COMPREHENSIVE ANNUAL FINANCIAL REPORT for the Fiscal Year Ended June 30, 2015
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COMCPREHENOMPREHESNIVSIVEE AANNNNUAALL F FIINNANACNIACLI RALEP REPORT ORT The School Board of the City of Richmond A Component Unit of the City of Richmond, Virginia The School Board of the City of Richmond A Component Unit of the City of Richmond, Virginia FOR THFE oFIrSC tAhLe Y FEAiRsca ENDl YEDe aJUNr EE n30d,e201 d J5u ne 30, 2015 Richmond Public Schools • Richmond, Virginia i Richmond Public Schools • Richmond, Virginia RICHMOND PUBLIC SCHOOLS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2015 Prepared By: Department of Finance Dana T. Bedden, Ed. D. Superintendent of Schools Ralph L. Westbay Assistant Superintendent for Financial Services Wanda Payne Director of Finance www.richmond.k12.va.us THE SCHOOL BOARD OF THE CITY OF RICHMOND COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS INTRODUCTORY SECTION (unaudited) Letter of Transmittal ............................................................................................................. i School Board Members and School Board Officials ........................................................... xiii Organizational Chart ............................................................................................................. xiv FINANCIAL SECTION Report of Independent Auditor .......................................................................................... 4 Management’s Discussion and Analysis .............................................................................. 7 BASIC FINANCIAL STATEMENTS: Government-wide Financial Statements Exhibit A Statement of Net Position – Governmental Activities ....................................................... 23 Exhibit B Statement of Activities – Governmental Activities ............................................................. 24 Fund Financial Statements Governmental Funds’ Financial Statements and Reconciliations: Exhibit C Balance Sheet – Governmental Funds ................................................................................ 26 Exhibit D Reconciliation of the Governmental Funds’ Balance Sheet to the Statement of Net Position .................................................................................. 27 Exhibit E Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 28 Exhibit F Reconciliation of the Governmental Funds’ Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities ....................................................................................... 29 Fiduciary Funds’ Financial Statements Exhibit G Statement of Fiduciary Net Position ................................................................................. 30 Exhibit H Statement of Changes in Fiduciary Net Position ............................................................... 31 THE SCHOOL BOARD OF THE CITY OF RICHMOND COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS Notes to Basic Financial Statements ........................................................................... 32 REQUIRED SUPPLEMENTARY INFORMATION (unaudited): Exhibit I General Fund: Budgetary Comparison Schedule ............................................................. 76 Defined Benefit Pension and Postemployment Plan Information: Exhibit J Virginia Retirement System – Teachers’ Pool Defined Benefit Pension Schedule of Changes in Net Pension Liability ………………… ................................ 81 Exhibit K Virginia Retirement System – Teachers’ Pool Defined Benefit Pension School Board’s Proportionate Share of Net Pension Liability in VRS and Schedule of School Board Contributions ………………… ................................ 82 Exhibit L Virginia Retirement System - Agent Multiple Employer Defined Benefit Pension Schedule of Changes in Net Pension Liability, Related Ratios and Schedule of School Board Contributions …………………………………………………… 83 Exhibit M Early Retirement Incentive Plan for Employees of Richmond Public Schools Schedule of Changes in Net Pension Liability, Related Ratios and Schedule of School Board Contributions ........................................................... 85 Exhibit N Richmond Retirement System Defined Benefit Pension Schedule of Related Ratios and Schedule of School Board Contributions ...... 87 Exhibit O Other Postretirement Employee Benefits Schedules of Funding Progress and Employer Contributions……………………. 88 OTHER SUPPLEMENTARY INFORMATION: Exhibit P Fiduciary Funds Financial Statements: Statement of Changes in Assets and Liabilities - Agency Funds…………………….. 91 THE SCHOOL BOARD OF THE CITY OF RICHMOND COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS STATISTICAL SECTION (unaudited) The School Board of the City of Richmond, Virginia: Table 1 General Fund Expenditures by Function – Last Ten Fiscal Years ....................................... 93 Table 2 General Fund Revenues by Source – Last Ten Fiscal Years ................................................ 95 Table 3 Net Position of Governmental Activities – Last Ten Fiscal Years ……………… ..................... 96 Table 4 Changes in Net Position of Governmental Activities – Last Ten Fiscal Years ..................... 97 Table 5 Fund Balances of Government Funds – Last Ten Years ...................................................... 98 Table 6 Changes in Fund Balances of Government Funds – Last Ten Years ................................... 99 Table 7 Schedule of Expenditures of Federal Awards …………………………………………… ................... 100 Table 8 Annual per Pupil Cost – Last Ten Fiscal Years ..................................................................... 102 Table 9 Attendance/Membership Statistics – Last Ten Fiscal Years ............................................... 103 Table 10 Free and Reduced Lunch Data – Last Ten Fiscal Years ....................................................... 104 Table 11 Full-Time Equivalent Employees by Function – Last Ten Fiscal Years … ............................ 105 Table 12 Teacher Data – Last Ten Fiscal Years ................................................................................... 106 Table 13 Pupil/Teacher Ratios – Last Ten Fiscal Years ...................................................................... 107 Table 14 Schedule of School Buildings ................................................................................................ 108 Table 15 Schools with Accreditation Scores Reported to the State .................................................. 110 Table 16 Ratios of Outstanding Debt – Last Three Fiscal Years ......................................................... 111 City of Richmond, Virginia: Table 17 Net Position by Component of the City of Richmond – Last Ten Fiscal Years ................... 112 Table 18 Changes in Net Position of the City of Richmond – Last Ten Fiscal Years ........................ 113 Table 19 Governmental Activities Tax Revenue by Source of the City of Richmond – Last Ten Fiscal Years ............................................................................................ 115 Table 20 Fund Balances of Governmental Funds of the City of Richmond – Last Ten Fiscal Years ............................................................................................ 116 Table 21 Changes in Fund Balance of Governmental Funds of the City of Richmond – Last Ten Fiscal Years .............................................................................................. 117 Table 22 General Governmental Tax Revenues by Source of the City of Richmond – Last Ten Fiscal Years ............................................................................................ 118 THE SCHOOL BOARD OF THE CITY OF RICHMOND COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS Assessed Value and Estimated Actual Value of Taxable Property of the City of Richmond-Last Ten Fiscal Years ................................................................. 118 Table 23 Real Estate Tax Levies and Collections of the City of Richmond –Last Ten Years .............. 119 Personal Property Tax Levies and Collections of the City of Richmond– Last Ten Years ......................................................................................................... 119 Table 24 Principal Property Tax Payers of the City of Richmond .................................................... 120 Principal Employers of the City of Richmond ....................................................................... 120 Table 25 Pledged Revenue Coverage of the City of Richmond –Last Ten Years ............................... 121 Table 26 Legal Debt Margin Information of the City of Richmond–Last Ten Fiscal Years ................ 122 Table 27 Ratios of Outstanding Debt by Type of the City of Richmond–Last Ten Fiscal Years ........ 123 Ratios of General Bonded Debt Outstanding of the City of Richmond – Last Ten Fiscal Years ............................................................................................... 123 Table 28 Demographic and Economic Statistics of the City of Richmond–Last Ten Years ............... 124 Table 29 Full-Time Equivalent City Government Employees by Function of the City of Richmond – Last Ten Fiscal Years ............................................................... 125 Table 30 Operating Indicators by Function of the City of Richmond– Last Ten Fiscal Years ............ 126 Table 31 Capital Assets Statistics by Function