Chelsea Schools Receive Positive Audit Report for Fiscal Year 2012

CHELSEA — The Chelsea School District Board of Education received its fiscal year 2012 financial audit after earning an unqualified opinion, the highest opinion possible, from independent auditor Rehmann Robson of Jackson on Monday.

"The school district did a very good job of budgeting last year, which is not easy given all of the unknowns of state funding," auditor Tracey Kasparek said.

Kasparek said the district ended the fiscal year on June 30, 2012 with a a $5.2 million fund balance.

According to the firm, the district's unqualified opinion was based on several factors, including:

• The assets of the district exceeded its liabilities at the close of the fiscal year by $24,323,009 (net assets). Of this amount, $5,099,677 (unrestricted net assets) may be used to meet the government’s ongoing obligations for district programs.
• The district’s total net assets increased by $136,851.
• As of the close of the 2012 fiscal year, the district’s governmental funds reported combined ending fund balances of $15.1 million, an increase of $3.1 million during the year. Approximately 34 percent, or $5.2 million is available for spending at the government’s discretion (unassigned fund balance).
• Investments for the future were made during the 2012 fiscal year by recognizing expenditures of approximately $2.5 million on school improvements, vehicles and equipment. Through the 2004, 2009 and 2012 bond issues, debt proceeds were used to finance capital projects.

Board Trustee Jeff Crowder said the results of the report reflect positively on the district's business office.

"After having an outside source review our finances and return with the highest rating, I have greater confidence in what we're doing here," he said.

A copy of the financial audit is available to download online at www.chelsea.k12.mi.us under the "Business and Finance" tab.