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HomeMy WebLinkAbout2020 Bonneville School District AuditBonneville Joint School District #93 Idaho Falls, Idaho Annual Financial Report Year Ended June 30, 2020 Bonneville Joint School District #93 Contents June 30, 2020 MANAGEMENT’S DISCUSSION & ANALYSIS ........................................................................................... 1-7 INDEPENDENT AUDITOR’S REPORT .......................................................................................................... 8-9 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position ............................................................................................................................10 Statement of Activities ................................................................................................................................11 Fund Financial Statements Combined Balance Sheet Governmental Funds....................................................................................................................................12 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ..................................................................................................................13 Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances............................... 14-15 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, And Changes in Fund Balances to the Statement of Activities ...................................................................16 Fiduciary Funds Statement of Fiduciary Net Position ............................................................................................................17 Notes to Financial Statements ...................................................................................................................... 18-40 REQUIRED FINANCIAL INFORMATION General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual .......................................................................................................................................... 41-42 Required Supplementary Information.......................................................................................................... 43-45 Notes to Required Supplementary Information .................................................................................................46 OTHER FINANCIAL INFORMATION All Nonmajor Funds Combining Balance Sheet ..................................................................................................................................47 All Nonmajor Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance ............................................48 i Bonneville Joint School District #93 Contents June 30, 2020 All Agency Funds Combining Schedule of Changes in Assets and Liabilities ......................................................................... 49-50 Schedule of Taxes Receivable ..................................................................................................................... 51-52 ANNUAL FEDERAL COMPLIANCE SECTION 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 .................................................................................................................. 53-54 Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance ......................................................................................... 55-56 Schedule of Findings and Questioned Costs ................................................................................................ 57-58 Schedule of Expenditures of Federal Awards .............................................................................................. 59-60 Notes to Schedule of Expenditures of Federal Awards .....................................................................................61 Summary Schedule of Prior Audit Findings .....................................................................................................62 ii Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2020 The discussion and analysis of Bonneville Joint School District #93’s financial performance provides an overall review of the District’s financial activities for the fiscal year ended June 30, 2020. The intent of this discussion and analysis is to look at the District’s financial performance as a whole; readers should also review the notes to the basic financial statements and the financial statements to enhance their understanding of the District’s financial performance. FINANCIAL HIGHLIGHTS Key financial highlights for 2020 are as follows: In total, net position increased $7,262,602 which represents an 23.83% increase from 2019 balance of $30,478,697. General revenues accounted for $90,727,713 in revenue or 79.69% of all revenues. Program specific revenues in the form of charges for services, operating grants and contributions, and capital grants and contributions accounted for $23,125,960 or 20.31% of total revenues of $113,853,673. Total assets of governmental activities increased by $3,293,982, as cash and cash equivalents decreased by $8,960,395, receivables and prepaid expenses increased by $2,463,012, inventory increased by $48,558, and capital assets increased by $9,742,011. 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 increased by $2,874,473. The District had $106,591,071 in expenses; only $23,125,960 of these expenses were offset by program specific charges for services, grants, or contributions. General revenues (primarily state support and local property taxes) of $90,727,713 were adequate to provide for these programs. Among major funds, the General Fund had $83,310,969 in revenues, and $81,478,595 in expenditures. The General Fund’s fund balance increased $1,371,208 from 2019. USING THE BASIC FINANCIAL STATEMENTS This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand Bonneville Joint School District #93 as a financial whole, an entire operating entity. The statements then proceed to provide an increasingly detailed look at specific financial activities. The Statement of Net Position and the 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 the case of Bonneville Joint School District #93, the General Fund is by far the most significant fund. 1 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2020 REPORTING THE DISTRICT AS A WHOLE Statement of Net Position and the Statement of Activities 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 2020?” The Statement of Net Position and the Statement of Activities answer this question. These statements include all assets and liabilities 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 assets and changes in those assets. 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 condition, 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. REPORTING THE DISTRICT’S MOST SIGNIFICANT FUNDS Fund Financial Statements The analysis of the District’s major funds begins on page 12. 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, and Construction 2018 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. The District serves as a trustee, or fiduciary, for student organizations and programs. The assets of these organizations and programs do not directly benefit nor are they under the direct control of the District. The District’s responsibility is limited to ensuring the assets reported in these funds are used only for their intended purposes. Fiduciary activities are excluded from the government-wide financial statements because the District cannot use these assets to finance its operations. 2 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2020 THE DISTRICT AS A WHOLE Recall that the Statement of Net Position provides the perspective of the District as a whole. The following table provides a summary of the District’s net position for 2020 compared to 2019: Assets Current and other assets Capital assets Total assets Deferred outflows of resources Current and other liabilities Long-term liabilities Total liabilities Deferred inflows of resources Net investment in capital assets Restricted Unrestricted Total net position 2020 2019 66,223,550 139,951,819 72,671,579 130,209,808 206,175,369 202,881,387 11,812,174 12,682,304 17,489,490 153,184,214 14,533,132 164,599,873 170,673,704 179,133,005 9,572,540 5,951,989 25,501,198 24,006,240 (11,766,139) 37,741,299 24,134,348 20,984,961 (14,640,612) 30,478,697 Total assets of governmental activities increased by $3,293,982, as cash and cash equivalents decreased by $8,960,395, receivables increased by $2,463,012, inventory increased by $48,558, and capital assets increased by $9,742,011. The District’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $37,741,299 at the close of the most recent fiscal year. 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 increased by $2,874,473 from 2019. 3 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2020 The following table shows the changes in net position for fiscal years 2020 and 2019: 2020 2019 Revenues Program revenues Charges for services 3,449,040 3,752,619 Operating grants and contributions 19,676,920 18,676,298 General revenues Property taxes 20,596,067 18,108,442 State aid 67,624,096 62,161,518 Federal aid 35,567 22,474 Other 2,471,983 2,575,434 Total revenues 113,853,673 105,296,785 Program expenses Instruction 57,914,572 58,067,752 Support services 18,085,973 17,173,968 Administrative 7,112,663 7,388,801 Business admin services 2,161,893 2,225,366 Operations 9,043,047 9,197,915 Transportation 3,964,627 4,343,281 Community service 94,993 144,605 Non-instructional 3,495,063 3,623,659 Interest and fiscal charges 3,866,125 4,015,700 Capital improvements 852,115 1,881,851 Total expenses 106,591,071 108,062,898 Increase (decrease) in net position 7,262,602 (2,766,113) GOVERNMENTAL ACTIVITIES Governmental revenues come primarily from three sources. State aid of $79,919,329 consists of the state apportionment, other state grants, and revenue in lieu of taxes, and makes up 70.19% of revenues from governmental activities. Property taxes of $20,596,067 make up 18.09% of total revenues from governmental activities. Federal contracts and grants of $10,084,838 make up 8.86% of total revenues from governmental activities. Instruction expenditures including the support activities of support services, administrative, business admin services, operations, and transportation comprise $98,282,775 of District expenses. 4 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2020 The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. The following table shows the total cost of services and the net cost of services. That is, it identifies the cost of these services supported by tax revenue and unrestricted state entitlements. % of Total cost of Net cost of Total Services 2020 Services 2020 Instruction 54.33 57,914,572 50,700,288 Support services 16.97 18,085,973 13,054,551 Administrative 6.67 7,112,663 7,081,574 Business admin services 2.03 2,161,893 2,141,685 Operations 8.48 9,043,047 7,985,815 Transportation 3.72 3,964,627 1,000,075 Community service 0.09 94,993 94,993 Non-instructional 3.28 3,495,063 (28,616) Interest and fiscal charges 3.63 3,866,125 735,737 Capital improvements 0.80 852,115 699,009 Total expenses 100 106,591,071 83,465,111 Instruction: Instruction expenses include activities directly dealing with the teaching of pupils and the interaction between teacher and pupil. 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 schools. Administration: The personnel, activities, and services for directing and managing the operation of the schools in the District. (Principals, assistant principals, secretaries, and clerks charged with responsibility for a school’s administration) Board of Education, Administration, includes expenses associated with administrative supervision of the District. Business Admin Services: The program concerned with the fiscal operations of the District. This program may include budgeting, fiscal and business expenditures, receiving and disbursing, purchasing, financial and property accounting, payroll, internal auditing, and activities that support other administrative and instructional functions including fiscal services, human resources, planning, and administrative information technology. 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. Community Services: Community Services provide training and materials for parents in the form of workshops, in-service, parent/ family nights, a parent center library, and Pine Basin summer camp. These services better train parents to help students reach state standards. 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 District vehicles. Non-instructional: Non-instructional services include the preparation, delivery, and servicing of lunches, snacks, and other incidental meals to students and school staff in connection with school activities. 5 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2020 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. THE DISTRICT’S FUNDS Information about the District’s major funds starts on page 12. These funds are accounted for using the modified accrual basis of accounting. All governmental funds had total revenues of $113,776,729 and expenditures of $124,023,269. The net change in fund balance for the year in the General Fund, Debt Service Fund, Capital Projects Fund, and Construction 2018 Fund, was an increase of $1,371,208, an increase of $2,285,379, an increase of $383,787, and a decrease of $14,767,744 respectively. GENERAL FUND BUDGETING HIGHLIGHTS During the course of fiscal 2020 year, the District did not amend its budget. For the General Fund, the budgeted revenue was $82,818,224 and the budgeted expense was $82,539,153. Actual revenue was $83,310,969 which includes $688,639 for leadership premiums to qualifying personnel and $457,299 in professional development funds. Actual expenditures were $81,478,595, which include expenditures related to the leadership premiums and professional development. CAPITAL ASSETS At the end of the fiscal year 2020, the District had $139,951,819 invested in land, buildings, furniture and equipment, and vehicles (net of accumulated depreciation). 2020 2019 Non-depreciable assets 25,564,512 10,643,035 Buildings and improvements 110,656,914 115,609,949 Equipment 1,664,382 1,852,086 Vehicles 2,066,011 2,104,738 Total capital assets, net 139,951,819 130,209,808 Overall capital assets increased $9,742,011 from fiscal year 2019 to fiscal year 2020. Increase in capital assets, primarily buildings, equipment, and vehicles, was mostly due to the construction of the new middle school. DEBT ADMINISTRATION At June 30, 2020, the District had five general obligation bond issues as follows: Due within Total one year 2012A Series Bond 11,780,000 2012C Series Bond 8,115,000 1,020,000 2016A Series Bond 49,165,000 835,000 2016B Series Bond 19,035,000 1,790,000 2018 Series Bond 28,905,000 Total 117,000,000 3,645,000 At June 30, 2020, the District’s overall legal debt margin was $158,081,629. 6 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2020 CURRENT FINANCIAL ISSUES AND CONCERNS Despite the impacts of COVID-19, Bonneville Joint School District 93 ended Fiscal Year 2020 without deficit spending. COVID-19 has impacted Bonneville School District 93 in several ways. In March 2020, Governor Little announced a 1% budget holdback for all Idaho School Districts. This holdback resulted in approximately $750,000 in reduced state funding for FY 2020. Because schools building were closed from the end of March through the end of May, there were significant savings in operational costs such as utilities and substitute teachers. After the state legislature approved the Fiscal Year 2021 Public School Budget, the Governor ordered a five percent holdback. In the last week, we received word that the holdback is being restored as discretionary funds, but we do not yet have enough details to know the impact to our District. Additionally, Bonneville School District 93 has been awarded several Coronavirus Relief related funds that we will use according to the specifications and stipulations of each individual grant. Because our school district has been operating online schools in addition to traditional schools for many years, we have been able to manage online learning for those who have chosen this method of instruction. Enrollment in our schools for many years has been increasing, but that trend did not continue as we opened school in August 2020. Enrollment stayed mostly flat as compared to one year ago. Because of COVID-19, we expect attendance rates to be lower than normal this year, which typically would have a large impact on state funding. However, the State Board of Education has authorized schools to be funded on enrollment instead of attendance this coming year, so our budget projections remain accurate. Because we did not experience growth as we have in prior years, the District did not qualify for $1,500,000 Emergency Levy Property Tax Funds that we had budgeted to receive in Fiscal Year 2021. Fortunately, the District has available funds in prior year savings to cover this revenue reduction. We will also be watching for opportunities to reduce costs as we continue through the school year. As we move forward through this school year and prepare for next year’s budget cycle, we will be very cautious with staffing levels as that is where close to ninety percent of our operating budget is spent. 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. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT 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, 3497 North Ammon Road, Idaho Falls, Idaho 83401 or email at GuyW@d93.k12.id.us. 7 INDEPENDENT AUDITOR’S REPORT Board of Trustees Bonneville Joint School District #93 3497 N. Ammon Road Idaho Falls, Idaho Report on the Financial Statements We have audited the accompanying financial statements 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, 2020, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility 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; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of Bonneville Joint School District #93, as of June 30, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States require that the Management’s Discussion and Analysis, budgetary comparison information, Schedule of Changes in Total OPEB Liability and Related Ratios, schedule of employer’s share of net OPEB asset PERSI-Sick Leave plan last 10 fiscal years, schedule of employer 8 contribution PERSI-Sick Leave Plan last 10 fiscal years, and schedule of employer’s share of net pension liability for PERSI-Base plan last 10 fiscal years and schedule of employer contributions PERSI-Base plan for last 10 fiscal years listed in the table of contents on pages 1 through 7 and pages 41 through 46 be presented to supplement the basic financial statements. Such information, 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 basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States, 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 basis 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The accompanying supplementary information, such as the combining and individual nonmajor fund financial schedules, the agency fund combining schedule of changes in assets and liabilities, other schedules listed in the table of contents, and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), are not a required part of the financial statements. The combining and individual nonmajor fund financial schedules, the agency fund combining schedule of changes in assets and liabilities, other schedules listed in the table of contents, and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States. In our opinion, the combining and individual nonmajor fund financial schedules, the agency fund combining schedule of changes in assets and liabilities, other schedules listed in the table of contents and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 21, 2020, on our consideration of Bonneville Joint School District #93’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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 CPAs and Consultants Idaho Falls, Idaho October 21, 2020 9 This page intentionally left blank. Bonneville Joint School District #93 Statement of Net Position June 30, 2020 Governmental Activities ASSETS Cash and investments 48,939,311 Property tax receivable, net 7,802,188 Other receivables 5,883,712 Supplies inventory 140,553 PERSI Sick Leave 3,457,786 Land and construction in progress 25,564,512 Depreciable buildings, equipment, and vehicles, net of depreciation 114,387,307 Total assets 206,175,369 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding 1,764,851 Changes of assumptions and other inputs - OPEB 286,698 Changes of assumptions and other inputs - PERSI SL 695,089 Related to pensions 9,065,536 Total deferred outflows of resources 11,812,174 LIABILITIES Accounts payable 2,658,220 Accrued wages 9,728,555 Accrued employee benefits 3,517,776 Interest payable 1,584,939 Long-term liabilities Net pension liability 17,228,315 Portion due or payable within one year Other liabilities 267,675 Portion due or payable after one year General obligation bonds/premium 126,500,377 Other post employment benefits 3,778,339 Total liabilities 170,673,704 DEFFERED INFLOWS OF RESOURCES Differences between expected & actual experience - OPEB 1,473,055 Differences between expected & actual experience - PERSI SL 199,855 Related to pensions 7,899,630 Total deferred inflows of resources 9,572,540 NET POSITION Net investment in capital assets 25,501,198 Restricted for Capital improvements 7,401,649 Debt service 12,533,014 Child nutrition 1,253,844 Other 2,817,733 Unrestricted (11,766,139) Total net position 37,741,299 The accompanying notes are an integral part of these statements. 10 0 0 0 Bonneville Joint School District #93 Statement of Activities Fiscal Year Ended June 30, 2020 Net (expense) revenue and changes in Program Revenues net position Operating Capital Total Charges for grants and grants and governmental Functions / Programs Expenses services contributions contributions activities Governmental activities Instruction 57,914,572 1,290,785 5,923,499 (50,700,288) Support services 18,085,973 1,438,642 3,592,780 (13,054,551) Administrative 7,112,663 19,094 11,995 (7,081,574) Business admin services 2,161,893 20,208 (2,141,685) Operations 9,043,047 1,057,232 (7,985,815) Transportation 3,964,627 65,269 2,899,283 (1,000,075) Community service 94,993 (94,993) Noninstructional 3,495,063 635,250 2,888,429 28,616 Interest on long-term debt 3,866,125 3,130,388 (735,737) Capital improvements 852,115 153,106 (699,009) Total governmental activities 106,591,071 3,449,040 19,676,920 0 (83,465,111) General revenues Taxes Property taxes 20,348,045 Property tax replacement 248,022 Federal grants 35,567 State aid - formula grants 66,429,081 Other state revenues 1,195,015 Investment earnings 889,682 Other local 1,625,601 Special items Gain (loss) on sale of assets (43,300) Total general revenues 90,727,713 Change in net position 7,262,602 Net position - beginnng 30,478,697 Net position - ending 37,741,299 The accompanying notes are an integral part of these statements. 11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bonneville Joint School District #93 Combined Balance Sheet Governmental Funds June 30, 2020 All Total ASSETS Cash and investments Receivables Taxes - current Taxes - delinquent State apportionment Federal grants/contracts Other Interfund receivable Supplies inventory General 11,730,058 2,724,297 291,689 2,829,287 7,971 1,511,690 Debt Service 8,830,642 3,365,487 329,968 6,917 Capital Projects 6,385,926 984,731 106,016 Construction 2018 17,566,427 19,199 Nonmajor Funds 4,426,258 2,727,326 293,012 140,553 Governmental Funds 48,939,311 7,074,515 727,673 2,829,287 2,727,326 327,099 1,511,690 140,553 Total assets 19,094,992 12,533,014 7,476,673 17,585,626 7,587,149 64,277,454 LIABILITIES Accounts payable Accrued wages Accrued employee benefits Interfund payable 230,587 8,739,041 2,964,804 75,024 2,124,898 5,176 227,711 989,514 552,972 1,506,514 2,658,220 9,728,555 3,517,776 1,511,690 Total liabilities 11,934,432 0 75,024 2,130,074 3,276,711 17,416,241 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 291,689 329,968 106,016 0 0 727,673 FUND BALANCES Nonspendable Inventory Restricted for Debt service Child nutrition Other fund activities Assigned Unassigned 6,497,261 371,610 12,203,046 7,295,633 15,455,552 140,553 1,113,291 3,056,594 140,553 12,203,046 1,113,291 25,807,779 6,497,261 371,610 Total fund balances 6,868,871 12,203,046 7,295,633 15,455,552 4,310,438 46,133,540 Total liabilities, deferred inflows of resources, and fund balances 19,094,992 12,533,014 7,476,673 17,585,626 7,587,149 64,277,454 The accompanying notes are an integral part of these statements. 12 Bonneville Joint School District #93 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2020 Total fund balances - governmental funds Amounts reported for governmental activities in the Statement of Net Position are different because: 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. The net pension liability and the deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the Statement of Net Position: Net pension liability is $17,228,315, deferred inflows of resources related to pensions is $7,899,630 and deferred outflows of resources related to pensions is $9,065,536. 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 $(3,457,786), deferred inflows of resources related to PERSI sick leave is $199,855 and deferred outflows of resources related to PERSI sick leave is $695,089. Capital assets used in governmental activities are not current financial resources and therefore are not reported as assets in governmental funds. The cost of the assets is $225,032,547 and the accumulated depreciation is $85,080,728. 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 unearned in the funds. Deferred outflows and inflows of resources related to other post employment benefits are not current financial resources and therefore are not reported in the fund financial statements, but are reported on the Statement of Net Position. 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 (117,000,000) Accrued interest on the bonds (1,584,939) Compensated absences (267,675) OPEB obligation (3,778,339) Total net position - governmental activities 46,133,540 (13,145,034) (16,062,409) 3,953,020 139,951,819 727,673 (1,186,357) (122,630,953) 37,741,299 The accompanying notes are an integral part of these statements. 13 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bonneville Joint School District #93 Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Fiscal Year Ended June 30, 2020 All Total Debt Capital Construction Nonmajor Governmental General Service Projects 2018 Funds Funds REVENUES Property taxes 7,790,559 9,542,991 2,806,664 20,140,214 Penalties and interest on delinquent taxes 34,140 38,702 14,745 87,587 Earnings on investments 182,999 140,790 555,422 10,471 889,682 Food service 731,442 731,442 Rental 19,094 19,094 Other local 491,868 153,106 1,259,569 1,904,543 State apportionment Base 58,525,730 58,525,730 Transportation 2,899,283 2,899,283 Exceptional child 12,836 12,836 Benefits 7,903,351 7,903,351 Property tax replacement 147,863 100,159 248,022 Other state revenue 5,303,246 3,130,388 1,896,473 10,330,107 Federal grants and contracts 10,084,838 10,084,838 Total revenues 83,310,969 12,953,030 2,974,515 555,422 13,982,793 113,776,729 EXPENDITURES Current Instruction 48,584,578 133,375 4,495,171 53,213,124 Support services 13,079,618 273,849 4,956,150 18,309,617 Administration 6,723,627 26,909 11,995 6,762,531 Business operations 1,691,634 450,015 20,244 2,161,893 Operations 7,781,321 1,477,809 100,978 9,360,108 Transportation 3,526,878 466,534 1 3,993,413 Community services 90,939 4,054 94,993 Noninstructional 3,530,304 3,530,304 Debt service 10,667,651 10,667,651 Facility acquisition 237,867 15,323,166 368,602 15,929,635 Total expenditures 81,478,595 10,667,651 3,066,358 15,323,166 13,487,499 124,023,269 Revenues over (under expenditures) 1,832,374 2,285,379 (91,843) (14,767,744) 495,294 (10,246,540) The accompanying notes are an integral part of these statements. 14 0 0 Bonneville Joint School District #93 Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Fiscal Year Ended June 30, 2020 General OTHER FINANCING SOURCES (USES) Proceeds from sale of fixed assets Operating transfers, net (461,166) Debt Service Capital Projects 33,519 442,111 Construction 2018 All Total Nonmajor Governmental Funds Funds 33,519 19,055 0 Total other financing sources (uses) (461,166) 0 475,630 0 19,055 33,519 Revenues and other financing sources over (under) expenditures 1,371,208 2,285,379 383,787 (14,767,744) 514,349 (10,213,021) Fund balance - July 1, 2019 5,497,663 9,917,667 6,911,846 30,223,296 3,796,089 56,346,561 Fund balance - June 30, 2020 6,868,871 12,203,046 7,295,633 15,455,552 4,310,438 46,133,540 The accompanying notes are an integral part of these statements. 15 Bonneville Joint School District #93 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities For Fiscal Year Ended June 30, 2020 Total net change in fund balances - governmental funds: (10,213,021) Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report the effect of premiums, discounts, and similar items when debt is issued whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences. 6,753,620 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 expense. This is the amount by which capital outlays exceeded depreciation 9,742,011 and asset dispositions. 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 increased by $120,244 this year. 120,244 Vested employee benefits are reported in the governemental 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 outlfows and inflows in addition to the change in compensated absences are all differences. 811,842 Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the fund when it is due, and thus requires the use of current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest accrued, regardless of when it is due. The decrease in interest expense reported in the Statement of Activities is the net result of the decrease in accrued interest on bonds by $47,906. 47,906 Change in net assets of governmental activities 7,262,602 The accompanying notes are an integral part of these statements. 16 Bonneville Joint School District #93 Fiduciary Funds Statement of Fiduciary Net Position June 30, 2020 Agency Funds ASSETS Cash 1,472,018 Investments 21,030 Total assets 1,493,048 LIABILITIES Accounts payable 1,088 Due to student groups 1,491,960 Total liabilities 1,493,048 The accompanying notes are an integral part of these statements. 17 This page intentionally left blank. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. 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. 2. 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. 3. 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, 2020, as it is immaterial to the District. Complete financial information for the component unit may be obtained at the District’s administrative office. 4. 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 and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. 5. 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 general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. 18 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Debt Service Fund -The Debt Service Fund is used to account for the accumulation of resources and for the repayment of general long-term 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. Special Revenue Fund -The purpose of the Special Revenue Fund is to account for federal, state, and locally funded grants. 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. 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. Fiduciary Fund Types Agency Fund (School Activity Funds) -Activity Funds are monies collected principally 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. 6. 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. 19 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 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 capital leases are reported as other financing sources. The agency funds are accounted for on the accrual basis of accounting. 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. 7. 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 budget in 2020. 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. 8. 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. 20 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 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 are not rated and the District’s policy does not restrict them to rated investments. 9. 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. 10. Inventories. Supplies inventory consists of paper, food, new textbooks, 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. 11. Capital Assets. Capital assets, including land, buildings, improvements, and equipment assets are reported in the applicable governmental columns in the government-wide financial statements. 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 fair 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 21 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 12. 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. 13. 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. 14. 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. 15. 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 first item is a deferred charge on refunding that results from the difference in the carrying value of refunded debt and its reacquisition price and is amortized over the shorter of the life of the refunded or refunding debt. The District also 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 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. 22 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 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. 16. 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. 17. 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. 18. Fund Balance Flow Assumptions. 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. 19. 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 used only be 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. 23 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE A 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. 20. Risk 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. 21. Estimates. The preparation of financial statements in conformity with generally accepted accounting principles 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. NOTE B CASH AND INVESTMENTS At June 30, 2020, the carrying amount of District cash was $14,389,698 and the bank balance of the District’s deposits was as follows: Bank Balance Insured by Federal Depository Insurance 500,000 Insured by National Credit Union Share Insurance 250,000 Uninsured and uncollateralized 15,910,849 Totals 16,660,849 At June 30, 2020, the cost and fair market value of the District’s investments were as follows: Fair Market Average Deposit and investment type Cost Value Maturity Local Government Investment Pool -NAV 34,094,455 34,549,613 177 Days Total investments 34,094,455 34,549,613 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 are limited to 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. 24 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE B CASH AND INVESTMENTS, continued 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, 2020, $15,910,849 of the District’s deposits and certificates of deposit were exposed to custodial credit risk because it was uninsured and uncollateralized. Of the investments, $34,094,455 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 Comprehensive Annual Financial Report, a copy of which can be downloaded from www.sco.idaho.gov. NOTE C 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, 2020, balances of interfund amounts receivable or payable have been recorded. The interfund balances at June 30, 2020, were as follows: Receivable Payable General Fund 1,511,690 Construction 2018 5,176 Nonmajor Funds 1,506,514 Total 1,511,690 1,511,690 The General Fund transferred $85,055 to Child Nutrition and $442,111 to Plant Facilities as required by State law. The federal programs transferred $66,000 to the General Fund as budgeted for payment of indirect costs. NOTE D 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. 25 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE E CAPITAL ASSETS Following is a summary of the capital assets at June 30, 2020: Capital assets, not being depreciated Elementary Secondary Construction in progress Balance at June 30, 2019 3,039,416 3,026,265 4,577,354 Additions 14,926,477 Deletions (5,000) Transfers Balance at June 30, 2020 3,039,416 3,021,265 19,503,831 Total capital assets, not being depreciated 10,643,035 14,926,477 (5,000) 0 25,564,512 Capital assets, being depreciated Buildings Elementary Secondary Administration Total buildings 72,153,202 107,775,066 4,682,973 184,611,241 78,348 445,468 78,557 602,373 (138,190) (138,190) 0 72,093,360 108,220,534 4,761,530 185,075,424 Equipment Elementary Secondary Administration Total equipment 1,004,661 1,822,530 2,322,513 5,149,704 14,015 115,857 60,562 190,434 0 1,018,676 1,938,387 2,383,075 5,340,138 Vehicles 8,684,170 438,302 (69,999) 0 9,052,473 Total capital assets, being depreciated 198,445,115 1,231,109 (208,189) 0 199,468,035 Less accumulated depreciation for: Buildings Equipment Vehicles (69,001,292) (3,297,618) (6,579,432) (5,483,589) (378,138) (477,029) 66,371 69,999 (74,418,510) (3,675,756) (6,986,462) Total accumulated depreciation (78,878,342) (6,338,756) 136,370 0 (85,080,728) Total capital assets being depreciated, net 119,566,773 (5,107,647) (71,819) 0 114,387,307 Governmental activities capital assets, net 130,209,808 9,818,830 (76,819) 0 139,951,819 Depreciation expense was charged to the functions of the primary government as follows: Governmental activities Instruction 5,510,248 Operations 351,479 Transportation 477,029 Total depreciation expense – governmental activities 6,338,756 26 00 3,55,0005 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE F CONSTRUCTION COMMITMENTS During the year ended June 30, 2020, the District contracted with various contractors to do certain projects, revisions, and additions. The following construction contracts were in progress at June 30, 2020: Expenditures Remaining Original bid Average Recorded Construction Project plus changes % complete Currently obligation Middle School – New Construction 29,472,849 66.1% 19,503,831 9,969,018 Total 29,472,849 19,503,831 9,969,018 NOTE G GENERAL OBLIGATION BOND ISSUES The District had five general obligation bond issues (2012A, 2012C, 2016A, 2016B and 2018 Series) outstanding at the end of the year with interest rates ranging from 2.0 to 5.0 percent. The 2012A and 2012C bonds are scheduled to mature September 2031 and September 2026, respectively. The 2016A and 2016B bonds are scheduled to mature September 2033 and September 2028, respectively. The 2018 bonds are scheduled to mature September 2035. Future debt service requirements are as follows: Fiscal Year Ended June 30, Total Interest Principal 2021 9,019,300 5,374,300 3,645,000 2022 9,111,324 5,251,324 3,860,000 2023 9,171,624 5,091,624 4,080,000 2024 9,772,624 4,872,624 4,900,000 2025 10,503,000 4,608,000 5,895,000 2026-2030 60,993,514 17,748,514 43,245,000 2031-2035 53,294,300 6,059,300 47,235,000 2036 4,243,500 103,500 4,140,000 Total 166,109,186 49,109,186 117,000,000 Changes to bond principal payable and future interest payable are summarized as follows: 2012A 2012C 2016A 2016B 2018 Combined Principal Series Series Series Series Series Total Balances at July 1, 2019 11,780,000 9,090,000 49,950,000 20,775,000 30,555,000 122,150,000 Reductions 975,000 785,000 1,740,000 1,650,000 5,150,000 Balances at June 30, 2020 11,780,000 8,115,000 49,165,000 19,035,000 28,905,000 117,000,000 Interest Balances at July 1, 2019 6,480,650 1,836,075 23,099,075 4,953,650 18,255,937 54,625,387 Reductions 587,600 393,450 2,245,775 855,900 1,433,476 5,516,201 Balances at June 30, 2020 5,893,050 1,442,625 20,853,300 4,097,750 16,822,461 49,109,186 NOTE H 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, 2020, the limit for the District was 5% of $5,257,709,998 or $262,885,500. The Debt Service Fund had $12,196,129 available and the general obligation debt was $117,000,000 leaving a legal debt margin of $158,081,629. 27 Month June 30, Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE I CHANGES IN LONG-TERM LIABILITIES Following is a summary of the changes in long-term debt for the year ended June 30, 2020: Current Balance Balance Portion July 1, 2019 Additions Deductions June 30,2020 Balance Bonds payable 122,150,000 5,150,000 117,000,000 3,645,000 Premium on bonds 16,734,111 1,824,226 14,909,885 1,764,508 Total bonds/premium 138,884,111 6,974,226 131,909,885 5,409,508 OPEB 4,556,903 778,564 3,778,339 Employee benefits 222,497 45,178 267,675 267,675 Total 143,663,511 45,178 7,752,790 135,955,899 5,677,183 Payment 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. NOTE J LEASE OBLIGATIONS The District was obligated for the following leases categorized as operating leases subject to non-appropriation: Description of Date of Term of Future Monthly Minimum Lessor Leased Property Inception Lease Lease Amount Lease Payments Great American Copier 12/2016 48 99 594 Great American Copiers 3/2018 60 389 12,837 Great American Copiers 5/2018 5 years 8,634/yr 25,183 Great American Copiers 7/2018 5 years 9,849/yr 30,368 Great American Copiers 8/2018 60 960.40 36,495 CIT Copier 2/2019 60 165 7,260 CIT Copier 2/2019 60 68.77 3,026 Great American Copier 4/2019 60 99 4,554 Great American Copier 4/2019 60 119 5,474 Xerox Copier 10/2018 60 120 4,800 CIT Copier 8/2019 48 75 2,850 CIT Copier 8/2019 48 107 4,066 CIT Copier 8/2019 60 175 8,750 Total minimum lease payments 146,257 Total rental expense under the equipment and other operating leases for the year ended June 30, 2020, was $46,295. Minimum future lease payments under these operating leases as of June 30, 2020, for the succeeding years are: Fiscal Year Ended Total 2021 46,415 2022 45,821 2023 43,935 2024 9,736 2025 350 Total 146,257 28 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE K NON-MONETARY TRANSACTIONS The District received $345,817 USDA Commodities during the 2019-2020 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 L PAYROLL EXPENDITURES AND RELATED LIABILITIES Teacher contracts were signed for the period September 2019 through June 2020, to be paid over the twelve months of September 2019 through August 2020. The financial statements reflect the salary expense for this period. The accrued payroll reflects the final two months of these contracts. NOTE M OTHER POST-EMPLOYMENT BENEFITS (OPEB) 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, 2020, there were 1,035 active participants and 46 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 2020, the District contributed approximately $246,776 of the annual required contribution of $737,240. 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, 2020, and the total other post-employment benefit liability was determined by an actuarial valuation as of June 30, 2020. 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, 2020 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, 2020. Actuarial Cost Method Entry Age Normal Inflation 3.50% Salary Increases 3.75% Discount Rate 2.53% 29 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE M OTHER POST-EMPLOYMENT BENEFITS (OPEB) Health Cost Trend Rates Medical with vision trend is 7.4% from year ending June 30, 2020 then gradually decreasing to an ultimate rate of 3.8% for 2077 and beyond. Dental trend is 0.0% from year ending June 30, 2020, increasing to 2.9% in 2021, then gradually lowering to 2.0% for 2024 and beyond, as shown in the June 30, 2020, valuation report. Retirement Based on PERSI with 19% of males and 10% of females eligible at age 55, 30% of males and 26% of females first year eligible at age 60 and 36% of males and 49% of females eligible at age 65. Turnover 40% of future retirees are assumed to elect medical coverage and 70% of the future retirees who elect medical coverage and are married are assumed to elect spousal coverage as well. Mortality Mortality is assumed to follow the RP2000 Healthy Combined Mortality Table adjusted with generational mortality adjustments using Scale AA, set back three years for both males and females. Retiree Premiums The retiree contributions are a weighted average of all retiree contributions for the period July 1, 2019, to June 30, 2020. The cost of Medical and Prescription was $9,155 for a retiree or surviving spouse, and $5,997 for a surviving spouse. For Dental it was $482 for a retiree or surviving spouse, and $481 for a spouse. For Vision it was $97 for a retiree or surviving spouse, and $56 for a spouse. Total OPEB Liability June 30, 2020 Total OPEB liability 3,778,339 Covered employee payroll 43,470,000 Total OPEB liability as a % of covered employee payroll 8.69% 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* 2.53% *The discount rate was based on the average of multiple 6/30/20 municipal bond rate sources. Changes since Prior Valuation  The interest/discount rate based on the average of multiple 6/30/2020 municipal bond rate sources  Decrements reflected October 2019 Annual Report assumptions for PERSI  Participation rate assumption adjusted to 40%.  Revised Aging Factors based on 2014 Society of Actuaries study 30 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE M OTHER POST-EMPLOYMENT BENEFITS (OPEB), continued Changes in Total OPEB Liability Increase (Decrease) Changes in total OPEB liability Total OPEB Liability Balance as of June 30, 2019 4,556,903 Changes for the year: Service cost 513,403 Interest on total OPEB liability 168,399 Differences in experience (512,762) Changes of assumptions or other inputs (700,828) Benefit payments (246,776) Balance as of June 30, 2020 3,778,339 Sensitivity Analysis The following presents the total OPEB liability of the school district, calculated using the discount rate of 2.53%, as well as what the school district’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (1.53%) or 1 percentage point higher (3.53%) than the current rate. 1% Decrease Discount Rate 1% Increase 1.53% 2.53% 3.53% Total June 30, 2020, OPEB liability 4,015,695 3,778,339 3,547,774 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. Current 1% Decrease Trend Rate 1% Increase Total June 30, 2020, OPEB liability 3,383,248 3,778,339 4,241,950 July 1, 2019 to OPEB Expense June 30, 2020 Service cost 513,403 Interest on total OPEB liability 168,399 Recognition of Deferred Inflows/Outflows of Resources Difference between expected and actual experience (19,418) Recognition of assumption changes or inputs 21,336 Benefit payments (47,249) OPEB expense 636,471 31 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE M OTHER POSTEMPLOYMENT BENEFITS (OPEB), continued 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 (7,542) (259,465) 158,691 Changes of assumptions or other inputs 137,467 June 30, 2019 14.53 9,460 128,007 Differences between expected and actual experience/changes in assumptions (1,213,590) June 30, 2020 15.34 (1,213,590) Total (1,191,981) 1,918 (1,473,055) 286,698 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: 2021 (77,175) 2022 (77,175) 2023 (77,175) 2024 (77,175) 2025 (77,175) Thereafter (800,482) *Note that additional future deferred inflows and outflows of resources may impact these numbers. NOTE N 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. 32 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE N PERSI SICK LEAVE INSURANCE RESERVE FUND, continued Employer Contributions The contribution rate for employers are set by statute at .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 $316,207 for the year ended June 30, 2020 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, 2020, the District reported an asset for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2019, 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, 2019, the District’s proportion was 3.6101186 percent. For the year ended June 30, 2019, the District recognized OPEB expense offset of $529,995. The $316,207 reported as deferred outflows of resources related to OPEBs resulting from Employer contributions subsequent to the measurement date will be recognized as an increase of the net OPEB asset in the year ending June 30, 2020. At June 30, 2020, 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 Inflows of Resources Differences between expected and actual experience Changes in assumptions or other inputs Net difference between projected and actual earnings on OPEB plan investments Changes in the employer’s proportion and differences between the employer’s contribution and the employer’s proportionate contributions District contributions subsequent to the measurement date Total 366,078 12,804 316,207 695,089 199,855 - 199,855 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, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.25% Salary increases 3.75% Salary inflation 3.75% Investment rate of return 7.05% 33 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE N PERSI SICK LEAVE INSURANCE RESERVE FUND, continued 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 Long-Term Expected Nominal Rate Long-Term Expected Real Rate of Asset Class Target Allocation of Return (Arithmetic) Return (Arithmetic) Core Fixed Income Barclays Aggregate 30.00% 3.05% 0.80% Broad U.S. Equity Wilshire 5000 / Russell 3000 55,00% 8.30% 6.05% Developed Foreign Equities MSCI EAFE/World ex US 15.00% 8.45% 6.20% Assumed Inflation – Mean 2.25% 2.25% Assumed Inflation – Standard Deviation 1.50% 1.50% Portfolio Arithmetic Mean Return 6.75% 4.5% Portfolio Standard Deviation 12.54% 12.54% Portfolio Long-Term (Geometric) Expected Rate of Return 6.13% 3.77% Assumed Investment Expenses 0.40% 0.40% Portfolio Long-term (Geometric) Expected Rate of Return, Net of Investment 5.73% 3.37% Expenses Portfolio Long-term Expected Real Rate of Return, Net of Investment Expenses 4.19% Portfolio Standard Deviation 14.16% Valuation Assumptions Chosen by PERSI Board Long-term Expected Real Rate of Return, Net of Investment Expenses 4.05% Assumed Inflation 3.00% Long-Term Expected Nominal Rate of Return, Net of Investment Expenses 7.05% 34 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE N PERSI SICK LEAVE INSURANCE RESERVE FUND, continued Discount Rate The discount rate used to measure the total OPEB liability was 7.05%. 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 7.05 percent, 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 (6.05 percent) or 1-percentage-point higher (8.05 percent) than the current rate: Employer’s proportionate share of the net OPEB liability (asset) 1% Decrease (6.05%) (4,395,250) Current Discount Rate (7.05%) (3,457,786) 1% Increase (8.05%) (4,690,349) 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, 2020, 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. NOTE O POST RETIREMENT BENEFITS The District funds post-retirement benefits on a current basis through PERSI. The District paid 1.16% of the wages covered by PERSI to the State until January of 2020 for the 2019-2020 school year. At January 1, 2020, the required contribution rate went to 0.0% for the remainder of the school year and is anticipated to remain at 0% for the 2021 fiscal year. At the time of retirement, a sum equal to one-half of the monetary value of unused sick leave, calculated at the rate of pay at that time, is transferred from the sick leave account to the employee’s retirement account. This money shall then be used to pay premiums for health, accident, dental, and life insurance. 35 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE P PENSION PLAN Plan Description 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 Member and employer contributions paid to the Base Plan are set by statute and are established as a percent of covered compensation and earnings from investments. Contribution rates are determined by the PERSI Board within limitations, as defined by state law. The Board may make periodic changes to employer and employee contribution rates (expressed as percentages of annual covered payroll) if current rates are actuarially determined to be inadequate or in excess to accumulate sufficient assets to pay benefits when due. The contribution rates for employees are set by statute at 60% of the employer rate. As of June 30, 2019, it was 6.79% for general employees and 8.36% for police and firefighters. The employer contribution rate is set by the Retirement Board and was 11.32% for general employees and 11.66 % for police and firefighters. The District’s employee rate increased to 7.14% and the employer rate increased to 11.94% for the year ended June 30, 2020. The District’s contributions were $6,478,608 for the year ended June 30, 2020. 36 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE P PENSION PLAN, continued Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2020, the District reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The District 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, 2019, the District’s proportion was 1.5093067 percent. For the year ended June 30, 2020, the District recognized pension expense of $5,714,637. At June 30, 2020, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience 1,601,107 2,030,443 Changes in assumptions or other inputs 958,337 Net difference between projected and actual earnings on pension plan investments 5,869,187 Changes in the employer’s proportion and differences between the employer’s contribution and the employer’s proportionate contributions 27,484 - District contributions subsequent to the measurement date 6,478,608 Total 9,065,536 7,899,630 $6,478,608 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, 2021. 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, 2018, the beginning of the measurement period ended June 30, 2019, is 4.8 years and 4.8 years for the measurement period ended June 30, 2019. 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 ended June 30: 2020 (714,633) 2021 (2,730,178) 2022 (1,324,255) 2023 (543,636) 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. 37 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE P PENSION PLAN, continued The total pension liability in the June 30, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.00% Salary increases 13.75% Salary inflation 3.75% Investment rate of return 7.05%, net investment expenses Cost-of-living adjustments 1.00% Mortality rates were based on the RP – 2000 combined table for healthy males or females as appropriate with the following offsets:  Set back 3 years for teachers  No offset for male fire and police  Forward one year for female fire and police  Set back one year for all general employees and all beneficiaries An experience study was performed for the period July 1, 2013, through June 30, 2017, which reviewed all economic and demographic assumptions including mortality. The Total Pension Liability as of June 30, 2019 is based on the results of an actuarial valuation date of July 1, 2019. 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. Capital Market Assumptions Long-Term Long-Term Expected Nominal Expected Real Target Rate of Return Rate of Return Asset Class Allocation (Arithmetic) (Arithmetic) Core Fixed Income Broad US Equities Developed Foreign Equities 30.00% 55.00% 15.00% 3.05% 8.30% 8.45% .8% 6.05% 6.20% Assumed Inflation – Mean Assumed inflation – Standard Deviation 2.25% 1.50% 2.25% 1.50% Portfolio Arithmetic Mean Return Portfolio Standard Deviation 6.75% 12.54% 4.50% 12.54% 38 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE P PENSION PLAN, continued Long-Term Expected Nominal Rate Long-Term Expected Real Rate of Asset Class Target Allocation of Return (Arithmetic) Return (Arithmetic) Core Fixed Income Barclays Aggregate 30.00% 3.05% 0.80% Broad U.S. Equity Wilshire 5000 / Russell 3000 55,00% 8.30% 6.05% Developed Foreign Equities MSCI EAFE/World ex US 15.00% 8.45% 6.20% Assumed Inflation – Mean 2.25% 2.25% Assumed Inflation – Standard Deviation 1.50% 1.50% Portfolio Arithmetic Mean Return 6.75% 4.5% Portfolio Standard Deviation 12.54% 12.54% Portfolio Long-Term (Geometric) Expected Rate of Return 6.13% 3.77% Assumed Investment Expenses 0.40% 0.40% Portfolio Long-term (Geometric) Expected Rate of Return, Net of Investment 5.73% 3.37% Expenses Portfolio Long-term Expected Real Rate of Return, Net of Investment Expenses 4.19% Portfolio Standard Deviation 14.16% Valuation Assumptions Chosen by PERSI Board Long-term Expected Real Rate of Return, Net of Investment Expenses 4.05% Assumed Inflation 3.00% Long-Term Expected Nominal Rate of Return, Net of Investment Expenses 7.05% Discount Rate The discount rate used to measure the total pension liability was 7.05%. 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 pension plans’ net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. The long-term expected rate of return was determined net of pension plan investment expense but without reduction for pension 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 pension liability calculated using the discount rate of 7.05 percent, as well as what the employer’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.05 percent) or 1-percentage-point higher (8.05 percent) than the current rate: Current 1% Discount 1% Decrease Rate Increase (6.05%) (7.05%) (8.05%) Employer’s proportionate share of the net pension liability (asset) 52,036,152 17,228,315 (11,556,654) 39 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2020 NOTE P PENSION PLAN, continued 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. Payables to the pension plan At June 30, 2020, 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 Q COMMITMENTS AND CONTINGENCIES The District is involved in claims arising from the ordinary course of operations. Among these matters, a suit has been filed against Pocatello and Bonneville school districts, namely Zeyen v. ALL DISTRICTS AND CHARTER SCHOOLS. The plaintiff asserts that fees charged by all public schools throughout the state of Idaho are unconstitutional. The U.S District Court has not yet certified this matter as a class action and discovery has not yet commenced. The estimated possible loss to the District for these claims is uncertain, as the likelihood of an unfavorable outcome is unknown. No accrual has been reflected in the financial statements for these matters. In the opinion of the District’s management, the ultimate disposition of these matters will not have a material adverse effect on the District’s financial condition. The District entered into an agreement in April for services related to large renovations at Ammon Elementary for approximately $115,000. Construction on this project did not commence until after year end. NOTE R SUBSEQUENT EVENTS Management of the District evaluated subsequent events through October 21, 2020, which was the date the financial statements were available to be issued. Due to continuing effects of the novel coronavirus (COVID-19) pandemic, the District's budget for fiscal year 2021 has been negatively impacted. Additional costs have been incurred for transitioning to new learning methodologies and adapting current facilities resulting in a negative impact to the District. The District cannot reasonably estimate the future impact of the economic changes as a result of the pandemic. 40 REQUIRED FINANCIAL INFORMATION Bonneville Joint School District #93 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance -Budget to Actual- Fiscal Year Ended June 30, 2020 Original Favorable & Final (Unfavorable) REVENUES Budget Actual Variance Property taxes 7,955,000 7,790,559 (164,441) Penalties and interest on delinquent taxes 25,000 34,140 9,140 Earnings on investments 70,000 182,999 112,999 Tuition 55,000 33,791 (21,209) Rental 15,000 19,094 4,094 Other local 648,769 458,077 (190,692) State apportionment Base 58,029,458 58,525,730 496,272 Transportation 2,735,766 2,899,283 163,517 Exceptional child 50,000 12,836 (37,164) Benefits 7,900,634 7,903,351 2,717 Property tax replacement 248,117 147,863 (100,254) Other state revenue 5,085,480 5,303,246 217,766 Total revenues 82,818,224 83,310,969 492,745 EXPENDITURES Instruction Elementary 21,688,265 21,195,622 492,643 Secondary 20,482,422 20,419,241 63,181 Alternative school 728,483 709,116 19,367 Special education program 4,781,109 4,241,442 539,667 Special education preschool program 465,165 345,643 119,522 Gifted and talented 318,612 291,354 27,258 Interscholastic program 1,180,632 1,155,778 24,854 School activity 229,606 226,382 3,224 Total instruction 49,874,294 48,584,578 1,289,716 Support services Attendance, guidance, and health 2,715,937 2,800,771 (84,834) Special education support services 4,259,495 5,457,925 (1,198,430) Instructional improvement 1,958,424 2,282,530 (324,106) Educational media 764,598 830,676 (66,078) Instruction related technology 1,812,262 1,707,716 104,546 Total support services 11,510,716 13,079,618 (1,568,902) See Independent Auditor's Report. 41 Bonneville Joint School District #93 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance -Budget to Actual- Fiscal Year Ended June 30, 2020 Original Favorable & Final (Unfavorable) EXPENDITURES, continued Budget Actual Variance Administration Board of Education 354,841 322,048 32,793 District administration 308,413 314,172 (5,759) School administration 6,289,882 6,087,407 202,475 Total administration 6,953,136 6,723,627 229,509 Business Administrative Services Business operations 1,640,312 1,518,283 122,029 Central services 202,118 153,725 48,393 Administrative Technology Services 40,000 19,626 20,374 Total business administrative services 1,882,430 1,691,634 190,796 Operations Building care (custodial) 5,101,503 4,736,366 365,137 Maintenance 2,778,146 2,656,130 122,016 Security 447,836 388,825 59,011 Total operations 8,327,485 7,781,321 546,164 Transportation 3,863,300 3,526,878 336,422 Community service 127,792 90,939 36,853 Total expenditures 82,539,153 81,478,595 1,060,558 Revenues over (under) expenditures 279,071 1,832,374 1,553,303 OTHER FINANCING SOURCES (USES) Operating transfers, net (467,111) (461,166) 5,945 Contingency - budget only (4,317,931) 4,317,931 Revenues and other financing sources over (under) expenditures (4,505,971) 1,371,208 5,877,179 Fund balance - July 1, 2019 5,497,663 Fund balance - June 30, 2020 6,868,871 See Independent Auditor's Report. 42 Bonneville Joint School District #93 Required Supplementary Information Fiscal Year Ended June 30, 2020 Schedule of Changes in Total OPEB Liability and Related Ratios As of the measurement date of June 30, 2020 2020 2019 2018 Total OPEB Liability Service cost 513,403 512,500 456,245 Interest on total OPEB liabilty 168,399 147,380 149,723 Differences in experience (512,762) -(298,301) Effect of assumption changes or inputs (700,828) 137,467 182,443 Expected benefit payments (246,776) (197,261) (176,160) Net change in total OPEB liability (778,564) 600,086 313,950 Total OPEB liability, beginning 4,556,903 3,956,817 3,642,867 Total OPEB liability, ending 3,778,339 4,556,903 3,956,817 Covered valuation payroll 43,470,000 45,056,550 43,428,000 Total OPEB liability as a % of covered valuation payroll 8.69% 10.11% 9.11% * 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 Independent Auditor's Report. 43 Bonneville Joint School District #93 Required Supplementary Information Fiscal Year Ended June 30, 2020 Schedule of Employer's Share of Net OPEB Asset PERSI-Sick Leave Plan Last 10 - Fiscal Years* 2019 2018 2017 Employer's portion of net OPEB asset 3.6101186% 3.3965902% 3.1983609% Employer proportionate share of the net OPEB asset 3,457,786 2,817,300 2,455,155 Employer's covered-employee payroll 51,263,509 45,756,462 40,809,784 Employer's proportional share of the net OPEB asset as percentage of its covered-employee payroll 6.745% 6.157% 6.016% Plan fiduciary net position as a percentage of the total OPEB asset 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. Data reported is measured as of June 30, 2019 (measurement date). Schedule of Employer Contribution PERSI-Sick Leave Plan Last 10-Fiscal Years * 2020 2019 2018 Statutorily required contribution 157,357 594,657 530,775 Contributions in relation to the statutorily required contribution 316,207 592,204 529,753 Contribution (deficiency) excess 158,851 (2,453) (1,022) Employer's covered payroll 54,260,793 51,263,509 45,756,462 Contributions as a percentage of covered payroll 0.580% 1.160% 1.160% * 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. Data reported is measured as of June 30, 2020 (reporting date). See Independent Auditor's Report. 44 Bonneville Joint School District #93 Required Supplementary Information Fiscal Year Ended June 30, 2020 Schedule of Employer's Share of Net Pension Liability PERSI-Base Plan Last 10-Fiscal Years * 2019 2018 2017 2016 2015 2014 Employer's portion of net pension liability 1.50930670% 1.41939760% 1.31157080% 1.30930460% 1.313797300% 1.289265200% Employers proportionate share of the net pension liability 17,228,315 20,936,362 20,615,640 26,541,615 17,300,573 9,491,010 Employer's covered payroll 51,263,509 45,756,462 40,809,784 38,322,048 36,799,863 34,937,428 Employer's proportional share of the net pension liability as a percentage of its covered payroll 33.61% 45.76% 50.52% 69.26% 47.01% 27.17% Plan fiduciary net position as a percentage of the total pension liability 93.79% 91.69% 90.68% 87.26% 91.38% 94.95% * GASB Statement No. 68 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. Data reported is measured as of June 30, 2019 (measurement date). Schedule of Employer Contributions PERSI-Base Plan Last 10-Fiscal Years * 2020 2019 2018 2017 2016 2015 Statutorily required contribution 6,478,739 5,803,029 5,179,631 4,619,668 4,338,056 4,165,744 Contributions in relation to the statutorily required contribution 6,478,608 5,803,027 5,179,635 4,619,665 4,338,975 4,165,658 Contribution (deficiency) excess (131) (2) 4 (3) 919 (86) Employer's covered payroll 54,260,793 51,263,509 45,756,462 40,809,784 38,322,048 36,799,863 Contributions as a percentage of covered-payroll 11.9398% 11.3200% 11.3200% 11.3200% 11.3224% 11.3198% * GASB Statement No. 68 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. Data reported is measured as of June 30, 2020 (reporting date). See Independent Auditor's Report. 45 Bonneville Joint School District #93 Notes to Required Supplementary Information Fiscal Year Ended June 30, 2020 NOTE A BUDGET ADOPTION Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the General Fund. All annual appropriations lapse at year end. See Independent Auditor's Report. 46 This page intentionally left blank. OTHER FINANCIAL INFORMATION CARES 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bonneville Joint School District #93 All Nonmajor Funds Combining Balance Sheet June 30, 2020 Public Idaho Improving Perkins III Supporting All Child Federal Special Driver's Professional School Substance Basic Migrant IDEA IDEA Professional Effective Construction Nonmajor Nutrition Forest E-rate Projects Ed Technical Technology Abuse Programs CARES Education School-Age Preschool Medicaid Title IV Technical Title III Instruction 2016 Funds ASSETS Cash and investments 1,324,748 161,578 93,630 321,653 33,934 932,340 984,064 300,358 273,953 4,426,258 Federal grants/contracts 159,081 4,125 541,184 148,919 16,277 361,569 25,426 1,273,083 123,076 18,311 56,275 2,727,326 Other receivables 0 292,687 325 293,012 Supplies inventory Total assets 140,553 1,624,382 161,578 93,630 321,653 38,059 932,340 984,064 300,358 541,184 148,919 16,277 361,569 25,426 1,565,770 0 123,076 18,311 56,275 274,278 140,553 7,587,149 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable 126,165 0 0 68 0 3,403 758 0 12,595 39,677 1,681 1,032 0 1,822 0 1,964 22 3,107 35,417 227,711 Accrued wages 152,495 342 7,733 195,551 6,439 142,802 3,857 480,295 989,514 Accrued employee benefits 91,878 64 1,581 62,330 0 2,888 102,153 3,639 288,439 0 552,972 Interfund payable Total liabilities 370,538 0 0 68 406 12,717 758 0 270,708 541,184 109,242 148,919 5,269 16,277 115,582 361,569 17,930 25,426 795,214 1,565,770 0 121,112 123,076 18,289 18,311 53,168 56,275 35,417 1,506,514 3,276,711 FUND EQUITY Nonspendable Restricted Total fund equity Total liabilities and fund equity 140,553 1,113,291 1,253,844 1,624,382 161,578 161,578 161,578 93,630 93,630 93,630 321,585 321,585 321,653 37,653 37,653 38,059 919,623 919,623 932,340 983,306 983,306 984,064 300,358 300,358 300,358 0 541,184 0 148,919 0 16,277 0 361,569 0 25,426 0 1,565,770 0 0 0 123,076 0 18,311 0 56,275 238,861 238,861 274,278 140,553 4,169,885 4,310,438 7,587,149 See Independent Auditor's Report. 47 CARES 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bonneville Joint School District #93 All Nonmajor Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance Fiscal Year Ended June 30, 2020 Public Idaho Improving Perkins III Supporting All Child Federal Special Driver's Professional School Substance Basic Migrant IDEA IDEA Professional Effective Construction Nonmajor Nutrition Forest E-rate Projects Ed Technical Technology Abuse Programs CARES Education School-Age Preschool Medicaid Title IV Technical Title III Instruction 2016 Funds REVENUES Earnings on investments 2,906 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7,565 10,471 Food service 731,442 731,442 Other local 1,345 81,976 29,444 12,350 0 1,134,454 1,259,569 Other state revenue 4,125 588,379 1,148,034 155,935 1,896,473 Federal grants and contracts 2,929,429 41,499 0 1,493,842 148,919 63,716 2,015,769 68,975 2,708,788 151,224 123,076 56,561 283,040 10,084,838 Total revenues 3,665,122 41,499 81,976 29,444 16,475 588,379 1,148,034 155,935 1,493,842 148,919 63,716 2,015,769 68,975 3,843,242 151,224 123,076 56,561 283,040 7,565 13,982,793 EXPENDITURES Instruction Elementary 33,688 (1) 1,083,984 47,922 0 151,224 9,448 1,326,265 Secondary 14,575 12,370 26,871 46,306 38,645 138,767 Special education program 0 1237846 1139551 2377397 Special ed preschool program 0 68,975 138,884 207,859 School activity 5,932 0 5,932 Summer school 676 78,739 8,923 88,338 Vocational 236,132 0 114,481 350,613 Support services Attendance, guidance, and health 8,308 40,296 54,793 103,397 Special ed support services 777,923 2,564,807 3,342,730 Instructional improvement 17,487 1,962 0 0 264,250 0 0 0 8,468 283,040 575,207 Educational media 8,092 8,092 Instructional related technology 286,639 318 12,046 598,041 6,690 14,395 8,595 926,724 School administration 11,995 11,995 Business Administrative Services 36 20,208 0 20,244 Operations 3,136 12,759 85,083 100,978 Transportation 0 1 0 1 Community services 4,054 4,054 Noninstructional services 3,523,678 6,626 0 3,530,304 Facility acquisition 368,602 368,602 Total expenditures 3,523,678 5,932 286,639 88,688 12,371 274,894 618,249 85,082 1,468,842 148,919 63,716 2,015,769 68,975 3,843,242 151,224 123,076 56,561 283,040 368,602 13,487,499 Revenues over (under) expenditures 141,444 35,567 (204,663) (59,244) 4,104 313,485 529,785 70,853 25,000 0 0 0 0 0 0 0 0 0 (361,037) 495,294 OTHER FINANCING SOURCES (USES) Net transfers 44,055 (25,000) 19,055 Total other financing sources 44,055 0 0 0 0 0 0 0 (25,000) 0 0 0 0 0 0 0 0 0 0 19,055 Revenues and other financing sources over (under) expenditures and other financing sources (uses) 185,499 35,567 (204,663) (59,244) 4,104 313,485 529,785 70,853 (361,037) 514,349 Fund balance - July 1, 2019 1,068,345 126,011 298,293 380,829 33,549 606,138 453,521 229,505 0 0 0 0 0 0 0 0 0 0 599,898 3,796,089 Fund balance - June 30, 2020 1,253,844 161,578 93,630 321,585 37,653 919,623 983,306 300,358 0 0 0 0 0 0 0 0 0 0 238,861 4,310,438 See Independent Auditor's Report. 48 This page intentionally left blank. Bonneville Joint School District #93 All Agency Funds Combining Schedule of Changes in Assets and Liabilities Fiscal Year Ended June 30, 2020 Balance Balance ASSETS June 30, 2019 Receipts Disbursements June 30, 2020 Cash Bonneville High School 299,035 945,384 993,133 251,286 Hillcrest High School 353,675 769,420 760,168 362,927 Thunder Ridge High School 187,287 7,497 8,666 186,118 Rocky Mountain Middle School 29,124 104,797 103,190 30,731 Sandcreek Middle School 214,251 946,076 924,408 235,919 Lincoln High School 30,226 192,697 185,573 37,350 Ammon Elementary School 15,834 156,547 141,769 30,612 Bridgewater Elementary 16,451 12,007 10,330 18,128 Cloverdale Elementary School 5,497 13,744 9,835 9,406 Discovery Elementary 31,332 14,264 17,356 28,240 Fairview Elementary School 12,290 53,906 44,086 22,110 Hillview Elementary School 25,663 41,735 38,664 28,734 Falls Valley Elementary School 17,397 14,866 12,832 19,431 Iona Elementary School 36,614 17,555 9,928 44,241 Mountain Valley Elementary 20,086 35,064 27,295 27,855 Rimrock Elementary School 9,914 33,474 21,756 21,632 Summit Hills Elementary School 9,915 69,831 56,379 23,367 Technical Careers High School 40,953 20,456 14,676 46,733 Tiebreaker Elementary School 16,729 13,844 7,955 22,618 Ucon Elementary School 1,575 11,932 8,272 5,235 Woodland Hills Elementary School 19,589 36,711 36,955 19,345 Total cash 1,393,437 3,511,807 3,433,226 1,472,018 Investments Bonneville High School Hillcrest High School Thunder Ridge High School Rocky Mountain Middle School 20,916 114 21,030 Sandcreek Middle School Lincoln High School Ammon Elementary School Bridgewater Elementary Cloverdale Elementary School Discovery Elementary Fairview Elementary School Hillview Elementary School Falls Valley Elementary School Iona Elementary School Mountain Valley Elementary Rimrock Elementary School Summit Hills Elementary School Technical Careers High School Tiebreaker Elementary School Ucon Elementary School Woodland Hills Elementary School Total investments 20,916 114 -21,030 Total assets 1,414,353 3,511,921 3,433,226 1,493,048 See Independent Auditor's Report. 49 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Bonneville Joint School District #93 All Agency Funds Combining Schedule of Changes in Assets and Liabilities Fiscal Year Ended June 30, 2020 Balance Balance LIABILITIES June 30, 2019 Increases Decreases June 30, 2020 Accounts payable Bonneville High School (72) 772 700 Hillcrest High School 57 37 20 Thunder Ridge High School 5 5 Rocky Mountain Middle School 7,463 7,344 119 Sandcreek Middle School 599 554 45 Lincoln High School 1,226 1,216 10 Ammon Elementary School 68 68 Bridgewater Elementary 111 111 Cloverdale Elementary School 5,150 5,150 Discovery Elementary 926 926 Fairview Elementary School 74 73 1 Hillview Elementary School 590 590 Falls Valley Elementary School 7 7 Iona Elementary School 171 171 Mountain Valley Elementary 194 180 14 Rimrock Elementary School (19) 29 10 Summit Hills Elementary School 257 239 18 Technical Careers High School 411 273 138 Tiebreaker Elementary School 82 82 Ucon Elementary School 12 12 Woodland Hills Elementary School 1,082 1,081 1 Total accounts payable 18,382 813 18,107 1,088 Due to student groups Bonneville High School 299,107 944,612 993,133 250,586 Hillcrest High School 353,618 769,420 760,131 362,907 Thunder Ridge High School 187,287 7,492 8,666 186,113 Rocky Mountain Middle School 42,577 104,911 95,846 51,642 Sandcreek Middle School 213,652 946,076 923,854 235,874 Lincoln High School 29,000 192,697 184,357 37,340 Ammon Elementary School 15,766 156,547 141,701 30,612 Bridgewater Elementary 16,340 12,007 10,219 18,128 Cloverdale Elementary School 347 13,744 4,685 9,406 Discovery Elementary 30,406 14,264 16,430 28,240 Fairview Elementary School 12,216 53,906 44,013 22,109 Hillview Elementary School 25,073 41,735 38,074 28,734 Falls Valley Elementary School 17,397 14,859 12,832 19,424 Iona Elementary School 36,443 17,555 9,757 44,241 Mountain Valley Elementary 19,892 35,064 27,115 27,841 Rimrock Elementary School 9,933 33,445 21,756 21,622 Summit Hills Elementary School 9,658 69,831 56,140 23,349 Technical Careers High School 40,542 20,456 14,403 46,595 Tiebreaker Elementary School 16,647 13,844 7,873 22,618 Ucon Elementary School 1,563 11,932 8,260 5,235 Woodland Hills Elementary School 18,507 36,711 35,874 19,344 Total due to student groups 1,395,971 3,511,108 3,415,119 1,491,960 Total liabilities 1,414,353 3,511,921 3,433,226 1,493,048 See Independent Auditor's Report. 50 Bonneville Joint School District #93 Schedule of Taxes Receivable Fiscal Year Ended June 30, 2020 Unearned balance at July 1, 2019 ADDITIONS 2019 Roll charges Subsequent additions and cancellations Total additions DEDUCTIONS Collections received Current amount due on taxes collected by the counties Total deductions Unearned balance at June 30, 2020 Total 248,072 7,878,361 (33,913) 7,844,448 5,076,533 2,724,298 7,800,831 291,689 General Fund 2019 0 2018 and prior 248,072 7,878,361 (8,061) 7,870,300 (25,852) (25,852) 4,950,704 2,713,965 7,664,669 125,829 10,333 136,162 205,631 86,058 See Independent Auditor's Report. 51 Bonneville Joint School District #93 Schedule of Taxes Receivable Fiscal Year Ended June 30, 2020 Debt Service Fund Capital Projects Fund 2018 2018 Total 2019 and prior Total 2019 and prior 249,413 0 249,413 109,944 0 109,944 9,658,844 9,658,847 2,828,128 2,828,129 (35,300) (9,883) (25,417) (25,393) (2,893) (22,500) 9,623,544 9,648,964 (25,417) 2,802,735 2,825,236 (22,500) 6,177,504 6,045,190 132,314 1,821,932 1,770,106 51,826 3,365,485 3,356,268 9,217 984,731 980,854 3,877 9,542,989 9,401,458 141,531 2,806,663 2,750,960 55,703 329,968 247,506 82,465 106,016 74,276 31,741 See Independent Auditor's Report. 52 This page intentionally left blank. Annual Federal Compliance Section Bonneville Joint School District #93 June 30, 2020 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 the auditing standards generally accepted in the United States and the standards applicable to the financial audits contained in the 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, 2020, and the related notes to the financial statements, which collectively comprise Bonneville Joint School District #93’s basic financial statements, and have issued our report thereon dated October 21, 2020. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the District’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 opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Bonneville Joint School District #93’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’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 combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether Bonneville Joint School District #93’s financial statements are free of 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. 53 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 entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Wipfli LLP CPAs and Consultants Idaho Falls, Idaho October 21, 2020 54 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Board of Trustees Bonneville Joint School District #93 Idaho Falls, Idaho Report on Compliance for Each Major Federal Program We have audited Bonneville Joint School District #93’s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on the Bonneville Joint School District #93’s major federal program for the year ended June 30, 2020. Bonneville Joint School District #93’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its major federal program. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for Bonneville Joint School District #93’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Bonneville Joint School District #93’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for its major federal program. However, our audit does not provide a legal determination of the District’s compliance. Opinion on Each Major Federal Program In our opinion, the District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. 55 Report on Internal Control over Compliance Management of Bonneville Joint School District #93 is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Bonneville Joint School District #93’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal programs and to test and report on internal control over compliance in accordance with Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Bonneville Joint School District #93’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Wipfli LLP CPAs and Consultants Idaho Falls, Idaho October 21, 2020 56 Bonneville Joint School District #93 Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2020 SECTION I -SUMMARY OF AUDITORS’ RESULTS Financial Statements Type of auditor’s report issued: Unmodified. Internal control over financial reporting:  Material weakness (es) identified? Yes X No  Significant deficiency (ies) identified that are not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs:  Material weakness (es) identified? Yes X No  Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes X None reported Type of auditor’s report issued on compliance for major programs: Unmodified. Any audit findings disclosed that are required to be reported in accordance with Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)? Yes X No Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster 84.010 Title I 10.553/10.555/10.559 Child Nutrition Cluster Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? Yes X No 57 Bonneville Joint School District #93 Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2020 SECTION II -FINDINGS -FINANCIAL STATEMENT AUDITS NONE SECTION III -FINDINGS AND QUESTIONED COSTS -MAJOR FEDERAL AWARD PROGRAMS AUDIT NONE 58 Entity Identifying Education: Bonneville Joint School District #93 Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2020 Federal Grantor / Pass-Through Grantor / Program Title Federal CFDA Number Pass-Through Entity Identifying Number Expenditures United States Department of Education Passed Through Idaho State Department of Education: Title I Grants to Local Educational Agencies COVID-19 – Elementary and Secondary School Emergency Relief Migrant Education -Basic State Grant Program English Language Acquisition Supporting Effective Instruction Student Support and Academic Enrichment 84.010 84.425d 84.011 84.365 84.367 84.424 S010A180012 S010A190012 S011A180012 S011A190012 S365A180012 S365A190012 S367A180011 S367A190011 S424A190013 291,014 1,202,827 148,919 14,368 49,347 11,525 45,036 66,409 216,631 151,224 Subtotal 2,197,300 Special Education Cluster Special Education – School-age Special Education – Preschool 84.027 84.173 H027A170088 H027A180088 H183A180030 4,491 2,011,278 68,975 Total Special Education Cluster 2,084,744 Total Passed Through the Idaho State Department of Education 4,282,044 Passed Through the State Division of Professional-Technical Vocational Education -Basic Grants to States 84.048 V048A180012 123,076 Total U.S. Department of Education 4,405,120 59 9 Bonneville Joint School District #93 Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2020 Federal Grantor / Pass-Through Grantor / Program Title Federal CFDA Number Pass-Through Entity Identifying Number Expenditures United States Department of Agriculture Passed Through the Idaho State Department of Education: Child Nutrition Cluster Cash Assistance School Breakfast Program National School Lunch Program COVID-19 – Summer Food Service Program for Children Summer Food Service Program for Children Non-Cash Assistance (Commodities) National School Lunch Program Total Child Nutrition Cluster 10.553 10.555 10.559 10.559 10.555 201919N109947 202020N109947 201919N109947 202020N109947 202020N850347 201919N109947 57,381 267,354 232,650 964,874 982,687 78,667 2,583,613 345,817 2,929,430 Discretionary Grants 10.579 201616L180330 1,051 Total Passed Through Idaho State Department of Education 2,930,481 Passed Through Bonneville County Federal Forest 10.665 5,932 Total U.S. Department of Agriculture 2,936,413 Total expenditures of federal awards 7,341,534 60 Bonneville Joint School District #93 Notes to Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2020 NOTE A BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of the District under programs of the federal government for the year ended June 30, 2020. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance issued by the Office of Management and Budget (OMB). Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in net assets of the District. NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note A to the District’s financial statements. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursements. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. NOTE C NONMONETARY TRANSACTIONS Nonmonetary assistance is reported for the Food Distribution Program at fair market value of commodities received which is established by the State Department of Education. The District held an undetermined amount of those commodities in inventory at June 30, 2020. NOTE D INDIRECT COST RATE The District has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. NOTE E SUBRECIPIENTS The District had no subrecipients or subrecipient expenditures. 61 Bonneville Joint School District #93 Summary Schedule of Prior Year Audit Findings Fiscal Year Ended June 30, 2020 Audit Finding Reference: Finding 2019-001 and 2019-002 Cost allocation and documentation – (Material Weakness) Condition: Two employees inaccurately were coded to the Title I program. According to their contracts and signed affidavits, their time was not appropriately split. Recommendation: We recommend that the District create or modify current processes to ensure that communication on employee changes and coding requirements are completed timely and reviewed. We further recommend that the Time and Effort processes be reviewed to ensure proper and complete completion as noted in finding 2019-003 in conjunction with the above. Status: Im plemented additional procedures to prevent or detect the issue. 2019-003 Time and Effort Documentation – (Material Weakness) Condition: Two employees in the sample had no documentation to support the allocation of their salary and benefit costs to the Title I federal program. Auditor Recommendation: We recommend that the District create a method to verify that all employee Time & Effort items are identified and collected as required under the program requirements. This may take the form of a payroll report cross-referenced against a spreadsheet or any other method that accurately tracks what has been done, and what remains to be done. The verification against payroll records for allocation and completeness is strongly recommended. Status: Implemented additional procedures and training to avoid further issues. 62