SOUTHGATE COMMUNITY SCHOOLS AUDIT REPORT June 30, 2014

SOUTHGATE COMMUNITY SCHOOLS Independent Auditors Report “In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of Southgate Community School District as of June 30, 2014, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.”

SOUTHGATE COMMUNITY SCHOOLS General Fund Balance Sheet This Year Last Year Assets $10,525,149 $12,201,099 Liabilities $14,508,131 $17,107,817 Fund Deficit $(3,982,982) $(4,906,718)

SOUTHGATE COMMUNITY SCHOOLS GENERAL FUND Budget Actual Variance Favorable/(Unfavorable) Revenue $42,740,832 $42,747,799 $6,967 Expenditures $42,340,587 $41,824,063 $516,524 Excess Revenue (Expenditures) $400,245 $923,736 $523,491

SOUTHGATE COMMUNITY SCHOOLS GENERAL FUND 2014 2013 Variance Favorable/(Unfavorable) Revenue $42,747,799 $44,173,273 $(1,425,474) Expenditures $41,824,063 $45,830,334 $4,006,271 Excess Revenue (Expenditures) $923,736 $(1,657,061) $2,580,797

SOUTHGATE COMMUNITY SCHOOLS Fund Balance Perspective June 30, 2014 Million

SOUTHGATE COMMUNITY SCHOOLS General Fund: Ending Fund Balance Year Ended June 30, (in Thousands)

SOUTHGATE COMMUNITY SCHOOLS General Fund Revenue By Source $ 42,747,799

SOUTHGATE COMMUNITY SCHOOLS General Fund Expenditures By Function $ 41,824,063

SOUTHGATE COMMUNITY SCHOOLS Where The Money Goes Total Operating Expenditures of $41,824,063

SOUTHGATE COMMUNITY SCHOOLS STATE AID FUND FY 2013-14 Source: State of Michigan House Fiscal Agency

SOUTHGATE COMMUNITY SCHOOLS Foundation Allowance Per Pupil 2013-2014

SOUTHGATE COMMUNITY SCHOOLS Retirement Plan Rates (MPSERS) Fiscal Year Ending September 30,

SOUTHGATE COMMUNITY SCHOOLS Audit Procedures Internal Control Independent Confirmation Examination of Documents Inventory Observations Analytical Analysis Asset/Liability Approach Peer Review