Presented by David R. Youngstrom, CPA Presented on October 20, 2015 Troy School District Presented by David R. Youngstrom, CPA Presented on October 20, 2015

Balance Sheet – Governmental Funds June 30, 2015

Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2015

General Fund Revenues and Other Sources - $136,589,446 June 30, 2015

General Fund Expenditures and Other Uses - $137,267,824 June 30, 2015

General Fund Expenditures and Other Uses - $137,267,824 June 30, 2015

Instructional Expenditures Comparison

Per Pupil Analysis of General Fund Revenues and Expenditures

Student Enrollment Trend

General Fund Unassigned Balance

Governance Letter Required Communication Internal Control Matters Material Weakness – Payroll Rate Changes Significant Deficiency – Unearned Revenue Significant Deficiency – Payroll Accrual

Governance Letter (continued) Management Comments Fund Balance Policy Contract and Wage Approval Expenditure Approval Timely Bank Deposits Outstanding Check Policy Personnel Activity Reports Title I School Selection Title I Budget Reporting Title I Proportionate Share Inventory

Single Audit Major Funds Tested: Single Audit Compliance Findings Nutrition Cluster Special Education Cluster Title I Temporary Assistance to Needy Families Single Audit Compliance Findings Cash management – Nutrition Student eligibility – Nutrition and Title I Allowable costs – Special Education and Title I Budget overage – Title I Proportionate share – Title I

Future Challenges State economic/political condition Fringe benefit costs Retirement rate increases Uncertain state revenue sources Special education costs Unfunded pension liability – over $177mm New accounting standards – GASB #75

Thank you! David R. Youngstrom, CPA (800) 968-0010 davyou@yeoandyeo.com