Los Angeles Unified School District
Comprehensive Annual Financial Report
Presentation to the Audit, Business,and Technology Committee
January 15, 2004
Simpson & Simpson
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Simpson & Simpson
Table of Contents
Page
� Audit Highlights and Results 2
� Required Auditor Communications 6
� Summary of Audit Findings 7
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Audit Highlights and Results
� Unqualified Opinion with respect to the governmental activities, and each major fund, as well as the aggregate “nonmajor” governmental funds and the District’s nonexpendable trust fund type.
� Assets exceeded liabilities by $3.9 billion; however, only $304 million was categorized as “unrestricted”
� Total net assets decreased by $66.1 million – primarily due to increased health and welfare benefits.
� Unqualified Opinion in the basic financial statements; but “Qualified” with respect to the District’s internal service fund type and the aggregate remaining fund information
— Actuarial Deficiency
� No conditions that we believe to be material weaknesses
� Certain instances of non-compliance with program requirements
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Government-Wide Financial Statements (Statement of Net Assets)
3,870,777
304,092
729,405
202,893
2,634,387
7,643,853
5,509,814
2,134,039
11,514,630
4,704,053
6,810,577
$Total Net Assets
Unrestricted
Restricted for Program Activities
Restricted for Debt Service
$Invested in Capital Assets net of related debt
Net Assets:
$Total Liabilities
Long-term Liabilities
$Current Liabilities
$Total Assets
Capital Assets
$Current Assets
Governmental Activities
Los Angeles Unified School DistrictSummary Schedule of Net Assets at June 30, 2003 (In Thousands)
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Government-Wide Financial Statements (Changes in Net Assets)
6,876,946$Total Revenues
4,047,485$Total General Revenues
1,098,628112,310
2,196,960514,66728,37896,542
$Property Taxes levied for general purposesProperty Taxes levied for debt serviceState AidGrants, entitlements and contributions not restricted to specific programsUnrestricted Investment EarningsMiscellaneous
General Revenues
2,829,461$Total Program Revenues
83,9552,492,967
252,539
$Charges for ServicesOperating Grants and ContributionsCapital Grants and Contributions
Program Revenues:
Revenue:
Los Angeles Unified School DistrictSummary Schedule of Changes in Net Assets at June 30, 2003 (In Thousands)
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Government-Wide Financial Statements (Changes in Net Assets) – cont.
3,870,777$Net Assets – June 30, 2003
3,936,875Net Assets – July 1, 2002
(66,098)Change in Net Assets
6,943,044Total Expenses
303,961725,68450,147
408,278178,623598,680165,658229,931270,570191,848
46092,25053,054
Support services – StudentsSupport services – Instructional StaffSupport services – General AdministrationSupport services – School AdministrationSupport services – BusinessOperation and maintenance of plant servicesStudent transportation servicesData processing servicesOperation of non-instructional servicesFacilities acquisition and construction servicesOther usesinterest on long-term debtDepreciation – unallocated
Support Services:
3,673,900$Instruction
Expenses:
Los Angeles Unified School DistrictSummary Schedule of Changes in Net Assets at June 30, 2003 (In Thousands)
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Required Auditor Communications
� Our Responsibilities Under Generally Accepted Auditing Standards
� Significant Accounting Policies
� Significant or Unusual Transactions
� Estimates Used by Management
� No Significant Audit Adjustments Proposed
� To the Best of Our Knowledge Management Has Not Consulted with Other Accountants About Audit and Accounting Matters
� No Major Issues Were Discussed with Management in Connection with Our Retention as Auditors
� No Disagreements with Management
� No Difficulties Encountered Working with Management
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Summary of Audit Findings
Program Compliance Comments
� Federal Compliance (Single Audit)
Three (3) comments in the areas of:
-- Compliance and Internal Controls over Federal Expenditures
-- Compliance and Internal Controls over Reporting Requirements
-- Internal Control over Payroll Processing
� State Compliance
Two (2) comments in the areas of:
-- Compliance with State Attendance requirements
-- Compliance with Kindergarten Continuation requirements
Letter to Management
� Three (3) comments in the areas of:
-- Preparation and Review of the Schedule of Federal Awards
-- IFS Application Security
-- Payroll