Solanco School District Audit January 6, 2014

Audit Overview Audit in Accordance with: US Generally Accepted Auditing Standards Government (Yellow Book) Auditing Standards US OMB Circular A-133 (Single Audit) Audit of period 7/1/12- 6/30/13 Solanco Business Office drafts financial statements Overview of Audit Process Audit Findings: No significant deficiencies or material weaknesses are reported

Governmental Activities Historical Analysis June 30, 2011June 30, 2012June 30, 2013 Current Assets16,578,60817,603,46521,349,010 Noncurrent Assets43,225,23141,231,84839,761,248 Total Assets 59,803,83958,835,31361,568,212 Current Liabilities7,868,3388,296,0919,494,997 Noncurrent Liabilities11,270,0228,347,4075,268,257 Total Liabilities 19,138,36016,643,49814,763,254 Net Position40,665,47942,191,81546,347,004 Debt to Equity Ratio

Relationship: Capital Assets vs. Debt

General Fund Results For Fiscal Year Ended Actual2013 – Original Budget Local Revenues24,827,52826,268,50728,287,07726,216,318 State Revenues15,242,90716,129,85116,407,10416,813,636 Federal Revenues4,281,2152,005,9452,432,3982,586,319 Total Revenues44,351,65044,404,30347,126,57945,616,273 Instructional Services27,091,06625,962,94926,498,79329,676,601 Support Services12,938,33312,816,45112,927,98513,994,332 Operation of Noninstructional Services928,161871,287856,296894,350 Total Expenditures40,957,56039,650,68740,283,07444,565,283 Fund Transfers & Other Financing Uses (3,705,420)(4,830,222)(6,809,135)(3,173,000) Change in Fund Balance(311,346)(76,608)34,370(2,122,010) Change in Reserve for Inventory41,31959,922(38,746)-0- Change in Accounting Principal15, Ending Fund Balance5,354,4075,337,7215,333,3453,215,711

GASB No. 54 – Fund Balance Reporting and Government Type Definitions

General Fund Expense Comparison

General Fund Expenses

Debt Service Fund Fund BalancesJune 30, 2011June 30, 2012June 30, 2013 Revenue and Transfers In: Investment Earnings211 Transfer In3,336,0903,420,0733,412,974 Expenditures and Other: Principal2,780,0002,960,0003,065,000 Interest559,200458,575346,475 Other4,0001,500 Bond Issuance-0- Bond Refunding: -0- Net Change(7,108)(1)-0- Beginning Fund Balance7,11021 Ending Fund Balance211

Debt Service Requirements

Capital Project Fund Fund BalanceJune 30, 2011June 30, 2012June 30, 2013 Revenues: Investment Earnings14,35410,1356,783 Other Expenditures: Capital Outlay519,334478,029823,538 Transfer In:264,450628,9893,400,000 Net Change(240,120)161,2802,583,245 Beginning Fund Balance 4,154,8343,914,7144,075,994 Ending Fund Balance3,914,7144,075,9946,659,239

Cafeteria Fund Analysis Operating Revenues910,186873,734780,247 Non-operating Revenues769,575911,447900,393 Revenues1,679,7611,785,1811,680,640 Salaries and Benefits791,216764,666738,564 Supplies810,268837,683818,678 Other Expenses93,64677,244119,628 Total Expenses1,695,1301,679,5931,676,870 Transfers In (Out)65,36297, Change in Net Position49,993203,1243,770

Internal Service Funds Additions4,647,4015,034,8024,210,932 Expenses and Transfers Out4,428,3044,626,6984,183,223 Change in Net Position219,097408,10427,709 June 30, 2011June 30, 2012June 30, 2013 Hospitalization2,282,4312,627,2582,681,386 Unemployment Compensation142,074205,351178,932 Net Position - Total2,424,5052,832,6092,860,318 Composition of Net Position Changes in Net Position

Health Benefit Expense

Other CAFR Components Management’s Discussion and Analysis Notes to Financial Statements Note 1- Summary of Significant Accounting Policies Note 11- Long-term Liabilities Note 15- Operating Lease Note 17- Fund Balances Supplemental Schedules for additional analysis Single Audit (compliance audit of the School District’s federal grants) and related reports Introductory Section and Statistical Section are Unaudited

Schedule of Expenditures of Federal Awards Expenditures = Grant Revenue School Lunch/ Breakfast Program805,935792,056 Title I1,523,7141,730,714 Improving Teacher Quality261,401270,184 Striving Readers (KTO)7,691248,323 Special Education (via IU 13)576,851619,952 Other 26,296 7,863 Total Federal Grant Expenditures3,201,8883,669,092

Schedule of Expenditures of Federal Awards Report on Internal Control over Financial Reporting No Material Weaknesses or Significant Deficiencies Identified Report on Compliance with Requirements No Compliance Findings

This presentation is intended solely for the information and use of the management of Solanco School District and the School Board and is not intended to be and should not be used by anyone other than these specified parties.

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