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Union City Board of Education Union City, New Jersey Union City Board of Education Union City, New Jersey Hudson Elementary School – Re-Opened September 2015 For the Fiscal Year Ending June 30, 2015 Prepared by Union City Board of Education Office of the School Business Administrator COMPREHENSIVE ANNUAL FINANCIAL REPORT of the Union City Board of Education Union City, New Jersey For the Fiscal Year Ended June 30, 2015 Prepared by Union City Board of Education Office of the School Business Administrator/Board Secretary CITY OF UNION CITY SCHOOL DISTRICT TABLE OF CONTENTS Exhibit No. Page INTRODUCTORY SECTION Letter of Transmittal 1 - 5 ASBO Certificate of Excellence 6 Organizational Chart 7 Roster of Officials 8 Consultants, Independent Auditors and Advisors 9 FINANCIAL SECTION Independent Auditor's Report 10 - 13 Required Supplementary Information - Part I Management's Discussion and Analysis 14 - 26 Basic Financial Statements A District-Wide Financial Statements: A-1 Statement of Net Position 27 A-2 Statement of Activities 28 B Fund Financial Statements: Governmental Funds: B-1 Balance Sheet 29 - 30 B-2 Statement of Revenues, Expenditures, and Changes in Fund Balance 31 B-3 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 32 Proprietary Funds: B-4 Statement of Net Position 33 B-5 Statement of Revenues, Expenses, and Changes in Fund Net Position 34 B-6 Statement of Cash Flows 35 Fiduciary Funds: B-7 Statement of Fiduciary Net Position 36 B-8 Statement of Changes in Fiduciary Net Position 37 CITY OF UNION CITY SCHOOL DISTRICT TABLE OF CONTENTS Exhibit No. Page Notes To Basic Financial Statements 38 - 84 Required Supplementary Information - Part II C Budgetary Comparison Schedules: C-1 Budgetary Comparison Schedule - General Fund 85 - 91 C-1a Combining Budgetary Comparison Schedule - General Fund 92 - 103 C-2 Budgetary Comparison Schedule - Special Revenue Fund 104 Notes to Required Supplementary Information - Part II C-3 Budget to GAAP Reconciliation 105 Required Supplementary Information - Part III L-1 Schedule of the District's Proportionate Share of the Net Pension Liability - PERS 106 L-2 Schedule of District Contributions - PERS 107 L-3 Schedule of the District's Proportionate Share of the Net Pension Liability - TPAF 108 Notes to Required Supplementary Information - Part III 109 Other Supplementary Information D School Based Budget Schedules: D-1 Combining Balance Sheet 110 D-2 Blended Resource - Schedule of Expenditures Allocated by Resource Type - Actual 111 - 124 D-3 Blended Resource - Schedule of Blended Expenditures - Budget and Actual 125 - 155 E Special Revenue Fund: E-1 Combining Schedules of Program Revenues and Expenditures - Budgetary Basis 156 - 165 E-2 Schedule of Preschool Education Aid Expenditures - Preschool - All Programs - Budgetary Basis 166 CITY OF UNION CITY SCHOOL DISTRICT TABLE OF CONTENTS Exhibit No. Page F Capital Projects Fund: F-1 Summary Schedule of Project Expenditures 167 F-2 Summary Schedule of Revenues, Expenditures and Changes in Fund Balance - Budgetary Basis 168 F-2a-p Schedules of Project Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis 169 - 184 G Proprietary Funds: Enterprise Fund: G-1 Statement of Net Position 185 G-2 Statement of Revenues, Expenses, and Changes in Net Position 186 G-3 Statement of Cash Flows 187 Internal Service Fund: G-4 Combining Statement of Net Position N/A G-5 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position N/A G-6 Combining Statement of Cash Flows N/A H Fiduciary Funds: H-1 Combining Statement of Fiduciary Net Position 188 H-2 Combining Statement of Changes in Fiduciary Net Position 189 H-3 Agency Funds Schedule of Receipts and Disbursements 190 I Long-Term Debt: I-1 Schedule of Serial Bonds N/A I-2 Schedule of Obligations Under Capital Leases 191 I-3 Budgetary Comparison Schedule - Debt Service Fund N/A CITY OF UNION CITY SCHOOL DISTRICT TABLE OF CONTENTS Exhibit No. Page STATISTICAL SECTION (Unaudited) Introduction to the Statistical Section (Unaudited) Financial Trends: J-1 Net Position by Component 192 J-2 Changes in Net Position 193 - 194 J-3 Fund Balances - Governmental Funds 195 J-4 Changes in Fund Balance - Governmental Funds 196 J-5 General Fund Other Local Revenue by Source 197 Revenue Capacity: J-6 Assessed Value and Estimated Actual Value of Taxable Property 198 J-7 Direct and Overlapping Property Tax Rates 199 J-8 Principal Property Taxpayers 200 J-9 Property Tax Levies and Collections 201 Debt Capacity: J-10 Ratios of Outstanding Debt by Type 202 J-11 Ratio of General Bonded Debt Outstanding 203 J-12 Direct and Overlapping Governmental Activities Debt 204 J-13 Legal Debt Margin Information 205 Demographic and Economic Information: J-14 Demographic and Economic Statistics 206 J-15 Principal Employer 207 Operating Information: J-16 Full-Time Equivalent District Employees by Function/Program 208 J-17 Operating Statistics 209 J-18 School Building Information 210 - 211 J-19 Schedule of Required Maintenance Expenditures by School Facility 212 J-20 Insurance Schedule 213 - 214 CITY OF UNION CITY SCHOOL DISTRICT TABLE OF CONTENTS Exhibit No. Page 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 215 - 217 K-2 Report on Compliance for Each Major Federal and State Program and on Internal Control Over Compliance Required by OMB Circular A-133 and New Jersey OMB Circular 04-04 and/or 15-08 218 - 220 K-3 Schedule of Expenditures of Federal Awards, Schedule A 221 - 224 K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 225 - 228 K-5 Notes to the Schedules of Awards and Financial Assistance 229 - 231 K-6 Schedule of Findings and Questioned Costs 232 - 235 K-7 Summary Schedule of Prior Audit Findings and Questioned Costs as Prepared by Management 236 INTRODUCTORY SECTION CITY OF UNION CITY SCHOOL DISTRICT 3912 BERGEN TURNPIKE UNION CITY, N.J. 07087 Anthony Dragona, Ed.D. School Business Administrator (201) 348-5887 Fax (201) 348-5866 December 21, 2015 President Jeanette Pena, Members of the Board of Education and Citizens of the City of Union City School District Hudson County, New Jersey Dear Board Members and Citizens: The comprehensive annual financial report of the City of Union City School District for the fiscal year ended June 30, 2015, is hereby submitted. Responsibility for both the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rests with the management of the City of Union City School District. To the best of our knowledge and belief, the data presented in this report is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the District. All disclosures necessary to enable the reader to gain an understanding of the District’s financial activities have been included. The comprehensive annual financial report is presented in four sections: introductory, financial, statistical and single audit. The introductory section includes this transmittal letter, the District’s organizational chart, a list of principal officials, consultants, auditors and advisors and Certificate of Excellence in Financial Reporting. We have included in the transmittal letter a financial ratio and statistical overview of the entity based on entity-wide financial reporting. The financial section includes under Governmental Accounting Standard Board Statement No. 34, the Report of Independent Auditor’s, the Management Discussion and Analysis as presented on pages 14 through 26, the basic financial statements, required supplementary information, and the combining and individual fund financial statements. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The District is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget Circular A-133,”Audits of State and Local Governments”, and the State Treasury Circular Letter 04-04 OMB and/or 15-08, “Single Audit Policy for Recipients of Federal 1 Grants, State Grants and State Aid Payments”. Information related to this single audit, including the auditor’s report on the internal control structure and compliance with applicable laws and regulations and findings and recommendations are included in the single audit section of this report. 1.) REPORTING ENTITY AND ITS SERVICES: City of Union City School District is an independent reporting entity within the criteria adopted by the GASB #14. All funds and account groups of the District are included in this report. The City of Union City School District and all its schools constitute the District’s reporting entity. The reporting entity is a component unit of the City of Union City. The District provides a full range of educational services appropriate to grade levels Pre-K through 12. These include regular, early childhood, vocational as well as special education for handicapped youngsters. The District completed the 2014-2015 fiscal year with an average daily enrollment of 11,467 students, (not including 1,849 in Early Childhood students), which is 2.88% more than the previous year’s enrollment. The District sent 15 students to charter schools, an increase from 8 in the previous year. The following details the changes in the student enrollment of the District over the last ten years. Average Daily Enrollment Student Percent Fiscal Year Enrollment Change 2014-2015 13,316 2.26% 2013-2014 13,022 3.09% 2012-2013 12,632 2.54% 2011-2012 12,319 1.89% 2010-2011 12,091 3.19% 2009-2010 11,717 3.02% 2008-2009 11,373 -0.49% 2007-2008 11,429 0.97% 2006-2007 11,319 -0.50% 2005-2006 11,376 -0.85% 2.) ECONOMIC CONDITION AND OUTLOOK: The City’s existing commercial areas are thriving.
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