 2012 under the new law.

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 provides the 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 and distributed by the State to the county treasurer of each county for distribution to the school districts in that county. For reporting purposes, URT revenues are considered property taxes.

Fund balance classifications

The Governmental Accounting Standards Board (GASB) released Statement 54 - "Fund Balance Reporting and Governmental Fund Type Definitions" (GASB 54) on March 11, 2009 which was effective for the District's fiscal year ending June 30, 2011. This Statement is intended to improve the usefulness of the amounts reported in fund balance by providing more structured 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 at year end.

2. Restricted Fund Balance includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally, or through enabling legislation. The Restricted for State Programs and Restricted for Federal Programs balances reflect amounts restricted for specific state and federal programs as mandated by respective state and federal grant or funding agreements.



JUNE 30, 2012


Fund balance classifications (continued)

3. Committed Fund Balance - includes amounts that can be used only for the specific purposes determined by a formal action of the District's highest level of decision-making authority (the Board of Education) and does not lapse 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. The District has capital projects assigned at year end for construction or other capital outlay projects. The District has scholarship funds assigned for scholarship programs.

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

For the purposes of fund balance classification, the District’s policy is to have expenditures spent from restricted 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 a fiscal year basis. The District does not prepare and submit amended budgets during the fiscal year. The State 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 transfers at 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 at the 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 the information utilized in preparing the budget and the applicable fund financial statements is essentially the same.

Note 2: Cash deposits with financial institutions

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

Carrying Bankamount balance

Insured (FDIC) $ 265,058 $ 250,000Collateralized - held by pledging bank or pledging

bank’s trust department in the District’s name 44,885,876 52,998,667

Total deposits $ 45,150,934 $ 53,248,667

The total deposits reflected above include certificates of deposits of $15,058 reported as investments.



JUNE 30, 2012

Note 3: Accounts receivable

The account receivable balance of $5,335,950 is comprised of the following at June 30, 2012:

Special CapitalClass of General revenue projects

receivable fund fund fund Total

Local taxes $ 253,346 $ - $ - $ 253,346Due from other

governments 1,570,523 2,572,110 939,971 5,082,604

Total $ 1,823,869 $ 2,572,110 $ 939,971 $ 5,335,950

Note 4: Commitments

Construction commitments

The District was contractually obligated for seven construction contracts related to construction and renovation projects within the District, with remaining contract balances of approximately $21 million at June 30, 2012.

Long-term debt issued and outstanding

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

Amount Debt MaturitiesDate of Date of final Rate of authorized outstanding to

issue maturity interest and issued June 30, 2012 June 30, 2012

Bonds payable:12/1/2009 6/1/2027 3.0 - 4.20% $ 3,000,000 $ 2,725,000 $ 275,0004/1/2011 6/1/2027 4.40% 12,275,000 11,185,000 1,090,0006/1/2011 6/1/2041 4.46% 135,650,000 133,075,000 2,575,0009/27/2011 9/27/2021 4.48% 1,115,456 1,115,456 -

Totals $ 152,040,456 $ 148,100,456 $ 3,940,000

Changes in long-term debt:Balance Balance

Description July 1, 2011 Issued Retired June 30, 2012

Bonds payable $ 150,285,000 $ 1,115,456 $ 3,300,000 $ 148,100,456



JUNE 30, 2012

Note 4: 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

2013 $ 3,120,000 $ 6,282,212 $ 9,402,2122014 2,950,000 6,175,212 9,125,2122015 3,260,000 6,073,334 9,333,3342016 3,590,000 5,956,524 9,546,5242017 3,770,000 5,823,763 9,593,763

2018 - 2022 21,720,456 27,126,545 48,847,0012023 - 2027 24,745,000 22,754,043 47,499,0432028 - 2032 23,980,000 17,636,842 41,616,8422033 - 2037 30,455,000 11,269,442 41,724,4422038 - 2041 30,510,000 2,285,277 32,795,277

Totals $ 148,100,456 $ 111,383,194 $ 259,483,650

Operating leases

The District leases office facilities under cancelable operating leases with terms up to 3 years which will be charged to expense over the lease term as it becomes payable.

At June 30, 2012, the minimum rental commitments under these cancelable operating leases are as follows:

2013 $ 90,3252014 90,3252015 98,790

$ 279,440

Note 5: Accounts payable

The accounts payable balance of $4,968,788 at June 30, 2012 is as follows:

General Special Capitalfund revenue fund projects fund Total

Accounts payable $ 333,845 $ 13,962 $ 4,620,981 $ 4,968,788



JUNE 30, 2012

Note 6: Interfund transfers

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

General Capital Debtfund project fund service fund Total

Transfers in $ 199,147,608 $ 32,137,078 $ 8,216,000 $ 239,500,686Transfers out (219,363,668) (20,137,018) - (239,500,686)

$ (20,216,060) $ 12,000,060 $ 8,216,000 $ -

Note 7: 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 school employees, except certain nonteachers hired prior to July 1, 1989. ATRS 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 the Arkansas General Assembly. The Arkansas Teacher Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for ATRS. That report may be obtained by writing to Arkansas Teacher Retirement System, 1400 West Third Street, Little Rock, Arkansas 72201 or by calling 1-800-666-2877.

Funding policy: ATRS has contributory and non-contributory plans. Contributory members are required by law to contribute 6% of their salary. Each participating employer is required by law to contribute 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, 2012, 2011, and 2010 were $14,242,916, $13,531,293, and $12,895,296 respectively. The District’s contributions to ATRS for federally-funded employees for the years ended June 30, 2012, 2011, and 2010 were $746,021, $1,139,511, and $869,343, respectively, equal to the required contributions for each year.

Arkansas Public Employees Retirement System

Plan description: The District contributes to the Arkansas Public Employees Retirement System (PERS), a cost-sharing multiple-employer defined benefit pension plan that covers certain nonteaching Arkansas public school employees hired before July 1, 1989. PERS 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 the Arkansas General Assembly. The Arkansas Public Employees Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for PERS. 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.

13 SPRINGDALE SCHOOL DISTRICT NO. 50


JUNE 30, 2012

Note 7: Retirement plans (continued) Arkansas Public Employees Retirement System (continued) Funding policy: PERS has contributory and non-contributory plans. Contributory members are required by law to contribute 5% of their salary. Each participating employer is required by law to contribute at a rate established by the Arkansas General Assembly. The current statutory employer rate is 4% of annual covered payroll. The District’s contributions to PERS for the years ended June 30, 2012, 2011 and 2010 was $5,710, $6,754 and $6,898, respectively, equal to the required contributions for each year. Note 8: Risk management The District is exposed to various risk 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. Settled claims have not exceeded this commercial coverage in any of the three preceding years. The District is a member of the Arkansas School Board Association self-insurance program, a public entity 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 for the 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 its Workmen’s Compensation Coverage. The Pool’s governing agreement specifies that the Pool will be self-sustaining through member premiums and will reissue through commercial carriers for claims in excess of specified stop loss amounts. Note 9: Litigation and contingencies The District participates in federally assisted grant programs. The District is potentially liable for expenditures which may be disallowed pursuant to the terms of these grant programs. Management is not aware of any material items of noncompliance which would result in the disallowance of program expenditures. Note 10: On behalf payments During the year ended June 30, 2012, health insurance premiums of $1,337,303 were paid by the Arkansas Department of Education to the Arkansas Employee Benefits Division on behalf of District employees. Note 11: Subsequent events The District issued $37,025,000 in refunding and construction bonds on September 1, 2012 with interest rates of 2.00% to 3.70% and a final maturity on June 1, 2041. The bond proceeds will be used to refund $13,910,000 plus interest and fees of outstanding bonds dated December 1, 2009 and April 1, 2010 with interest rates ranging from 2.00% to 4.20% and 4.40%, respectively. The remainder of the proceeds will be used for building and equipping a new middle school and junior high school, with remaining funds to be used for constructing, refurbishing, remodeling and equipping school facilities.

OTHER REPORTS AND SUPPLEMENTARY INFORMATION

14

Nondepreciable capital assets:Land 20,610,496$ Construction in progress 32,094,610

Total nondepreciable capital assets 52,705,106

Depreciable capital assets:Site improvements 5,203,918 Buildings 220,024,314 Machinery & equipment 24,352,588

Total depreciable capital assets 249,580,820

Less accumulated depreciation for:Site improvements 893,569 Buildings 45,920,780 Machinery & equipment 15,187,847

Total accumulated depreciation 62,002,196

Total depreciable capital assets, net 187,578,624

Capital assets, net 240,283,730$


SCHEDULE OF CAPITAL ASSETS


(Unaudited)

19

FederalCFDA Federal

number expenditures

SPECIAL EDUCATION CLUSTERU.S. Department of EducationPassed through Arkansas Department of Education:

Title VI - Part B - Special Education Grants to States 84.027 3,624,906$ Title VI - Part B - Special Education Grants to States - ARRA 84.391 186,299

Total Special Education Cluster 3,811,205

TITLE I - CLUSTERU.S. Department of EducationPassed through Arkansas Department of Education:

Title I, Part A - Grants to Local Education Agencies 84.010 3,845,875 Title I, Regular 1003 (A) - School Improvement Grants 84.010 101,186 Title I, Part D - Neglected and Delinquent Children 84.010 70,601 Title I, Part A - Grants to Local Education Agencies - ARRA 84.389 363,673

Total Title I - Cluster 4,381,335

CHILD NUTRITION CLUSTERU.S. Department of AgriculturePassed through Arkansas Department of Education:

School Breakfast Program - Cash Assistance 10.553 1,597,478 National School Lunch Program - Cash Assistance 10.555 5,903,297

Total Arkansas Department of Education 7,500,775

Passed through Arkansas Department of Human Services:National School Lunch Program - Non-Cash Assistance 10.555 569,475

Total Child Nutrition Cluster 8,070,250

OTHER PROGRAMS:

U.S. Department of AgriculturePassed through Arkansas Department of Education

Child and Adult Care Food Program 10.558 15,639

Passed through Arkansas Department of Human ServicesChild and Adult Care Food Program 10.558 66,197

Total U.S. Department of Agriculture 81,836


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Federal grant/pass-throughgrantor/program title

20

Federal

CFDA Federalnumber expenditures

U.S. Department of EducationPassed through Arkansas Department of Education:

Title I, Migrant Education 84.011 227,313 Title IV-A, Safe and Drug-Free Schools Grant 84.186 2,153 Title IV-B, 21st Century Community Learning Centers 84.287 318,651 Title III, English Language Acquisition 84.365 824,116 Title II, Part A - Improving Teacher Quality 84.367 443,071 Title II -Part D - Education Tech. Competitive Grants - ARRA 84.386 8,853 State Fiscal Stabilization Funds - ARRA 84.394 1,351,710 Education Jobs Funds - ARRA 84.410 122,923

Total Arkansas Department of Education 3,298,790

Passed through Arkansas Department of Career Education:Vocational Education - Basic Grants 84.048 244,295

Total U.S. Department of Education 3,543,085

Total Other Programs 3,624,921

Total Expenditures of Federal Awards 19,887,711$

Notes to schedule:

1.

2.

3.


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.

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

such reimbursements totaling $258,361 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.

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)


Federal grant/pass-throughgrantor/program title

21

Arkansas Department of Education

State Foundation Funding 79,412,393$ Student Growth Funding 3,528,161 General Facilities Funding 10,414,470 Bonded Debt Assistance 978,468 Professional Development Funding 793,219 LEP Allocation 2,469,441 Food Service State Matching 71,083 Youth Shelters 14,143 Special Education - Catastrophic Occurrences 341,212 Alternative Learning 1,474,086 National School Lunch Student Funding 6,309,570 Arkansas Better Chance Program 2,623,914 National Board Professional Teaching Standards 882 Exceptional Child Grant 3,000 GT Advanced Placement 28,931 Pathwise Mentor Training 13,200 College Prep Enrichment Program 38,742 Tobacco Excise Grant 71,800 National Board of Professional Teaching Standards 9,600 Wellness Center 50,951 Extended School Year Funding 112,167 Child Supervision Extended School Year Funding 81,476 PQE Mentoring 108,260 Residential Treatment 1,754,934

110,704,103 Arkansas Department of Workforce Education

Workforce New Program Start-Up 155,477

Arkansas Department of Career EducationVocational Special Needs Project 10,465 SVAC Funding 48,479

58,944

Arkansas Department of HealthCoordinated School Health 46,781

Arkansas Department of Human ServicesSchool Food Service 35,972 Early Childhood Programs 8,500 Other Grants and State Aid 100

44,572

Arkansas Tobacco SettlementChild Wellness Intervention Program 40,588

Total State Assistance 111,050,465$

SCHEDULE OF STATE ASSISTANCE




SCHEDULE OF FINDINGS AND QUESTIONED COSTS


A. SUMMARY OF AUDITORS’ RESULTS

1. Our report expresses an adverse opinion based on generally accepted accounting principles and an unqualified opinion based on regulatory basis of accounting on the basic financial statements 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 requirements applicable 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 requirements applicable to major federal awards was:

Unqualified Qualified Adverse Disclaimed

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

Yes No

7. The Auditee’s major programs were:

Cluster/Program CFDA Number(s) Title I Cluster 84.010 and 84.389 State Fiscal Stabilization Funds - ARRA 84.394 Education Jobs Fund - ARRA 84.410 Title III, English Language Acquisition 84.365

8. The threshold used to distinguish between Type A & Type B programs as those terms are defined in OMB Circular A-133 was $596,631.


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


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


DESCRIPTION STATUTES

Management Letter for Audit 14-75-101 – 14-75-104Ethical Guidelines and Prohibitions for

Board Members, Administrators, and Employees 6-13-628; 6-24-101 et seq.

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

Management of Schools Board of Directors

District Treasurer Warrants

6-13-604; 6-13-606; 6-13-608; 6-13-611 – 6-13-613; 6-13-617 – 6-13-620; 6-24-101 et seq.6-13-7016-17-918; 6-17-919; 6-20-403

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

School District Finance Petty Cash Changes in Pullback (declining

accrual percentages) Bidding & Purchasing

Commodities

6-20-4026-20-409

6-20-401

6-21-301 – 6-21-305

District Bonded & Non-bonded Debt, School Bonds 6-20-1201 – 6-20-1208; 6-20-1210Teachers and Employees Personnel Policies Employment and Assignment Teacher's License Requirement Contracts Certification Requirements Fair Dismissal Act Sick Leave Policies Salary Laws - Classified

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.6-17-2201 et seq.; 6-17-2301 et seq.

Teacher Salaries, the Minimum Foundation Program Aid Act

6-17-803; 6-17-907; 6-17-908; 6-17-911 – 6-17-913; 6-17-918; 6-17-919

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

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

Use of Contractors, Improvement Contracts 22-9-201 – 22-9-205Nonrecurring Salary Payments 8-20-412

Trust Funds (Education Excellence) 6-5-307

Use of DM&O Millage 26-80-110

On Behalf Payments The amount of funds paid by the Arkansas Department of Education to the Employee Benefits Division, on-behalf of District’s employees


SUPPLEMENTAL DATA SHEET


The following information is being provided to satisfy the requirements of Arkansas Department of Health 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, Superintendent

6. Name of Contact Person: Kelly Hayes, Comptroller

Documents

SPRINGDALE SCHOOL DISTRICT NO. 50 …springdale.sharpschool.net/UserFiles/Servers/Server_2942959/File... · WASHINGTON COUNTY, ARKANSAS REGULATORY BASISFINANCIAL STATEMENTS ... -regulatory