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HomeMy WebLinkAbout2015 Bonneville School District Audit Report of Audit Bonneville Joint School District #93 Idaho Falls, Idaho June 30, 2015 Bonneville Joint School District #93 Contents June 30, 2015 i INDEPENDENT AUDITOR’S REPORT .......................................................................................................... 1-3 MANAGEMENT’S DISCUSSION & ANALYSIS ......................................................................................... 4-10 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position ............................................................................................................................ 11 Statement of Activities ................................................................................................................................ 12 Fund Financial Statements Combined Balance Sheet Governmental Funds .................................................................................................................................... 13 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .................................................................................................................. 14 Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances ............................... 15-16 Reconciliation of the Governmental Funds Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities .......................................................................................... 17 Fiduciary Funds Statement of Fiduciary Net Position ............................................................................................................ 18 Notes to Financial Statements ...................................................................................................................... 19-37 REQUIRED FINANCIAL INFORMATION General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual .......................................................................................................................................... 38-39 Debt Service Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual ................................................................................................................................................ 40 Capital Projects Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual ................................................................................................................................................ 41 Required Supplementary Information ................................................................................................................ 42 Notes to Required Supplementary Information ................................................................................................. 43 Bonneville Joint School District #93 Contents June 30, 2015 ii OTHER FINANCIAL INFORMATION All Nonmajor Funds Combining Balance Sheet .................................................................................................................................. 44 All Nonmajor Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ........................................... 45 All Agency Funds Combining Statement of Changes in Assets and Liabilities ........................................................................ 46-47 Taxes Receivable ......................................................................................................................................... 48-49 SINGLE AUDIT 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 ........................................... 50-51 Independent Auditor’s Report on Compliance with Requirements That Could Have a Direct and material Effect on Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 ............................................ 52-53 Schedule of Findings and Questioned Costs ................................................................................................ 54-55 Schedule of Expenditures of Federal Awards .............................................................................................. 56-57 Notes to Schedule of Expenditures of Federal Awards ..................................................................................... 58 Summary Schedule of Prior Audit Findings ..................................................................................................... 59 1 Wipfli LLP 1220 Whitewater Drive Idaho Falls, ID 83402-4959 208.523.5953 fax 208.523.8995 www.wipfli.com 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, 2015, 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 of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud of 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 of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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 preparations 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, 2015, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. 2 Change in Accounting Principle As discussed in Note A to the financial statements, in 2015 the District adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pension- an amendment of GASB Statements No. 27. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, budgetary comparison information, OPEB funding information, 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 4 through 10 and pages 38 through 43 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 of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the 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. Supplementary 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 combining and individual nonmajor fund financial statements, the fiduciary/agency fund combining statement 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 the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements, the agency fund combining statement of changes in assets and liabilities and other schedules listed in the table of contents and the schedule of expenditures of federal awards, as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations, are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, the agency fund combining statement of changes in assets and liabilities and 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 27, 2015, on our consideration of Bonneville Joint School District #93’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, and other matters. 3 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 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 27, 2015 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2015 4 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, 2015. 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 2015 are as follows: In total, net position increased $8,512,981 which represents a 65% increase from 2014 restated balance of $12,954,951. General revenues accounted for $61,765,211 in revenue or 79% of all revenues. Program specific revenues in the form of charges for services, operating grants and contributions, and capital grants and contributions accounted for $16,008,680 or 21% of total revenues of $77,773,891. Total assets of governmental activities decreased by $2,220,319, as cash and cash equivalents increased by $881,877, receivables decreased by $771,026, inventory increased by $36,167, and capital assets decreased by $2,367,337. 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 $6,868,569. The District had $69,260,910 in expenses; only $16,008,680 of these expenses were offset by program specific charges for services, grants, or contributions. General revenues (primarily state support and local property taxes) of $61,765,211 were not adequate to provide for these programs. Among major funds, the General Fund had $57,630,378 in revenues, and $56,995,636 in expenditures. The General Fund’s fund balance increased $428,221 from 2014. 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. Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2015 5 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 2015?” 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 like activities. REPORTING THE DISTRICT’S MOST SIGNIFICANT FUNDS Fund Financial Statements The analysis of the District’s major funds begins on page 13. 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, and Capital Projects 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. Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2015 6 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 2015 compared to 2014: 2015 2014 (as restated) Assets Current and other assets 31,011,348 30,864,330 Capital assets 76,475,181 78,842,518 Total assets 107,486,529 109,706,848 Deferred outflows of resources 4,955,790 3,953,835 Current and other liabilities 9,821,600 9,553,912 Long-term liabilities 68,087,284 91,151,820 Total liabilities 77,908,884 100,705,732 Deferred inflows of resources 13,065,503 0 Net investment in capital assets 15,294,016 13,641,500 Restricted 15,336,569 15,344,673 Unrestricted (9,162,653)(16,031,222) Total net position 21,467,932 33,665,684 Total assets of governmental activities decreased by $2,220,319, as cash and cash equivalents increased by $881,877, receivables decreased by $771,026, inventory increased by $36,167, and capital assets decreased by $2,367,337. The District’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $21,467,932 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 $6,868,569 after the prior year was restated for the net pension liability and the deferred outflows related to the pension. Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2015 7 The following table shows the changes in net position for fiscal years 2015 and 2014: 2015 2014 Revenues Program revenues Charges for services 3,502,436 3,733,905 Operating grants and contributions 12,506,244 10,765,697 General revenues Property taxes 12,760,705 12,435,211 State aid 47,465,180 43,996,868 Federal aid 12,762 925 Other 1,526,564 1,248,420 Total revenues 77,773,891 72,181,026 Program expenses Instruction 37,930,166 40,430,276 Support services 9,265,612 8,941,144 Administrative 5,400,161 6,126,908 Business admin services 1,144,258 1,423,531 Operations 6,622,515 7,178,569 Transportation 2,693,289 2,957,021 Other support services 74,186 Community service 178,842 261,814 Noninstructional 3,416,629 3,247,840 Interest and fiscal charges 2,255,009 2,514,749 Capital improvements 280,243 781,472 Total expenses 69,260,910 73,863,324 (Decrease) increase in net position 8,512,981 (1,682,298) GOVERNMENTAL ACTIVITIES Governmental revenues come primarily from three sources. State aid of $55,853,252 consists of the state apportionment, other state grants, and revenue in lieu of taxes, and makes up 71.81% of revenues from governmental activities. Property taxes of $12,760,705 make up 16.4% of total revenues from governmental activities. Federal grants and assistance of $6,316,992 make up 8.12% of total revenues from governmental activities. Instruction expenditures including the support activities of support services, administrative, business admin services, operations, and transportation comprise $63,056,001 of District expenses. Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2015 8 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 2015 Services 2015 Instruction 54.76 37,930,166 33,886,005 Support services 13.38 9,265,612 5,422,762 Administrative 7.80 5,400,161 5,141,610 Business admin services 1.65 1,144,258 1,069,575 Operations 9.56 6,622,515 6,039,079 Transportation 3.89 2,693,289 607,244 Other support services .11 74,186 0 Community service .26 178,842 43,290 Non-instructional 4.93 3,416,629 (10,501) Interest and fiscal charges 3.26 2,255,009 776,039 Capital improvements .4 280,243 277,127 Total expenses 100 69,260,910 53,252,230 Instruction: Instruction expenses include activities directly dealing with the teaching of pupils and the interaction between teacher and pupil. The pension gain reduced expenditures by $4,576,440 in 2015. 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. The pension gain reduced expenditures by $1,158,461 in 2015. Administration: The personnel, activities, and services for directing and managing the operation of the schools in the District. (Principals, assistant principals, secretaries, and clerks charges with responsibility for a school’s administration.) Board of Education, Administration, Fiscal, and Business includes expenses associated with administrative and financial supervision of the District. The pension gain reduced expenditures by $612,008 in 2015. Business Admin Services: The program concerned with the fiscal operations of the District. This program may include 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. The pension gain reduced expenditures by $392,604 in 2015. 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 school district vehicles. The pension gain reduced expenditures by $183,242 in 2015. Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2015 9 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. The pension gain reduced expenditures by $141,090 in 2015. 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 13. These funds are accounted for using the modified accrual basis of accounting. All governmental funds had total revenues of $77,764,980 and expenditures of $77,934,191. The net change in fund balance for the year in the General Fund, Debt Service Fund, and the Capital Projects Fund, was a increase of $428,221 an increase of $727,820 and a decrease of $549,232 respectively. GENERAL FUND BUDGETING HIGHLIGHTS During the course of the fiscal 2015 year, the District did not amend its budget. For the General Fund, the budgeted revenue was $55,997,326 and the budgeted expense was $57,621,778. Actual revenue was $57,630,378. The District received an additional $584,000 for leadership premiums to qualifying personnel and $711,000 due to increased enrollment. Actual expenditures were $56,995,636 due in part, to the salary payments for the leadership premiums. CAPITAL ASSETS At the end of the fiscal year 2015, the District had $76,475,181 invested in land, buildings, furniture and equipment, and vehicles (net of accumulated depreciation). 2015 2014 Non-depreciable assets 6,414,620 6,094,290 Buildings and improvements 67,448,015 70,514,751 Equipment 1,457,420 1,372,086 Vehicles 1,155,126 861,391 Total capital assets, net 76,475,181 78,842,518 Overall capital assets decreased $2,367,337 from fiscal year 2014 to fiscal year 2015. Decreases in capital assets, primarily buildings, equipment, and vehicles, was due to depreciation expense for the year. Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2015 10 DEBT ADMINISTRATION At June 30, 2015, the District had three general obligation bond issues as follows: Total Due within one year 2007 Series Bond 5,750,000 5,750,000 2009 Series Bond 23,955,000 275,000 2012 Series Bond 26,750,000 Total 56,455,000 6,025,000 At June 30, 2015, the District’s overall legal debt margin was $113,897,241. CURRENT FINANCIAL ISSUES AND CONCERNS The Bonneville Joint School District No. 93 continues to be financially stable. In 2015, the District was able to fund operating expenditures in the General Fund without deficit spending. This was due in part to an increase in state funding for k-12 education in 2014-2015 and increased enrollment in the District. For 2015-2016 the state legislature appropriated an increase of over 7% to the public education budget. In addition the legislature implemented a new salary reimbursement schedule for instructional staff called the “career ladder”. This has a five year implementation period designed to increase the beginning salaries for teachers. As with any new funding/reimbursement model there will be challenges as we work through the process. The most critical concern for the District continues to be providing adequate facilities for our growing student population. The District’s fifteen year facility plan anticipates the need for a high school, middle school and three elementary schools. In March and May of 2015 the Board of Trustees asked patrons to approve a general obligation bond to build the much needed high school. Both bond elections failed by less than 1% of the 66.67% needed to pass. The Board will be asking the patrons again in November 2015 to approve a general obligation bond for the high school. As of July 1, 2014 the District adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions. The implementation of these standards requires governments to calculate and report the cost and obligations associated with pensions in their financial statements, including additional note disclosures and required supplementary information. COMPONENT UNIT The financial statements do not include the Bonneville Education Foundation, a component unit of the District. The financial statements 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 April Burton, Chief Financial/ Operations Officer, at Bonneville Joint School District #93, 3497 North Ammon Road, Idaho Falls, Idaho 83401 or email at burtona@d93.k12.id.us. This page intentionally left blank. Statement of Net Position Governmental Activities ASSETS Cash and investments 20,937,228 Property tax receivable, net 5,188,427 Other receivables 4,719,594 Supplies inventory 117,351 Prepaid expenses 48,748 Land and construction in progress 6,414,620 Depreciable buildings, equipment and vehicles, net of depreciation 70,060,561 Total assets 107,486,529 DEFERRED OUTFLOWS OF RESOURCES Related to pensions 4,955,790 Total deferred outflows of resources 4,955,790 LIABILITIES Accounts payable 900,722 Accrued wages 5,399,549 Accrued employee benefits 2,735,332 Interest payable 785,997 Long-term liabilities Net pension liability 5,537,175 Premium on bonds payable 4,726,165 Portion due or payable within one year General obligation bonds 6,025,000 Other liabilities 153,043 Portion due or payable after one year General obligation bonds 50,430,000 Other liabilities 1,215,901 Total liabilities 77,908,884 DEFFERED INFLOWS OF RESOURCES Related to pensions 13,065,503 Total deferred inflows of resources 13,065,503 NET POSITION Net investment in capital assets 15,294,016 Restricted for Capital improvements 5,328,867 Debt service 9,266,328 Child nutrition 741,374 Unrestricted (9,162,653) Total net position 21,467,932 Bonneville Joint School District #93 June 30, 2015 The accompanying notes are an integral part of these statements. 11 Bonneville Joint School District #93 Statement of Activities Fiscal Year Ended June 30, 2015 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 37,930,166 738,424 3,305,737 (33,886,005) Support services 9,265,612 1,571,796 2,271,054 (5,422,762) Administrative 5,400,161 258,551 (5,141,610) Business admin services 1,144,258 74,683 (1,069,575) Operations 6,622,515 28,327 555,109 (6,039,079) Transportation 2,693,289 183,075 1,902,970 (607,244) Other support services 74,186 74,186 0 Community service 178,842 93,960 41,592 (43,290) Noninstructional 3,416,629 878,188 2,548,942 10,501 Interest on long-term debt 2,255,009 5,550 1,473,420 (776,039) Capital improvements 280,243 3,116 (277,127) Total governmental activities 69,260,910 3,502,436 12,506,244 0 (53,252,230) General revenues Taxes Property taxes 12,760,705 Property tax replacement 128,028 Federal grants 12,762 State aid - formula grants 47,054,248 Other state revenues 282,904 Loss on disposition of assets (3,030) Unrestricted investments earnings 12,361 Other local 1,517,233 Total general revenues 61,765,211 Change in net position 8,512,981 Net position - beginning (as restated) 12,954,951 Net position - ending 21,467,932 The accompanying notes are an integral part of these statements. 12 Bonneville Joint School District #93 Combined Balance Sheet Governmental Funds June 30, 2015 All Total Debt Capital Nonmajor Governmental General Service Projects Funds Funds ASSETS Cash and investments 6,795,766 6,974,238 4,310,531 2,856,693 20,937,228 Receivables 0 Taxes - current 1,572,465 2,011,688 1,028,154 4,612,307 Taxes - delinquent 182,734 280,402 112,984 576,120 State apportionment 3,096,690 00 3,096,690 Federal grants 00 01,606,029 1,606,029 Other 00 016,875 16,875 Interfund receivable 665,016 000665,016 Supplies inventory 00 0117,351 117,351 Prepaid expenses 48,748 0 48,748 Total assets 12,361,419 9,266,328 5,451,669 4,596,948 31,676,364 LIABILITIES Accounts payable 333,057 0 122,802 444,863 900,722 Accrued wages 4,834,349 00565,200 5,399,549 Accrued employee benefits 2,360,659 00374,673 2,735,332 Interfund payable 00665,016 665,016 Total liabilities 7,528,065 0 122,802 2,049,752 9,700,619 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 182,734 280,402 112,984 0 576,120 FUND BALANCES Nonspendable Inventory 00 0117,351 117,351 Prepaid expenses 48,748 48,748 Restricted for 0 Debt service 8,985,926 8,985,926 Child nutrition 00 0624,023 624,023 Other fund activities 5,215,883 1,297,152 6,513,035 Assigned 1,140,579 508,670 1,649,249 Unassigned 3,461,293 0 3,461,293 Total fund balances 4,650,620 8,985,926 5,215,883 2,547,196 21,399,625 Total liabilities, deferred inflows of resources, and fund balances 12,361,419 9,266,328 5,451,669 4,596,948 31,676,364 The accompanying notes are an integral part of these statements. 13 21,399,625 (4,726,165) (13,646,888) 76,475,181 576,120 Long-term liabilities at year end consisted of: Bonds payable (56,455,000) Accrued interest on the bonds (785,997) Compensated absences (153,043) OPEB obligation (1,215,901) (58,609,941) Total net position - governmental activities 21,467,932 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. 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 $137,023,034 and the accumulated depreciation is $60,547,853. 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. The premium on the bonds issued by the District is reported as an other financing source in the governmental funds, but is reported as a liability in the government-wide financial statements. The premium on the Series 2007, 2009, 2012A, 2012B, and 2012C bonds is reported net of amortization. The net pension liability (asset) 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 (asset) is $5,537,175, deferred inflows of resources related to pensions is $13,065,503, and deferred outflows of resources related to pensions is $4,955,790. Bonneville Joint School District #93 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2015 Total fund balances - governmental funds Amounts reported for governmental activities in the Statement of Net Position are different because: The accompanying notes are an integral part of these statements. 14 Bonneville Joint School District #93 Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Fiscal Year Ended June 30, 2015 All Total Debt Capital Nonmajor Governmental General Service Projects Funds Funds REVENUES Property taxes 4,320,365 5,523,547 2,820,888 12,664,800 Penalties and interest on delinquent taxes 28,662 36,765 18,537 83,964 Earnings on investments 12,361 5,550 0 3,116 21,027 Food service 000867,804 867,804 Rental 28,327 00 28,327 Other local 1,785,915 52,891 90,008 1,928,814 State apportionment 0 Base 41,545,938 00 41,545,938 Transportation 1,902,970 00 1,902,970 Exceptional child 35,216 00 35,216 Benefits 5,508,310 00 5,508,310 Property tax replacement 248,028 00 248,028 Other state revenue 2,214,286 1,473,420 0 2,925,084 6,612,790 Federal grants and assistance 0006,316,992 6,316,992 Total revenues 57,630,378 7,039,282 2,892,316 10,203,004 77,764,980 EXPENDITURES Current Instruction 34,855,548 0 419,209 3,587,472 38,862,229 Support services 6,915,135 0 526,660 2,982,278 10,424,073 Administration 5,901,644 0 36,136 86,847 6,024,627 Business operations 930,502 0 297,457 74,786 1,302,745 Operations 5,786,674 0 906,730 48,497 6,741,901 Transportation 2,507,943 0 740,946 791 3,249,680 Other support services 74,186 74,186 Community services 98,028 80,814 178,842 Noninstructional 162 003,640,159 3,640,321 Debt service 0 6,311,462 0 6,311,462 Facility acquisition 00777,223 346,902 1,124,125 Total expenditures 56,995,636 6,311,462 3,704,361 10,922,732 77,934,191 Revenues over (under) expenditures 634,742 727,820 (812,045) (719,728) (169,211) The accompanying notes are an integral part of these statements. 15 Bonneville Joint School District #93 Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Fiscal Year Ended June 30, 2015 All Total Debt Capital Nonmajor Governmental General Service Projects Funds Funds OTHER FINANCING SOURCES (USES) Operating transfers, net (206,521)0 262,813 (56,292) 0 Total other financing sources (uses) (206,521) 0 262,813 (56,292) 0 Revenues and other financing sources over (under) expenditures 428,221 727,820 (549,232) (776,020) (169,211) Fund balance - July 1, 2014 4,222,399 8,258,106 5,765,115 3,323,216 21,568,836 Fund balance - June 30, 2015 4,650,620 8,985,926 5,215,883 2,547,196 21,399,625 The accompanying notes are an integral part of these statements. 16 Total net change in fund balances - governmental funds:(169,211) 439,853 (2,364,307) 11,941 3,580,000 6,981,135 (3,030) 36,600 Change in net position of governmental activities 8,512,981 Amounts reported for governmental activities in the Statement of Activities are different because: The bonds were issued at a premium. In the government-wide statement of net position, the premium is reported as a liability and is amortized over the life of the bonds. The current year bond premium amortization reflected on the Statement of Activities is $439,853. Bonneville Joint School District #93 For Fiscal Year Ended June 30, 2015 Reconciliation of the Governmental Funds Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 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 depreciation exceeded capital outlays. 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 $11,941 this year. The net effect of various miscellaneous transactions involving capital assets (i.e., sales and donations) is to decrease net assets. 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 increase in interest expense reported in the Statement of Activities is the net result of the decrease in accrued interest on bonds by ($36,600). Vested employee benefits are reported in the governmental funds when amounts are paid. The Statement of Activities reports the value of benefits earned during the year. Change in OPEB obligation ($95,168). Change in net pension liability $19,127,393. Change in deferred outflows of resources related to pensions $1,001,955. Change in deferred inflows of resources related to pensions ($13,065,503). Change in compensated absences $12,458. Governmental funds report repayment of bond principal as an expenditure, In contrast, the Statement of Activities treats such repayments as a reduction in long-term liabilities. The accompanying notes are an integral part of these statements. 17 Agency Funds ASSETS Cash 1,001,049 Investments 447,757 Total assets 1,448,806 LIABILITIES Accounts payable 290,766 Due to student groups 1,158,040 Total liabilities 1,448,806 Bonneville Joint School District #93 Fiduciary Funds Statement of Fiduciary Net Position June 30, 2015 The accompanying notes are an integral part of these statements. 18 This page intentionally left blank. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 19 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. New Accounting Pronouncement. Management adopted the provisions of the Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pension - an amendment of GASB Statement No. 27. The statement establishes new requirements for the District to report a “net pension liability (asset) for the unfunded (overfunded) portion of its pension plan and deferred outflows of resources and deferred inflows of resources related to pension plans. See Note Q for the restatement of the beginning net position. The District has not evaluated the potential impact of these changes. 4. 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, 2015. Complete financial information for the component unit may be obtained at the District’s administrative office. 5. 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 20 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 6. 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. 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. 7. 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 21 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 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. 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. 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). Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 22 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 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. 8. 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 for the 2014-2015 school year. 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 reserved 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. 9. 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 organized under Idaho Law, and national banks having their principal offices in Idaho. State statutes authorize the District to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, and repurchase agreements. The District has elected to deposit cash in excess of immediate needs into the Local Government Investment Pool (LGIP). The LGIP was established as a cooperative endeavor to enable public entities of the State of Idaho to aggregate funds for investment. This pooling is intended to improve administrative efficiency and increase investment yield. The Local Government Investment Pool is managed by the State of Idaho Treasurer’s office. 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 23 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 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. 10. 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. 11. 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. 12. 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 13. Compensated Absences. Employees are entitled to certain compensated absences based on their length of employment. The entire compensated absences owed are repeated in the governmental-wide financial statement. 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 24 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 15. 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. Deferred Outflows / Inflows of Resources. In addition to assets, the statement of financial 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 one item that qualifies for reporting in this category and it occurs on the government-wide statement of net position. The District reports deferred outflows of resources related to pensions for its proportionate shares of collective deferred outflows of resources related to pensions and District contributions to pension plans subsequent to the measurement date of the collective net pension liability (asset). In addition to liabilities, the Statement of Financial Position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District has two types of items, one of which arises under a modified accrual basis of accounting, and the other arises in the government wide financial statements, that qualify for reporting in this category. Accordingly, the one item, 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 on the government wide financial statements. 16. 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. 17. 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 25 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 18. 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. 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. 19. 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. 20. 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 26 NOTE B CASH AND INVESTMENTS At June 30, 2015, the carrying amount was $12,877,826 and the bank balance of the District’s deposits was as follows: Bank Balance Insured by Federal Depository Insurance 760,237 Uninsured and uncollateralized 13,492,624 Totals 14,252,861 At June 30, 2015, the cost and fair market value of the District’s investments were as follows: Deposit and investment type Cost Fair Market Value Average Maturity Local Government Investment Pool 9,488,528 9,502,761 118 Days Total investments 9,488,528 9,502,761 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. 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, 2015, $13,492,624 of the District’s deposits and certificates of deposit were exposed to custodial credit risk because it was uninsured and uncollateralized. Of the deposits, $9,488,528 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. The investments held by the Local Government Investment Pool are carried at cost, which is not materially different than fair value (determined by the Idaho State Treasurer’s office). 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 27 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, 2015, balances of interfund amounts receivable or payable have been recorded. The interfund balances at June 30, 2015, were as follows: Receivable Payable General Fund 665,016 Nonmajor Funds 665,016 Total 665,016 665,016 The General Fund transferred $73,412 to Child Nutrition and $262,813 to Plant Facilities as required by State law. The federal programs transferred $129,704 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. NOTE E NON-MONETARY TRANSACTIONS The District received $282,071 USDA Commodities during the 2014-2015 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 F 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, 2015, the limit for the District was 5% of $3,227,326,301 or $161,366,315. The debt service fund had $8,985,926 available and the general obligation debt was $56,455,000 leaving a legal debt margin of $113,897,241. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 28 NOTE G CAPITAL ASSETS Following is a summary of the capital assets at June 30, 2015: Balance Balance June 30, 2014 Additions Deletions June 30, 2015 Capital assets, not being depreciated Land Elementary 2,986,916 2,986,916 Secondary 3,107,374 3,107,374 Construction in progress 320,330 320,330 Total capital assets, not being depreciated 6,094,290 320,330 6,414,620 Capital assets, being depreciated Buildings Elementary 70,865,596 70,865,596 Secondary 44,439,308 523,552 44,962,860 Administration 4,505,124 (15,150) 4,489,974 Total buildings 119,810,028 523,552 (15,150) 120,318,430 Equipment Elementary 771,990 82,602 (16,400) 838,192 Secondary 1,244,428 (76,129) 1,168,299 Admin. 1,399,855 237,901 (16,739) 1,621,017 Total equipment 3,416,273 320,503 (109,268) 3,627,508 Vehicles 6,013,173 649,303 0 6,662,476 Total capital assets, being depreciated 129,239,474 1,493,358 (124,418) 130,608,414 Less accumulated depreciation for: Buildings (49,295,277) (3,587,258) 12,120 (52,870,415) Equipment (2,044,187) (235,169) 109,268 (2,170,088) Vehicles (5,151,782) (355,568) (5,507,350) Total accumulated depreciation (56,491,246) (4,177,995) 121,388 (60,547,853) Total capital assets being depreciated, net 72,748,228 (2,684,637) (3,030) 70,060,561 Governmental activities capital assets, net 78,842,518 (2,364,307) (3,030) 76,475,181 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 29 NOTE G CAPITAL ASSETS, continued Depreciation expense was charged to the functions of the primary government as follows: Governmental activities Instruction 3,549,209 Operations 273,218 Transportation 355,568 Total depreciation expense – governmental activities 4,177,995 NOTE H GENERAL OBLIGATION BOND ISSUES The District had four general obligation bond issues (2007, 2009, 2012A, and 2012C Series) outstanding at the end of the year with interest rates ranging from 3.0 to 5.375 percent. The 2007 and 2009 Series bonds are scheduled to mature September of 2015, and September of 2028, respectively. The 2012A and 2012C bonds are scheduled to mature September 2031 and September 2026, respectively. Future debt service requirements are as follows: Fiscal Year Ended June 30, Total Interest Principal 2016 8,557,038 2,532,038 6,025,000 2017 4,801,788 2,351,788 2,450,000 2018 4,773,175 2,253,175 2,520,000 2019 4,781,688 2,141,688 2,640,000 2020 4,782,975 2,037,975 2,745,000 2020-2024 23,806,156 8,176,156 15,630,000 2025-2029 21,847,523 3,837,523 18,010,000 2030-2032 6,760,175 325,175 6,435,000 Total 80,110,518 23,655,518 56,455,000 Changes to bond principal payable and future interest payable are summarized as follows: Principal 2012A Series 2012B Series 2012C Series 2009 Series 2007 Series Combined Total Balances at July 1, 2014 11,780,000 1,930,000 14,970,000 24,440,000 6,915,000 60,035,000 Bonds retired 1,930,000 485,000 1,165,000 3,580,000 Balances at June 30, 2015 11,780,000 0 14,970,000 23,955,000 5,750,000 56,455,000 Interest to be Provided Balances at July 1, 2014 9,418,650 24,125 4,703,675 11,797,894 442,153 26,386,497 Interest paid 587,601 24,125 648,850 1,167,624 302,779 2,730,979 Balances at June 30, 2015 8,831,049 0 4,054,825 10,630,270 139,374 23,655,518 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 30 NOTE I CHANGES IN LONG-TERM LIABILITIES Following is a summary of the changes in long-term debt for the year ended June 30, 2015: Balance Balance Current July 1, 2014 Additions Deductions June 30, 2015 Balance Bonds payable 60,035,000 3,580,000 56,455,000 6,025,000 Premium on bonds 5,166,018 439,853 4,726,165 Employee benefits 1,286,234 95,168 12,458 1,368,944 153,043 Total 66,487,252 95,168 4,032,311 62,550,109 6,178,043 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 works. NOTE J DEFEASED DEBT The District purchased U.S. Securities and deposited $22,664,342 to an irrevocable trust with an escrow agent to provide for all future debt service payments on $22,870,200 of the 2005 Series and the 2007 Series bonds. As a result, $4,925,000 of the 2005 Series and $15,430,000 of the 2007 Series bonds are defeased and the liability for those bonds has been removed from the government-wide statement of net assets. The 2005 Series has been paid off and only the 2007 defeased debt remains outstanding. NOTE K PAYROLL EXPENDITURES AND RELATED LIABILITIES Teacher contracts were signed for the period September 2014, through June 2015, to be paid over the twelve months of September 2014, through August 2015. The financial statements reflect the salary expense for this period. The accrued payroll reflects the final two months of these contracts. NOTE L RETIREMENT HEALTHCARE PLAN 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. 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 2015 the District contributed approximately $7.7 million to the plan for current premiums or approximately 87% of total premiums. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 31 NOTE L RETIREMENT HEALTHCARE PLAN, continued Plan members receiving benefits contributed approximately $1,145,291 or approximately 13% of total premiums. Retirees are required to pay 100% of the premiums for both the retiree and the dependent coverage. Monthly contribution rates in effect for the retirees under age 65 during fiscal year 2015 were as follows: Medical Coverage Single $616.95 No Spouse W/Child $819.70 No Spouse W/Children $955.40 W/Spouse $1,018.70 W/Spouse + Child $1,218.10 W/Spouse + Children $1,218.10 Dental Coverage Delta Dental Willamette Dental Single $37.95 $41.35 No Spouse W/Child $66.65 $104.42 No Spouse W/Children $120.00 $104.42 W/Spouse $75.5 $67.19 W/Spouse + Child $138.75 $104.42 W/Spouse + Children $138.75 $138.75 Annual OPEB Cost and Net OPEB Obligation. The District’s annual other post-employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the District’s annual OPEB cost for the year of implementation of Bonneville Joint School District #93’s Post-Retirement Healthcare Plan: Annual required contribution 337,571 Interest on net OPEB obligation 47,631 Adjustment to annual required contribution (44,829) Annual OPEB cost (expense) 340,373 Contributions made (245,204) Increase in net OPEB obligation 95,169 Net OPEB obligation – beginning of year 1,120,732 Net OPEB obligation - end of year 1,215,901 Annual OPEB cost Percentage of OPEB cost contributed Net OPEB obligation $340,373 72% $1,215,901 Three year disclosure of the District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation are presented as RSI which accompany the financial statements. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 32 NOTE L RETIREMENT HEALTHCARE PLAN, continued Funded Status and Funding Progress. As of July 1, 2014, the most recent actuarial valuation date, the actuarial accrued liability (AAL) and the unfunded actuarial accrued liability (UAAL) for benefits was $2,724,093. The District’s plan is considered to be unfunded since there are no assets and retiree benefits are paid annually on a cash basis. Because the plan is unfunded, the AAL and UAAL are equal. The covered payroll (annual payroll of active employees covered by the plan) was $36.8 million and the ratio of the UAAL to the covered payroll was 7.4% Actuarial valuations of an ongoing plan involve estimates of the value of the reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress will be presented in the future when multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial liabilities for benefits is available. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short- term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the July 1, 2014, actuarial valuation, the Projected Unit Credit (PUC) actuarial cost method is used. The actuarial assumptions included a 4.25% discount rate assuming the District will fund the retirement benefit on a pay-as-you-go basis. The valuation assumes that 45% of future retirees will elect medical coverage, 44.8% of future retirees will elect dental coverage, 70% of future retirees who elect medical, dental or vision coverage and are married are assumed to elect spousal coverage as well. The annual healthcare cost trend rate of 7% for medical, 7% for prescription drugs, and 7% for dental initially, decreasing approximately .5% per year for medical, .5% per year for prescription drugs, and .5% per year for dental until reaching an ultimate rate of 4.5%. It was assumed salary increases will be 2.5% per annum. The UAAL is being amortized as a level percentage of projected payrolls over a twenty five year time period. NOTE M 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 for the 2014-2015 school 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 33 NOTE N 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. Employee membership data related to the PERSI Base Plan, as of June 30, 2014, was as follows: Active system members 66,223 Inactive system members entitled to but not yet receiving benefits 11,504 Inactive system members or beneficiaries currently receiving benefits 40,776 Total system members 118,503 Pension Benefits The Base Plan provides retirement, disability, death, and survivors of 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% 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 34 NOTE N PENSION PLAN, continued The contribution rates for employees are set by statute at 60% of the employer rate. As of June 30, 2014 it was 6.79%. The employer contribution rate is set by the Retirement Board and was 11.32% of covered compensation. The District’s contributions were $3,953,835 for the year ended June 30, 2014. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2015, the District reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of July 1, 2014, 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 July 1, 2014, the District’s proportion was 1.2892652 percent. For the year ended June 30, 2015, the District recognized pension revenue of $2,898,099. At June 30, 2015, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 1,178,162 Changes in assumptions or other inputs 790,043 Net difference between projected and actual earnings on pension plan investments 11,887,340 District contributions subsequent to the measurement date 4,165,747 Total 4,955,790 13,065,502 $4,165,747 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, 2015. 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, 2013, the beginning of the measurement period ended June 30, 2014, is 5.6 years. 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: 2015 (3,056,209) 2016 (3,056,209) 2017 (3,056,209) 2018 (3,056,209) 2019 (50,624) Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 35 NOTE N PENSION PLAN, continued 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 50-1322, Idaho Code, is 25 years. The total pension liability in the July 1, 2014, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.25% Salary increases 4.5 – 10.25% Salary inflation 3.75% Investment rate of return 7.10%, net investment expenses Cost-of-living adjustments 1% 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 in 2012 for the period July 1, 2007 through June 30, 2011 which reviewed all economic and demographic assumptions other than mortality. Mortality and all economic assumptions were studied in 2014 for the period from July 1, 2009 through June 30, 2013. The Total Pension Liability as of June 30, 2014, is based on the results of an actuarial valuation date of July 1, 2014. The long-term expected rate of return on pension plan investments was determined using the building bock 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 36 NOTE N PENSION PLAN, continued The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of January 1, 2014. Asset Class Index Target Allocation Long-Term Expected Real Rate of Return Core Fixed Income Barclays Aggregate 30.00% 0.80% Broad US Equities Wilshire 5000 / Russell 3000 55.00% 6.90% Developed Foreign Equities MSCI EAFE 15.00% 7.55% Assumed Inflation – Mean 3.25% Assumed Inflation – Standard Deviation 2.00% Portfolio Arithmetic Mean Return 8.42% Portfolio Standard Deviation 13.34% Portfolio Long-Term Expected Rate of Return 7.50% Assumed Investment Expenses 0.40% Long-Term Expected Rate of Return, Net of Investment Expenses 7.10% Discount Rate The discount rate used to measure the total pension liability was 7.10%. 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 7.10 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 (6.10 percent) or 1-percentage-point higher (8.10 percent) than the current rate: 1% Decrease (6.10%) Current Discount Rate (7.10%) 1% Increase (8.10%) Employer’s proportionate share of the net pension liability (asset) 32,959,504 9,491,010 (10,018,151) Bonneville Joint School District #93 Notes to Financial Statements June 30, 2015 37 NOTE N 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. NOTE O COMMITMENTS AND CONTINGENCIES The District is involved in claims arising from the ordinary course of operations. 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. NOTE P CONSTRUCTION COMMITMENTS The District has entered into construction commitments with three vendors as of June 30, 2015, totaling $294,039. All three commitments will be completed in the next fiscal year. NOTE Q PRIOR YEAR RESTATEMENT As a result of the implementation of GASB Statement No. 68, the governmental activities beginning net position was restated to subtract the beginning net pension liability for PERSI by $24,664,568 and to add deferred outflows of resources – contributions after the measurement date resulting in a restated balance of $12,954,951. NOTE R SUBSEQUENT EVENTS Management of the District evaluated subsequent events through October 27, 2015, which was the date the financial statements were available to be issued. There were no subsequent type events, identified by management of the District, that are required to be disclosed. REQUIRED FINANCIAL INFORMATION Favorable (Unfavorable) REVENUES Budget Actual Variance Property taxes 4,520,000 4,320,365 (199,635) Penalties and interest on delinquent taxes 25,000 28,662 3,662 Earnings on investments 8,000 12,361 4,361 Tuition 5,000 73,336 68,336 Rental 20,000 28,327 8,327 Other local 952,678 1,712,579 759,901 State apportionment Base 41,410,406 41,545,938 135,532 Transportation 1,775,000 1,902,970 127,970 Exceptional child 73,000 35,216 (37,784) Benefits 5,503,068 5,508,310 5,242 Property tax replacement 248,027 248,028 1 Other state revenue 1,457,147 2,214,286 757,139 Total revenues 55,997,326 57,630,378 1,633,052 EXPENDITURES Instruction Elementary 16,953,321 16,438,349 514,972 Secondary 13,331,061 13,701,137 (370,076) Alternative school 1,003,954 827,557 176,397 Special education program 2,779,660 3,017,088 (237,428) Special education preschool program 224,734 204,479 20,255 Gifted and talented 60,000 23,143 36,857 Interscholastic program 494,078 475,328 18,750 School activity 155,243 168,467 (13,224) Total instruction 35,001,973 34,855,548 146,425 Support services Attendance, guidance, and health 1,597,905 1,627,860 (29,955) Special education support services 2,865,864 2,457,429 408,435 Instructional improvement 677,543 836,749 (159,206) Educational media 504,136 442,398 61,738 Instruction related technology 1,432,094 1,550,699 (118,605) Total support services 7,077,542 6,915,135 162,407 Fiscal Year Ended June 30, 2015 Bonneville Joint School District #93 -Budget to Actual- General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance See Independent Auditor's Report. 38 Favorable (Unfavorable) EXPENDITURES, continued Budget Actual Variance Administration Board of Education 105,019 83,785 21,234 District administration 1,724,509 1,739,080 (14,571) School administration 3,962,584 4,078,779 (116,195) Total administration 5,792,112 5,901,644 (109,532) Business Administrative Services Business operations 582,047 606,733 (24,686) Central services 141,580 116,572 25,008 Administrative Technology Services 101,700 207,197 (105,497) Total business administrative services 825,327 930,502 (105,175) Operations Building care (custodial) 4,258,183 4,035,039 223,144 Maintenance 1,550,811 1,365,161 185,650 Security 394,117 386,474 7,643 Total operations 6,203,111 5,786,674 416,437 Transportation 2,629,534 2,507,943 121,591 Community service 92,179 98,028 (5,849) Noninstructional 162 (162) Total expenditures 57,621,778 56,995,636 626,304 Revenues over (under) expenditures (1,624,452) 634,742 2,259,356 OTHER FINANCING SOURCES (USES) Operating transfers, net (161,705) (206,521) (44,816) Revenues and other financing sources over (under) expenditures (1,786,157) 428,221 2,214,540 Fund balance - July 1, 2014 4,222,399 Fund balance - June 30, 2015 4,650,620 Fiscal Year Ended June 30, 2015 Bonneville Joint School District #93 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance -Budget to Actual- See Independent Auditor's Report. 39 Favorable (Unfavorable) Budget Actual Variance REVENUES Property taxes 6,980,000 5,523,547 (1,456,453) Penalty and interest on delinquent taxes 50,000 36,765 (13,235) Earnings on investments 0 5,550 5,550 Other state revenue 1,418,892 1,473,420 54,528 Total revenues 8,448,892 7,039,282 (1,409,610) EXPENDITURES Debt service Principal 3,580,000 3,579,999 1 Interest 2,730,966 2,730,963 3 Fees 500 500 0 Total expenditures 6,311,466 6,311,462 4 Revenues over (under) expenditures 2,137,426 727,820 (1,409,614) Revenues and other financing sources over (under) expenditures 2,137,426 727,820 (1,409,606) Fund balance - July 1, 2014 8,258,106 Fund balance - June 30, 2015 8,985,926 Bonneville Joint School District #93 Debt Service Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Fiscal Year Ended June 30, 2015 -Budget to Actual- See Independent Auditor's Report. 40 Favorable (Unfavorable) Budget Actual Variance REVENUES Property taxes 2,800,000 2,820,888 20,888 Penalties and interest on delinquent taxes 0 18,537 18,537 Other local 52,891 52,891 Total revenues 2,800,000 2,892,316 92,316 EXPENDITURES Instruction 419,209 (419,209) Support services 129,000 526,660 (397,660) Administration 10,000 36,136 (26,136) Business administrative services 480,200 297,457 182,743 Operations 1,551,992 906,730 645,262 Transportation 90,000 740,946 (650,946) Other support services 2,903,809 2,903,809 Facility acquisition 442,000 777,223 (335,223) Total expenditures 5,607,001 3,704,361 1,902,640 Revenues over (under) expenditures (2,807,001) (812,045) 1,994,956 OTHER FINANCING SOURCES (USES) Operating transfers, net 250,000 262,813 12,813 Revenues and other financing sources over (under) expenditures (2,557,001) (549,232) 2,007,769 Fund balance - July 1, 2014 5,765,115 Fund balance - June 30, 2015 5,215,883 Bonneville Joint School District #93 Capital Projects Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Fiscal Year Ended June 30, 2015 -Budget to Actual- See Independent Auditor's Report. 41 ( a ) ( b ) (b - a) (a / b) ( c ) [(b - a) / c] 6/30/2015 - 2,724,093 2,724,093 - 36,799,863 7.40% 6/30/2014 - 3,724,390 3,724,390 - 34,937,428 10.66% 6/30/2013 - 3,042,498 3,042,498 - 34,648,863 8.78% 2015 Employer's portion of net pension liability 1.289265200% Employers proportionate share of the net pension liability 9,491,010 Employer's covered-employee payroll 34,799,863 Employer's proportional share of the net pension liability as a percentage of its covered- employee payroll 27.27% Plan fiduciary net position as a percentage of the total pension liability 94.95% Data reported is measured as of July 1, 2014 (measurement date). 2015 Statutorily required contribution 4,190,112 Contributions in relation to the statutorily required contribution 4,009,615 Contribution (deficiency) excess (180,497) Employer's covered-employee payroll 34,799,863 Contributions as a percentage of covered-employee payroll 11.5219% Data reported is measured as of June 30, 2015. Required Supplementary Information Bonneville Joint School District #93 General Employees' Other Postemployment Benefits Plan Fiscal Year Ended June 30, 2015 Actuarial Valuation Date Schedule of Funding Progess UAAL as a Percentage of Covered Payroll Covered Payroll Funded Ratio Unfunded AAL (UAAL) Actuarial Accrued Liability (AAL) - Projected Unit Credit Actuarial Value of Assets Schedule of Employer's Share of Net Pension Liability PERSI-Base Plan Last 10-Fiscal Years * * 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. Schedule of Employer Contributions PERSI-Base Plan Last 10-Fiscal Years * * 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. See Independent Auditor's Report. 42 NOTE A BUDGET ADOPTION Bonneville Joint School District #93 Notes to Required Supplementary Information Fiscal Year Ended June 30, 2015 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. 43 This page intentionally left blank. OTHER FINANCIAL INFORMATION Pu b l i c I d a h o I m p r o v i n g I D E A P e r k i n s I I I I m p r o v i n g A l l Ch i l d F e d e r a l C o m m u n i t y S p e c i a l D r i v e r ' s Pr o f e s s i o n a l S c h o o l Su b s t a n c e T e l f o r d Ba s i c M i g r a n t School I D E A P r o f e s s i o n al T e a c h e r C o n s t r u c t i o n C o n s t r u c t i o n N o n m a j o r Nu t r i t i o n F o r e s t R e s o u r c e P r o j e c t s E d T e c h n i c a l T e c h n o l o g y A b u s e G r a n t M e di c a i d P r o g r a m s E d u c a t i o n A g e P r e s c h o o l T e c h n i c a l T i t l e I I I Q u a l i t y 2 0 09 2 0 1 2 F u n d s AS S E T S Ca s h a n d i n v e s t m e n t s 8 8 7 , 1 0 0 4 9 , 1 6 9 1 9 , 5 5 4 3 5 6 , 4 3 4 2 8 , 3 1 0 1 1 , 4 0 7 2 0 4 , 1 9 7 4 4 , 4 4 3 1 6 , 1 4 4 00 0 0 4,503 00 0 455,948 7 7 9 , 4 8 4 2 , 8 5 6 , 6 9 3 Fe d e r a l g r a n t s r e c e i v a b l e 4 8 , 5 3 5 4 6 , 0 3 7 1 , 5 1 1 1 6 , 2 1 4 00 0 0 0 49 0 , 5 0 7 3 5 2 , 9 0 9 7 , 1 5 5 4 3 9 , 9 3 5 3 , 0 3 7 1 0 7 , 4 4 6 6 , 8 8 0 8 5 , 8 6 3 00 1,606,029 Ot h e r r e c e i v a b l e s 0 16 , 8 7 5 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 16,875 Su p p l i e s i n v e n t o r y 1 1 7 , 3 5 1 0 0 117,351 To t a l a s s e t s 1 , 0 5 2 , 9 8 6 9 5 , 2 0 6 3 7 , 9 4 0 3 7 2 , 6 4 8 2 8 , 3 1 0 1 1 , 4 0 7 2 0 4 , 1 9 7 4 4 , 4 4 3 1 6 , 1 4 4 4 9 0 , 5 0 7 3 5 2 , 9 0 9 7 , 1 5 5 4 3 9 , 9 3 5 7 , 5 4 0 1 0 7 , 4 4 6 6 , 8 8 0 8 5 , 8 6 3 4 5 5 , 9 4 8 779,484 4 , 5 9 6 , 9 4 8 LI A B I L I T I E S A N D FU N D E Q U I T Y LI A B I L I T I E S Ac c o u n t s p a y a b l e 1 3 6 , 5 8 2 2 , 8 8 8 7 5 , 3 5 1 0 (3 2 ) 7 , 4 2 4 4 , 9 6 0 1 , 6 8 3 6 8 , 0 7 7 1 2 , 3 0 6 3 6 2 , 6 1 5 000 1,176 2 0 1 , 4 5 5 3 3 5 4 4 4 , 8 6 3 Ac c r u e d w a g e s 9 8 , 4 4 2 0 2, 7 6 5 0 33 3 1 0 , 6 2 2 00 0 18 9 , 1 0 5 1 0 9 , 3 3 0 4 7 3 1 4 0 , 5 9 9 3 , 7 9 0 1 , 9 1 7 1 , 7 9 0 6 , 0 3 4 00 565,200 Ac c r u e d e m p l o y e e b e n e f i t s 7 6 , 5 8 8 0 1, 9 2 4 0 68 0 12 2 00 13 1 , 0 7 5 4 3 , 6 2 8 4 3 1 1 3 , 4 3 4 3 , 7 5 0 1 , 0 9 1 1 , 6 7 8 1 , 2 7 2 0 374,673 In t e r f u n d p a y a b l e 00 0 0 0 0 0 10 2 , 2 5 0 1 8 7 , 6 4 5 6 , 6 0 3 1 8 3 , 2 8 7 0 104,438 3 , 4 1 2 7 7 , 3 8 1 00 665,016 To t a l l i a b i l i t i e s 3 1 1 , 6 1 2 2 , 8 8 8 4 , 6 9 6 5 , 3 5 1 40 1 1 0 , 5 9 0 7 , 5 4 6 4 , 9 6 0 1 , 68 3 4 9 0 , 5 0 7 3 5 2 , 9 0 9 7 , 1 5 5 4 3 9 , 935 7 , 5 4 0 1 0 7 , 4 4 6 6 , 8 8 0 85,863 2 0 1 , 4 5 5 3 3 5 2 , 0 4 9 ,752 FU N D E Q U I T Y No n s p e n d a b l e 1 1 7 , 3 5 1 117,351 Re s t r i c t e d 6 2 4 , 0 2 3 9 2 , 3 1 8 3 3 , 2 4 4 2 7 , 9 0 9 5 6 , 0 9 5 3 9 , 4 8 3 1 4 , 4 6 1 00 0 0 0 0 0 0 254,493 7 7 9 , 1 4 9 1 , 9 2 1 , 1 7 5 As s i g n e d 00 36 7 , 2 9 7 8 1 7 1 4 0 , 5 5 6 000 508,670 To t a l f u n d e q u i t y 7 4 1 , 3 7 4 9 2 , 3 1 8 3 3 , 2 4 4 3 6 7 , 2 9 7 2 7 , 9 0 9 8 1 7 1 9 6 , 6 5 1 3 9 , 4 8 3 1 4 , 4 6 1 0 0 0 0 0 0 0 0 2 5 4 , 4 9 3 7 7 9 , 1 4 9 2 , 5 4 7 , 1 9 6 To t a l l i a b i l i t i e s an d f u n d e q u i t y 1 , 0 5 2 , 9 8 6 9 5 , 2 0 6 3 7 , 9 4 0 3 7 2 , 6 4 8 2 8 , 3 1 0 1 1 , 4 0 7 2 0 4 , 1 9 7 4 4 , 4 4 3 1 6 , 1 4 4 4 9 0 , 5 0 7 3 5 2 , 9 0 9 7 , 1 5 5 4 3 9 , 9 3 5 7 , 5 4 0 1 0 7 , 4 4 6 6 , 8 8 0 8 5 , 8 6 3 4 5 5 , 948 7 7 9 , 4 8 4 4 , 5 9 6 , 9 4 8 Bo n n e v i l l e J o i n t S c h o o l D i s t r i c t # 9 3 Al l N o n m a j o r F u n d s Co m b i n i n g B a l a n c e S h e e t Ju n e 3 0 , 2 0 1 5 44 Pu b l i c I d a h o I m p r o v i n g P e r k i n s I I I I m p r o v i n g A l l Ch i l d F e d e r a l C o m m u n i t y S p e c i a l D r i v e r 's P r o f e s s i o n a l S c h o o l Su b s t a n c e T e l f o r d B a s i c M i g r a n t IDEA I D E A P r o f e s s i o n a l T e a c h e r C onstructio n C onstructio n N onmajo r N ut r i t i o n F o r e s t R e s o u r c e P r o j e c t s E d T e c h n i c a l T e c h n o l o g y Ab u s e G r a n t M e d i c a i d P r o g r a m s E d u c a t i o n S c h o o l - A g e P r e s c h o o l T e c h n i c a l T i t l e I I I Q u a l i t y 2009 2 0 1 2 F u n d s RE V E N U E S Ea r n i n g s o n i n v e s t m e n t s 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,187 1 , 9 2 9 3 , 1 1 6 Fo o d s e r v i c e 8 6 7 , 8 0 4 867,804 Ot h e r l o c a l 2 , 7 0 8 0 16 , 8 7 5 4 7 , 7 3 0 2 2 , 6 9 5 0 0 0 0 0 0 0 0 0 0 0 0 0 90,008 Ot h e r s t a t e r e v e n u e 00 0 0 0 19 5 , 1 7 0 4 6 9 , 8 8 5 7 3 , 9 7 1 0 2, 1 8 6 , 0 5 8 0 0 0 0 0 0 0 0 0 2,925,084 Fe d e r a l g r a n t s a n d a s s i s t a n c e 2 , 5 4 8 , 9 4 2 5 2 , 9 8 7 1 5 , 1 1 1 3 3 , 4 2 3 00 0 0 0 1, 3 9 4 , 1 4 6 4 7 , 0 3 3 1 , 7 9 6 , 9 8 8 6 0 , 7 2 4 1 0 7 , 4 4 5 3 1 , 0 1 4 2 2 9 , 1 7 9 00 6,316,992 To t a l r e v e n u e s 3 , 4 1 9 , 4 5 4 5 2 , 9 8 7 3 1 , 9 8 6 8 1 , 1 5 3 2 2 , 6 9 5 1 9 5 , 1 7 0 4 6 9 , 8 8 5 7 3 , 9 7 1 0 2 , 1 8 6 , 0 5 8 1 , 3 9 4 , 1 4 6 4 7 , 0 3 3 1 , 7 9 6 , 9 8 8 6 0 , 7 2 4 1 0 7 , 4 4 5 3 1 , 0 1 4 2 2 9 , 1 7 9 1,187 1 , 9 2 9 1 0 , 2 0 3 , 0 0 4 EX P E N D I T U R E S In s t r u c t i o n El e m e n t a r y 1, 3 0 0 0 13 , 5 7 3 00 1, 4 3 8 00 62 9 , 0 0 1 0 0 0 0 4,502 0 223,413 9 , 3 8 2 8 8 2 , 6 0 9 Se c o n d a r y 00 9, 3 6 9 00 1, 0 0 0 00 38 , 3 7 0 0 0 0 0 19,749 0 15,036 0 83,524 Al t e r n a t i v e s c h o o l 2 , 2 4 7 8 1 , 5 0 6 2 , 8 8 4 86,637 Sp e c i a l e d u c a t i o n p r o g r a m 00 0 0 0 0 0 0 62 8 , 8 4 0 00 1,072,914 1 5 , 1 5 7 00 0 0 0 1,716,911 Sp e c i a l e d u c p r e s c h o o l p r o g r a m 00 0 0 0 0 0 0 0 0 0 38,069 00 0 0 0 38,069 Sc h o o l a c t i v i t y 3 8 , 9 2 4 38,924 Su m m e r s c h o o l 0 43 7 , 4 3 5 2 , 0 4 1 4 , 0 0 3 4 4 3 , 4 7 9 Vo c a t i o n a l 0 21 5 , 1 1 0 82,209 2 9 7 , 3 1 9 Su p p o r t s e r v i c e s At t e n d a n c e , g u i d a n c e , a n d h e a l t h 00 0 0 0 78 3 0 5, 4 4 2 00 48,981 000 0 0 0 55,206 Sp e c i a l e d u c s u p p o r t s e r v i c e s 00 0 0 0 0 1, 5 5 1 , 7 7 6 00 674,842 7 , 4 9 8 00 0 0 0 2,234,116 In s t r u c t i o n a l i m p r o v e m e n t 00 2, 6 9 3 00 4, 3 3 2 4 , 0 3 3 0 13 3 , 5 5 9 0 251 00 1,625 2 1 0 , 1 8 5 0 356,678 Ed u c a t i o n a l m e d i a 7 , 9 9 8 11,145 1 9 , 1 4 3 In s t r u c t i o n a l r e l a t e d t e c h n o l o g y 3, 5 7 6 2 , 5 1 3 3 1 1 , 0 4 6 317,135 Sc h o o l a d m i n i s t r a t i o n 00 20 8 0 9, 1 9 5 0 1, 7 4 0 00 40 , 1 4 4 000 24,956 0 10,604 00 86,847 Bu s i n e s s A d m i n i s t r a t i v e S e r v i c e s 00 0 10 3 0 74 , 6 8 3 00 0 0 0 0 0 0 0 0 74,786 Op e r a t i o n s 1 6 , 4 5 3 0 22 5 0 25 , 1 9 5 0 5, 4 9 7 000 280 000 847 4 8 , 4 9 7 Tr a n s p o r t a t i o n 00 79 1 0 791 Ot h e r s u p p o r t s e r v i c e s 30 , 9 1 6 4 3 , 2 7 0 74,186 Co m m u n i t y s e r v i c e s 0 28 , 2 7 4 1 , 0 2 8 2 5 , 0 3 1 00 26 , 4 8 1 0 0 0 0 0 0 0 80,814 N on i n s t r u c t i o n a l s e r v i c e s 3 , 6 3 2 , 4 8 3 7 , 6 7 6 0 0 0 0 0 0 0 0 0 0 0 3,640,159 Fa c i l i t y a c q u i s i t i o n 0 28 , 0 6 1 218,254 1 0 0 , 5 8 7 3 4 6 , 9 0 2 To t a l e x p e n d i t u r e s 3 , 6 3 2 , 4 8 3 4 0 , 2 2 4 2 8 , 2 7 4 6 5 , 7 1 5 2 5 , 0 3 1 2 2 7 , 0 4 3 4 1 3 , 7 9 0 3 4 , 4 8 8 8 5 , 5 3 9 2 , 1 8 6 , 0 5 8 1 , 3 4 4 , 2 8 7 4 5 , 3 1 1 1 , 7 9 6 , 9 8 8 6 0 , 7 2 4 1 0 7 , 4 4 5 2 9 , 8 79 2 2 0 , 7 8 9 4 5 6 , 7 0 3 1 2 1 , 9 6 1 1 0 , 9 2 2 , 7 3 2 Re v e n u e s o v e r ( u n d e r ) e x p e n d i t u r e s ( 2 1 3 , 0 2 9 ) 1 2 , 7 6 3 3 , 7 1 2 1 5 , 4 3 8 ( 2 , 3 3 6 ) ( 3 1 , 8 7 3 ) 5 6 , 0 9 5 3 9 , 4 8 3 ( 8 5 , 5 3 9 ) 0 4 9 , 8 5 9 1 , 7 2 2 0 0 0 1 , 1 3 5 8 , 3 9 0 ( 4 5 5 , 5 1 6) ( 1 2 0 , 0 3 2 ) ( 7 1 9 , 7 2 8 ) OT H E R F I N A N C I N G SO U R C E S ( U S E S ) N et t r a n s f e r s 4 , 8 1 4 00 0 0 0 0 0 0 (4 9 , 8 5 9 ) ( 1 , 7 2 2 ) 000 (1,135) ( 8 , 3 9 0 ) 00 (56,292) To t a l o t h e r f i n a n c i n g s o u r c e s 4 , 8 1 4 0 0 0 0 0 0 0 0 0 ( 4 9 , 8 5 9 ) ( 1 , 7 2 2 ) 0 0 0 ( 1 , 1 3 5 ) ( 8 , 3 9 0 ) 0 0 ( 5 6 , 2 9 2 ) Re v e n u e s a n d o t h e r f i n a n c i n g s o u n c e s ov e r ( u n d e r ) e x p e n d i t u r e s a n d o t h e r fi n a n c i n g s o u r c e s ( u s e s ) ( 2 0 8 , 2 1 5 ) 1 2 , 7 6 3 3 , 7 1 2 1 5 , 4 3 8 ( 2 , 3 3 6 ) ( 3 1 , 8 7 3 ) 5 6 , 0 9 5 3 9 , 4 8 3 ( 8 5 , 5 3 9 ) 00 0 0 0 0 0 0 (455,516) ( 1 2 0 , 0 3 2 ) ( 7 7 6 , 0 2 0 ) Fu n d b a l a n c e - J u l y 1 , 2 0 1 4 9 4 9 , 5 8 9 7 9 , 5 5 5 2 9 , 5 3 2 3 5 1 , 8 5 9 3 0 , 2 4 5 3 2 , 6 9 0 1 4 0 , 5 5 6 0 10 0 , 0 0 0 00 0 0 0 0 0 0 710,009 8 9 9 , 1 8 1 3 , 3 2 3 , 2 1 6 Fu n d b a l a n c e - J u n e 3 0 , 2 0 1 5 7 4 1 , 3 7 4 9 2 , 3 1 8 3 3 , 2 4 4 3 6 7 , 2 9 7 2 7 , 9 0 9 8 1 7 1 9 6 , 6 5 1 3 9 , 4 8 3 1 4 , 4 6 1 0 0 0 0 0 0 0 0 2 5 4 , 4 9 3 7 7 9 , 1 4 9 2 , 5 4 7 , 1 9 6 Fi s c a l Y e a r E n d e d J u n e 3 0 , 2 0 1 5 Bo n n e v i l l e J o i n t S c h o o l D i s t r i c t # 9 3 Al l N o n m a j o r F u n d s Co m b i n i n g S t a t e m e n t o f R e v e n u e s , E x p e n d i t u r e s , a n d C h a n g e s i n F u n d B a l a n c e 45 This page intentionally left blank. Balance Balance ASSETS June 30, 2014 Receipts Disbursements June 30, 2015 Cash Bonneville High School 111,148 786,527 771,968 125,707 Hillcrest High School 206,255 793,884 682,964 317,175 Rocky Mountain Middle School 59,836 175,506 165,317 70,025 Sandcreek Middle School 112,557 132,535 113,519 131,573 Lincoln High School 35,401 12,440 7,871 39,970 Ammon Elementary School 10,147 15,664 12,289 13,522 Bridgewater Elementary 11,796 11,017 3,855 18,958 Cloverdale Elementary School 9,234 27,710 23,430 13,514 Discovery Elementary 30,361 16,338 9,734 36,965 Fairview Elementary School 21,758 13,879 17,974 17,663 Hillview Elementary School 41,846 18,911 17,841 42,916 Falls Valley Elementary School 4,041 16,572 8,201 12,412 Iona Elementary School 19,865 19,644 13,847 25,662 Mountain Valley Elementary 15,775 34,188 29,170 20,793 Rimrock Elementary School 18,579 29,794 24,312 24,061 Summit Hills Elementary School 2,725 16,235 10,975 7,985 Technical Careers High School 6,826 52,615 42,692 16,749 Telford Academy 356 381 737 0 Tiebreaker Elementary School 20,062 26,589 23,872 22,779 Ucon Elementary School 7,778 17,633 13,363 12,048 Woodland Hills Elementary School 27,292 20,853 17,573 30,572 Total cash 773,638 2,238,915 2,011,504 1,001,049 Investments Bonneville High School 242,759 53 242,812 Hillcrest High School 185,452 1,193 184,259 Rocky Mountain Middle School 20,648 38 20,686 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 Telford Academy Tiebreaker Elementary School Ucon Elementary School Woodland Hills Elementary School Total investments 448,859 91 1,193 447,757 Total assets 1,222,497 2,239,006 2,012,697 1,448,806 Bonneville Joint School District #93 All Agency Funds Combining Schedule of Changes in Assets and Liabilities Fiscal Year Ended June 30, 2015 46 Balance Balance LIABILITIES June 30, 2014 Increases Decreases June 30, 2015 Accounts payable Bonneville High School 36,926 30,375 67,301 Hillcrest High School 23,465 80,254 103,719 Rocky Mountain Middle School 7,685 5,835 13,520 Sandcreek Middle School 641 (1,707) (1,066) Lincoln High School 5,200 7 5,207 Ammon Elementary School 208 254 462 Bridgewater Elementary 1,830 2,088 3,918 Cloverdale Elementary School 6,990 2,728 9,718 Discovery Elementary 4,607 11,264 15,871 Fairview Elementary School 1,055 3,373 4,428 Hillview Elementary School 4,536 5,791 10,327 Falls Valley Elementary School 934 5,914 6,848 Iona Elementary School 138 5,123 5,261 Mountain Valley Elementary 313 6,928 7,241 Rimrock Elementary School 1,277 4,455 5,732 Summit Hills Elementary School 2,950 1,371 4,321 Technical Careers High School 0 7,865 7,865 Telford Academy 142 (142) 0 Tiebreaker Elementary School 241 6,919 7,160 Ucon Elementary School 600 6,346 6,946 Woodland Hills Elementary School 2,414 3,573 5,987 Total accounts payable 102,152 188,614 0 290,766 Due to student groups Bonneville High School 316,981 786,580 802,343 301,218 Hillcrest High School 368,242 793,884 764,411 397,715 Rocky Mountain Middle School 72,799 175,544 171,152 77,191 Sandcreek Middle School 111,916 132,535 111,812 132,639 Lincoln High School 30,201 12,440 7,878 34,763 Ammon Elementary School 9,939 15,664 12,543 13,060 Bridgewater Elementary 9,966 11,017 5,943 15,040 Cloverdale Elementary School 2,244 27,710 26,158 3,796 Discovery Elementary 25,754 16,338 20,998 21,094 Fairview Elementary School 20,703 13,879 21,347 13,235 Hillview Elementary School 37,310 18,911 23,632 32,589 Falls Valley Elementary School 3,107 16,572 14,115 5,564 Iona Elementary School 19,727 19,644 18,970 20,401 Mountain Valley Elementary 15,462 34,188 36,098 13,552 Rimrock Elementary School 17,302 29,794 28,767 18,329 Summit Hills Elementary School (225) 16,235 12,346 3,664 Technical Careers High School 6,826 52,615 50,557 8,884 Telford Academy 214 381 595 0 Tiebreaker Elementary School 19,821 26,589 30,791 15,619 Ucon Elementary School 7,178 17,633 19,709 5,102 Woodland Hills Elementary School 24,878 20,853 21,146 24,585 Total due to student groups 1,120,345 2,239,006 2,201,311 1,158,040 Total liabilities 1,222,497 2,427,620 2,201,311 1,448,806 Bonneville Joint School District #93 All Agency Funds Combining Schedule of Changes in Assets and Liabilities Fiscal Year Ended June 30, 2015 47 2013 Total 2014 and prior 192,315 192,315 ADDITIONS 4,316,786 4,316,786 2,792 4,327 (1,535) 4,319,578 4,321,113 (1,535) DEDUCTIONS 2,756,695 2,646,193 110,502 1,572,464 1,565,477 6,987 4,329,159 4,211,670 117,489 182,734 109,443 73,291 Roll charges applicable to 2014 Subsequent additions and cancellations Unearned balance at July 1, 2014 Total deductions Unearned balance at June 30, 2015 Total additions Collections received Current amount due on taxes collected by the counties General Fund Bonneville Joint School District #93 Fiscal Year Ended June 30, 2015 Taxes Receivable 48 2013 2013 Total 2014 and prior Total 2014 and prior 265,236 265,236 106,628 106,628 5,540,988 5,540,988 2,810,967 2,810,967 3,189 5,556 (2,367) 2,090 2,819 (729) 5,544,177 5,546,544 (2,367) 2,813,057 2,813,786 (729) 3,517,321 3,381,489 135,832 1,778,548 1,708,033 70,515 2,011,690 2,003,412 8,278 1,028,153 1,023,753 4,400 5,529,011 5,384,901 144,110 2,806,701 2,731,786 74,915 280,402 161,643 118,759 112,984 82,000 30,984 Debt Service Fund Capital Projects Fund Bonneville Joint School District #93 Taxes Receivable Fiscal Year Ended June 30, 2015 49 This page intentionally left blank. Single Audit Section Bonneville Joint School District #93 June 30, 2015 50 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 of America and the standards applicable to the financial audits contain 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, 2015, 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 27, 2015. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Bonneville Joint School District #93’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our 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 Bonneville Joint School District #93’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or 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 determination of financial statement amounts. Wipfli LLP 1220 Whitewater Drive Idaho Falls, ID 83402-4959 208.523.5953 fax 208.523.8995 www.wipfli.com 51 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. We noted certain matters that we reported to management of Bonneville Joint School District #93 in a separate letter dated October 27, 2015. 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 entity’s internal control and compliance. Accordingly this communication is not suitable for any other purpose. Wipfli LLP CPAs and Consultants Idaho Falls, Idaho October 27, 2015 52 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 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) Circular A-133 Compliance Supplement that could have a direct and material effect on each of Bonneville Joint School District #93’s major federal programs for the year ended June 30, 2015. Bonneville Joint School District #93’s major federal program is 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 program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about 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 each major federal program. However, our audit does not provide a legal determination of Bonneville Joint School District #93’s compliance. Opinion on Each Major Federal Program In our opinion, Bonneville Joint School District #93 complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2015. Wipfli LLP 1220 Whitewater Drive Idaho Falls, ID 83402-4959 208.523.5953 fax 208.523.8995 www.wipfli.com 53 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 type of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of 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 requirements 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 on internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly this report is not suitable for any other purpose. Wipfli LLP CPAs and Consultants Idaho Falls, Idaho October 27, 2015 Bonneville Joint School District #93 Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2015 54 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 section 510(a) of Circular A-133? Yes X No Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster 84.027/84.173 Special Education Cluster Dollar threshold used to distinguish between type A and type B programs: $300,000 Auditee qualified as low-risk auditee? X Yes No Bonneville Joint School District #93 Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2015 55 SECTION II - FINDINGS - FINANCIAL STATEMENT AUDITS None SECTION III - FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT None Bonneville Joint School District #93 Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2015 56 Federal Pass-Through CFDA Entity Identifying Federal Grantor / Pass-Through Grantor / Program Title Number Number Expenditures United States Department of Education Passed Through the Idaho State Department of Education Title I Grants to Local Educational Agencies 84.010 S010A140012 1,394,146 Migrant Education - Basic State Grant Program 84.011 S011A130012 47,033 English Language Acquisition 84.365 S365A130012 31,014 Improving Teacher Quality 84.367 S367A140011 229,179 Subtotal 1,701,372 Special Education Cluster Special Education – School-age 84.027 H027A140088 1,796,988 Special Education – Preschool 84.173 H173A140030 60,723 Total Special Education Cluster 1,857,711 Total Passed Through the Idaho State Department of Education 3,559,083 Passed Through the State Division of Professional-Technical Vocational Education - Basic Grants to States 84.048 V048A130012 107,446 Total U.S. Department of Education 3,666,529 United States Department of Agriculture Passed Through the State Department of Education: Child Nutrition Cluster School Breakfast Program 10.553 2015IN109947 389,368 National School Lunch Program-cash 10.555 2015IN109947 1,792,487 National School Lunch Program-commodities 10.555 2015IN109947 282,071 Summer Food Service Program for Children 10.559 2015IN109947 45,535 Total Child Nutrition Cluster 2,509,461 Fresh Fruit and Vegetable Program 10.582 2015CL160347 42,791 Total Passed Through the State Department of Education 2,552,252 Passed Through Bonneville County Federal Forest 10.665 40,224 Total U.S. Department of Agriculture 2,592,476 Bonneville Joint School District #93 Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2015 57 Federal Pass-Through CFDA Entity Identifying Federal Grantor / Pass-Through Grantor / Program Title Number Number Expenditures United States Department of Transportation Passed Through the State Department of Transportation: Highway Planning and Construction 20.205 A011(514) 36,949 Total U.S. Department of Transportation 36,949 United States Department of Health and Human Services Passed Through the State Department of Health & Welfare: Temporary Assistance for Needy Families 93.558 1202IDTANF 15,111 Total U.S. Department of Health and Human Services 15,111 Total expenditures of federal awards 6,311,065 Bonneville Joint School District #93 Notes to Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2015 58 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, 2015. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non- Profit Organizations. 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 OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, 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, 2015. Bonneville Joint School District #93 Summary Schedule of Prior Year Audit Findings Fiscal Year Ended June 30, 2015 59 Audit Finding Reference: none Status of Prior Audit Finding: none