2. Solanco School District 2013-14 Audit January 5, 2015

3. Audit Overview Audit in Accordance with: US Generally Accepted Auditing Standards Government (Yellow Book) Auditing Standards US OMB Circular A-133 (Single Audit) Audit of period 7/1/13- 6/30/14 Solanco Business Office drafts financial statements Overview of Audit Process Audit Findings: No significant deficiencies or material weaknesses are reported

4. Governmental Activities Historical Analysis June 30, 2012June 30, 2013June 30, 2014 Current Assets17,603,46521,349,01022,842,063 Noncurrent Assets41,231,84839,761,24838,761,504 Total Assets 58,835,31361,568,21261,603,567 Current Liabilities8,296,0919,494,9979,483,742 Noncurrent Liabilities8,347,4075,268,2572,583,932 Total Liabilities 16,643,49814,763,25412,067,674 Net Position42,191,81546,347,00449,535,893 Debt to Equity Ratio0.390.320.24

5. Governmental Activities Historical Net Position

6. Relationship: Capital Assets vs. Debt

7. General Fund Results For Fiscal Year Ended 201220132014 - Actual2014 – Original Budget Local Revenues26,268,50728,287,07728,630,34427,387,154 State Revenues16,129,85116,407,10417,136,12817,269,079 Federal Revenues2,005,9452,432,3982,625,7102,556,319 Total Revenues44,404,30347,126,57948,392,18247,212,552 Instructional Services25,962,94926,498,79328,469,24630,442,341 Support Services12,816,45112,927,98513,661,20614,077,637 Operation of Noninstructional Services 871,287856,296894,272919,384 Total Expenditures39,650,68740,283,07443,024,72445,439,362 Fund Transfers & Other Financing Uses (4,830,222)(6,809,135)(4,961,602)(3,538,000) Change in Fund Balance(76,608)34,370405,856(1,764,810) Change in Reserve for Inventory 59,922(38,746)(59,138)-0- Ending Fund Balance5,337,7215,333,3455,680,0633,568,535

8. GASB No. 54 – Fund Balance Reporting and Government Type Definitions

9. General Fund Expense Comparison

10. 2013-14 General Fund Expenses

11. Debt Service Fund Fund BalancesJune 30, 2012June 30, 2013June 30, 2014 Revenue and Transfers In: Investment Earnings112 Transfer In3,420,0733,412,9743,426,599 Expenditures and Other: Principal2,960,0003,065,0003,200,000 Interest458,575346,475225,100 Other1,500 Bond Issuance-0- Bond Refunding: -0- Net Change(1)-0-1 Beginning Fund Balance211 Ending Fund Balance112

12. Debt Service Requirements

13. Long-term Obligations July 1, 2013AdditionsReductionsJune 30, 2014 General Obligation Bonds 5,950,000-0-3,200,0002,750,000 Unamortized Bond Issue Premium 43,964-0-32,91711,047 Compensated Absences 879,95722,078103,505798,530 Retirement Bonuses502,55814,46555,820461,203 PSERS Unfunded Liability Not Yet OPEB Obligation1,272,056414,731206,2981,480,4849 Total8,648,535451,2743,598,5405,501,269

14. Other Debt Payments

15. Capital Project Fund Fund BalanceJune 30, 2012June 30, 2013June 30, 2014 Revenues: Investment Income10,1356,7834,995 Other185-0-185 Expenditures: Capital Outlay(478,029)(823,538)(1,197,505) Transfer In: 628,9893,400,0001,538,574 Net Change 161,2802,583,245346,249 Beginning Fund Balance 3,914,7144,075,9946,659,239 Ending Fund Balance 4,075,9946,659,2397,005,488

16. Cafeteria Fund Analysis 2011-122012-132013-14 Operating Revenues873,734780,247718,317 Non-operating Revenues911,447900,393953,631 Revenues1,785,1811,680,6401,671,948 Salaries and Benefits764,666738,564697,306 Supplies837,683818,678762,505 Other Expenses77,244119,62881,430 Total Expenses1,679,5931,676,8701,541,241 Transfers In (Out)97,536-0- Change in Net Position203,1243,770130,707

17. Internal Service Funds 2012-132013-14 Additions4,210,9324,473,849 Expenses and Transfers Out4,183,2234,199,093 Change in Net Position27,709274,756 June 30, 2013June 30, 2014 Hospitalization2,681,3862,962,951 Unemployment Compensation178,932172,123 Net Position - Total2,860,3183,135,074 Composition of Net Position Changes in Net Position

18. Funding Sources for Health Insurance

19. Other CAFR Components Management’s Discussion and Analysis Notes to Financial Statements Note 1- Summary of Significant Accounting Policies Note 11- Long-term Liabilities Note 15- Operating Lease Note 17- Fund Balances Note 20 – Contingencies and Commitments Supplemental Schedules for additional analysis Single Audit (compliance audit of the School District’s federal grants) and related reports Introductory Section and Statistical Section are Unaudited

20. Schedule of Expenditures of Federal Awards Expenditures = Grant Revenue2012-132013-14 School Lunch/ Breakfast Program792,056842,045 Title I1,730,7141,828,907 Improving Teacher Quality270,184251,301 Striving Readers (KTO)248,323366,178 Special Education (via IU 13)619,952545,805 Other 7,863 17,251 Total Federal Grant Expenditures3,669,0923,851,487

21. Schedule of Expenditures of Federal Awards Report on Internal Control over Financial Reporting No Material Weaknesses or Significant Deficiencies Identified Report on Compliance with Requirements No Compliance Findings

22. This presentation is intended solely for the information and use of the management of Solanco School District and the School Board and is not intended to be and should not be used by anyone other than these specified parties.

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