Lincoln-Way Annual Financial Audit and IRS AuditThursday, October 18, 2018
Lincoln-Way District 210 finances are continuing to improve as shown through the results of the District’s fiscal year 2018 annual financial statement audit. The following are two fiscal year 2018 financial highlights:
- The District achieved an all funds surplus of $7,667,917. This is the second consecutive year the District has reported a surplus.
- In fiscal year 2016, the District had 16 recommendations for improvement cited in the Management Letter from the external auditors. Administration has worked diligently to resolve these comments over the course of the past two fiscal years. As a result, the fiscal year 2018 Management Letter from the auditors contains two remaining comments from the original 16. Additionally, no new recommendations for improvement were identified. The two remaining comments are as follows: developing a comprehensive policies and procedures manual documenting all the District’s administrative and accounting functions; and establishing written policies and procedures for the maintenance of a capital assets inventory.
The audit included evaluating the current value of Lincoln-Way North since it is no longer in operation as a school building. In accordance with Governmental Accounting Standards, the building has been revalued from its original cost of $114,005,615 to $15,860,000 (not including the value of the land of $4,140,000). This adjustment has no impact on the District’s cash balances nor on the District’s fund balances. The District is continuing to look at options regarding the use of the building and will remain current with all payments related to our debt obligation on the building.
Additionally, in December 2017, the District received notification that the IRS would perform an examination of the Lincoln-Way District 210 Calendar Years 2015 and 2016 payroll and accounts payable records. Their findings showed:
- The District owes back taxes on individuals and staff members that were paid through accounts payable instead of as employees through payroll totaling $56,396.
- The District owes civil penalties for failing to file certain 1099s totaling $30,160.
“The District has made tremendous strides in our financial recovery by achieving a surplus for the second year in a row,” said Dr. Scott Tingley, Superintendent. “We have made corrective actions in our Business Department to continue to ensure proper accounting and fiscal responsibility moving forward.”
Because of the improvement in the District’s financial condition, it is currently estimated that in 2019 the District will be moved off of the Illinois State Board of Education Watch list to a designation of Warning.