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HomeMy WebLinkAbout2025 Bonneville School District AuditBonneville Joint School District #93 Idaho Falls, Idaho Annual Financial Report Year Ended June 30, 2025 Bonneville Joint School District #93 Year Ended June 30, 2025 Table of Contents Independent Auditor's Report................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................1 Management's Discussion and Analysis................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................4 Basic Financial Statements Government-wide Financial Statements Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................11 Statement of Activities................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................13 Fund Financial Statements Balance Sheet - Governmental Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................14 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................15 Statement of Revenues, Expenditures and Changes In Fund Balances - Governmental Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................16 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................17 Notes to Financial Statements................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................18 Required Supplementary Information General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................52 Child Nutrition Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................54 Schedule of District's Proportionate Share of Net OPEB Liability and Related Ratios................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................55 Schedule of Employer's Share of the Net OPEB Asset - PERSI Sick-Leave Plan................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................56 Schedule of Employer Contributions - PERSI Sick-Leave Plan................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................57 Schedule of Employer's Share of the Net Pension Liability - PERSI Base Plan................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................58 Schedule of Employer Contributions - PERSI Base Plan................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................59 Notes to Required Supplementary Information................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................60 Supplementary Information All Nonmajor Funds: Combining Balance Sheet................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................61 Combining Schedule of Revenues, Expenditures and Change in Fund Balances................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................63 Schedule of Taxes Receivable................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................65 Compliance 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................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................66 Schedule of Findings and Responses................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................68 Summary Schedule of Prior Year Audit Findings................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................70 Independent Auditor's Report Board of Trustees Bonneville Joint School District #93 Idaho Falls, Idaho Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the governmental activities, each major fund, and the aggregate remaining fund information of Bonneville Joint School District #93 (the "District"), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. In our opinion,the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the governmental activities, each major fund, and the aggregate remaining fund information of Bonneville Joint School District #93 as of June 30, 2025, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Unmodified Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Bonneville Joint School District #93 and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our unmodified opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States (GAAP), and 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Bonneville Joint School District #93's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. “Wipfli" is the brand name under which Wipfli LLP and Wipfli Advisory LLC and its respective subsidiary entities provide professional services. Wipfli LLP and Wipfli Advisory LLC (and its respective subsidiary entities) practice in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. Wipfli LLP is a licensed independent CPA firm that provides attest services to its clients, and Wipfli Advisory LLC provides tax and business consulting services to its clients. Wipfli Advisory LLC and its subsidiary entities are not licensed CPA firms. 1 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit 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 Bonneville Joint School District #93’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Bonneville Joint School District #93's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that a management's discussion and analysis, the budgetary comparison information, schedule of District's proportionate share of net OPEB liability and related ratios, schedule of employer's share of net OPEB asset - PERSI sick leave plan, schedule of contributions - PERSI sick leave plan, schedule of employer's share of the net pension liability - PERSI base plan, and schedule of employer contributions - PERSI base plan as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the 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. “Wipfli" is the brand name under which Wipfli LLP and Wipfli Advisory LLC and its respective subsidiary entities provide professional services. Wipfli LLP and Wipfli Advisory LLC (and its respective subsidiary entities) practice in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. Wipfli LLP is a licensed independent CPA firm that provides attest services to its clients, and Wipfli Advisory LLC provides tax and business consulting services to its clients. Wipfli Advisory LLC and its subsidiary entities are not licensed CPA firms. 2 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements as a whole. The combining and individual nonmajor fund financial statements and schedule of taxes receivable,are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 information is fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 13, 2025 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 solely 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 the effectiveness of Bonneville Joint School District #93's 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. Wipfli LLP Idaho Falls, Idaho October 13, 2025 “Wipfli" is the brand name under which Wipfli LLP and Wipfli Advisory LLC and its respective subsidiary entities provide professional services. Wipfli LLP and Wipfli Advisory LLC (and its respective subsidiary entities) practice in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. Wipfli LLP is a licensed independent CPA firm that provides attest services to its clients, and Wipfli Advisory LLC provides tax and business consulting services to its clients. Wipfli Advisory LLC and its subsidiary entities are not licensed CPA firms. 3 Bonneville Joint School District #93 Management's Discussion and Analysis Fiscal Year Ended June 30, 2025 Bonneville Joint School District #93's (the "District") management discussion and analysis (MD&A) is generally intended to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the District's financial activities, (3) identify changes in the District's financial position (its ability to meet future financial demands and conditions), (4) identify any material deviations from the governmental unit's financial plan (approved budget), and (5) identify individual fund issues or concerns. The MD&A is provided at the beginning of the report to provide an overview of the District's financial position at June 30, 2025, and the results of operations for the year. This summary should not be taken as a replacement for the audit report, which consists of the basic financial statements, notes to the financial statements, required and supplementary information. Financial Highlights for 2025 Key financial highlights for 2025 are as follows: In total, net position increased $43,948,660 compared to 2024. General revenues accounted for $174,028,172 in revenue or 84.20% of all governmental revenues. Program specific revenues in the form of charges for services, operating grants and contributions, and capital grants and contributions accounted for $32,666,793 or 15.80% of total revenues of $206,694,965. Total assets of governmental activities increased by $50,501,518 as current and other assets increased by $33,067,070 and capital assets increased by $17,434,448. Unrestricted net position, the part of net position that can be used to finance day-to-day activities without constraints established by grants or legal requirements of the District, decreased by $15,612,540 from prior year. The District had $162,746,305 in expenses; only $32,666,793 of these expenses was offset by program revenues (i.e. charges for services, operating and capital grants, or contributions). General revenues (primarily state aid and taxes) of $174,028,172 provided the additional revenue to cover these programs. Among major funds, the General Fund had $111,088,532 in revenues, and $114,698,290 in expenditures. The General Fund’s fund balance decreased $(4,141,887) from 2024. Overview of the Financial Statements This annual report serves as an introduction to the District's basic financial statements. There are three components to the basic financial statements - government wide financial statements, fund financial statements, and notes to the financial statements. This report also contains required supplementary and other financial information in addition to the basic financial statements themselves. Government-Wide Financial Statements These statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to private-sector business, using the economic resources measurement focus and the accrual basis of accounting. The Statement of Net Position and Statement of Activities provide information about the activities of the whole school District, presenting both an aggregate view of the District's finances and a longer-term view of those finances. Fund financial statements provide the next level of detail. For governmental funds, these statements tell how services were financed in the short-term as well as what remains for future spending. The fund financial statements also look at the District's most significant funds with all other nonmajor funds presented in total in one column. In Bonneville Joint School District #93, the General Fund is by far the most significant fund. Bonneville Joint School District #93 Management's Discussion and Analysis Fiscal Year Ended June 30, 2025 While this document contains the large number of funds used by the District to provide programs and activities, the view of the District as a whole looks at all financial transactions and asks the question, “How did we do financially during 2025?" The Statement of Net Position and the Statement of Activities answer this question. These statements include all assets and deferred outflows of resources, and liabilities and deferred inflows of resources using the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year’s revenues and expenses regardless of when cash is received or paid. These two statements report the District’s net position and changes in its net position. This change in net position is important because it tells the reader that, for the District as a whole, the financial position of the District has improved or diminished. The causes of this change may be the result of many factors, some financial and some not. Nonfinancial factors include the District’s property tax base, current property tax laws in Idaho restricting revenue growth, facility , required educational programs, and other factors. In the Statement of Net Position and the Statement of Activities, the District reports governmental activities. Governmental activities are the activities where most of the District’s programs and services are reported including, but not limited to, instruction, support services, operation and maintenance of plant, pupil transportation, and extracurricular activities. The District does not have any business type activities. Fund Financial Statements The analysis of the District's major funds begins on page 14. Fund financial reports provide detailed information about the District’s major funds. The District uses many funds to account for a multitude of financial transactions. However, these fund financial statements focus on the District’s most significant funds. The District’s major governmental funds are the General, Debt Service, Capital Projects, Construction, and Child Nutrition Funds. Governmental funds. Most of the District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year end available for spending in the future periods. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short- term view of the District's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the financial statements. Notes to the Financial Statements These provide additional information that is essential to gaining a full understanding of the data provided in the government-wide and fund financial statements. Required Supplementary Information This information addresses the District's budgetary comparison schedules of the General Fund and major special revenue funds, Pension, OPEB, and PERSI SL Plan information, and notes to the Required Supplementary Information. The District adopts an annual appropriated budget for its General and Child Nutrition Funds, Special Revenue Funds, and Debt Service Fund. A budgetary comparison schedule has been provided for the General Fund to demonstrate compliance with this budget. The Pension, OPEB, and PERSI Sick Leave plan schedules have been provided to present the District's progress in funding its obligation to provide pension and retirement benefits to District employees. 5 Bonneville Joint School District #93 Management's Discussion and Analysis Fiscal Year Ended June 30, 2025 Supplementary Financial Information This information as discussed earlier in connection with the General Fund and non-major governmental funds is presented immediately following the required supplementary information. This section includes a breakdown of property taxes and associated receivables, and the annual federal compliance section. Government-Wide Financial Statement Analysis As previously addressed, net position may serve the purpose over time as a useful indicator of financial position. The following table represents a condensed Statement of Net Position of the District for governmental activities: Condensed Statement of Net Position Governmental Activities June 30, 2025 2024 Current and other assets $135,311,629 $102,244,559 Capital assets 153,951,795 136,517,347 Total assets 289,263,424 238,761,906 Deferred outflows of resources 20,840,061 33,801,880 Total assets and deferred outflows of resources 310,103,485 272,563,786 Current and other liabilities 21,878,907 79,806,842 Long-term liabilities 189,143,122 137,377,328 Total liabilities 211,022,029 217,184,170 Deferred inflows of resources 3,838,718 4,085,538 Total liabilities and deferred inflows of resources 214,860,747 221,269,708 Net position: Net investment in capital assets 28,691,492 2,115,419 Restricted 98,588,517 65,603,380 Unrestricted (32,037,271)(16,424,721) Total net position $95,242,738 $51,294,078 Total assets of governmental activities increased by $50,501,518 as current and other assets increased by $33,067,070, and capital assets increased by $17,434,448. The District’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $95,242,738 at the close of 2025. Unrestricted governmental net position, the part of net position that can be used to finance day-to-day activities without constraints established by grants or legal requirements of the District, decreased by $15,612,550 from 2024. 6 Bonneville Joint School District #93 Management's Discussion and Analysis Fiscal Year Ended June 30, 2025 The following condensed financial information was derived from the Government-Wide Statement of Activities and reflects how the District's net position changed during fiscal years 2025 and 2024. Condensed Statement of Activities - Governmental Activities Year ended June 30,2025 2024 Revenues: Program revenues: Charges for services $4,832,178 $4,558,509 Operating grants and contributions 27,730,306 32,112,609 Capital grants and contributions 104,309 143,787 General revenue: Property taxes 14,702,825 12,751,166 Federal aid 3,057,466 2,874,072 State aid 148,184,443 96,064,460 Other 8,083,438 7,344,400 Total revenues 206,694,965 155,849,003 Program Expenses: Instruction 95,197,282 87,037,048 Support services 25,544,879 22,364,796 Administration 9,696,373 8,705,815 Business operations 2,857,600 2,867,634 Operations 12,973,393 12,657,743 Transportation 5,792,724 3,329,368 Community Service 265,032 207,352 Non-instructional 5,504,323 8,291,756 Interest and fiscal charges 4,160,964 7,205,739 Capital improvements 753,735 130,690 Total expenses 162,746,305 152,797,941 Change in net position $43,948,660 $3,051,062 Governmental Activities The District's 2025 total revenues come from three main sources including state aid of $166,031,343 which consists of the Idaho base support, other state grants, and revenue in lieu of taxes. These dollars make up 80.33% of revenues from governmental activities. Property taxes of $14,702,825 make up 7.11% of total revenues from governmental activities. Federal contracts and grants of $12,704,482 makes up 6.15% revenues from governmental activities. The District's 2025 instructional expenses when combined with instructional support services, which includes support services, administration, business operations, operations, and transportation, comprise 93.4% of District expenses. 7 Bonneville Joint School District #93 Management's Discussion and Analysis Fiscal Year Ended June 30, 2025 The Statement of Activities shows the cost of program services and grants offsetting those services. In the following table, we have presented the cost of each of the District's functions as well as the net cost (total cost less revenues generated by the activities) for each. Net cost helps to show what functions are being covered by direct revenue and those that are covered by the net revenue of others. % of Total Total cost of services Net cost of services Instruction %58.49 $95,197,282 $80,956,554 Support services %15.70 25,544,879 18,916,961 Administration %5.96 9,696,373 9,320,931 Business admin services %1.76 2,857,600 2,857,342 Operations %7.97 12,973,393 12,503,813 Transportation %3.56 5,792,724 1,730,385 Community services %0.16 265,032 259,130 Noninstructional %3.38 5,504,323 5,501,193 Interest and fiscal charges %2.56 4,160,964 (2,616,223) Capital improvements %0.46 753,735 649,426 Total governmental activities %100.00 $162,746,305 $130,079,512 Instruction: Instruction expenses include activities directly dealing with the teaching of pupils and the interaction between teacher and pupil.The pension and OPEB adjustments increased expenditures by $7,858,618 in 2025. Support Services: Support Services provide personnel services, activities, and programs for the administration, management, technical, and logistical support to facilitate and enhance the function of instruction and shall provide for the general operation of the school system. The pension and OPEB adjustments increased expenditures by $1,596,538 in 2025. Administrative: The personnel, activities, and services for directing and managing the operations of the schools in the District. (Principals, assistant principals, secretaries, and clerks charged with responsibility for a school’s administration.) Board of Education, Administration, Fiscal, and Business includes expenses associated with administrative and financial supervision of the District. The pension and OPEB adjustments increased expenditures by $870,688 in 2025. Business Operations: The program concerned with the fiscal operations of the District. This program may include budgeting, receiving and disbursing, purchasing, financial and property accounting, payroll, internal auditing, and the prudent management of District resources. Operations: Operations and maintenance includes the personnel, activities, and programs concerned with keeping the physical plant operational and keeping the grounds, buildings, and equipment in effective working condition and in an adequate and safe state of repair. The pension and OPEB adjustments increased expenditures by $556,522 in 2025. Transportation: Transportation includes the personnel, activities, and services for providing student transportation to school and to activities and to provide for the general administrative and maintenance needs of school district vehicles. The pension and OPEB adjustments increased expenditures by $368,445 in 2025. Noninstructional: Noninstructional services include the preparation, delivery, and servicing of lunches, snacks, and other incidental meals to students and school staff in connection with school activities. The pension and OPEB adjustments increased expenditures by $247,030 in 2025. Community Services & Student Activities: Student activities includes the fees, dues, and fundraising amounts collected at the school level which is used to support the associated clubs and school activities of the District. 8 Bonneville Joint School District #93 Management's Discussion and Analysis Fiscal Year Ended June 30, 2025 Interest and Fiscal Charges: Interest and fiscal charges involve the transactions associated with the payment of interest and other related charges to the debt of the District. Capital Improvements: Capital Improvements include capital expenditures for the schools that are not capitalized under the District’s capitalization policy. Financial Analysis of the District's Major Funds Governmental Funds The focus of the District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District's financing requirements. In particular, unreserved fund balances may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The District's major funds starts on page 14. These funds are accounted for using the modified accrual basis of accounting. All governmental funds had total revenues of $206,757,861 and expenditures of $178,515,928. The net change in fund balance for the year in the General Fund, Debt Service Fund, Capital Projects Fund, Construction Fund, and Child Nutrition Fund, a decrease of $4,141,887, a decrease of $219,528, an increase of $43,793,980, a decrease of $13,519,347, and a decrease of $777,974 respectively. The general fund is the primary operating fund of the District. At the end of the current fiscal year there was no unassigned fund balance in the general fund.All available funds at year end were reserved for payment of expenses and projects to be paid in the next fiscal year. Budgetary Highlights During 2025, the District did not amend its budget. For the General Fund, the budgeted revenue was $110,614,414 and the budgeted expenditures was $125,003,181. Actual revenue was $111,088,532 which includes $417,781 in professional development funds. Actual expenditures were $114,698,290, which include expenditures related to professional development. Capital Assets and Debt Administration At the end of the 2025 fiscal year, the District had $153,951,795 invested in land, buildings, furniture and equipment, vehicles, and right-of-use assets (net of accumulated depreciation and amortization). Year Ended June 30,2025 2024 Land and capital assets not being depreciated $28,278,549 $12,130,564 Buildings and improvements 118,576,505 117,972,988 Furniture and equipment 4,307,780 3,363,832 Vehicles 1,600,963 1,954,553 Right of use assets - leases 764,062 972,872 Right of use assets - SBITAs 423,936 122,538 Total capital assets, net $153,951,795 $136,517,347 Overall capital assets increased $17,434,448 from fiscal year 2024 to fiscal year 2025. Total purchases and additions of $25,737,530 and dispositions of $520,478 (primarily land and vehicles) were offset by depreciation and amortization expense for the year of $8,303,082. 9 Bonneville Joint School District #93 Management's Discussion and Analysis Fiscal Year Ended June 30, 2025 At June 30, 2025, the District had four general obligation bond issues outstanding as follows: Total Due within one year 2016 A Series Bond $42,615,000 $2,720,000 2016 B Series Bond 9,435,000 2,195,000 2018 Series Bond 28,205,000 700,000 2021 Series Bond 3,805,000 1,815,000 2023 Series Bond 30,825,000 1,205,000 Total $114,885,000 $8,635,000 At June 30, 2025, the District’s overall legal debt margin was $386,069,895. Economic Factors District patrons approved the renewal of the Supplemental Levy in the November 2024 election, for $5,800,000 for Fiscal Years 2026 and 2027. Two years is the maximum term that voters can approve per Idaho Code. Enrollment for Fiscal Year 2025 held steady throughout the school year. As we have just begun the new school year, enrollment has declined, specifically in kindergarten and first grade. We will continue to monitor enrollment and its impact on funding this year as we prepare to make staff reductions to balance our budget in future years. Fund Balance was built up in prior years in anticipation of reduced state revenue. Additionally, the State Legislature approved changes to staff funding calculations that will allow us to reduce certificated staffing to lower levels without losing state funding. Component Unit These financial statements do not include the Bonneville Education Foundation, a component unit of the District. The financial information for the Foundation will be available at the District office. Requests for Information This financial report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the District’s finances and to show the District’s accountability for the money it receives. If you have questions about this report or need additional financial information contact Guy Wangsgard, Chief Financial & Operations Officer, at Bonneville Joint School District #93, 34197 North Ammon Road, Idaho Falls, ID 83401, GuyW@d93.k12.id.us. 10 Financial Statements Bonneville Joint School District #93 Statement of Net Position June 30, 2025 Governmental Activities Assets Current assets Cash and investments $122,057,140 Property taxes receivable, net 5,621,250 Other receivables 4,300,733 Supplies inventory 114,243 Medicaid match deposits 81,508 Total current assets 132,174,874 Capital assets Land and construction in progress 28,278,549 Depreciable buildings, equipment, and vehicles, net of depreciation 124,485,248 ROU assets - leases, net 764,062 ROU assets - SBITAs, net 423,936 Total capital assets 153,951,795 Other assets PERSI sick leave (PERSI SL)3,136,755 Total other assets 3,136,755 Total assets 289,263,424 Deferred outflow of resources Related to OPEB 280,652 Related to PERSI SL 895,527 Related to pensions 19,663,882 Total deferred outflow of resources 20,840,061 Liabilities Current liabilities Accounts payable 5,105,201 Accrued wages payable 10,962,452 Accrued benefits payable 4,223,865 Accrued interest 1,587,389 Long-term liabilities Portion due or payable within one year General obligation bonds/premium 9,791,441 Contracts payable (SBITAs)184,328 Lease liability 263,265 Other liabilities 440,767 Portion due or payable after one year General obligation bonds/premium 114,284,902 Contracts payable (SBITAs)226,015 Lease liability 510,352 Net pension liability 61,016,249 Other post employment benefits 2,425,803 Total liabilities 211,022,029 See accompanying notes to financial statements. 11 Bonneville Joint School District #93 Statement of Net Position (Continued) June 30, 2025 Governmental Activities Deferred inflow of resources Related to OPEB $2,725,774 Related to PERSI SL 1,112,944 Total deferred inflow of resources 3,838,718 Net position Net investment in capital assets 28,691,492 Restricted for Capital improvements 74,728,228 Debt service 11,430,687 Child nutrition 573,638 Other 11,855,964 Unrestricted (32,037,271) Total net position $95,242,738 See accompanying notes to financial statements. 12 Bonneville Joint School District #93 Statement of Activities Program Revenues Net (Expense) Revenue and Changes in Net Position Year Ended June 30, 2025 Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Total Governmental Activities Functions/Programs Governmental activities Instruction $95,197,282 $1,750,593 $12,490,135 $-$(80,956,554) Support services 25,544,879 2,924,012 3,703,906 -(18,916,961) Administrative 9,696,373 17,764 357,678 -(9,320,931) Business operations 2,857,600 -258 -(2,857,342) Operations 12,973,393 -469,580 -(12,503,813) Transportation 5,792,724 139,809 3,922,530 -(1,730,385) Community service 265,032 -5,902 -(259,130) Noninstructional 5,504,323 -3,130 -(5,501,193) Interest and fiscal charges 4,160,964 -6,777,187 -2,616,223 Capital improvements 753,735 --104,309 (649,426) Total governmental activities $162,746,305 $4,832,178 $27,730,306 $104,309 (130,079,512) General revenues Property taxes 14,702,825 Property tax replacement 310,755 Federal grants 3,057,466 State aid - formula grants 95,164,312 Other state revenue 52,709,376 Investment earnings 5,496,481 Other local revenue 2,561,420 Gain (loss) on sale of assets 25,537 Total general revenues 174,028,172 Change in net position 43,948,660 Net position, beginning of year 51,294,078 Net position, end of year $95,242,738 See accompanying notes to financial statements. 13 Bonneville Joint School District #93 Balance Sheet - Governmental Funds June 30, 2025 General Fund Debt Service Capital Projects Construction Child Nutrition All Nonmajor Funds Total Assets Cash and cash equivalents $19,521,641 $9,193,435 $55,113,028 $24,420,737 $1,109,852 12,698,447 $122,057,140 Receivables Taxes - current 2,057,932 2,093,591 1,006,693 ---5,158,216 Taxes - delinquent 189,217 182,471 91,346 ---463,034 State apportionment 1,402,227 -19,356 4,468 344,628 -1,770,679 Federal grants/contracts -----2,061,751 2,061,751 Other Receivables 12,241 940 -87,442 -367,680 468,303 Due from other funds 4,119,684 -----4,119,684 Inventories ----114,243 -114,243 Prepaid expenses 81,508 -----81,508 Total assets $27,384,450 $11,470,437 $56,230,423 $24,512,647 $1,568,723 $15,127,878 $136,294,558 Liabilities and fund balances Accounts payable $361,503 $-$2,328,932 $2,065,421 159,670 $189,675 $5,105,201 Accrued wages payable 9,954,544 ---247,782 760,126 10,962,452 Accrued benefits payable 3,773,564 ---116,153 334,148 4,223,865 Due to other funds -39,750 220,020 1,400,469 471,480 1,987,965 4,119,684 Total liabilities 14,089,611 39,750 2,548,952 3,465,890 995,085 3,271,914 24,411,202 Deferred inflow of resources Unavailable revenues 189,217 182,471 91,346 ---463,034 Total deferred inflow of resources 189,217 182,471 91,346 ---463,034 Fund balances Nonspendable Inventory ----114,243 -114,243 Prepaid 81,508 -----81,508 Restricted for Capital improvements --53,590,125 21,046,757 --74,636,882 Debt service -11,248,216 ----11,248,216 Child nutrition ----459,395 -459,395 Other fund activities -----11,855,964 11,855,964 Assigned 12,502,448 -----12,502,448 Unassigned 521,666 -----521,666 Total fund balances 13,105,622 11,248,216 53,590,125 21,046,757 573,638 11,855,964 111,420,322 Total liabilities, deferred inflows of resources, and fund balances $27,384,450 $11,470,437 $56,230,423 $24,512,647 $1,568,723 $15,127,878 $136,294,558 See accompanying notes to financial statements. 14 Bonneville Joint School District #93 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Total governmental fund balances at June 30, 2025 $111,420,322 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported as assets in governmental funds. With the implementation of GASB 87 and 96, these values also include the Right-of-use assets for the remaining value of those contracts net of accumulated amortization. The cost of the capital and right of use assets is $274,673,298 and the accumulated depreciation and amortization is $120,721,503.153,951,795 Governmental funds report the effect of premiums, discounts, and similar items when the bonds are first issued by the District whereas these amounts are deferred and amortized in the Statement of Activities.(9,191,343) The deferred outflows of resources and deferred inflow of resources related to pensions are only reported in the Statement of Net Position: deferred inflow of resources related to pensions is $0 and deferred outflows of resources related to pensions is $19,663,882.19,663,882 The net PERSI sick leave asset and the deferred outflows of resources and deferred inflows of resources related to PERSI sick leave are only reported in the Statement of Net Position: Net PERSI asset is $3,136,755, deferred inflow of resources related to PERSI sick leave is $1,112,944 and deferred outflow of resources related to PERSI sick leave is $895,527.2,919,338 Property taxes receivable will be collected this year but are not available soon enough to pay for the current period's expenditures, and therefore are unavailable in the funds.463,034 Deferred outflows and inflows of resources related to other post employment benefits (OPEB) are not current financial resources and therefore are not reported in the fund financial statements, but are reported on the Statement of Net Position. Deferred inflow of resources related to OPEB is $2,725,774 and deferred outflow of resources related to OPEB is $280,652.(2,445,122) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long term liabilities at year end consisted of: Bonds payable (114,885,000) Accrued interest on debt obligations (1,587,389) Compensated absences (440,767) Lease liability (773,617) Contract payable - SBITAs (410,343) Net pension liability (61,016,249) Other post employment benefits (2,425,803)(181,539,168) Total net position - governmental activities $95,242,738 See accompanying notes to financial statements. 15 Bonneville Joint School District #93 Statements of Revenues, Expenditures and Changes In Fund Balances - Governmental Funds Year Ended June 30, 2025 General Fund Debt Service Capital Projects Construction Child Nutrition All Nonmajor Funds Total Revenues Property Taxes $5,904,905 $6,039,768 $2,846,585 $-$-$-$14,791,258 Investment Earnings -441,667 -1,480,971 51,275 3,522,568 5,496,481 Food Service ----1,266,508 -1,266,508 Rental ----7,653 -7,653 Other Local 696,059 ----5,764,077 6,460,136 State apportionment Base 83,518,881 -----83,518,881 Transportation 3,922,530 -----3,922,530 State Paid Benefits 11,645,431 -----11,645,431 Property tax replacement 310,755 -----310,755 Other state revenue 5,089,971 6,777,187 52,508,446 --2,258,142 66,633,746 Federal grants and assistance ----3,057,466 9,647,016 12,704,482 Total revenues 111,088,532 13,258,622 55,355,031 1,480,971 4,382,902 21,191,803 206,757,861 Expenditures Current: Instruction 70,333,294 -150,321 --10,421,770 80,905,385 Support services 16,582,334 -575,898 --6,537,262 23,695,494 Administration 8,407,333 -28,333 --371,610 8,807,276 Business operations 2,693,898 -163,444 --258 2,857,600 Operations 11,033,704 -1,653,285 --513,202 13,200,191 Transportation 5,183,280 -229,695 ---5,412,975 Community services 259,130 ----5,902 265,032 Non - Instructional ----5,242,305 3,130 5,245,435 Debt service: Principal 178,318 7,855,000 243,259 --17,509 8,294,086 Interest 26,999 5,621,500 44,865 --721 5,694,085 Fees -1,650 ----1,650 Facility acquisition --8,999,314 15,000,318 -137,087 24,136,719 Total expenditures 114,698,290 13,478,150 12,088,414 15,000,318 5,242,305 18,008,451 178,515,928 Revenues over (under) expenditures (3,609,758)(219,528)43,266,617 (13,519,347)(859,403)3,183,352 28,241,933 Other financing sources and (uses) Operating transfers in 60,000 -450,700 -141,429 1,691,337 2,343,466 Operating transfers out (592,129)---(60,000)(1,691,337)(2,343,466) Proceeds from obligations --51,126 --554,243 605,369 Proceeds from sale of assets --25,537 ---25,537 Total other financing sources and (uses)(532,129)-527,363 -81,429 554,243 630,906 Net change in fund balances (4,141,887)(219,528)43,793,980 (13,519,347)(777,974)3,737,595 28,872,839 Fund balances, beginning of year 17,247,509 11,467,744 9,796,145 34,566,104 1,351,612 8,118,369 82,547,483 Fund balances, end of year $13,105,622 $11,248,216 $53,590,125 $21,046,757 $573,638 $11,855,964 $111,420,322 See accompanying notes to financial statements. 16 Bonneville Joint School District #93 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Net change in fund balances - governmental funds for the year ended June 30, 2025 $28,872,839 Amounts reported for governmental activities in the statement of net position are different because: 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. 7,688,717 Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation and amortization expense. This is the amount by which capital outlays and new lease/SBITA agreements exceeded depreciation and amortization and asset dispositions.17,457,016 Because some property taxes will not be collected for several months after the District's fiscal year ends, they are not considered 'available' revenues in the governmental funds. Unearned tax revenues decreased by $88,433 this year.(88,433) Vested employee benefits are reported in the governmental funds when amounts are paid. The Statement of Activities reports the value of benefits earned during the year. The changes in the OPEB obligations, PERSI SL asset, net pension liability, and the related deferred outflows and inflows in addition to the change in compensated absences are all differences.(11,516,250) Interest on long-term debt is recognized as an expenditure in governmental funds report when it is due. The effect of premiums, discounts, and similar items are recognized in the governmental funds when debt is first issued, whereas all of these amounts are accrued, or deferred and amortized in the Statement of Activities. This is the net effect of these differences in the treatment of long-term debt and related items.1,534,771 Change in net position per statement of activities $43,948,660 See accompanying notes to financial statements. 17 Notes to Financial Statements Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 1:Summary of Significant Accounting Policies General The basic financial statements listed in the table of contents have been prepared in accordance with the American Institute of Certified Public Accountants’ Industry Audit Guide for Audits of State and Local Government Units. Reporting Entity The Bonneville Joint School District #93 (the District) is the basic level of government, which has financial accountability and control over all activities related to the public-school education in the area served. The District receives funding from local, state, and federal government sources and must comply with the requirements of these funding source entities. The District is not included in any other governmental “reporting entity” as defined by GASB pronouncement, since Board members are elected by the public and have decision making authority, the authority to levy taxes, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. Discretely Presented Component Unit The Bonneville Joint School District #93 Education Foundation (the Foundation) is responsible for fund raising to support the District. The Board of the Foundation is appointed by the District and is accountable to the District. The Foundation is a non-profit organization and is presented on the accrual basis of accounting. The District has elected not to include the Foundation at June 30, 2025, as it is immaterial to the District. Related activities passed through the District are recorded in a special revenue fund of the same name. Complete financial information for the component unit may be obtained at the District’s administrative office. Basis of Presentation Government-Wide and Fund Financial Statements The Government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the District. For the most part, the effect of interfund activity has been removed from these statements. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not included among program revenues are reported as general revenues. Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. 18 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 1:Summary of Significant Accounting Policies (Continued) Basis of Presentation (Continued) Fund Accounting The District uses funds to report on its financial position and results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. Funds are classified into three categories: governmental, proprietary, and fiduciary. The emphasis of fund financial statements is on major governmental funds, each reported in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Major individual governmental funds are reported as separate columns in the fund financial statements. Governmental Fund Types: General Fund - The general fund is the District's general operating fund. It is used to account for all financial resources except those required to be accounted for in another fund. Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources and for the repayment of general longterm debt principal, interest, and related costs. The primary revenue source is local property taxes levied specifically for debt service. Capital Projects Fund - The Capital Projects Fund is used to account for the financial resources used to acquire school facilities, renovate existing facilities, or as otherwise provided in the Idaho Code. Construction Fund - This fund is used to account for the financial resources to be used to acquire or construct major capital facilities. Child Nutrition Fund - This fund accounts for all financial transactions of the school food service program in compliance with local, state, and federal laws or regulations. Special Revenue Funds - The purpose of the Special Revenue Funds is to account for federal, state, and locally funded grants and activities. These grants are awarded to the District with the purpose of accomplishing specific educational tasks as defined in the Grant Awards. Special Revenue Fund types include the Child Nutrition Fund and School Activity Funds. The purpose of the Child Nutrition Fund is to account for all federal support and student charges, which are received by the District for the purpose of providing students with a nutritional, inexpensive meal. The School Activity Funds are monies collected primarily through fund raising efforts of the individual schools or school sponsored groups. The school principal is responsible, under the authority of the Board of Trustees, for collecting, controlling, disbursing, and accounting for all School Activity Funds. 19 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 1:Summary of Significant Accounting Policies (Continued) Basis of Accounting The District applies the provisions of GASB Statement No. 34, Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments. This Statement is meant to present the information in a format more closely resembling that of the private sector and to provide the user with more managerial analysis regarding the financial results and the District’s financial outlook. Government-wide Financial Statements The government-wide financial statements (Statement of Net Position and Statement of Activities) display information about the reporting government as a whole. These statements include all the financial activities of the District, except for its fiduciary funds. Generally, the effect of material interfund activity has been removed from the government-wide financial statements. The Statement of Activities demonstrates the degree to which the direct expenses of given functions are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other internally directed revenues are reported instead as general revenues. The government-wide 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 when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as eligibility requirements imposed by the provider have been met. The District applies restricted resources first when an expense is incurred for which both restricted and unrestricted resources are available. Depreciation has been allocated specifically to functional areas with the majority of it being allocated to instructional. Interest on long-term debt is considered an indirect expense and is reported separately on the Statement of Activities. 20 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 1:Summary of Significant Accounting Policies (Continued) Basis of Accounting (Continued) Governmental Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in the governmental funds. Issuance of long- term debt and acquisitions under financed purchases, leases, and SBITA agreements are reported as other financing sources. Property taxes and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). All other revenue items are considered to be measurable and available only when cash is received by the government. Budgets Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the General, Special Revenue, Debt Service, and Capital Projects Funds. All annual appropriations lapse at fiscal year-end. The District did not amend their General Fund and Child Nutrition Fund budgets in 2025. Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting (under which purchase orders, contracts, and other commitments for the expenditures of resources are recorded to reserve that portion of the applicable appropriation) is utilized in the governmental funds. Encumbrances outstanding at year-end are reported as assigned fund balance to indicate an obligation to the District. The District budgets transfers from the General Fund to other funds to cover the costs incurred by these funds in excess of the revenues generated. Certain indirect costs are charged to several Special Revenue Funds through budgeted transfers from the Special Revenue Funds to the General Fund. 21 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 1:Summary of Significant Accounting Policies (Continued) Cash and Investments Cash includes amounts in demand as well as short-term investments with a maturity date within three months of the date acquired by the District. The District pools cash of all funds into common bank accounts. The accounting records of each fund reflect its interest in the pooled cash. Any deficiencies in cash of individual funds represent liabilities to other funds for cash borrowed. Under state law, the District may deposit funds in demand deposits, interest-bearing demand deposits, or time deposits with state banks or credit unions organized under Idaho Law, and national banks or credit unions located in Idaho. State statutes authorize the District to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, and repurchase agreements. The District has elected to deposit cash in excess of immediate needs into the Local Government Investment Pool (LGIP). The LGIP is managed by the State of Idaho Treasurer’s office. The funds of the pool are invested in certificates of deposit, repurchase agreements, commercial paper, corporate debt instruments, and U.S. government securities. The certificates of deposit are federally insured. The LGIP is recorded at amortized costs due to the LGIP’s tight restrictions on the types of investments that can be held in the fund to limit the District’s exposure to losses from credit risk, market, and liquidity risk. An annual audit of LGIP is conducted by the State Legislative Auditors Office. The Legislative Auditor of the State of Idaho has full access to the records of the Pool. All other cash is deposited with local banks in checking or savings accounts. For deposits and investments, custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its deposits, investments, or collateral securities that are in the possession of an outside party. The District does not have a policy for custodial credit risk outside of the deposit and investment agreements. The District is authorized to invest in the State of Idaho Local Government Investment Pool. This pooling is intended to improve administrative efficiency and increase investment yield. Credit risk is the risk that an issuer of debt securities or another counterparty to an investment will not fulfill its obligation and is commonly expressed in terms of the credit quality rating issued by nationally recognized statistical rating organization such as Moody’s, Standard & Poor’s, and Fitch’s. The investments of the District through the State of Idaho Local Government Investment Pool are not rated and the District’s policy does not restrict them to rated investments. Other investments held by the District are fixed income and rated AA1 under Moody's. Short-term Interfund Receivables/Payables During the course of operations, numerous transactions occur between individual funds and the General Fund for goods provided or services rendered. These receivables and payables are classified as ‘due from other funds’ or ‘due to other funds’ on the balance sheet. Inventories Inventories consist of paper, food, and other supplies and equipment received at the end of the fiscal year, which had not yet been consumed. The cost is recorded as an expenditure at the time the item is consumed. Inventories are stated at cost on a first-in, first-out basis, which approximates market. Other supplies inventory on hand at year-end has not been recorded as inventory and was treated as expended when purchased. 22 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 1:Summary of Significant Accounting Policies (Continued) Capital Assets Capital assets, including land, buildings, improvements, and equipment assets are reported in the applicable governmental columns in the government-wide financial statements. Right of use assets from leases and SBITA contracts are also included in capital assets. See Notes 10 and 11 for information on these items. Capital assets are defined by the District as assets with an initial, individual cost of more than $10,000 and an initial useful life of one year or greater. Such assets are recorded at historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. Buildings, improvements, and equipment assets are depreciated using the straight-line depreciation method over the following estimated useful lives: Assets Years Buildings 30 Equipment 3-15 Vehicles 3-8 Compensated Absences Employees are entitled to certain compensated absences based on their length of employment. The entire compensated absences owed are reported in the government-wide financial statement. Other Post-Employment Benefits PERSI employees who retire and have not yet become eligible for Federal Medicare coverage are eligible to purchase insurance through the District’s healthcare plan. Although retirees pay their own premium, there is an implicit cost due to increased group premiums when retirees are included in District insurance plans. For the purpose of measuring the net other post-employment benefit liability, deferred outflows of resources and deferred inflows of resources related to other post-employment benefits, and other post-employment benefit expenses, information about fiduciary net position of the implicit medical benefit Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. Benefit payments are recognized when due and payable in accordance with the benefit terms. For purposes of measuring the net OPEB asset, deferred outflows of resources, and deferred inflows of resources related to OPEB, and OPEB expense; (expense offset), information about the fiduciary net position of the Pubic Employee Retirement System of Idaho (PERSI or System) Sick Leave Insurance Reserve fund and additions to/deductions from Sick Leave Insurance Reserve Fund’s fiduciary net position have been determined on the basis as they are reported by the Sick Leave Plan. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 23 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 1:Summary of Significant Accounting Policies (Continued) Pensions For purposes of measuring the net pension liability and pension expense, information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (Base Plan) and additions to/deductions from Base Plan’s fiduciary net position have been determined on the same basis as they are reported by the Base Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Deferred Outflows/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(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District has several items that qualify for reporting in this category and they occur on the government-wide Statement of Net Position. The District reports deferred outflows of resources related to pensions for its proportionate shares of collective deferred outflows of resources related to pensions and District contributions to pension plans subsequent to the measurement date of the collective net pension liability. The last two deferred outflows result from changes of assumptions or other inputs on the OPEB obligations and PERSI SL asset. In addition to liabilities, the Statement of Net Position and Governmental Funds Balance Sheet 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 several types of items, one of which arises under a modified accrual basis of accounting, and others that arise in the government wide financial statements, that qualify for reporting in this category. Accordingly, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The District also reports deferred inflows of resources for its proportionate share of the collective deferred inflows of resources related to pensions and difference between expected and actual experience – OPEB and PERSI SL on the government wide financial statements. 24 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 1:Summary of Significant Accounting Policies (Continued) Long-term Obligations Long-term debt is recognized as a liability of a governmental fund when due. For other long-term obligations, only that portion expected to be financed from expendable, available, financial resources is reported as a fund liability of a governmental fund. Lease Accounting The District is a lessee in multiple noncancelable leases. If the contract provides the District the right to substantially all the economic benefits and the right to direct the use of the identified asset, it is considered to be or contain a lease. Right-of-use (ROU) assets and lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the expected lease term. The ROU asset is also adjusted for any lease prepayments made, lease incentives received, and initial direct costs incurred. The lease liability is initially and subsequently recognized based on the present value of its future lease payments. Variable payments are included in the future lease payments when those variable payments depend on an index or a rate. Increases (decreases) to variable lease payments due to subsequent changes in an index or rate are recorded as variable lease expense (income) in the future period in which they are incurred. The discount rate used is the implicit rate in the lease contract, if it is readily determinable, or the District’s incremental borrowing rate (IBR).This rate is used to calculate the present value of future lease payments. The District has elected to use the State's Diversified Bond Fund (DBF) portfolio rate for it's IBR.This rate is an alternative investment rate for other than short-term investments and is materially the same as the rate the District might incur from an external lender. For all underlying classes of assets, the District does not recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement and do not include an option to purchase the underlying asset that the District is reasonably certain to exercise. Leases containing termination clauses in which either party may terminate the lease without cause and the notice period is less than 12 months are deemed short-term leases with lease costs included in short-term lease expense. The District recognizes short-term leases with lease costs included in short-term lease expense. The District recognizes short-term lease cost on a straightline basis over the lease term. In addition, under the new standard, the District has adopted a policy which evaluates the material nature of long- term leases as a group. For group calculations which fall below the policy threshold for recording, the District will not recognize the lease liability and ROU, and will instead expense these costs as incurred. Copier leases is one such group. For leases or groups of leases whose net present value is less than $50,000, the District has elected to recognize the payments as an expense in the period incurred. 25 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 1:Summary of Significant Accounting Policies (Continued) Subscription Based Information Technology Arrangements The District is a party to multiple noncancelable subscription based information technology arrangements (SBITAs). If the contract provides the District the right to use the present service capacity and the right to direct the use of the identified asset, it is considered to be or contain a SBITA. Subscription-based assets and liabilities are recognized at the agreement commencement date based on the present value of the future payments over the expected contract term. The SBITA asset is also adjusted for any prepayments made and capitalizable initial implementation costs as incurred. The SBITA liability is initially and subsequently recognized based on the present value of its future payments. Variable payments are included in the present value when the underlying rate or index is fixed and predictable for the life of the lease. Variable costs that depend on an unpredictable index are accounted for as expenses as they are incurred. Increases (decreases) to variable payments due to subsequent changes in an index or rate are recorded as an adjustment to expense in the period in which they are incurred. The discount rate used is the implicit rate in the SBITA contract, if it is readily determinable, or the District’s incremental borrowing rate, which is the same IBR methodology as the District uses for leases. For all underlying classes of assets, the District does not recognize SBITA assets and liabilities for short-term agreements that have a contract term of 12 months or less at contract commencement. Contracts containing termination clauses in which either party may terminate without cause and the notice period is less than 12 months are deemed short-term agreements with costs included in expense. Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires the District to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Risks Management The District is exposed to a considerable number of risks of loss, including: (a) damage to and loss of property and contents; (b) employee torts; (c) professional liability, i.e. errors and omissions; (d) environmental damage; (e) workers’ compensation, i.e. employee injuries; and (f) medical insurance costs of employees. Commercial policies, transferring the risks of loss, except for relatively small deductible amounts, are purchased for property and content damage, employee torts, and professional liabilities. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. 26 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 1:Summary of Significant Accounting Policies (Continued) Net Position Flow Assumption Sometimes the District will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. Fund Balance Flow Assumption Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balances). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Fund Balance In the fund financial statements, governmental funds report aggregate amounts for five classifications of fund balances based on the constraints imposed on the use of these resources. The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form – prepaid items or inventories or (b) legally or contractually required to be maintained intact. The spendable portion of the fund balance comprises the remaining four classifications: restricted, committed, assigned, and unassigned. Restricted fund balance: This classification reflects the constraints imposed on resources either (a) externally by creditors, grantors, contributions, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. Committed fund balance: These amounts can only be used for the specific purposes determined by a formal action of the District’s highest level of decision-making authority. The School Board is the highest level of decision- making authority for the District that can, by board action prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the board resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. This classification also includes contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. 27 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 1:Summary of Significant Accounting Policies (Continued) Assigned fund balance: This classification reflects the amounts constrained by the District’s “intent” to be used for specific purposes but do not meet the criteria to be classified as restricted or committed. The School Board has by resolution authorized management to assign fund balance. The board may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriation in the subsequent year’s appropriated budget. Assigned fund balances include all remaining amounts (except negative balances) that are reported in governmental funds, other than the General Fund, that are not classified as nonspendable and are neither restricted nor committed. Unassigned fund balance: This fund balance is the residual classification for the General Fund. It is also used to report negative fund balances in other governmental funds. Recently Adopted Accounting Pronouncements GASB Statement No. 101 – Compensated Absences: As of July 1, 2024, the District implemented GASB Statement No. 101 . The statement better meets the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. There was no impact on the District. Note 2:Cash and Investments At June 30, 2025, the carrying amount of the District's cash was $24,510,965 and the bank balance of the District's deposits was as follows: Insured by Federal Depository Insurance $500,000 Insured by National Credit Union Share Insurance 250,000 Uninsured and uncollateralized 23,760,965 Totals $24,510,965 28 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 2:Cash and Investments (Continued) The following table presents the District's cost and approximate fair value hierarchy for the assets measured at a fair value on a recurring basis as of June 30, 2025: Fair Value Measurements at Reporting Date Using Deposit and investment type Cost Level 1 Level 2 Level 3 Average Maturity in Days Local Government Investment Pool - NAV $80,934,057 $-$81,113,183 $-101 Fixed Income - Government and Agency Bonds $16,413,663 $-16,432,992 -- Total investments $97,347,720 $-$97,546,175 $- Interest rate risk - The District manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio. Credit risk - The District’s deposits and investments at year end include the Local Government Investment Pool, bank deposits, and certificates of deposits with various banks located in Idaho. The District has reduced its concentration of credit risk by using several financial institutions. Additionally, the District holds Fixed Income Government and Agency Bonds valued at $16,432,992 rated at AA1 under Moody's. Custodial credit risk - In the case of deposits, this is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. The District does not have a deposit policy for custodial credit risk. As of June 30, 2025, $23,760,965 of the District’s deposits and certificates of deposit were exposed to custodial credit risk because it was uninsured and uncollateralized. Of the investments, $- was held in the Local Government Investment Pool which is not insured or guaranteed by the FDIC. The District has elected to invest in the LGIP through the Idaho State Treasurer. The Idaho State Treasurer provides oversight for investments by or through any department or institute of the State of Idaho. Amounts held by the LGIP were held in the following investments: government agency notes, commercial paper, corporate bonds, money markets, U.S. treasury notes, Idaho repurchase agreements, and purchased accrued interest. All investments for the LGIP are collateralized with securities held by the LGIP’s safekeeping agent in the LGIP’s name. The investments held by the LGIP are carried at cost, which is not materially different than fair value (determined by the Idaho State Treasurer’s office). These investments are subject to risk from market and interest rate fluctuations. Information necessary to determine the level of collateralization for the Local Government Investment Pool was unavailable. The Local Government Investment Pool is audited annually and the related financial statements and note disclosures are included in the State of Idaho’s Annual Comprehensive Financial Report, a copy of which can be downloaded from www.sco.idaho.gov. 29 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 3:Interfund Receivables and Payables During the course of its operations, the District had numerous transactions between funds to finance operations, provide services, construct assets, and service debt. To the extent that certain transactions between funds had not been paid or received as of June 30, 2025, balances of interfund amounts receivable or payable have been recorded. The interfund balances at June 30, 2025, were as follows: Receivable Payable General fund $4,119,684 $- Construction Fund -1,400,469 Debt Service Fund -39,750 Capital projects Fund -220,020 Child Nutrition Fund -471,480 Nonmajor funds -1,987,965 Total all funds $4,119,684 $4,119,684 The General Fund transferred $141,429 to the Child Nutrition Fund and $450,700 to the Capital Projects Fund, The Title IV transferred $191,337 to the Improving basic programs fund and special projects fund transferred $1,500,000 to the Hillcrest stadium construction as required by State law. The Child Nutrition Fund transferred $60,000 to the General Fund as budgeted for payment of indirect costs. Note 4:Property Taxes In accordance with Idaho State Law, ad valorem property tax is levied in dollars in September for each calendar year. Taxes are recorded by the District using the modified accrual basis of accounting. Levies are made on the second Monday of September. All of the personal property tax and one-half of the real property tax are due on or before the 20th of December. The remaining one-half of the real property tax is due on or before June 20 the following year. Property taxes attach as an enforceable lien on property as of January 1 the following year. Notice of foreclosure is filed with the County Clerk on property three years from the date of delinquency. The property tax revenue is budgeted for the ensuing fiscal year. Bonneville and Bingham Counties act as agents for the District in both the assessment and collection areas. The County remits tax revenues to the District periodically, with the majority of the collections being remitted in January and July. 30 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 5:Construction Commitments During the fiscal year ending June 30, 2025, House Bill 521 established the School Modernization Facilities Fund, redirecting millions of dollars in annual sales tax revenue to support local school facility improvements. This resulted in a significant increase in the number of projects underway across the district. Some key projects included a much-needed major renovation at Bonneville High School and the reconfiguration of Falls Valley Elementary’s office to better serve students, patrons, and staff. Many additional projects are in the early stages and awaiting bid submissions. The following construction contracts were in progress at June 30, 2025: Project Original bid plus changes Average % complete Expenditures Recorded Currently Remaining Construction Obligation Ammon HVAC Upgrade $4,000 90.00%$3,600 $400 Ammon Parking Lot 23,000 45.65%10,500 12,500 BHS Gymnasium Sound System 37,246 9.46%3,523 33,723 BHS P1 Fluid Cooler 528,081 99.03%522,981 5,100 Board Room Sound System 33,945 41.53%14,099 19,846 Bus Parking Lot 14,000 76.79%10,750 3,250 Fairview Bathroom Upgrade 88,023 60.22%53,011 35,012 Fairview Bhall & Class Lighting Upgrade 30,015 96.30%28,904 1,111 Falls Valley Office Remodel 653,417 24.52%160,204 493,213 HHS Security Vestibule 143,272 4.52%6,480 136,792 HHS/SMS Sprinkler System 520,000 15.36%79,862 440,138 Maintenance Sand & Salt Shed 65,842 89.80%59,127 6,715 RMMS HVAC Upgrade 75,000 65.43%49,073 25,927 RMMS ADA Lift 142,000 55.00%78,100 63,900 Thunder Stadium Visitor Parking 29,850 15.41%4,600 25,250 Transportation Bus Barn 3,740,190 98.02%3,666,208 73,981 Willow Creek Elementary 25,906,277 45.90%11,891,461 14,014,816 Total $32,034,158 $16,642,483 $15,391,674 *All amounts correspond to the main vendor associated with each project. 31 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 6:Capital Assets The governmental activities capital asset activity for the year ended June 30, 2025, is as follows: Balance 7/1/2024 Increases Deletions Transfers Balance 06/30/25 Capital assets, not being depreciated: Land: Elementary $2,502,627 $-$-$-$2,502,627 Secondary 3,877,812 ---3,877,812 Construction in progress 5,750,125 23,273,378 -(7,125,393)21,898,110 Total capital assets, not being depreciated 12,130,564 23,273,378 -(7,125,393)28,278,549 Capital assets, being depreciated: Buildings Elementary 72,397,889 18,151 -3,422,438 75,838,478 Secondary 139,958,886 57,025 -3,702,955 143,718,866 Administration 4,850,484 81,978 --4,932,462 Total buildings 217,207,259 157,154 -7,125,393 224,489,806 Equipment Elementary 1,893,796 438,313 --2,332,109 Secondary 3,056,259 540,867 --3,597,126 Administration 3,497,239 562,843 (77,909)-3,982,173 Total equipment 8,447,294 1,542,023 (77,909)-9,911,408 Vehicles 10,291,860 157,752 (442,569)-10,007,043 Total capital assets, being depreciated 235,946,413 1,856,929 (520,478)7,125,393 244,408,257 Accumulated depreciation: Buildings (99,234,271)(6,679,030)--(105,913,301) Equipment (5,083,462)(598,075)77,909 -(5,603,628) Vehicles (8,337,307)(511,342)442,569 -(8,406,080) Total accumulated depreciation (112,655,040)(7,788,447)520,478 -(119,923,009) Total capital assets, being depreciated, net 123,291,373 (5,931,518)-7,125,393 124,485,248 32 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 6:Capital Assets (Continued) Balance 7/1/2024 Increases Deletions Transfers Balance 06/30/25 Right of use assets - leases: Vehicles $1,272,047 $52,979 $-$-$1,325,026 Accumulated amortization (299,175)(261,789)--(560,964) Total ROU assets - leases, net 972,872 (208,810)--764,062 Right of use assets - Subscription- Based Information Technology Arrangement Assets: Software 678,190 554,244 (570,968)-661,466 Accumulated amortization (555,652)(252,846)570,968 -(237,530) Total ROU asset - SBITAs, net 122,538 301,398 --423,936 Governmental activities capital assets, net $136,517,347 $17,434,448 $-$-$153,951,795 Depreciation and amortization expense was charged to the functions of the primary government as follows: Governmental activities Instruction $6,879,843 Support services 252,847 Operations 394,115 Transportation 776,277 Total depreciation expense - governmental activities $8,303,082 Note 7:Legal Debt Margin The District is subject to a statutory limitation by the Idaho Code for bonded indebtedness payable principally from property taxes. The limit of bonded indebtedness is 5% of property market value for assessment purposes less the aggregate outstanding debt. At June 30, 2025, the limit for the District was 5% of $9,793,357,370 or $489,667,869. The Debt Service Fund had $11,287,026 available and the general obligation debt was $114,885,000 leaving a legal debt margin of $386,069,895. 33 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 8:Long-Term Debt Changes in long-term liabilities for the year ended June 30, 2025, were as follows: Governmental activities Balance 7/1/2024 Additions Reductions Balance 06/30/25 Amounts due Within One Year Bonds payable: Bonds payable*$122,740,000 $-$(7,855,000)$114,885,000 $8,635,000 Premium on bonds 10,620,256 -(1,428,913)9,191,343 1,156,441 Total bonds payable 133,360,256 -(9,283,913)124,076,343 9,791,441 PERSI 61,730,026 -(713,777)61,016,249 - OPEB 2,348,672 77,131 -2,425,803 - Compensated absences 422,358 18,409 -440,767 440,767 Financed purchase agreements 22,569 -(22,569)-- Lease liability**967,176 51,126 (244,685)773,617 263,265 SBITAs liability***51,927 554,243 (195,828)410,343 184,328 Total $198,902,984 $700,909 $(10,460,772)$189,143,122 $10,679,801 *See Note 9 for additional information on bond obligations ** See Note 10 for additional information on lease agreements and liabilities *** See Note 11 for additional information on SBITA agreements and liabilities Payments on the general obligation bonds are made by the Debt Service Fund from property taxes and state bond levy equalization funds. Employee benefits will be paid by the fund in which the employee is paid from. 34 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 9:General Obligation Bond Issues The District had four general obligation bond issues (2016A, 2016B, 2018 and 2021 Series) outstanding at the end of the year with interest rates ranging from 2.0 to 5.0 percent. The 2016A and 2016B bonds are scheduled to mature September 2033 and September 2028, respectively. The 2018 bond is scheduled to mature September 2035. The 2021 bond is scheduled to mature September 2028. The 2012C bond finalized in March 2023. Future debt service requirements are as follows: Fiscal year ended June 30:Principal Interest Total 2026 $8,635,000 $5,240,925 $13,875,925 2027 8,545,000 4,840,387 13,385,387 2028 8,945,000 4,452,300 13,397,300 2029 9,320,000 4,063,400 13,383,400 2030 - 2035 59,950,000 14,907,550 74,857,550 2036 - 2040 19,490,000 1,585,000 21,075,000 Total $114,885,000 $35,089,562 $149,974,562 Changes to bond principal payable and future interest payable are summarized as follows: Principal 2016A Series 2016B Series 2018 2021 2023 Total Balance at July 1, 2024 $44,520,000 $11,520,000 $28,905,000 $6,225,000 $31,570,000 $122,740,000 Reductions/Pmts (1,905,000)(2,085,000)(700,000)(2,420,000)(745,000)(7,855,000) Total $42,615,000 $9,435,000 $28,205,000 $3,805,000 $30,825,000 $114,885,000 Interest 2016A Series 2016B Series 2018 2021 2023 Total Balance at July 1, 2024 $12,202,475 $1,296,375 $11,187,562 $380,900 $15,643,750 $40,711,062 Reductions/Pmts (1,990,025)(474,525)(1,396,476)(200,600)(1,559,875)(5,621,501) Total $10,212,450 $821,850 $9,791,086 $180,300 $14,083,875 $35,089,561 35 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 10:Leases Enterprise: The District entered into several Lease Agreements with Enterprise during 2024. Each lease included initiation fees between $1,100 and $1,654 for various Ford trucks. These agreements include monthly payments for 5 Years with imputed interest rates between 2.89% and 5.26% with the option to continue month to month in perpetuity after expiration. Agreements include maintenance services up to 42,500 miles, after which a fee of $0.0035 will be charged per mile. These additional variable maintenance costs have not been incurred as of 6/30/2025, and are not included in the calculations for the lease liability. Balance 7/1/2024 Additions Reductions Balance 06/30/25 Amounts due Within One Year Leases payable $967,176 $51,126 $(244,685)$773,617 $263,265 Future minimum lease payments as of June 30, 2025, are: Principal Interest Total 2026 $263,265 $35,370 $298,635 2027 261,028 23,480 284,508 2028 203,663 11,699 215,362 2029 37,356 2,133 39,489 2030 8,305 345 8,650 Total $773,617 $73,027 $846,644 36 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 11:SBITAs The District entered into several subscription based information technology agreements (SBITA). Below is a description of their current agreements making up the SBITA liability: Swift K12: The District entered into an agreement with SwiftReach on August 2022 which includes annual payments for 3 Years with an imputed interest rate of 3.80%. Renaissance: The District entered into an agreement with Renaissance Learning on August 2021 which includes annual payments for 3 Years with an imputed interest rate of .64%. Gabbart Communications: The District entered into an agreement with Gabbart Communications on January 2021 which includes annual payments for 3 Years with an imputed interest rate of .43%. The following represents the subscription-based liabilities for the District and liability outstanding at June 30: Balance 7/1/2024 Additions Reductions Balance 06/30/25 Amounts due Within One Year Swift K12 $18,973 $-$(17,509)$1,464 $1,464 Renaissance 32,954 554,243 (178,318)408,879 182,864 SBITAs payable $51,927 $554,243 $(195,827)$410,343 $184,328 Future minimum SBITA payments as of June 30, 2025, are: Principal Interest Total 2026 $184,328 $23,772 $208,100 2027 193,472 13,109 206,581 2028 32,543 1,887 34,430 Total $410,343 $38,768 $449,111 37 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 12:Non-Monetary Transactions The District received $401,297 in USDA Commodities during the 2024-2025 fiscal year. The commodities received are valued at the average wholesale price as determined by the distributing agency. All commodities received by the District were treated as revenue and expense of the fund receiving the commodities. Note 13:Payroll Expenditures and Related Liabilities Teacher contracts were signed for the period September 2024 through June 2025, to be paid over the twelve months of September 2024 through August 2025. The financial statements reflect the salary expense for this period. The accrued payroll reflects the final two months of these contracts. Note 14:Other Postemployment Benefits Plan Description Bonneville Joint School District #93's Employee Group Benefits Plan is a single-employer defined benefit healthcare plan administered by Blue Cross of Idaho. Blue Cross provides medical and prescription drug insurance benefits to eligible retirees and their eligible dependents. Blue Cross Dental and Willamette Dental provide dental insurance benefits to eligible retirees and their eligible dependents. As of June 30, 2024, the measurement date, there were 989 active participants and 25 inactive participants. A retiree who retires with the Public Employee Retirement System of Idaho (PERSI) is eligible to keep the District’s health insurance as a retiree until age 65, or until the retiree is eligible for coverage under Medicare. Retirement eligibility is determined based on a minimum of reaching age 55 with at least 5 years of membership with a PERSI employer. The retiree is on the same medical plan as the District’s active employees. Funding Policy The contribution requirement of plan members is established by the District’s insurance committee in conjunction with our insurance provider. The required contribution is based on projected pay-as-you-go financing requirements. For fiscal year 2023, the District contributed approximately $189,553 for insurance premiums. Retirees are required to pay 100% of the premiums for both the retiree and the dependent coverage. Net Other Post-employment Benefit Liability The Net other post-employment benefit liability (NOL) was measured as of June 30, 2025, and the total other post-employment benefit liability was determined by an actuarial valuation as of June 30, 2025. 38 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 14:Other Postemployment Benefits (Continued) Actuarial Methods and Assumptions The District does not pre-fund benefits. The current funding policy is to pay benefits directly from general assets on a pay-as-you-basis and there is not a trust for accumulating plan assets. The following actuarial methods and assumptions were used in the June 30, 2025, accounting valuation: Valuation Timing Actuarial valuations are performed biennially as of July 1 for accounting purposes only. The most recent valuation was performed as of June 30, 2024. Inflation 2.50% Discount rate 4.81% Healthcare cost trend rates 7.00% decreasing to 6.5%, then decreasing by 0.10% per year down to 4.50%,and level thereafter. Actuarial Cost Method Entry Age Normal (level percent of salary) Mortality General and Teacher Pub-2010 Mortality Tables adjusted for future mortality improvements using the fully generational MP-2021 projection scale from a base year of 2010. Total OPEB Liability June 30, 2025 Total OBEB liability $2,425,803 Covered employee payroll 58,198,980 Total OPEB liability as a % of covered employee payroll %4.17 The total OPEB liability was determined by an actuarial valuation as of the valuation date, calculated based on the discount rate and actuarial assumptions below, and was then projected forward to the measurement date. There have been no significant changes between the valuation date and the fiscal year end. Any significant changes during this period must be reflected as prescribed by GASB 75. Discount Rate Discount Rate*%4.81 *The discount rate was based on all years of projected payments discounted at a municipal bond rate of 4.81%. 39 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 14:Other Postemployment Benefits (Continued) Changes Since Prior Valuation None Changes in Total OPEB Liability Changes in total OPEB liability Increase (Decrease) Total OPEB Liability Balance as of June 30,2024 $2,348,672 Changes for the year: Service cost 192,100 Interest on total OPEB liability 100,769 Differences in experience (3,676) Changes of assumptions or other inputs (109,753) Benefit payments (102,309) Balance as of June 30, 2025 $2,425,803 Sensitivity Analysis The following presents the total OPEB liability of the District, calculated using the discount rate of -%, as well as what the District's total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (-%) or 1 percentage point higher(-%) than the current rate. June 30, 2025 1% Decrease 3.81% Discount Rate 4.81% 1% Increase 5.81% Total OPEB liability $2,611,255 $2,425,803 $2,253,155 The following presents the total OPEB liability of the school district, calculated using the current healthcare cost trend rates as well as what the school district’s total OPEB liability would be if it were calculated using trend rates that are 1 percentage point lower or 1 percentage point higher than the current trend rates. June 30, 2025 1% Decrease (6.0% decreasing to 3.5%) Discount Rate (7.0% decreasing to 4.5%) 1% Increase (8.0% decreasing to 5.5%) Total OPEB liability $2,149,446 $2,425,803 $2,754,322 40 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 14:Other Postemployment Benefits (Continued) OPEB Expense July 1, 2024 to June 30, 2025 Service cost $192,100 Interest on total OPEB liability 100,769 Recognition of experience gains and losses (129,236) Recognition of assumption changes or inputs (262,116) OPEB expense $(98,483) Other Post-Employment Benefits Expense and Deferred Outflows of Resources and Deferred Inflows for Resources Related to Other Post-employment Benefits Schedule of Deferred Inflow/Outflows of Resources Original Amount Date Established Original Recognition Period Amount Recognized Deferred Inflow of Resources Deferred Outflow of Resources Differences between expected and actual experience/changes in assumptions $(115,858)June 30, 2018 15.36 $(7,543)$(162,354)$99,297 Changes of assumptions or other inputs 137,467 June 30, 2019 14.53 9,461 -80,701 Differences between expected and actual experience/changes in assumptions (1,213,590)June 30, 2020 15.34 (79,112)(818,020)- Changes of assumptions or other inputs 67,752 June 30, 2021 14.5 4,673 -49,064 Differences between expected and actual experience/changes in assumptions (2,473,378)June 30, 2022 9 (274,820)(1,374,100)- Differences between expected and actual experience/changes in assumptions (196,785)June 30, 2023 9 (21,865)(131,190)- Differences between expected and actual experience/changes in assumptions (108,029)June 30, 2024 10 (10,804)(138,024)51,590 Differences between expected and actual experience/changes in assumptions (113,429)June 30, 2025 10 (11,343)(102,086)- Total $(4,015,850)$(391,353)$(2,725,774)$280,652 41 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 14:Other Postemployment Benefits (Continued) Amounts currently reported as deferred outflows of resources and deferred inflows of resources related to other post-employment benefits will be recognized in OPEB expense as follows: Year Ending June 30 2026 $(391,352) 2027 (391,352) 2028 (391,352) 2029 (391,352) 2030 (391,350) Thereafter (488,364) *Note that additional future deferred inflows and outflows of resources may impact these numbers. 42 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 15:PERSI Sick Leave Insurance Reserve Fund The District contributes to the Sick Leave Insurance Reserve Fund (Sick Leave Plan) which is a cost-sharing multiple-employer defined benefit OPEB plan that covers members receiving retirement benefits that are administered by PERSI that covers substantially all employees of the State of Idaho, its agencies and various participating political subdivisions. The cost to administer the plan is financed through the contributions and investment earnings of the plan. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for the Sick Leave Plan. That report may be obtained on the PERSI website at www.persi.idaho.gov. Responsibility for administration of the Sick Leave Plan is assigned to the Board comprised of five members appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members with at least ten years of service and three members who are Idaho citizens not members of the Base Plan except by reason of having served on the Board. OPEB Benefits Group retiree health, dental, accident, and life insurance premiums may qualify as a benefit. Retirees who have a sick leave account can use their balance as a credit towards these premiums paid directly to the applicable insurance company. Employer Contributions The contribution rate for employers are set by statute at 0.065% of covered compensation for state members. Covered school members contribution rates are set by statute based on the number of sick days offered by the employer. The contribution rate of 1.16% for school members with nine or ten sick days, 1.26% for school members with 11-14 sick days. If a school member has more than 14 days of sick leave, then the contribution rate will be set by the PERSI Retirement Board based on current cost and actuarial data and reviewed annually. PERSI did not require any District contributions after December of 2019. The District contributions were $0 for the year ended June 30, 2025 as contributions were suspended on January 1, 2020. OPEB Liabilities, OPEB Expense (Expense Offset), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2024 the District reported an asset for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2024, and the total OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation as of that date. The District’s proportion of the net OPEB asset was based on the District’s share of contributions relative to the total contributions of all participating Sick Leave employers. At June 30, 2024, the District’s proportion was 3.5226265%. For the year ended June 30, 2025, the District recognized OPEB expense offset of $362,334. There were no contributions included as deferred outflows of resources related to OPEBs resulting from Employer contributions subsequent to the measurement date due to the state's contribution waiver. 43 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 15:PERSI Sick Leave Insurance Reserve Fund (Continued) At June 30, 2025, the District reported deferred outflows of resources and deferred inflows of resources related to PERSI OPEB sick leave from the following sources: Deferred Outflows of Resources Deferred Inflow of Resources Difference between expected and actual experience $382,993 $122,987 Changes in assumptions or other inputs 512,534 828,523 Net difference between projected and actual earnings on OPEB plan investments -161,434 Total $895,527 $1,112,944 Amounts currently reported as deferred outflows of resources and deferred inflows of resources related to other post-employment benefits will be recognized in OPEB expense as follows: Year Ending June 30 2026 $(78,252) 2027 274,142 2028 (237,338) 2029 (206,430) 2030 70,806 Thereafter (40,345) 44 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 15:PERSI Sick Leave Insurance Reserve Fund (Continued) Actuarial Assumptions Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. The Sick Leave Plan amortizes any net OPEB asset based on a level percentage of payroll. The maximum amortization period for the Sick Leave Plan permitted under Section 59-1322, Idaho Code, is 25 years. The total OPEB liability in the June 30, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.30% Salary increases including inflation 3.05% Investment rate of return 5.45%, net of investment fees The long-term expected rate of return on OPEB plan investments was determined using the building block approach and a forward-looking model in which best estimate ranges of expected future real rates of return (expected returns, net of OPEB plan 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 weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The health care trend rate is not applicable as the benefit amount a participant will receive is established with a set amount upon retirement thus would have no impact. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions in analyzing the System’s asset allocation. The assumptions and the System’s formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System’s assets. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. Capital Market Assumptions Asset Class Target Allocation Expected Rate of Return (Arithmetic) Broad U.S Equity %39.30 %8.53 Global EX U.S Equity %10.70 %9.09 Fixed Income %50.00 %2.80 Cash Equivalents %2.25 45 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 15:PERSI Sick Leave Insurance Reserve Fund (Continued) Discount Rate The discount rate used to measure the total OPEB liability was 5.45%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on these assumptions, the OPEB plan’s 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 OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. The long-term expected rate of return was determined net of OPEB plan investment expense but without reduction for OPEB plan administrative expense. Sensitivity of the Net OPEB Asset to Changes in the Discount Rate The following presents the Employer's proportionate share of the net OPEB asset calculated using the discount rate of 5.45% at June 30, 2024, as well as what the Employer's proportionate share of the net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower (4.45%) or 1-percentage-point higher (6.45%) than the current rate: 1% Decrease 4.45% Current Single Discount Rate Assumption 5.45% 1% Increase 6.45% Employer’s proportionate share of the net OPEB liability (asset)$(2,263,699)$(3,136,755)$(3,935,084) OPEB Plan Fiduciary Net Position Detailed information about the OPEB plan's fiduciary net position is available in the separately issued PERSI financial report. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Payables to the OPEB Plan At June 30, 2025, the District reported no payables to the defined benefit OPEB plan for legally required employer contributions and for legally required employee contributions which had been withheld from employee wages but not yet remitted to PERSI. 46 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 16:Pension Plan The District contributes to the Base Plan which is a cost sharing multiple-employer defined benefit pension plan administered by Public Employee Retirement System of Idaho (PERSI or System) that covers substantially all employees of the State of Idaho, its agencies, and various participating political subdivisions. The cost to administer the plan is financed through the contributions and investment earnings of the plan. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Responsibility for administration of the Base Plan is assigned to the Board comprised of five members appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members with at least ten years of service and three members who are Idaho citizens not members of the Base Plan except by reason of having served on the Board. Pension Benefits The Base Plan provides retirement, disability, death, and survivor benefits for eligible members or beneficiaries. Benefits are based on members’ years of service, age, and highest average salary. Members become fully vested in their retirement benefits with five years of credited service (5 months for elected or appointed officials). Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. The annual service retirement allowance for each month of credited service is 2.0% (2.3% for police/firefighters) of the average monthly salary for the highest consecutive 42 months. The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature. The Base Plan is required to provide a 1% minimum cost of living increase per year provided the Consumer Price Index increases 1% or more. The PERSI Board has the authority to provide higher cost of living increases to a maximum of the Consumer Price Index movement or 6%, whichever is less; however, any amount above the 1% minimum is subject to review by the Idaho Legislature. Member and Employer Contributions The contribution rate for employees are set by statute at 60% of the employer rate for general employees and 72% for police and firefighters. As of June 30, 2021, it was 7.16% for general employees and 9.13% for police and firefighters. The employer contribution rate as a percent of covered payroll is set by the Retirement Board and was 11.94% general employees and 12.28% for police and firefighters. The District’s contributions were $8,937,019 for the year ended June 30, 2025. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2025, the District reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The District’s proportion of the net pension liability was based on the District’s share of contributions in the Base Plan pension plan relative to the total contributions of all participating PERSI Base Plan employers. At June 30, 2024, the District’s proportion was 1.63117%. 47 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 16:Pension Plan (Continued) For the year ended June 30, 2025, the District recognized pension expense offset of $11,336,120. At June 30, 2025, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflow of Resources Difference between expected and actual experience $9,714,350 $- Changes in assumptions or other inputs 2,417,151 - Net difference between projected and actual earnings on pension plan investments (1,107,547)- Changes in the employer’s proportion and differences between the employer’s contribution and the employer’s proportionate contributions (1,269,856)- District contributions subsequent to the measurement date 9,909,784 - Total $19,663,882 $- $9,909,784 reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2026. The average of the expected remaining service lives of all employees that are provided with pensions through the System (active and inactive employees) determined at July 1, 2022, the beginning of the measurement period ended June 30, 2023, is 4.6 years and 4.6 years for the measurement period ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense (revenue) as follows: Year Ending June 30 2025 $2,585,483 2026 11,144,592 2027 (2,294,674) 2028 (1,681,303) Actuarial Assumptions Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present value of the projected benefits of each individual included in the actuarial valuation is allocated as a level percentage of each year’s earnings of the individual between entry age and assumed exit age. The Base Plan amortizes any unfunded actuarial accrued liability based on a level percentage of payroll. The maximum amortization period for the Base Plan permitted under Section 59-1322, Idaho Code, is 25 years. 48 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 16:Pension Plan (Continued) The total pension liability in the June 30, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.30% Salary increases including inflation 3.05% Investment rate of return 6.35%, net of investment fees Cost-of-living adjustments 1.00% Contributing Members, Service Retirement Members, and Beneficiaries: General employees and all beneficiaries- Males Pub-2010 general tables, increased 11% General employees and all beneficiaries- Females Pub-2010 general tables, increased 21% Teachers- Males Pub-2010 Teacher tables, increased 12% Teachers- Females Pub-2010 Teacher tables, increased 21% Fire & Police- Males Pub-2010 Safety tables, increased 21% Fire & Police- Females Pub-2010 safety tables, increased 26% 5% of Fire and Police active member deaths are assumed to be duty Disabled Members- Males Pub-2010 Disabled tables, increased 38% Disables Members- Females Pub-2010 Disabled tables, increased 36% Assumptions used to calculate the enclosed figures are described in our 2021 Experience Study. The Total Pension Liability as of June 30, 2021 is based on the results of an actuarial valuation date July 1, 2022. The long-term expected rate of return on pension plan investments was determined using the building block approach and a forward-looking model in which best estimate rates or expected future real rates of return (expected returns, net of pension plan 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 weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions in analyzing the System’s asset allocation. The assumptions and the System’s formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System’s assets. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of 2024. 49 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 16:Pension Plan (Continued) Capital Market Assumptions Asset Class Target Allocation Long-Term Expected Rate of Return Large Cap %18.00 %4.50 Small/Mid Cap %11.00 %4.70 International Equity %15.00 %4.50 Emerging Markets Equity %10.00 %4.90 Domestic Markets Equity %20.00 %(0.25) TIPS %10.00 %(0.30) Real Estate %8.00 %3.75 Private Equity %8.00 %6.00 Discount Rate The discount rate used to measure the total OPEB liability was 6.35%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on these assumptions, the OPEB plan’s 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 OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. The long-term expected rate of return was determined net of OPEB plan investment expense but without reduction for OPEB plan administrative expense. Sensitivity of the Employer's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the Employer's proportionate share of the net OPEB asset calculated using the discount rate of 6.35% at June 30, 2024, as well as what the Employer's proportionate share of the net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower (5.35%) or 1-percentage-point higher (7.35%) than the current rate: 1% Decrease 5.35% Current Single Discount Rate Assumption 6.35% 1% Increase 7.35% Employer’s proportionate share of the net OPEB liability (asset)$115,949,884 $61,016,249 $16,149,473 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued PERSI financial report. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. 50 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2025 Note 16:Pension Plan (Continued) Payables to the Pension Plan At June 30, 2025, the District reported no payables to the defined benefit pension plan for legally required employer contributions and for legally required employee contributions which had been withheld from employee wages but not yet remitted to PERSI. Note 17:Impact of Pending Accounting Principles GASB Statement No. 102, Certain Risk Disclosures, requires governments to disclose essential information about risks related to vulnerabilities due to certain concentrations or constraints. The requirements of this Statement are effective for fiscal years beginning after June 15, 2024. The District has not determined the effect of this Statement. GASB Statement No. 103, Financial Reporting Model Improvements, improves key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025. The District has not determined the effect of this Statement. Note 18:Subsequent Events Management of the District evaluated subsequent events through October 13, 2025, which is the date the financial statements were available to be issued. There were no events identified by management that were required to be disclosed in these financial statements. 51 Required Supplemental Information Bonneville Joint School District #93 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual General Fund Year Ended June 30, 2025 Original and Final Budget Actual Variance with Final Budget Revenues Property Taxes $6,000,000 $5,904,905 $(95,095) Investment Earnings 1,850,000 -(1,850,000) Tuition Revenue -21,284 21,284 Rental Revenue 35,000 17,764 (17,236) Other Local Revenue 484,121 657,011 172,890 State apportionment State Apportionment - Base 82,354,494 83,518,881 1,164,387 State Apportionment - Transportation 3,500,000 3,922,530 422,530 State Apportionment - Exceptional Child 25,000 -(25,000) State Paid Benefits 11,497,840 11,645,431 147,591 Revenue in Lieu of Taxes 313,027 310,755 (2,272) Other state revenue for GF-BS 4,554,932 5,089,971 535,039 Total revenues 110,614,414 111,088,532 474,118 Expenditures Instruction Elementary 28,230,165 28,442,391 (212,226) Secondary 28,071,658 27,589,092 482,566 Alternative School 793,451 758,318 35,133 Special education program 11,019,095 11,466,495 (447,400) Special ed preschool program 289,629 274,068 15,561 Gifted and Talented 361,582 329,199 32,383 Interscholastic Program 1,133,962 1,142,026 (8,064) School Activities 323,600 331,065 (7,465) Summer VR Supplies -640 (640) Total instruction 70,223,142 70,333,294 (110,152) Support services Support - Attendance, Guidance 4,252,256 4,295,116 (42,860) Support - Special Services 5,308,557 4,714,934 593,623 Support - Instructional Improvement 3,236,301 3,286,086 (49,785) Support - Educational Media 1,180,253 1,156,846 23,407 Support - Instruction Related Technology 2,146,350 2,183,581 (37,231) Support 20,000 945,771 (925,771) Total support services 16,143,717 16,582,334 (438,617) See notes to required supplementary information.52 Bonneville Joint School District #93 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual (Continued) General Fund Year Ended June 30, 2025 Original and Final Budget Actual Variance with Final Budget Administration Board of education $400,872 $458,762 $(57,890) District administration 408,558 398,622 9,936 School administration 7,715,184 7,549,949 165,235 Total administration 8,524,614 8,407,333 117,281 Business operations Business operations 2,251,837 2,488,142 (236,305) Central Services 181,475 198,936 (17,461) Administrative technology services 10,000 6,820 3,180 Total business administration services 2,443,312 2,693,898 (250,586) Operations Building care (custodial)7,376,442 6,710,738 665,704 Maintenance 3,880,328 3,615,949 264,379 Security 762,838 707,017 55,821 Total operations 12,019,608 11,033,704 985,904 Transportation 5,261,231 5,183,280 77,951 Community service 211,316 259,130 (47,814) Debt Service -205,317 (205,317) Contingency - Budget only 10,176,241 -10,176,241 Total expenditures 125,003,181 114,698,290 10,304,891 Revenues over (under) expenditures (14,388,767)(3,609,758)10,779,009 Other financing sources (uses) Transfers In 861,800 60,000 (801,800) Transfers Out (589,016)(592,129)(3,113) Total other financing sources (uses)272,784 (532,129)(804,913) Net change in fund balance $(14,115,983)(4,141,887)$9,974,096 Fund balance at beginning of year 17,247,509 Fund balance at end of year $13,105,622 See notes to required supplementary information.53 Bonneville Joint School District #93 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual Child Nutrition Year Ended June 30, 2025 Original and Final Budget Actual Variance with Final Budget Revenues Investment Earnings 58,000 51,275 (6,725) Food Service Revenue 1,426,656 1,266,508 (160,148) Other Local Revenue 3,708 5,966 2,258 Rebound Funds 2,274,690 2,657,856 383,166 Commodities 300,000 401,297 101,297 Total revenues 4,063,054 4,382,902 319,848 Expenditures Community service 5,325,615 5,242,305 83,310 Contingency - Budget only 117,445 -117,445 Total expenditures 5,443,060 5,242,305 200,755 Revenues over (under) expenditures (1,380,006)(859,403)520,603 Other financing sources (uses) Transfers In 141,666 141,429 (237) Transfers Out (61,800)(60,000)1,800 Total other financing sources (uses)79,866 81,429 1,563 Net change in fund balance $(1,300,140)(777,974)$522,166 Fund balance at beginning of year 1,351,612 Fund balance at end of year $573,638 See notes to required supplementary information.54 Bonneville Joint School District #93 Schedule of District's of Proportionate Share of the Net OPEB Liability and Related Ratios Last Ten Fiscal Years* 2025 2024 2023 2022 2021 2020 2019 Total OPEB liability Service cost $192,100 $215,547 $229,248 $545,698 548,323 513,403 512,500 Interest on the total OPEB liability 100,769 99,623 82,311 101,373 109,465 168,399 147,380 Differences in experience (3,676)(172,521)(74,012)(454,904)(512,762) Effect of assumption changes or inputs (109,753)64,492 (122,773)(2,018,474)67,752 (700,828)137,467 Expected benefit payments (102,309)(189,553)(41,594)(217,378)(202,290)(246,776)(197,261) Net change in total OPEB liability 77,131 17,588 73,180 (2,043,685)523,250 (778,564)600,086 Total OPEB liability, beginning 2,348,672 2,331,084 2,257,904 4,301,589 3,778,339 4,556,903 3,956,817 Total OPEB liability, ending $2,425,803 $2,348,672 $2,331,084 2,257,904 4,301,589 3,778,339 4,556,903 Covered-employee payroll $58,198,980 $58,198,980 $56,355,247 $56,355,247 $45,100,125 $43,470,000 $45,056,550 Total OPEB liability as a percentage of covered valuation payroll %4.17 %4.04 %4.14 %4.01 %9.54 %8.69 %10.11 * GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10- year trend is compiled, the District will present information for those years for which information is available. See notes to required supplementary information.55 Bonneville Joint School District #93 Schedule of Employer's Share of the Net OPEB Asset PERSI Sick-Leave Plan Last 10 Fiscal Years* Fiscal Year Ended June 30, 2025 2024 2023 2022 2021 District's portion of the net OPEB asset %3.5226265 %3.5226265 %3.5226265 %3.5226265 District's proportionate share of the net OPEB asset 3,136,755 2,556,243 2,681,672 5,115,573 District's covered-employee payroll 58,198,980 65,920,483 63,024,076 59,855,707 District's proportionate share of the net OPEB asset as a percentage of its covered-employee payroll %5.390 %3.878 %4.255 %8.547 Plan fiduciary net position as a percentage of the total OPEB asset %128.64 %124.33 %127.21 %152.61 2020 2019 2018 2017 District's portion of the net OPEB asset %3.5226265 %3.6101186 %3.3966 %3.1984 District's proportionate share of the net OPEB asset 4,337,431 3,457,786 2,817,300 2,455,155 District's covered payroll 54,260,793 51,263,509 45,756,462 38,322,048 District's proportionate share of the net OPEB asset as a percentage of its covered-employee payroll %7.994 %6.745 %6.407 %0.01 Plan fiduciary net position as a percentage of the total OPEB asset %152.87 %138.51 %135.69 %136.78 *GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10- year trend is compiled, the District will present information for those years for which information is available. Date reported is measured as of June 30, 2024 (measurement date) See notes to required supplementary information.56 Bonneville Joint School District #93 Schedule of Employer Contributions PERSI Sick Leave Plan Last 10 Fiscal Years* Fiscal Year Ended June 30, 2025 2025 2024 2023 2022 Contribution deficiency (excess)0 0 0 0 District's covered-employee payroll 75,895,098 72,956,260 65,920,483 63,024,076 2021 2020 2018 2017 Contractually required contributions 0 594,657 594,657 530,775 Contributions in relation to the contractually required contributions 0 629,425 594,657 530,775 Contribution deficiency (excess)0 (34,768)0 0 District's covered payroll 59,855,707 54,260,793 51,263,509 45,756,462 Contributions as a percentage of covered payroll %0.00 %1.10 %1.16 %1.16 *GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10- year trend is compiled, the District will present information for those years for which information is available. Date reported is measured as of June 30, 2025 (reporting date) See notes to required supplementary information.57 Bonneville Joint School District #93 Schedule of Employer's Share of the Net Pension Liability PERSI-Base Plan Last 10-Fiscal Years Fiscal Year Ended June 30, 2025 2024 2023 2022 2021 2020 District's proportion of the net pension liability (percentage)%1.63116926 %1.54685850 %1.59817258 %1.60497000 %1.52377110 District's proportional share of the net pension liability (amount)61,016,249 61,730,026 62,948,151 (1,267,573)35,383,980 District's Covered Payroll 58,198,980 65,920,483 63,024,076 59,855,707 54,260,793 District's proportionate share of the net pension liability as a percentage of its covered payroll %104.84 %93.64 %99.88 %(2.12)%65.21 Plan fiduciary net position as a percent of total pension liability %85.54 %83.83 %83.09 %100.36 %88.22 2019 2018 2017 2016 2015 District's proportion of the Net Pension Liability (percentage)%1.50930670 %1.41939760 %1.31157080 %1.30930460 %1.313797 District's Net Pension Liability (amount 17,228,315 20,936,362 20,615,640 26,541,615 17,300,573 District's Covered Payroll 51,263,509 45,756,462 40,809,784 38,322,048 36,799,863 District's Proportionate Share as a percent of Covered Payroll %33.61 %45.76 %50.52 %69.26 %0.01 Plan Fiduciary Net Position as a percent of Total Pension Liability %93.79 %91.69 %90.68 %87.26 %91.38 The amounts presented for each fiscal year were determined as of June 30, 2024 the measurement date. See notes to required supplementary information.58 Bonneville Joint School District #93 Schedule of Employer Contributions PERSI-Base Plan Last 10-Fiscal Years Fiscal Year Ended June 30, 2025 2025 2024 2023 2022 2021 Statutorily required contributions 9,909,784 8,950,103 7,870,906 7,525,075 7,146,771 Contributions in relation to the statutorily required contributions 9,909,784 8,950,103 7,870,906 7,525,075 7,146,773 Contribution (deficiency)/excess 0 0 0 0 2 District's covered payroll 75,895,098 72,956,260 65,920,483 63,024,076 59,855,707 Contributions as a percent of covered payroll %13.06 %12.27 %11.94 %11.94 %11.94 2020 2019 2018 2017 2016 Contractually Required DB Contributions 6,478,739 5,803,029 5,179,631 4,619,668 4,338,056 Contributions in Relation to the Contractually Required Contributions 6,478,608 5,803,027 5,179,635 4,619,665 4,338,975 Contribution Deficiency (Excess)(131)(2)4 (3)1,097 District's covered payroll 54,260,793 51,263,509 45,756,462 40,809,784 38,322,048 Contributions as a percent of Covered Payroll %11.94 %11.32 %11.32 %11.32 %11.32 The amounts presented for each fiscal year were determined as of June 30, 2025 the most recent fiscal year end. See notes to required supplementary information.59 Bonneville Joint School District #93 Notes to Required Supplementary Information Fiscal Year Ended June 30, 2025 Budgetary Data Annual budgets for all Governmental Funds are adopted on the modified accrual basis, consistent with generally accepted accounting principles (GAAP) for local governments. All annual appropriations lapse at year end. 60 Supplementary Information Bonneville Joint School District #93 Combining Balance Sheet - All Nonmajor Funds June 30, 2025 Medicaid E-RATE Special Projects Fund Hillcrest stadium construction School Accounts Bonn Ed Fdn Professional Technical Public School Technology Idaho Substance Abuse Forest Reserve Fund Improving Basic Programs AssetsCash and cash equivalents $413,563 $412,685 $6,260,213 $-$2,927,767 $-$1,240,932 $1,010,127 $164,019 $269,141 $- Federal grants/contracts --417,234 -514 --31,955 --402,080 Other Receivables --189,552 -29 177,366 ---733 - Total assets $413,563 $412,685 $6,866,999 $-$2,928,310 $177,366 $1,240,932 $1,042,082 $164,019 $269,874 $402,080 Liabilities and fund equity Liabilities Accounts payable $15,800 $-$11,876 $-$119,542 $8,946 $11,549 $11,604 $163 $11 $3,596 Wages payable 273,225 ---4,711 -8,864 ---181,747 Benefits payable 124,538 ---449 -1,851 ---66,068 Interfund payable ---442,660 455,657 168,420 ----150,669 Total liabilities 413,563 -11,876 442,660 580,359 177,366 22,264 11,604 163 11 402,080 Fund equity Restricted -412,685 6,855,123 (442,660)2,347,951 -1,218,668 1,030,478 163,856 269,863 - Total fund equity 412,685 6,855,123 (442,660)2,347,951 -1,218,668 1,030,478 163,856 269,863 - Total liabilities and fund equity $413,563 $412,685 $6,866,999 $-$2,928,310 $177,366 $1,240,932 $1,042,082 $164,019 $269,874 $402,080 See Independent Auditor's Report on Supplementary Information.61 Bonneville Joint School District #93 Combining Balance Sheet - All Nonmajor Funds June 30, 2025 Migrant Education IDEA School Age IDEA Preschool Title IV Perkins III Professional Technical Title III Supporting Effective Instruction IDEA Minigrant Total Nonmajor Funds Assets Cash and cash equivalents $-$-$-$-$-$-$-$-$12,698,447 Federal grants/contracts 17,639 993,839 29,933 --10,303 158,254 -2,061,751 Other Receivables --------367,680 Total assets $17,639 $993,839 $29,933 $-$-$10,303 $158,254 $-$15,127,878 Liabilities and fund equity Liabilities Accounts payable $205 $-$-$-$-$22 $6,361 -$189,675 Wages payable 8,219 267,021 3,242 --5,020 8,077 -760,126 Benefits payable 3,706 131,842 2,906 --1,054 1,734 -334,148 Interfund payable 5,509 594,976 23,785 --4,207 142,082 -1,987,965 Total liabilities 17,639 993,839 29,933 --10,303 158,254 -3,271,914 Fund equity Restricted --------11,855,964 Total fund equity --------11,855,964 Total liabilities and fund equity $17,639 $993,839 $29,933 $-$-$10,303 $158,254 $-$15,127,878 See Independent Auditor's Report on Supplementary Information.62 Bonneville Joint School District #93 Combining Schedule of Revenues, Expenditures and Changes In Fund Balances - All Nonmajor Funds Year Ended June 30, 2025 Medicaid E-RATE Special Projects Fund Hillcrest stadium construction School Accounts Bonn Ed Fdn Professional Technical Public School Technology Idaho Substance Abuse Forest Reserve Fund Improving Basic Programs Revenues Investment Earnings $-$-$3,518,841 $-$3,727 $-$-$-$-$-$- Other local -166,137 1,280,218 104,309 4,090,692 122,721 ----- Other state revenue ------666,006 1,420,894 171,242 -- Federal grants and assistance 4,657,105 --------9,950 1,710,408 Total revenues 4,657,105 166,137 4,799,059 104,309 4,094,419 122,721 666,006 1,420,894 171,242 9,950 1,710,408 Expenditures Instruction Elementary --7,124 -196,959 3,600 ----1,531,778 Secondary --27,045 -638,723 24,616 ----1,192 Alternative School --1,015 -4,114 ------ Interscholastic Program --3,730 -1,595,416 76,219 ----- Special education program 1,750,593 ---------- Special ed preschool program ----------- School Activities ----1,023,567 10,616 ---17,992 - Summer School ----------165 Vocational ----26,072 -887,892 ---- Support services Attendance, guidance, and health -----651 ----17,148 Special ed support services 2,906,512 ---------- Instructional improvement --130,041 -------330,607 Educational media --28 -19,242 ------ Instruction related technology -340,130 30,030 ----2,012,389 --- Support --213,353 -26,982 4,420 ----20,855 School administration ----357,678 -13,932 ---- Business operations --159 --99 ----- Operations --199,375 -96,461 2,500 --214,866 -- Community services --5,902 -------- Non - Instructional --3,130 -------- Facility acquisition ---137,087 ------- Debt service: Debt Service - Principal -------17,509 --- Debt Service - Interest -------721 --- Total expenditures 4,657,105 340,130 620,932 137,087 3,985,214 122,721 901,824 2,030,619 214,866 17,992 1,901,745 Revenue over (under) expenditures -(173,993)4,178,127 (32,778)109,205 -(235,818)(609,725)(43,624)(8,042)(191,337) Other financing sources (uses) Transfers In ---1,500,000 ------191,337 Transfers Out --(1,500,000)-------- Proceeds from obligations -------554,243 --- Total other financing sources (uses)--(1,500,000)1,500,000 ---554,243 --191,337 Net change in fund balances 0 (173,993)2,678,127 1,467,222 109,205 -(235,818)(55,482)(43,624)(8,042)- Fund balances, beginning of year 0 586,678 4,176,996 (1,909,882)2,238,746 -1,454,486 1,085,960 207,480 277,905 - Fund balances, end of year $0 $412,685 $6,855,123 $(442,660)$2,347,951 $0 $1,218,668 $1,030,478 $163,856 $269,863 $- See Independent Auditor's Report on Supplementary Information.63 Bonneville Joint School District #93 Combining Schedule of Revenues, Expenditures and Changes In Fund Balances - All Nonmajor Funds Year Ended June 30, 2025 Migrant Education IDEA School Age IDEA Preschool Title IV Perkins III Professional Technical Title III Supporting Effective Instruction IDEA Minigrant Total Nonmajor Funds Revenues Investment Earnings $-$-$-$-$-$-$-$-$3,522,568 Other local --------5,764,077 Other state revenue --------2,258,142 Federal grants and assistance 79,139 2,368,524 84,975 191,337 164,416 48,490 327,205 5,467 9,647,016 Total revenues 79,139 2,368,524 84,975 191,337 164,416 48,490 327,205 5,467 21,191,803 Expenditures Instruction Elementary -----29,024 --1,768,485 Secondary -----19,343 --710,919 Alternative School --------5,129 Interscholastic Program --------1,675,365 Special education program -2,233,951 -----5,467 3,990,011 Special ed preschool program -42,986 84,975 -----127,961 School Activities --------1,052,175 Summer School 13,180 -------13,345 Vocational ----164,416 ---1,078,380 Support services Attendance, guidance, and health 65,959 -------83,758 Special ed support services -91,587 ------2,998,099 Instructional improvement -----123 327,205 -787,976 Educational media --------19,270 Instruction related technology --------2,382,549 Support --------265,610 School administration --------371,610 Business operations --------258 Operations --------513,202 Community services --------5,902 Non - Instructional --------3,130 Facility acquisition --------137,087 Debt service: Debt Service - Principal --------17,509 Debt Service - Interest --------721 Total expenditures 79,139 2,368,524 84,975 -164,416 48,490 327,205 5,467 18,008,451 Revenue over (under) expenditures ---191,337 ----3,183,352 Other financing sources (uses) Transfers In --------1,691,337 Transfers Out ---(191,337)----(1,691,337) Proceeds from obligations --------554,243 Total other financing sources (uses)---(191,337)----554,243 Net change in fund balances --------3,737,595 Fund balances, beginning of year --------8,118,369 Fund balances, end of year $-$-$-$-$-$-$-$-$11,855,964 See Independent Auditor's Report on Supplementary Information.64 Bonneville Joint School District #93 Schedule of Taxes Receivable General Fund Debt Service Capital Projects Year Ended June 30, 2025 Total 2025 2024 and prior Total 2025 2024 and prior 2025 2024 and prior Unavailable balance at July 1, 2024 $248,062 $-$248,062 $183,647 $-$183,647 $119,758 $-$119,758 Additions Roll charges 5,845,384 5,845,384 -6,046,494 6,046,494 -2,821,910 2,821,910 - Subsequent additions and cancellations (7,129)(6,927)(202)(5,389)(5,281)(108)(3,446)(3,345)(101) Total additions 6,086,317 5,838,457 247,860 6,224,752 6,041,213 183,539 2,938,222 2,818,565 119,657 Deductions Collections Received 3,861,168 3,673,811 187,357 3,948,690 3,799,506 149,184 1,840,184 1,773,565 66,619 Current amount due on taxes collected by the counties 2,037,932 2,014,328 23,604 2,093,591 2,086,207 7,384 1,006,692 972,433 34,259 Total deductions 5,899,100 5,688,139 210,961 6,042,281 5,885,713 156,568 2,846,876 2,745,998 100,878 Unavailable balance at June 30, 2025 $187,217 $150,318 $36,899 $182,471 $155,500 $26,971 $91,346 $72,567 $18,779 See Independent Auditor's Report on Supplementary Information.65 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 Board of Trustees Bonneville Joint School District #93 Idaho Falls, Idaho We have audited, 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, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Bonneville Joint School District #93, as of and for the year ended June 30, 2025 and the related notes to the financial statements, which collectively comprise the Bonneville Joint School District #93's basic financial statements, and have issued our report thereon dated October 13, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Bonneville Joint School District #93's internal control over financial reporting (internal control) as a basis for designing 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 Bonneville Joint School District #93's internal control. Accordingly, we do not express an opinion on the effectiveness of the Bonneville Joint School District #93's internal control. 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 reasonable possibility that a material misstatement of the Bonneville Joint School District #93’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or 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. 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 or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether Bonneville Joint School District #93'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 financial statements. 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. “Wipfli" is the brand name under which Wipfli LLP and Wipfli Advisory LLC and its respective subsidiary entities provide professional services. Wipfli LLP and Wipfli Advisory LLC (and its respective subsidiary entities) practice in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. Wipfli LLP is a licensed independent CPA firm that provides attest services to its clients, and Wipfli Advisory LLC provides tax and business consulting services to its clients. Wipfli Advisory LLC and its subsidiary entities are not licensed CPA firms. 66 Purpose of This Report 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 Bonneville Joint School District #93'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 Bonneville Joint School District #93's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Wipfli LLP Idaho Falls, Idaho October 13, 2025 “Wipfli" is the brand name under which Wipfli LLP and Wipfli Advisory LLC and its respective subsidiary entities provide professional services. Wipfli LLP and Wipfli Advisory LLC (and its respective subsidiary entities) practice in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. Wipfli LLP is a licensed independent CPA firm that provides attest services to its clients, and Wipfli Advisory LLC provides tax and business consulting services to its clients. Wipfli Advisory LLC and its subsidiary entities are not licensed CPA firms. 67 Bonneville Joint School District #93 Schedule of Findings and Responses Year Ended June 30, 2025 Section I - Summary of Auditor's Results Financial Statements Type of auditor's report issued on whether the financial statements were prepared in accordance with GAAP:Unmodified Internal control over financial reporting: Material weakness(es) identified? Yes X No Significant deficiency(ies) identified? Yes X None Reported Noncompliance material to financial statements noted? Yes X No 68 Bonneville Joint School District #93 Schedule of Findings and Responses (Continued) Year Ended June 30, 2025 1.Audit Findings in Relation to the Financial statements - None 69 Bonneville Joint School District #93 Summary Schedule of Prior Audit Findings Year Ended June 30, 2025 NONE 70