as our business has grown , we have become increasingly subject to the risks arising from adverse changes in domestic and global economic conditions . if general economic conditions were to deteriorate , including declines in 40 private sector employment growth and business productivity , increases in the unemployment rate and changes in interest rates , we may experience delays in our sales cycles , increased pressure from prospective customers to offer discounts and increased pressure from existing customers to renew expiring recurring revenue agreements for lower amounts . our interest income on funds held for clients continues to be adversely impacted by historically low interest rates . our operating subsidiary paylocity corporation was incorporated in july 1997 as an illinois corporation . in november 2013 , we formed paylocity holding corporation , a delaware corporation , of which paylocity corporation is a wholly owned subsidiary . paylocity holding corporation had no operations prior to the restructuring . all of our business operations , excluding interest earned on certain cash holdings and expenses associated with certain secondary stock offerings , have historically been , and are currently , conducted by paylocity corporation , and the financial results presented herein are entirely attributable to the results of its operations . key metrics we regularly review a number of metrics , including the following key metrics , to evaluate our business , measure our performance , identify trends affecting our business , formulate financial projections and make strategic decisions . recurring revenue growth our recurring revenue model and high annual revenue retention rates provide significant visibility into our future operating results and cash flow from operations . this visibility enables us to better manage and invest in our business . recurring revenue , which is comprised of recurring fees and interest income on funds held for clients , increased from $ 144.1 million in fiscal 2015 to $ 220.1 million in fiscal 2016 , representing a 53 % year-over-year increase . recurring revenue increased from $ 220.1 million in fiscal 2016 to $ 288.4 million in fiscal 2017 , representing a 31 % year-over-year increase . recurring revenue was positively impacted by the launch in fiscal 2016 of our affordable care act ( “ aca ” ) compliance solution , which had significant penetration beginning in the second quarter of fiscal 2016. the impact on year-over-year revenue growth of our aca compliance solution was the highest in the first quarter of fiscal 2017. recurring revenue represented 94 % , 95 % and 96 % of total revenue in fiscal 2015 , 2016 and 2017 , respectively . client count growth we believe there is a significant opportunity to grow our business by increasing our number of clients . we have increased our number of clients from approximately 10,350 as of june 30 , 2015 to approximately 14,550 as of june 30 , 2017 , representing a compound annual growth rate of approximately 19 % . the table below sets forth our client count for the periods indicated , rounded to the nearest fifty . replace_table_token_7_th the rate at which we add clients is highly variable period-to-period and highly seasonal as many clients switch solutions during the first calendar quarter of each year . although many clients have multiple divisions , segments or locations , we only count such clients once for these purposes . annual revenue retention rate our annual revenue retention rate has been in excess of 92 % during each of the past three fiscal years . we calculate our annual revenue retention rate as our total revenue for the preceding 12 months , less the annualized value of revenue lost during the preceding 12 months , divided by our total revenue for the preceding 12 months . we calculate the annualized value of revenue lost by summing the recurring fees paid by lost clients over the previous twelve months prior to their termination if they have been a client for a minimum of twelve months . for those lost clients who became clients within the last twelve months , we sum the recurring fees for the period that they have been a client and then 41 annualize the amount . we exclude interest income on funds held for clients from the revenue retention calculation . we believe that our annual revenue retention rate is an important metric to measure overall client satisfaction and the general quality of our product and service offerings . recurring fees from new clients we calculate recurring fees from new clients as the percentage of year-to-date recurring fees from all clients on our solutions , which had not been on or used any of our solutions for a full year as of the start of the current fiscal year . we believe recurring fees from new clients is an important metric to measure the expansion of our existing client base as well as the growth in our client base . our recurring fees from new clients was 45 % for both fiscal 2015 and fiscal 2016 and 40 % for fiscal 2017. adjusted gross profit , adjusted recurring gross profit and adjusted ebitda we disclose adjusted gross profit , adjusted recurring gross profit and adjusted ebitda because we use them to evaluate our performance , and we believe adjusted gross profit , adjusted recurring gross profit and adjusted ebitda assist in the comparison of our performance across reporting periods by excluding certain items that we do not believe are indicative of our core operating performance . we believe these metrics are used in the financial community , and we present it to enhance investors ' understanding of our operating performance and cash flows . story_separator_special_tag general and administrative replace_table_token_16_th general and administrative expenses for the year ended june 30 , 2017 increased by $ 14.5 million , or 31 % , to $ 62.1 million from $ 47.6 million for the year ended june 30 , 2016. general and administrative expenses increased primarily as a result of $ 6.3 million of additional stock-based compensation costs , of which $ 2.9 million is related to modified equity awards as explained in note 13 of the notes to the consolidated financial statements included in part ii , item 8 : “ financial statements and supplementary data ” , $ 3.9 million of increased occupancy costs incurred as a result of our requirement for additional office space and $ 3.8 million of additional employee-related expenses including the addition of 14 personnel . general and administrative expenses for the year ended june 30 , 2016 increased by $ 14.8 million , or 45 % , to $ 47.6 million from $ 32.8 million for the year ended june 30 , 2015. general and administrative expenses increased primarily as a result of $ 6.7 million of additional employee-related expenses relating to 36 additional personnel , $ 2.9 million of additional stock-based compensation costs , $ 1.5 million of increased occupancy costs incurred as a result of our requirement for additional office space and $ 1.3 million of increased professional services fees . other income ( expense ) replace_table_token_17_th * not meaningful other income ( expense ) for the year ended june 30 , 2017 increased by $ 0.2 million as compared to the year ended june 30 , 2016. other income ( expense ) for the year ended june 30 , 2017 primarily consists of interest income earned on our cash and cash equivalents , partially offset by loss on the disposal of property and equipment . other income ( expense ) for the year ended june 30 , 2016 decreased by $ 0.2 million as compared to the year ended june 30 , 2015. other income ( expense ) for the year ended june 30 , 2016 primarily consists of loss on the disposal of property and equipment , partially offset by interest income earned on our cash and cash equivalents . income tax expense replace_table_token_18_th * not meaningful 49 income tax expense for the year ended june 30 , 2017 was higher due to the generation of net income for fiscal 2017 as compared to the year ended june 30 , 2016. income tax expense for the year ended june 30 , 2016 was not materially different as compared to the year ended june 30 , 2015. see note 11 of the notes to consolidated financial statements included in part ii , item 8 : “ financial statements and supplementary data ” of this annual report on form 10-k for further details on the valuation allowance and a reconciliation of the u.s. federal statutory rate to the effective tax rate . critical accounting policies and significant judgments and estimates in preparing our financial statements and accounting for the underlying transactions and balances in accordance with gaap , we apply various accounting policies that require our management to make estimates , judgments and assumptions that affect the amounts reported in our financial statements . we consider the policies discussed below as critical to understanding our financial statements , as their application places the most significant demands on management 's judgment . management bases its estimates , judgments and assumptions on historical experience , current economic and industry conditions and on various other factors deemed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . because the use of estimates is an integral part of the financial reporting process , actual results could differ and such differences could be material . revenue recognition we derive revenues predominantly from recurring revenues associated with our cloud-based payroll and hcm software applications and one-time service fees for implementation of our solutions . our agreements with clients do not include general rights of return and do not provide clients with the right to take possession of the software supporting the services being provided . as such , revenue is recognized as services are performed . we recognize revenue when all of the following criteria are achieved : · there is persuasive evidence of an agreement ; · the service has been provided to the client ; · the amount of fees to be paid by the client is fixed or determinable ; and · collection of the fees is reasonably assured . for arrangements with multiple-elements , we recognize revenues in accordance with accounting standards update ( asu ) 2009-13 , multiple-deliverable revenue arrangements . for each agreement , we evaluate whether the individual deliverables qualify as separate units of accounting . if one or more of the deliverables does not have standalone value upon delivery , the deliverables that do not have standalone value are generally combined and treated as a single unit of accounting . revenue for arrangements treated as a single unit of accounting is generally recognized within the same month that the services are rendered given that the agreements are cancellable with 60 days ' or less notice . in determining whether revenues from implementation services can be accounted for separately from recurring revenues , we consider the nature of the implementation services and the availability of the implementation services from other vendors . we established standalone value for implementation primarily due to the historical activity of third-party vendors that performed these services and as such , account for such implementation services separate from the recurring revenues . if we determine that the services have standalone value upon delivery , we account for each separately and revenues are recognized as the services are delivered with allocation of consideration based on the relative selling price method .

cash flows the following table sets forth data regarding cash flows for the periods indicated : replace_table_token_21_th operating activities net cash provided by operating activities was $ 11.1 million , $ 33.0 million and $ 62.0 million for the years ended june 30 , 2015 , 2016 and 2017 , respectively . the increase in net cash provided by operating activities from fiscal 2016 to fiscal 2017 as well as from fiscal 2015 to fiscal 2016 was primarily due to improved operating results after adjusting for non-cash items , including stock-based compensation expense and depreciation and amortization expense . investing activities net cash provided by ( used in ) investing activities was $ ( 199.2 ) million , $ ( 673.4 ) million and $ 259.3 million , for the years ended june 30 , 2015 , 2016 and 2017 , respectively . changes in net cash provided by ( used in ) investing activities are significantly influenced by the amount of funds held for clients at the end of a reporting period . changes in the amount of funds held for clients from period to period will vary substantially as a result of the timing of payroll and tax obligations due . our payroll processing activities involves the movement of significant funds from the account of an employer to employees and relevant taxing authorities . during the year ended june 30 , 2017 , we processed over $ 92 billion in payroll transactions .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows the following table sets forth data regarding cash flows for the periods indicated : replace_table_token_21_th operating activities net cash provided by operating activities was $ 11.1 million , $ 33.0 million and $ 62.0 million for the years ended june 30 , 2015 , 2016 and 2017 , respectively . the increase in net cash provided by operating activities from fiscal 2016 to fiscal 2017 as well as from fiscal 2015 to fiscal 2016 was primarily due to improved operating results after adjusting for non-cash items , including stock-based compensation expense and depreciation and amortization expense . investing activities net cash provided by ( used in ) investing activities was $ ( 199.2 ) million , $ ( 673.4 ) million and $ 259.3 million , for the years ended june 30 , 2015 , 2016 and 2017 , respectively . changes in net cash provided by ( used in ) investing activities are significantly influenced by the amount of funds held for clients at the end of a reporting period . changes in the amount of funds held for clients from period to period will vary substantially as a result of the timing of payroll and tax obligations due . our payroll processing activities involves the movement of significant funds from the account of an employer to employees and relevant taxing authorities . during the year ended june 30 , 2017 , we processed over $ 92 billion in payroll transactions .
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 Suspicious Activity Report : as our business has grown , we have become increasingly subject to the risks arising from adverse changes in domestic and global economic conditions . if general economic conditions were to deteriorate , including declines in 40 private sector employment growth and business productivity , increases in the unemployment rate and changes in interest rates , we may experience delays in our sales cycles , increased pressure from prospective customers to offer discounts and increased pressure from existing customers to renew expiring recurring revenue agreements for lower amounts . our interest income on funds held for clients continues to be adversely impacted by historically low interest rates . our operating subsidiary paylocity corporation was incorporated in july 1997 as an illinois corporation . in november 2013 , we formed paylocity holding corporation , a delaware corporation , of which paylocity corporation is a wholly owned subsidiary . paylocity holding corporation had no operations prior to the restructuring . all of our business operations , excluding interest earned on certain cash holdings and expenses associated with certain secondary stock offerings , have historically been , and are currently , conducted by paylocity corporation , and the financial results presented herein are entirely attributable to the results of its operations . key metrics we regularly review a number of metrics , including the following key metrics , to evaluate our business , measure our performance , identify trends affecting our business , formulate financial projections and make strategic decisions . recurring revenue growth our recurring revenue model and high annual revenue retention rates provide significant visibility into our future operating results and cash flow from operations . this visibility enables us to better manage and invest in our business . recurring revenue , which is comprised of recurring fees and interest income on funds held for clients , increased from $ 144.1 million in fiscal 2015 to $ 220.1 million in fiscal 2016 , representing a 53 % year-over-year increase . recurring revenue increased from $ 220.1 million in fiscal 2016 to $ 288.4 million in fiscal 2017 , representing a 31 % year-over-year increase . recurring revenue was positively impacted by the launch in fiscal 2016 of our affordable care act ( “ aca ” ) compliance solution , which had significant penetration beginning in the second quarter of fiscal 2016. the impact on year-over-year revenue growth of our aca compliance solution was the highest in the first quarter of fiscal 2017. recurring revenue represented 94 % , 95 % and 96 % of total revenue in fiscal 2015 , 2016 and 2017 , respectively . client count growth we believe there is a significant opportunity to grow our business by increasing our number of clients . we have increased our number of clients from approximately 10,350 as of june 30 , 2015 to approximately 14,550 as of june 30 , 2017 , representing a compound annual growth rate of approximately 19 % . the table below sets forth our client count for the periods indicated , rounded to the nearest fifty . replace_table_token_7_th the rate at which we add clients is highly variable period-to-period and highly seasonal as many clients switch solutions during the first calendar quarter of each year . although many clients have multiple divisions , segments or locations , we only count such clients once for these purposes . annual revenue retention rate our annual revenue retention rate has been in excess of 92 % during each of the past three fiscal years . we calculate our annual revenue retention rate as our total revenue for the preceding 12 months , less the annualized value of revenue lost during the preceding 12 months , divided by our total revenue for the preceding 12 months . we calculate the annualized value of revenue lost by summing the recurring fees paid by lost clients over the previous twelve months prior to their termination if they have been a client for a minimum of twelve months . for those lost clients who became clients within the last twelve months , we sum the recurring fees for the period that they have been a client and then 41 annualize the amount . we exclude interest income on funds held for clients from the revenue retention calculation . we believe that our annual revenue retention rate is an important metric to measure overall client satisfaction and the general quality of our product and service offerings . recurring fees from new clients we calculate recurring fees from new clients as the percentage of year-to-date recurring fees from all clients on our solutions , which had not been on or used any of our solutions for a full year as of the start of the current fiscal year . we believe recurring fees from new clients is an important metric to measure the expansion of our existing client base as well as the growth in our client base . our recurring fees from new clients was 45 % for both fiscal 2015 and fiscal 2016 and 40 % for fiscal 2017. adjusted gross profit , adjusted recurring gross profit and adjusted ebitda we disclose adjusted gross profit , adjusted recurring gross profit and adjusted ebitda because we use them to evaluate our performance , and we believe adjusted gross profit , adjusted recurring gross profit and adjusted ebitda assist in the comparison of our performance across reporting periods by excluding certain items that we do not believe are indicative of our core operating performance . we believe these metrics are used in the financial community , and we present it to enhance investors ' understanding of our operating performance and cash flows . story_separator_special_tag general and administrative replace_table_token_16_th general and administrative expenses for the year ended june 30 , 2017 increased by $ 14.5 million , or 31 % , to $ 62.1 million from $ 47.6 million for the year ended june 30 , 2016. general and administrative expenses increased primarily as a result of $ 6.3 million of additional stock-based compensation costs , of which $ 2.9 million is related to modified equity awards as explained in note 13 of the notes to the consolidated financial statements included in part ii , item 8 : “ financial statements and supplementary data ” , $ 3.9 million of increased occupancy costs incurred as a result of our requirement for additional office space and $ 3.8 million of additional employee-related expenses including the addition of 14 personnel . general and administrative expenses for the year ended june 30 , 2016 increased by $ 14.8 million , or 45 % , to $ 47.6 million from $ 32.8 million for the year ended june 30 , 2015. general and administrative expenses increased primarily as a result of $ 6.7 million of additional employee-related expenses relating to 36 additional personnel , $ 2.9 million of additional stock-based compensation costs , $ 1.5 million of increased occupancy costs incurred as a result of our requirement for additional office space and $ 1.3 million of increased professional services fees . other income ( expense ) replace_table_token_17_th * not meaningful other income ( expense ) for the year ended june 30 , 2017 increased by $ 0.2 million as compared to the year ended june 30 , 2016. other income ( expense ) for the year ended june 30 , 2017 primarily consists of interest income earned on our cash and cash equivalents , partially offset by loss on the disposal of property and equipment . other income ( expense ) for the year ended june 30 , 2016 decreased by $ 0.2 million as compared to the year ended june 30 , 2015. other income ( expense ) for the year ended june 30 , 2016 primarily consists of loss on the disposal of property and equipment , partially offset by interest income earned on our cash and cash equivalents . income tax expense replace_table_token_18_th * not meaningful 49 income tax expense for the year ended june 30 , 2017 was higher due to the generation of net income for fiscal 2017 as compared to the year ended june 30 , 2016. income tax expense for the year ended june 30 , 2016 was not materially different as compared to the year ended june 30 , 2015. see note 11 of the notes to consolidated financial statements included in part ii , item 8 : “ financial statements and supplementary data ” of this annual report on form 10-k for further details on the valuation allowance and a reconciliation of the u.s. federal statutory rate to the effective tax rate . critical accounting policies and significant judgments and estimates in preparing our financial statements and accounting for the underlying transactions and balances in accordance with gaap , we apply various accounting policies that require our management to make estimates , judgments and assumptions that affect the amounts reported in our financial statements . we consider the policies discussed below as critical to understanding our financial statements , as their application places the most significant demands on management 's judgment . management bases its estimates , judgments and assumptions on historical experience , current economic and industry conditions and on various other factors deemed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . because the use of estimates is an integral part of the financial reporting process , actual results could differ and such differences could be material . revenue recognition we derive revenues predominantly from recurring revenues associated with our cloud-based payroll and hcm software applications and one-time service fees for implementation of our solutions . our agreements with clients do not include general rights of return and do not provide clients with the right to take possession of the software supporting the services being provided . as such , revenue is recognized as services are performed . we recognize revenue when all of the following criteria are achieved : · there is persuasive evidence of an agreement ; · the service has been provided to the client ; · the amount of fees to be paid by the client is fixed or determinable ; and · collection of the fees is reasonably assured . for arrangements with multiple-elements , we recognize revenues in accordance with accounting standards update ( asu ) 2009-13 , multiple-deliverable revenue arrangements . for each agreement , we evaluate whether the individual deliverables qualify as separate units of accounting . if one or more of the deliverables does not have standalone value upon delivery , the deliverables that do not have standalone value are generally combined and treated as a single unit of accounting . revenue for arrangements treated as a single unit of accounting is generally recognized within the same month that the services are rendered given that the agreements are cancellable with 60 days ' or less notice . in determining whether revenues from implementation services can be accounted for separately from recurring revenues , we consider the nature of the implementation services and the availability of the implementation services from other vendors . we established standalone value for implementation primarily due to the historical activity of third-party vendors that performed these services and as such , account for such implementation services separate from the recurring revenues . if we determine that the services have standalone value upon delivery , we account for each separately and revenues are recognized as the services are delivered with allocation of consideration based on the relative selling price method .

