1. Sheldon Independent School District Annual Financial and Compliance Audit Board of Trustees Presentation January 19, 2010

2. 2 Report of Independent Auditors Audit conducted in accordance with Governmental Auditing Standards Unqualified or Clean Opinion Highest Level of assurance to be given on financial statements

3. 3 Key Financial Elements Cash and Investments - $57.1 M Uncollected Property Taxes - $4.5 M Capital Assets - $156.0 M Bonds Payable - $161.3 M Total Net Assets (Equity) - $46.0 M Unrestricted Net Assets - $25.0 M

4. 4 General Fund Financial Elements Revenues totaled $56.2M –Increase of $2.0 M from previous year State aid accounted for 29.5% of general fund revenues –State revenues decreased by $1.7 M

5. 5 General Fund Financial Elements Tax revenues total $38.9M –Increase of $4.3 M from previous year –No change in M&O tax rate of $1.04 –Current tax collection rate of 96.7% –Total tax collection rate of 99.0%

6. 6 General Fund Financial Elements Expenditures totaled $57.1 M –Expenditures increased by $9.7 M Instruction expenditures increased by $1.9 M –Represents 48.69% of general fund expenditures Chapter 41 payments increased by $4.2 M

7. 7 General Fund Financial Elements Payroll Costs totaled $40.3 M –Payroll costs increased by $3.1 M Contracted services expenditures increased by $4.2 M

8. 8 General Fund Financial Elements Decrease to fund balance - $1.1 M Total fund balance - $21.9 M General fund (budget) balance - $11.0 M –19.3% of general fund expenditures

9. 9 Debt Service Fund Total debt service expenditures - $10.4 M No change in debt service tax rate of $0.39 Fund balance totaled $14.1 M Assets held in trust for QZAB’s - $5.3 M New average annual debt requirement - $9.2 M

10. 10 Internal Controls and Compliance No material weaknesses noted in internal controls. Recommendations for improvements: –Purchase order approval –Segregation of duties in payroll –Segregation of duties in accounts payable –Journal entries No instances of noncompliance noted

11. 11 Questions and Answers