Page 15 - Hudson City Schools CAFR 2017

INTRODUCTION

The accounting system used by the District provides interim financial reports which detail year-to-date expenditures and
encumbrances versus the original appropriation plus any additional appropriations to date. In addition to interim financial
statements, each administrator and school principal is furnished monthly reports showing the status of the budget accounts for
which they are responsible. As an additional safeguard, all employees are covered by a blanket bond and certain individuals in
policy-making roles are covered by a separate, higher limit bond. The basis of accounting and the various funds utilized by the
District are fully described in Note 1 of the basic financial statements. Additional information on the District’s budgetary
accounting can also be found in Note 1.

As demonstrated by the statements and schedules included in the financial section of this report, the District continues to meet its
responsibility for sound financial management. As with the financial section, all amounts presented in the remainder of this letter
are expressed in rounded dollar amounts.

Independent Audit

State statutes require an annual audit by independent accountants. Charles E. Harris & Associates conducted the District’s 2017
fiscal year audit. In addition to meeting the requirements set forth in state statutes, the audit also was designed to meet the
requirements of the Federal Single Audit Act Amendments of 1996 and U.S. Office of Management and Budget Circular A-133
Audits of States, Local Governments and Non-Profit Organizations. The auditor’s report on the basic financial statements and
combining and individual fund statements and schedules is included in the financial section of this report.

Other Information

Awards:

GFOA Certificate of Achievement

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the Hudson City School District for its Comprehensive Annual Financial Report for the fiscal
year ended June 30, 2016. This was the eighteenth consecutive year that the District has achieved this prestigious award. In order
to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized
Comprehensive Annual Financial Report. This report must satisfy both generally accepted accounting principles and applicable
legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial
report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to
determine its eligibility for another certificate.

ASBO Certificate of Excellence

The District received the Association of School Business Officials (ASBO) International Certificate of Excellence in Financial
Reporting Award for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2016. This was the eighteenth
consecutive year that the District has achieved this prestigious award. The award represents a significant achievement by the
District and reflects the District’s commitment to the highest standards of school system financial reporting. The District is also
submitting this report to the Association of School Business Officials (ASBO) International for consideration of the Certificate of
Excellence in Financial Reporting award. This award will certify that the Comprehensive Annual Financial Report conforms to the
principles and standards of financial reporting as recommended and adopted by the Association of Schools Business Officials. This
award is granted only after an intensive review of the financial report by an expert panel of certified public accountants and
practicing school business officials. Management believes the Comprehensive Annual Financial Report for the fiscal year ended
June 30, 2017, which will be submitted to ASBO for review, will continue to conform to ASBO’s principles and standards.

Acknowledgments

The continued publication of this report is an indication of the District’s commitment to be accountable to our investors, the
residents of the Hudson City School District, and to our customers, the students.

HUDSON CITY SCHOOL DISTRICT
I 11