EDMONTON — Metcalfe County school officials received some good news Monday night from the school district’s auditor.

The school district received an unqualified opinion on its 2008-09 audit, which is the best opinion an auditor can give.

Jeff Sprowles with Wise, Buckner and Sprowles and Associates, PLLC, certified public accounts from Campbellsville, met with the Metcalfe County Board of Education Monday night prior to the school boards’ regular monthly meeting to review the audit.

“We found no material misstatements or anything as far as the financial statement,” he said. “The district had a pretty solid year. All funds had increases in fund balances for the year; no deficit balances.”

The district had a total net assets of more than $7.5 million for the 2008-09 fiscal year, which is an increase of more than $1.7 million compared to the 2007-08 fiscal year.

In reviewing the district’s expenses, he pointed out that the bulk of the district’s expenses was in instruction. The district had $15.6 million in expenses, and $8.6 million went for instruction.

“I looked back at last year’s audit and it is pretty comparable to last year’s expenses. Actually, percentage wise it went up right under 2 percent for the instruction only expenses for the district, so that’s a good thing,” Sprowles said.

As for current resources, the district had a total fund balance in its General Fund of $4.1 million, which he said was an increase of $1.1 million from the previous year. The district also had $380,000 in its Special Revenue Fund, which is the federal and state dollars the district receives, and $240,000 in its Capital Projects Fund, which is a combination of monies in the Building Fund, the Nickel Tax Fund and the Construction Fund, for a total in liabilities and assets of $4.9 million.

“So, again a very solid financial statement in the current resource side. We see an increase in all funds,” he said.

The district had more than $12.7 million in total revenues for the General Fund and more than $11.4 million in total expenditures for an ending fund balance for the General Fund of more than $4.1 million.

As for the Capital Projects Funds, the district took in $185,000 from the nickel tax and had some money come in from the state for a match.

“So we did see an increase of $149,954 for the year for the capital project fund,” Sprowles said.

The district had a total ending fund balance for all governmental funds of $4.4 million.

He commended the district on improvements made in the food service fund, which he said had been a problem in years past but, “I think it’s been figured out and its had a very good year both cash wise and the increase in the fund balance.”

“So cash is good,” he said. “The unrestricted amount of fund balance, $107,110, again a pretty sizeable increase from the previous year. So school food services has had a great turn around. I know it’s been worked on hard and the results are showing this year. I guess the district ought to be pretty pleased with that outcome there.”

Sprowles also reviewed with the school board how much debt the school district had retired. The audit shows the district retired $521,000 in debt, but Sprowles said the school district’s debt retirement was more than what was listed in the audit report. “The district actually paid off more than that because we had some KISTA payoffs. The total payoffs was $755,784,” he said. “So the district is paying off their debt at a faster pace than what’s required.”

Sprowles noted the school district attempted to pay off another KISTA loan, but the payment was sent back.

“There was a 30-day call notice and that amount sent back in August is on these financials sitting in accounts receivable and to my understanding the district is getting ready to pay that off, again. Maybe they will keep it this time,” he said.

Sprowles discovered one significant deficiency in reviewing the school district’s financial statements and that was regarding bank reconciliation at the end of the year. He reported he has spoken with the school district’s financial officers and thinks the issue has been worked out.

In the management letter to the school district, Sprowles made note of prior year issues and whether or not they had been corrected. One such issue regarded the use of fundraiser worksheets not being used. Sprowles told board members that all fundraiser worksheets had been found for all approved fundraisers at all schools.

The other issue involved booster clubs’ submission of annual financial reports to the central office by July 25 as required for booster clubs. He noted that financial reports for high school band, baseball and football are the only ones being reported to the central office and that the middle school boosters are not submitting reports timely.

“The booster club sponsors need to realize they need to get those financial statements in because that is part of the school’s monies and it’s just a safety net where we know the money collected is going,” he said, adding that overall he thought the school board should be pleased with the financial statement and the opinion letter.

Board chairman Steve Thompson said the school district has a large turnover in booster club sponsors.

“We seem to have a large turnover at the school level, not only parent level, when you’ve got parents organizing it they change from year to year, but even the sponsors at the school level are responsible for that and we have got to do a better job of that,” he said. “We have come so far and I’m proud of that.”

The board voted to approve the audit report during its regularly scheduled meeting later Monday night.