Town of Windham FINANCIAL OVERVIEW INSIDE Summary of Audit Results Presented By: Hank Farrah RUNYON KERSTEEN OUELLETTE INSIDE Summary of Audit Results General Fund - Fund Balances General Fund - Revenues General Fund - Expenditures Unassigned Fund Balance as a Percentage of Budget General Fund – Revenue Distribution (State and Local) General Fund – 2016 Expenditure Distribution General Fund – 2015 Expenditure Distribution About this presentation This presentation is intended as a tool to assist the Town Council and management in understanding its financial operating results. The information contained in this publication should be read in conjunction with the audited financial statements and related disclosures and should not be used for any other purposes without the expressed consent of RUNYON KERSTEEN OUELLETTE. Please contact us at 207-773-2986 or 1-800-486-1784 20 Long Creek Drive, South Portland, ME 04106

Town of Windham Financial Statement Opinion – Unqualified SUMMARY OF AUDIT RESULTS Financial Statement Opinion – Unqualified Report Required by Government Auditing Standards (GAS) No Material Weaknesses No Significant Deficiencies No Single Audit Required by Uniform Guidance Casey

Town of Windham General Fund – Fund Balance Observations: Assigned fund balances related to insurance refunds and laptop insurance payments, to be used for future technology purchases. Nonspendable in prior years represented the noncurrent portion of the amount due from the Town of China. Committed fund balance relates to the fuel reserve. Observations: Total Fund balance increased by $824,071 to $8,814,544 in the current year. See page 47 of the financial statements for breakdown of assigned fund balance.

Town of Windham GENERAL FUND - REVENUES Budget Actual Variance Taxes $ 30,076,764 $30,764,107 $687,343 Licenses and permits 324,568 370,173 45,605 Intergovernmental 1,297,703 1,332,429 34,726 Charges for services 539,000 580,893 41,893 Interest earned 120,000 152,062 32,063 Other revenues 848,766 910,053 61,287 Total revenues 33,206,801 34,109,718 902,917 Transfers from other funds 325,153 331,110 5,957 Utilization of prior year surplus and carry forwards 976,342 - (976,342) Total revenues and other sources $ 34,508,296 $ 34,440,828 $ (67,468) SUMMARY OF SIGNIFICANT VARIANCES Taxes exceeded budget due to higher-than-expected excise tax collections. Licenses and permits had better-than-expected collections of building permits and planning fees. Other revenue consisted of rescue reimbursement and miscellaneous revenues.

Town of Windham GENERAL FUND - EXPENDITURES Budget Actual Variance Administrative services $ 3,240,434 $ 3,278,432 $ (37,998) Public safety 2,439,738 2,324,180 115,558 Fire/rescue services 1,817,683 1,764,163 53,520 Public works 3,142,229 2,879,284 262,945 Recreation services 281,071 269,370 11,701 Education 17,699,917 - County tax 1,216,178 Other 1,779,771 1,597,436 182,335 Debt service 200,625 Capital outlay 2,690,650 2,387,172 303,478 Total expenditures and financing uses $ 34,508,296 33,616,757 891,539 SUMMARY OF SIGNIFICANT VARIANCES Administrative services was over budget due to unexpected legal fees. Public safety expenditures were under budget due to lower-than-anticipated payroll costs for PD. Public Works was under budget due to savings related to highway maintenance compensation, contracted services, and heating/vehicle fuel. Capital outlay expenditures were under budget due to the timing of projects, which will carry over to the next fiscal year.

Town of Windham General Fund – Unassigned Fund Balance as a Percentage of Budget On the next slide, we have compared RSU 18’s unassigned fund balance as a percentage of budget to other MSADs/RSUs.

Town of Windham GENERAL FUND – Revenue Distribution (State and Local) Observations: Intergovernmental revenues have slowly declined over the past five years.

Town of Windham GENERAL FUND – 2016 Expenditure Distribution

Town of Windham GENERAL FUND – 2015 Expenditure Distribution