As part of the current FY 19 audit process, the district's auditors are recommending that the school board approve two fund transfers for  the 2018-2019 year. One is from Fund 01 (General) to Fund 02 (Food Service). The second is from Fund 01 to Fund 04 (Community Ed).

 

The fund transfer to Food Service is a result of an MDE Food Service audit conducted in April 2019 related to FY 18.  The internal review determined that the chargeback amount to Fund 02 for operational services exceeded the verifiable threshold.  To reconcile this, the District will transfer the overage chargeback amount from Fund 01 to Fund 02 for these FY 18 costs. The district has worked closely with MDE and has defined a plan and methodology that will be used in FY 19 and beyond.  Having these adjustments occur over two fiscal year cycles is what requires the board approved fund transfer.  

 

The fund transfer to Community Education (Fund 04) is due to the actual expenses of providing preschool screening services exceeding the state aid for this activity.  When this occurs, it is recommended that the general fund account for the difference.

The administration recommends approval of these two interfund transfers.  These transactions will be reflected in the FY 19 financial statements