1. Financial Audit Presentation Year Ended June 30, 2016
Greene, Finney & Horton, CPAs
ANDERSON COUNTY SCHOOL DISTRICT ONE
Financial Audit Presentation Year Ended June 30, 2016

2. HIGHLIGHTS Unmodified opinion
2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
HIGHLIGHTS
Unmodified opinion
General Fund – fund balance increased $2.7M; the District budgeted no increase.
Local option sales tax - $6.8M
20% Debt Service - $1.3M
80% Capital Projects - $5.5M

3. 2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
OPINION
The School District’s responsibility:
Effective internal controls
Financial statements
GF&H responsibility:
Opinion-reasonable assurance that financial statements are materially correct
Issued unmodified opinion
BEST OPINION THE SCHOOL DISTRICT CAN RECEIVE

4. 2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
General Fund
Total fund balance increased $2.7M to $14.1M
Nonspendable fund balance of $197k for prepaids and inventory

5. 2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
General Fund
Unassigned fund balance is $13.9M, which is 22.5% of 2016 actual expenditures and 21.0% of 2017 budgeted expenditures
GFOA recommends a minimum of 16.7% (two months)

6. 2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
Major Reasons To Maintain An Adequate Fund Balance:
Cash flow through second half of calendar year; property taxes are cyclical
Significant emergencies and unanticipated expenditures
Flexibility for discretionary funding needs
Potential for better interest rates on debt issues (can save the School District money)
To cover potential shortfalls from the state (a) due to budget cuts or (b) as a result of the change in legislation (i.e. Act 388)
Planned future capital expenditures or significant repairs and maintenance
Fast growing area with student enrollment – capital expenditures & increased staffing

7. 2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
General Fund Revenues:
$62.7M for 2016:
$18.0M from property taxes
$43.9M from the state gov’t
$728k for all other revenues
$3.1M (5.2%) increase from 2015
$572k increase in property taxes
$2.3M increase in state gov’t
$1.6M (2.5%) over budget
$964k over budget in state gov’t
$303k over budget in property taxes
$293k over budget in other revenues
GENERAL FUND REVENUES

8. GENERAL FUND EXPENDITURES
2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
General Fund Expenditures:
GENERAL FUND EXPENDITURES
$61.7M for 2016:
$38.6M in instruction
$21.3M in support services
$1.8M in other expenditures
$1.9M (3.3%) increase from 2015
$550k increase in instruction (salaries & benefits)
$380k increase in support services (salaries & benefits)
$988k increase in capital outlay
$1.1M (1.7%) under budget
Mainly due to lower budgeted salaries and benefits in support services

9. 2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
Debt Service
The Debt Service Fund had a $3.5M fund balance; County must collect enough revenue for District to make debt payments; $1.4M in local option sales tax
Capital Projects
The Capital Projects Fund had a $5.2M fund balance:
$137k unspent bond proceeds
$5.0M unspent local option sales tax
Special Revenues
$2.0M of carryover at year end
Restricted in how funds can be used
Approximately 30 special programs and 21 EIA programs
Food Service had a fund balance of $1.8M, increase of $43k

10. 2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
District-Wide (GASB #34)
Net Position – ($13.4M)
$39.4M net investment in capital assets
$9.7M restricted
($62.5M) unrestricted
Revenues - $92.1M
Expenses - $83.6M
- $4.8M is non-cash depreciation
District-Wide (GASB #34)
Assets - $151.5M
$116.4M is capital assets
$28.3M is cash and investments
$6.8M in receivables other assets
Deferred Outflows of Resources - $6.7M
Deferred pension charges
Liabilities - $170.6M
$78.0M is long-term debt.
Accounts payable and other accrued liabilities of $8.8M
Net pension liability - $83.8M
Deferred Inflows of Resources - $967k
Deferred pension credits

11. 2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
GASB 68 and GASB 71: Accounting & Financial Reporting for Pensions– implemented in 2015:
As noted last year, the District is required to record its pro-rata portion of the net pension liability associated with the SCRS and PORS pension plans in its government-wide financial statements -
Net pension liability (including related deferred inflows / outflows of resources) at 6/30/16 was $78.1M
Increase in the net liability of $1.2M for fiscal 2016
Bond rating agencies have already taken the impact of these statements into consideration
NO IMPACT on the General Fund or other governmental funds
The District will continue to report expenditures in the amount of the contributions as required by the South Carolina Public Employee Benefit Authority
Expect the employer and employee rates to continue to increase

12. 2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
Other Items of Note:
Total capital assets were $116.4M at 6/30/16 – decrease of $2.6M from 6/30/15:
Current year additions of $2.2M
Equipment and technology $1.1M
Building and improvements $701k
Land $372k
Depreciation in the current year of $4.8M
$5.0M of local option sales tax available for capital projects as of June 30, 2016

13. 2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
Other Items of Note:
Total debt outstanding as of 6/30/16 were $74.7M – decrease of $5.8M from 6/30/15
Principal payments of $5.8M for 2016
Total debt service payments for 2017 on outstanding debt are expected to be $8.1M ($5.5M for principal and $2.7M for interest)
The District has $5.0M bonded debt subject to the 8% limit of $15.4M and thus has the capacity to issue $10.4M of additional debt without a referendum

14. 2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
Accounting Update:
Future Significant Changes in Accounting Principles:
Beginning in FY 2017, tax abatement disclosures will be added to the School District’s notes.
Beginning in FY 2018, OPEB liabilities associated with the State plan are to be recognized similar to how the pension liability was recognized in the current year.

15. 2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
Compliance
No findings, significant deficiencies, or material weaknesses were noted.
Single Audit was required for 2016
USDA
No issues noted
Management Letter
Required communications to management and those charged with governance – one management letter comment regarding school bookkeepers and the lack of segregation of duties

16. 2016 FINANCIAL AUDIT Anderson County School District One ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene, Finney & Horton, CPAs
Summary
Unmodified opinion on the financial statements from GF&H
Strong financial condition as of June 30, 2016