Royal Oak Schools Financial Audit Receives Highest Level of Confidence

David Youngstrom, Principal, and Kristi Kraft-Belsky, Senior Manager, Yeo and Yeo CPAs and Business Consultants, addressed the Royal Oak Schools Board of Education meeting and the community. Auditors from Yeo and Yeo gave the District’s annual audit an unmodified opinion, the highest level of confidence received for such reports.

The District had $10,037,295 of unassigned general fund balance as of June 30, 2013.  The fund balance equates to 19% of operating expenditures and is within the Michigan School Business Officials (MSBO) recommended 15-20%. This represents approximately 69 days of operating expenses which is critically important when dealing with unpredictable variables in budget planning.

In his comments, Youngstrom commended Rick West, Executive Director of Finance and Operations, and the District’s business services team for getting the audit completed early. For this fall, Royal Oak is our first school district audit,” said Youngstrom. He cautioned the Board “there is much uncertainty still clouding the financial picture for school districts,” pointing to uncertain enrollment numbers due to declines in birth rates and the state’s uncertain economic and political conditions.

Youngstrom praised the Board and the community for passing the building site and sinking fund millage. “This provides a ‘wonderful tool’ for maintaining the community’s investment in facilities,” he said. In conclusion, Youngstrom emphasized the critical need for renewal of the District’s operating millage. “What is on the ballot on November 5 is not a new tax. It is not a tax increase. It is a renewal of the millage that has been in place since 1995. This millage provides over one-third of the District’s operating revenue. Approval of it is critical to operations.”

Source: Royal Oak Schools