DeSoto ISD 2019-20 Financial Audit Report

DeSoto ISD 2019-20 Financial Audit Report
Posted on 01/21/2021
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During the January 19 DeSoto ISD Board of Trustees meeting, the district’s new external auditors presented their report on the prior fiscal year which included an unmodified opinion indicating the auditors were able to successfully conclude that the financial statements are free from material misstatement:

” In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the District as of June 30, 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.”

Financial Highlights

  • The District's total net position at June 30, 2020 was ($82,377,593) (negative net position). Of this amount, ($121,490,392), represents a negative unrestricted net position.

  •  The District's total net position decreased by $3,790,100 during the fiscal year.

  •  As of June 30, 2020, the District's governmental funds reported combined ending fund balances of $26,666,095. Approximately 41% of this total amount, $10,852,782, is unassigned and available for use within the District's fund balance policies.

  • At the end of the current fiscal period, unassigned fund balance for the general fund was $10,852,782 or 12% of the total general fund expenditures.

The audit team from Whitley Penn complimented the professionalism of the district’s management staff, reporting no concerns working with the DeSoto ISD team to efficiently complete the audit assignment.    Certain compliance deficiencies were noted, including one considered to be a material weakness; however, management had already begun corrective actions on many of the identified concerns.   The Whitley team dialogue with Trustees over some of the specific issues provided insights and assurances on the path forward. 

This draft report is available for review on the district website, and the signed final report will be included in the approved minutes for this meeting as well as on the DeSoto ISD finance page.