Marinette, Wi 54143: Marineite School District

RECEIVED
FEB 2. 52011
MARINEiTE SCHOOL
DISTRICT
February 24, 2011
Freedom of Information Act Officer

C/O Marinette School District
2135 Pierce Avenue
Marinette, Wisconsin 54143
(Certified Mail)
Sir,
Under the Freedom for Information, Public Act 442 of 1976, I am

Submitting a request for information and documentation.
Naturally I will reimburse the District for all reasonable expenses.
I would like two things:
1) Copy of the Kerber Rose Report referred to in the

Wednesday, February 16,2011 Eagle Herald.
WI~S
2) Actual Pension Contributions for the last fiscal year .,-S 1\
Ending June 30, 2010. A,-{irt(
I can be contacted at 715-923-0804 if you have any questions.
Thank Y o u , . /'
g-~ d cJ) d=-Cp
Frank O'Rourke
N1834 Shore Drive
Marinette, Wi 54143
SCHOOL DISTRICT OF MARINETIE
Annual Financial Report
June 30, 2010

SCHOOL DISTRICT OF MARINETTE
Table of Contents
June 30, 2010
Page
INDEPENDENT AUDITORS' REPORT 1-2
MANAGEMENT'S DISCUSSION AND ANALYSIS 3-11
FINANCIAL STATEMENTS:
District-Wide Statement of Net Assets 12

District-Wide Statement of Activities 13
Balance Sheet- Governmental Funds 14-15
Reconciliation 01 the Balance Sheet - Governmental Funds to the District-Wide
Statement of Net Assets 16
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 17-18
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances -

Governmental Funds to the District-Wide Statement of Activities 19
Statement of Net Assets - Fiduciary Funds 20
Statement of Changes in Fiduciary Net Assets 21
Notes to Financial Statements 22-39
REQUIRED SUPPLEMENTARY INFORMATION:

Other Post Employment Benefits - Scheduies of Funding Progress and Employer
Contributions 40
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund 41-42
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Aclual-
Special Education Fund 43-44
Notes to ReqUired Supplementary Information 45
Table of Contents (Continued)
June 3D, 2010
Page
SUPPLEMENTARY INFORMATION:
Combining Balance Sheet- Nonmajor Governmental Funds 46-47

Combining Statement of Revenues, Expenditures and Changes in Fund Balances-
Nonmajor Governmental Funds 48-49
Schedule of Changes in Assets and liabilities - Pupil Activity Fund 50
ADDITIONAL REPORTS:
Report on Internal Control Over Financial Reporting and on Compliance and
Other Mailers Based on an Audit of Financial Statements Performed in
Accordance with Governmenf Auditing Stendards 51-52
Report on Compliance with ReqUirements That Could Have a Direct and Material
Effect on Each Major Program and on Internal Control Over Compliance in Accordance
with OMB Circular A-133 and State Single Audit Guidelines 53-54
FEDERAL AND STATE AWARDS SECTION:

Schedule of Expenditures of Federal Awards 55-58
Schedule of State Financial Assistance 59-60
Notes to the Schedules of Expenditures of Federal Awards and State
Financial Assistance 61
Summary Schedule of Prior Year Audit Findings 62
Schedule of Findings 63-85
Corrective Action Plan 66
INDEPENDENT AUDITORS' REPORT
•
KERBER, ROSE & ASSOCIATES, S.C.

Ce,fified Public Accountants
115 E. Fifth Street • Shawano, WI 54166
(715) 526-9400 • Fax (715} 524-2599
INDEPENDENT AUDITORS' REPORT
To the Board of Education

School District of Marinette
Marinette, Wisconsin
We have audited the accompanying financial statements of the govemmental activities, each major fund, and the
aggregate remaining fund information of the School District of Marinette (District). as of and for the year ended June
30,2010, which collectively comprise the District's basic financial statements as listed In the table of contents. These
financial statements are the responsibility of the District's management. Our responsibility Is to express opinions on
these financial statements based on our audit.
We conducted our audit In accordance with auditing standards generally accepted In the United States of America
and the standards applicable to financial audits contained In Government Auditing Standards, Issued by the
Comptrollar General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit Includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also Includes assessing the accounting principles used and significant estimates made by the District's Board of
'Education and management, as well as evaluating the overall financial statement presentation. We believe that our
audl provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present falriy, in all material respects, the respective
financial position of the governmental activities, each major fund, and the aggregate remaining fund Information of the
School District of Marinette, as of June 30, 2010, and the respective changes In financial posRion for the year then
ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also Issued our report dated. November 29, 2010, on
our consideration of tha District's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws. regulations, contracts, grant agreements, and other matters. The purpose of that report is
to describe the scope of our testing of internal control over financial reporting and compliance and the results of that
tesling and not to provide an opinion on the internal control over financial reporting or on compliance. That report is
an integral part of an audit performed In accordance with Government Auditing Standards and should be consIdered
in assessing the results of our audit.
Members of the American and Wisconsin Institutes of Certified Public Accountants

www.kerberrose.com
•

School District of Marinelle
Accounting principles generally accepted in the United State of America require that the management's discussion
and analysis, schedules of funding progress and employer contributions, and bUdgetary comparison information on
page 3 through 11 and 40 through 45 be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Government Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance wilh audiling standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial statements and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
School District of Marinette's basic financial statements. The combining non-major fund financial statements are
presented for the purposes of additional analysis and are not a required part of the financial statements. The
accompanying schedule of expendilures of federal awards is presented for purposes of additional analysis as
reqUired by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-
Profit Organizations, and Is also not a reqUired part of the basic financial statements of the School District of
Marinelle. The accompanying schedules of state financial assistance and changes in assets and liabilities - pupil
actiVity fund are presented for purposes of additional analysis as required by Wisconsin State Single Audit Guidelines
and the Wisconsin Public SChool District Audit Manual, issued by the Wisconsin Department of Public Instruction.
The combining nonmajor fund financial statements, schedule of changes in assets and liabilities - pupil activity fund,
schedule of state financial assistance and schedule of expenditures of federal awards are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records used to
prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit
of the financial statements and certain additional procedures, including comparing and reconciling such Information
directly to the underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with audlling standards generally accepted in
the United Slates of America. In our opinion, the information is fairly stated in all material respects in relation to the
financial state ents as a whole.
~~S.G
Certified Public Accountants
November 29, 20tO
2
MANAGEMENT'S DISCUSSION AND ANALYSIS
Management's Discussion and Analysis
For the Year Ended June 30, 2010
This discussion and analysis of the School District of Marinette's financial information provides an overall review of
financial ectivitles for the fiscal year.
FINANCIAL HIGHLIGHTS
• The assets of the school district exceeded liabilities at the close of the fiscel year by $5,448,457. Of this
amount $1,563,351 is reflected as invested in caJlital assets, net of related debt and $796,420 is restricted for
debt, technology and sJlecial revenue trust. This results in unrastricted assets of $3,088,686.
• Net assets for the most recent fiscal year increased by $1 ,846,347.
• !'oJ; of June 30, 2010, the District's govemmental funds reported ending fund balances of $7,466,660, an
increase of $1,110,464 In comparison with the prior year.
• At the end of the current fiscal year, unreserved fund balance for the general fund was $6,613,092.
OVERVIEW OF THE FINANCIAL STATEMENTS
The District's financial statements are comprised of 1) district-wide financial statements, 2) fund financial statements,
3) noles to the financial statements and 4) required supplementary Information. In addition, other sUJlplemental
information to the financial statements is provided.
Dlstrlct·wide financial statements
• The district-wide financial statements are the statement of net assets and statement of activities. These
statements present en aggregate view of the District's finances in a manner similar to private-sector
business. Both statements distinguish functions that are supported princlJlBlly by property taxes and
Intergovernmental revenues, called governmental activities, from functions that are intended to recover all or
a significant portion of costs through user fees and charges called business-type activities. The District has
no business-type activttles.
• The statement of net assets presents on page 12 information on all of the District's assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the District is improving or deteriorating.
• The statement of activities presents on pages 13 information showing how the District's net assets changed
during the year. This statement reports the cost of government functions and how those functions were
financed for the fiscal year.
Fund financial statements
• The District also produces fund financial statements. A fund Is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities. The District, like other state
and local governments, uses fund accounting to demonstrate compliance with finance related legal
requirements. Fund statements generally report operations in more detail than the district-wide statements
and provide information that may be useful in evaluating a District's near-term financing requirements.
• There are two fund financial statements, the balance sheet and the statement of revenues, expenditures and
changes in fund batance (operating stalement). Generally, fund statements focus on near-term inflows and
outflows of spendable resources and their impact on fund balance.
3
Fund flnanclal statements (Continued)
• Because the focus of fund financial statements is narrower than that of the district-wide statements It is useful
to make comparison between the information presented. This helps readers beUer understand the long-term
implication of the government's near-term financial decisions. A reconciliation to facilitate the comparison of
the statement of net assets to the governmental funds balance sheet is presented on page 16. A separate
reconciliation of the statement of activities to the governmental funds operating statement is presented on
page 19.
• The District has two kinds of funds: governmental and fiduciary. Governmental funds include the District's six
regular funds (general, TEACH, special education, special revenue trusl, food service and debt service). The
District has three fiduciary funds, an agency fund for student organizations, a privata-purpose trust for
scholarship funds, and an employee benefit trust fund.
• Financial information is presented separately on both the balance sheet and the statement of revenues,
expendilures and changes in fund balance for the general, special education, and debt service funds as
these are considered to be major funds. Information is also combined and presented for the nonmajor
TEACH, special revenue trust, and food service funds. These statements are presented on pages 46 to 49.
• The District serves as a trustee, or fiduciary, for employee benefits, student organizations and student
scholarships. The assets of these organizations, scholarships and employee benefits trust do not directly
benefit nor are under the direct control of the District. The District's responsibility is IImRed to ensuring the
assets reported in these funds are used only for their intended purposes. Frc/Uciery activities are excluded
from the district-wide frnancial statements because the District cannot use these assets to finance its
operations. The statements are presented on pages 20 and 21 .
.
~
Notes to the financial statements
The nares to the financial statements provide additional information that is essential to the full understanding of the
data provided in the district·wide and fund financial statements. The notes to the financial statements follow the
financial statements and can be found on pages 22 to 39.
Required supplementary information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the District's post employment benefrts and budgets. The District provides
post employment and pension benefits and the schedules present the funding progress and the employer
contributions. The District adopts an annual appropriation budget for its general and special education funds. This
required supplementary information can be found immediately following the notes and pages 40 to 45.
Other information
This report also contains supplementary information. This Includes combining statements for the non-major
governmental funds and a schedule of changes in assets and liabilities for the pupil activity fund. The supplementary
information can be found on pages 46 to 50.
4
FINANCIAL ANALYSIS
The District as a Whole
Summary of Net Assets
2010 2009
Assets:
Current Assets $ 8,851,933 $ 10,445,126
Noncurrent Assets 18,134,017 18,959,771
Total Assets 26,985,950 29,404,897
Liabilities:
Current Liabilities 3,270,214 6,075,829
Long-Term Liabilities 18,267,279 19,726,958
Total liabilities 21,537,493 25,802,787
Net Assets:
Total Capital Assets, Net of Related Debt 1.563,351 822,813
Restricted 796,420 828,907
Unrestricted 3,088,686 1,950,390
Total Net Assets $ 5,448,457 $ 3,602,110
As indicated by the table above, total net assets are $5,448,457 as of June 30, 2010. Net assets can be separated
into three categories: invested In capital assets net of related debt, restricted assets, and unrestricted assets.
Invested in capital assets. net of related debt is capital assets at original cost less accumulated depreciation and
related debt. The original cost of capital assets is $36,932,319 as of June 30, 2010, which is an accumulation of
capital assets year after year less any capital disposals. The accumulated depreciation is the accumulation of
depreciation expense since acquisition. In accordance with generally accepted accounting principles (GAAP),
depreciation expense Is recorded on the original cost of the asset, less an estimated salvage value, expensed over
the estimated useful life ofthe asset. Total accumulated depreciation is $18,828,935 as of June 30,2010.
Restricted assets consist of assets required to be used for debt retirement, technology, and special revanue totaling
$796,420 as of June 30, 2010.
5
For the Year Ended Juna 30, 2010
Change In Net Assets. The following table shows the changes In net assets.
Amounts Amounts
2010 % ofTotal 2009 %ofTotal
Program Revenues:
Charges lor Services $ 545,494 2.0% $ 609,561 2.3%
Operating Grants and Contributions 3,279,173 12.0% 2,739,029 10.3%
Total Program Revenues 3,624,667 14.0% 3,348,590 12.6%
General Revenues:
Property Taxes levied for:
General Purposes 6,337,637 23.3% 5,960,920 22.3%
Debt Services 2,589,428 9.5% 2,640,066 9.9%
State and Federal General Aids 14,264,183 52.3% 14,548,604 54.5%
Other 233,300 0.9% 186,815 0.7%
Total General Revenues 23,424,548 86.0% 23,336,405 87.4%
Total Revenues 27,249,215 100.0% 26,684,995 100.0%
Expenses
Inslruction 14,269,325 56.2% 13,683,039 53.7%
/ ' Support Services 7,553,288 29.7% 8,132,439 31.9%
? Food Service
Interest on Long-Tarm Debl
958,825
1,041,700
3.8%
4.1%
922,101
1,208,935
3.7%
4.7%
t
Depreciation - Unallocated 843,085 3.3% 836,896 3.3%
Non-Program Transactions 736,645 2.9% 680,140 2.7%
Total Expenses ).-t'25,402,868

, 100.0% 25,463,550 100.0%
Change in Net Assets $ 1,846,347 $ 1,221,445
Key elements of this change are as follows:
Revenues increased by $564,220 primarily due to increases in operating grants and property lax revenue which
helped to offset decreases in charges for services and stale and federal general aids.
Expenses decreased by $60,682 primarily due to decreases In support services and interest expenses which helped
to offset increases in instruction and non-program transactions.
6
Revenues
The following chart illustrates the District's sources of revenues by percentages:
00.06%
,--:;?1lI),6<E---.,---CO.06%
[!] Local Sources
C Interdlslrlc!
Clntennedlate Sources
D State Source.
III Federal
DOlher
C95.13%
Revenue chart is llased on all district-wide funds combined.
The District relies primarily on property taxes and general state aid to fund governmental activities. General state aid
is paid according to a formula taking into consideration District spending and property values as compared to
spending and property values for the state as a whole. Property taxes and general state and federal aid account for
89.8% of district-wide revenues.
Local sources of revenues total $9,407,031 and include revenues to the general fund of $6,428,689, debt service of
$2,589,428, special revenue trust of $25,054, and food service fund of $363,860.
Interdistrict sources of revenues of $117,344 are funds from other districts for open enrollment and include revenues
to the general fund of $97,470 and the special education fund of $19,874.
Intermediate sources of revenues of $102,319, are amounts received from CESAs, and include revenues to the
general fund of $17,581 and special education fund of $84,738.
State sources of revenue total $14,700,239 and include revenues to the general fund of $13,743,807, special
education of $933,546, and food service fund of $22,886.
Federal sources of revenue total $2,743,589 and include revenue to the general fund of $1,231,844, special
education fund of $987,219, and food service fund of $524,526.
Other sources of revenue lotal $178,693 and include revenue to the general fund of $175,181, dellt service of $3,350,
and special education fund of $162.
7
Expenses
The following chart Illustrates the District's expenses by percentages:
.29.73%
[] Inslructlon
• Support Services
056.17% D Non-Program Transactions
D Interest
• School Food Sarvice
I:l Depreciation
[!J 3.32%
Expense chart is based on all district-wide funds combined.
Expenses include instruction of $14,269,325, support services of $7,553,288, food service of $958.825 non-program
transactions of $736,645, interest on short and long-term debt of $1,041,700 and unallocated depreciation of
$843,085.
Governmental Funds
The focus of the District's governmental funds is to provide information on near-term inflows, outfiows, and balances
of spendable resources. Such information is useful in assessing the District's financing requirements. In particular,
unreserved fund balance may serve as a useful measure of the government's net resources available for spending at
the end of the fiscal year.
As of June 30, 2010, the District's governmental funds reported combined ending fund balances of $7,486,680, an
increase of $1,110,464 in comparison with the prior year. A portion of the fund balance is reserved to indicate that it is
not available for new spending because it has already been committed 1) for inventory ($48,997), 2) retirement of
long-term debt ($742,942)c 3) special revenue trust ($41,795), 4) food service ($28.171) and 5) technology ($11 ,683).
The general fund is the chief operating fund of the District. As of June 30, 2010, the Iolal fund balance of the general
fund was $6,633,554. A portion of the fund balance ($20,462) is reserved for inventory. The remainder of the fund
balance ($6,613,092) is designated.
The fund balance of the general fund increased by $1.181,997from the prior year.
The debt service fund has a total fund balance of $742,942, all of which is reserved for the payment of debt service.
The debt service fund balance decreased by $28.806.
8
Fiduciary Funds
The District's fiduciary funds include a scholarship fund, an agency fund and an employee benefit trust fund.
Net assets of the scholarship fund at the end of the year amounted to $313,978. This entire amount is restricted for
scholarships. Net assets increased $13,386 from the prior year.
As of June 30, 2010, the agency fund reported that $105,903 was due to student groups, which is a decrease of
$3,739 from the prior year.
Net assets of the employee benefit trust fund at the end of the year amounted to $950,452, which is an increase of
$162,773 from the prior year. This entire amount Is restricted for employee benefits.
Budgetary Highlights, The District amended its budget during the year as shown in the following chart:
ORIGINAL REVISED BUDGET 2009-2010

BUDGET BUDGET REVISIONS ACTUAL VARIANCE PERCENT
General Fund:
Revenues $ 21,681,034 $ 21,651,956 $ (29,078) $ 21,694,5n $ 42,616 0.2%

Expend~ures
and Other Uses 22,022,525 21.325,047 697,478 20,512,575 812,4n 3.8%
Difference $ (341,491) $ 326,909 $ 668,400 $ 1,181,997 $ 855,088
Special Education
Fund:
Revenues and
Other Sources $ 4,304,022 $ 4,379.251 $ 74,957 $ 4,143,907 $ (235,344) (5.4%)
Expenditures 4,304,022 4,379,251 (74,957) 4,143,907 235,344 5.4%
Difference $ $ $ $ $
The District's actual general fund revenues were greater than the revised budget by $42,616, a variance of 0.2%.
The District's actual general fund expenditures were less than the revised budget by $812,472, a variance of 3.8%.
The District's actual special education fund revenues and expendllures were less than the revised budget by
$235,344, a variance of 5.4%.
9
Budgetary Highlights (Continued)
Differences between the final budget and actual results for the general fund were:
• Expenditures were less than expected due primarily to savings in staffing salaries and benefits of $190,092,
purchased services and utilities of $250,009, and unexpended transfer to special education fund of $372,355
for a total savings to the general fund of $812,456.
Differences between the final budget and actual results for the special education were:
• The differences between the final bUdget and actual expenditures for the special education fund were the
result of less than expected salaries and benefits of $158,103, purchased services of $52,326, unexpended
items, supplies and equipment of $24,915. The original budget included grant awards that were not
expended nor received resulting in a net savings to the special education fund of $235,344.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of the fiscal year, the District had invested a net of $18,103,384 in a broad range of capital assets,
inclUding buildings, sites, and equipment. This amount represents a net decrease of $823,556. Total accumUlated
depreciation on these assets is $18,828,935.
• Asset acqUisitions for governmental activities totaled $202,187.
• The District recognized depreciation expense of $1 ,025,743 for governmental activities during the fiscal year.
Governmental Activities
2010 2009
Land $ 158,315 $ 158,315
Buildings and Improvements 33,103,023 33,103,023
Furniture and Equipment 3,670,981 3,468,794
Less Accumulated Depreciation (18,828,935) (17,803,192)
Capital Assets Net of Depreciation $ 18,103,384 $ 18,926,940
10
Long-Term Debt
Outstanding Long-Term Obligations
2010 2009
General Obligation $ 19,740,666 $ 21,331,958
Other 211,295 165,426
$ 19,951,961 $ 21,497,384
• The District relired $4,382,707 bonds, notes, loans end other obligations.
ECONOMIC FACTORS
• The District enrollment has declined to 1,943 students for Pre-K to 12.
CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT
This financial report Is prepared to provide a general overview of the District's finances and to demonstrate the
District's accountability for the money it receives. If you have questions about this report or need additional financial
information, contact the Director of Business and Finance, School District of Marinelle, 2139 Pierce Avenue,
Marinette, WI 54143.
11
THIS PAGE LEFT BLANK INTENTIONALLY
FINANCIAL STATEMENTS
District-Wide Statement of Net Assets
As of June 30, 2010
Governmental
Activities
ASSETS:
Current Assets:
Cash and Investments $ 4,309,092
Receivables:
Taxes 3,292,220
Accounts 388,353
Due from Other Governments 813,271
Inventory 48,997
Total Current Assets 8,851,933
Noncurrent Assets:
Deferred Charges 30,633
Land 158,315
Buildings and Building Improvements 33,103,023
Fumiture and Equipment 3,670,981
Less: Accumulated Depreciation (18,828,935)
Total Noncurrent Assets 18,134,017
TOTAL ASSETS 26,985,950
LIABILITIES:
Current Liabilities:
Accounts Payable 216,241
Accrued liabilities:
Payroll, Payroll Taxes, Insurance 976,Q43
Interest 220,279
Unearned Revenue 172,969
Current Portion of Long-Term Obligations 1,684,682
Total Current Liabilities 3,270,214
Noncurrent Liabilities:
Noncurrent Portion of Long-Term Obligations 18,267,279
TOTAL LIABILITIES 21,537,493
NET ASSETS:
Invested in Capital Assets, Net of Related Debt 1,563,351
Restricted 796,420
Unrestricted Assets 3,088,686
TOTAL NET ASSETS $ 5,448,457
See Accompanying Noles

12
Distriel-Wide Slatement of Activities
Net (Expense)
Revenue and
Program Changes In Net
Revenues Assets
Operating
Charges For Grants and Governmental
Expenses Services Contributions Acllvilles
GOVERNMENTAL ACTIVITIES:
Instruclion:
Regular Inslruclion $ 9,489,211 $ 181,634 $ 560,765 $ (8,746,812)
Vocationallnslruclion 541,229 25,844 (515,385)
Physical Instruction 636,228 (636.228)
Speciallnslruction 2.866,761 2,025,377 (841,384)
Olher Instruction 735,897 (735,897)
Total Instruction 14,269,325 181,634 2,611,986 (11,475,705)
Support Services:
Pupil Services 1,158,177 (1,158,177)
Instructional Staff Services 818,235 75,502 (742,733)
General Administration Services 444,452 (444,452)
Building Administration Services 1,330,724 (1,330.724)
Business Services 598,560 (598,560)
Operations and Maintenance of Plant 1,707,488 (1,707,488)
Pupil Transportation Services 819,581 44.273 (775,308)
Central Services 479,849 (479,849)
Food Service Operations 958,825 363,860 547,412 (47,553)
In.urance 175,533 (175,533)
Other Support Services 20.689 (20,689)
Interest on Debt 1,041,700 (1.041,700)
Depreciation - Unallocated 843,085 (843,085)
Total Support Services 10,396,898 363,860 667,187 (9,365.851 )
Non-Program Transactions:
Open Enrollment 548,251 (548.251)
Non-Program Transacllons 188,394 (188,394)
Total Non-Program Transaction. 736,845 (736,646)
Total Governmental Activilles $ 25,402,868 $ 545,494 $ 3,279,173 (21,576,201 )
GENERAL REVENUES:
Property Taxes:
General Purposes 6.337,637
Debt Services 2,569,428
State and Federal Aids not Reslricted to
Specific Functions: Equalization Aid. Exempt
Compuler Aid, Payment in Lieu of Taxes and
ARRA State Stabilization 14,264,183
Interest and Investment Earnings 23.556
Miscellaneous 209.744
Total General Revenues 23,424,548
CHANGE IN NET ASSETS 1,846,347
NET ASSETS - BEGINNING OF YEAR 3.602,110
NET ASSETS - END OF YEAR $ 5,448,457
See Accompanyln9 Notes

13
Balance Sheet
Governmental Funds
As of June 30, 2010
Special
General Education
ASSETS:
Cash and Investments $ 3,465,446 $
Receivables:
Taxes 3,292,220
Accounts 334,683 51,181
Due from Other Governments 495,910 294,552
Due from Other Funds 343,974
Inventory 20,462
TOTAL ASSETS $ 7,952,695 $ 345,733
LIABILITIES AND FUND BALANCES:

Liabilities:
Accounts Payable $ 176,409 $ 2,041
Accrued liabilities:
Payroll, Payroll Taxes, Insurance 976,Q43
Deferred Revenue 166,689
Due to Other Fund 343,692
Total Liabilities 1,319,141 345,733
FUND BALANCES;
Reserved for:
Inventory 20,462
Debt Service
Special Revenue Fund
Food Service Fund
TEACH Fund
Unreserved:
Designated 6,613,092
Total Fund Balances 6,633,554
TOTAL LIABILITIES AND

FUND BALANCES $ 7,952,695 $ 345,733
See Accompanying Notes

14
Other Total
Debt Governmental Governmental
Service Funds Funds
$ 743,587 $ 100,059 $ 4,309,092
3,292,220
2,489 388,353
22,809 813,271
343,974
28,535 48,997
$ 743,587 $ 153,892 $ 9,195,907
$ 363 $ 37,428 $ 216,241
976,043
6,280 172,969
282 343,974
645 43,708 1,709,227
28,535 46,997
742,942 742,942
41,795 41,795
28,171 28,171
11,683 11,683
6,613,092
742,942 110,184 7,486,680
$ 743,587 $ 153,892 $ 9,195,907

15
Reconciliation of the Balance Sheet - Governmental Funds
10 the District-Wide Statement of Net Assets
As of Ju ne 30, 2010
Total Fund Balances - Governmental Funds $ 7,486,680
Total net assets reported for governmental activities in the

statement of net assets are different from the amount reported
above as total governmental funds fund balance because:
Deferred Charges - Debllssuance Costs 30,633
Capital assets used in government activities are not financial

resources and therefore are not reported in the fund statements.
Amounts reported for governmental activities in the statement of net
assets:
Capital Assets 36,932,319
Accumulated Depreciation (18,828,935) 18,103,384
Liabilities, including bonds and notes payable, are not due in the
current period and therefore not reported in the fund statements.
Liabilities reported in the statement of net assets that are not
reported in the funds balance sheet:
Bonds and Notes (19,740,666)
Accrued Interest (220,279)
Vested Employee Benefits (211,295) (20,172,240)
Total Net Assets· Governmental Activities $ 5,448,457

16
Slatement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30. 2010
Special
General Educallon
REVENUES:
Property Taxes $ 6,337,637 $
other Local Sources 91,052
Interdistrict Sources 97,470 19,874
Intermediate Sources 17,581 84,738
State Sources 13,743,807 933,546
Federal Sources 1,231,844 987,219
Other Sources 175,181 162
Total Revenues 21,694,572 2,025.539
EXPENDITURES:
Instruction:
Regular Instruclion 9,415,984
Vocational Instruction 531,575 17,860
Physical Instruction 636,126
Special Inslruction 2,868,961
Other Instruction 719,960 885
Total Instruction 11,303,645 2,887,706
Support Services:
Pupil Services 673,001 467,714
Instructional Staff Services 525,949 324,394
General Administration Services 442,824
Building Administration Services 1,373,661
Business Services 551,846 7,026
Operations and Maintenance 1,747,213
Pupil Transportation 557,870 260,931
Central Services 438,748
Food Service Operations
Insurance 175,533
Principal and Interest 42,719
Other Support Services 20,689
Total Support Services 6,550,053 1,080,065
Non·Program Transactions:
Open Enrollment 522,259 25,992
Non-Program Transactions 18,250 170,144
Total Non-Program Transactions 540,509 196,136
Total Expenditures 18,394,207 4,143,907
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,300,365 (2,118,368)
OTHER FINANCING SOURCES (USES):
Transfer to Special Educaticn Fund (2,118.368) 2,118,368
NET CHANGES IN FUND BALANCES 1,181,997
FUND BALANCES· BEGINNING OF YEAR 5,451,557
FUND BALANCES - END OF YEAR $ 6,633,554 $
See Accompanying Notss

17
Other Total
Debt Governmental Governmental
Service Funds Funds
$ 2,589,428 $ $ 8,927,065
388,914 479,966
117,344
102,319
22,886 14,700,239
524,526 2,743,589
3,350 178,693
2,592,778 936,326 27,249,215
6,816 9,422,800
549,435
636,126
2,868,961
2,438 723,283
9,254 14,200,605
1,007 1,141,722
1,300 851,643
442,824
1,373,661
5,000 563,872
1,217 1,748,430
780 819,581
10,177 448,925
950,318 950,318
175,533
2,621,584 2,664,303
20,689
2,621,584 969,799 11,201,501
548,251
188,394
736,645
2,621,584 979,053 26,138,751
(28,806) (42,727) 1,110,464
(28,806) (42,727) 1,110,464

771,748 152,911 6,376,216
$ 742,942 $ 110,184 =$=~7
..,4_8_6~,6.80;;.,
.
See Accompanying Noles

16
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds to the District-Wide Statement of Activities
Net Change In Fund Balances - Total Governmental Funds $ 1,110,464
Amounts reported for governmental activities In the statement of activities

are different because:
The acquisition of capital assets are reported in the governmental funds as

expenditures. However, for governmental activities those costs are shown in the
statement of net assets and allocated over their estimated useful lives as annual
depreciation expenses in the statement of activities.
Capital outiay reported In governmental fund statements 202,187
Depreciation expense reported in the statement of actiVities (1,025,743)
Amount by which capital outlays are less than depreciation in
the current period. (823,556)
Compensated absences are reported in the governmental funds when amounts

are paid. The stalemenl of activities reports the value of benefits earned during
the year.
Compensated absences paid in currenl year 40,079
Compensates absences earned in current year (40,104)
Amounts paid are less than amounts earned by (25)
Other post employmenl benefits are reported in the governmental funds when
amounts are paid. The statement of activities reports the value of benefits
earned during the year.
Other post-employment benefrts paid in current year .2,737,628
Other post-employment benefits earned in current year (2,783,472)
Amounts paid are less than amounts earned by (45,844)
Repayment of princIpal on long-term debt is reported in the governmental funds

as an expend~ure, but is reported as a reduction in long-term debt in the
statement of net assets and does not affect the statement of activities.
The amount of long-term debt principal payments in the current year is 1,605,000
In governmental funds interesl payments on outstanding debt are reported as an

expenditure when paid. In the statement of activities interest is reported as
incurred.
The amount of interest paid during the current period 1,015,195
The amount of interest accrued during the current period (998,981)
Interest paid is greater than interest accrued by 16,214
Prior year debt issuance costs and premium are allocated over the period
the debt is outstanding and are reported as an increase in interest expense
and increase in governmental fund expense. respectively in the statements
of activities. The expense for the year is (15,906)
Change In Net Assets· Governmental Activities $ 1,846,347

19
Statement of Net Assets
Fiduciary Funds
As of June 30, 2010
Employee
Benefit Total
Trust Scholarship Agency
ASSETS:
Cash and Investments $ 950,452 $ 313,978 $ 105,903 $ 1,370,333
liABiliTIES:
Due 10 Student Groups 105,903 105,903
NET ASSETS:
Reserved for Scholarships 313.978 313,978
Reserved for Employee Benefits 950,452 950,452
Total Net Assets $ 950,452 $ 313,978 $ $ 1,264,430

20
Statement of Changes in Fiduciary Net Assets

21
• SCHOOL DISTRICT OF MARINETTE
Notes to Financial Statements
June 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
This summary of significant accounting policies of the School District of Marinette (District) is presented to assist in
understanding the District's financial statements. The financial statements and notes are representations of the
District's management who is responsible for the integrity and objectivity of the financial statements. These
accounting policies conform to generally accepted accounting principles and have been consistently applied in the
preparation of the financial statements.
The District's financial statements are prepared in accordance with generally accepted accounting principles (GAAP).
The Governmental Accounting Standards Board (GASB) Is responsible for establishing GAAP for state and local
governments through its pronouncements (Statements and Interpretations). The more significant accounting policies
established in GAAP and used by the District are discussed below.
NATURE OF OPERATIONS
The School Distrlot of Marinette is organized as a unified school district. The District, governed by a nine-member
elected school board, operates grades Pre-Kindergarten through 12 and is comprised of five taxing districts.
The accompanying financial statements present the activities of the School District of Marinette. The school district is
not a component unit of another reporting entity nor does it have any component units.
The financial reporting entity consists of (a) organizations for which the stand-alone government is financially
accountable and (b) the stand-alone government that is controlled by a separately elected governing body that is
legally separate and is fiscally independent. All of the accounts of the District comprise the standalone government.
DISTRICT-WIDE STATEMENTS
The statement of net assets and the statement of activities present financial information about the District's
govemmental activities. These statements include the financial activities of the overall govemment in ~s entirety,
except lhose that are fiduciary. Eliminations have been made to minimize the double counting of internal
transactions. Governmental activities generally are financed through taxes, intergovernmental revenues, and other
nonexchange transactions.
The statement of aclivllies presents a comparison between direct expenses and program revenues for each function
of the District's governmental activities. Direct expenses are those that are specifically associated with and are
clea~y identifrable to a partiCUlar function. Program revenues InclUde (a) charges paid by the recipients for goods or
sef':'lces off?red by the prog~ms and (b) grants and contributions that are restricted to meeting the operational or
capital reqUirements of a particular program. Revenues that are not classified as program revenues, including all
taxes, are presented as general revenues.
FUND FINANCIAL STATEMENTS
Separate financial statements are provided for governmental funds and fiduciary funds. Major individual governmental
funds are reported as separate columns in the fund financial statements.
Fund financial statements 0.1. the reporting entity are organized into individual funds each of which are considered to
be.separate accounting ent~tle~:. Each fund i.s accounted for by providing a separate set of self-balancing accounts
which constitute Its assets, liabilities, fund eqUity, revenues. and expenditures.
22
Noles to Financial Statements
June 30, 2010
NOTE 1 • SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):
FUND FINANCIAL STATEMENTS (Continued)
In prior years, the food service fund was considered to be a proprietary fund. After further examination by the District,
it was determined that the food service fund should be reclassified from a proprietary fund to a governmental fund.
Funds are organized as major funds or nonmajor funds within the governmental statements. An emphasis is placed
on major funds within the governmental funds. A fund is considered major if it is the primary operating fund of the
District or meets the following criteria:
a. Total assets, liabilities, revenues, or expenditures of that individual governmental fund are at least 10 percent
of the corresponding total for all funds of that category or type and
b. The same element that met the 10 percent criterion in (a) is at least 5 percent of the corresponding element
total for all funds combined.
c. In addition, any other governmental fund that the District believes is particularly Important to financial
statement users may be reported as a major fund.
Governmental Funds
Governmental funds are Identified as either general. special revenue or debt service based upon the following
gUidelines.
General Fund
The general fund is the primary operating fund of the District and is always classified as a major fund. It is used to
account for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds
Special revenue funds are used to accounl for Ihe proceeds of specific revenue sources (other than major capital
projects) that are legally reslrlcted to expenditures for specified purposes.
Debt Service Funds
Debt service funds are used 10 account for the accumulation of resources for, and the payment of, generallon9-
I
term principal, interest, and related costs.
23
June 30, 2010
FUND FINANCIAL STATEMENTS (Continued)
Fiduciary Funds
Agency Funds
Agency funds are used to account for essets held by the District es en egent for various student organizations.
Scholarship Fund
This fund reports a trust arrangement under which principal and income benefit a oollege scholarship program.
Emplovee Benefit Trust
This fund is used to aooount for resources heid in trust for formally established post employment benefit plans.
t'--- .....
Major Funds
The District reports the following major governmental funds:
General Fund - The General Fund is the operating fund of the District. II is used to account for all
financial resources of the District except those required to be accounted for In other funds.
Special Education Fund - This fund accounts for activities associated with providing education
programs for students with disabilities. Sources include financial aid received from the state and
federal government and payments from other school districts. Excess expenditures of the fund are
financed with a transfer from the general fund.
Debt Service Fund - This fund accounts for the resources accumulated and payments made of
principal and interest on long-term general obligation debt of governmental activities.
Nonmajor Funds
The District reports the following nonmajor funds:
Food Service Fund - This fund aooounts for the activities associated with the District's breakfast and lunch
programs.
Special Revenue Trust Fund - This fund accounts for resources and payments made for gifts given to the District
for specific projects.
TEACH Fund - This fund accounts for resources and payments funded wilh grants and loans from the Wisconsin
TEACH Board.
24
June 30, 2010
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
Measurements focus rerers to what is being measured; basis of accounting refers to when revenues and
expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to
the timing of the measurement made, regardless of the measurement focus applied.
The district-wide and fiduciary fund financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the
time liabilities are incurred, regardless of when the related cash transaction takes place. Nonexchange transactions,
In which the District gives or receives value without direcUy, receiving or giving equal value in exchange, include
property taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized
in the fiscal year for which the taxes are leVied. Revenue from grants, entiUements and donations is recognized in the
fiscal year in which all eligibility requirements have been satisfied.
The governmental fund statements are reported using the current financial resources measurement focus and the
mOdified aocrual basis of accounting. Under this method, revenues are recognized when measurable and available.
The District considers all revenues reported in the governmental funds to be available if the revenues are collected
within sixty days after the end of the fiscal year. Expenditures are recorded when the related fund liability Is incurred,
except for principal and interest on general long-term debt, claims and judgments, and compensated absences which
are recognized as expenditures to the extent they have matured. General capital asset acqUisitions are reported as
expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are
reported as other financing souroes.
Under the terms of grant agreements, the District may fund certain programs by a combination of specific cost-
reimbursement grants, categorical block grants, and general revenues. Therefore, when program expenses are
incurred, both restricted and unrestricted net assets may be available to finanoe the program. It is the District's poticy
to first apply cost-reimbursement grant resources to such programs, followed by general revenues.
CASH AND INVESTMENTS
The District's cash and investments are considered to be cash on hand, demand deposits, and short-term
investments with original maturities of three months or less from date of acquisition. Cash and investments balances
for individual funds are pooled unless maintained in segregated accounts.
State statutes permit the District to invest available cash balances, other than debt service funds, In time deposits of
authorized depositories, U.S. Treasury obligations, U.S. agency issues, high grade commercial paper, and the local
government pooled-investment fund administered by the State Investment Board. Available balances in the debt
service fund may be invested in municipal obligations, obligations of the United States, and the local government
pooled-investment fund.
Donations to the District of securities or other property are considered trust funds and are invested as the donor
specifies. In the absence of any specific directions, the District may invest the donated items in accordance with laws
applicable to trust Investments.
25
June 30, 2010
ACCOUNTS RECEIVABLE
Accounts receivable In the governmental funds are recorded at gross amounts with uncollectible amounts recognized
under the direct write-off method. No allowance for uncollectible accounts has been provided since It is believed that
the amount of such allowance would not be material.
PROPERTY TAXES
The aggregate District tax levy is apportioned and certified by November 6 of the current fiscal year for collection to
comprising municipalities based on the immediate past October 1 full or "equalized" taxable property values. As
permitted by a colleeling municipality's ordinance, taxes may be paid in full or in two or more installments wilh the first
installment payable by the subsequent January 31 and a final payment no later than the following July 31. On or
before January 15, and by the twentieth of each subsequent month thereafter, the District may be paid by the
collecting municipalities its proportionate share of tax collections received through the last day of the preceding
month. On or before August 20, the county treasurer makes full settlement to the District for any remaining balance.
The county assumes all responsibility for delinquent real property taxes.
Property taxes are recognized as revenue in the period for which the taxes are levied. The 2009 tax levy Is used to
finance operations of the District's fiscal year ended June 30, 2010. All property taxes are considered due on January
1", when an enforceable lien is assessed against the property and the taxpayer is liable for the taxes. All taxes are
collected within 60 days of June 30th and are available to pay current liabilities.
INTERFUND ACTIVITY
The interfund activity is reported as either loans, services provided. reimbursements or transfers. Loans are reported
as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services
provided, deemed to be at market or near market rates, are treated as revenues and expenditures. Reimbursements
are when one fund incurs a cost, charges the appropriate benefiting fund and reduces it related cost as a
reimbursement. All other interfund transactions are treated as transfers.
CAPITAL ASSETS
Capital assets are reported at actual or estimated historical cost. Donated assets are reported at estimated fair value
at the time received.
Capilalization thresholds (the dollar valued above which asset acquisitions are added to the capital asset accounts),
depreciation methods, and estimated useful lives of capital" assets reported In the distriel-wide statements and
proprietary funds are as follows: costs are capilalized using a capitalization threshold of $5,000. All depreciable
capilal assets are depreciated on a straight-line basis with estimated useful lives for bUildings and building
improvements of 15·40 years and furnilure and equipment of 5-1 0 years.
Depreciation is used to allocate the actual or estimated historical cast of all capital assets over their estimated useful
lives.
UNEARNED/DEFERRED REVENUE
Governmental aelivilies in the district-wide statement of activities report unearned revenue and therefore defer
revenue recognition in connection with resources that have been received, but not yet earned. Governmental funds
also report deferred revenue in connection wilh receivables for revenues that are not considered to be available to
liquidate liabilities of the current period. The combination of these are reported as deferred revenue in the balance
sheet. When revenue recognition criteria is met, unearned or deferred revenue are reduced, as applicable, and
income is recognized.
26
June 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):
COMPENSATED ABSENCES AND POST EMPLOYMENT BENEFITS
The Districfs policy allows certain administrative employees to earn varying amounts of vacation pay for each year
employed. Upon retirement or termination of employment the employee is entitled to payment in cash. The
compensated absences liability is calculated based on the pay rates in effect at year-end, and InclUdes applicable
salary related payments. Eligible employees covered by the early retirement plan will receive an additional
contribution equivalent to up to fifty dollars per unused sick day at the time of retirement Into the employee's employer
sponsored 403(b) account.
Early retirement benefits are available to teachers and non-teachers meeting certain requirements. See Note 9 and
Note 10.
Administrators newly hired after July 1, 2005 shall earn from the District an employer sponsored tax sheltered annuity
(TSA) 403(b) contribution. Administrators earn TSA units annually of $2,500. The TSA funds are forfeited on a pro-
rated basis based on years of service until the employee completes five full years of service to the District. The
employee is eligible to retire from the District proVided the employee has completed five years of service to the District
and is at least age 55.
Teachers hired after July 1, 2005 shall earn from the District an employer sponsored tax sheltered annuity 403(b)
contribution. Employees earn TSA units based on number of years employed. Each unit is worth $1,500 which is
placed in a tax shelter annuity. Teachers are eligible to retire from the District with 10 years total experience at the
age of 55. The TSA funds are forfeited to the District if the employee resigns prior to completion of 10 years of
service. Employees hired prior to the July 1, 2005 school year, annually have the option of Irrevocably converting to
this plan.
LONG-TERM DEBT
In the district-wide financial statements, long-term debt and other long-term obligations are reported as liabilities.
Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds.
Bonds payable are reported net of the applicable bond premium or discount. Bond Issuance costs are reported as
deferred charges and amortized over the term of the relaled debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond
Issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt Issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
C~MSANDJUDGMENTS
Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting Standards Board
pronouncements are met. Claims and judgments that would normally be liquidated with available expendable
financial resources are recorded during the year as expenditures in the appropriate governmental fund types. If they
are not liquidated with available expendable financial resources, a liability is recorded in the statement of net assets.
There were no significant claims or judgments at year-end.
27
June 30, 2010
EQUITY DESIGNATIONS
District-Wide Statements
Equity Is classified as net assets and displayed in three components:
• Invested in capital assets, net of reiated debt - Consists of capital assets including restricted capital assets,
net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, noles,
or other borrowings that are allributable to the acquisition, construction, or Improvement of those assets.
• Restricted net assets - Consists of net assets with constraints placed on the use either by (1) external
groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law
through constitutional provisions or enabling legislation.
• Unrestricted net assets - Ali other net assets that do not meet the definition of "restricted" or "invested in
capital assets, net of related debt."
When both restricted and unrestricted resources are available for use, It is the District's policy to use restricted
resources first, then unrestricted resources as they are needed.
Fund Financial Statements
Governmental fund equity is classified as fund balance, Fund balance is further classified as reserved and
unreserved, wllh unreserved further spiil between designated and undesignaled.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenditures during the reporting period. Actual resulls may differ from those estimates.
NOTE 2 - CASH AND INVESTMENTS:
The debt service fund accounts for its transactions through a separate and distinct bank account as required by State
Statues. In addition, the agency and employee benefit trust funds use separate and distinct accounts. All other funds
share in common bank and investments accounts.
The District is reqUired to invest its funds in accordance with Wisconsin Statutes. Aliowable investments are as
follows:
o Time deposits in any credit union, bank, savings bank or trust company maturity in three years or less.
o Bonds or securities of any county, city, drainage district, technical coliege, village, town, or school district of
the state, Also, bonds Issued by a local exposilion district, local professional baseball park district, local
professional footbali stadium district, local cultural arts district or by the University of Wisconsin Hospitals
and Clinics.
o Bonds or securities guaranteed by the federal government.
o The Local Government Pooled Investment Fund and the Wisconsin Investment Trust.
o Any security maturing in seven years or less and having the highest or second highest rating category of a
nationaliy recognized rating agency.
28
June 30, 2010
NOTE 2 - CASH AND INVESTMENTS (Continued):
• Securities of an open end management Investment company or investment trust, subject to various
condUIons and investment options.
• Repurchase agreements with public depositories, with certain conditions.
Additional restrictions could arise from local charters, ordinances, resolutions and grant resolutions of the District.
At June 30, 2010 the bank balance of cash was $6,457,684. The District maintains its cash account at five financial
institutions. Custodial credit risk for deposits is the risk that In the event of a bank failure, the District's deposits may
not be returned. The District does not have a deposit policy for custodial credit risk.
Deposits In each bank are insured by the FDIC in the amount of $250,000 for Interest bearing accounts and unlimited
coverage for nonlnterest-bearlng transaction accounts. Noninterest-bearing transaction accounts are defined to
include the following:
• Traditional demand deposit, or checking accounts that do not earn interest; and
• Negotiable Order of Withdrawal (NOW) accounts with interest rates no higher than .50%
Effective July 1, 2010, In order for a NOW account to be considered a non-interest bearing transaction account it
cannot have an inlerest rate higher than .25%.
Bank accounts are also insured by the State Deposit Guarantee Fund In the amount of $400,000. However, due to
the relatively small size of the Guarantee Fund in relationship to the total deposits covered and other legal
Implications, recovery of material principal losses may not be slgniticant to individual municipalities.
The following represents a summary of deposits as of June 30, 2010:
Fu~y Insured Deposits $ 2,504,900

Collateralized with securities held by pledging
financial Institutions in the District's name 3,215,000
Unccllateralized 737,784
Total $ 6,457,684
As of June 30,2010 the District had the following Investments;
Investment Maturities Fair Value

Repurchase Agreements o Days $ 122,862
Interest Rate Risk - The District does not have a formal investment policy that limits investment maturities as a
means of managing Its exposure to fair value losses arising from increasing interest rates.
Credit Risk - State law limits investments In commercial paper, corporate bonds, and mutual bond funds to the top
two ratings issued by nationally recognized statistical rating organizations. The District's investment policy does not
further limit its investment choices. As of June 30, 2010, the District's investments were not rated.
Concentration of Credit Risk - The District placed no limit on the amount the District may invest in anyone issuer.
100 percent of the District's Investments are in repurchase agreements.
For all deposits and Investments shown, the market value at the balance sheet dale Is SUbstantially the same as the
carrying value. The difference between the bank balance and carrying value Is due to outstanding checks and/or
deposits in transit.
29
June 30, 2010
NOTE 3 ·INTERFUND RECEIVABLE, PAYABLES AND TRANSFERS:
Interfund receivables and payables between individual funds of the District, as reported in the fund financial
statements, as of June 30, 2010 are detailed below:
Receivable Fund Payable Fund Amount Purpose
General Fund Debt Service $ 282 Vear End Cash Flow Timing
General Fund Special Education Fund 343,692 Vear End Cash Flow Timing
$ 343,974
Interfund transfers for the year ended June 30, 2010, are as follows:
Special
Transfer From: Education Fund Purpose
General Fund $ 2,118,368 Cover Fund Deficit
NOTE 4 • SHORT-TERM DEBT:
The District issues tax anticipation notes in advance of property tax collections, depositing the proceeds il its general
fund. Due to the liming of tax revenue receipts these notes are necessary for the District to meet its cash fiow needs
throughout the year.
Short-term debt activityforthe year ended June 30,2010, was as follows:
Beginning Ending
Balance Issued Redeemed Balance
Tax Anticipation Notes $ 3,000,000 $ 2,500,000 $ 5,500,000 $
Total interest paid on short-term note for the year totaled $108,646.
30
June 30, 2010
NOTE 5 - CAPITAL ASSETS:
Capital asset balances and activity for the year ended June 30. 2010 were as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital Assets not being
Depreciated:
Land and Improvements $ 158,315 $ $ $ 158,315
Capital Assets being
Depreciated:
Buildings and Improvements 33.103,023 33,103.023
Furniture and Equipment 3,468,794 202.187 3.670.981
Total Capital Assets being
Depreciated 36.571,817 202.187 36,774.004
Less Accumulated
Depreciation for:
Buildings and
Improvements (14,863,305) (865.534) (15,728.839)
Furniture and Equipment (2,939.887) (160,209) (3,100,096)
Total Accumulated
Depreciation (17.803.192) (1,025.743) (18.828.935)
Total Capital Assets being
Dspreclated. Net of
Depreciation 18,768,625 (823.556) 17,945,069
Governmental Activities
Capital Assets, Net of
Accumulated Depreciation $ 18.926.940 $ (823.556)
- $ $ 18.103.384
31
June 30, 2010
NOTE 5· CAPITAL ASSETS (Continued):
Depreciation expense for fiscal year ended June 30, 2010 amounted to $1,025,743 and was charged to the following
functions:
Governmental Activities:
Instruction:
RegUlar $ 27,262
Vocational 4,578
Physical 101
Special 10,172
Other 12,614
Support Services:
Instructional Staff Services 12,512
General Administration 1,628
BUilding Administration 4,883
Operations and Maintenance 24,515
Central Services 41,198
Food Service 8,507
Business Services 34,688
Unallocated 843,085
Total Depreciation Expense $ 1,025,743
The District had two elementary buildings that are not being used for instruction at fiscal year end. The carrying
amount of these buildings is $616,723.
NOTE 6 • LONG·TERM OBLIGATIONS:
The following is a summary of changes in long-term obligations of the District for the year ended
June 30, 201 0:
ArnounlDue
Beginning Ending WllhlnOne
Balances Addilions ReducUons Balances Year
Refunding Bonds $ 21,495,000 $ $ 1,605,000 $ 19,890,000 . $ 1,675,000

Adjustments For:
Issuance Premium 20,855 1,904 18,951
Issuance Discount (59,593) (4,270) (55,323)
Refunding (124,304) (11,342) (112,962)
Total General Obligation Debt 21,331,958 1,591,292 19,740,666 1,875,000
Compensaled Absences 9,657 40,104 40,079 9,682 9,682
Other Post Employmenl
Benefits 155,769 2,783,472 2,737,628 201,613
Tolal Govemmenlal Activity
Long-Tenn Liablltlles $ 21,497,384 $ 2,823,576 $ 4,368,999 $ 19,951,961 $ 1,684,682
Total interest paid for the year ended June 30, 2010, was $1,015,195.
32
June 30, 2010
NOTE 6· LONG-TERM OBLIGATIONS (Continued):
All general obligation debt is secured by the full faith and credit and unlimited taxing powers of the District. General
obligation debt at June 30, 2010, is comprised of the following individual issues:
Date of Final Interest Original Balance

Issuance Maturity Rate Indebtedness 08130/2010
2002A General ObllgaUon Bonds 05115102 03101119 2.15%- 5% $ 14,650,000 $ 13,060,000
2005 General Obligation Bonds 06115/05 03101/19 2,75% - 4,05% 4,065,000 3,660,000
2006 General Obligation Notes 09/15106 03101/26 5.31% - 5,78% 3,255,000 3,170,000
Total General Obligations Bonds $ 19,890,000
The 2009 equalized valuation of the District as certified by the Wisconsin Department of Revenue is $984,062,600.
The legal debt limit and margin of indebtedness as of June 30,2010, in accordance with Section 67.03(1)(b) of the
Wisconsin Statutes follows:
Debt Umit (10% of $984,062,600) $ 98,406,260

Deduct long-term debt applicable to debt margin 19,890,000
Margin of Indebtedness $ 76,516,260
Aggregate cash flow requirements for the retirement of long-term principal and Interest as of June 30, 2010, follows:
Year Ended
June 3D, Principal Interest Total
2011 $ 1,675,000 $ 950,756 $ 2,625,756

2012 1,750,000 660,870 2,630,670
2013 1,630,000 804,918 2,634,916
2014 1,910,000 723,344 2,633,344
2015 1,995,000 630,667 2,625,667
2016-2020 9,195,000 1,615,672 10,610,672
2021-2025 1,240,000 307,962 1,547,962
2026 295,000 17,051 312,051
Total $ 19,690,000 $ 5,931,442 $ 25,621,442
Compensated absences and early retirement benefits are excluded from the above cash flow requirements because
repayment schedules have not been determined,
33
June 30, 2010
NOTE 7· NET ASSETS AND FUND BALANCES:
District-Wide Statements
Net assets reported on the district-wide statement of nel assets at June 30, 2010 includes the following:
Invested in Capital Assets, Net of Related Debt:

Net Capital Assets $ 18,103,384
Less: Related Long-Term Debt Outstanding 16,540,033
Total Invested in Capital Assets, Net of Related Debt 1,563,351
Restricted 796,420
Unrestricted 3,088,686
Total Net Assets $ 5,448,457
Restricted assets consist of debt retirement of $742,942, technology of $11,683, and revenue trust of $41 ,795.
Fund Statements
On June 30, 2010, no individual funds had fund balance deficits. Portions of fund balances are reserved and are not
available for current appropriation or expenditure, as follows:
Reserved Fund
Individual Fund Balance
General Fund $ 20,462
Special Revenue:
TEACH Grant 11,683
Private Trust Donations 41,795
Food Service Fund 56,706
Debt Service Fund 742,942
$ 873,588
General fund balance is reserved for inventory.
Special revenue fund balance is reserved for future TEACH grant expenditures and private donation expenditures.
Food service fund balance is reserved for future food service expenditures.
Debt service fund balance is reserved for the payment of long-term debt principal, interest and related costs.
Also in the fund financial statements, all of the remaining governmental fund balances have been designated to
represent tentative management plans that are subject to change. At June 30, 2010, fund balance was designated
as follows:
General Fund:
Designated for:
Working Capital $ 6,613,092
34
June 30, 2010
NOTE 8 • DEFINED BENEFIT PENSION PLAN:
All eligible District employees participate in the Wisconsin Retirement System (WRS). a cost-sharing multiple-
employer defined benefit public employee retirement system (PERS). All permanent employees expected to work
over 600 hours a year (440 hours for District employees) are eligible to participate in the WRS. Covered employees In
the generallteacher/educatlonal support personnel category are required by statute to contribute 5.8% of their salary
(2.8% for executives and elected officials, 4.9% for protective occupations with social security, and 3.3% for protective
occupations without social security) to the plan. Employers may make these contributions to the plan on behalf of
employees. Employers are required to contribute an actuarially determined amount necessary to fund the remaining
projected cost of future benefits.
The payroll for District employees covered by the WRS for the year ended June 30, 2010, was $9,287,759; the r
employer's total payroll was ,.$9,125;629.- =fb!ltotal reqUired contribution for th~ar'-~-June 30, 2010 was
$965,927, which consisted of $417,949 or 4.§~of payroll from the employer and $547,976, .9% of payroll from
employees. Total contributions.!orJbe-yeius ended June 30, 2009 and 200a.ViElcE! 63,315 and $964,966,
respectively, equal to the reqUired contributions for each year.
Employees who retire at or after age 65 (62 for elected officials and 54 for protective occupation employees with less
than 25 years of service, 53 for protective occupalion employees with more than 25 years of service), are entilled to
receive a retirement benefit. Employees may retire at age 55 (50 for protective occupation employees), and receive
actuarially reduced benefits. The factors influencing the benefit are: (1) final average earnings, (2) years of creditable
service, and (3) a formula factor. Final average earnings is the average of the employee's three highest years'
earnings. Employees terminating covered employment before becoming eligible for a retirement benefit may
withdraw their contributions and, by doing so, forfeit all rights to any subsequent benefit. For employees beginning
participation on or after January 1,1990, and no longer actively employed on or after April 24, 1998, creditable service
in each of fIVe years is required for eligibility for a retirement annuity. Participants employed prior to 1990 and on or
after April 24, 1998, are immediately vested.
The WRS also provides death and disability benefits for employees. Eligibility for and the amount of ail benefits are
determined under Chapter 40 of Wisconsin Statutes. The WRS issues an annual financial report, which may be
obtained by writing to the Department of Employee Trust Funds, P.O. Box 7931, Madison, WI 53707-7931.
/~--'" .,..-- --- ----=:J
NOT~~ - 5UPPLEM~ENSION PLAN:

'-. - _.,,-" ~. -
In addition to the pension benefits described In Note 8 the District has early retirement provisions for certain early
retirement employees.
Plan Description. The School District of Marinelle prOVides a single employer defined benefit supplemental pension
plan to eligible teachers and administrators. Eligibility is established and amended through collective bargaining with
the recognized bargaining agent for teachers. Currently, eilgible teachers can retire and receive the pension
supplement after the attainment of age 55 and the completion of 10 years of service, if hired before 2002-2003 and
15 years of service If hired after. Eligible administrators can retire and receive benefits after attainment of age 55 and
10 years of service.
,I "There are 158 activl! and 73 retired employees in the plan as of June 30,2010. The pension benefit is equal to 20%
--1" of the final annual salary if an employee retires at age 55, 25% of the final annual salary if an employee retires at age
56, and 30% of the final annual salary if an employee retires at age 57, payable twice a year, and terminating five
years from Ihe date of retirement. If an eligible retiree dies before receiVing the full amount of their benefit the
emaining benefit will be paid to their named beneficiary.
k
,
Funding Policy. Payments under the plan are made on a pay-as-you 90 basis. There are no Invested plan assets
accumulated for payment of future benefits. The general fund is used for funding of all pension/retirement benefits.
The employer makes all contributions.
35
June 30, 2010
NOTE 9 - SUPPLEMENTAL PENSION PLAN (Continued):
Annual Pension Cost and Net Pension Obligation. The Districrs annual pension cost and net pension obligation for
the current year is:
Component Amount
Annual Required Contribution $ 627,480

Interest on Net Pension Obligation
Annual Pension Cost (Expense) 627,480
Pension Payments made (306,002)
Adjustment to annual required contributions (321,478)
Change in Net Pension Obligation
Net Pension Liability - Beginning of Year
Net Pension Liability - End of Year $
The annual required contribution for the current year was determined as part of the June 30, 2008 actuarial valuation
using the unprojected unit credit actuarial cost method. The actuarial assumptions included (a) 6% discount rate,
which is the yield on 30, A-rated municipal securities and (b) projected salary increases at 4%. Mortality, disability
and retiremenl rates are from the Wisconsin Retirement System Study for public schools.
The actuarial methods and assumptions used, include techniques that are designed to reduce the effect of short-term
volatility in acluarial liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations. The unfunded actuarial accrued liability is being amortized as a level dollar amount of projected payroll.
The remaining amortization period at June 30, 2010 is 27 years.
Trend Information. The District's annual pension cost, the percentage of the annual pension cost contributed to the
plan, and the net pension obligation for 2010 and the preceding two years were:
NOTE 10 - POST EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS:
Plan Description. The School District of Marinette operates a single-employer retiree benefit plan that provides post
employment health, dental, long-term care and life insurance benefrts to eligible employees and their spouses.
Eligible teachers can retire and receive the olher post employment benefits after attainment ot age 55 and completion
of 10 years of service jf hired before the 2002-2003 school year, and 15 years if hired after. Eligible administrators
must attain the age 55 and must have completed 10 years of service except for the superintendent which must
complete 8 years. Teachers and administrators are not eligible if hired after JUly 1, 2005. Secretaries, maintenance
and para-professional employees must have been hired prior to July 1, 1998, attained the age of 57 and have
completed 10 years of service to be eligible. Food service employees must have been hired prior to July 1, 1999 and
attained the age of 60 and have completed 10 years of service to be eligible.
36
June 30, 2010
NOTE 10 • POST EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (Continued):
There are 200 active and 93 retired members in the plan. The benefits vary by retiree class. The benefits are
payable for administrators and teachers untO they reach the age of Medicare eligibility. For all other classes II is the
earlier of 5 years or Medicare eligibility.
Funding Policy. The District has $950,452 of invested plan assets accumulated for payment for future benefits at
June 30, 2010. The employer makes all contributions, and for the year ended June 30, 2010 the District contributed
$2,737,628 to the Trust.
Annual OPES Cost and Net OPES Obligation. The District's annual other post employment benefit (OPES) cost
(expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined. The
ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and
amortize any unfunded actuarial liabilities over a period not to exceed thirty years. The following table shows the
components of the District's annual OPES cost for the year, the amount actually contributed to the plan, and changes
in the District's net OPES obligation.
Government
Activities
Annual required contributions $ 2,828,991
Interest on net OPES 6,231
Adjustment to annual required conlribulions (51.750)
Annual OPES cost (expense) 2,783,472
Contributions made (2,737,628)
Change in net OPES obligations 45,844
OPES obligation at beginning of year 155169
OPES obligation at end of year $ 201,613
The District's annual OPES cost, the percentage of the annual OPES cost contributed to the plan and the net OPES
obligation for 2010 and the proceeding two years is:
Fiscal Percentage of
Year Annual AnnualOPEB NetOPEB
Ended OPEBCost Cost Contrl buted Obligation
6130/08 $ 2,983,192 102.6% $ 527,332
6/30/09 $ 2,914,277 112.7% $ 155,769
6130/10 $ 2,783,472 98.4% $ 201,613
Funded Status and Funding Progress. As of July 1, 2008, the most recent actuarial valuation date for the period July
1, 2008 through June 30, 2009, the District's unfunded actuarial accrued tlability (UAAL) was $29,476,007. The
annual payroll for active employees covered by the plan in the actuarial valualion for the 2008 - 2009 fiscal year was
$6,901,741 for a ratio of the UAAL to covered payroll of 427.1%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future, such as assumptions aboutluture terminations, mortality,
and healthcare cost trends. Actuarially determined amounts are subject to continual revision as actuarial results are
compared with past experience and new estimates are made about the future. The schedule of funding progress and
the schedule of employer contributions, presented as required supplementary information following the notes to the
financial statements, presents multi-year trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial liabilities or benefits.
37
June 30,2010
NOTE 10 • POST EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (Continued):
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the
substantive plan (the plan as understood by the employer and plan members) and include the types of benefits
provided althe time of each valuation and the hislorical pallern of sharing of benefit costs between the employer and
plan members to that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with
the long-term perspective of the calculations.
In the June 20, 2009 actuarial valuation, the unprojected unit credit actuarial cost method was used. The actuarial
assumplion included a rate of 4% to discount expected liabilities to the valuation date, which is based on the plan
being funded in an irrevocable employee benefit trust invested in a long-term fixed income portfolio. The initial
heallhcare trend rate was 14% for medical, reduced by decrements to an ultimate rate of 6% for medical after 9
years. Mortality, disebllity and retirement rates are from the Wisconsin Retirement SYStem Experience Study for
public schools.
NOTE 11· LIMITATION ON SCHOOL DISTRICT REVENUES:
Wisconsin statules limit the amount of revenues school districts may derive from general school aids and property
taxes unless a higher amount has been approved by a referendum.
This limitation does not apply to revenues needed for the payment of any general obligation debt service (including
refinanced debt) authorized by either of the following:
• A resolution of the school board or by a referendum prior to August 12, 1993.
• A referendum on or after August 12, 1993.
NOTE 12 • CONTINGENCIES AND COMMITMENTS:
The District has a service agreement for food service 10 be provided to the District in 2010-11. Expected costs are
$793,296.
The District has a contract for services with CESA #8 to provide special education services for the 2010-11 school
year. Expected costs are $468,215.
The District has a service agreement for cleaning services to be provided 10 the District in 2010-11. Expected costs
are $379,630.
The District received federal and state grants for specific purposes that are subject to review and audit by the grantor
agencies. Such audits could lead to requests for reimbursements to the grantor agency for expenditures disallowed
under terms of the grants. The District believes such disallowances, if any, would be immaterial.
From time to time the District is involved in legal actions and claims, most of which normally occur in governmental
operations. In the opinion of District management, these Issues, and any other proceedings known to exist at
June 30, 2010, are not likely to have a material adverse impact on the Distrlcl's financial position.
38
June 30. 2010
NOTE 13 - RISK MANAGEMENT:
The District is exposed to various risks of loss related to torts; theft of. damage to, or destruction of assets; errors and
omissions; injuries to employees; employee health claims; unemployment compensation claims; and natural
disasters. The District insures through commercial insurance companies for all risks of loss. Settled claims from
these risks have not exceeded Insurance coverage in the past three fiscal years.
NOTE 14 - EFFECT OF NEW ACCOUNTING STANDARDS ON FUTURE FINANCIAL STATEMENTS:
The Governmental Standards Board (GASB) approved Statement No. 54. This Statement expands the
classifications of fund balance from reserved and unreserved to nonspendable. restricted, comm~ted. assigned, and
unassigned; and revises the definitions of special revenue, capital projects, and debt service funds, GASa Statement
54 Fund Balance Reporting and Governmental Fund Type Deffnltlons is effective for the School District of Marinette
in 2011. The District has not yet determined the effect of this Statement on its financial statements.
39
\
REQUIRED SUPPLEMENTARY INFORMATION

,
Required Supplementary Information
Post Employment Benefits
June 30, 2010
OTHER POST RETIREMENT BENEFITS

Schedule of Funding Progress
Actuarial UAALas a
Actuarial Accrued Unfunded Percentage
Actuarial Value of Liability AAL Funded Covered of Coverad
Valuation Assets (AAL) (UAAL) Ratio Payroll Payroll
Data (a) (b) (b·a) (alb) (c) ((b·a)Ic)
7/1/2006 $27,130,012 $26,342,333 2.90% $ 6,644,596 384.9%
7/1/2006 $29,476,007 $28,525,555 3,22% $ 6,901,741 413.3%
SChedule of Employer Contributions
Year Annual
Ended Required Percentage
June 30 Contribution Contributed
2006 $ 2,946,906 103.9%
2009 $ 2,662,637 114.0%
2010 $ 2,826,991 96.6%
PENSION
Schedule of Funding Progress
Actuarial UAALase
Actuarial Accrued Unfunded Percentage
Actuarial Value of Liability AAL Funded Covered of Covered
Valuation Assets (AAL) (UAAL) Ratio Payroll Payroll
Date (a) (b) (b·a) (alb) (c) ((b-a)/c)
7/1/2006 $ 3,233,402 $ 3,233,402 0.00% $ 6,844,598 47.2%
7/112006 $ 6,069,069 $ 6,069,069 0,00% $ 6,901,741 88.2%
Schedule of Emplover Contributions
Year Annual
Ended Required Percentage
June 30 Contribution Contributed
2006 $ 310,601 100.0%
2009 $ 305,166 100.0%
2010 $ 627,460 100.0%
40
Schedule of Revenues, Expenditures and Changes in Fund Balance
BUdget and Actual
General Fund
Budgeted Amounte
Original Final
REVENUES:
Property Taxes $ 6,987,690 $ 6,334,219
Other Local Sources 136,813 84,813
Interdislrict Sources 96,630 95,790
State Sources 13,834,717 14,485,229
Federal Sources 548,523 573,392
Olher Sources 60,661 60,661
Total Revenues 21,681,034 21,651,956
EXPENDITURES:
Instruction:
Regular Instruction 9,591,365 9,537,305
Physlcallnstruclion 635,375 635,835
Other Instruction 711,547 718,658
Support Services:
General Administration Services 467,171 449,216
Building Administration Services 1,410,042 1,411,531
Business Services 628,331 584,881
Operations and Maintenance 1,989,373 1,851,806
Central Services 674,856 483,856
Insurance 257,100 207,836
Principal and Interest 140,000 43,000
Other Support Services 13,580 20,039
Total Support Services 7,586,476 6,979,259
Non-Program Transaction.:
Open Enrollment 648,266 530,525
Non-Pr09ram Transactions 4,200 4,276
EXCESS OF REVENUES OVER EXPENDITURES 1,975,661 2,722,424
OTHER FINANCING USES:

Transfer to Special Education Fund (2,317,152) (2,395,515)
NET CHANGE IN FUND BALANCE (341,491) 326,909

FUND BALANCE - BEGINNING OF YEAR 5,451,557 5,451,557
FUND BALANCE· END OF YEAR $ 5,110,066 $ 5,778,466
See Accompanying Notes to Required Supplementary Information

41
Variance with
Final Budget
Favorable
Actual (Unfavorable)
$ 6,337,637 $ 3,416
91,052 6,239
97,470 1,680
17,581 (271)
13,743,807 (741,422)
1,231,844 658,452
175,181 114,520
21,694,572 42,616
9,415,984 121,321
531,575 (7,901)
636,126 (291)
719,960 (1,302)
11,303,645 111,627
673,001 61,447
525,949 75,431
442,824 6,392
1,373,661 37,870
551,846 33,035
1,747,213 104,593
557,870 33,396
438,748 45,108
175,533 32,303
42,719 281
20,689 (650)
6,550,053 429,206
522,259 8,266
18,250 (13,974)
540,509 (5,708)
18,394,207 535,325
3,300,365 577,941
(2,118,368) 277,147
1,181,997 855,088
5,451,557
$ 6,633,554 $ 855,088
See Accompanying Noles to Required Supplementary Inform,lion

42
»

Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Special Educalion Fund
BUdgeted Amounts
Original Final
REVENUES:
Interdistrict Sources $ $
Stata Sources 914,991 914,991
Federal Sources 989,252 985,846
Other Sources 160 160
Total Revenues 1,987,142 1,983,736
EXPENDITURES:
Instruction:
Speciallnstruclion 2,957,894 2,982,532
Other Instruction 3,954 3,954
SUPPORT SERVICES:
Business Administration Services 240 7,600
Total Support Services 1,100,009 1.132,096
NON-PROGRAM TRANSACTIONS:
Open Enrollment 25,992
Non-Program Transaction 213,437 213,437
DEFICIENCY OF REVENUES
UNDER EXPENDITURES (2,317,152) (2,395,515)
OTHER FINANCING SOURCES:

Transfer from General Fund 2,317,152 2.395,515
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR

FUND BALANCE - END OF YEAR $ $
See Accompanying Notes to Required Supplementary Information

43
Variance with
Final Budget
Favorable
Actual (Unfavorable)
$ 19,874 $ 19,874
84,738 1,999
933,546 18,555
987,219 1,373
162 2
2,025,539 41,803
17,860 3,380
2,868,961 113,571
885 3,069
2,887,706 120,020
467,714 49,330
324,394 17,630
7,026 574
260,931 4,497
1,060,065 72,031
25,992
170,144 43,293
196,136 43,293
4,143,907 235,344
(2,118,368) 277,147
2,118,368 (277,147)
$ $
See Accompanying Notes 10 Required Supplementary Information

44
Notes to Required Supplementary Information
June 30, 2010
BUDGETS AND BUDGETARY ACCOUNTING:
Operating budgets are adopted each fiscal year for all governmental funds in accordance with Seelion 65.90 of the
Wisconsin Statutes using the bUdgetary accounting basis prescribed by the Wisconsin Department of Public
Instruelion. The legally adopted budget and budgetary expenditure control is exercised at the two-digit subfunction
level in the General Fund and at the function level for all other funds. Reported budget amounts are as originally
adopted or as amended by School Board resolution.
The District follows these procedures in establishing the bUdgetary data:
a. Based upon requests from district staff, district administration recommends budget proposals to tha school
board.
b. Tha school board prepares a proposed budget including proposed expenditures and the means of finencing
them for the July 1 through June 30 fiscal year.
c. Pursuant to a public budget hearing, the school board may make alterations to the proposed budget.
d. Once the school board (following the public hearing) adopts the budget, no changes may be made In the
amount of tax 10 be levied or in the amount of the various appropriations and the purposes of such
appropriations, unless authorized by a 213 vote of the enlire school board.
e. Appropriations lapse at year-end unless authorizad as a carryover by the school board. The portion of fund
balence representing carryover appropriations is reported as a reserved fund balance.
BASIS OF ACCOUNTING:
The bUdget Is prepared on the same modified accrual basis of accounting as applied to the governmental funds in
the financial statements.
EXCESS OF ACTUAL EXPENDITURES OVER BUDGET IN INDIVIDUAL FUNDS:
The following funds had an excess of actual expenditures over budget for the year ended June 30, 2010:
Excess
Individual Fund Expenditures
General Fund
Vocational Instruction $ 7,901
Physical Instruction 291
Other Instruction 1,302
Other Support Services 650
Non-Program Transactions 13,974
45
SUPPLEMENTARY INFORMATION
Combining Balance Sheet
Nonmajor Governmental Funds
As of June 30, 2010
Special Revenue
Trust Food Service
ASSETS:
Cash and Investments $ 42,260 $ 46,116
Accounts Receivable 555 1,934
Due from Other Governments 22,809
Inventory 28,535
TOTAL ASSETS $ 42,815 $ 99,394
LIABILITIES AND FUND BALANCES:

Liabilities:
Accounts Payable $ 1,020 $ 36,408
Deferred Revenues 6,280
TOTAL LIABILITIES 1,020 42,688
FUND BALANCES:
Reserved 41,795 56,706
TOTAL LIABILITIES AND FUND BALANCES $ 42,815 $ 99,394
46
Total Nonmajor
Governmental
TEACH Funds
$ 11,683 $ 100,059
2,489
22,809
28,535
$ 11,683 $ 153,892
$ $ 37,428
6,280
43,708
11,683 110,184
$ 11,683 ,;:;$===1~5~3':,;;89;;;2=
47
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30,2010
Special Revenue
Trust Food Service
REVENUES
Local Sources $ 25,054 $ 363,860
State Sources 22,886
Federal Sources 524,526
Total Revenues 25,054 911,272
EXPENDITURES:
Instruction:
Regular Instruction 6,816
Support Services:
Pupil Services 1,007
Operations and Maintenance
Pupil Transportation 780
Central Services 1.919
Food Service Operations 950,318
Total Support Services 10,006 950.318
Total Expenditures 19,260 950,318
NET CHANGE IN FUND BALANCES 5,794 (39,046)
FUND BALANCES - BEGINNING OF YEAR 36,001 95,752
FUND BALANCES - END OF YEAR $ 41,795 $ 56,706
48
Total NonmaJor
Governmental
TEACH Funds
$ $ 388,914
22,886
524,526
936,326
6,816
1,007
1,217 1,217
780
8,258 10,177
950,318
9,475 969,799
9,475 979,053
(9,475) (42,727)
21,158 152,911
$ 11,683 $ 110,184
49
Schedule of Changes in Assets and Liabilities
Pupil Activily Fund
Balance Balance
7/1/09 Additions Deductions 6/30/10
ASSETS:
Cash $ 102,164 $ 286,272 $ 282,533 $ 105,903
LIABILITIES;
Due to Student Organizations:
Middle School $ 27,671 $ 96,720 $ 96,669 $ 27,722
High School 74,493 189,552 185,864 78,181
TOTAL LIABILITIES $ 102,164 $ 286,272 $ 282,533 $ 105,903
50
ADDITIONAL REPORTS
115 E. Fifth Street • Shawano, WI 54166
(715) 526-9400 • Fax (715) 524-2599
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MAlTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Board of Education
Marinette. Wisconsin
We have audited the accompanying financial statements of the governmental activ~ies, each major fund and the
aggregate remaining fund Information of the School District of Marinette (District) as of and for the year ended June
30, 2010, which collectively comprise the District's basic financial statements and have Issued our report thereon
dated November 29, 2010. We conducted our audit In accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financiat audits contained in Government Auditing
Standards, Issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the District's Internal control over financial reporting as a basis
for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not
for the purpose of expressing an opinion on the effectiveness of the District's intemal control over fmanclal reporting.
Accordingly, we do not express an opinion on the effectiveness of the District's intemal control over financial
reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this seclion and was not designed to identify all deficiencies in internal control over financial reporting
that might be significant deficiencies or material weaknesses. We did not identify any deficiencies In internal
control over financial reporting that we consider to be material weaknesses, as defined above. However, we
Identified certain deficiencies In Internal control over financial reporting described in the accompanying schedule of
findIngs as flfldings #t 0-1 and #10-2 that we consider to be significant deficiencies In internal control over financial
reporting. A significant deficlancy Is a deficiency, or a comblnallon of deficiencies, in Internal controi that is less
severe than a material weakness, yet Important enough to merit allentlon by those charged with governance.
51

www.kerberrose.com
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, reguiations, contracts and grant
agreements. noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However. providing an opinion on compliance with those provisions was not an objective of our
audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other mailers that are required to be reported under Government Auditing Standards.
We noted certain mailers that we reported to the management of the School District of Marinelle in a separate letter
dated November 29,2010.
The District's responses to the findings identified in our audit are described In the accompanying schedule of findings.
We did not audit the District's responses and. accordingly, we express no opinion on them.
This report is intended solely for the information of the School Board, management, awarding agencies. pass-through
entities and the Wisconsin Department of Public Instruction and is not intended to be. and should not be, used by
anyone other than these specified parties.
,v",\I. 0Mt- F(t "..: r .5 G

~~\'i'RV;R~E &A~~~.
November 29.2010
52
Certified Pubiic Accountants
115 E. Fifth Street· Shawano, WI 54166
(715) 526-9400 • Fax (715) 524-2599
REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A

DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON
INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH
OMB CIRCULAR A·133 AND STATe SINGLe AUDIT GUIDeLINeS

Compliance
We have audited the School District of Marinette's (District) compliance with the types of compliance requirements
described in the OMB Circular A-133 Compfiance Supplement and the State Single Audit Guidelines that could have
a direct and material effect on each of its major federal and state programs for the year ended June 30, 2010. The
Dlstricfs major federal and state programs are identined in the summary of auditors' resulls section of the
accompanying schedule of findings. Compliance with the requirements of laws, regulations. contracts, and grants
applicable to each of its major federal and state programs Is the responsibility of the District's management. Our
responsibility is \0 express an opinion on the District's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; OMS Circular A-133, Audits of Siales, Local Governments, and Non-Profif
Organizations; and Stale Single Audit Guidelines. Those standards, OMS Circular A-133 and the Guidelines require
that we plan and perform the audit to obtain reasonable assurance aboul whether noncompliance with the types of
compliance requirements referred 10 above that could have a direct and material effect on a major federal or state
program occurred. An audit includes examining, on a test basis, evidence about the Districfs compliance with those
requirements and performing such other procedures as we considered necessary in the circumstances. We believe
that our audit provides a reasonable basis for our opinion. Our audit does not prOVide a legal determination of the
District's compliance with those requirements.
In our opinion, the District compiled, in ali material respects, with the reqUirements referred to above that are
applicable to each of its major federal and stale programs for the year ended June 30, 2010.
Internal Control Over Compliance
Management of the District is responsible for estal1lishing and maintaining effective internal control over compliance
with the requirements of laws; regulations, contracts, and grants applicable to federai and state programs. In
planning and performing our audit, we considered the District's internal control over compliance with the requirements
that could have a direct and material effect on a major federal or slate program to determine the auditing procedures
for the purpose of expressing our opinion on compliance, and to test and report on Internal control over compliance in
accordance with OMS Circular A-133 and State Single Audit Guidelines, but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance.
53

www.kerberrose.com
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent or
detect and correct noncompliance with a type of compliance requirement of a federal or slate program on a timely
basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies in
internal control over compliance. such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal or state program will not be prevented, or detected and corrected, on a timely
basis.
Our consideration of internal control over compliance was for the limited purpose described In the first paragraph of
this sacllon and was not designated to idantify all deficiencies in internal control over compliance that might be
deficiencies, significant deficiencies or materiai waaknesses. We did not identify any deficiencies in internal control
over compliance that we consider to be matarial weaknesses, as defined above.
This report is intended solely for the information and use of the Board of Education, management, federal awarding
agencies, pass-through entllies, and the Wisconsin Department of Public Instruction and is not intended to be and
should not be used by anyone other than these specified parties.
:K~Q~~~S.L
November 29, 2010
54
FEDERAL AND STATE AWARDS SECTION
Schedule of Expenditures of Federal Awards
Awarding Agencyl Federal Pass Program

Award Descrlptionl Catalog Through or Award
Pass-Through Agency Number Number Amount
U.S. DEPARTMENT OF AGRICULTURE
CHILD NUTRITION CLUSTER:
Wisconsin Department of Public Instrucllon
Non-Cash Assistance (Commodities):
Food Distribution
July 1, 2oo9-June 30, 2010 10.555 714-001 $ NIA
Cash Assistance:
School Breakfast Program
JUly 1, 2oo8-June 30, 2009 10.553 717-546 NIA
July 1, 2009·June 30, 2010
School Lunch Program
July 1, 2008-June 30, 2009 10.555 717-547 NIA
July 1, 2009-June 30, 2010
Speciel Milk Progrem for Children
July 1, 2oo8-June 30, 2009 10.556 717·548 N1A
July 1, 2oo9·June 30, 2010
Summer Food Service Program for Children
July 1, 2008·June 30, 2009 10.559 717-586 NIA
July 1, 2009-June 30. 2010
ARRA- EQUIPMENT ASSISTANCE GRANTS
FOR SCHOOL FUND AUTHORITIES
Wisconsin Department of Public Instruction
July 1, 2009-June 30, 2010 10.579 730-815 2,908
TOTAL U.S. DEPARTMENT OF AGRICULTURE
U.S. DEPARTMENT OF EDUCATION
TITLE I, PART A CLUSTER:
Wisconsin Departmenl of Public Instrucllon
Title I Grants to Local Education Agencies
July 1, 2008·June 30, 2009 84.010 751-141 266,534
July 1, 2009-June 30,2010 289,224
ARRA-Tille I Grents to Locel Education Agencies
July 1, 2009·June 30, 2010 84.389 751-816 212,576
SPECIAL EDUCATlON CLUSTER:
Wisconsin Department of Public Inslrucllon
PL94-192 IDEA Flow Through
July 1, 2008·June 30, 2009 84.027 730·341 443,296
July 1, 2009-June 30, 2010 462,192
PL 94-142 IDEA Discretionary
July 1, 2009-June 30, 2010 84.027 730·342 28,005
PL 99-457 Preschool Entitlement
July 1, 2008-June 30, 2009 84.173 730-347 13,631
July 1, 2009-June 30, 2010 13,739
ARRA - IDEA Flow Through
July 1. 2009-June 30, 2010 84.391 730-813 493,778
ARRA - IDEA Preschool Entillement
July 1, 2009-June 30, 2010 84.392 730-819 23,344
The accompanying notes are an integral pari of this schedule.

55
Accrued Receivable Grantor Accrued Receivable
7/1/09 Reimbursement Expenditures 6/30/10
$ $ 58,414 $ 58,414 $
10,789 10,789
78,696 61,131 2,435
40,727 40,727
337,124 346,414 9,290
432 432
2,752 2,860 108
7,641 7,641
21,623 32,799 10,976
2,908 2,908
59,589 561,306 524,526 22,809
65,739 65,739
169,768 275,262 85,514
69,043 98,254 29,211
68,081 86,081
192,769 413,004 220,235
15,998 19,793 3,795
441 441
9,300 12,996 3,696
336,766 386,758 49,992
12,612 13,877 1,265
The accompanying notes are an integral part of this schedule.

56
Schedule of Expenditures of Federal Awards (Continued)
Awarding Agencyl Federal Pass Program

Award Descrlptlonl Catalog Through or Award
Pass-Through Agency Number Number Amount
U.S. DEPARTMENT OF EDUCATION (Continued)
CARL PERKINS VOCATlONAL EDUCATION ACT
CESA#8
July 1, 200ll-June 30, 2009 84.048 Unknown $ 17,670
July 1, 2009-June 30, 2010 17,670
CARL PERKINS VOCATIONAL EOUCA TION ACT
Northwest Technical College
July 1, 2009·June 30, 2010 84.048 Unknown 2,385
SAFE AND DRUG-FREE SCHOOLS AND
COMMUNITIES
July 1, 200ll-June 30, 2009 84.186 730-329 6,700
July 1, 2009-June 30, 2010 7,789
INNOVATIVE EOUCATlON PROGRAM STRA TEGIES
Wisconsin Department of Public Instrucllon
July 1, 2008-June 30, 2009 84.298 752-157 79
TITLE 1/-0 EOUCA TlON TECHNOLOGY
July 1, 2009-June 30, 2010 84.318 730-328 3,003
IMPROVING TEACHER QUALITY STATE GRANT

July 1, 2008-June 30, 2009 84.367 730-365 133,064
July 1, 2009-June 30, 2010 154,769
ARRA-STATE FISCAL STABILIZA TlON FUND-
EOUCATlON SERVICES
Wisconsin Department of PUblic Instruction
July 1. 2009-June 30, 2010 84.394 718·810 NIA
TOTAL U.S. DEPARTMENT OF EDUCATION
U.S. DEPARTMENT OF HEALTH
AND FAMILY SERVICES
Passed through Wisconsin
Department of Health Services
Medicaid School Based Services
July 1, 2008-June 30, 2009
July 1, 2009-June 30,2010 93.778 NIA NIA
TOTAL FEDERAL ASSISTANCE
The accompanying notes are an Integral part of this schedule.

57
Accrued Receivable Grantor Accrued Receivable
7/1/09 Reimbursement Expenditures 6130/10
$ 5,537 $ 5,537 $ $
14,514 17,581 3,067
2,385 2,385
7,515 7,515
2,740 7,135 4,395
79 79
1,128 1,128
33,448 33,448
73,701 97,994 24,293
749,666 749,666
200,840 1,872,102 2,097,853 426,591
8,736 8,736
123,222 138,791 15,569
$ 269,165 $ 2,565,366 $ 2,761,170 ~$~===4;;;64~,9;;;69;.,

58
Schedule of State Financial Assistance
Awarding Agencyl State

Awarding Descriptlonl 1.0. Accrued Receivable
Pass-Through Agency Number 7101/09
ENTITLEMENT PROGRAMS:
MAJOR STATE PROGRAMS:
Handicapped Pupils and
School Age Parents:
Internal District Program - DPI 255.101 $
Pupil Transportation - OPI 255.107
General Equalization - DPI 255.201 235.521
TOTAL MAJOR PROGRAMS 235,521
NONMAJOR STATE PROGRAMS:

State Lunch - DPI 255.102
School Breakfast Program - DPI 255.344
WI Morning Milk Program - DPI 255.109
Library Aid - DPI 255.103
Alternative Education Grant - DPI 255.330 27.937
Mentoring Grant for Initial Educators - DPI 255.355
Handicapped Aid - Categorical - CESA #8 255.101
Tuition Payments By State - DPI 255.401
Aids in Lieu of Taxes - WI Dept of Natural
Resources 370,503
Exempt Computer Aid - WI Dept. of Revenue N/A 73,224
TOTAL NONMAJOR PROGRAMS 101,161
TOTAL WISCONSIN DEPARTMENT OF PUBLIC

INSTRUCTION AND STATE ASSiSTANCE $ 336.682
The accompanying notes are an integral part of this schedule.

59
State Accrued Receivable
Reimbursements Expenditures 6/30/10
$ 933,546 $ 933,546 $
44,273 44,273
13,408,051 13,412,856 240,126
14,385,870 14,390,475 240,126
9,061 9,061
7,571 7,571
6,254 6,254
74,002 74,002
82,658 86,850 32,129
1,500 1,500
84,738 84,738
22,665 22,665
25,814 25,814
73,224 76,047 76,047
387,487 394,502 108,176
$ 14,773,357 $ 14,784,977 $ 348,302

60
Notes to the Schedules of Expenditures of Federal Awards and State Financial Assistance
June 30, 2010
NOTE 1 • BASIS OF PRESENTATION:
The accompanying schedules of expenditures of federal awards and slate financial assistance include the federal
and state grant activity of the School District of Marinette and are presented on the modified accrual basis of
accounting. The information in these schedules is presented in accordance with the requirements of OMS Circular A-
133, Audits of States, Local Governments, and Non-Profit Organizations and the Slate Single Audit Guidelines.
Therefore, some amounts presented in these schedules may differ trom amounts presented in, or used in the
preparation of, the financial statements.
NOTE 2· SPECIAL EDUCATION AND SCHOOL AGE PARENTS PROGRAM:
2009 - 2010 eligible costs under the Slate Special Education Program are $2,963,977.
NOTE 3 - OVERSIGHT AGENCIES:
The District's federal oversight agency Is the U.S. Department of Education. The District's state cognizant agency is
the Wisconsin Department of Public Instruction.
61
Summary Schedule of Prior Year Audit Findings
SEGREGATION OF DUTIES - The District is aware of the lack of segregation of duties caused by the limited size of
its staff. Segregetion of duties in enhanced whenever possible and the Board of Education assumes an active roil
through monthly review of receipt and disbursement transactions and monthly financial statements.
Current Status - See current year finding #10-01.
FINANCIAL ACCOUNTING AND REPORTING - The District is aware that their staff does not have training to
prepare financial statements and related notes in accordance with GAAP. The District wiil rely on the assistance of
the auditors for preparation of the financial statements and related notes.
Current Status - See current year finding #10-02
62
Schedule of Findings
Section 1- Summary of Auditors' Results
Financial Statements
Type of auditors' report Issued: Unqualified

Internal control over financial reporting:
Significant deficiencies identified? Yes
Material weaknesses identified? No
Noncompliance material to the financial statements? No
Federal Awards
Internal control over major programs:

Significant defICiencies identified? No
Material weaknesses Identified? No
Type of auditors' report issued on compliance for major programs: Unqualified
Any audit findings disclosed that are required to be reported in accordance

with Circular A-133 Section .510(1)? No
Identification of major federal programs:
CFDANumber Name of Federal Program
10.553 School Breakfast Program

10.555 School Lunch Program
10.556 Special Milk Program for Children
10.559 Summer Food Service Program for Children
84.010 Title I Grants to Local Education Agencies
84.389 ARRA - Tille I Grants to Local Education Agencies
84.027 IDEA Flow-Thru
84.173 Preschool Enlltlement
84.391 ARRA - IDEA Flow-Through
84.392 ARRA - IDEA Preschool Entitlement
84.394 ARRA - State Fiscal Stabilization Fund - Education Services
93.778 Medicaid School Based Services
Dollar threshold used to distingUish between Type A and Type B

Programs $300,000
Audltee qualified as a low-risk auditee? No
State Awards
Internal control over major programs:

Significant deficiencies identified? No
Material weaknesses Identified? No
Type of auditors' report issued on compliance for major programs: Unqualified
Any audit findings disclosed that are reqUired to be reported in accordance

with the State Single Audit Guidelines? No
63
Schedule of Findings (Continued)
State Awards (Contlnuect)
Identification of major state programs:
State 1.0. Number Name of State Program

255.101 Handicapped Pupils and School Age Parents
255.201 General Equalization
255.107 Pupil Transportation
Section II - Financial Statement Findings
Significant Deficiencies
#1 0-1 Lack of SegregatIon of Duties
Criteria: During our audit, we noted that the District has limited staff which does not allow for the
proper segregation of duties.
Condition: Various functions of the District are performed by the same person.
Cause: Due to limited staff management is unable to segregate duties.
Effect: Because of the lack of segregation duties, unauthorized transactions could occur in the
District's operations.
Recommendation: The duties should be separated as much as possible and compensating controls
should be used to compensate for the lack of separation of duties. This includes the
Board relying on its knowledge of the District's operations.
Management's limited staff does make it difficult to implement a complete segregation of cash and
Response: transaction recording responsibilities. Recent office staff turnover has made it difficult
to properly segregate duties. Once the office is properly staffed management's intent is
to separate duties to reach an acceptable segregation of cash and transaction
recording responsibilities. The School Board also has complete access to all records
and receives monthly reports on all transactions for the month.
64
Schedule of Findings (Continued)
#10-2 Financial Accounting and Reporting
Criteria: Management is responsible for establishing and maintaining internal controls and for
the fair presentation of the financial position, change in net assets, and disclosures In
the financial statements, in conformity with U.S. Generaliy Accepted Accounting
Principles (GAAP).
Condition: During our audit, we noted that the internal control system does not Include a process
for preparing the annual audited financial statements and the related disclosures In
accordance with GAM'.
Cause: Management requested that Kerber, Rose and Associates assist in preparing a draft of
the audited financial statements, including the related footnote disclosures. The
outsourcing is a result of management's cost/benefit decision to use our accounting
expertise rather than incurring this internal resource cost.
Effect: Although the auditors are preparing the financial statements and related footnotes,
management of the District thoroughly reviews them and accepts responsibitity for their
completeness and accuracy.
Recommendation: We recommend that management continue to make this decision on a cost/benefil

basis.
Management's Management wOI continue to base its decision on a cost/benefit basis.

Response:
Section III • Federal or State Award Findings
There were no findings for federal or state awards.
65
Corrective Action Plan
For the Year Ended June 3D, 2010
SEGREGATION OF DUTIES - The District is aware of the lack of segregation of duties caused by the limited size of
its staff. Segregation of duties is enhanced whenever possible and the Board of Education review monthly the receipt
and disbursement transactions and financial statements.
FINANCIAL ACCOUNTING AND REPORTING • The District is aware that their staff does not have training to
prepare financial statements and related notes in accordance with generally accepted accounting principles. The
District will rely on the assistance of the auditors for preparation of the financial statements and related notes.
66

Marinette, Wi 54143: Marineite School District

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RECEIVED

February 24, 2011

Freedom of Information Act Officer

Under the Freedom for Information, Public Act 442 of 1976, I am

Naturally I will reimburse the District for all reasonable expenses.

I would like two things:

1) Copy of the Kerber Rose Report referred to in the

I can be contacted at 715-923-0804 if you have any questions.

Annual Financial Report

June 30, 2010

June 30, 2010

INDEPENDENT AUDITORS' REPORT 1-2

MANAGEMENT'S DISCUSSION AND ANALYSIS 3-11

District-Wide Statement of Net Assets 12

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances -

Statement of Net Assets - Fiduciary Funds 20

Statement of Changes in Fiduciary Net Assets 21

Notes to Financial Statements 22-39

REQUIRED SUPPLEMENTARY INFORMATION:

Table of Contents (Continued)

June 3D, 2010

Combining Balance Sheet- Nonmajor Governmental Funds 46-47

FEDERAL AND STATE AWARDS SECTION:

KERBER, ROSE & ASSOCIATES, S.C.

INDEPENDENT AUDITORS' REPORT

To the Board of Education

Members of the American and Wisconsin Institutes of Certified Public Accountants

To the Board of Education

OVERVIEW OF THE FINANCIAL STATEMENTS

Dlstrlct·wide financial statements

Fund financial statements

Fund flnanclal statements (Continued)

Notes to the financial statements

Required supplementary information

The District as a Whole

Summary of Net Assets

Total Revenues 27,249,215 100.0% 26,684,995 100.0%

Total Expenses ).-t'25,402,868

Change in Net Assets $ 1,846,347 $ 1,221,445

Key elements of this change are as follows:

The following chart illustrates the District's sources of revenues by percentages:

The following chart Illustrates the District's expenses by percentages:

Expense chart is based on all district-wide funds combined.

ORIGINAL REVISED BUDGET 2009-2010

Revenues $ 21,681,034 $ 21,651,956 $ (29,078) $ 21,694,5n $ 42,616 0.2%

Budgetary Highlights (Continued)

CAPITAL ASSET AND DEBT ADMINISTRATION

• Asset acqUisitions for governmental activities totaled $202,187.

Outstanding Long-Term Obligations

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

TOTAL ASSETS 26,985,950

TOTAL LIABILITIES 21,537,493

TOTAL NET ASSETS $ 5,448,457

See Accompanying Noles

See Accompanyln9 Notes

LIABILITIES AND FUND BALANCES:

TOTAL LIABILITIES AND

See Accompanying Notes

$ 743,587 $ 100,059 $ 4,309,092

$ 363 $ 37,428 $ 216,241

$ 743,587 $ 153,892 $ 9,195,907

See Accompanying Notes