1. SWARTZ CREEK COMMUNITY SCHOOLS 2011-2012 Financial Statement Presentation

2. Auditors’ Opinion The District received an unqualified audit opinion This is the highest level of assurance possible for the District’s financial statements The audit was conducted in accordance with: Generally accepted auditing standards Government auditing standards

3. Blended Student Enrollment

4. General Fund Revenue Revenue Sources 11-12

5. General Fund Expenditures

6. General Fund Revenues & Expenditures

7. General Fund Fund Balance

8. General Fund Balance as a Percentage of Expenditures vs. State Averages June 30, 2012 Swartz Creek Community Schools June 30, 2011 State Average Fund Balance as a % of Expenditures -3.85%11.62%* Equivalent Days Based on: 181-Day School Year 6.96 Days21.03 Days Note – for example, a 3.85% fund balance is equivalent to a household with $50,000 annual income having $1,925 in a savings account. *Excluding Detroit Public Schools

9. Fund Balance–Under GASB 54  Nonspendable - inventories, prepaids, long-term receivables  Restricted - externally imposed by grantors etc.  Committed - constrained by the Board  Assigned – Previously designated, shows intent.  Unassigned – Previously unreserved, undesignated.

10. General Fund – GASB 54 Fund Balance Non Spendable-Inventory and Prepaids $200,202 Restricted - Committed - Assigned- 2012-13 Appropriated Expenditures exceed Revenues 580,259 Unassigned 473,604 Total Fund Balance $1,365,946

11. Due From State & Other Governmental Units - General Fund as of June 30,

12. Retirement Rate * Rate increase from 19.41% to 20.66% effective November 1, 2010. *

13. Sinking Fund Fund Balance June 30

14. Food Service Revenues & Expenditures

15. Food Service Fund Balance

16. Athletics Revenues, Expenditures & General Fund Contributions

17. Child Development Fund Revenues, Expenditures and Fund Balance

18. Community Education Revenues, Expenditures & General Fund Contributions

19. Economic Considerations

20. Health Care Reform  Two Acts signed into law in 2010  Patient Protection and Affordable Health Care Act (PPACA)  Health Care and Education Reconciliation Act of 2010  These combined Acts are referred to as the Health Care Reform  Health Care Reform (HCR)  Complex regulation  Huge administrative burden  Will impact 2013-14 budget

21. District Impact HCR compliance will have a significant impact on:  District  Financial  Business office  Information tracking  Additional reporting requirements  Personnel  Contract negotiations  Staffing patterns

22. Compliance Issues  W2 Reporting  2012 data on W2s issued in January 2013  Summary of Benefits and Coverage  Begins September 2012  Open enrollment or first day of plan year  Issued to all employees & new hires  Must show proof of delivery  Health Insurance Coverage for Full Time Employees 2014  Average 30 hours/week  Significant penalties for non-compliance  Potential penalties even if district complies  New annual return required in January 2015  2014 Data regarding health insurance plan  Track who is offered coverage  Does coverage meet specific requirements?

23. Questions?