Year Ending June 30, 2017

Document Highlights Include:

Cover Page (Page 1)

Table of Contents (Page 2)

Independent Auditors' Report (Pages 3-5)

Management's Discussion and Analysis (Unaudited) (Pages 6 - 15)

• Statement of Net Position (Page 16)
• Statement of Activities and Changes in Net Position (Page 17)
• Balance Sheet - Governmental Funds (Page 18)
• Reconciliation of Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to Statement of Activities (Page 19 - 20)
• Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position (Page 21)

• Schedule of Funding Progress of Postemployment Benefit Plan (Unaudited) (Page 48)
• Schedule of the District's Proportionate Share of the Net Pension Liability (Unaudited) (Page 49)
• Schedule of District Contributions (Unaudited) (Page 50)
• Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (Non-GAAP Basis) and Actual- General Fund (Unaudited) (Pages 51 - 52)

Supplementary Information:

• Schedule of Change from Adopted Budget to Final Budget and Real Property Tax Limit - General Fund (Page 53)
• Schedule of Capital Projects Fund - Project Expenditures and Financing Resources (Page 54)
• Combined Balance Sheet - Nonmajor Governmental Funds (Page 55)
• Combined Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds (Page 56)
• Net Investment in Capital Assets (Page 57)
• Schedule of Expenditures of Federal Awards (Page 58)

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 (Pages 59 - 60)

Schedule of Findings and Responses (Page 61)

Document Highlights Include:

A letter to the NYS Education Department from Superintendent Campbell on October 11, 2017 stating:

In response to the Communicating Internal Control Related Matters Identified in our Audit for year ended June 30, 2017, the following corrective action plan shall be enacted:

1. The School Business Administrator will print, review and sign the Vendor Change Report Monthly.

Approved by the Board of Education on October 10, 2017.

Document Highlights Include:

Cover Page (Page 1)

Table of Contents (Page 2)

Independent Auditors' Report (Page 3-4)

Statement of Cash Receipts and Disbursements for year ended June 30,2017 (Page 5)

Notes to Financial Statement (Page 6)

Auditors' Findings and Evaluation (Page 7-8)

Document Highlights Include:

To: Board of Education - Letchworth Central School District

A. Our Responsibility Under U.S. Generally Accepted Auditing Standards and Government Auditing Standards -

As stated in our engagement letter dated April 24, 2017, our responsibility, as described by professional standards, is to express an opinion about whether the financial statements prepared by management with your oversight are presented fairly, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities.

B. Planned Scope and Timing of the Audit - 

We performed the audit according to the planned scope and timing previously communicated to management and the Board in our engagement letter dated April 24, 2017.

C. Significant Audit Findings -

Qualitative Aspects of Accounting Practices

D. Difficulties Encountered in Performing the Audit

We encountered no significant difficulties in dealing with management in performing and completing our audit.

E. Corrected and Uncorrected Misstatements - 

Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole.

F. Disagreements with Management-

For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.

G. Management Representations- 

We have requested certain representations from management that are included in the management representation letter dated September 20, 201 7.

H. Management Consultations with Other Independent Accountants - 

In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on cet1ain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

I. Other Audit Findings or Issues - 

We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

J. Other Matters -

We applied certain limited procedures to the management's discussion and analysis, schedule of funding progress ofpostemployment benefit plan, schedule of District's propot1ionate share of the net pension liability, schedule of District contributions, and budget comparisons, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquires, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on supplementary information accompanying the financial statements (as listed in the table of contents) but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

This information is intended solely for the use of the Board of Education and management of the Letchworth Central School District, New York and is not intended to be and should not be used by anyone other than these specified parties.

Letter signed - Raymond F. Wager, CPA, P.C.

Document Highlights Include:

COMMUNICATING INTERNAL CONTROL RELATED MATTERS IDENTIFIED IN AN AUDIT For Year Ended June 30, 2017