Comprehensive Annual Financial Report 2012 - Kettering City ...

KETTERING CITY SCHOOL DISTRICT
Letter of Transmittal
For the Fiscal Year Ended June 30, 2012
Preparing our students, parents and staff for full implementation of the CCSS is a team effort that requires
collaboration and focused work. It is not akin to a GPS where you just plug in your destination and 2
hours later you are there without being sure how it happened or even what direction you went. We need
everyone’s active engagement in the process. Any professional development that is worthwhile takes a
conscious effort from the District, Building and the Professional – if you eliminate support or effort from
any one of these, the PD will not be effective.
Many districts have struggled in the early stages of this transition. In fact, several have just begun to
unwrap the CCSS and plan for the transition. We began this process about 1½ years ago as part of RTI
and we have gotten out front with a plan that has included extensive PD in understanding the CCSS,
Differentiation of Instruction, Math and LA Frameworks, Instructional Materials’ Adoptions, and
Singapore Math. We will continue to take advantage of the expertise of our teachers to support our next
few years as we transition to the CCSS in Math and Language Arts in order to be completely prepared for
the NGA and whatever is next.
FINANCIAL INFORMATION
INTERNAL CONTROLS – The Treasurer/CFO of the District is responsible for establishing internal
controls designed to ensure that the assets of the District are protected from loss, theft, or misuse, and to
ensure that adequate accounting data is compiled to allow for the preparation of financial statements in
conformity with generally accepted accounting principles. The Management Team is responsible for
assisting with implementation of the established internal controls. Internal controls are designed to
provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable
assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and
(2) the valuation of cost and benefit requires estimates and judgments by management. Management
believes the internal controls adequately meet the above objective.
BUDGETARY CONTROLS – The budgetary process is prescribed by provisions of the Ohio Revised
Code and entails the preparation of budgetary documents within an established timetable. The major
documents prepared are the certificate of estimated resources and the appropriations resolution, all of
which are prepared on the budgetary basis of accounting. The certificate of estimated resources and the
appropriations resolution are subject to amendment throughout the year with the legal restriction that
appropriations cannot exceed estimated resources, as certified. All funds, other than agency funds, are
legally required to be budgeted and appropriated. The primary level of budgetary control required by
Ohio Revised Code is at the fund level. The level of budgetary control imposed by the District (the level
at which expenditures cannot legally exceed the appropriated amount) is established at the broad object
level (first level) for the general fund and at the fund level for all other funds. Any budgetary
modifications at these levels may only be made by resolution of the Board of Education. The District also
maintains an encumbrance accounting system as one technique of accomplishing budgetary control.
Encumbered amounts at year-end are carried forward to succeeding years and are not re-appropriated.
INDEPENDENT AUDIT - The State of Ohio requires an annual audit by either the Auditor of State or by
an independent public accounting firm. The State Auditor performed the audit for the fiscal year ended
June 30, 2012. The auditor’s report on the District’s basic financial statements, combining and individual
fund statements and schedules, is included in the financial section of this Comprehensive Annual
Financial Report.
DRAFT - x - 12/18/2012