SWARTZ CREEK COMMUNITY SCHOOLS 2011-2012 Financial Statement Presentation.

SWARTZ CREEK COMMUNITY SCHOOLS

2011-2012 Financial Statement Presentation

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

Blended Student Enrollment

2007-08 2008-09 2009-10 2010-11 2011-123,000

3,200

3,400

3,600

3,800

4,000

4,200

4,400 4,2384,168

4,0313,976 3,960

General Fund Revenue

62%20%

5%

6%2%4%

2%

State Foundation GrantProperty TaxesFederal GrantsSpecial Ed/At RiskOther Local RevenueOther State Revenues

Revenue Sources 11-12

General Fund Expenditures

Salaries & Benefits88%

Purchased Services5%

Supplies & Materials4%

Other Expenses2% Capital Outlay

1%

Chart Title

General FundRevenues & Expenditures

07-08 08-09 09-10 10-11 11-12$32,000,000

$33,000,000

$34,000,000

$35,000,000

$36,000,000

Revenues

Expenditures

General Fund Fund Balance

07-08 08-09 09-10 10-11 11-12$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000$6,061,050

$5,394,764

$4,673,539

$3,767,870

$1,365,946

Chart Title

General Fund Balance as a Percentage of Expenditures vs. State Averages

June 30, 2012Swartz 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 Days 21.03 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

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.

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

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

2008 2009 2010 2011 2012$3,900,000

$4,200,000

$4,500,000

$4,800,000

Retirement Rate

07-08 08-09 09-10 10-11 11-12 12-1310

15

20

25

30

16.72 16.54 16.94 20.66

24.4625.36

School Year

Perc

en

tag

e O

f G

ross

Payro

ll

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

*

Sinking FundFund Balance June 30

2008 2009 2010 2011 2012$0

$300,000

$600,000

$900,000

$1,200,000

$1,500,000

$1,800,000

Food ServiceRevenues & Expenditures

07-08 08-09 09-10 10-11 11-12$1,000,000

$1,100,000

$1,200,000

$1,300,000

$1,400,000

$1,500,000

$1,600,000

Revenues

Expenditures

Food Service Fund Balance

07-08 08-09 09-10 10-11 11-12$0

$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000 Chart Title

Athletics Revenues, Expenditures & General Fund Contributions

07-08 08-09 09-10 10-11 11-12$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

Revenues

Expendi-tures

General Fund Con-tribution

Child Development Fund Revenues, Expenditures and Fund Balance

07-08 08-09 09-10 10-11 11-12$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

RevenuesExpendi-turesFund Balance

Community Education Revenues, Expenditures & General Fund Contributions

07-08 08-09 09-10 10-11 11-12$0

$50,000

$100,000

$150,000

$200,000

$250,000

Revenues

Expendi-tures

General Fund Con-tribution

Economic Considerations

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

District Impact

HCR compliance will have a significant impact on: District

Financial Business office

Information tracking Additional reporting requirements

Personnel Contract negotiations Staffing patterns

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?

Questions?