State of New Mexico Las Cruces Public School District No. 2 Financial
Total Page：16
File Type：pdf, Size：1020Kb
STATE OF NEW MEXICO LAS CRUCES PUBLIC SCHOOL DISTRICT NO. 2 FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2018 CliftonLarsonAllen LLP WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING STATE OF NEW MEXICO LAS CRUCES PUBLIC SCHOOL DISTRICT NO. 2 TABLE OF CONTENTS YEAR ENDED JUNE 30, 2018 OFFICIAL ROSTER 1 INDEPENDENT AUDITORS’ REPORT 2 MANAGEMENT’S DISCUSSION AND ANALYSIS 5 FINANCIAL STATEMENTS STATEMENT OF NET POSITION 13 STATEMENT OF ACTIVITIES 15 BALANCE SHEET – GOVERNMENTAL FUNDS 16 RECONCILIATION OF THE BALANCE SHEET – GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION 17 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 18 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 19 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND (11000) 20 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – PUPIL TRANSPORTATION SPECIAL REVENUE FUND (13000) 21 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – INSTRUCTIONAL MATERIALS SPECIAL REVENUE FUND (14000) 22 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – TITLE I IASA SPECIAL REVENUE FUND (24101) 23 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – ENTITLEMENT IDEA-B SPECIAL REVENUE FUND (24106) 24 STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES – AGENCY FUNDS 25 NOTES TO FINANCIAL STATEMENTS 26 REQUIRED SUPPLEMENTARY INFORMATION (i) STATE OF NEW MEXICO LAS CRUCES PUBLIC SCHOOL DISTRICT NO. 2 TABLE OF CONTENTS YEAR ENDED JUNE 30, 2018 SCHEDULE OF THE DISTRICT’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY 59 SCHEDULE OF THE DISTRICT’S CONTRIBUTIONS 59 SCHEDULE OF THE DISTRICT’S PROPORTIONATE SHARE OF THE NET OPEB LIABILITY 60 SCHEDULE OF THE DISTRICT’S CONTRIBUTIONS 60 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 61 SUPPLEMENTARY INFORMATION COMBINING BALANCE SHEET – NONMAJOR GOVERNMENTAL FUNDS 62 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – NONMAJOR GOVERNMENTAL FUNDS 63 SPECIAL REVENUE FUNDS 64 CAPITAL PROJECTS FUNDS 69 COMBINING BALANCE SHEET – NONMAJOR SPECIAL REVENUE FUNDS 70 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – NONMAJOR SPECIAL REVENUE FUNDS 78 SCHEDULE OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES – AGENCY FUNDS (REQUIRED BY 2.2.2 NMAC) 86 SCHEDULE OF COLLATERAL PLEDGED BY DEPOSITORY FOR PUBLIC FUNDS (REQUIRED BY 2.2.2 NMAC) 87 SCHEDULE OF CASH AND TEMPORARY INVESTMENTS (REQUIRED BY 2.2.2 NMAC) 88 CASH RECONCILIATION SCHEDULE (REQUIRED BY 2.2.2 NMAC) 89 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 91 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 93 REPORT OF INDEPENDENT AUDITORS 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 94 (ii) STATE OF NEW MEXICO LAS CRUCES PUBLIC SCHOOL DISTRICT NO. 2 TABLE OF CONTENTS YEAR ENDED JUNE 30, 2018 REPORT OF INDEPENDENT AUDITORS ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 96 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 99 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 107 EXIT CONFERENCE 108 (iii) STATE OF NEW MEXICO LAS CRUCES PUBLIC SCHOOL DISTRICT NO. 2 OFFICIAL ROSTER JUNE 30, 2018 Board of Education Ed Frank President Terrie Dallman Vice President Ray Jaramillo Secretary Maria Flores Member Maury Castro Member School Officials Dr. Gregory Ewing Superintendent Ed Ellison Chief Financial Officer Melissa Zuniga Controller (1) CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT Board of Education State of New Mexico Las Cruces Public School District No. 2 and Mr. Wayne Johnson, New Mexico State Auditor Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, the budgetary comparisons for the general fund and each major special revenue fund and the aggregate remaining fund information of the Las Cruces Public School District No. 2 (the District), as of and for the year ended June 30, 2018, 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 these 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 or error. Auditors’ 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 from 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 auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. (2) Board of Education State of New Mexico Las Cruces Public School District No. 2 and Mr. Wayne Johnson, New Mexico State Auditor 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 the District as of June 30, 2018 and the budgetary comparisons for the general fund and each major special revenue fund 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. Emphasis of Matter During fiscal year ended June 30, 2018, the District adopted GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. As a result of the implementation of this standard, the District reported a restatement for the change in accounting principle (See Note 15). Our auditors’ opinion was not modified with respect to the restatement. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 5 through 11, the Schedules of Proportionate Share of the Net Pension Liability/Contributions starting on page 59, and the Schedules of Proportionate Share of the Net OPEB Liability/Contributions starting on page 60 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 basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal