PRESENTED BY

David R. Youngstrom, CPA

Troy School District

June 30, 2018

Audit Results

Financial Statements:

•Unmodified Opinion–Highest level of assurance

–School's financial records and statements are fairly and appropriately presented, and in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

1

Early Childhood Nonmajor Total

General Capital Projects Learning Governmental Governmental

Fund 2016 Center Funds Funds

Assets

Cash and investments 23,649,831$ 25,182,663$ 15,629,166$ 5,021,689$ 69,483,349$

Receivables - net 600,453 - - 59,087 659,540

Due from other governmental units 19,416,408 - - 645,183 20,061,591

Prepaid items and inventory 455,901 - - 41,549 497,450

Total assets 44,122,593$ 25,182,663$ 15,629,166$ 5,767,508$ 90,701,930$

Liabilities

Accounts payable and other liabilities 3,296,777$ 2,230,887$ 1,293,646$ 860,149$ 7,681,459$

Accrued expenses 15,093,802 - - - 15,093,802

Unearned revenues 477,213 - - 427,619 904,832

Total liabilities 18,867,792 2,230,887 1,293,646 1,287,768 23,680,093

Deferred Inflows of Resources

Unavailable revenue 12,329 - - - 12,329

Fund Balance

Non-spendable - Prepaid items & inventory 455,901 - - 41,549 497,450

Restricted - Food service - - - 912,862 912,862

Restricted - Debt service - - - 1,535,463 1,535,463

Restricted - Capital projects - 22,951,776 14,335,520 105,285 37,392,581

Committed - - - 1,198,112 1,198,112

Assigned - Capital projects - - - 686,469 686,469

Unassigned 24,786,571 - - - 24,786,571

Total fund balance 25,242,472 22,951,776 14,335,520 4,479,740 67,009,508

Total liabilities, deferred inflows

of resources, and fund balance 44,122,593$ 25,182,663$ 15,629,166$ 5,767,508$ 90,701,930$

Capital Projects Funds

Balance Sheet-Governmental Funds

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Statement of Revenues, Expenditures and Changes in Fund Balances

3

Early Childhood Nonmajor Total

General Capital Projects Learning Governmental Governmental

Fund 2016 Center Funds Funds

Revenues and other sources 151,774,253$ 265,144$ 16,707,519$ 31,266,700$ 200,013,616$

Expenditures and other uses 150,737,172 14,031,830 2,371,999 35,155,306 202,296,307

Change in fund balance 1,037,081 (13,766,686) 14,335,520 (3,888,606) (2,282,691)

Fund balance - July 1, 2017 24,205,391 36,718,462 - 8,368,346 69,292,199

Fund balance - June 30, 2018 25,242,472$ 22,951,776$ 14,335,520$ 4,479,740$ 67,009,508$

Capital Projects Funds

General Fund Revenue (includes Other Sources)Year Ended June 30, 2018

Local$38,844,065

26%

State$101,977,419

67%

Federal$3,333,254

2%

Interdistrict sources$7,537,593

5%

Other$81,922

Less than 1%

4

General Fund ExpendituresYear Ended June 30, 2018

Salaries$73,741,957

49%

Employee Benefits$48,780,644

33%

Purchased Services$19,695,836

13%

Supplies and Materials$6,053,649

4%Capital Outlay

$484,461 Less than 1%Other

$1,980,625 1%

5

General Fund ExpendituresYear Ended June 30, 2018

Instruction$104,214,738

69%

Supporting Services$46,452,918

31%

Other$69,516

Less than 1%

5

Instructional Expenditures Comparison

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Troy Schools2014-15

Troy Schools2015-16

Troy Schools2016-17

Troy Schools2017-18

Average of AllOakland County

Schools2016-17

68% 69% 69% 69%

64%

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Per-Pupil Analysis of General FundRevenues and Expenditures

$10,560 $10,526

$10,812

$11,094

$11,353

$11,596

$10,641 $10,585

$10,924 $11,028

$11,145

$11,516

$9,000

$9,500

$10,000

$10,500

$11,000

$11,500

$12,000

2013 2014 2015 2016 2017 2018

Revenues Expenses

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Ten Year Enrollment Trend Analysis

12,17712,076 12,032

12,31212,438

12,59112,563

12,717

12,88113,089

10,000

11,000

12,000

13,000

14,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Enrollment

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General Fund Unassigned Balance

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

2014 2015 2016 2017 2018

$21,000,702 $20,231,419 $21,038,513

$23,716,299

$24,786,571

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Financial Statements:

•No Material Weaknesses Identified

•No Significant Deficiencies Identified

•No Material Noncompliance

Federal Awards:

•Major Program –

•Child Nutrition Cluster – Unmodified Opinion

•Special Education Cluster – Unmodified Opinion

•No Material Weaknesses Identified

•No Significant Deficiencies Identified

•No Material Noncompliance

Internal Controls and Compliance

12

Governance Letter

Required communication

Management Comments

•Prior Year –•Federal Procedures - See below, in progress

•Time and Effort Record Keeping - Corrected

•Current Year –•Federal Procedures

•Athletic Receipt Procedures

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•State economic/political condition

•Rising fringe benefit costs

•Retirement rate increase

•Post employment benefit obligation - nearly

$77M

•Net pension liability - over $225M

Future Challenges

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Thank you!

David R. Youngstrom, CPAdavyou@yeoandyeo.com

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