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1Solanco School District 2012-13 AuditJanuary 6, 2014

Audit OverviewAudit in Accordance with:US Generally Accepted Auditing StandardsGovernment (Yellow Book) Auditing StandardsUS OMB Circular A-133 (Single Audit)Audit of period 7/1/12- 6/30/13Solanco Business Office drafts financial statementsOverview of Audit ProcessAudit Findings: No significant deficiencies or material weaknesses are reported

Governmental ActivitiesHistorical AnalysisJune 30, 2011June 30, 2012June 30, 2013Current Assets16,578,60817,603,46521,349,010Noncurrent Assets43,225,23141,231,84839,761,248 Total Assets59,803,83958,835,31361,568,212Current Liabilities7,868,3388,296,0919,494,997Noncurrent Liabilities11,270,0228,347,4075,268,257 Total Liabilities19,138,36016,643,49814,763,254 Net Position40,665,47942,191,81546,347,004Debt to Equity Ratio0.470.390.32Relationship: Capital Assets vs. DebtGeneral Fund Results For Fiscal Year Ended201120122013 - Actual2013 Original BudgetLocal Revenues24,827,52826,268,50728,287,07726,216,318State Revenues15,242,90716,129,85116,407,10416,813,636Federal Revenues4,281,2152,005,9452,432,3982,586,319Total Revenues44,351,65044,404,30347,126,57945,616,273Instructional Services27,091,06625,962,94926,498,79329,676,601Support Services12,938,33312,816,45112,927,98513,994,332Operation of Noninstructional Services928,161871,287856,296894,350Total Expenditures40,957,56039,650,68740,283,07444,565,283Fund Transfers & Other Financing Uses(3,705,420)(4,830,222)(6,809,135)(3,173,000)Change in Fund Balance(311,346)(76,608)34,370(2,122,010)Change in Reserve for Inventory41,31959,922(38,746)-0-Change in Accounting Principal15,878-0--0--0-Ending Fund Balance5,354,4075,337,7215,333,3453,215,711GASB No. 54 Fund Balance Reporting and Government Type DefinitionsGeneral FundCapital Project FundDebt Service FundNonspendable (Not in spendable form)314,743-0--0-Restricted(External)112,549-0-1Committed(Board)3,289,810-0--0-Assigned(Board or Delegate)-0-6,659,239-0-Unassigned(Residual general fund balance)1,616,243-0--0- Total5,333,3456,659,23917General Fund Expense Comparison2012-13 General Fund Expenses

Debt Service FundFund BalancesJune 30, 2011June 30, 2012June 30, 2013Revenue and Transfers In: Investment Earnings211 Transfer In3,336,0903,420,0733,412,974Expenditures and Other: Principal2,780,0002,960,0003,065,000 Interest559,200458,575346,475 Other4,0001,5001,500Bond Issuance-0--0--0-Bond Refunding: -0- -0- -0- Net Change(7,108)(1)-0-Beginning Fund Balance7,11021Ending Fund Balance211Debt Service RequirementsCapital Project FundFund BalanceJune 30, 2011June 30, 2012June 30, 2013

Revenues: Investment Earnings14,35410,1356,783 Other410185-0-Expenditures: Capital Outlay519,334478,029823,538Transfer In:264,450628,9893,400,000 Net Change(240,120)161,2802,583,245Beginning Fund Balance4,154,8343,914,7144,075,994Ending Fund Balance3,914,7144,075,9946,659,239

Cafeteria Fund Analysis2010-112011-122012-13Operating Revenues910,186873,734780,247Non-operating Revenues769,575911,447900,393Revenues1,679,7611,785,1811,680,640Salaries and Benefits791,216764,666738,564Supplies810,268837,683818,678Other Expenses93,64677,244119,628Total Expenses1,695,1301,679,5931,676,870Transfers In (Out)65,36297,536-0-Change in Net Position49,993203,1243,77013

Internal Service Funds2010-112011-122012-13Additions4,647,4015,034,8024,210,932Expenses and Transfers Out4,428,3044,626,6984,183,223Change in Net Position219,097408,10427,709June 30, 2011June 30, 2012June 30, 2013Hospitalization2,282,4312,627,2582,681,386Unemployment Compensation142,074205,351178,932Net Position - Total2,424,5052,832,6092,860,318Composition of Net PositionChanges in Net PositionHealth Benefit ExpenseOther CAFR ComponentsManagements Discussion and Analysis

Notes to Financial StatementsNote 1- Summary of Significant Accounting PoliciesNote 11- Long-term LiabilitiesNote 15- Operating LeaseNote 17- Fund Balances

Supplemental Schedules for additional analysis

Single Audit (compliance audit of the School Districts federal grants) and related reports

Introductory Section and Statistical Section are Unaudited

Schedule of Expenditures of Federal AwardsExpenditures = Grant Revenue2011-122012-13School Lunch/ Breakfast Program805,935792,056Title I1,523,7141,730,714Improving Teacher Quality261,401270,184Striving Readers (KTO)7,691248,323Special Education (via IU 13)576,851619,952Other 26,296 7,863Total Federal Grant Expenditures3,201,8883,669,09217

Schedule of Expenditures of Federal AwardsReport on Internal Control over Financial ReportingNo Material Weaknesses or Significant Deficiencies Identified

Report on Compliance with RequirementsNo Compliance Findings 18This 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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