Presentation of Audited Financial Statements June 30, 2011 Public Schools of Petoskey Presentation of Audited Financial Statements June 30, 2011

Independent Auditors’ Report Unqualified Opinion – Financial statements are fairly presented, in all material respects, in conformity with Generally Accepted Accounting Principles.

Audit Report Sections Management‘s Discussion and Analysis – pages 3-10 Basic Financial Statements – pages 11-32 Supplementary Information– pages 33-55 Single Audit Act Compliance – pages 56-65

District-Wide Financial Statements Total capital assets, net of depreciation (page 26) - $46,505,769 Capital asset additions - $990,613 Depreciation expense - $1,703,392 Total long term debt (page 27) - $17,537,697 includes Bonds payable Land contracts Early retirement incentives Compensated absences Repayments during fiscal 2011 - $1,994,195 Payments due during fiscal 2012 - $1,973,046

GASB 54 – Fund Balances and Special Revenue Fund Classifications New fund balance classifications Nonspendable Restricted Committed Assigned Unassigned Special revenue fund classification

Fund Financial Statements General Fund (Pages 13-17) Fund Balance - $2,876,553 Increase from the prior year of $212,979 compared to final budgeted decrease of $147,002 Ending fund balance is 11.5% of one years expenditures. Includes the Athletic Fund Food Service (Pages 39-40) Fund Balance - $104,708 Increase of $32,957

Financial Statement Pages 56-65 Single Audit The District expended $1,522,590 in Federal Awards Unqualified opinion on compliance related to Federal programs No findings or questioned costs related to compliance with the requirements of Federal Awards Financial Statement Pages 56-65

General Fund Expenditures

General Fund Revenues Compared to Expenditures

General Fund Fund Balance Compared to Expenditures

General Fund Budget to Actual Comparison

General Fund Revenue Per Pupil

General Fund Expenditures Per Pupil

General Fund Operating Expenditures Per Pupil

General Fund Instructional Expenditures Per Pupil

Thank you for choosing Rehmann Any Questions? Again, I want to say thanks to the Board for your business and thanks to management and to the staff for being well-prepared for the audit. Are there any questions?