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School District of the Township of West Milford

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School District of the Township of West Milford SCHOOL DISTRICT OF THE TOWNSHIP OF WEST MILFORD COUNTY OF PASSAIC, NEW JERSEY COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 CO1V1PREHENSIVE ANNUAL FINANCIAL REPORT of the Township of West Milford School District Board of Education West Milford, New Jersey For the Fiscal Year Ended June 30, 2016 WEST MILFORD BOARD OF EDUCATION West Milford, New Jersey TOWNSHIP OF WEST MILFORD BOARD OF EDUCATION COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE TOWNSHIP OF WEST MILFORD SCHOOL DISTRICT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS INTRODUCTORY SECTION Page Letter of Transmittal 1 - 5 Organizational Chart 6 Roster of Officials 7 Consultants and Advisors 8 FINANCIAL SECTION Independent Auditor's Report 9 - 12 Required Supplementary Information - Part I Management's Discussion and Analysis 13 - 21 Basic Financial Statements A. District-wide Financial Statements: A-1 Statement of Net Position 22 A-2 Statement of Activities 23 B. Fund Financial Statements: Governmental Funds: B-1 Balance Sheet 24 B-2 Statement of Revenues, Expenditures, and Changes in Fund Balances 25 B-3 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 26 Proprietary Funds: B-4 Statement of Net Position 27 B-5 Statement of Revenues, Expenses, and Changes in Fund Net Position 28 B-6 Statement of Cash Flows 29 Fiduciary Funds: B-7 Statement of Fiduciary Net Position 30 B-8 Statement of Changes in Fiduciary Net Position 31 Notes to the Financial Statements 32 - 67 Required Supplementary Information - Part II C. Budgetary Comparison Schedule C-1 Budgetary Comparison Schedule - General Fund 68 - 72 C-la Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual N/A C-lb Education Jobs Fund N/A C-2 Budgetary Comparison Schedule - Special Revenue. Fund 73 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE TOWNSHIP OF WEST MILFORD SCHOOL DISTRICT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS (Continued) FINANCIAL SECTION (Continued) Page Notes to the Required Supplementary Information - Part II C-3 Budget-to-GAAP Reconciliation 74 Required Supplementary Information - Part III L. Schedules Related to Accounting and Reporting for Pensions (GASB 68) L-1 Schedule of District's Proportionate Share of Net Pension Liability - PERS 75 L-2 Schedule of District Contributions - PERS 76 L-3 Schedule of the District's Proportionate Share of Net Pension Liability - TPAF 77 Notes to the Required Supplementary Information - Part III L-4 Note to Required Schedules of Supplementary Information 78 Other Supplementary Information D. School Based Budget Schedules (if applicable): D-1 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 D-4 Schedule of DEOA Expenditures - Budget and Actual N/A E. Special Revenue Fund: E-1 Combining Schedule of Program Revenues and Expenditures Special Revenue Fund - Budgetary Basis 79 E-la Combining Schedule of Program Revenues and Expenditures Special Revenue Fund - Budgetary Basis - Comparative 80 E-lb Combining Schedule of Program Revenues and Expenditures - Budgetary Basis N/A E-2 Demonstrably Effective Program Aid Schedule of Expenditures - Budgetary Basis N/A E-3 Early Childhood Program Aid Schedule of Expenditures - Budgetary Basis N/A E-4 Distance Learning Network Aid Schedule of Expenditures - Budgetary Basis N/A E-5 Instructional Supplement Aid Schedule of Expenditures - Budgetary Basis N/A COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE TOWNSHIP OF WEST MILFORD SCHOOL DISTRICT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS (Continued) FINANCIAL SECTION (Continued) Other Supplementary Information (Continued) Page F. Capital Projects Fund: F-1 Summary Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budgetary Basis 81 F-1 a Schedule of Project Revenues, Expenditures, Project Balance, and Project Status — Budgetary Basis - Westbrook Roof Replacement 82 F-lb Schedule of Project Revenues, Expenditures, Project Balance, and Project Status — Macopin Roof Replacement 83 F-lc Schedule of Project Revenues, Expenditures, Project Balance, and Project Status — High School Roof Replacement 84 F-ld Schedule of Project Revenues, Expenditures, Project Balance, and Project Status — High School Boiler Replacement 85 F-1 e Schedule of Project Revenues, Expenditures, Project Balance, and Project Status — Westbrook Boiler Replacement 86 F-lf Schedule of Project Revenues, Expenditures, Project Balance, and Project Status — Paradise Knoll Boiler Replacement 87 F-lg Schedule of Project Revenues, Expenditures, Project Balance, and Project Status — High School Science Lab Updates 88 F-lh Schedule of Project Revenues, Expenditures, Project Balance, and Project Status — High School Step Replacement 89 F-2 Summary Schedule of Project Expenditures 90 G. Proprietary Funds: Enterprise Fund: G-1 Combining Statement of Net Position 91 G-2 Combining Statement of Revenues, Expenses and Changes in Fund Net Position 92 G-3 Combining Statement of Cash Flows 93 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 94 H-2 Combining Statement of Changes in Fiduciary Net Position 95 H-3 Student Activity Agency Fund - Schedule of Receipts and Disbursements 96 H-4 Payroll Agency Fund - Schedule of Receipts and Disbursements 97 I. Long-Term Debt: I-1 Schedule of Serial Bonds/General Long Term Debt Account Group 98 - 99 1-2 Schedule of Obligations under Capital Leases 100 1-3 Debt Service Fund Budgetary Comparison Schedule 101 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE TOWNSHIP OF WEST MILFORD SCHOOL DISTRICT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS (Continued) STATISTICAL SECTION (Unaudited) Page Introduction to the Statistical Section Financial Trends J-1 Net Position by Component 102 J-2 Changes in Net Position 103 - 104 J-3 Fund Balances - Governmental Funds 105 J-4 Changes in Fund Balances - Governmental Funds 106 - 107 J-5 General Fund Other Local Revenue by Source 108 Revenue Capacity J-6 Assessed Value and Actual Value of Taxable Property 109 J-7 Direct and Overlapping Property Tax Rates 110 J-8 Principal Property Taxpayers 111 J-9 Property Tax Levies and Collections 112 Debt Capacity J-10 Ratios of Outstanding Debt by Type 113 J-11 Ratios of General Bonded Debt Outstanding 114 J-12 Direct and Overlapping Governmental Activities Debt 115 1-13 Legal Debt Margin Information 116 Demographic and Economic Information J-14 Demographic and Economic Statistics 117 J-15 Principal Employers 118 Operating Information J-16 Full-time Equivalent District Employees by Function/Program 119 J-17 Operating Statistics 120 J-18 School Building Information 121 - 122 J-19 Schedule of Allowable Maintenance Expenditures by School 123 J-20 Insurance Schedule 124 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE TOWNSHIP OF WEST MILFORD SCHOOL DISTRICT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS (Continued) SINGLE AUDIT SECTION K-1 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 125- 126 K-2 Independent Auditor's Report on Compliance With Requirements That Could have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with the Unifoiiii Guidance and N.J. OMB Circular 15-08 127 - 1294 K-3 Schedule of Expenditures of Federal Awards, Schedule A 130 K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 131 K-5 Notes to Schedules of Awards and Financial Assistance 132 - 134 K-6 Schedule of Findings and Questioned Costs 135 - 137 K-7 Summary Schedule of Prior Year Audit Findings 138 INTRODUCTORY SECTION WEST MILFORD PUBLIC SCHOOLS 46 Highlander Drive, West Milford, New 'Jersey 07480 Phone: 973-697-1700 www.wmtps.org Fax: 973-697-8351 Alex Anemone, Ed.D. Superintendent Barbara Francisco Daniel Novak Elizabeth McQuaid, 0 I'D Business Administrator/Board Secretary Director of Education Director of Special Services Honorable President and Members of the Board of Education West Milford Township School District County of Passaic, New Jersey Dear Board Members/Citizens: It is with pleasure that we submit the Comprehensive Annual Financial Report (CAFR) of the West Milford Township School District (District) for the fiscal year ending June 30, 2016. This CAFR includes the District's Basic Financial Statements in accordance with Governmental Accounting Standards Board Statement 34. 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 the financial position and results of operations of the various funds and account groups of the District. All disclosures necessary to enable the reader to gain an understanding of the District's financial activities have been included. The CAFR is presented in four sections: Introductory, Financial,
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