1. Finance & Investment Committee June 2016 and 4th Quarter Results Post Audit (Draft)
September 14, 2016
FY Q4 Results

2. Post-Audit Financial Results June 2016 and 4th Quarter
Summary Results – Post Audit
Audit Adjustments
Key Activities
Post Audit Operating Statements
FY 2015/2016 Current Period/YTD
Pro-Forma Operating Results Statement
Year-to-Year Comparison FY 15/16 and FY 14/15
F&I Presentation (Pre-Audit Package)

3. Financial Summary June/Fourth Quarter (Post-Audit)
Year-End Audit
Upward Audit Adjustment $204K
No Material Deficiencies
Minor recommendations for improved control
Q4 Operating results favorable to plan
June Sales driven by low margin computer Sales
Total Year Results:
Sales - $36,636,428
Operating Income (Before G&A/Invest.) - $5,567,370
Net Contribution - $211,439
Skewed by $1.2M of Non-Cash Activity
Actuarial reports for PERS and Retirement Medical

4. FY 2015/2016 Audit Adjustments
Non-Cash adjustments for various account true-ups.

5. FY 2015/2016 June/Q4 Key Activities
$291,720 PERS Unfunded Liability Posting
Actuarial per GASB 68 – 6/30/15 measurement date
Total Unfunded Liability of $4,198,843
Post Retirement Actuarial assessment
Recorded Liability Increased $880,337 (non-cash)
Overall Benefit Obligation up to $8,203,225 from $7,177,651
Physical Inventory 1.2% shrinkage
$41K ($51K retail) write-down vs $142K reserve
Incentive Comp Accrual - $300,000
PERS Invoice of $228,312 paid in July. Revised asset update to 6/30/15 per Pooled Misc Report
- Inventory reserve at $142K
Post Retirement net includes $500K contribution.
Personnel Committed recommendation.

6. FY2015/2016 Operating Statement June 2016 & Fourth Quarter Summary

7. Operating Statement Summary June 2016 Year-to-Date Post-Audit Draft

8. FY 2015/2016 Pro-Forma Operating Results
Excludes day-to-day operational decisions including minor Board approved actions such as small donations

9. FY2015/2016 Operating Statement June/YTD Detail (Post-Audit)

10. Operating Statement Summary June 2016 Year-to-Year

11. Finance & Investment Committee June 2016 and 4th Quarter Results
Pre-Audit
September 14, 2016
FY Q4 Results

12. FY 2015/2016 Fourth Quarter Financial Results
Summary Results
Key Activities
Financial Summary/Operating Statements
Actuals vs Budget
Pro-Forma
Year-Over-Year Comparison
Investments
Capital Expense Status
Financial Statements
Year-over-Year comparison
Campus Contributions

13. Financial Summary June/Fourth Quarter (pre-audit)
June and Q4 Operating results favorable to plan
Sales driven by low margin computer Sales
Reported Net Contribution skewed by Non-Cash Activity
Actuarial reports for PERS and Retirement Medical
Results subject to change pending Audit results
September 13, review scheduled

14. FY 2015/2016 June/Q4 Key Activities
$291,720 PERS Unfunded Liability Posting
Actuarial per GASB 68 – 6/30/15 measurement date
Total Unfunded Liability of $4,198,843
Post Retirement Actuarial assessment
Recorded Liability Increased $880,337 (non-cash)
Overall Benefit Obligation up to $8,203,225 from $7,177,651
Physical Inventory 1.2% shrinkage
$41K ($51K retail) write-down vs $142K reserve
Incentive Comp Accrual - $300,000
Campus A/P and A/R reconciliation
Independent Year-end Audit in Progress
PERS Invoice of $228,312 paid in July. Revised asset update to 6/30/15 per Pooled Misc Report
- Inventory reserve at $142K
Post Retirement net includes $500K contribution.
Personnel Committed recommendation.

15. FY2015/2016 Operating Statement June 2016 & Fourth Quarter Summary

16. Operating Statement Summary June 2016 Year-to-Date

17. FY2015/2016 Operating Statement June/YTD Detail (Pre-Audit)

18. FY 2015/2016 Pro-Forma Operating Results
Excludes day-to-day operational decisions including minor Board approved actions such as small donations

19. Year over Year Results Q4 Operating results trended similar to budget
Net Contribution variance skewed by PERS/FAS/Investments
Total Year Sales up 5.1%
Computer Store up 7.8%
Food Service up 12.5%
C-Stores flat at .2%
Bookstore down 2.8%
Non-Operational activities ($2.4M swing)
Investment down $325K from FY14/15
PERS/Retiree Medical up $2.7M this year

20. June and 4th Quarter Year-to-Year Comparison

21. Operating Statement Summary Total Year-to-Year Comparison June Y-T-D

22. Current Year Expenditures of $767,453
FY2015/2016 Capital Status
Current Year Expenditures of $767,453
$136,699 - Amazon Locker Contingency
Main Project budgeted in FY2016/2017
All other Major Projects near completion/completed
$165,172 - Camera Infrastructure
$148,060 - UDP Furniture/Walkway Repaint
$85,390 - Accounting System
$60,520 - POS Upgrade (PCI compliance)
Total year expenditures in line with May Budget estimate of $775,879

23. FY 2015/2016 Capital Expenditure Status
Low expenditures maintained Cash Reserves

24. Investment Results June Investments down by $16K
Market volatility throughout the year
Just 4 up months (after the Brexit Vote)
Total Year Investment loss of $231,520
Smith Barney down $225,931(3.4%)
SMIF down $6,714 (4.7%)
VEBA returned $25,237 (.46%)
Target 3.97% (CPI+3%)

25. Smith Barney Portfolio FY 2015/2016 Performance
Investment Portfolio down a cumulative $225,931or 3.4% for the year
Adjusted for $1.5M additional funding in Aug/Sept
Just 4 up months this year after the Brexit vote

26. Investment Portfolio History
Volatile year but steady growth over time.

27. SMIF Wells Fargo Portfolio FY 2015/2016 Performance
Investment Portfolio down a cumulative $6,714 or 4.7% for the year
Second half growth after early downturn

29. Cash/Investment Balance Trend (With VEBA-Off Balance Sheet)

30. Financial Statements Overview Investment Designation - June 2016
Cash/Investment balance $10,990,716
$28,293 reduction from last year
Major Cash Outlay
$500,000K contribution to VEBA Trust
$85,000 Bond Reduction
$195,533 PERS Unfunded Liability payment
$231,520 Investment Loss

31. Investment Designation Report June 2016
$231,520 Investment Loss
No Cash Increase for the year
- Net of VEBA, PERS & Investment loss

32. Financial Statements Overview Balance Sheet - June 2016
Asset & Liabilities down $230K from last year
Assets
Cash/Investments same per Cash Designation report
A/R Same at $1.7M
$500K is Athletic loan
Inventory up $300K – Deferred Campus Computer Sale
Net Fixed Assets down $300K
Liabilities
PERS/Post Retirement Medical up $800K
A/P down$1M – Reduction in Open invoices/Credits

33. Balance Sheet June 2016 (Pre-Audit)

34. Long Term Liabilities Trend
Potential GASB 68 PERS Impact ongoing
- 30 year pay down plan for unfunded liability

35. Financial Statements Overview Operating Cash Flow - June 2016
June was negative $576K
Budget was negative $748K
PERS & Post Retirement adjustment non-cash
Total Year Cash Flow of $1.1M

36. Cash Flow Statement June 2016

37. Campus Contribution Summary

38. Campus Contributions Donations & Partnership Detail

39. Campus Contributions Reimbursed Services & Capital Detail

40. Financial Reporting Formats
Monthly Operating Statements designed to capture information at it’s lowest level to measure departmental results and allow for prudent business decisions
Audited Financial Statement is presented in summary format and re-classify various accounts to conform with Campus roll-up.
Tax Return Restates certain Sales & Expenditures and extracts specific elements to conform with IRS reporting requirements
All GAAP compliant
Monthly A/R & A/P credits off-set to manage cash and payments
Interest Expense and costs allocated as appropriate to Divisions
Credit & Revenues do not get G&A allocation
G&A Allocated across Divisions to ensure overhead coverage
Audited Statements presented in a classical summary statement format
Reclassify A/R – A/P items especially with Campus since part of annual campus true-up.
Credit & Revenues restated to Sales and COG
Tax Return designed for taxable earning reporting. Although we’re a non-Profit another restatement