Finance & Investment Committee June 2016 and 4th Quarter Results Post Audit (Draft) September 14, 2016 FY 2015-2016 Q4 Results

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)

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

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

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.

FY2015/2016 Operating Statement June 2016 & Fourth Quarter Summary

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

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

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

Operating Statement Summary June 2016 Year-to-Year

Finance & Investment Committee June 2016 and 4th Quarter Results Pre-Audit September 14, 2016 FY 2015-2016 Q4 Results

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

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

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.

FY2015/2016 Operating Statement June 2016 & Fourth Quarter Summary

Operating Statement Summary June 2016 Year-to-Date

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

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

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

June and 4th Quarter Year-to-Year Comparison

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

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

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

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%)

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

Investment Portfolio History Volatile year but steady growth over time.

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

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

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

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

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

Balance Sheet June 2016 (Pre-Audit)

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

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

Cash Flow Statement June 2016

Campus Contribution Summary

Campus Contributions Donations & Partnership Detail

Campus Contributions Reimbursed Services & Capital Detail

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