CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2015 IN CONNECTION WITH

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1 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2015 IN CONNECTION WITH OMB CIRCULAR A-133

2 Independent Auditor's Report Required Supplementary Information: Management's Discussion And Analysis ("MD&A") 3 Other Supplementary Information: Major Governmental Funds: General Fund - Comparative Balance Sheet Comparative Schedules Of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual Schedule of Revenues, Expenditures And Other Financing Sources (Uses) Compared To Budget Capital Projects Fund - Comparative Balance Sheet Comparative Schedules Of Revenues, Expenditures And Changes In Fund Balance (Deficit) Special Aid Fund - Comparative Balance Sheet Comparative Schedules Of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual Other Supplementary Information (Required by the New York State Education Department): General Fund - Schedule Of Change From Adopted Budget To Final Budget And The Real Property Tax Limit 61 Capital Projects Fund - Schedule Of Project Expenditures And Financing Sources 62 Net Investment In Capital Assets 63 Basic Financial Statements: District-Wide Financial Statements - Statement Of Net Position Statement Of Activities And Changes In Net Position Fund Financial Statements - Balance Sheet - Governmental Funds Reconciliation Of Governmental Funds Balance Sheet To The Statement Of Net Position Fund Financial Statements - Statement Of Revenues, Expenditures And Changes In Fund Balance (Deficit) - Governmental Funds Reconciliation Of Governmental Funds Statement Of Revenues, Expenditures And Changes In Fund Balance To The Statement Of Activities Fund Financial Statements - Statement Of Fiduciary Net Position - Fiduciary Funds Statement Of Changes In Fiduciary Net Position - Fiduciary Funds Notes To Financial Statements Required Supplementary Information Other Than MD&A: General Fund - Schedule Of Revenues, Expenditures And Changes In Fund Balance - Budget And Actual 55 Schedule Of Funding Progress For The Retiree Health Plan 56 Schedule Of District's Proportionate Share Of The Net Pension Liability - NYSERS 57 Schedule Of District's Proportionate Share Of The Net Pension Asset - NYSTRS 58 Schedule Of District Pension Contributions - NYSERS 59 Schedule Of District Pension Contributions - NYSTRS CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK TABLE OF CONTENTS

3 Non-Major Governmental Funds: Combining Balance Sheet (With Comparative Totals For 2014) Combining Statement Of Revenues, Expenditures And Changes Findings And Recommendations Federal Award Program Information: Schedule Of Expenditures Of Federal Awards Notes To Schedule Of Expenditures Of Federal Awards Independent Auditor's Report On Internal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards Independent Auditor's Report On Compliance For Each Major Program And On Internal Control Over Compliance Required By OMB Circular A-133 Schedule Of Findings And Questioned Costs Summary Schedule Of Prior Audit Findings Extraclassroom Activity Funds In Fund Balance (With Comparative Totals For 2014) School Lunch Fund - Comparative Balance Sheet Comparative Statement Of Revenues, Expenditures And Changes In Fund Balance Debt Service Fund - Comparative Balance Sheet Comparative Statement Of Revenues, Expenditures And Changes In Fund Balance Fiduciary Funds - Statement Of Changes In Fiduciary Assets And Liabilities (Agency Funds) CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK TABLE OF CONTENTS (continued)

4 To the Board of Education of the City School District of White Plains, New York: INDEPENDENT AUDITOR'S REPORT -1- In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, the fiduciary funds and the aggregate remaining fund information of the District, as of June 30, 2015, and the respective changes in financial position, thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Opinions We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Auditor's Responsibility Management is responsible for the preparation and fair presentation of these financial statements 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. Management's Responsibility for the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, the fiduciary funds and the aggregate remaining fund information of the City School District of White Plains, New York (the "District"), as of and for the year ended June 30, 2015, and the related notes to financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. Report on the Financial Statements NawrockiSmith CERTIFIED PUBLIC ACCOUNTANTS

5 Change in Accounting Principle As discussed in Note 3, as well as Management's Discussion and Analysis ("MD&A"), in 2015 the District adopted Governmental Accounting Standards Board ("GASS") Statement No. 68, Accounting and Financial Reporting for Pensions and GASS Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. The adoption of these statements resulted in a prior-period adjustment. Our opinion is not modified with respect to this matter. -2- Melville, New York September 18, 2015 In accordance with Government Auditing Standards, we have also issued our report dated September 18, 2015, on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance. Other Reporting Required by Government Auditing Standards The other supplementary information required by the New York State Education Department and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the other supplementary information and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's basic financial statements. The other supplementary information, on pages 61-80, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Other supplementary information required by the New York State Education Department is indicated as such in the table of contents. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, and is also not a required part of the basic financial statements. Other Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and required supplementary information, on pages 3-15 and respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the GASS, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Required Supplementary Information Other Matters NawrockiSmith

6 -3- In the General Fund, revenues were 3.1 % above the original budget and expenditures were 1.1 % below budget, thus contributing to the District's fund balance. Expenditures (and interfund transfer expenses) were up 2.2% from the prior year, primarily due to contractual employee benefits. On the District-wide financial statements, the assets and deferred inflows of resources of the District exceeded liabilities and deferred inflows of resources at the close of its most recent fiscal year by $127,152,085. The District's total net position increased by $28,325,941 for the year ended June 30, The unrestricted portion of net position as of June 30, 2015 was $18,786,452, as a result of the cumulative effect of the recognition of the District's share of their net pension asset/(liability) (and respective deferred inflows/outflows of resources) of $32,992,592 offset by their long-term liability for Other Post-Employment Benefits ("OPEB") of $21,454,366. The District maintains a strong working capital ratio and thus does not need to borrow for short term cash needs. As described in Note 3 to the financial statements, "Change in Accounting Principle", the District has adopted the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, for the year ended June 30, The adoption of these principles resulted in a restatement of the District's opening net position as of July 1, 2014 in the amount of $15,270, 132, as indicated in Note 18 to the financial statements. Prior year balances reflected in MD&A have been updated, for comparison purposes, to reflect the change where indicated. As of the close of the current fiscal year, the District's fund financial statements report a combined ending fund balance of $48,720,044 which is an increase of $1,100,118. Exclusive of the Capital Projects Fund, the combined ending fund balances are $62,393,337. Of this latter amount, the unassigned fund balance is $8,232,000 or 13.2% (compared to 14.7% in 2014). This amount is available for spending at the discretion of the District. The increase in total fund balance results from expenditures coming in lower than had been estimated when the budget was adopted. New York State Law limits the amount of committed, assigned and unassigned fund balance, exclusive of encumbrances and amounts assigned for the subsequent year's budget, which can be retained by the General Fund to 4% of the ensuing year's budget. The District has remained within this limit. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $8,232,000 equal to the 4% limit (see page 61). FINANCIAL HIGHLIGHTS The following is a discussion and analysis of the City School District of White Plains, New York (the "District") financial performance for the fiscal year ended June 30, This section is a summary of the District's financial activities based on currently known facts, decisions or conditions. It is also based on both the District-wide and fund-based financial statements. The results of the current year are discussed in comparison with the prior year, with an emphasis placed on the current year. This section is only an introduction and should be read in conjunction with the District's financial statements, which immediately follow this section. CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2015

7 OVERVIEW OF THE FINANCIAL STATEMENTS -4- Table A-1 summarizes the major features of the District's financial statements, including the portion of the District's activities they cover and the types of information they contain. The remainder of this overview section of management's discussion and analysis highlights the structure and contents of each of the financial statements. The Fiduciary fund financial statements provide information about the financial relationships in which the District acts solely as a trustee or agent for the benefit of others. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The financial statements are followed by a section of required supplementary information that further explains and supports the financial statements with a comparison of the District's budget for the year. The fund financial statements tell how basic services such as regular and special education were financed in the short-term as well as what remains for future spending. The remaining financial statements are fund financial statements that focus on individual parts of the District, reporting the District's operations in more detail than the District-wide financial statements. The first two financial statements are District-wide financial statements that provide both short-term and long-term information about the District's overall financial status. This annual report consists of three parts: required supplementary information, which includes management's discussion and analysis (this section), the basic financial statements, and other supplementary information. The basic financial statements include two kinds of financial statements that present different views of the District: During 2015, the District utilized a portion of their General Fund cash to purchase U.S. Treasuries. Accrued investment earnings not yet recognized in the General Fund amount to approximately $300,000 as of June 30, The District will be receiving very favorable interest as the Treasury rates obtained vary from 0.5% to 1.25% depending on the maturity date.

8 -5- The two District-wide financial statements report the District's net position and how it has changed. Net position - the difference between the District's assets, deferred outflows of resources, liabilities and deferred inflows of resources - is one way to measure the District's financial health or position. The District-wide financial statements report information about the District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the District's assets, deferred outflows of resources, liabilities and deferred inflows of resources. All of the current year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. District-Wide Financial Statements District-Wide Financial Fund Financial Statements Statements Governmental Funds Fiduciary Funds Scope Entire District (except The activities of the Instances in which the fiduciary funds) District that are not District administers proprietary or fiduciary, resources on behalf of such as instruction, someone else, such as special education and scholarship programs building maintenance and student activity monies Required financial Statement of Net Balance Sheet Statement of statements Position Statement of Fiduciary Net Statement of Revenues, Position Activities and Expenditures and Statement of Changes in Net Changes in Fund Changes in Position Balance Fiduciary Net Position Accounting basis and Accrual accounting Modified accrual Accrual accounting and measurement focus and economic accounting and current economic resources resources focus financial focus focus Type of asset/deferred All assets, deferred Generally, assets and All assets, deferred outflows of outflows of resources, deferred outflows of outflows of resources (if resources/liability/ liabilities, deferred resources expected to any), liabilities, and deferred inflows of inflows of resources, be used up and deferred inflows of resources information both financial and liabilities and deferred resources (if any), both capital, short-term and inflows of resources short-term and longlong-term that come due or term; funds do not available during the currently contain capital year or soon assets, although they thereafter; no capital can assets or long-term liabilities included Type of inflow/outflow All revenues and Revenues for which All additions and information expenses during the cash is received during deductions during the year, regardless of or soon after the end of year, regardless of when cash is received the year; expenditures when cash is received or paid when goods or or paid services have been received and the related liability is due and payable Table A-1: Major Features of the District-Wide and Fund Financial Statements

9 To assess the District's overall health, you need to consider additional non-financial factors such as changes in the District's property tax base and the condition of school buildings and other facilities. In the District-wide financial statements, the District's activities are shown as governmental activities. Most of the District's basic services are included here, such as regular and special education, transportation and general support expenses. Property taxes, other tax items and State formula aid finance most of these activities. Fiduciary funds: The District is the trustee or fiduciary, for assets that belong to others, such as the scholarship funds and student activities funds. The District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. -6- The District adopts an annual budget for its General Fund which is then voter approved. For the Special Aid Fund, the District uses grant award amounts and other estimates to establish a budget primarily used for expense control. The Special Aid Fund budget is only a guide as not all the grants follow the same fiscal year and certain expenses for special education students are required to be reported in this fund (s4201 and s4408 schools). A budgetary comparison schedule is provided for these funds to demonstrate compliance with the respective budgets. The District maintains five individual governmental funds; General Fund, Capital Projects Fund, Special Aid Fund, School Lunch Fund and Debt Service Fund. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances for the General, Capital Projects and Special Aid funds which are considered to be major funds. Data for the other two governmental funds are combined into a single, aggregated presentation and individual fund data is provided elsewhere in this report. A detailed description of each fund can be found on page 26. Governmental funds: Most of the District's basic services are included in governmental funds, which generally focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the fund financial statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the District's programs. Because this information does not encompass the additional long-term focus of the District-wide financial statements, reconciliations of the District-wide and fund financial statements are provided which explain the relationship (or differences) between them. The District has two kinds of funds: The District establishes other funds to control and to manage money for particular purposes (such as repaying its long-term debts) or to show that it is properly using certain revenues (such as Federal grants). Some funds are required by State law and by bond covenants. The fund financial statements provide more detailed information about the District's funds, focusing on its most significant or "major" funds - not the District as a whole. Funds are accounting devices the District uses to keep track of specific sources of funding and spending on particular programs: Fund Financial Statements Over time, increases or decreases in the District's net position is an indicator of whether its financial status is improving or deteriorating, respectively.

10 The District's net position increased by 28.7% from the year before to $127, 152,085 as detailed in Tables A-2 and A-3. The restricted net position balance of $81,211,263 represents assets that are restricted by external sources, imposed by laws through constitutional provisions or enabling legislation. As of June 30, 2015, the District has an unrestricted net position of $18,786,452. Table A-2: Condensed Statements of Net Position - Governmental Activities -7- As of June 30, 2015, the District had an investment in capital assets of $134,450,243 as compared to $130,317,794. The increase is due to current year outlay for ongoing capital projects exceeding depreciation charges. Noncurrent long-term liabilities decreased $3,202,098 due to current year debt service payments offset by the continued recognition of the other post-employment benefits obligation liability, with a current year charge of $7,946,279 (offset by current year retirement payments of $5,568,448). As of June 30, 2015, the District had positive working capital of $47,187,347 as compared to $43,414,898 as of June 30, This is due to an increase in cash and investments of approximately $12.8 million offset by an increase in bond anticipation notes payable of $11.9 million and a reduction in noncurrent liabilities (bonds payable and energy performance contract payable) due within one year of approximately $2.3 million. A strong working capital ratio, as noted here, typically eliminates the need to borrow for short-term cash needs, i.e. as with a Tax Anticipation Note ("TAN") or Revenue Anticipation Note ("RAN"). Total net position $127, 152,085 $ 98,826, 144 $ 28,325, Net position: Net investment in capital assets $ 27,154,370 $ 29,065,550 $ (1,911, 180) (6.6) Restricted 81,211,263 69,120,317 12,090, Unrestricted 18,786, ,277 18,146,175 2,834.1 Total liabilities and deferred inflows $200, 100, 173 $151,129,663 $ 48,970, Def erred inflows 41,729,446 30,656 41,698, ,021.6 Total liabilities 158,370, ,099,007 7,271, Current liabilities $ 69,354,750 $ 58,880,932 $ 10,473, Noncurrent liabilities 89,015,977 92,218,075 {3,202,098} (3.5) Total assets and deferred outflows $ 327,252,258 $ 249,955,807 $ 77,296, Deferred outflows 15,466,636 13,727,446 1,739, Total assets 311,785, ,228,361 75,557, Current assets $116,542,097 $102,295,830 $ 14,246, Noncurrent and capital assets, net 195,243, ,932,531 61,310, /30/15 6/30/14 $Change % Change FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE

11 GASB 71). The details of deferred inflows related to the new pension standards are shown in Note 12 to the financial statements. Changes in Net Position The District's fiscal year 2015 revenues totaled $217,113,876, which is 5.0% greater than fiscal year 2014 (See Table A-3). Property taxes, other real property tax items (STAR and PILOTS) and State sources accounted for 90.6% of total revenues (See Table A-4). The remainder came from fees charged for services, operating grants, other miscellaneous sources and use of money and property. -8- Net position, beginning of year 98,826, ,047,351 23,778, Net position, end of year $127,152,085 $ 98,826,144 $ 28,325, Change in net position 28,325,941 23,778,793 4,547, Total expenses 188, 787' ,065,538 5,722, Program expenses: General support 24,592,125 25,818,266 (1,226,141) (4.7) Instruction 147,739, , 133,923 6,605, Pupil transportation 9,509,771 9,212, , Debt service - interest 3, 131,247 3,240,395 (109, 148) (3.4) School lunch program 3,815,789 3,660, , Total revenues 217,113, ,844,331 10,269, Total general revenues 202,588, ,262,288 9,325, Program revenues: 6/30/15 6/30/14 ~Change %Change Charges for services $ 4,888,440 $ 5,264,438 $ (375,998) (7.1) Operating grants and 9,637,258 8,058,705 1,578, contributions Capital grants and contributions 258,900 {258,900} (100.0) Total program revenues 14,525,698 13,582, , General revenues: Real property taxes 148,352, ,033,211 4,318, Other real property tax items 27,400,435 27,384,398 16,037 Non-property tax items 3,794,473 3,937,081 (142,608) property 389,845 27, ,148 Sale of property and compensation for loss 62, ,583 (205, 196) State sources - unrestricted 21,060,018 16,519,579 4,540,439 Federal sources - Medicaid 70,236 47,995 22,241 Miscellaneous 1,458,715 1,044, ,971 Unrestricted use of money and (76.7) 0.1 (3.6) 1,307.5 Table A-3: Changes in Net Position from Operating Results - Governmental Activities Only The District's fiscal year 2015 expenses totaled $188,787,935, and reflect a 3.1% increase over the prior year's expenses (See Table A-3). These expenses (91.3 percent) are predominantly related to instruction and general support (See Table A-6). As of June , the balance of the District's deferred inflows is largely made up of amounts recorded as a result of the District's implementation of the new pension standards (GASB 68 and

12 Revenues for the District's governmental activities totaled $217, 113,876 while total expenses were $188,787,935, for the year ended June 30, Therefore, the increase in net position for governmental activities was $28,325,941 in The implementation of GASS 68 and GASS 71 resulted in a current year increase in net position of $17,722,460. The District's financial condition is generally affected by: -9- General Support expenses decreased $1,226, 141 while Instruction expenses increased by $6,605,080. The primary reason for the increase in Instruction expenses is contractual salary increases and higher employee benefits, primarily due to higher retirement contributions rates, health insurance costs along with the ongoing accrual of the District's OPES obligation. Additionally, investments were made in some educational programs resulting in a few new positions and special education expenses were higher due to the increased cost of out of district placements. Expenses for tax certiorari claims decreased by $924,254, which is the principle reason for the decrease in General Support expenses. School lunch program (cost of food sales) increased by $154,853 (not including equipment purchases of $38,846) as salary costs, food costs and the cost of paper products were higher. Interest expense decreased by $109, 148 as the principal amount outstanding has decreased from the prior year. Expenses: Real property taxes increased by $4,318,858. This increase was within the tax cap, reflects a modest tax increase to residents and allows for a continued strong educational program. Other real property tax items include the reimbursements received under the School Tax Relief Reimbursement Program ("STAR"), Payments in lieu of taxes ("PILOTS") and Interest and Penalties on real property tax assessments. The revenues from the STAR program decreased $532,597, or 6% as the state initiated a homeowner verification program, while PILOT payments increased $540,469 or 3.0% reflecting current agreements. Unrestricted State sources (aid) increased by $4,540,439 as the District received more Foundation Aid through the reduction of the Gap Elimination Adjustment and from higher aid ratios for Building and Transportation Aid. Operating grants and contributions increased $1,578,553 as the District received a new additional grant from New York State in the amount of $931, 082 for the coordination of a full-day Universal Pre-Kindergarten Program. Non-property tax revenue decreased by $142,608, which reflects decreased taxes collected from consumer utility bills. This decrease is a direct result of a less severe Northeast Winter in 2015 as compared to 2014 and lower usage of home phone lines. Miscellaneous revenues increased $413,971. The primary source of this increase was Microsoft settlement revenues received during 2015 in the amount of $340,073. Revenues: The major changes in revenues and expense are as follows: Community support of the District's annual budget as reflected in the increase in revenue from real property taxes; Changes in State aid (sources); Conservative fiscal management of the District's expenditures; and Continued recognition of the liability for benefits provided to retirees other than pensions ("OPES"). Governmental Activities

13 Operating grants and contributions, 4.4% Charges for services, 2.3% \ Miscellaneous, 0.7%~ \ Capital grants and r ontribulions_._o_.o_ /c_o ~ / Real property taxes, 68.3% -10- Non-property tax items, 1.9% Other real property tax items, 13.2% Unrestricted use of money and property, 0.0% Sale of property and compensation for los7s,. 0.1% ' Operating grants and contributions, 3.9% Capital grants and l contribution_s_, _o._1_% Table A-5: Sources of Revenues for Fiscal Year 2014 Non-property tax items, 1.8% Other real property tax items, 12.6% Unrestricted use of money and property, 0.2% Sale of property and compensation for los7s. -, 0.0% Federal sources-~ Medicaid, 0.0% Table A-4: Sources of Revenues for Fiscal Year 2015

14 Debt service - interest School lunch program 1. 7% 2.0% ~,-~--~. Pupil transportation~ 5.0% ~ General support / 13.0% Instruction, 77.1% Table A-7: Expenses for Fiscal Year 2014 Instruction 78.3% Table A-6: Expenses for Fiscal Year 2015

15 Variances between years for the fund financial statements are not the same as variances between years for the District-wide financial statements. The District's governmental funds are presented on the current financial resources measurement focus and the modified accrual basis of accounting. Based on this presentation, governmental funds do not include long-term debt liabilities for the funds' projects -12- Total fund balances $ 48,720,044 $ 47,619,926 $ 1,100, Total Non-Major Funds 2,607,859 2,743,679 (135,820) (5.0) Non-Major Funds Nonspendable: Inventory Restricted: Debt reserve Assigned: School Lunch Fund Total Major Funds 46,112,185 83,378 1,814, ,123 44,876,247 94,577 1,814, ,744 1,235,938 (11,199) (124,621) 2.8 (11.8) 0.0 (14.9) Total Capital Projects Fund (13,673,293) (6,636,808) (7,036,485) (106.0) Capital Projects Fund Restricted: Capital projects Unassigned 30,280,894 (43,954, 187) 25,647,870 (32,284,678) 4,633,024 (11,669,509) 18.1 (36.1) Major Funds General Fund Nonspendable: Advances Restricted: Tax certiorari Property loss Liability claims Capital Debt service Assigned: Encumbrances Unassigned Total General Fund $ 6/30/15 449,691 48,445,137 83, , ,050 30,350 1,987,776 8,232,000 59,785,478 6/30/14 $ 449,691 41,617,777 83, , , ,279 7,995,996 51,513,055 $ $Change 6,827, ,350 1,178, ,004 8,272,423 % Change Table A-8: Fund Balances - Governmental Funds and capital assets purchased by the funds. Governmental funds will include the proceeds received from the issuance of debt, the current payments for capital assets, and the current payments for debt. At June 30, 2015, the District's governmental funds reported a combined fund balance of $48, 720,044, which is an increase of $1, 100, 118 from June 30, Fund balances for the District's governmental funds for the past two years were distributed as follows: FINANCIAL ANALYSIS OF THE DISTRICT'S FUNDS

16 General Fund Budgetary Highlights Reference is made to supplementary schedule on page 55 which presents original and revised budget amounts, as well as actual results for the District's General Fund Unassigned fund balance, end of year $ 8,232,000 Less: Current-year encumbrances (1,987,776) Current-year nonspendable fund balance (449,691) Board approved transfer to Tax Certiorari Reserve including interest (11,857,710) Interest on Reserve for Property Loss (27) Interest on Reserve for Liability Claims (86) Interest on Reserve for Capital Projects, (99) Mandatory transfer to Debt Service Reserve {30,350} Unassigned fund balance, beginning of year $ 7,995,996 Add: Prior-year encumbrances 809,279 Prior-year nonspendable fund balance 449,691 Board approved use of Tax Certiorari Reserve 5,030,350 Net change in fund balance 8,272,423 As of June 30, 2015, the District's unassigned fund balance was $8,232,000 which equals the allowable 4% of the subsequent year's budget ($205,800,000) as promulgated by New York State (see page 61). The following is a reconciliation of the General Fund's unassigned fund balance for the year ended June 30, 2015: As a result of a positive fund balance, the District was able to position itself to fund its reserve for tax certiorari payments to pay claims without the need for borrowing. Actual expenditures were approximately $6.4 million, or 3.1 %, less than budget primarily due to lower than anticipated costs in Central Services ($293, 171 ), Instructional Administration ($502,872), Regular School Instruction ($1,737, 158), Pupil Transportation ($400,362) and Employee Benefits ($2,576,328) categories. This is due to lower than anticipated increases in employee benefits due to contract negotiations. Actual revenues were higher than the final budgeted revenues by $5, 766,627 due to higher than anticipated charges for services ($709,583), non-property tax items for consumer utility bills ($594,473) and State sources ($3, 700,083). State sources increased because of the receipt of a large payment for homeless aid (which is typically unpredictable in timing), higher transportation aid (better ratio) and increased BOCES aid. A detailed description of fund balance categories can be found on pages 34 and 35. Of the combined fund balance, it is important to note that only, $8,232,000 is actually available for use at the District's discretion. The amount assigned (reserved) for encumbrances increased due to the District's ongoing capital projects receiving work orders before year end but not yet completed.

17 Capital Assets CAPITAL ASSETS AND DEBT ADMINISTRATION -14- Totals $ 92,764,505 $ 97,979,856 $ (5,215,351) (5.3) Capital bonds payable $ 56,628,856 $ 61,813,284 $ (5,184,428) (8.4) Tax certiorari bonds payable 3,655,000 5,450,000 (1,795,000) (32.9) Energy performance contract debt payable 8,807,380 9,438,960 (631,580) (6.7) Judgments and claims payable 3,018 (3,018) (100.0) Other post-employment benefit obligations payable 21,454,366 19,076,535 2,377, Compensated absences 2,218,903 2,198,059 20, /30/15 6/30/14 $Change % Change Table A-10: Outstanding Long-Term Debt As of June 30, 2015, the District had $92, 764,505 in general obligation bonds and other long-term debt. The decrease results from previous borrowings being paid off and no new long-term borrowings in The District expects to convert its BAN for the current capital project into a bond by the end of , if construction remains on schedule. The details of long-term debt are shown in Note 11 to the financial statements. Long-Term Debt Totals $ 134,450,243 $ 130,317,794 $ 4,132, Land $ 952,377 $ 952,377 $ 0.0 Construction-in-progress 10,315,526 1,584, 101 8,731, Buildings and improvements 114,837, ,088,245 (4,250,678) (3.6) Improvements other than buildings 7,626,733 8,185,356 (558,623) (6.8) Machinery and equipment 718, , , /30/15 6/30/14 $Change % Change Table A-9: Capital Assets (net of depreciation) As of June 30, 2015, the District had invested $134,450,243, net of depreciation, in a broad range of capital assets, including school buildings, maintenance facilities, athletic facilities, computer and audiovisual equipment, and administrative offices. Construction-in-progress will continue to increase as the District is about halfway through a $48.0 million school renovation project. The details of capital assets are shown in Note 8 to the financial statements. The Capital Projects Fund ended the current year with a deficit fund balance of $13,673,293. This deficit is a primary result of expenditures on a new capital project, of $13,549,296 (cumulative) that has thus far been financed by the issuance of bond anticipation notes ("BANs"). BANs are not recognized as revenue until redeemed or converted to permanent financing (i.e. serial bonds). The deficit in the Capital Projects Fund will be eliminated when the serial bonds are issued, estimated for The deficit is also a result of a pledged donation still owed for a previous capital project. The granter has assured its pledge will be honored and the deficit will be reduced as those funds are received.

18 At the time these financial statements were prepared and audited, the District was aware of the following existing circumstances that could significantly affect its financial health in the future: The "Tax Levy Limitation Law" which was enacted on June 24, 2011 restricts the amount of property taxes that may be levied by or on behalf of a school district in a particular year. Although there are exceptions, exemptions and overrides to the limitation, the new Law is expected to make budgetary decisions more difficult City School District of White Plains, New York Attn: Fred W. Seiler Assistant Superintendent for Business 5 Homeside Lane White Plains, New York This financial report is designed to provide the District's citizens, taxpayers, customers, investors and creditors with a general overview of the District's finances and to demonstrate the District's accountability for the money it receives. If you have any questions about this report or need additional financial information, please contact: CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT In July 2014, the New York State Department of Taxation and Finance introduced the "Property Tax Freeze Credit" program. This program is a two-year tax relief program that reimburses qualifying New York State homeowners for increases in local property taxes on their primary residences. The District met the requirements of this program. Future programs for tax relief other than STAR are unknown at this time. The General Fund budget for the school year is impacted by certain trends affecting school districts. These include potential increases in retirement contributions, health insurance costs, workers' compensation judgments, potential unemployment insurance claims, special education costs and unfavorable tax certiorari proceedings, which are beyond the District's control. The District uses past trends and information available to make estimates to include in the budget each year. The General Fund Budget for the school year was approved by the voters in the amount of $205,800,000, which represents an increase of $5,900,000 or 2.95%, and was fully compliant with the Tax Levy Limitation Law. FACTORS BEARING ON THE FUTURE OF DISTRICT

19 CITY SCHOOL DISTRICT OF WHITE PLAINS. NEW YORK STATEMENT OF NET POSITION JUNE 30, 2015 Current assets: Cash and cash equivalents: Unrestricted Restricted Investments: Unrestricted Restricted Receivables: Taxes, net Accounts receivable, net State and Federal aid Due from other governments Due from fiduciary funds Inventories Total current assets ASSETS Non-current assets: Non-depreciable capital assets Depreciable capital assets, net Proportionate share of net pension asset - NYSTRS Total non-current assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources - NYSTRS pension related Deferred outflows of resources - NYSTRS subsequent payments Deferred outflow of resources - NYSERS subsequent payments Deferred outflow of resources - NYSERS pension related Total deferred outflows of resources Total assets and deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Accrued liabilities Due to fiduciary funds Bond anticipation notes payable Due to other governments Due to teachers' retirement system Due to employees' retirement system Unearned revenues Accrued interest payable Non-current liabilities due within one year. Capital bonds payable, inclusive of premiums and discounts Tax certiorari bonds payable Energy performance contract debt payable Compensated absences Total current liabilities Non-current liabilities: Capital bonds payable, inclusive of premiums and discounts Tax certiorari bonds payable Energy performance contract debt payable Compensated absences Proportionate share of net pension liability - NYSERS Other post-employment benefits Total non-current liabililies Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources - NYSTRS pension related Grant monies received in advance Total deferred inflows of resources Total liabilities and deferred inflows of resources NET POSITION Net investment in capital assets Restricted: Tax certiorari Property loss Liability claims Future capital projects Capital Projects Fund Debt service Unrestricted Total net position Total liabilities, deferred inflows of resources and net position $ 19,698,885 19,064,155 24,900 62,771,622 1,095, ,454 10,245,367 3,353,582 25,088 83, ,542,097 11,267, , 182,340 60,793, ,243, ,785,622 19,987 14,262, , ,333 15,466,636 $ 327,252,258 $ 4,003, , ,859,637 1,647,467 14,858, ,830 46, ,583 2,604,428 1,815, , ,208 69,354,750 54,024,428 1,840,000 8,151,130 1,997,013 1,549,040 21,454,366 89,015, ,370,727 41,718,286 11,160 41,729, , 100, ,154,370 48,445,137 83, , ,050 30,280,894 1,844,708 18,786, , 152,085 $ 327,252,258 The accompanying notes to financial statements are an integral part of this statement. -16-

20 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION FOR THE YEAR ENDED JUNE 30, 2015 Functions and programs: General support Instruction Pupil transportation Debt service - interest School lunch program Expenses $ 24,592, ,739,003 9,509,771 3,131,247 3,815,789 $ Charges for Services 263,549 3,215,143 6,094 1,403,654 Program Revenues Operating Grants and Contributions $ 556,735 6,791,847 12,873 2,275,803 $ Capital Grants and Contributions Net (Expense) Revenue and Changes in Net Position $ (23,771,841) (137,732,013) (9,490,804) (3, 131,247) (136,332) Total functions and programs $ 188,787,935 $ 4,888,440 $ 9,637,258 $ ( 17 4,262,237) General revenues: Real property taxes Other real property tax items: School tax relief reimbursement Payments in lieu of taxes Interest and penalties on real property taxes Non-property tax items - Tax on consumer utility bills Unrestricted use of money and property - Interest and investment earnings Sale of property and compensation for loss State aid - unrestricted Federal aid - Medicaid Miscellaneous Total general revenues Change in net position Total net position, beginning of year, as restated (see Note 18) Total net position, end of year $ 148,352,069 17,549,594 9,569, ,865 3,794, ,845 62,387 21,060,018 70,236 1,458, ,588, ,325,941 98,826, , 152,085 The accompanying notes to financial statements are an integral part of this statement. -17-

21 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2015 ASSETS Capital Special Non-Major Total General Projects Aid Governmental Governmental Fund Fund Fund Funds Funds Cash and cash equivalents: Unrestricted $ 18,298,568 $ $ $ 1,400,317 $ 19,698,885 Restricted 3,736,088 13,251,425 2,076,642 19,064,155 Investments: Unrestricted 24,900 24,900 Restricted 45,379,923 17,029,469 62,409,392 Receivables: Taxes, net 1,095,666 1,095,666 Accounts receivable, net 63, , ,454 State and Federal aid 4,980,122 5,089, ,728 10,245,367 Due from other governments 3,353,582 3,353,582 Due from other funds 7,608, ,000 61,240 2,364,200 10,334,299 Due from fiduciary funds 25,088 25,088 Advances to other funds 449, ,691 Inventory 83,378 83,378 Total assets $ 85,015,838 $ ,894 $ 7,227,399 $ 4,139,726 $ 126,963,857 LIABILITIES Accounts payable $ 3,452,034 $ $ 538,946 $ 12,105 $ 4,003,085 Accrued liabilities 724,208 3,970 26, ,288 Due to other funds 269,650 1,944,859 6,673,323 1,446,467 10,334,299 Advances from other funds 449, ,691 Due to fiduciary funds Bond anticipation notes payable 41,859,637 41,859,637 Due to other governments 1,647,467 1,647,467 Due to teachers' retirement system 14,858,107 14,858,107 Due to employees' retirement system 639, ,830 Unearned revenues 2,702,561 46,552 2,749,113 Total liabilities 24,293,857 44,254,187 7,216,239 1,531,867 77,296,150 DEFERRED INFLOWS OF RESOURCES Grant monies received in advance 11, , 160 Property taxes 936, ,503 Total deferred inflows of resources 936,503 11, ,663 Total liabilities and deferred inflows of resources 25,230,360 44,254,187 7,227,399 1,531,867 78,243,813 FUND BALANCE Fund balance: Nonspendable 449,691 83, ,069 Restricted 49,116,011 30,280,894 1,814,358 81,211,263 Assigned 1,987, ,123 2,697,899 Unassigned 8,232,000 (43,954,187) (35,722, 187) Total fund balance (deficit) 59,785,478 (13,673,293) 2,607,859 48,720,044 Total liabilities, deferred inflows of resources and fund balance (deficit) $ 85,015,838 $ 30,51!(),!!94 $ 7,227,399 $ 4,139,726 $ 126,963,857 The accompanying notes to financial statements are an integral part of this statement. -18-

22 Total Fund Balance - Governmental Funds The accompanying notes to financial statements are an integral part of this statement Net Position - Governmental Activities Interest payable applicable to the District's governmental activities are not due and payable in the current period and accordingly are not reported in the fund financial statements. However, these liabilities are included in the Statement of Net Position. Revenue that was not accrued on the fund financial statements because it does not meet the availability criteria under the modified accrual basis of accounting is included in the Statement of Net Position: Investment income 362,230 Charges for services 1,000,614 State sources - homeless aid 1,701,947 Real property taxes 936,503 Deferred inflows of resources - NYSTRS pension related Proportionate share of net pension liability - NYSERS Long-term liabilities applicable to the District's governmental activities are not due and payable in the current period and accordingly are not reported in the fund financial statements. However, these liabilities are included in the Statement of Net Position: Capital bonds payable, inclusive of premiums and discounts (56,628,856} Tax certiorari bonds payable (3,655,000) Energy performance contract debt payable (8,807,380} Other post-employment benefits (21,454,366) Compensated absences (2,218,903) Deferred outflows of resources - NYSERS and NYSTRS pension related Proportionate share of net pension asset - NYSTRS Capital assets less accumulated depreciation are included in the Statement of Net Position: Capital assets: Non-depreciable $ 11,267,903 Depreciable 191,630,793 Accumulated depreciation (68,448,453) Amounts reported for governmental activities in the Statement of Net Position are different due to the following: CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30, 2015 $ 127,152,085 {247,583} 4,001,294 (41,718,286) (1,549,040) (92,764,505) 15,466,636 60,793, ,450,243 $ 48,720,044

23 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT) GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2015 REVENUES Capital Special Non-Major Total General Projects Aid Governmental Governmental Fund Fund Fund Funds Funds Real property taxes $ 148,324,874 $ $ $ $ 148,324,874 Other real property tax items 27,400,435 27,400,435 Non-property tax items 3,794,473 3,794,473 Charges for services 2,904,583 2,904,583 lnterfund revenues 79,250 79,250 Use of money and property 548, ,395 Sale of property and compensation for loss 62,387 62,387 State sources 21,539,624 3,940,857 62,737 25,543,218 Federal sources 70,236 3,420,598 2,213,066 5,703,900 Food sales 1,403,654 1,403,654 Miscellaneous sources 1,281, ,987 1,322,657 Total revenues 206,006, ,401,442 3,679, ,088,826 EXPENDITURES Current - General support 21,913,237 17,320 21,930,557 Instruction 104,952,342 6,836, , 788,342 Pupil transportation 8,837, ,381 9,441,629 Employee benefits 48,631, ,626 49,102,273 School lunch program 3,815,789 3,815,789 Current and future - Capital outlay 9,037,350 9,037,350 Debt service - Principal 7,436,580 7,436,580 Interest 3,436, 188 3,436,188 Total expenditures 195,207,242 9,037,350 7,928,327 3,815, ,988,708 Excess (deficiency) of revenues over (under) expenditures 10,799,458 (9,036,635) (526,885) (135,820) 1,100,118 OTHER FINANCING SOURCES (USES) lnterfund transfers in 2,000, ,885 2,527,035 lnterfund transfers out (2,527,035) (2,527,035) Total other financing sources (uses) (2,527,035) 2,000, ,885 Net change in fund balance 8,272,423 (7,036,485) (135,820) 1,100,118 Fund balance (deficit), beginning of year 51,513,055 (6,636,808) 2,743,679 47,619,926 Fund balance (deficit), end of year $ 59,785,478 $ (13,673,293) $ $ 2,607,859 $ 48,720,044 The accompanying notes to financial statements are an integral part of this statement. -20-

24 Net Change in Fund Balance - Governmental Funds $ 1,100,118 The accompanying notes to financial statements are an integral part of this statement Net Change in Net Position - Governmental Activities (Increases) decreases in the proportionate share of net pension asset/liability reported in the Statement of Activities does not provide for or require the use of current financial resources and therefore are not reported as revenues or expenditures in the governmental funds. Change in proportionate share of net pension asset - NYSTRS Change in deferred outflows of resources - NYSTRS and NYSERS pension related Change in deferred inflows of resources - NYSTRS and NYSERS pension related Change in proportionate share of net pension liability - NYSERS Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Judgments and claims payable Other post-employment benefits Compensated absences Amortization of bond issue premiums and discounts, net Accrued interest costs The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net position. Repayment of capital bonds payable Repayment of tax certiorari bonds payable Repayment of energy performance contract debt payable Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the governmental funds. Change in fair value of investments Charges for services State sources - homeless aid Real property taxes Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The amount by which capital outlay exceeds depreciation in the current period is: Capital outlay $ Depreciation expense $ 28,325,941 57,178,545 1,739,190 (41,718,286) 523,011 17,722,460 3,018 (2,377,831) (20,844) 174, ,513 (2,090,716) 5,010,000 1,795, ,580 7,436, , ,231 (479,606) 27,195 25,050 9,322,697 (5, 190,248) 4,132,449 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2015

25 ASSETS Trusts The accompanying notes to financial statements are an integral part of this statement Total liabilities and net position $ 888, 110 Total net position 888, 110 Restricted: Endowment scholarships 888, 110 NET POSITION Total liabilities Extraclassroom activity balances $ Other liabilities Due to governmental funds LIABILITIES Total assets $ 888, 110 Cash: Restricted $ 436,649 Investments: Restricted 451,461 Due from governmental funds CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK STATEMENT OF FIDUCIARY NET POSITION - FIDUCIARY FUNDS JUNE 30, 2015 $ 421,760 $ 190, ,287 25,088 $ 421, $ 421, 127 Scholarship Agency Funds

26 ADDITIONS Scholarship Trusts The accompanying notes to financial statements are an integral part of this statement Net position, end of year $ 888, 110 Net position, beginning of year 804,188 Change in net position 83,922 Total deductions 51,388 Scholarships and awards 51,388 DEDUCTIONS Total additions 135,310 Contributions $ 135,000 Investment earnings: Interest 310 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - FIDUCIARY FUNDS FOR THE YEAR ENDED JUNE 30, 2015

27 1. SUMMARY OF CERTAIN SIGNIFICANT ACCOUNTING POLICIES -24- The District is a component district in the Southern Westchester Board of Cooperative Educational Services ("BOCES"). BOCES is a voluntary, cooperative association of school districts in a geographic area that shares planning, services and programs that provide educational and support activities. There is no authority or process by which a school district can terminate its status as a BOCES component. C. Joint venture The Extraclassroom Activity Funds of the District represent funds of the students of the District. The Board of Education exercises general oversight of these funds. The Extraclassroom Activity Funds are independent of the District with respect to its financial transactions and the designation of student management. Separate audited financial statements (cash basis) of the Extraclassroom Activity Funds can be found elsewhere in this report. The District accounts for assets held as an agent for various student organizations in an agency fund. B. Extraclassroom Activity Funds The accompanying financial statements present the activities of the District. The District is not a component unit of another reporting entity. The decision to include a potential component unit in the District's reporting entity is based on several criteria including legal standing, fiscal dependency, and financial accountability. The reporting entity of the District is based upon criteria set forth by GASB. The financial reporting entity consists of the primary government, organizations for which the primary government is financially accountable and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The District is governed by the laws of New York State. The District is an independent entity governed by an elected Board of Education consisting of seven members. The President of the Board serves as the chief fiscal officer and the Superintendent is the chief executive officer. The Board is responsible for, and controls all activities related to public school education within the District. Board members have authority to make decisions, power to appoint management and primary accountability for all fiscal matters. A. Reporting entity The financial statements of the City School District of White Plains, New York (the "District") have been prepared in conformity with generally accepted accounting principles ("GAAP") as applied to government units. Those principles are prescribed by the Governmental Accounting Standards Board ("GASB"), which is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Significant accounting principles and policies used by the District are described below: CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2015

28 -25- The fund financial statements provide financial information about the District's funds, including fiduciary funds. Separate financial statements for each fund category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. 2. Fund financial statements The Statement of Activities presents a comparison between program expenses and revenues for each function of the District's governmental activities. Direct expenses are those that are specifically associated with and are clearly identifiable to a particular function. Indirect expenses, principally employee benefits, are allocated to functional areas in proportion to the payroll expended for those areas. Program revenues include charges paid by the recipients of goods or services offered by the programs, and grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. The Statement of Net Position and the Statement of Activities present financial information about the District's governmental activities. These financial statements include the financial activities of the overall government in its entirety, except those that are fiduciary. Eliminations have been made to minimize the double counting of internal transactions. Governmental activities generally are financed through taxes, State aid (sources), intergovernmental revenues, and other exchange and nonexchange transactions. Operating grants include operating-specific and discretionary (either operating or capital) grants, while the capital grants column reflects capital-specific grants. 1. District-wide financial statements D. Basis of presentation Financial statements for the BOCES are available from the BOCES administrative office. The District's share of BOCES aid amounted to $2,574,235. During the year, the District was billed $11,805,607 for BOCES administrative and program costs. A BOCES' budget is comprised of separate budgets for administrative, program and capital costs. Each component district's share of administrative and capital cost is determined by resident public school district enrollment, as defined in the New York State Education Law, 1950(4)(b)(7). In addition, component districts pay tuition or a service fee for programs in which its students participate. BOC ES are organized under 1950 of the New York State Education Law. A BOCES Board is considered a corporate body. Members of a BOCES Board are nominated and elected by their component member boards in accordance with provisions of 1950 of the New York State Education Law. All BOCES property is held by the BOCES Board as a corporation ( 1950(6)). In addition, BOCES Boards also are considered municipal corporations to permit them to contract with other municipalities on a cooperative basis under 119-n(a) of the New York State General Municipal Law.

29 General Fund: This is the District's primary operating fund. It accounts for all financial transactions that are not required to be accounted for in another fund. Capital Projects Fund: These funds are used to account for the financial resources used for acquisition, construction, or major repair of capital facilities Agency funds: These funds are strictly custodial in nature and do not involve the measurement of results of operations. Assets are held by the District as agent for various student groups or extraclassroom activity funds and for payroll or employee withholding. Private purpose trust funds: These funds are used to account for trust arrangements in which principal and income benefit annual third party awards and scholarships for students. Established criteria govern the use of the funds and members of the District or representatives of the donors may serve on committees to determine who benefits. Fiduciary activities are those in which the District acts as trustee or agent for resources that belong to others. These activities are not included in the Districtwide financial statements, because their resources do not belong to the District, and are not available to be used. There are two classes of fiduciary funds: Fiduciary Funds The District reports the following fiduciary funds: Debt Service Fund: This fund accounts for the accumulation of resources and the payment of principal and interest on long-term general obligation debt of governmental activities. When a capital asset is sold and all or a portion of the bonds used to finance the capital asset are outstanding, this fund must be used to account for the proceeds from the sale of capital assets up to the balance of related bonds outstanding. Special Revenue Funds: These funds account for the child nutrition and other activities whose funds are restricted as to use. The non-major special revenue fund of the District is the School Lunch Fund, which is used to record the operations of the breakfast and lunch programs of the District. The District also reports the following non-major governmental funds: Special Revenue Funds: These funds account for the proceeds of specific revenue sources, such as Federal and State grants, that are legally restricted to expenditures for specified purposes. The major special revenue fund of the District is the Special Aid Fund. These legal restrictions may be imposed either by governments that provide the funds, or by outside parties. The District reports the following major governmental funds:

30 Accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the District's policy concerning which to apply first varies with the intended use, and with associated legal requirements, many of which are described elsewhere in these Notes. G. Restricted resources The City guarantees the full payment of the District's warrant and assumes responsibility for the uncollected taxes. On or after January 31 5 \ the District submits a statement of unpaid taxes to the City. The City remits, as collected, the unpaid taxes and within two years of the receipt of the statement, any balance due. Real property taxes, for the City of White Plains residents, are levied annually by the Board of Education during the month of July and become payable (enforceable lien} in July and January. This portion of the District's tax levy is collected by the City of White Plains (the "City"} and remitted to the District. F. Property taxes Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. The fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The District considers all revenues reported in the governmental funds to be available if the revenues are collected within a reasonable period of time after the end of the fiscal year, except for real property taxes, which are considered to be available if they are collected within 60 days after the end of the fiscal year. Fees and other similar revenues are not susceptible to accrual because generally they are not measurable until available. If expenditures are the prime factor for determining eligibility, revenues from Federal and State grants are accrued when the expenditure is made. The District-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash transaction takes place. Nonexchange transactions, in which the District gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. E. Measurement focus and basis of accounting

31 The operations of the District include transactions between funds. These transactions may be temporary in nature, such as with interfund borrowings. The District typically loans resources between funds for the purpose of providing cash flow. These interfund receivables and payables are expected to be repaid within one year. Permanent transfers of funds include the transfer of expenditures and revenues to provide financing or other services. Collateral is required for demand and time deposits and certificates of deposit not covered by FDIC insurance. Obligations that may be pledged as collateral are obligations of the United States and its agencies and obligations of the State and its municipalities and school districts New York State law governs the District's investment policies. Resources must be deposited in Federal Deposit Insurance Corporation ("FDIC") insured commercial banks or trust companies located within the State. Permissible investments include obligations of the United States Treasury, United States Agencies, repurchase agreements and obligations of New York State or its localities. The District's cash and cash equivalents consist of cash on hand, demand deposits, and short-term investments with original maturities of three months or less from date of acquisition. J. Cash and cash equivalents The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are made in a variety of areas, including computation of encumbrances, compensated absences, potential contingent liabilities and useful lives of long-lived assets. I. Estimates Refer to Note 7 for a detailed disclosure by individual fund for interfund receivables, payables, expenditures and revenues activity. The governmental funds report all interfund transactions as originally recorded. lnterfund receivables and payables may be netted on the accompanying governmental funds Balance Sheet when it is the District's practice to settle these amounts at a net balance based upon the right of legal offset. In the District-wide financial statements, the amounts reported on the Statement of Net Position for interfund receivables and payables represent amounts due between different fund types (governmental activities and fiduciary funds). Eliminations have been made for all interfund receivables and payables between the funds, with the exception of those due from or to the fiduciary funds. Advances to/from other funds represent loans to other funds which are not expected to be repaid within the subsequent year. The advances are offset by nonspendable fund balance in the fund financial statements, which indicates that the funds are not "available" for appropriation and are not expendable available financial resources. H. lnterfund transactions

32 The District participates in the Cooperative Liquid Assets Securities System ("CLASS") a cooperative investment pool established pursuant to General Municipal Law that meets the definition of a 2a7-like pool. In accordance with the provisions of General Municipal Law, Article 3A, CLASS has designated Cutwater Asset Management, a wholly owned subsidiary of Municipal Bond Insurance Association ("MBIA"), Inc. as its registered investment advisor. MBIA, Inc. is registered with the Securities and Exchange Commission ("SEC"), and is subject to all rules and regulations of an investment advisor handling public funds. As such, the SEC provides regulatory oversight of CLASS Inventory of food in the School Lunch Fund is recorded at cost on a first-in, first-out basis, or in the case of surplus food, at stated value which approximates market. Purchases of inventoriable items in other funds are recorded as expenditures at the time of purchase, and are considered immaterial in amount. M. Inventory and prepaid items Accounts receivable are shown gross, with uncollectible amounts recognized under the direct write-off method. No allowance for uncollectible accounts has been provided since it is believed that such allowance would not be material. L. Accounts (other) receivable Investments are stated at fair value. The District also invests in obligations of the United States (i.e. U.S. Treasury Strips). Obligations of the United States are permissible municipal investments in New York State. These obligations are backed by the full faith and credit of the United States. CLASS and NYLAF are rated AAAm by Standard and Poor's Rating Service. Local government investment cooperatives in this rating category meet the highest standards for credit quality, conservative investment policies and safety of principal. The pools invest in a high quality portfolio of investments legally permissible for municipalities and school districts in the State. The pools are authorized to invest in various securities issued by the United States and its agencies. The amounts represent the amortized cost of the cooperative shares and are considered to approximate fair value. The District's position in the pools is equal to the value of the pool shares. Additional information concerning the CLASS is presented in the annual report which may be obtained from MBIA Municipal Investors Service Corporation, 113 King Street, Armonk, NY Additional information concerning the NYLAF is presented in the annual report, which may be obtained from the Governing Board c/o Bankers Trust Company, N.A th Street, Des Moines, Iowa The District also participates in the New York Liquid Assets Fund ("NYLAF") established pursuant to General Municipal Law that meets the definition of a 2a7-like pool. The sponsoring agency of the pool is another governmental unit, which acting through the fiscal officer, is primarily responsible for executing the provisions of the cooperative agreement. K. Investments

33 A portion of the fund balance in the amount of these non-liquid assets (inventory and prepaid items) has been identified as not available for other subsequent expenditures Capitalization Depreciation Estimated Threshold Method Useful Life Buildings and building improvements $ 10,000 Straight line years Improvements other than buildings $ 10,000 Straight line years Furniture and equipment $ 10,000 Straight line 5-15 years Capitalization thresholds (the dollar value above which asset acquisitions are added to the capital asset accounts), depreciation methods, and estimated useful lives of capital assets reported in the District-wide financial statements are as follows: Capital assets are reported at actual cost for acquisitions subsequent to June 30, For assets acquired prior to June 30, 1975, estimated historical costs, based on appraisals conducted by independent third-party professionals were used. Donated assets are reported at estimated fair market value at the time received. 0. Capital assets Debt (bond) issuance costs, except any portion related to prepaid insurance costs, should be recognized as an expense in the period incurred on both the District-wide and fund financial statements. On the District-wide financial statements, prepaid insurance costs should be reported as an asset and recognized as an expense in a systematic rational manner over the duration of the related debt. Certain proceeds from serial bonds and bond anticipation notes, as well as resources set aside for their repayment are classified as restricted assets in the District-wide financial statements as their use is limited by applicable bond covenants. N. Other assets/restricted assets Prepaid items represent payments made by the District for which benefits extend beyond year-end. These payments to vendors reflect costs applicable to future accounting periods and may be recorded as prepaid items in both the District-wide and fund financial statements. These items are reported as assets on the Statement of Net Position or Balance Sheet using the consumption method. A current asset for the prepaid amounts is recorded at the time of purchase and an expense/expenditure is reported in the year the goods or services are consumed.

34 District employees are granted vacation in varying amounts, based primarily on length of service and service position. Some earned benefits may be forfeited if not taken within varying time periods Sick leave eligibility and accumulation is specified in negotiated labor contracts, and in individual employment contracts. Upon retirement, resignation or death, employees may contractually receive a payment based on unused accumulated sick leave. Compensated absences consist of unpaid accumulated annual sick leave, vacation and sabbatical time. S. Vested employee benefits - compensated absences The District reports unearned revenues on its Statement of Net Position and its Balance Sheet. On the Statement of Net Position and Balance Sheet, unearned revenue arises when resources are received by the District before it has legal claim to them, as when grant monies are received prior to incurrence of qualifying expenditures. In subsequent periods, when the District has legal claim to resources, the liability for unearned revenue is removed and revenue is recognized. R. Unearned revenues In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District has various items that qualify for reporting in this category. This may arise under the modified accrual basis of accounting and may be reported as unavailable revenue - property taxes. This may also arise when reporting on pensions in the Districtwide Statement of Net Position. This represents the effect of the net change in the District's proportion of the collective net pension liability and difference during the measurement periods between the District's contributions and its proportionate share of total contributions to the pension systems not included in pension expense. Deferred inflows of resources may be recognized when bonds are refunded prior to their maturity dates. Q. Deferred inflows of resources In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government has three items that qualify for reporting in this category. First is the deferred charge on refunding reported in the District-wide Statement of Net Position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter pf the life of the refunded or refunding debt. The second item is related to pensions reported in the District-wide Statement of Net Position. This represents the effect.of the net change in the District's proportion of the collective net pension asset or liability and difference during the measurement period between the District's contributions and its proportion share of total contributions to the pension systems not included in pension expense. Lastly is the District contributions to the pension systems (New York State Employees' Retirement System ("NYSERS") and New York State Teachers' Retirement System ("NYSTRS")) subsequent to the measurement date. P. Deferred outflows of resources

35 -32- The District may issue Bond Anticipation Notes ("BAN"), in anticipation of proceeds from the subsequent sale of bonds. These notes are recorded as current liabilities of the funds that will actually receive the proceeds from the issuance of bonds. State law requires that BAN's issued for capital purposes to be converted to long-term financing within five years after the original issue date. The District may issue budget notes up to an amount not to exceed 5% of the amount of the annual budget during any fiscal year for expenditures for which there is an insufficient or no provision made in the annual budget. The budget note must be repaid no later than the close of the second fiscal year succeeding the year in which the note was issued. The District may issue Revenue Anticipation Notes ("RAN") and Tax Anticipation Notes ("TAN"}, in anticipation of the receipt of revenues. These notes are recorded as a liability of the fund that will actually receive the proceeds from the issuance of the notes. The RAN's and TAN's represent a liability that will be extinguished by the use of expendable, available resources of the fund. U. Short-term debt In addition to providing pension benefits, the District provides post-employment health insurance coverage and survivor benefits to retired employees and their survivors in accordance with the provisions of various employment contracts in effect at the time of retirement. Substantially all of the District's employees may become eligible for these benefits if they reach normal retirement age while working for the District. Health care benefits are provided through plans whose premiums are based on the benefits paid during the year. The cost of providing post-retirement benefits is shared between the District and the retired employee. The District recognizes the cost of providing health insurance by recording its share of insurance premiums as an expenditure. District employees participate in the New York State Employees' Retirement System and the New York State Teachers' Retirement System. T. Other benefits Civil service employees may accumulate an unlimited number of days for sick and personal leave. Upon retirement, those employees with at least twenty years of service with the District will receive $40 for each unused sick or personal day earned in the six year period immediately preceding retirement. Retiring teachers who have completed at least twelve years of service with the District, at the time of retirement, receive an amount equal to fifty percent of accrued sick leave or 125 days, whichever is less, at the per diem rate of $60. Retiring administrators who have completed at least seven years of service with the District, at the time of retirement, will receive $75 for 50% of accrued sick days to a maximum of 125 days. In addition, retiring teachers and administrators shall receive $60 and $75, respectively, per day for each unused sick and personal day accrued during the last three years immediately preceding retirement. Vacation time is generally taken within the year earned. However, civil service employees and administrators, upon separation of service from the District, will be compensated for unused vacation time as provided in their contract. The value of the compensated absences has been reflected in the Districtwide financial statements. Consistent with GASB Pronouncements, the liability has been calculated using the vesting/termination method and an accrual for that liability is included in the financial statements. The compensated absences liability is calculated based on the pay rates in effect at year-end.

36 As of June 30, 2015, the District does not have any outstanding RAN's, TAN's or deficiency notes. See Note 10 for additional disclosure regarding the District's outstanding short-term debt Unrestricted: Is the amount of assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted components of net position, and is deemed to be available for general use by the District. 2. Restricted net position: Consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Generally, a liability relates to restricted assets if the asset results from a resource flow that also results in the recognition of a liability or if the liability will be liquidated with the restricted assets reported. 1. Net investment in capital assets: Consists of capital assets, net of accumulated depreciation, reduced by outstanding balances of related debt obligations from the acquisition, construction or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction or improvement of those assets or related debt also should be included in this component of net position. If there are significant unspent related debt proceeds or deferred inflows of resources at the end of the reporting period, the portion of the debt or deferred inflows of resources attributable to the unspent amount should not be included in the calculation of net investment in capital assets. Instead, that portion of the debt or deferred inflow of resources should be included in the same net position component (restricted or unrestricted) as the unspent amount. In the District-wide financial statements there are three classes of net position: District-wide financial statements W. Equity classifications Long-term obligations represent the District's future obligations or future economic outflows. The liabilities are reported as due in one year or due within more than one year in the Statement of Net Position. Payables, accrued liabilities and long-term obligations are reported in the District-wide financial statements. In the governmental funds, payables and accrued liabilities are paid in a timely manner and in full from current financial resources. Claims and judgments and other post-employment benefits that will be paid from governmental funds, are reported as a liability in the fund financial statements only to the extent they are due for payment in the current year. Bonds and other long-term obligations that will be paid from governmental funds are recognized as a liability in the fund financial statements when due. V. Accrued liabilities and long-term obligations The District may issue deficiency notes up to an amount not to exceed 5% of the amount of that same year's annual budget in any fund or funds arising from revenues being less than the amount estimated in the budget for that fiscal year. The deficiency notes may mature no later than the close of the fiscal year following the fiscal year in which they were issued. However, they may mature no later than the close of the second fiscal year after the fiscal year in which they were issued, if the notes were authorized and issued after the adoption of the budget for the fiscal year following the year in which they were issued.

37 In the fund financial statements there are five classifications of fund balance: 1. Nonspendable - Includes amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact. Nonspendable fund balance includes advances recorded in the General Fund of $449,691 and the inventory recorded in the School Lunch Fund of $83, Restricted - Includes amounts with constraints placed on the use of resources -34- According to General Municipal Law 6-1, the Mandatory Reserve for Debt Service must be established for the purpose of retiring the outstanding obligations upon the sale of District property or capital improvement that was financed by obligations that remain outstanding at the time of sale. The funding of the reserve is from the proceeds of the sale of District property or capital improvement. Debt Service According to Education Law 3651, must be used to pay the cost of any object or purpose for which bonds may be issued. The creation of a capital reserve requires authorization by a majority of the voters establishing the purpose of the reserve; the ultimate amount, its probable term and the source of the funds. Expenditures may be made from the reserve only for a specific purpose further authorized by the voters. The form for the required legal notice for the vote on establishing and funding the reserve and the form of the proposition to be placed on the ballot are set forth in 3651 of the Education Law. This reserve is accounted for in the General Fund under Restricted Fund Balance. According to Education Law 1709(8)(c), must be used to pay for liability claims and property loss incurred. Separate funds for liability claims and property loss are required, and these reserves may not in total exceed 3% of the annual budget or $15,000, whichever is greater. This type of reserve fund may be utilized only by school districts with a population under 125,000. Capital Liability Claims and Property Loss According to Education Law a, must be used to establish a reserve fund for tax certiorari and can be expended without voter approval. The monies held in the reserve shall not exceed the amount that might reasonably be deemed necessary to meet anticipated judgments and claims arising out of tax certiorari proceedings. Any resources deposited to the reserve which are not expended for tax certiorari proceedings in the year such monies are deposited must be returned to the General Fund on or before the first day of the fourth fiscal year after deposit of these monies. Tax Certiorari either externally imposed by creditors, granters, contributors, or laws or regulations of other governments; or imposed by law through constitutional provisions or enabling legislation. The District has established the following restricted fund balances: Fund financial statements

38 Encumbrance accounting, under which purchase orders, contracts and other reserve applicable appropriations, is employed as a control in preventing overexpenditure of established appropriations. Open encumbrances are reported as either restricted, committed or assigned fund balance to the extent to which purpose limitations have been established regarding use of the amounts. Encumbrances do not constitute expenditures or liabilities and will be honored through budget appropriations in the subsequent year Total $ 59,785,478 $ (13,673,293) $ 2,607,859 $ 48,720,044 Unassigned 8,232,000 (43,954,187} {35,722, 187} Total assigned 1,987, ,123 2,697,899 Assigned School Lunch Fund 710, , 123 Encumbrances 1,987,776 1,987,776 Total restricted 49, 116,011 30,280,894 1,814,358 81,211,263 Restricted Tax certiorari 48,445,137 48,445,137 Property loss 83,439 83,439 Liability claims 260, ,035 Capital 297, ,050 Capital projects 30,280,894 30,280,894 Debt service 30,350 1,814,358 1,844,708 Total nonspendable 449,691 83, ,069 Nonspendable Non-major Total Governmental Governmental General Caeital Projects Funds Funds Inventory $ $ $ 83,378 $ 83,378 Advances 449, , Committed: Includes amounts that are subject to a purpose constraint imposed by a formal action of the District's highest level of decision-making authority before the end of the fiscal year, and that require the same level of formal action to remove the constraint. The Board of Education is the decision-making authority that can, by Board resolution, commit fund balance. The District has no committed fund balances as of June 30, Assigned - Includes amounts that are subject to a purpose constraint that represents an intended use established by the District's highest level of decisionmaking authority, or by their designated body or official. They also include amounts that are constrained by the District's intent to be used for specific purposes, but are neither restricted nor committed. The purpose of the assignment must be narrower than the purpose of the General Fund. All encumbrances of the General Fund are classified as assigned fund balance as of June 30, 2015, based on the fact that there are no restricted resources on hand to liquidate them, and amounted to $1,987,776. The remaining amount of assigned fund balance consisted of the School Lunch Fund fund balance of $710, Unassigned - Includes all other General Fund fund balance that does not meet the definition of the above four classifications and is deemed to be available for general use by the District. Fund balances for all governmental funds as of June 30, 2015 were distributed as follows: Encumbrances

39 Capital Projects Fund Deficit -36- Differences between the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balance and the Statement of Activities fall into one of four broad categories. The categories are shown below: B. Statement of Revenues, Expenditures and Changes in Fund Balance vs. Statement of Activities Total fund balances of the District's governmental funds differ from "net position" of governmental activities reported in the Statement of Net Position. This difference primarily results from the additional long-term economic focus of the Statement of Net Position versus the solely current financial resources focus of the governmental funds Balance Sheets. A Total fund balances of governmental funds vs. net position of governmental activities Due to the differences in the measurement focus and basis of accounting used in the fund financial statements and the District-wide financial statements, certain financial transactions are treated differently. The basic financial statements contain a full reconciliation of these items. The differences result primarily from the economic focus of the District-wide financial statements, compared with the current financial resources focus of the governmental funds. 2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN FUND FINANCIAL STATEMENTS AND DISTRICT-WIDE FINANCIAL STATEMENTS The District's policy is to apply expenditures against nonspendable fund balance, restricted fund balance, committed fund balance, assigned fund balance and unassigned fund balance at the end of the fiscal year. For all funds, nonspendable fund balances are determined first and then restricted fund balances for specific purposes are determined. Any remaining fund balance amounts for funds other than the General Fund are classified as either restricted or assigned fund balance. In the General Fund, committed fund balance is determined next and then assigned. The remaining amounts are reported as unassigned. Assignments of fund balance cannot cause a negative unassigned fund balance. Order of Use of Fund Balance The unassigned deficit of $43,954, 187 in the Capital Projects Fund arises in-part because of the application of generally accepted accounting principles to the financial reporting of such funds. The proceeds of bond anticipation notes issued to finance construction of capital projects are not recognized as "other financing sources". Liabilities for bond anticipation notes payable are accounted for in the Capital Projects Fund. Bond anticipation notes are recognized as revenue only to the extent that they are redeemed. This deficit will be reduced and eliminated as bond anticipation notes are redeemed from interfund transfers from other governmental funds or converted to permanent financing. Other deficits, where no bond anticipation notes are outstanding to the extent of the deficit, arise from expenditures exceeding current financing on the project. These deficits will be eliminated with the receipt or issuance of authorized financing. NYS Real Property Tax Law 1318 limits the amount of unexpended surplus funds a school district can retain to no more than 4% of the school district's budget for the General Fund for the ensuing fiscal year. Nonspendable and restricted fund balance of the General Fund are excluded from the 4% limitation. Amounts appropriated for the subsequent year and encumbrances are also excluded from the 4% limitation.

40 Long-term revenue differences arise because governmental funds report revenues only when they are considered "available", whereas the Statement of Activities reports revenues when earned. Differences in long-term expenses arise because governmental funds report on a modified accrual basis, whereas the accrual basis of accounting is used on the Statement of Activities. 2. Capital related differences 1. At least seven days prior to the budget hearing, a copy of the budget is made available to the voters A. Budgetary data The District administration prepares a proposed budget for approval by the Board of Education for the following governmental funds for which legal (appropriated) budgets are adopted: 4. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY For the year ended June 30, 2015, the District implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions (Amendment to GASB Statement No. 27) and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. The implementation of the Statements requires the District to report as an asset and/or liability its portion of the collective net pension's asset and liability in the NYSERS and NYSTRS systems. The implementation of the Statements also requires the District to report a deferred outflow and/or inflow for the effect of the net change in the District's proportion of the collective net pension asset and/or liability and difference during the measurement period between the District's contributions and its proportionate share of total contributions to the pension systems not included in pension expense. Also included as a deferred outflow is the District contributions to the pension systems subsequent to the measurement date. See Note 18 for the financial statement impact of implementation of these Statements. 3. CHANGE IN ACCOUNTING PRINCIPLE Pension differences occur as a result of changes in the District's proportion of the collective net pension asset/(liability) and differences between the District's contributions and its proportionate share of the total contributions to the pension systems. 4. Pension differences Long-term debt transaction differences occur because both interest and principal payments are recorded as expenditures in the fund financial statements, whereas interest payments are recorded in the Statement of Activities as incurred, and principal payments are recorded as a reduction of liabilities in the Statement of Net Position. 3. Long-term debt transaction differences Capital related differences include the difference between proceeds from the sale of capital assets reported, on fund financial statements and the gain or loss on the sale of assets as reported on the Statement of Activities, and the difference between recording an expenditure for the purchase of capital items in the fund financial statements and depreciation expense on those items as recorded in the Statement of Activities. 1. Long-term revenue/expense differences

41 3. The Board of Education establishes a date for the annual meeting, which by law will be held on the third Tuesday in May Budgeted amounts are as originally adopted or as amended by the Board of Education. Budgets 9. Appropriations in the General Fund lapse at the end of the fiscal year, except that outstanding encumbrances are reappropriated in the succeeding year pursuant to the Uniform System of Accounts promulgated by the Office of the State Comptroller. 8. The Board of Education has established legal control of the budget at the function level of expenditures. Transfers between appropriation accounts, at the function level, require approval by the Board of Education. Any modification to appropriations resulting from increases in revenue estimates or supplemental reserve appropriations also require a majority vote by the Board. 7. The General Fund budget is legally adopted annually on a basis consistent with generally accepted accounting principles. The Capital Projects Fund is budgeted on a project basis. Budgets are established and used for the individual capital project funds expenditures as approved by a special referendum of the District's voters. The maximum project amount authorized is based primarily upon the cost of the project, plus any requirements for external borrowings, not annual appropriations. These budgets do not lapse and are carried over to subsequent fiscal years until the completion of the projects. An annual budget is not adopted for the Special Aid Fund, School Lunch Fund or Debt Service Fund. 6. Formal budgetary integration is employed during the year as a management control device for the General Fund. 5. If the original proposed budget is not approved by the voters, the Board of Education has the option of either resubmitting the original or revising the budget for voter approval at a special meeting held at a later date; or the Board of Education may, at that point, adopt a contingency budget. If the Board of Education decides to submit either the original or a revised budget to the voters for a second time, and the voters do not approve the second budget submittal, the Board of Education must adopt a contingency budget and the tax levy cannot exceed the total tax levy of the prior year (0% levy growth). In addition, the administrative component of the contingency budget shall not comprise a greater percentage of the contingency budget exclusive of the capital component than the lesser of either 1) the percentage the administrative component had comprised in the prior year budget exclusive of the capital component; or 2) the percentage the administrative component had comprised in the last proposed defeated budget exclusive of the capital component. 4. The voters are permitted to vote upon the General Fund budget at the annual meeting. 2. At the budget hearing, the voters may raise questions concerning the items contained in the budget. Prior to the budget hearing, several public forums and workshops are held by the District. These public forums and workshops are designed to supplement the annual statutory budget hearing in educating voters to inform themselves and to contribute to the District's budget process.

42 Appropriations are adopted at the program line item level For purposes of reporting cash flow, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash and near their maturity. The written investment policy requires repurchase agreements to be purchased from banks located within the State and that underlying securities must be obligations of the federal government. Underlying securities must have a market value of at least 105 percent of the cost of the repurchase agreement. Collateral is required for demand deposits and certificates of deposit at 105 percent of all deposits not covered by federal deposit insurance. Obligations that may be pledged as collateral are obligations of the United States and its agencies and obligations of the State and its municipalities. The District's investment policies are governed by State statutes. In addition, the District has its own written investment policy. District monies must be deposited in FDIC insured commercial banks or trust companies located within the State. The District Treasurer is authorized to use demand accounts and certificates of deposit. Permissible investments include obligations of the U.S. Treasury and U.S. agencies, repurchase agreements and obligations of New York State or its localities. Encumbrance accounting is used for budget control and monitoring purposes and is reported as a part of the governmental funds. Under this method, purchase orders, contracts and other commitments for the expenditure of monies are recorded to reserve applicable appropriations. Outstanding encumbrances as of year-end are presented as restrictions or assignments of fund balance and do not represent expenditures or liabilities. These commitments will be honored in the subsequent period. Related expenditures are recognized at that time, as the liability is incurred or the commitment is paid. 5. CASH AND CASH EQUIVALENTS AND INVESTMENTS - CUSTODIAL CREDIT, CONCENTRATION OF CREDIT, INTEREST RATE AND FOREIGN CURRENCY RISKS Encumbrances Microsoft settlement revenues received $ 340,073 The following supplemental appropriations occurred during the year: Appropriations established by the adoption of the budget constitute a limitation on expenditures (and encumbrances) that may be incurred. Appropriations lapse at the end of the fiscal year unless expended or encumbered. Encumbrances will lapse if not expended in the subsequent year. Appropriations authorized for the current year are increased by the planned use of specific reserves, and budget amendments are approved by the Board of Education as a result of selected new revenue sources not included in the original budget (when permitted by law). These supplemental appropriations may occur subject to legal restrictions, if the Board approves them because of a need that exists which was not determined at the time the budget was adopted. The voters of the District approved the proposed appropriation budget for the General Fund.

43 GASB directs that deposits be disclosed as exposed to custodial credit risk if they are not covered by depository insurance, and the deposits are either: -40- Interest-rate risk: Interest-rate risk arises because potential purchasers of debt securities will not agree to pay face value for those securities if interest rates substantially increase, thereby affording potential purchasers more favorable rates on essentially equivalent securities. Accordingly, such investments would have to be held to maturity to avoid potential loss. *These obligations are backed in full faith and credit by the United States. Total investments $ 62,796, % U.S. government fixed income investments* 44, 176, % Total credit risk investments 18,620, % AAAm $ 18,620, % Balance Percentage Quality rating Fair Value of portfolio Credit risk: State law limits investments to those authorized by State statutes. The District has a written investment policy. The quality ratings of investments are as follows: $ 46,897,316 $ 39,620,816 Major Governmental Funds: General Fund Capital Projects Fund Special Aid Fund Non-major Governmental Fund: School Lunch Fund Fiduciary Funds $ 25,747, ,478,421 2,784,959 1,544,982 1,341,800 $ 22,034,656 13,251,425 2,076,642 1,400, ,776 Fund Bank Balance Carrying Amount Deposits and investments at year-end were entirely covered by federal depository insurance or by collateral held by the District's custodial banks in the District's name. They consisted of: Uncollateralized Collateralized with securities held by the pledging financial institution, or Collateralized with securities held by the pledging financial institution's trust department or agent but not in the District's name Custodial credit risk - deposits/investments: Custodial credit risk for deposits exists when, in the event of the failure of a depository financial institution, a government may be unable to recover deposits, or recover collateral securities that are in possession of an outside agency. Custodial credit risk for investments exists when, in the event of the failure of the counterparty, a government will not be able to recover the value of its investments or collateral securities that are in possession of an outside party.

44 Less Than Fair Value 1 Year U.S. Government fixed income $ 44,176,190 $ Domestic fixed income 18,500,000 18,500,000 Short-term 120, ,332 $ 62,796,522 $ 18,620,332 Investment Maturities {in years) Years Years $ 44,176,190 $ $ 44, 176, 190 $ $ $ Over 10 Years -41- $ 1,095,666 Other receivables at June 30, 2015, consisted of the following: General Fund: Taxes receivable - Current year Prior years $ 809, ,505 B. Other receivables Totals $ 10,245,367 Non-major Governmental Fund: School Lunch Fund: School breakfast and lunch reimbursement 175,728 Special Aid Fund: State and Federal grants 5,089,517 Major Governmental Funds: General Fund: Homeless aid BOCES aid Tax on consumer utility bills New York State Aid - excess cost aid Other $ 1,701,947 2,005, , ,473 76,540 Due from State and Federal aid at June 30, 2015, consisted of the following: A. State and Federal aid Concentration of credit risk: Credit risk can arise as a result of failure to adequately diversify investments. Concentration risk disclosure is required for positions of 5 percent or more in securities of a single issuer. Obligations issued or explicitly guaranteed by the United State government and pooled investments are permissible investments and are excluded from this regulation, which is what the District's portfolio is made up of. Restricted cash represents cash and cash equivalents where use is limited by legal reserve requirements. In the event legally restricted reserves exceeds restricted cash and cash equivalents, investments may be utilized to satisfy the legal reserve requirements. These assets represent amounts required by statute to be reserved for various purposes. 6. RECEIVABLES The District is exposed to interest-rate risk as follows:

45 Major Funds: lnterfund lnterfund Receivable Payable Revenues Ex12enditures General Fund $ 8,083,638 $ 269,650 $ $ 2,527,035 Capital Projects Fund 300,000 2,394,550 2,000, Total capital assets, net $ 130,317,794 $ 4,132,449 $ $ 134,450,243 Total accumulated depreciation 63,258,205 5,190,248 68,448,453 Less accumulated depreciation: Buildings and building improvements Improvements other than buildings Furniture and equipment 58,678,479 3,436,227 1,143,499 4,532, ,623 99,542 63,210,562 3,994,850 1,243,041 Total depreciable assets 191,039, , ,630,793 Capital assets that are depreciated: Buildings and building improvements Improvements other than buildings Furniture and equipment 177,766,724 11,621,583 1,651, , , ,048,129 11,621,583 1,961,081 Total non depreciable assets 2,536,478 8,731,425 11,267,903 Governmental activities: Capital assets not depreciated: Land Construction-in-progress $ Beginning Balance 952,377 1,584, 101 Retirements/ Additions Reclassifications $ $ 8,731,425 $ Ending Balance 952,377 10,315,526 Capital asset balances and activity for the year ended June 30, 2015 were as follows: 8. CAPITAL ASSETS All interfund payables are expected to be repaid within one year. The District typically loans resources between funds for the purpose of mitigating the effects of transient cash flow issues. lnterfund receivables and payables, other than between governmental activities and fiduciary funds, are eliminated on the Statement of Net Position. Totals $10,809,711 $ 10,809,711 $ 2,527,035 $ 2,527,035 Special Aid Fund 61,240 6,673, ,885 Non-major Funds: School Lunch Fund 897,258 Debt Service Fund 2,364, ,842 Fiduciary Funds , INTERFUND TRANSACTIONS -GOVERNMENTAL FUNDS

46 Depreciation expense was charged to governmental functions as follows: General support $ 392,530 Instruction 4,788,641 Pupil transportation 9,077 $ 5,190,248 Accrued liabilities at June 30, 2015, consisted of the following: -43- Liabilities for bond anticipation notes are generally accounted for in the Capital Projects Fund. Principal payments on bond anticipation notes must be made annually. State law requires that bond anticipation notes issued for capital purposes be converted to long-term obligation generally within five years after the original issue date. However, bond anticipation notes issued for assessable improvement projects may be renewed for periods equivalent to the maximum life of the permanent financing, provided that stipulated annual reductions of principal are made. Interest expense $ 300,000 Plus interest accrued in the current year Less interest accrued in the prior year Interest paid $ 300,000 Interest on short-term debt for the year was comprised of: Total $ 30,000,000 $ 41,859,637 $ 30,000,000 $ 41,859,637 BAN matured on 6/26/15 at 1.00% $ 30,000,000 $ $ 30,000,000 $ BAN matures on 6/25/16 at 0.49% 41,859,637 41,859,637 Beginning Ending Balance Issued Redeemed Balance Transactions in short-term debt for the year are summarized below: 10. SHORT-TERM DEBT OBLIGATIONS $ 724,208 $ 3,970 $ 26, 110 $ 754,288 ======== Payroll and employee benefits Tuition $ 297,900 $ 426,308 3,970 $ 26,110 $ 327, ,308 General Fund Special Aid Non-Major Governmental Total 9. ACCRUED LIABILITIES

47 Long-term liability balances and activity for the year are summarized below: Governmental activities: Amounts Beginning Ending Due Within Balance Additions Reductions Balance One Year Capital bonds payable $ 61,290,000 $ $ 5,010,000 $ 56,280,000 $ 2,430,000 Tax certiorari bonds payable 5,450,000 1,795,000 3,655,000 1,815,000 $ 59,935,000 $ 25,381,389 $ 8,807,380 $ 2,037,900 $ 96,161, June $ 4,245,000 $ 2,540,634 $ 656,250 $ 329,684 $ 7,771, ,380,000 2,354, , ,052 7,720, ,650,000 2,208, , ,418 5,844, ,450,000 2,106, , ,744 5,542, ,560,000 2,005, , ,989 5,551, ,660,000 8,322,181 4,296, ,738 27,911, ,310,000 4,901, ,659 23,275 24,197, ,680, ,315 11,621,315 Bonds Energ}:'. Performance Contract Principal Interest Principal Interest Total The following is a summary of maturing debt service requirements: Energy performance contract % $ 8,807,380 $ 59,935,000 District-wide construction % $ 41,080,000 District-wide construction % 14,305,000 Refunding serial bonds % 895,000 Tax certiorari judgments % 3,655,000 The following is a summary of long-term indebtedness: Description Issue Final Interest Outstanding at of Issue Date Maturity Rate 6/30/2015 Total long-term liabilities $ 97,979,856 $ 8,166,085 $ 13,381,436 $ 92,764,505 $ 5,297,568 Total bonds payable 67,263,284 6,979,428 60,283,856 4,419,428 Energy performance contract debt payable 9,438, ,580 8,807, ,250 Judgments and claims payable 3,018 3,018 Other post-employment benefits 19,076,535 7,946,279 5,568,448 21,454,366 Compensated absences 2,198, , ,962 2,218, ,890 Unamortized bond discounts and premiums 523, , , , LONG-TERM DEBT OBLIGATIONS

48 Interest paid $ 3,136,188 Less interest accrued in the prior year (378,096) Plus interest accrued in the current year 247,583 Less amortization of premiums/discounts {174,428} Interest expense $ 2,831,247 The District participates in the New York State Employees' Retirement System ("NYSERS") and the New York State Teachers' Retirement System ("NYSTRS") (collectively referred to as the "Systems"). Plan descriptions and benefits provided Employees' Retirement System The NYSERS is a cost-sharing, multiple-employer retirement system. NYSERS provides retirement benefits, as well as death and disability benefits. The net position of the system is held in the New York State Common Retirement Fund (the "Fund"), which was established to hold all net assets and record changes in plan net position allocated to the system. The Comptroller of the State of New York ("Comptroller") serves as the trustee of the Fund and is the administrative head of NYSERS. NYSERS benefits are established under the provisions of the New York State Retirement and Social Security Law ("NYSRSSL"). Once a public employer elects to participate in NYSERS, the election is irrevocable. The New York State Constitution provides that pension membership is a contractual relationship and plan benefits cannot be diminished or impaired. Benefits can be changed for future members only by enactment of a State statute. The District also participates in the Public Employees' Group Life Insurance Plan ("NYSGLIP"), which provides death benefits in the form of life insurance. NYSERS is included within New York State's financial report as a pension trust fund. That report, including information with regard to benefits provided, may be found at or obtained by writing to the New York State and Local Employees' Retirement System, 110 State Street, Albany, NY General information Bonds payable - The District borrows money in order to acquire equipment or for capital construction and improvements. This enables the cost of these capital assets to be borne by the present and future taxpayers receiving the benefit of the capital assets. These long-term liabilities bear interest at various rates from 2.00% to 4.75% and have maturity dates in 2017 through The District also borrows money in order to finance potential tax certiorari judgments and claims. These long-term liabilities bear interest at various rates from 3.00% to 5.00% and have maturity dates in 2015 through Energy performance contract payable - During 2010, the District entered into a $10,850,000 contractual agreement to install energy saving equipment and/or to upgrade existing facilities to enhance performance. The terms of the contract provide for repayment over fifteen years, with quarterly installments aggregating $985,954 per annum. Payments include interest at 3.85%. The contract further provides that the savings in energy costs resulting from this modernization will equal or exceed the lease payment terms. The balance due at June 30, 2015 was $8,807,380. Other long-term debt - Liabilities for judgments and claims and other post-employment benefits are liquidated through future budgetary appropriations in the General Fund. The liabilities for compensated absences are liquidated through future budgetary appropriation in the funds that gave rise to the liability, with the majority being liquidated through the General Fund. 12. PENSION PLANS Interest on long-term debt for the year was comprised of:

49 -46- The net pension asset/(liability) was measured as of March 31, 2015 for NYSERS and June 30, 2014 for NYSTRS. The total pension asset/(liability) used to calculate the net pension asset/(liability) was determined by an actuarial valuation. The District's proportion of the net pension asset/(liability) was based on a projection of the District's long-term share of contributions to the Systems relative to the projected contributions of all participating members, actuarially determined. This information was provided by the NYSERS and NYSTRS Systems in reports provided to the District. At June 30, 2015, the District reported the following asset/(liability) for its proportionate share of the net pension asset/(liability) for each of the Systems. Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions $ 14,262, ,100,092 9,523,761 $ 2,416,475 2,607,123 2,214, 102 Year NYSTRS NYSE RS The Systems are noncontributory for the employee who joined prior to July 27, 1976 (tiers I and II). For employees who joined the Systems after July 27, 1976, and prior to January 1, 2010, employees contribute 3% of their salary (tiers Ill and IV). For NYSERS, employees who joined between January 1, 2010 and April 1, 2012, are required to contribute 3% of their salary (tier V). For NYSTRS, employees who joined between January 1, 2010 and April 1, 2012, are required to contribute 3.5% of their salary (tier V). In addition, employee contribution rates (3% to 6%) under NYSERS and NYSTRS tier VI (those who joined after April 1, 2012) vary based on a sliding salary scale. With the exception of NYSERS and NYSTRS tier V and VI employees, employees in the Systems more than ten years are no longer required to contribute. For NYSERS, the Comptroller certifies the rates expressed as proportions of members' payroll annually, which are used in computing the contributions required to be made by employers to the pension accumulation fund. Pursuant to Article 11 of the Education Law, the New York State Teachers' Retirement Board establishes rates annually for NYSTRS. Contributions for the current year and two preceding years were equal to 100% of the contributions required, and were as follows: Contributions The NYSTRS is a cost-sharing, multiple-employer retirement system. NYSTRS provides retirement benefits, as well as death and disability benefits to plan members and beneficiaries as authorized by the Education Law and the Retirement and Social Security Law of the State of New York. NYSTRS is governed by a 10 member Board of Trustees. NYSTRS benefits are established under New York State Law. Membership is mandatory and automatic for all full-time teachers, teaching assistants, guidance counselors and administrators employed in New York Public Schools and BOCES who elected to participate in NYSTRS. Once a public employer elects to participate in NYSTRS, the election is irrevocable. The New York State Constitution provides that pension membership is a contractual relationship and plan benefits cannot be diminished or impaired. Benefits can be changed for future members only by enactment of a State statute. Additional information regarding NYSTRS, may be obtained by writing to the New York State Teachers' Retirement System, 10 Corporate Woods Drive, Albany, NY or by referring to the NYSTRS Comprehensive Annual Financial Report which can be found on their website at Teachers' Retirement System

50 Actuarial valuation date April 1, 2014 June 30, 2013 Net pension asset (liability) $ (1,549,040) $ 60,793,282 District's portion of the Plan's total net pension asset (liability) % % -47- For the ~ear ended NY SERS NYSTRS 2016 $ 132,833 $ 10,308, ,833 10,308, ,833 10,308, ,834 10,308, ,046 Thereafter 363,769 District contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Total $ 1!184,492 $ 14,282, 144 $ $ 41,718,286 Employer contributions subsequent to the measurement date 653,159 14,262,157 contributions and proportionate share of contributions 212,697 differences between the District's Changes in proportion and 19,987 Net difference between projected and actual earnings on pension plan investments 269,049 40,829,296 Difference between expected experience and actual experience $ 49,587 $ $ $ 888,990 Deferred Deferred Deferred Deferred Outflows of Outflows of Inflows of Inflows of Resources - Resources - Resources - Resources - NYSERS NY ST RS NYSERS NYSTRS For the year ended June 30, 2015, the District recognized pension expense of $1,455,071 for NYSERS and pension income of $2,380, 109 for NYSTRS. At June 30, 2015, the District's reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: NYSERS NYSTRS

51 The total pension liability as of the measurement date was determined by using an actuarial valuation as noted in the table below, with update procedures used to roll forward the total pension liability to the measurement date. Significant actuarial assumptions used in the valuations were as follows: Measurement date Actuarial valuation date NY SERS March 31, 2015 April 1, 2014 NYSTRS June 30, 2014 June 30, The long-term rate of return on pension plan investments was determined using a building block method in which best estimate ranges of expected future real rates of return (expected returns net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by each target asset allocation percentage and by adding expected inflation. Best estimates of the arithmetic real rates of return for each major asset class included in the target asset allocation are summarized below: Measurement date Asset type Absolute return strategies Alternative investments Bonds and mortgages Cash Domestic equity Domestic fixed income Global fixed income Inflation-indexed bonds International equity Opportunistic porfolio Private equity Real assets Real estate NY SERS March 31, % 18.00% 2.00% 38.00% 2.00% 13.00% 3.00% 10.00% 3.00% 8.00% % NYSTRS June 30, % 8.00% 37.00% 18.00% 2.00% 18.00% 10.00% % For NYSERS, the actuarial assumptions used in the April 1, 2014 valuation are based on the results of an actuarial experience study for the period April 1, March 31, For NYSTRS, the actuarial assumptions used in the June 30, 2013 valuation are based on the results of an actuarial experience study for the period July 1, June 30, For NYSERS, annuitant mortality rates are based on April 1, March 31, 2010 system's experience with adjustments for mortality improvements based on MP For NYSTRS, annuitant mortality rates are based on July 1, June 30, 201 O system's experience with adjustments for mortality improvements based on Society of Actuaries Scale AA. Interest rate Salary scale Decrement tables Inflation rate 7.50% 4.90% 4.01% % April 1, 2005 to March 31, 2010 System's Experience 2.70% 8.00% July 1, 2005 to June 30, 2010 System's Experience 3.00% Actuarial assumptions

52 The discount rate used to calculate the total pension liability was 7.50% for NYSERS and 8.00% for NYSTRS. The projection of cash flows used to determine the discount rate assumes that contributions from plan members will be made at the current contribution rates and that contributions from employers will be made at statutorily required rates, actuarially. Based upon the assumptions, the Systems' fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the proportionate share of the net pension liability to the discount rate assumption For NYSERS, employer contributions are paid annually based on the system's fiscal year which ends on March 31st. Accrued retirement contributions as of June 30, 2015 represent the projected employer contribution for the period of April 1, 2015 through June 30, 2015 based on paid NYSERS wages multiplied by the employer's contribution rate, by tier. Accrued retirement contributions as of June 30, 2015 amounted to $639, Payables to the pension plan Ratio of plan net position to the employers' total pension asset/(liability) 97.95% % % Pension plan fiduciary net position The components of the current-year net pension asset/(liability) of the employers as of the respective valuation dates, were as follows: Valuation date Employers' total pension asset/(liability) Plan net position Employers' net pension asset/(liability) NY SERS April 1, 2014 $ 164,591, ,213,259 $ (3,378,245) (Dollars in Thousands) NYSTRS Total June 30, 2013 $ 97,015,707 $ 261,607, , 155, ,368,342 $ 11,139,376 $ 7,761,131 Employer's proprtionate share of the net pension asset (liability) $ 1,311,396 $ 60,793,282 $ 111,480 I 11 0 NY ST RS 1% Decrease (7.00%) Current assumption (8.00%) 1% Increase (9.00%) Employer's proprtionate share of the net pension asset (liability) $ (10,325,024) $ (1,549,040) $ 5,860,066 NYSERS 1% Decrease (6.50%) Current assumption (7.50%) 1% Increase (8.50%) The following presents the District's proportionate share of the net pension liability calculated using the discount rate of 7.50% for NYSERS and 8.00% for NYSTRS, as well as what the District's proportionate share of the net pension asset/(liability) would be if it were calculated using a discount rate that is 1-percentage point lower (6.50% for NYSERS and 7.00% for NYSTRS) or 1-percentage point higher (8.50% for NYSERS and 9.00% for NYSTRS) than the current rate: Discount rate

53 13. OTHER POST-EMPLOYMENT BENEFITS ("OPEB") Plan description and annual OPEB cost -50- Net OPES obligation, end of year $ 21,454,366 Increase in net OPES obligation Net OPES obligation, beginning of year 2,377,831 19,076,535 Annual OPES cost Contributions made 7,946,279 (5,568,448) Annual required contribution Interest on net OPES obligation Adjustment to annual required contribution $ 9,310, ,827 (2,318,291) The District provides post-employment (health insurance, life insurance, etc.) coverage to retired employees in accordance with the provisions of various employment contracts. The benefit levels, employee contributions and employer contributions are governed by the District's contractual agreements. The District implemented GASB Statement 45, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other than Pensions, (standards codified in 2012) in the school year June 30, This requires the District to calculate and record a net other postemployment benefit obligation at year-end. The net other post-employment benefit obligation is basically the cumulative difference between the actuarially required contribution and the actual contributions made. Currently, 761 retired employees receive health benefits from the District. Retirees contribute 0% to 65% for coverage depending on position held, date of hire, years of service, and fiscal year of retirement. The District recognizes the cost of providing health insurance annually as expenditures in the General Fund of the fund financial statements as payments are made. For the year ended June 30, 2015, the District recognized $5,568,448 for its share of insurance premiums for currently enrolled retirees. The District has obtained an actuarial valuation report as of July 1, 2014, which indicates that the total liability for other post-employment benefits is $146,855,954. The District's annual OPEB cost (expense) is calculated based on the annual required contribution ("ARC') of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the District's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the District's net OPEB obligation: For the Year Ended June 30, 2015 For NYSTRS, employer and employee contributions for the fiscal year ended June 30, 2015 are paid to the system in September, October and November 2015 through a State aid intercept. Accrued retirement contributions as of June 30, 2015 represent employee and employer contributions for the fiscal year ended June 30, 2015 based on paid NYSTRS wages multiplied by the employer's contribution rate, by tier and employee contributions for the fiscal year as reported to the NYSTRS System. Accrued retirement contributions as of June 30, 2015 amounted to $14,858,107.

54 Percentage of Annual OPEB Cost Net OPEB Fiscal Year Ended Annual OPEB Cost Contributed Obligation The District and other school districts have formed a reciprocal insurance company (the "Company") to be owned by these school districts. This Company operates under an agreement effective July 1, The purpose of the Company is to provide general liability, auto liability, all risk building and contents and auto physical damage coverage RISK MANAGEMENT In the July 1, 2014 actuarial valuation, the projected unit credit method was used. The actuarial assumptions included a 5% investment rate of return (net of administrative expenses), which is a blended rate of the expected long-term investment returns on plan assets and on the employer's own investments calculated based on the funded level of the plan at the valuation date, and an annual healthcare cost trend rate of 8.0% initially, reduced by decrements to an ultimate rate of 5% after 5 years. Both rates included a 5.0 % inflation assumption. The actuarial value of assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a 30 year period. The UML is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at June 30, 2015 was 22 years. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Actuarial methods and assumptions As of July 1, 2014, the most recent actuarial valuation date, the plan was 0% funded. The actuarial accrued liability for benefits was $146,855,954 and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability ("UML") of $146,855,954. The covered payroll (annual payroll of active employees covered by the plan) was $97,309,684, and the ratio of the UML to the covered payroll was 150.9%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Funded status and funding progress 6/30/15 $ 7,946, % $ 21,454,366 6/30/14 7,642, % 19,076,535 6/30/13 8, 198, % 17,282,368 The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year ended June 30, 2015 and the two preceding years were as follows:

55 The District has received grants, which are subject to audit by agencies of the State and Federal governments. Such audits may result in disallowances and a request for a return of funds. Based on prior years' experience, the District's administration believes disallowances, if any, would be immaterial Government grants In accordance with GASB Pronouncements, the District is required to recognize a liability for certain obligations to sacrifice financial resources (i.e. capital improvements) under the terms of a service concession arrangement or, a deferred inflow for up-front or installment payments received from the operator in advance of the revenue being earned. The District had no such arrangements as of June 30, As of June 30, 2015, no liability or deferred inflow was reflected on the District's financial statements as a result of a service concession arrangement. Service concession arrangements The District and neighboring districts in Southern Westchester County participate in the Southern Westchester Schools Cooperative Self-Insurance Plan for Workers' Compensation. The purpose of the Plan is to provide for the efficient and economical evaluation, processing, administration, defense and payment of claims against plan members for workers' compensation and to provide for risk management to reduce future liability for workers' compensation and employers' liability payments. The Plan is managed and governed by a Board of Trustees comprised of a representative from each school district. Premiums are based upon experience ratings. The District has transferred all related risk to the Plan. The District and neighboring school districts in Southern Westchester County participate in the State-Wide Schools Cooperative Health Plan (the "Plan"). The Plan operates under an agreement, as amended, dated December 12, The purposes of the Plan are to effect cost savings in members' expenses for health coverage; to permit members to secure improved levels of health coverage; to provide for centralized administration, funding and disbursements for health coverage; and to provide for such risk management services as may be appropriate to reduce future expense and liability for health coverage. The governance of the Plan shall be in all respects in the hands of the Board of Trustees. The Board of Trustees shall consist of seven trustees elected by the general membership of the Plan. No action may be taken by the Board of Trustees except by vote of a majority of the total number of trustees. Billings to participants are based upon coverage provided to each participant's employees. The District has transferred all related risk to the Plan. 15. COMMITMENTS AND CONTINGENCIES The District purchases various insurance coverage from the Company to reduce its exposure to loss. The District maintains a general liability insurance policy with coverage up to $1 million in the aggregate. The District also maintains liability coverage for school board members up to $1 million and an excess catastrophe policy with coverage up to $25 million in the aggregate. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. In addition, as part of the reciprocal program, excess insurance, school board legal liability, equipment floaters, boilers and machinery and crime and bond coverage will be purchased from commercial carriers and be available to the subscriber school districts. The Company retains a management company, which is responsible for the overall supervision and management of the Company. The Company is managed by a Board of Governors and an Attorney-in-fact, which is comprised of employees of the subscriber school districts. The subscribers have elected those who sit on the board and each subscriber has a single vote. The Company is an "assessable" insurance company, in that, the subscribers are severally liable for any financial shortfall of the Company and can be assessed their proportionate share by the State Insurance Department if the funds of the Company are less than what is required to satisfy its liabilities. The subscriber school districts are required to pay premiums as well as a minimal capital contribution.

56 In June 2011, the New York State Legislature enacted Chapter 97, Laws of 2011 Real Property Tax Levy Cap and Mandate Relief Provisions. For fiscal years beginning in through at least June 15, 2016, growth in the property tax levy (the total amount to be raised through property taxes charged on a municipality's taxable assessed value of property) will be capped at 2 percent or the rate of inflation (but not less than 1 percent), whichever is less, with some exceptions. The New York State Comptroller recently set the allowable levy growth factor for school districts for fiscal years beginning July 1, 2014 at 1.46 percent (before exemptions). School districts can exceed the tax levy limit by a 60 percent vote of the governing body, or by local law. In July 2015, the Real Property Tax Cap Laws were extended to June 15, GASB has issued Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other than Pensions, effective for the year ending June 30, This Statement replaces the requirements of Statements No. 45, Accounting and Financial Reporting by Employers for Post-employment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, for OPEB. Statement No. 74, Financial Reporting for Post-employment Benefit Plans Other Than Pension Plans, establishes new accounting and financial reporting requirements for OPEB plans GASB has issued Statement No. 72, Fair Value Measurement and Application, which addresses accounting and financial reporting issues related to fair value measurements. The Statement will require disclosures regarding the level of fair value hierarchy and valuation techniques. It will also require additional disclosures regarding investments in certain entities that calculate net asset value per share (or its equivalent). 17. FUTURE ACCOUNTING STANDARDS NOT YET IMPLEMENTED $ 14,784 Fiscal year ended June 30, 2016 $ 5, , ,032 The District has entered into one lease for rental of office equipment. The operating lease expense for the year ended June 30, 2015 was $5,376. Future minimum payments are as follows: All labor contracts for the District have been settled. The White Plains Teachers' Association contract expires on June 30, 2017, the CSEA contract expires on June 30, 2018, the Administrators and Supervisors Association contract expires on June 30, 2016 and the Substitute Teachers' Association contract expires on June 30, LEASE COMMITMENTS The District is also involved in lawsuits arising from the normal conduct of business. Some of these lawsuits seek damages which may be in excess of the District's insurance coverage. However, it is not possible to determine the District's potential exposure, if any, at this time. Labor contract( s) There are currently pending tax certiorari proceedings, the results of which could require payment of future tax refunds by the District if existing assessment rolls are modified based on the outcome of the litigation proceedings. However, the amount of these possible refunds cannot be determined at this time. Any payments resulting from adverse decisions will be funded in the year payment is made. Litigation Property tax cap

57 GASB has issued Statement No. 77, Tax Abatement Disclosures, which will required disclosure regarding tax abatement agreements, specifically: a brief description, the gross dollar amount of taxes abated, and commitments made by the government, other than to abate taxes, as part of a tax abatement agreement Balance as of July 1, 2014, as restated $ 98,826, 144 Add: Employees' Retirement System 627,354 Add: Teachers' Retirement System 13,100,092 GASB Statement No. 71 implementation: Beginning deferred outflow of resources for contributions subsequent to the measurement date: Less: Beginning System liability - Employees' Retirement System (2,072,051) Add: Beginning system asset- Teachers' Retirement System 3,614,737 GASB Statement No. 68 implementation: Balance as of July 1, 2014, as previously stated $ 83,556,012 For the fiscal year ended June 30, 2015, the District implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions (Amendment to GASB Statement No. 27) and GASB No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. The implementation of Statement No. 68 and No. 71 resulted in the reporting of an asset, deferred outflow of resources, liability and deferred inflow of resources related to the District's participation in the New York State Teachers' and New York State Employees' retirement systems. The District's net position has been restated as follows: 18. PRIOR PERIOD ADJUSTMENT GASB has issued Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, which identifies the hierarchy of generally accepted accounting principles, by reducing the hierarchy to two categories of authoritative GAAP and the use of authoritative and nonauthoritative literature in the event that the accounting treatment for a transaction or other event is not specified within a source of authoritative GAAP.

58 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2015 Original Final Year-end Bud!ijet Budget Actual Encumbrances Variance -55- Budget Basis of Accounting Budgets are adopted on the modified accrual basis of accounting consistent with accounting principles generally accepted in the United States of America. Note to Reguired Su1211lementa!Y Information Fund balance, end of year $ 51,513,055 $ 51,513,055 $ 59,785,478 Fund balance, beginning of year 51,513,055 51,513,055 51,513,055 Change in fund balance 8,272,423 $ 6,284,647 Total expenditures and other financing uses 199,900, ,079, ,734,277 $ 1,987,776 6,357,649 OTHER FINANCING USES lnterfund transfer out 2,442, 150 2,527, 155 2,527, Total expenditures 197,457, ,552, ,207,242 1,987,776 6,357,529 Pupil transportation 9,237,321 9,269,298 8,837,248 31, ,362 Employee benefits 51,653,000 51,207,975 48,631,647 2,576,328 Debt service: Principal 7,436,580 7,436,580 7,436,580 Interest 3,436, 188 3,436, 188 3,436, 188 Total instruction 107,851, ,349, ,952, ,588 2,905,599 Instruction: Instruction, administration and improvement 7,761,990 7,675, 163 7,165,620 6, ,872 Teaching - regular school 62,525,002 61,770,432 59,920, ,367 1,737,158 Programs for children with handicapping conditions 24,546,541 25,462,262 25,407,014 16,869 38,379 Teaching - special school 254, , ,511 11,134 Instructional media 4,953,673 5,354,766 4,664, , , 107 Pupil services 7,809,995 7,832,261 7,550,966 26, ,949 Total general support 17,842,915 23,852,977 21,913,237 1,464, ,240 EXPENDITURES General support: Board of Education 150, , ,070 $ 5,488 Central administration 367, , ,632 7,704 Finance 1,408,444 1,374,755 1,338,995 2,000 33,760 Staff 1,061,592 1,065, ,681 7,632 84,006 Central services 12,416,123 13,419,125 11,671,086 1,454, , 171 Special items 2,438,323 7,455,884 7,404,773 51, 111 Total revenues and other financing sources 199,900, ,079, ,006,700 (73,002) OTHER FINANCING SOURCES Tax certiorari reserve 5,030,350 (5,030,350) Prior year encumbrances 809,279 (809,279) Total revenues 199,900, ,240, ,006,700 5,766,627 State sources 17,839,541 17,839,541 21,539,624 3,700,083 Federal sources 25,000 25,000 70,236 45,236 Total local sources 182,035, ,375, ,396,840 2,021,308 REVENUES Local sources: Real property taxes $ 148,563,072 $ 148,563,072 $ 148,324,874 $ (238, 198) Other real property tax items 27,047,387 27,047,387 27,400, ,048 Non-property tax items 3,200,000 3,200,000 3,794, ,473 Charges for services 2,195,000 2,195,000 2,904, ,583 lnterfund revenues 45,000 45,000 79,250 34,250 Use of money and property 490, , ,883 58,883 Sale of property and compensation for loss 60,000 60,000 62,387 2,387 Miscellaneous 435, ,073 1,281, ,882 REQUIRED SUPPLEMENTARY INFORMATION

59 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK SCHEDULE OF FUNDING PROGRESS FOR RETIREE HEAL TH PLAN FOR THE YEAR ENDED JUNE 30, 2015 REQUIRED SUPPLEMENTARY INFORMATION 07/01/14 $ 07/01/13 07/01/12 Actuarial Actuarial Value of Valuation Assets Date (a) -56- $ 146,855,954 $ 146,855,954 0% $ 97,309, ,501, ,501,119 0% 96,265, ,502, ,502,426 0% 96,060,343 Actuarial Accrued Liability Unfunded (AAL)- AAL Funded Covered Entry Age (UAAL) Ratio Payroll (b) (b-a) (alb) ( c) 150.9% 147.0% 150.4% UAALas a Percentage of Covered Payroll ((b-a)/c)

60 REQUIRED SUPPLEMENTARY INFORMATION CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY - NYSERS LAST TEN FISCAL YEARS* (Dollar amounts in thousands) **2013 **2012 **2011 **2010 **2009 District's proportionate share of the net pension liability % % NIA NIA NIA NIA NIA District's proportionate share of the net pension liability $ (1,549) $ (2,072) NIA NIA NIA NIA NIA District's covered payroll $ 13,276 $ 13,414 NIA NIA NIA NIA NIA District's proportionate share of the net pension liability as a percentage of covered payroll % % NIA NIA NIA NIA NIA Plan fiduciary net position as a percentage of the total pension liability 97.95% 97.20% NIA NIA NIA NIA NIA **2008 NIA NIA NIA NIA NIA **2007 **2006 NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA The amounts presented for each fiscal year were determined (bi-annually) as of March 31. Not Available= NIA **Note to Required Supplementary Information This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, governments should present information for those years for which information is available. -57-

61 REQUIRED SUPPLEMENTARY INFORMATION CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION ASSET NYSTRS LAST TEN FISCAL YEARS* (Dollar amounts in thousands) **2013 **2012 **2011 **2010 **2009 **2008 **2007 **2006 District's proportionate share of the net pension asset % % N/A NIA NIA NIA N/A NIA NIA NIA District's proportionate share of the net pension asset $ 60,793 $ 3,615 NIA NIA NIA N/A N/A N/A NIA NIA District's covered payroll $ 81,359 $ 80,616 N/A NIA NIA NIA NIA NIA NIA NIA District's proportionate share of the net pension asset as a percentage of covered payroll 74.72% 4.48% NIA NIA NIA NIA N/A NIA NIA NIA Plan fiduciary net position as a percentage of the total pension asset % % N/A N/A NIA NIA N/A NIA N/A N/A *The amounts presented for each fiscal year were determined (bi-annually) as of June 30. Not Available= NIA **Note to Required Supplementary Information This schedule is presented to illustrate the requirement to show information for 1 O years. However, until a full 10-year trend is compiled, governments should present information for those years for which information is available. -58-

62 REQUIRED SUPPLEMENTARY INFORMATION CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK SCHEDULE OF DISTRICT PENSION CONTRIBUTIONS NYSERS LAST TEN FISCAL YEARS* (Dollar amounts in thousands) 2015 Contractually required contribution $ 2, **2012 **2011 **2010 $ 2,607 $ 2,214 NIA NIA NIA **2009 **2008 NIA NIA **2007 **2006 NIA N/A Contributions in relation to the contractually required contribution 2,416 Contribution deficiency (excess) $. District's covered-employee payroll $ 13,276 2,607 2,214 NIA NIA NIA $ - $ - NIA NIA NIA $ 13,414 $ 12,313 N/A NIA N/A NIA N/A NIA NIA N/A NIA = NIA N/A NIA NIA N/A NIA Contributions as a percentage of covered-employee payroll 18.20% 19.44% 17.98% N/A NIA NIA N/A N/A NIA NIA *The amounts presented for each fiscal year were determined (bi-annually) as of March 31. Not Available= NIA **Note to Required Supplementary Information This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, governments should present information for those years for which information is available. -59-

63 REQUIRED SUPPLEMENTARY INFORMATION CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK SCHEDULE OF DISTRICT PENSION CONTRIBUTIONS NYSTRS LAST TEN FISCAL YEARS* (Dollar amounts in thousands) 2015 Contractually required contribution $ 14, **2012 **2011 **2010 $ 13,100 $ 9,524 NIA NIA NIA **2009 **2008 NIA NIA **2007 **2006 NIA NIA Contributions in relation to the contractually required contribution 14,262 Contribution deficiency (excess) $ - District's covered-employee payroll $ 81,359 13,100 9,524 NIA NIA NIA $ - $ - NIA NIA NIA $ 80,616 $ 80,437 NIA NIA NIA NIA NIA NIA NIA = NIA NIA NIA NIA NIA NIA NIA NIA Contributions as a percentage of covered-employee payroll 17.53% 16.25% 11.84% NIA NIA NIA NIA NIA NIA NIA *The amounts presented for each fiscal year were determined (bi-annually) as of June 30. Not Available= NIA **Note to Required Supplementary Information This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, governments should present information for those years for which information is available. -60-

64 OTHER SUPPLEMENTARY INFORMATION -61- Actual percentage Fund balance subject to 1318 of Real Property Tax Law: Less: Encumbrances Unrestricted fund balance: Assigned fund balance Unassigned fund balance Fund balance subject to 1318 of Real Property Tax Law: Maximum allowed (4% of budget) voter-approved expenditure budget 1318 of real property tax law limit calculation: Revised budget Add: Microsoft settlement revenues received Add: Board-approved use of Tax Certiorari Reserve Add: Prior year's encumbrances Adopted budget Change from adopted budget to revised budget: $ 1,987,776 8,232, % $ 8,232,000 1,987,776 $ 10,219,776 $ 8,232,000 $ 205,800,000 $ 206,079, ,073 5,030, ,279 $ 199,900,000 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK SCHEDULE OF CHANGE FROM ADOPTED BUDGET TO FINAL BUDGET AND THE REAL PROPERTY TAX LIMIT - GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2015

65 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK SCHEDULE OF PROJECT EXPENDITURES AND FINANCING SOURCES - CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE OTHER SUPPLEMENTARY INFORMATION Expenditures Methods of Financing Original Project Title ~eroeriation Revised Prior Current Unexpended Proceeds of Aeeroeriation Years Year Total Balance Obligations Local State Aid Sources Total Fund Balance June District-wide Improvements $ 402,000 $ District-wide Construction 69,635,000 District-wide Improvements 12/13 48,239,840 1,506,000 $ 1,180,306 $ $ 1,180,306 $ 325,694 $ $ 69,785,000 69,781,321 69,781,321 3,679 66,465, ,840 6,606,213 9,037,350 15,643,563 32,596,277 $ 1,506,000 $ 2,316, ,000 2, ,506,000 69,331,630 2, $ 325,694 (449,691) (13.549,296) Totals $ ,840 $ 119,530,840 $ 77,567,840 $ 9,037,350 $ 86,605,190 $ ,650 $ 66,465,000 $ 2,316,630 $ 4,150,267 $ 72,931,897 $ (13,673,293) -62-

66 -63- Net investment in capital assets Deduct: Bond anticipation notes payable Short-term portion of bonds payable (capital only) Long-term portion of bonds payable (capital only) Short-term energy performance contract payable Long-term energy performance contract payable Capital assets, net CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK NET INVESTMENT IN CAPITAL ASSETS FOR THE YEAR ENDED JUNE 30, 2015 $ 41,859,637 2,604,428 54,024, ,250 8,151,130 $ 27,154, ,295,873 $ 134,450,243 OTHER SUPPLEMENTARY INFORMATION

67 2015 OTHER SUPPLEMENTARY INFORMATION $ 16,762, Total liabilities, deferred inflows of resources and fund balance $ 85,015,838 Total fund balance 59,785,478 FUND BALANCE Nonspendable 449,691 Restricted 49,116,011 Assigned 1,987,776 Unassigned 8,232,000 Total deferred inflows of resources 936,503 DEFERRED INFLOWS OF RESOURCES Property taxes 936,503 Total liabilities 24,293,857 LIABILITIES Accounts payable $ 3,452,034 Accrued liabilities 724,208 Due to other funds 269,650 Due to other governments 1,647,467 Due to teachers' retirement system 14,858,107 Due to employees' retirement system 639,830 Unearned revenues 2,702,561 Total assets $ 85,015,838 Receivables: Taxes, net 1,095,666 Accounts receivable, net 63,351 State and Federal aid 4,980,122 Due from other governments 3,353,582 Due from other funds 7,608,859 Due from fiduciary funds 25,088 Advances to other funds 449,691 Total investments 45,404,823 Investments: Unrestricted 24,900 Restricted 45,379,923 Total cash and cash equivalents 22,034,656 ASSETS Cash and cash equivalents: Unrestricted $ 18,298,568 Restricted 3,736,088 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK COMPARATIVE BALANCE SHEET-GENERAL FUND AS OF JUNE 30, 2015 AND 2014 $ 75,467,462 51,513, ,691 42,258, ,279 7,995, , ,308 23,045,099 2,271,007 13,869, ,456 3,066,935 $ 2,096, ,720 $ 75,467,462 1,225,493 71,125 5,087, ,779 3,637, , ,691 45,375,159 3,117,070 42,258, ,

68 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL F!JND FOR THE YEARS ENDED JUNE 30, 2015 AND 2014 OTHER SUPPLEMENTARY INFORMATION REVENUES Original Final Year-end Original Final Year-end Budget Budget Actual Encumbrances Variance Budget ~ t Actual Encumbrances Variance Local sources: Real property taxes $ 148,563,072 $ 148,563,072 $ 148,324,874 $ (238,198) $ 144,307,589 s 144,307,589 $ 144,266,865 s (40,724) Olher real property tax items 27,047,387 27,047,387 27,400, ,048 27,260,941 27,260,941 27,384, ,457 Non-property tax items 3,200,000 3,200,000 3,794, ,473 3,250,000 3,250,000 3,937, ,081 CharQes for services 2,195,000 2,195,000 2,904, ,583 2,259,500 2,259,500 3,056, ,922 lnterfund revenues 45,000 45,000 79,250 34,250 45,000 45,000 55,553 10,553 Use of money and property 490, , ,883 58, , , , ,587 Sale of property and compensation for loss 60,000 60,000 62,387 2,387 75,000 75, , ,583 Miscellaneous 435, ,073 1,281, , , , , ,102 Total local sources 182,035, ,375, ,396,840 2,021, ,050, ,050, ,222,091 2,171,561 State sources 17,839,541 17,839,541 21,539,624 3,700,083 14,699,470 14,949,470 15,500, ,618 Federal sources 25,000 25,000 70,236 45,236 50,000 50,000 47,995!2,005) Total revenues 199,900, ,240, ,006, 700 5,766, ,800, ,050, ,770,174 2,720,174 OTHER FINANCING SOURCES lnterfund transfers in 600, , ,000 Tax certiorari reserve 5,030,350 (5,030,350) 5,954,604 (5,954,604) Prior year encumbrances 809,279!809,279) 596,974!596,974) Total revenues and other financing sources 199,900, ,079, ,006, 700 F3.002) 193,400, ,201, ,370, 174!3,831,404) EXPENDITURES General support: Board of Education 150, , ,070 $ 5, , , ,827 $ 27,595 Central administration 367, , ,632 7, , , ,973 11,231 26,689 Finance 1,408,444 1,374,755 1,338,995 2,000 33,760 1,411,971 1,399,796 1,319,260 28,947 51,589 Staff 1,061,592 1,065, ,681 7,632 84,006 1,030,693 1,099,004 1,033,164 2,875 62,965 Central services 12,416,123 13,419, ,671,086 1,454, ,171 11,242,297 12,553,502 11,708, , ,569 Special items 2,438,323 7,455,884 7,404,773 51,111 2,397,469 8,355,074 8,258,028 97,046 Total general support 17,842,915 23,852,977 21,913,237 1,464, ,240 16,610,232 23,993,691 22,839, , ,453 Instruction: Instruction, administration and improvement 7,761,990 7,675,163 7,165,620 6, ,872 7,529,252 7,467,613 7,035,784 8, ,747 Teaching regular school 62,525,002 61,770,432 59,920, ,367 1,737,158 61,697,747 60,901,476 58,706,809 46,184 2, 148,483 Programs for children with handicapping conditions 24,546,541 25,462,262 25,407,014 16,869 38,379 24,498,959 24,541,613 23,357,147 3,440 1,181,026 Teaching - special school 254, , ,511 11, , , ,798 9,752 Instructional media 4,953,673 5,354,766 4,664, , ,107 4,396,445 4,483,565 4,289,153 77, ,215 Pupil services 7,809,995 7,832,261 7,550,986 26, ,949 7,589,638 7,705,101 7,616,033 23,908 65,160 Total instruction 107,851, ,349, ,952, ,588 2,905, ,963, ,349, ,245, ,811 3,945,383 Pupil transportation 9,237,321 9,269,298 8,837,248 31, ,362 9,070,819 9,069,513 8,637, ,082 Employee benefits 51,653,000 51,207,975 48,631,647 2,576,328 48,534,000 48,534,000 47,452, 160 1,000 1,080,840 Debt service: Principal 7,436,580 7,436,580 7,436,580 9,302,838 9,302,838 9,302,838 Interest 3,436, 188 3,436, 188 3,436,188 3,550,080 3,550,080 3,550,080 Total expenditures 197,457, ,552, ,207,242 1,987,776 6,357, ,031, ,800, ,028, ,279 5,962,758 OTHER FINANCING USES lnterfund transfer out 2,442,150 2,527,155 2,527, , , ,538 Total expenditures and other financing uses 199,900, ,079, ,734,277 s 1,987,776 6,357, ,400, ,201, ,429,541 s 809,279 5,962,758 Change in fund balance 8,272,423 $ 6,284,647 2,940,633 $ 2,131,354 Fund balance, beginning of year 51,513,055 51,513,055 51,513,055 48,572,422 48,572,422 48,572,422 Fund balance, end of year s 51,513,055 $ 51,513,055 $ 59,785,478 $ 48,572,422 $ 48,572,422 $ 51,513,

69 Budget Amounts Original Final Year-end Budget Budget Actual Encumbrances Variance REVENUES Real property taxes $ 148,563,072 $ 148,563,072 $ 148,324,874 $ (238,198) -66- Total miscellaneous local sources 435, ,073 1,281, ,882 Miscellaneous local sources: Gifts and donations 13,944 13,944 Refund of prior year's expenditures 25,000 25, , ,504 Refund for BOCES' aided services 200, , , ,431 Other 210, , ,076 (250,997) Total sale of property and compensation for loss 60,000 60,000 62,387 2,387 Sale of property and compensation for loss: Sale of equipment 5,000 5,000 1,029 (3,971) Insurance recoveries 50,000 50,000 55,485 5,485 Other 5,000 5,000 5, Total use of money and property 490, , ,883 58,883 Use of money and property: Earning on investments 140, , ,462 (21,538) Rental of real property - individuals 300, , , ,806 Rental of real property - BOCES 50,000 50,000 27,615 (22,385) Total interfund revenues 45,000 45,000 79,250 34,250 lnterfund revenues 45,000 45,000 79,250 34,250 Total charges for services 2,195,000 2,195,000 2,904, ,583 Charges for services: Day school tuition 35,362 35,362 Day school tuition - other districts 1,100,000 1, 100,000 1,479, ,763 In-service tuition 10,000 10,000 19,850 9,850 Summer school tuition - individuals 20,000 20,000 19,875 (125) Health services for other districts 1,000,000 1,000,000 1,281, ,763 Other services for other governments 60,000 60,000 60,000 Other charges for services - individuals 5,000 5,000 4,670 (330) Other student fees and charges 3,300 3,300 Total non-property tax items 3,200,000 3,200,000 3,794, ,473 Non-property tax items: Tax on consumer utility bills 3,200,000 3,200,000 3,794, ,473 Total other real property tax items 27,047,387 27,047,387 27,400, ,048 Other real property tax items: School tax relief reimbursement 17,549,594 17,549,594 17,549,594 Payments in lieu of taxes 9,297,793 9,297,793 9,569, ,183 Interest and penalties on real property taxes 200, , ,865 80,865 Total real property taxes 148,563, ,563, ,324,874 (238, 198) CITY SCHOOL DISTRICT OF WHITE PLAINS. NEW YORK SCHEDULE OF REVENUES, EXPENDITURES AND OTHER FINANCING SOURCES (USES) COMPARED TO BUDGET - GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2015 OTHER SUPPLEMENTARY INFORMATION

70 -67- Total central services 12,416,123 13,419,125 11,671,086 1,454, , 171 Central services: Operation and maintenance of plant 11,321,692 12,272,390 10,525,564 1,454, ,958 Central printing and mailing 300, , , 146 1,213 Central data processing 793, , ,376 Total staff 1,061,592 1,065, ,681 7,632 84,006 Staff: Legal 320, , ,150 41,850 Personnel 623, , , ,334 Public information and services 58,099 47,398 32,815 7,455 7,128 Records management 59,500 59,675 45,981 13,694 Total finance 1,408,444 1,374,755 1,338,995 2,000 33,760 Finance: Business administration 1,006, , ,833 14,889 Accounting and auditing 144, ,430 99,030 2,000 17,400 Treasurer 138, , ,171 Purchasing 119, , ,961 1,471 Total central administration 367, , ,632 7,704 Central administration: Chief school administrator 367, , ,632 7,704 Total Board of Education 150, , ,070 5,488 GENERAL SUPPORT EXPENDITURES Board of Education: Board of Education 32,436 32,726 30,507 $ 2,219 District Clerk 95, , ,364 1,042 District meeting 22,700 24,426 22,199 2,227 Total revenues and other financing sources 199,900, ,079, ,006,700 {73,002) OTHER FINANCING SOURCES Tax certiorari reserve 5,030,350 (5,030,350) Appropriated fund balance 809,279 {809,279) Total revenues 199,900, ,240, ,006,700 5,766,627 Total federal sources 25,000 25,000 70,236 45,236 Federal sources: Medical assistance 25,000 25,000 70,236 45,236 Total state sources 17,839,541 17,839,541 21,539,624 3,700,083 Budget Amounts Original Final Year-end Budget Budget Actual Encumbrances Variance State sources: Basic formula $ 15,404,748 $ 15,404,748 $ 15,999,835 $ 595,087 BOC ES 1,639,037 1,639,037 2,574, , 198 Homeless aid 1,308,108 1,308,108 Textbooks 454, , ,349 35,404 Computer software and library materials 165, , ,881 93,070 Other 175, , , ,216 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK SCHEDULE OF REVENUES, EXPENDITURES AND OTHER FINANCING SOURCES {USES} COMPARED TO BUDGET - GENERAL FUND {CONTINUED} FOR THE YEAR ENDED JUNE 30, 2015 OTHER SUPPLEMENTARY INFORMATION

71 Budget Amounts Original Final Year-end Budget Budget Actual Encumbrances Variance -68- Total instruction 107,851, ,349, ,952, ,588 2,905,599 Total pupil services 7,809,995 7,832,261 7,550,966 26, ,949 Pupil services: Attendance - regular school 228, , ,337 5,955 Guidance - regular school 2,496,679 2,468,289 2,410, ,038 Health services - regular school 2,007,114 2,035,695 1,874, ,358 Psychological services - regular school 774, , , ,220 Social work services - regular school 754, , ,096 3,463 Speech services - regular school 224, , ,437 Co-curricular activities - regular school 363, , ,016 4,709 12,000 Interscholastic athletics - regular school 961, , ,412 20,786 7,915 Total instructional media 4,953,673 5,354,766 4,664, , , 107 Instructional media: School library and audio/visual 1,298,991 1,346,225 1,231, , 198 Computer assisted instruction 3,654,682 4,008,541 3,432, , ,909 Total teaching - special school 254, , ,511 11,134 Teaching - special school: Summer/extended school year 254, , ,511 11,134 Total programs for children with handicapping conditions 24,546,541 25,462,262 25,407,014 16,869 38,379 Programs for children with handicapping conditions: Programs for students with disabilities 24,546,541 25,462,262 25,407,014 16,869 38,379 Total teaching - regular school 62,525,002 61,770,432 59,920, ,367 1,737,158 Teaching - regular school 62,525,002 61,770,432 59,920, ,367 1,737,158 Total instruction, administration and improvement 7,761,990 7,675,163 7, 165,620 6, ,872 INSTRUCTION Instruction, administration and improvement: Curriculum development and supervision 1,963,528 1,879,373 1,620,094 6, ,007 Supervision - regular school 5,299,477 5,289,805 5,128, ,140 Research, planning and evaluation 290, , ,380 66,755 In-service training - instruction 208, , , ,970 Total general support 17,842,915 23,852,977 21,913,237 1,464, ,240 Total special items 2,438,323 7,455,884 7,404,773 51, 111 GENERAL SUPPORT, CONT'D: Special items: Unallocated insurance $ 700,000 $ 699,908 $ 683,512 $ $ 16,396 School association dues 25,000 25,000 24, Assessments on school property 230, , ,145 33,855 Refunds of real property taxes 775,000 5,805,350 5,805,350 Administrative charge - BOCES 708, , ,626 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK SCHEDULE OF REVENUES, EXPENDITURES AND OTHER FINANCING SOURCES {USES} COMPARED TO BUDGET - GENERAL FUND {CONTINUED} FOR THE YEAR ENDED JUNE 30, 2015 OTHER SUPPLEMENTARY INFORMATION

72 Budget Amounts Original Final Year-end Budget Budget Actual Encumbrances Variance -69- Fund balance, end of year $ 51,513,055 $ 51,513,055 $ 59,785,478 Fund balance, beginning of year 51,513,055 51,513,055 51,513,055 Change in fund balance 8,272,423 $ 1,987,776 $ 6,284,647 Total expenditures and other financing uses 199,900, ,079, ,734,277 1,987,776 6,357,649 OTHER FINANCING USES Transfers out 2,442,150 2,527,155 2,527, Total expenditures 197,457, ,552, ,207,242 1,987,776 6,357,529 Total debt service 10,872,768 10,872,768 10,872,768 Total interest 3,436,188 3,436,188 3,436, 188 Interest: Serial bonds 3,081,834 3,081,834 3,081,834 Energy performance contract 354, , ,354 Total principal 7,436,580 7,436,580 7,436,580 DEBT SERVICE Principal: Serial bonds 6,805,000 6,805,000 6,805,000 Energy performance contract 631, , ,580 Total employee benefits 51,653,000 51,207,975 48,631,647 2,576,328 Employee benefits: Employee state retirement 2,500,000 2,500,000 2,122, ,457 Teachers' retirement 14,320,000 14,320,000 13,985, ,026 Social security 7,100,000 7,100,000 6,776, ,476 Workers' compensation benefits 615, , ,540 23,460 Life insurance 80,000 80,000 72,663 7,337 Unemployment benefits 150, ,000 84,104 55,896 Disability insurance 10,000 20,000 18,771 1,229 Hospital, medical and dental insurance 24,100,000 23,677,375 22,357,621 1,319,754 Dental insurance 570, , ,007 71,593 Health insurance waiver 1,250,000 1,225,000 1,216,334 8,666 Union welfare benefits 950, , ,500 46,500 Other 8,000 9,000 2,066 6,934 Total pupil transportation 9,237,321 9,269,298 8,837,248 31, ,362 Pupil transportation: District transportation services $ 209,339 $ 261,481 $ 223,856 $ 31,688 $ 5,937 Contract and public carrier transportation 9,027,982 9,007,817 8,613, ,425 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK SCHEDULE OF REVENUES, EXPENDITURES AND OTHER FINANCING SOURCES {USES} COMPARED TO BUDGET - GENERAL FUND {CONTINUED} FOR THE YEAR ENDED JUNE 30, 2015 OTHER SUPPLEMENTARY INFORMATION

73 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK COMPARATIVE BALANCE SHEET-CAPITAL PROJECTS FUND AS OF JUNE 30, 2015 AND Total liabilities and fund balance (deficit) $ 30,580,894 $ 25,647,870 Total fund balance (deficit) (13,673,293) (6,636,808) FUND BALANCE (DEFICIT) Restricted 30,280,894 25,647,870 Unassigned (43,954, 187) (32,284,678) Total liabilities 44,254,187 32,284,678 LIABILITIES Due to other funds $ 1,944,859 $ 1,834,987 Advances from other funds 449, ,691 Bond anticipation notes payable 41,859,637 30,000,000 Total assets $ 30,580,894 $ 25,647,870 Due from other funds 300,000 Investments: Restricted 17,029,469 20,000, ASSETS Cash and cash equivalents: Restricted $ 13,251,425 $ 5,647,533 OTHER SUPPLEMENTARY INFORMATION

74 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE (DEFICIT) - CAPITAL PROJECTS FUND FOR THE YEARS ENDED JUNE 30, 2015 AND Fund balance (deficit), end of year $ {13,673,293} $ {6,636,808} Fund balance (deficit), beginning of year (6,636,808) (1,860,305) Change in fund balance (deficit) (7,036,485) (4,776,503) Total expenditures 9,037,350 4,919,905 EXPENDITURES Capital outlay 9,037,350 4,919,905 Total revenues and other financing sources 2,000, ,402 OTHER FINANCING SOURCES Transfers in 2,000, 150 Total revenues , REVENUES Miscellaneous sources $ 715 $ 143,402 OTHER SUPPLEMENTARY INFORMATION

75 OTHER SUPPLEMENTARY INFORMATION Total liabilities and deferred inflows of resources $ 7,227,399 DEFERRED INFLOWS OF RESOURCES Grant monies received in advance 11, 160 Total liabilities 7,216,239 LIABILITIES Accounts payable $ 538,946 Accrued liabilities 3,970 Due to other funds 6,673,323 Due to fiduciary funds Unearned revenues Total assets $ 7,227,399 Receivables: State and Federal aid 5,089,517 Due from other funds 61, ASSETS Cash and cash equivalents: Restricted $ 2,076,642 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK COMPARATIVE BALANCE SHEET - SPECIAL AID FUND AS OF JUNE 30, 2015 AND 2014 $ $ $ $ 3,883,130 30,656 3,852, ,397 7,595 3,265,736 2,745 6,001 3,883,130 3,883,130

76 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL SPECIAL AID FUND FOR THE YEARS ENDED JUNE 30, 2015 AND 2014 OTHER SUPPLEMENTARY INFORMATION REVENUES Original Final Year-end Original Final Year-end Bud!i!et Budget Actual Encumbrances Variance Budget Budget Actual Encumbrances Variance State sources $ 4,512,805 $ 4,454,013 $ 3,940,857 $ (513,156) $ 3,204,991 $ 3,161,583 $ 2,684,781 $ (476,802) Federal sources 4,048,408 4,122,887 3,420,598 (702,289) 3,620,605 3,695,634 3,192,262 (503,372) Miscellaneous 41, ,987 {11,284) 38, ,142 32, 141 (6,001) Total revenues 8,602,484 8,628, 171 7,401,442 (1,226,729) 6,863,738 6,895,359 5,909,184 (986, 175) OTHER FINANCING SOURCES Transfers in 598, , ,885 (71,115) 483, , ,538 (81,462) Total revenues and other financing sources 9,200,484 9,226,171 7,928,327 (1,297,844) 7,346,738 7,378,359 6,310,722 (1,067,637) EXPENDITURES General support: Central services 18,590 18,590 17,320 1,270 Total general support 18,590 18,590 17,320 1,270 Instruction: Instruction, administration and improvement 286, , ,270 $ 2, , , ,265 $ 4,938 Teaching regular school 2,338,232 2,440,143 2,031, , ,662 2,059,302 2,067,184 1,831,312 36, ,802 Programs for students with handicapping conditions 5, 126,874 5,019,579 4,479, ,946 3,740,434 3,740,434 3,087, ,587 Teaching special schools 41,271 50,270 38,992 1,800 9,478 33, ,142 27,140 6,002 Total instruction 7,792,897 7,798,364 6,836,000 81, , 188 6,205,820 6,228,963 5,329,564 36, ,329 Pupil transportation 936, , , , , , , ,218 Employee benefits 452, , ,626 1, , , ,059 4,020 Total expenditures 9,200,484 9,226, 171 7,928,327 $ 81,176 1,216,668 7,346,738 7,378,359 6,310,722 $ 36,070 1,031,567 Change in fund balance $ (81,176) $ (36,070) Fund balance, beginning of the year Fund balance, end of year $ $ $ $ $ $ -73-

77 CITY SCHOOL DISTRICT OF WHITE PLAINS 1 NEW YORK COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 (With Comparative Totals for 2014) -74- Total liabilities and fund balance $ 1,775,526 $ 2,364,200 $ 4,139,726 $ 3,748,420 Total fund balance 793,501 1,814,358 2,607,859 2,743,679 FUND BALANCE Fund balance: Nonspendable 83,378 83,378 94,577 Restricted 1,814,358 1,814,358 1,814,358 Assigned 710, , ,744 Total liabilities 982, ,842 1,531,867 1,004,741 LIABILITIES Accounts payable $ 12,105 $ $ 12,105 $ 20,347 Accrued liabilities 26,110 26,110 47,121 Due to other funds 896, ,842 1,446, ,638 Due to fiduciary funds ,934 Unearned revenues 46,552 46,552 34,701 Total assets $ 1,775,526 $ 2,364,200 $ 4,139,726 $ 3,748,420 Total Total Non-Major Non-Major School Debt Governmental Governmental Lunch Service Funds Funds Fund Fund ASSETS Cash and cash equivalents: Unrestricted $ 1,400,317 $ $ 1,400,317 $ 999,100 Receivables: Accounts receivable, net 116, ,103 99,740 State and Federal aid 175, , ,803 Due from other funds 2,364,200 2,364,200 2,364,200 Inventory 83,378 83,378 94,577 OTHER SUPPLEMENTARY INFORMATION

78 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NON-MAJOR GOVERNMENT AL FUNDS FOR THE YEAR ENDED JUNE 30, 2015 {With Comi;iarative Totals for 2014} Total Total Non-Major Non-Major -75- Fund balance, end of year $ 793,501 $ 1,814,358 $ 2,607,859 $ 2,743,679 Fund balance, beginning of year 929,321 1,814,358 2,743,679 3,051,947 Change in fund balance (135,820) (135,820) (308,268) Total other financing sources (uses) (341,100) OTHER FINANCING SOURCES (USES) Other financing source 258,900 lnterfund transfers out {600,000) Excess (deficiency) of revenues over (under) expenditures {135,820) {135,820) 32,832 Total expenditures 3,815,789 3,815,789 3,622,090 EXPENDITURES Cost of sales 3,815,789 3,815,789 3,622,090 Total revenues 3,679,969 3,679,969 3,654,922 School Debt Governmental Governmental Lunch Service Funds Funds Fund Fund REVENUES Use of money and property $ 512 $ $ State sources 62,737 62,737 Federal sources 2,213,066 2,213,066 Food sales 1,403,654 1,403,654 1,472,575 2, 115, ,475 $ OTHER SUPPLEMENT ARY INFORMATION

79 OTHER SUPPLEMENTARY INFORMATION -76- Total liabilities and fund balance $ 1,775,526 $ Total fund balance 793,501 FUND BALANCE Nonspendable 83,378 Assigned 710,123 Total liabilities 982,025 LIABILITIES , ,625 26,110 $ Total assets $ 1,775,526 $ ASSETS 2015 Unrestricted $ 1,400,317 Receivables: Accounts receivable, net State and Federal aid Inventory Cash and cash equivalents: 83, , ,103 $ CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK COMPARATIVE BALANCE SHEET-SCHOOL LUNCH FUND AS OF JUNE 30, 2015 AND ,384, ,321 94, , ,899 20,347 47, ,796 1,934 34,701 1,384,220 99, ,803 94, ,

80 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - SCHOOL LUNCH FUND FOR THE YEARS ENDED JUNE 30, 2015 AND Fund balance, end of year $ 793,501 $ 929,321 Fund balance, beginning of year 929, ,489 Change in fund balance (135,820) 32,832 Total expenditures 3,815,789 3,622,090 EXPENDITURES Cost of sales 3,815,789 3,622,090 Total revenues 3,679,969 3,654, REVENUES Use of money and property $ State sources 62,737 Federal sources 2,213,066 Food sales 1,403,654 1,472,575 2, 115, ,475 $ OTHER SUPPLEMENTARY INFORMATION

81 AS OF JUNE 30, 2015 AND 2014 OTHER SUPPLEMENTARY INFORMATION -78- Total liabilities and fund balance $ 2,364,200 $ Total fund balance 1,814,358 FUND BALANCE Fund balance: Restricted 1,814,358 Total liabilities 549,842 LIABILITIES Due to other funds $ 549,842 $ Total assets $ 2,364,200 $ 2015 ASSETS Due from other funds $ 2,364,200 $ CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK COMPARATIVE BALANCE SHEET - DEBT SERVICE FUND 2,364,200 1,814,358 1,814, , ,842 2,364,200 2,364,

82 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DEBT SERVICE FUND FOR THE YEARS ENDED JUNE 30, 2015 AND Fund balance, end of year $ 1,814,358 $ 1,814,358 Fund balance, beginning of year 1,814,358 2, 155,458 Change in fund balance (341, 100) Total other financing sources (uses) (341, 100) OTHER FINANCING SOURCES (USES) Premium on obligations 258,900 lnterfund transfers out (600,000) Total revenues REVENUES Use of money and property $ $ OTHER SUPPLEMENTARY INFORMATION

83 OTHER SUPPLEMENTARY INFORMATION CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES (AGENCY FUNDS) FOR THE YEAR ENDED JUNE 30, 2015 ASSETS Balance Balance July 1, 2014 Increases Decreases June 30, 2015 Cash and cash equivalents $ 427, 193 $ 102,217,953 $ 102,224,019 $ 421, 127 Due from governmental funds 4,679-4, Total assets $ 431,872 $ 102,217,953 $ 102,228,065 $ 421,760 LIABILITIES - Due to governmental funds $ 116,183 $ - $ 91,095 $ 25,088 Employee payroll deductions - 101,861, ,861,517 Deposits 144,412 61, ,287 Extraclassroom activity balances 171, , , ,385 Total liabilities $ 431,872 $ 102,217,953 $ 102,228,065 $ 421,

84 82 Note To Financial Statement Elementary Schools Middle School High School Cash Receipts And Disbursements: Financial Statements: CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK EXTRACLASSROOM ACTIVITY FUNDS TABLE OF CONTENTS -81- Independent Auditor's Report On Extraclassroom Activity Funds Financial Statements

85 INDEPENDENT AUDITOR'S REPORT ON EXTRACLASSROOM ACTIVITY FUNDS FINANCIAL STATEMENTS -82- We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statement of cash receipts and disbursements is free from material misstatement. Auditor's Responsibility Management is responsible for the preparation and fair presentation of these financial statements in accordance with the cash basis of accounting described in Note 1 ; this includes determining that the cash basis of accounting is an acceptable basis for the preparation of the financial statement in the circumstances. Management is also responsible for 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. Management's Responsibility for the Financial Statements We have audited the accompanying statement of cash receipts and disbursements of the various Extraclassroom Activity Funds of the City School District of White Plains, New York (the "District") for the year ended June 30, 2015, and the related note to financial statement, which collectively comprise the financial statements of the District's Extraclassroom Activity Funds. To the Board of Education of the City School District of White Plains, New York: NawrockiSmith CERTIFIED PUBLIC ACCOUNTANTS

86 Opinion In our opinion, the statement of cash receipts and disbursements referred to above presents fairly, in all material respects, the cash receipts and disbursements of the Extraclassroom Activity Funds of the City School District of White Plains, New York for the year ended June 30, 2015 in accordance with the basis of accounting described in Note Melville, New York September 18, 2015 We draw attention to Note 1 of these financial statements, which describes the basis of accounting. The financial statements are prepared on the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Basis of Accounting NawrockiSmith

87 High School: Academic Challenge Advocates for the Earth Asian Club Band/Orchestra Black Awareness Choral Club Class of 2014 Class of 2015 Class of 2016 Class of 2017 Class of 2018 Dream Team French Club Gay and Straight Alliance General Organization German Club Global Ambassadors Go Pink Human Rights Hatian Group Italian Club Jazz Band J.E.T.S. Jiggy Showcase Key Club Library Group Latino Advancement Coalition Martial Arts Math Team Midnight Run Musical National Art Honor Society National Honor Society Oracle Orange Ping Pong Group Quidditch Club ROAR S.A.D.D. Science Research S.E.E.D. Songwriters Spanish Club Steppers Sympony Orchestra Theater Unlimited Wonder Women $ $ The accompanying note is an integral part of this financial statement , $ 221, $ 210, Cash Balances July 1, 2014 Receipts Disbursements $ 13, $ , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK EXTRACLASSROOM ACTIVITY FUNDS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS FOR THE YEAR ENDED JUNE 30, 2015 $ $ $ 142, Cash Balances Transfers June 30, 2015 $ 1, (230.48) 1, , (483.44) , (2,712.65) (520.35) , , , (207.50) 6, , , (105.00) (12.00) (1,570.00) (50.00) (3,370.00) 1, , (42.71) 12, , , (35.00) 1, (243.90) , , (35.00) 1, (1,445.00) , {28.00} 0.65

88 Middle School: Animal Lovers Class of 2020 Fun in Sun General Student Organization Gowns Health Jazz Band Media Center Planners Principal School Store Theatre Yearbook Valentines Crew 6th Grade Dance 7th Grade Legacy 8th Grade Dance $ {CONTINUED} FOR THE YEAR ENDED JUNE 30, 2015 $ (486.80) Cash Balances June 30, 2015 $ CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK EXTRACLASSROOM ACTIVITY FUNDS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS The accompanying note is an integral part of this financial statement , $ 57, $ 53, Cash Balances July 1, 2014 Receipts Disbursements $ 10, , , , , , , , , , (12,842.30) $ 4, , , , , , , , , , , , , $ (235.87) (619.47) (1,768.04) (9,583.30) (7,745.51) 9, (71.04) (145.00) 11, Transfers $ 40, , , , (11,306.57) , , (2,815.52) $ 7,589.60

89 CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK EXTRACLASSROOM ACTIVITY FUNDS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2015 Elementary Schools: General Student Account Cash Balances July 1, 2014 Receipts Disbursements Transfers $ 4, $ 15, $ 11, $ ===== Cash Balances June 30, 2015 $ 7, The accompanying note is an integral part of this financial statement. -86-

90 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The transactions of the Extraclassroom Activity Funds are considered part of the reporting entity of the City School District of White Plains, New York (the "District") The accounts of the Extraclassroom Activity Funds of the District are maintained on a cash basis, and the statement of cash receipts and disbursements reflects only cash received and disbursed. Therefore, receivables and payables, inventory, long-lived assets, and accrued income and expenses, which would be recognized under accounting principles generally accepted in the United States of America, and which may be material in amount, are not recognized in the accompanying financial statements. CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK EXTRACLASSROOM ACTIVITY FUNDS NOTE TO FINANCIAL STATEMENT FOR THE YEAR ENDED JUNE 30, 2015

91 U.S. Department of Education Passed - Through Programs From: Federal Grantor/ Pass - Through Grantor/ Cluster Title/Program Title Federal CFDA Number The accompanying notes should be read in conjunction with this schedule TOTAL FEDERAL EXPENDITURES Total U.S. Department of Agriculture Child Nutrition Cluster: School Breakfast Program National School Lunch Program - Commodities National School Lunch Program - Cash New York State Office of General Services Passed - Through Programs From: Summer Food Service Program For Children Direct Program: U.S. Department of Agriculture Total U.S. Department of Education ESEA, Title I, Part A, Grants to Local Educational Agencies ESEA, Title I, Part A, Grants to Local Educational Agencies ESEA, Title II, Part A, Improving Teacher Quality State Grants ESEA, Title Ill, Part A, Language Instruction For Immigrant Students ESEA, Title Ill, Part A, Language Instruction For Immigrant Students Education for Hornless Children and Youth Race To The Top - ARRA A A A A A A A Special Education Cluster: IDEA, Part B, Section 611, Special Education Grants to States IDEA, Part B, Section 619, Special Education Preschool Grants A A New York State Department of Education CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2015 NIA NIA NIA NIA Pass - Through Entity Identifying Number $ 5,633,664 2,213, , ,943 1,665, ,027 3,420,598 1,703, ,520 1,072, ,194 7, ,008 41,250 1,575 1,717,276 $ 1,659,688 57,588 Total Federal Expenditures

92 1. Basis of Presentation -89- The District has determined that all federal programs with expenditures of $300,000 or more are Type A Programs for purposes of determining Major Programs. 5. Major Program Determination Matching costs (i.e. the District's share of certain program costs) are not included in the reported expenditures. 4. Matching Costs Indirect costs may be included in the reported expenditures to the extent they are included in the federal financial reports used as the source of the data presented. 3. Indirect Costs The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger which is the source of the financial statements. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. 2. Basis of Accounting The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the City School District of White Plains, New York (the "District"), an entity as defined in Note 1 to the District's financial statements. Federal awards received directly from federal agencies, as well as federal awards passed-through from other government agencies, are included on the Schedule of Expenditures of Federal Awards. CITY SCHOOL DISTRICT OF WHITE PLAINS, NEW YORK NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

93 -90- Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. In planning and performing our audit of the financial statements, we considered the District's internal control over financial reporting ("internal control") to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. Internal Control Over Financial Reporting We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, the fiduciary funds and the aggregate remaining fund information of the City School District of White Plains, New York (the "District"), as of and for the year ended June 30, 2015, and the related notes to financial statements, which collectively comprise the District's basic financial statements, and have issued our report thereon dated September 18, To the Board of Education of the City School District of White Plains, New York: INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Nawrocki Smith CERTIFIED PUBLIC ACCOUNTANTS

94 Compliance and Other Matters -91- Melville, New York September 18, 2015 The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Purpose of this Report The District's response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. District's Response to Finding As part of obtaining reasonable assurance about whether the District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance that is required to be reported under Government Auditing Standards and is described in the accompanying schedule of findings and questioned costs as item NawrockiSmith

95 -92- In our opinion, the District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, Opinion on Each Major Federal Program We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the District's compliance. Our responsibility is to express an opm1on on compliance for each of the District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. Auditor's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Management's Responsibility We have audited the City School District of White Plains, New York's (the "District") compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the District's major federal programs for the year ended June 30, The District's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Report on Compliance for Each Major Federal Program To the Board of Education of the City School District of White Plains, New York: INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 NawrockiSmith CERTIFIED PUBLIC ACCOUNTANTS

96 Report on Internal Control Over Compliance -93- Melville, New York September 18, 2015 The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, however, material weaknesses may exist that have not been identified. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Management of the District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City School District of White Plains, New York's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City School District of White Plains, New York's internal control over compliance. NawrockiSmith