1. Swartz Creek Community Schools
Audit Results
June 30, 2016
Presented By:
Jennifer Watkins, CPA Principal

2. Responsibilities District
The district is responsible for the preparation and fair presentation of the financial statements in accordance with generally accepted accounting standards (GAAP); this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements.

3. Responsibilities Auditor
The auditor’s responsibility is to express opinions on the 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 Comptroller 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 from material misstatement.

4. Audit Procedures Understanding internal controls
Review of policies and procedures
Risk assessment
Substantive procedures
Analytical procedures
GASB 68 (MPSERS) testing
Unpredictability
Government Auditing Standards
Grant compliance testing
Other compliance testing
Financial statement preparation
Data Collection Form

5. Internal Control Evaluation
Audit Results
Internal Control Evaluation
No material weaknesses noted
No significant deficiencies noted
An opinion is not expressed on internal controls
Single audit
Compliance with Federal guidelines
Low risk auditee
Special Ed Cluster
Unmodified opinions
No material weaknesses or material noncompliance noted

6. Governance Letter Required communication Significant estimates
Ensured the estimates are reasonable and free from bias
Useful lives of property and equipment
Net pension liability and related deferred outflows and inflows of resources
Regulatory items
Uniform Grant Guidance
Early warning legislation
Uniform Budgeting and Accounting Act (UBAA)

7. Governance Letter Other required communications
No disagreements with management
No difficulties in performing the audit
No uncorrected misstatements
No significant audit adjustments

8. Audit Results Unmodified Opinion “Clean opinion”
School's financial records and statements are fairly and appropriately presented, and in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

9. Balance Sheet – Governmental Funds

10. Balance Sheet – Governmental Funds

11. Balance Sheet – Governmental Funds

12. Statement of Net Position – Capital Assets

13. Statement of Net Position – Long Term Debt

14. General Fund Comparison to Budget Year Ended June 30, 2016

15. General Fund Revenue (includes Transfers) Year Ended June 30, 2016

16. General Fund Expenditures (by function) Year Ended June 30, 2016

17. General Fund Expenditures (by object) Year Ended June 30, 2016

18. Ten Year Enrollment Trend Analysis

19. 10 Year Foundation Allowance Trend Analysis

20. General Fund Balance
* Unassigned category effective 2011-forward with adoption of GASB 54

21. General Fund Fund Balance
2016
2015
Fund Balance/Expenditures
6.9%
5.7%
Fund Balance/Unrestricted Revenues
8.4%
7.0%
budgeted fund balance use = $630,000
(26% of total fund balance)

22. MPSERS Rate History

23. Significant Upcoming Accounting Pronouncements
GASB Statements No. 74 and 75
Accounting and Financial Reporting for Post Employment Benefit Plans Other Than Pensions
District must record its proportionate share of the OPEB liability within the MPSERS Plan (similar to GASB68)

24. Future Challenges
State economic/political condition
Rising fringe benefit costs
Retirement rate increase
Eroding state revenue sources
Enrollment trends
OPEB – Rising healthcare costs
Net pension liability - $53 million
New accounting pronouncements
Early Warning Legislation

25. And to the Swartz Creek Community Schools
Thank you
To Jeff Hall, Jon Pechette, Marilyn Zerka, and the Business Office staff for their assistance during the audit.
And to the Swartz Creek Community Schools
Board of Education
Jennifer Watkins, CPA Mike Evrard, CPA