2. Solanco School District 2016-17 Audit January 22, 2018

3. Audit Overview Audit in Accordance with:
US Generally Accepted Auditing Standards
Government (Yellow Book) Auditing Standards
Uniform Guidance
Audit of period 7/1/16 - 6/30/17
Overview of Audit Process
Audit Findings: No significant deficiencies or material weaknesses are reported

4. Governmental Activities (98%) Business-type Activities (2%)
GASBS No. 68, Pensions
PSERS Net Pension Liability (NPL)
49,556,827,000
SSD’s Proportionate Share (%)
0.1667%
SSD’s Proportionate Share ($)
82,579,000
Governmental Activities (98%)
Business-type Activities (2%)
Total
Net Pension Liability
80,927,420
1,651,580
82,579,000
Additional Pension Expense (in addition to contributions paid)
2,317,925
47,305
2,365,230

5. PSERS Results of Operations
Fiscal Year
June 30, 2017
June 30, 2016
Member Contributions
1,013,847,000
989,266,000
Employer Contributions
3,832,773,000
3,189,510,000
Total Contributions
4,846,620,000
4,178,776,000
Total Deductions
(6,518,706,000)
(6,405,443,000)
Gap
(1,672,086,000)
(2,226,667,000)
Investment Income (10.14% and 1.11%)
4,995,362,000
473,206,000
Change in Net Position
3,323,276,000
(1,753,461,000)

6. Governmental Activities Historical Analysis
June 30, 2015
June 30, 2016
June 30, 2017
Current Assets
21,992,309
25,672,295
28,395,516
Noncurrent Assets and Def. Outflows
38,991,241
38,439,441
53,018,245
Total Assets
60,983,550
64,111,736
81,413,761
Current Liabilities
5,949,405
7,378,210
7,759,925
Noncurrent Liabilities and Def. Inflows
66,911,938
72,640,278
85,163,125
Total Liabilities
72,861,343
80,018,488
92,923,050
Net Position
(11,426,206)
(10,854,579)
(11,509,289)

7. General Fund Results For Fiscal Year Ended
2015
2016
Actual
2017 – Original Budget
Local Revenues
29,814,012
30,968,739
32,280,588
31,985,848
State Revenues
17,781,054
18,311,720
19,527,031
19,174,309
Federal Revenues
2,202,989
2,062,082
2,039,305
2,113,000
Total Revenues
49,798,055
51,342,541
53,846,924
53,273,157
Instructional Services
29,082,969
31,099,335
33,066,257
34,351,609
Support Services
14,568,451
15,179,515
15,664,747
16,040,697
Operation of Noninstructional Services
925,695
992,917
1,014,167
1,059,629
Total Expenditures
44,577,115
47,271,767
49,745,171
51,451,935
Fund Transfers & Other Financing Uses
(4,854,745)
(4,355,077)
(3,596,823)
(3,895,000)
Change in Fund Balance
366,195
(284,303)
504,930
(2,073,778)
Change in Reserve for Inventory
12,052
(27,196)
(8,803)
-0-
Ending Fund Balance
6,058,310
5,746,811
6,242,938
3,673,033

8. GASB No. 54 – Fund Balance Reporting and Government Type Definitions
General Fund
Capital Project Fund
Nonspendable
(Not in spendable form)
300,061
-0-
Restricted
(External)
Committed
(Board)
325,000
Assigned
(Board or Delegate)
2,377,452
11,103,697
Unassigned
(Residual GF balance)
3,240,425
Total
6,242,938

9. General Fund Expense Comparison

10. 2016-17 General Fund Expenses

11. Special Education Analysis
Total Expense
7,089,596
8,420,491
9,157,820
Total Enrolled Students
486
553
592
Total Expense Per Enrolled Student
14,588
15,227
15,469
% Increase in Expense
2.01%
18.77%
8.76%
% Increase in Enrolled Students
0.00%
13.79%
7.05%

12. Capital Project Fund Fund Balance June 30, 2015 June 30, 2016
Revenues:
Investment Income
7,430
17,021
54,826
Other
360
310
185
Expenditures:
Capital Outlay
(2,517,386)
(1,600,107)
(1,674,430)
Transfer In:
1,847,038
4,362,962
3,600,000
Net Change
(662,558)
2,780,186
1,980,581
Beginning Fund Balance
7,005,488
6,342,930
9,123,116
Ending Fund Balance
11,103,697

13. Capital Project Fund – Building Committee Projects
Fund Balance
June 30, 2017
Ending Fund Balance
11,103,697
Total Smith Middle School Projects
(12,075,000)
Total Swift Middle School Projects
(6,500,000)
Total Clermont Elementary Projects
(4,916,782)
Total Other Building Committee Projects
(400,000)
Additional Future Capital Project Funding Needs
(12,788,085)

14. Cafeteria Fund Analysis
Operating Revenues
659,796
660,234
614,563
Non-operating Revenues
984,637
1,037,614
1,072,621
Revenues
1,644,433
1,697,848
1,687,184
Salaries and Benefits
691,567
681,037
686,871
Supplies
837,643
791,340
778,314
Other Expenses
73,583
111,693
99,039
Total Expenses
1,602,793
1,584,070
1,564,224
Transfers In (Out)
-0-
Change in Net Position
41,640
113,778
122,960

15. Internal Service Funds
Changes in Net Position
Additions and Transfers In
4,797,090
4,552,441
5,091,562
Expenses and Transfers Out
4,625,134
4,644,959
5,079,355
Change in Net Position
171,956
(92,518)
12,207
Composition of Net Position
June 30, 2015
June 30, 2016
June 30, 2017
Hospitalization
3,143,296
3,063,313
3,081,184
Unemployment Compensation
163,734
151,199
145,535
Net Position - Total
3,307,030
3,214,512
3,226,719

16. Funding Sources for Health Insurance

17. 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
Note 19- Defined Benefit Pension Plan
Note 20- Contingencies and Commitments
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

18. Schedule of Expenditures of Federal Awards
Expenditures = Grant Revenue
School Lunch/ Breakfast Program
913,070
942,500
Title I
1,748,450
1,702,608
Improving Teacher Quality
249,204
241,890
Special Education (via IU 13)
580,306
672,011
Other
7,170
13,794
Total Federal Grant Expenditures
3,498,200
3,572,803

19. 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

20. GASB 75 – Pending Change
GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions were issued June 2015.
The provisions of this statement are effective for the School’s 2018 financial statements and will require changes in the School’s accounting for other postemployment benefits (OPEB). The more significant of these changes are:
An OPEB liability will be recorded for the portion of the present value of projected benefit payments that is attributed to past service.
Projected benefit payments will be discounted to their actuarial present value using a tax-exempt, high quality municipal bond rate which is likely lower than the current rate, resulting in an increase in the OPEB liability.
Most changes in the net OPEB liability will be recorded as expense in the period of change.
The School will be required to report its proportionate share of the premium assistance plan provided through PSERS.
Additional footnote disclosures and required supplementary information will be included in the School’s financial statements as a result of GASB Statement No. 75.

21. 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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