1. Independent School District No
Independent School District No. 318 Audit Presentation Year Ended June 30, 2017 Wipfli LLP

2. Audit Team Your audit team consisted of the following professionals: Deborah Medlin – Partner – 32 years Jennifer Smith – Senior Manager – 16 years Tim Bradshaw – Senior – 4 years Dave Mathewson – Staff – 3 years Zak Sharp – Staff – 1 year

3. Auditor Responsibility
Issue an opinion on the basic financial statements
Report on compliance and internal controls over financial reporting
Report on compliance and internal controls over federal programs – Uniform Guidance
Report on compliance with Minnesota statutes tested

4. Auditor Results Unmodified opinion on the basic financial statements
Internal control over financial reporting
Material weakness for material audit adjustments
Material weakness for bank reconciliations not being performed timely
No significant deficiencies or material weaknesses over compliance or internal controls over federal programs
Minnesota statutes legal compliance finding
None

5. Required Communications
Auditor responsibility
Audit conducted under General Accepted Auditing Standards, Government Auditing Standards, and Uniform Guidance
Planned Scope and Timing of the Audit
Communicated during preliminary and field work
Significant accounting policies
Outlined in Note 1 of the financial statements
Unusual transactions – none
New standards – implementation of GASB No. 82 – implementation affected disclosures but did not affect valuation of pensions

6. Required Communications - Continued
Management Judgments and Accounting Estimates
Reasonably supported
Useful lives of capital assets
OPEB liability
Net pension liability
Corrected and Uncorrected Misstatements
Audit adjustments – Material audit adjustments
Uncorrected adjustments – None

7. Required Communications - Continued
Disclosures are adequate, clear and complete
Other information in documents containing audited financial statements
Supplementary information – in-relation to opinion
Disagreements with Management
None
Consultations with Other Accountants

8. Required Communications - Continued
Major Issues Discussed with Management Prior to Retention
No issues other than normal planning issues
Difficulties Encountered in Performing the Audit
Management was cooperative and helpful
Records available and in good condition

9. Student Enrollment

10. Student Enrollment

11. General Fund Expenditures per ADM (excluding capital expenditures)

12. General Fund Expenditures

13. General Fund Results of Operation
Revenues and other financing sources were more than anticipated due to:
Higher than anticipated taconite revenues
Expenditures and other financing uses were more than anticipated due to:
A $729,415 transfer to the Building Construction Fund

14. General Fund – Fund Balances

15. General Fund Unrestricted Fund Balance as a % of Expenditures One month of expenditures – 8% Two months of expenditures – 17% Three months of expenditures – 25% Four months of expenditures – 33%

16. Food Service Results of Operation and Fund Balances

17. Community Service Results of Operation and Fund Balances

18. Debt Service Fund Results of Operation and Fund Balance

19. OPEB Debt Service Fund Results of Operation and Fund Balance

20. Building Construction Fund Results of Operation and Fund Balance

21. Contact Information
Deborah Medlin Jennifer Smith
Partner Senior Manager

22. Thank you for your time