Annual Financial and Compliance Audit Board of Trustees Presentation January 21, 2014 Sheldon Independent School District

Report of Independent Auditors Audit conducted in accordance with Governmental Auditing Standards Unmodified or Clean Opinion Highest Level of assurance to be given on financial statements 2

Key Financial Elements Total Assets- $246.6 M Capital Assets - $179.1 M Deferred Outflows - $1.6 M Total Liabilities - $187.3 M Bonds Payable - $178.9 M Total Net Position (Equity) - $60.9 M 3

Revenues totaled $65.0M – Increase of $1.5M from previous year State aid accounted for 24.7% of general fund revenues 4 General Fund Financial Elements

Tax revenues total $47.1M – Increase of $3.5M from previous year – No change in M&O tax rate – Current tax collection rate of 98.9% – Total tax collection rate of 99.9% 5 General Fund Financial Elements

Expenditures totaled $63.6M – Increase of $1.4M from previous year Instruction expenditures increased by $2.2M General Fund Financial Elements 6

Increase to fund balance: $1.4M Total fund balance : $21.7M General fund unassigned fund balance : $19.2 M – 30.1 % of general fund expenditures 7

Internal Controls and Compliance Major programs tested: – Child Nutrition Cluster Unmodified opinion issued on compliance with major programs tested No material weakness or significant deficiencies reported in internal controls 8

Required Communications Significant Accounting Estimates – State Funding Accrual – Allowance for Uncollected Taxes – Depreciation expense on Capital Assets No Difficulties Encountered in Performing Audit No Disagreements with Management 9

Required Communications Management Corrected all Known Misstatements Management Consultations with Other Independent Accountants 10

Questions 11