Sheldon Independent School District

Annual Financial and Compliance AuditBoard of Trustees PresentationJanuary 19, 2010

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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

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Key Financial Elements

Cash and Investments - $57.1 MUncollected Property Taxes - $4.5 MCapital Assets - $156.0 MBonds Payable - $161.3 MTotal Net Assets (Equity) - $46.0 MUnrestricted Net Assets - $25.0 M

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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

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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%

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General Fund Financial Elements

Expenditures totaled $57.1 M– Expenditures increased

by $9.7 MInstruction expenditures increased by $1.9 M– Represents 48.69% of

general fund expenditures

Chapter 41 payments increased by $4.2 M

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General Fund Financial Elements

Payroll Costs totaled $40.3 M– Payroll costs increased

by $3.1 MContracted services expenditures increased by $4.2 M

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General Fund Financial Elements

Decrease to fund balance - $1.1 MTotal fund balance - $21.9 MGeneral fund (budget) balance - $11.0 M– 19.3% of general fund expenditures

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Debt Service Fund

Total debt service expenditures - $10.4 MNo change in debt service tax rate of $0.39Fund balance totaled $14.1 MAssets held in trust for QZAB’s - $5.3 MNew average annual debt requirement - $9.2 M

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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

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Questions and Answers