Simpson & Simpson Los Angeles Unified School District · Los Angeles Unified School District Comprehensive Annual Financial Report Presentation to the Audit, Business, and Technology

Los Angeles Unified School District

Comprehensive Annual Financial Report

Presentation to the Audit, Business,and Technology Committee

January 15, 2004

Simpson & Simpson

Page 1 | L O S A N G E L E S U N I F I E D S C H O O L D I S T R I C T

Simpson & Simpson

Table of Contents

Page

� Audit Highlights and Results 2

� Required Auditor Communications 6

� Summary of Audit Findings 7

This document is protected under the copyright laws of the United States and other countries as an unpublished work. This document contains information that is proprietary and confidential to KPMG LLP or its technical alliance partners, which shall not be disclosed outside or duplicated, used or disclosed in whole or in part for any purpose other than to evaluate KPMG LLP. Any use or disclosure in whole or in part of this information without the express written permission of KPMG LLP is prohibited.

© 2003 KPMG LLP, the U.S. member firm of KPMG International. All rights reserved.


Simpson & Simpson

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


Simpson & Simpson

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)


Simpson & Simpson

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)


Simpson & Simpson

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)


Simpson & Simpson

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


Simpson & Simpson

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

Simpson & Simpson Los Angeles Unified School District · Los Angeles Unified School District Comprehensive Annual Financial Report Presentation to the Audit, Business, and Technology

Documents