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COMPREHENSIVE ANNUAL FINANCIAL REPORT of the Borough of Fair Lawn Board of Education Fair Lawn, New Jersey for the Fiscal Year E

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COMPREHENSIVE ANNUAL FINANCIAL REPORT of the Borough of Fair Lawn Board of Education Fair Lawn, New Jersey for the Fiscal Year E COMPREHENSIVE ANNUAL FINANCIAL REPORT of the Borough of Fair Lawn Board of Education Fair Lawn, New Jersey For the Fiscal Year Ended June 30, 2015 Prepared by Borough of Fair Lawn Board of Education Finance Department BOARD OF EDUCATION BOROUGH OF FAIR LAWN SCHOOL DISTRICT TABLE OF CONTENTS INTRODUCTORY SECTION (Unaudited) Letter of Transmittal 1-5 Organizational Chart 6 Roster of Officials 7 Consultants and Advisors 8 FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT Independent Auditor's Report on General Purpose Financial Statements and Supplementary Schedules of Expenditures of Federal Awards and State Financial Assistance 11-13 REQUIRED SUPPLEMENTARY INFORMATION - PART I Management's Discussion and Analysis (Unaudited) 14-20 BASIC FINANCIAL STATEMENTS A. District - wide Financial Statements: A-I Statement of Net Position 23 A-2 Statement of Activities 24 B. Fund Financial Statements: Governmental Funds: B-1 Balance Sheet 27 B-2 Statement of Revenues, Expenditures and Changes in Fund Balances 28 B-3 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 29 Proprietary Funds: B-4 Statement of Net Position 31 B-5 Statement of Revenues, Expenses and Changes in Fund Net Position 32 B-6 Statement of Cash Flows 33 Fiduciary Funds: B-7 Statement of Fiduciary Net Position 35 B-8 Statement of Changes in Fiduciary Net Position 36 BOARD OF EDUCATION BOROUGH OF FAIR LA WN SCHOOL DISTRICT TABLE OF CONTENTS CONTINUED NOTES TO BASIC FINANCIAL STATEMENTS 38-72 REQUIRED SUPPLEMENTARY INFORMATION - PART II C. Budgetary Comparison Schedules: C-I Budgetary Comparison Schedule - General Fund 75-79 C-2 Budgetary Comparison Schedule - Special Revenue Fund 80 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION - PART II C-3 Budget to GAAP Reconciliation 82 REQUIRED SUPPLEMENTARY INFORMATION - PART III L. Schedules Related to Accounting and Reporting for Pensions (GASB 68) L-l Schedule of the District's Proportionate Share of the Net Pension Liability - PERS 85 L-2 Schedule of District Contributions - PERS 86 L-3 Schedule of the District's Proportionate share of the Net Pension 87 Liability - TPAF NOTES TO REQUIRED SUPPLEMENTARY INFORMATION -PART III Notes to required Supplementary Information 89 OTHER SUPPLEMENTARY INFORMATION D. School Level Schedules:Fund Financial Statements: D-l Combining Balance Sheet N/A D-2 Blended Resource Fund - Schedule of Expenditures Allocated by Resource Type-Actual N/A D-3 Blended Resource Fund - Schedule of Blended Expenditures - Budget and Actual N/A E. Special Revenue Fund: E-l Combining Schedule of Program Revenues and Expenditures - Budgetary Basis 93 E-I a Combining Schedule of State Program Revenues and Expenditures - Budgetary Basis 94 E-lb Combining Schedule Federal of Program Revenues and Expenditures - Budgetary Basis 95 E-l c Combining Schedule of Local Program Revenues and Expenditures - Budgetary Basis 96 F. Capital Projects Fund: F-l Summary Schedule of Project Expenditures 98 F-2 Summary Schedule of Revenues, Expenditures and Changes in Fund Balance - Budgetary Basis 99 F-2a to F-21- Schedule of Project Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis 100-111 BOARD OF EDUCATION BOROUGH OF FAIR LAWN SCHOOL DISTRICT TABLE OF CONTENTS REQUIRED SUPPLEMENTARY INFORMATION -PART II (CONTINUED) O. Proprietary Funds: Enterprise Fund: G-I Combining Statement of Net Assets N/A G-2 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets N/A G-3 Combining Statement of Cash Flows N/A O. Proprietary Funds: Internal Service Fund: G-4 Combining Statement of Net Assets N/A G-5 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets N/A G-6 Combining Statement of Cash Flows N/A H. Fiduciary Fund H-I Combining Statement of Fiduciary Net Assets N/A H-2 Combining Statement of Changes in Fiduciary Net Assets N/A H-3 Student Activity Agency Fund Schedule of Receipts and Disbursements 116 H-4 Payroll Agency Fund Schedule of Receipts and Disbursements 117 I. Long - Term Debt I-I Schedule of Serial Bonds 119 1-2 Schedule of Obligation Under Capital Leases N/A 1-3 Debt Service Fund Budgetary Comparison Schedule 120 STATISTICAL SECTION (UNAUDITED) J. Financial Trends: J-I Net Assets by Component 123 J-2 Changes in Net Assets 124-125 1-3 Fund Balances - Governmental Funds 126 1-4 Changes in Fund Balances - Governmental Funds 127--128 1-5 General Fund - Other Local Revenue by Source Revenue Capacity 129 J-6 Assessed Value and Estimated Actual Value of Taxable Property 130 J-7 Direct and Overlapping Property Tax Rates 131 J-8 Principal Property Taxpayers 132 J-9 Property Tax Levies and Collections 133 Debt Capacity 1-10 Ratios of Outstanding Debt by Type 134 J-ll Ratios of Net General Bonded Debt Outstanding 135 1-12 Direct and Overlapping Governmental Activities Debt as of June 30 136 1-13 Legal Debt Margin Information 137 BOARD OF EDUCATION BOROUGH OF FAIR LA WN SCHOOL DISTRICT T ABLE OF CONTENTS CONTINUED STATISTICAL SECTION (UNAUDITED) (Continued) Demographic and Economic Information J-14 Demographic and Economic Statistics 138 J-15 Principal Employers 139 Operating Information J-16 Full-time Equivalent District Employees by Function/Program 140 J-17 Operating Statistics 141 J-18 School Building Information 142 J-19 Schedule of Required Maintenance for School Facilities 143 J-20 Insurance Schedule 144 SINGLE AUDIT SECTION K-l 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" 146-147 K-2 Report on Compliance for Each Major Program; Report on Internal Control over Compliance; Report on Schedules of Expenditures of Federal Awards and State Financial Assistance Required by OMB Circular A-I33 and New Jersey OMB Circular Letter 04-04 148-150 K-3 Schedule of Expenditures of Federal Awards, Schedule A 151 K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 152 K-5 Notes to Schedules of Expenditures of Awards and Financial Assistance 153-154 K-6 Schedules of Findings and Questioned Costs Part I Summary of Auditor's Results 155-156 Part 2 Schedule of Financial Statement Findings 157 Part 3 Schedule of Federal Awards and State Financial Assistance Findings and Questioned Costs 158 K-7 Summary Schedule of Prior-Year Audit Findings and Questioned Costs as Prepared by Management 159 Introductory Section Board of Education Fair Lawn School District September, 2015 Honorable President and Members of the Board of Education Fair Lawn School District County of Bergen, New Jersey Dear Board Members: The comprehensive annual financial report (CAFR) ofthe Fair Lawn School District (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 Board of Education (Board). 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, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the District as of June 30, 2015 and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. 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 basic 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 Amendments of 1996 and the U.S. Office of Management and Budget Circular A- 133, "Audits of State, Local Governments, and nonprofit organizations" and the State Treasury Circular Letter 04-04 OMB, "Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid." 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 Fair Lawn School District is an independent reporting entity within the criteria adopted by the Governmental Accounting Standards Board (GASB) as established by GASB Statement No. 14. All funds and account groups of the District are included in this report. The Fair Lawn Board of Education and all its schools constitute the District's reporting entity. The District provides a full range of educational services appropriate to grade levels K through 12. These include regular, vocational as well as special education for students with disabilities. The District completed the 2014-2015 year with an enrollment of 4,717 students. The following details the changes in the student enrollment of the District over the last ten years. 1 Average Daily Enrollment Fiscal Year Student Enrollment Percent Change 2014-2015 4,717 .86% 2013-2014 4,677 1.0% 2012-2013 4,649 1.2% 2011-2012 4,595 ( 2.8%) 2010-2011 4,725 (.051 %) 2009-2010 4,750 (.080%) 2008-2009 4,789 (.21%) 2007-2008 4,799 .52% 2006-2007 4,774 2.34% 2005-2006 4,665 ( 2.25%) 2.
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