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Bergen Countv Technical Schools .Bergen Countv Technical Schools A Component Unit of The County of Bergen Comprehensive Annual Financial Report For The Fiscal Year Ended JUNE 30, 2015 BERGEN COUNTY, NEW JERSEY COMPREHENSIVE ANNUAL FINANCIAL REPORT ofthe Bergen County Technical and Vocational High School Board of Education New Jersey For The Fiscal Year Ended June 30, 2015 Prepared by Business Department BERGEN COUNTY TECHNICAL AND VOCATIONAL IDGH SCHOOL DISTRICT TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal 1-5 Organizational Chart 6 Roster of Officials 7 Consultants and Advisors 8 FINANCIAL SECTION Independent Auditor's Report 9-11 REQUIRED SUPPLEMENTARY INFORMATION-PART I Management's Discussion and Analysis 12-26 Basic Financial Statements A. District-wide Financial Statements A-1 Statement of Net Position 27 A-2 Statement of Activities 28 B. Fnnd Financial Statements Governmental Funds B-1 Balance Sheet 29 B-2 Statement of Revenues, Expenditures, and Changes in Fund Balances 30 B-3 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 31 Proprietmy Funds B-4 Statement of Net Position 32 B-5 Statement of Revenues, Expenses, and Changes in Fund Net Position 33 B-6 Statement of Cash Flows 34 Fiduciary Funds B-7 Statement of Fiduciary Net Position 35 B-8 Statement of Changes in Fiduciary Net Position 36 Notes to the Financial Statements 37-68 BERGEN COUNTY TECHNICAL AND VOCATIONAL HIGH SCHOOL DISTRICT TABLE OF CONTENTS REQUIRED SUPPLEMENTARY INFORMATION- PART II C. Budgetary Comparison Schedules C-1 Budgetary Comparison Schedule- General Fund 69-74 C-2 Budgetary Comparison Schedule- Special Revenue Fund 75 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION- PART II C-3 Budgetary Comparison Schedule- Notes to the Required Supplementary Information 76 REQUIRED SUPPLEMENTARY INFORMATION- PART III L. Schedules Related to Accounting and Reporting for Pensions (GASB 68) L-1 Required Supplementary Information- Schedule of the District's Proportionate Share of the Net Pension Liability- Public Employees Retirement System 77 L-2 Required Supplementary Information- Schedule of District Contributions- Public Employees Retirement System 78 L-3 Required Supplementary Information- Schedule of the District's Proportionate Share of the Net Pension Liability- Teachers Pension and Annuity Fund 79 Notes to Required Supplementary Information 80 OTHER SUPPLEMENTARY INFORMATION D. School Level Schedules (NOT APPLICABLE) E. Special Revenue Fund E-1 Combining Schedule of Revenues and Expenditures Special Revenue Fund- Budgetary Basis 81-84 E-2 Preschool Education Aid Schedule of Expenditures- Budgetary Basis- N/A 85 F Capital Projects Fund F-1 Summary Statement of Project Expenditures 86 F-2 Summary Schedule of Revenues, Expenditures and Changes In Fund Balance- Budgetary Basis 87 G. Proprietary Funds Enterprise Fund G-1 Combining Statement of Net Position 88 G-2 Statement of Revenues, Expenses and Changes in Fund Net Position 89 G-3 Statement of Cash Flows 90 BERGEN COUNTY TECHNICAL AND VOCATIONAL HIGH SCHOOL DISTRICT TABLE OF CONTENTS G. Proprietary Funds (Continued) Internal Service Fund G-4 Combining Statement of Net Position 91 G-5 Combining Statement of Revenues, Expenses and Changes in Fund Net Position 92 G-6 Combining Statement of Cash Flows 93 H. Fiduciary Funds H-1 Combining Statement of Fiduciary Assets and Liabilities 94 H-2 Statement of Changes in Fiduciary Net Position- Not Applicable 95 H-3 Student Activity Agency Fund Schedule of Receipts and Disbursements 96 H-4 Payroll Agency Fund Schedule of Receipts and Disbursements 97 I. Long-Term Debt I-1 Schedule of Payable Bonds- Not Applicable 98 I-2 Schedule of Obligations under Capital Leases 99 I-3 Debt Service Fund Budgetary Comparison Schedule­ 100 Not Applicable J. STATISTICAL SECTION (Unaudited) J-1 Net Position by Component 101 J-2 Changes in Net Position 102-103 J-3 Fund Balances- Governmental Funds 104 J-4 Changes in Fund Balances- Govenunental Funds 105 J-5 Other Local Revenues - General Fund by Source 106 J-6 Assessed Value and Actual Value of Taxable Property 107 J-7 Direct and Overlapping Property Tax Rates 108 J-8 Principal Property Taxpayers 109 J-9 Property Tax Levies and Collections 110 J-10 Ratios of Outstanding Debt by Type 111 J-11 Ratios of Net General Bonded Debt Outstanding- Not Applicable 112 J-12 Direct and Overlapping Governmental Activities Debt 113 J-13 Legal Debt Margin Information 114 J-14 Demographic and Economic Statistics 115 J-15 Principal Employers 116 J-16 Full-Time Equivalent District Employees by Function/Program 117 J-17 Operating Statistics 118 J-18 School Building Information 119 J-19 Schedule of Required Maintenance for School Facilities 120 J-20 Schedule of Insurance 121 BERGEN COUNTY TECHNICAL AND VOCATIONAL HIGH SCHOOL DISTRICT TABLE OF CONTENTS K. SINGLE AUDIT SECTION K-1 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- Independent Auditor's Report 122-123 K-2 Report on Compliance for each Major Federal and State Program; Report On Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by U.S. OMB Circular A-133 And Schedule of Expenditures of State Financial Assistance as Required By New Jersey OMB Circular 15-08- Independent Auditor's Report 124-126 K-3 Schedule of Expenditures of Federal Awards 127-128 K-4 Schedule of Expenditures of State Financial Assistance 129-130 K-5 Notes to the Schedules of Expenditures of Federal Awards and State Financial Assistance 131-132 K-6 Schedule of Findings and Questioned Costs 133-137 K-7 Summary Schedule of Prior Audit Findings 138 INTRODUCTORY SECTION BERGEN COUNTY TECHNICAL SCHOOLS/ SPECIAL SERVICES District Administration Office 540 Farview Avenue, Paramus, New Jersey 07652 o Tel. (201) 343-6000 ext. 4056 • Fax (201) 996-6978 • Email: [email protected] December 17, 2015 Honorable President and Members of the Board of Education Bergen Co~mty Technical and Vocational High School County of Bergen, New Jersey Dear Board Members: State Department of Education statutes require that all general-purpose local governments publish within five months of the close of each fiscal year a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America (GAAP) and audited in accordance with auditing standards generally accepted in the United States of America by a ·firm of licensed ce1tified public accountants. Pmsuant to that requirement, we hereby issue the comprehensive annual financial rep01t of the Bergen County Technical and Vocational High School District for the tiscai year ended June 30,2015. This repot1 coi1sists of management's representations concerning the finances of the Bergen County Technical and Vocational High School District. Consequently, management assumes full responsibility for tl1e completeness and reliability of all of the information presented in this repott. To provide a reasonable basis for making these representations, management of the Bergen County Technical and Vocational High School District has established a comprehensive internal control framework that is designed both to protect_t he School District's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Bergen County Technical and Vocational High School District's financial statements in confoi·mity with GAAP. Because the cost of intemal controls should not outweigh their benefits, the Bergen County Technical and Vocational High School Dist1'ict's comprehensive framework or intemal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial repm1 is complete and reliable in all material respects. The Bergen County Technical and Vocational High School District's financial statements have been audited by Lerch, Vinci & Higgins, LLP, a ftrm of licensed cett ified public accountants and public school accountants. The goal of the independent audit was to provide reasonable assui'ance that the financial statements of the Bergen County Technical and Vocational High School District for the fiscal year ended June 30, 201 5, are fi·ee of material misstatement. The independent audit involved exami ning, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon th~ audit, that there was a teasonable basis for rendering an unmodified opinion that the Bergen County Technical and Vocational High School District's financial statements for the fiscal year ended June 30, 2015, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the Bergen County Technical and Vocational High School District was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grant agencies. The stan~dards goveming Single Audit engagements require the independent auditor to report not only on
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