Blue Valley Unified School District No. 229 Overland Park, Kansas 66283 Comprehensive Annual Financial Report For the fiscal year ending June 30, 2019 %/8((9$//(<81,),('6&+22/',,675,&7122 29((5/$1'3$$5..$16$6 &RPSUHKHQVLYH$QQQXDO)LQDQFFLDO5HSRUW )RUWKH)LVFDO<HDU((QGHG-XQ H9 3UHSDUHGE\ %XVLQHVVDQG)LQDQFH2IILFH -HQQL1HZZHOO 7UHDVXUHUU BLUE VALLEY UNIFIED SCHOOL DISTRICT NO. 229 Financial Statements and Schedule of Expenditures of Federal Awards Year ended June 30, 2019 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal 1 – 4 List of Principal Officials 5 FINANCIAL SECTION Independent Auditor’s Report 6 - 7 Management’s Discussion and Analysis 8 - 16 Basic Financial Statements: Government-wide Financial Statements Statement of Net Position 17 Statement of Activities 18 Fund Financial Statements Balance Sheet - Governmental Funds 19 - 20 Reconciliation of the Total Governmental Fund Balance Sheet to Net Position of Governmental Activities 21 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 22 - 23 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures And Changes in Fund Balances with the Government - Wide Statement of Activities 24 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Non-GAAP Basis) General Fund 25 Supplemental General Fund 26 Special Education Fund 27 KPERS Fund 28 Capital Outlay Fund 29 Statement of Fiduciary Net Position 30 Notes to the Basic Financial Statements 31 - 56 Required Supplementary Information: Other Post-Employment Benefits Schedule of Changes in the District’s Total OPEB Liability and Related Ratios 57 BLUE VALLEY UNIFIED SCHOOL DISTRICT NO. 229 Financial Statements and Schedule of Expenditures of Federal Awards Year ended June 30, 2019 TABLE OF CONTENTS Page FINANCIAL SECTION - CONTINUED Other Post-Employment Benefits (KPERS) Schedule of Changes in the District’s Total OPEB Liability and Related Ratios 58 KPERS Pension Plan Schedule of District’s Proportionate Share of the Net Pension Liability 59 Schedule of District Contributions 59 Combining Statements and Individual Fund Schedules Combining Statements - Nonmajor Funds Fund Descriptions 60 - 61 Combining Balance Sheet - Nonmajor Special Revenue Funds 62 - 65 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds 66 - 69 Individual Fund Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non-GAAP Basis): Vocational Education Fund 70 At Risk (K-12) Fund 71 Professional Development Fund 72 Special Assessment Fund 73 Food Service Fund 74 Bilingual Education Fund 75 Virtual Education Fund 76 Summer School Fund 77 Parent Education Program Fund 78 Extraordinary School Program Fund 79 Federal Funds 80 - 81 Gifts and Grants Funds 82 - 83 Special Liability Fund 84 Debt Service Fund 85 Combining Statement of Net Position - Agency Funds 86 Statement of Changes in Assets and Liabilities 87 STATISTICAL SECTION Explanation and Table of Contents 88 Net Position by Component - Last Ten Fiscal Years 89 Expense, Program Revenues, and Net [Expense]/Revenue - Last Ten Fiscal Years 90 BLUE VALLEY UNIFIED SCHOOL DISTRICT NO. 229 Financial Statements and Schedule of Expenditures of Federal Awards Year ended June 30, 2019 TABLE OF CONTENTS - CONTINUED Page STATISTICAL SECTION - CONTINUED General School System Revenues and Total Change in Net Position - Last Ten Fiscal Years 91 Fund Balances, Governmental Funds - Last Ten Fiscal Years 92 Governmental Funds Revenues - Last Ten Fiscal Years 93 - 94 Governmental Funds Expenditures and Debt Service Ratio - Last Ten Fiscal Years 95 - 96 Other Financing Sources and Uses and Net Change in Fund Balances - Last Ten Fiscal Years 97 Assessed and Estimated Actual Value of Taxable Property - Last Ten Tax Years 98 - 99 Property Tax Rates (Per $1,000 of Assessed Valuation) Direct and Overlapping Governments - Last Ten Tax Years 100 – 101 Principal Taxpayers June 30, 2019 and Nine Years Ago 102 Property Tax Levies and Collections - Last Ten Years 103 - 104 Outstanding Debt by Type - Last Ten Fiscal Years 105 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 106 - 107 Computation of Direct and Overlapping Debt 108 Computation of Legal Debt Margin - Last Ten Fiscal Years 109 Demographic Statistics - Last Ten Fiscal Years 110 - 111 Principal Employers - June 30, 2019 and 2010 112 Directory of School Facilities 113 Miscellaneous Statistical Data 114 Operating Statistics - Last Ten Fiscal Years 115 Sources of Revenue 116 Financial Overview of the District 117 BLUE VALLEY UNIFIED SCHOOL DISTRICT NO. 229 Financial Statements and Schedule of Expenditures of Federal Awards Year ended June 30, 2019 TABLE OF CONTENTS - CONTINUED Page GOVERNMENTAL AUDIT SECTION Schedule of Expenditures of Federal Awards 118 Notes to Schedule of Expenditures of Federal Awards 119 Schedule of Findings and Questioned Costs 120 - 121 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” 122 - 123 Independent Auditor’s Report on Compliance for Each Major Program And on Internal Control over Compliance Required by the Uniform Guidance 124 - 125 ,1752'8&725<6(&7,21 Blue Valley Schools 15020 Metcalf - P.O. Box 23901 - Overland Park, Kansas 66283-0901 - 913 239-4000 September 18, 2019 TO THE CITIZENS AND BOARD OF EDUCATION OF THE BLUE VALLEY SCHOOL DISTRICT: We are pleased to present the Comprehensive Annual Financial Report (CAFR) of the Blue Valley School District (the “district”) for the fiscal year ended June 30, 2019. This report contains financial statements, supplemental statements and other related information to provide complete and full disclosure of all material financial aspects of the district for the 2019 fiscal year. It includes information on all funds as identified by the Governmental Accounting Standards Board (GASB), and all activities considered to be part of the district by Kansas statutes. Responsibility for the accuracy, completeness and fairness of this report rests with the district and more specifically, the Business and Finance Department. This department confirms that the accounting system and the budgetary and internal accounting controls of the district provide reasonable assurance that the district assets are safeguarded against loss and that financial records are reliable for preparing financial statements and maintaining accountability for assets. Based on these systems and controls, the information included in this report is believed to be accurate in all material aspects and is reported in a manner designed to fairly present the financial position and results of operations of the various funds and accounts of the Blue Valley School District. The district’s financial statements have been audited by the firm of Mize Houser & Company P.A. The goal of the independent audit was to provide reasonable assurance that the financial statements of the district for the fiscal year ended June 30, 2019, are free of material misstatement. The independent audit involved examining, 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 the audit, that there was a reasonable basis for rendering an unmodified opinion and that the district’s financial statements for the fiscal year ended June 30, 2019, are fairly presented in conformity with Generally Accepted Accounting Principles (GAAP). The independent auditor’s report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The district’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE DISTRICT The Blue Valley School District was created in 1965 when the Stilwell, Stanley and Oxford Districts unified to create a 91-square mile district in southeastern Johnson County. As of June 30, 2019, the district was comprised of 21 elementary schools, nine middle schools and five high schools with a total enrollment of 22,206 students in the 2018-19 school year. Blue Valley has averaged approximately 161 new students per year since 2009. Additionally, district enrollment has grown by over 6 percent since 2009. However, during the last five years the average increase has leveled to approximately 100 students per year. 1 Throughout its history, Blue Valley has been known for the accomplishments of its students and staff. The composite ACT score recorded by 2019 graduates continues to exceed state and national scores. Graduates posted an ACT score of 25.2, compared to the Kansas average of 21.2. 2019 Blue Valley graduates recorded another year of strong SAT scores while exceeding state and national averages. Blue Valley students scored on average 1315 on the test that measures math, verbal and writing skills. Also, the district had 54 students named National Merit semifinalists. Five Blue Valley high schools were named to the U.S. News