Morris School District Board of Education County of Morris Morristown, New Jersey
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MORRIS SCHOOL DISTRICT MORRIS SCHOOL DISTRICT BOARD OF EDUCATION COUNTY OF MORRIS MORRISTOWN, NEW JERSEY COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 HODULIK & MORRISON, P.A. A division of o ~~ONNOR DAVIES A.CCOUNTANT5 AND ADVISORS MORRIS SCHOOL DISTRICT COUNTY OF MORRIS, NEW JERSEY COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2019 TABLE OF CONTENTS PAGE{S) INTRODUCTORY SECTION 1 Letter of Transmittal 2 - 11 Organizational Chart 12 Roster of Officials 13 Consultants and Advisors 14 FINANCIAL SECTION 15 Independent Auditor's Report 16 - 18 Required Supplementary Information - Part I 19 Management's Discussion and Analysis 20 - 30 Basic Financial Statements 31 A. District-wide Financial Statements 32 A- 1 Statement of Net Position 33 A- 2 Statement of Activities 34 B. Fund Financial Statements 35 Governmental Funds: 36 B- 1 Balance Sheet 37 - 38 B- 2 Statement of Revenues. Expenses, and Change in Fund Balances 39 B- 3 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 40 Proprietary Funds: 41 B- 4 Statement of Net Position 42 B- 5 Statement of Revenues, Expenses, and Changes in Net Position 43 B- 6 Statement of Cash Flow 44 MORRIS SCHOOL DISTRICT COUNTY OF MORRIS, NEW JERSEY COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2019 TABLE OF CONTENTS PAGE(S) Fiduciary Funds: 45 B- 7 Statement of Fiducia1y Net Position 46 B- 8 Statement of Changes in Fiduciaiy Net Position 47 Notes to the Financial Statements 48 - 87 Required Sup.plementary Information - Part II 88 C. Budgetary Comparison Schedules 89 C- 1 Budgetary omparison Schedu l.e - General Fund 90 - 105 C- la Combin in g Schedule of Revenues. Expenditures. and Changes in Fund Balance - Budget and Actual NIA C- lb American Recovery and Reinvestment Act- Budget and Actual NIA C-2 Budgeta,y omparison Schedule - Special Revenue Fund 106 - 107 Notes to the Required Supplementary Information - Part II 108 C- 3 Budgetary Comparison Schedule - Note to RSI 109 Required Supplementary Information - Part III 110 L. Schedules Related to Accounting and Reporting for Pensions (GASB 68) 111 L- 1 Schedule of the District's Proportionate Share of the Net Pension Liability- PERS 112 L- 2 Schedule of District Contributions - PERS 113 L-3 Schedule of the District's Proportionate Share of the Net Pension Liability - TPAF 114 Notes to Required Supplementary Pension Information 115-116 M. Schedules Related to Accounting and Reporting for OPEB (GASB 75) (New) 117 M- 1 Schedule of the District's Share of the Net OPEB Liability 118 Notes to Required Supplementary OPEB Information 119 MORRIS SCHOOL DISTRICT COUNTY OF MORRIS, NEW JERSEY COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2019 TABLE OF CONTENTS PAGE(S) Other Supplementary Information 120 D. School Level Schedules: 121 D- 1 Combining Balance Sheet NIA D- 2 Blended Resource Fund - Schedule of Expenditures Allocated by Resource Type - Actual NIA D- 3 Blended Resource fund - Schedule of Blended Expenditures NIA D- 4 Schedule of DEOA Expenditures - Budget and Actual NIA E. Special Revenue Fund: 122 E- 1 Combining Schedule of Revenues and Expenditures Special Revenue Fund - Budgetary Basis 123 - 126 E- 2 Demonstrably Effective Program Aid Schedule of Expenditures - Budgetary Basis 127 E- 3 Early Chjldhood Program Aid Schedule of Expenditures - Budgetary Basis NIA E- 4 Distance Learning Network Aid Schedule of Expenditmes - Budgetary Basis NIA E- 5 rnstructional Supplement Aid Schedule of Expenditures - Budg tary Basi NIA F. Capital Projects Fund: 128 F- 1 Summary Statement of Project Expenditures 129 F- 2 Summary Schedule of Revenues, Expenditures, and Change in Fund Balance - Budgetary Basis 130 F- 2a Schedule of Project Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - MHS Expansion 131 F- 2b Schedule of Project Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - MHS Grand Stand 132 F- 2c Schedule of Project Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - Ml-IS Parking Lot 133 F- 2d Schedule of Project Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - Thomas Jefferson and MSl-1 Toilet Renovation 134 F- 2e Schedule of Project Revenues, Expenditures, Project Balance and Project Status -Budgetary Basis - Alfred Vail Boiler 135 F- 2f Schedule of Project Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - Transpo1tation Building 136 MORRIS SCHOOL DISTRICT COUNTY OF MORRIS, NEW JERSEY COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2019 TABLE OF CONTENTS PAGE(S) G. Proprietary Funds: 137 Enterprise Fund: 138 G- 1 Combining Statement of Net Position 139 G- 2 Combining Statement of Revenues, Expenses and Changes in Net Position 140 G- 3 Combining Statement of Cash Flows 141 Internal Service Fund: 142 G- 4 Combining Statement of Net Assets NIA G- 5 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets NIA G- 6 Combining Statement of Cash Flows NIA H. Fiduciary Funds: 143 H- 1 Combining Statement of Fiduciary Net Position 144 H- 2 Combining Statement of Changes in Fiduciary Net Position 145 H- 3 Schedule of Receipts and Disbursements - Student Activity Agency Fund 146 H- 4 Schedule of Receipts and Disbursements - Payroll Agency Fund 147 I. Long-Term Debt: 148 I- 1 Schedule of Serial Bonds 149 I- 2 Schedule of Obligations Under Capital Leases 150 I- 3 Budgetary Comparison Schedule - Debt Fund Service 151 STATISTICAL SECTION (Unaudited) 152 Financial Trends 153 J- 1 Net Position/Net Assets by Component 154 J- 2 Changes in Net Assets/Net Position 155 - 156 J- 3 Fund Balances, Governmental Funds 157 J- 4 Change in Fund Balances, Governmental Funds 158 J- 5 General Fund - Other Local Revenue by Source 159 MORRIS SCHOOL DISTRICT COUNTY OF MORRIS, NEW JERSEY COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2019 TABLE OF CONTENTS PAGE(S) STATISTICAL SECTION (Unaudited) (Cont'd.) Revenue Capacity 160 J- 6 Assessed Value and Actual Value of Taxable Property 161 J- 7 Direct and Overlapping Property Tax Rates 162 J- 8 Principal Property Taxpayers 163 J- 9 Property Tax Levies and Collections 164 Debt Capacity 165 J-10 Ratios of Outstanding Debt by Type 166 J-11 Ratios of Net General Bonded Debt Outstanding 167 J-12 Direct and Overlapping Governmental Activities Debt 168 J-13 Legal Debt Margin Information 169 Demographic and Economic Information 170 J-14 Demographic and Economic Statistics 171 J-15 Principal Employers 172 Operating Information 173 J-16 Full-time Equivalent District Employees by Function/Program 174 J-17 Operating Statistics 175 J-18 School Building Information 176 - 177 J-19 Schedule of Required Maintenance 178 J-20 Insurance Schedule 179 - 180 SINGLE AUDIT SECTION 181 K- 1 Report 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 182 - 183 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 and State Financial Assistance Required by the Uniform Guidance and New Jersey 0MB Circular 15-08 184 - 186 K-3 Schedule of Expenditures of Federal Awards, Schedule A 187 K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 188-189 K- 5 Notes to the Schedules of Awards and Financial Assistance 190 - 191 K- 6 Schedule of Findings and Questioned Costs 192 - 194 K- 7 Summary Schedule of Prior Audit Findings 195 INTRODUCTORY SECTION - 1 - Morris School District Office ofthe Business Administrator 31 Hazel Street Morristown, NJ 07960 973-292-2300 ext 2021 December 2, 2019 Honorable President and Members of the Board of Education Morris School District Morristown, New Jersey Dear President Pollak and Board Members: The Comprehensive Annual Financial Report of the Morris School District for the fiscal year ended June 30, 2019 is hereby submitted. Responsibility for both the accuracy of these data and completeness and fairness of the presentation, including all disclosures, rests with the management of the Board of Education. To the best of our knowledge and belief, 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 and account groups of the Morris School 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 and a list of principal officials. The Financial Section includes the general-purpose financial statements and schedules, as well as the auditor's report thereon. 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 of 1984 and the U.S. Office of Management and Budget Circular Uniform Guidance, and the State Treasury Circular Letter 15- 08 0MB, Single Audit Policy for Recipients of Federal 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: Morris School District is an independent reporting entity within the criteria adopted by the GASB as established by GASB Statement No. 14. All funds and account groups of the District are included in this report. The Morris School District Board of Education and its schools constitute the District's reporting entity.