2. Solanco School District 2014-15 Audit January 25, 2016

3. 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 7/1/14 - 6/30/15
Solanco Business Office drafts financial statements
Overview of Audit Process
Audit Findings: No significant deficiencies or material weaknesses are reported

4. GASBS No. 68, Pensions Effects the full-accrual financial statements
Government-Wide
Enterprise Fund (Food Service)
5 Pages of Footnote Disclosures
3 Pages of Required Supplementary Information

5. Governmental Activities Business-Type Activities
GASBS No. 68, Pensions
Implementation by Prior Period Adjustment of Equity
Governmental Activities
Business-Type Activities
Total
Beginning Net Position,
Original
49,535,893
564,037
50,099,930
Effect of GASBS 68
(62,148,997)
(1,268,347)
(63,417,344)
Beginning Net Position, Restated
(12,613,104)
(704,310)
(13,317,414)

6. Governmental Activities (98%) Business-type Activities (2%)
GASBS No. 68, Pensions
PSERS Net Pension Liability (NPL)
39,580,717,000
SSD’s Proportionate Share (%)
0.1654%
SSD’s Proportionate Share ($)
65,466,506
Governmental Activities (98%)
Business-type Activities (2%)
Total
Net Pension Liability
64,157,176
1,309,330
65,466,506
Additional Pension Expense (in addition to contributions paid)
1,556,592
31,767
1,588,359

7. Governmental Activities Historical Analysis
June 30, 2013
June 30, 2014
June 30, 2015
Current Assets
21,349,010
22,842,063
21,992,309
Noncurrent Assets
39,761,248
38,761,504
38,991,241
Total Assets
61,568,212
61,603,567
60,983,550
Current Liabilities
9,494,997
9,483,742
5,949,405
Noncurrent Liabilities
5,268,257
2,583,932
66,911,938
Total Liabilities
14,763,254
12,067,674
72,861,343
Net Position
46,347,004
49,535,893
(11,426,206)

8. Relationship: Capital Assets vs. Debt

9. General Fund Results For Fiscal Year Ended
2013
2014
Actual
2015 – Original Budget
Local Revenues
28,287,077
28,630,344
29,814,012
28,970,020
State Revenues
16,407,104
17,136,128
17,781,054
17,804,520
Federal Revenues
2,432,398
2,625,710
2,202,989
2,343,640
Total Revenues
47,126,579
48,392,182
49,798,055
49,118,180
Instructional Services
26,498,793
28,469,246
29,082,969
31,299,699
Support Services
12,927,985
13,661,206
14,568,451
14,608,836
Operation of Noninstructional Services
856,296
894,272
925,695
954,201
Total Expenditures
40,283,074
43,024,724
44,577,115
46,862,736
Fund Transfers & Other Financing Uses
(6,809,135)
(4,961,602)
(4,854,745)
(3,667,100)
Change in Fund Balance
34,370
405,856
366,195
(1,411,656)
Change in Reserve for Inventory
(38,746)
(59,138)
12,052
-0-
Ending Fund Balance
5,333,345
5,680,063
6,058,310
4,268,407

10. GASB No. 54 – Fund Balance Reporting and Government Type Definitions
General Fund
Capital Project Fund
Debt Service
Fund
Nonspendable
(Not in spendable form)
425,987
-0-
Restricted
(External)
Committed
(Board)
2,280,263
Assigned
(Board or Delegate)
6,342,930
Unassigned
(Residual GF balance)
3,352,060
Total
6,058,310

11. General Fund Expense Comparison

12. 2014-15 General Fund Expenses

13. Debt Service Fund Fund Balances June 30, 2013 June 30, 2014
Revenue and Transfers In:
Investment Earnings 1 2
Transfer In
3,412,974
3,426,599
2,825,496
Expenditures and Other:
Principal
3,065,000
3,200,000
2,750,000
Interest
346,475
225,100
75,000
Other
1,500
500
Net Change
-0-
(2)
Beginning Fund Balance
Ending Fund Balance
Rental Subsidy Revenue
552,458
553,896
348,977
Net Debt Service Cost
2,860,517
2,872,704
2,476,523

14. Debt Service Requirements

15. Long-Term Obligations
June 30, 2014
Additions
Reductions
June 30,
General Obligation Bonds
2,750,000
-0-
Unamortized Bond Issue Premium
11,047
Compensated Absences
798,530
40,646
25,065
814,111
Retirement Bonuses
461,203
12,020
30,369
442,854
Total
4,020,780
52,666
2,816,481
1,256,965

16. Capital Project Fund Fund Balance June 30, 2013 June 30, 2014
Revenues:
Investment Income
6,783
4,995
7,430
Other
-0-
185
360
Expenditures:
Capital Outlay
(823,538)
(1,197,505)
(2,517,386)
Transfer In:
3,400,000
1,538,574
1,847,038
Net Change
2,583,245
346,249
(662,558)
Beginning Fund Balance
4,075,994
6,659,239
7,005,488
Ending Fund Balance
6,342,930

17. Cafeteria Fund Analysis
Operating Revenues
780,247
718,317
659,796
Non-operating Revenues
900,393
953,631
984,637
Revenues
1,680,640
1,671,948
1,644,433
Salaries and Benefits
738,564
697,306
691,567
Supplies
818,678
762,505
837,643
Other Expenses
119,628
81,430
73,583
Total Expenses
1,676,870
1,541,241
1,602,793
Transfers In (Out)
-0-
Change in Net Position
3,770
130,707
41,640

18. Internal Service Funds
Changes in Net Position
Additions and Transfers In
4,210,932
4,473,849
4,797,090
Expenses and Transfers Out
4,183,223
4,199,093
4,625,134
Change in Net Position
27,709
274,756
171,956
Composition of Net Position
June 30, 2013
June 30, 2014
June 30, 2015
Hospitalization
2,681,386
2,962,951
3,143,296
Unemployment Compensation
178,932
172,123
163,734
Net Position - Total
2,860,318
3,135,074
3,307,030

19. Funding Sources for Health Insurance

20. Other CAFR Components Management’s Discussion and Analysis
Notes to Financial Statements
Note 1- Summary of Significant Accounting Policies
Note 2- Change in Accounting Principle
Note 12- Long-term Liabilities
Note 16- Operating Lease
Note 18- Fund Balances
Note 20- Defined Benefit Pension Plan
Note 21- 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

21. Schedule of Expenditures of Federal Awards
Expenditures = Grant Revenue
School Lunch/ Breakfast Program
842,045
869,137
Title I
1,828,907
1,905,362
Improving Teacher Quality
251,301
249,817
Striving Readers (KTO)
366,178
-0-
Special Education (via IU 13)
545,805
580,942
Other
17,251
12,229
Total Federal Grant Expenditures
3,851,487
3,617,487

22. 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

23. 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.

24. About trout, Ebersole & Groff LLP

25. Our Community Leadership

26. Your Partner 20 years of experience Expert in Audits of:
Employee Benefits
Governmental Agencies
Tax-Exempt Organizations
Member of:
American Institute of Certified Public Accountants
Pennsylvania Institute of Certified Public Accountants
Government Finance Officers’ Association
Pennsylvania Association of School Business Officials
Named one of Central PA’s
Forty Under 40 in 2009
Jill Gilbert, CPA, CGMA
Direct:

27. www.troutcpa.com LANCASTER OFFICE
1705 Oregon Pike, Lancaster, PA 17601
Phone · Toll Free · Fax
CAPITAL REGION OFFICE
5000 Ritter Road, Suite 104, Mechanicsburg, PA
Phone · Toll Free · Fax