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CONNEAUT SCHOOL DISTRICT Comprehensive Annual Financial

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CONNEAUT SCHOOL DISTRICT Comprehensive Annual Financial CONNEAUT SCHOOL DISTRICT Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2018 Conneaut School District 219 West School Drive Linesville, PA 16424 Crawford County, Pennsylvania www.conneautsd.org This Page Intentionally Left Blank Comprehensive Annual Financial Report of the Conneaut School District Crawford County, Pennsylvania for the Fiscal Year Ended June 30, 2018 Prepared By: Greg Mayle, CPA, CMA Business Manager Department Issuing Report: Business Office This Page Intentionally Left Blank TABLE OF CONTENTS Page Introductory Section Board of School Directors i Organization Chart ii Transmittal Letter iii Financial Section Independent Auditor’s Report 1 Management’s Discussion and Analysis 4 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 11 Statement of Activities 12 Fund Financial Statements Balance Sheet – Governmental funds 13 Reconciliation of the Balance Sheet to the Statement of Net Position 14 Statement of Revenues, Expenditures and Changes in Fund Balance 15 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities 16 Statement of Revenues, Expenditures, and Changes in Fund Balance, Budget and Actual, General Fund 17 Statement of Net Position – Proprietary Funds 18 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds 19 Statement of Cash Flows – Proprietary Funds 20 Statement of Fiduciary Net Position – Fiduciary Funds 21 Fund Financial Statements (continued) Statement of Changes in Net Position – Fiduciary Funds 22 Notes to the Basic Financial Statements 23 Required Supplementary Information (RSI) Schedule of District’s Proportionate Share of the Net Pension Liability 54 Schedule of District Contributions for the Pension Plan 55 Schedule of Changes in the District’s Total OPEB Liability and Related Ratios – Last Ten Years 56 Schedule of District’s proportionate share of PSERS Net OPEB liability 57 Schedule of District Contributions for the PSERS OPEB Plan 58 Schedule of Fiduciary Net Position – Activity Funds 59 Schedule of Trust Funds 60 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 61 Independent Auditor’s Report on Compliance for Each Major Program and On Internal Control Over Compliance Required By the Uniform Guidance 63 Schedule of Expenditures of State and Federal Awards 65 Schedule of Findings and Questioned Costs 66 Statistical Section Financial Trends Schedule of Net Position by Component 67 Schedule of Changes in Net Position 69 Schedule of Fund Balances 73 Schedule of Changes in Fund Balances 75 Revenue Capacity Schedule of Revenues by Source 77 Assessed Values 79 Property Tax Levies and Collections 81 Ten Principal Taxpayers 83 Debt Capacity Debt Principal Outstanding 85 Debt Ratios 86 Borrowing Base Capacities 87 Demographic and Economic Information Population Trends 89 Demographic and Economic Data 91 Operating Information Enrollment Trends 93 Staffing Trends 95 This Page Intentionally Left Blank INTRODUCTORY SECTION Conneaut School District Board of School Directors Dorothy Luckock .........................................................................Board President* Jamie Hornstein ...........................................................................Board Vice President* John Burnham ..............................................................................Director Don Ellis, Jr. ................................................................................Director Theressa Miller ............................................................................Director* Kathleen Klink .............................................................................Director Eric McGuirk ...............................................................................Director Tim McQuiston ............................................................................Director Kevin Jacobs ................................................................................Director *Budget & Finance Committee Member i ii This Page Intentionally Left Blank CONNEAUT SCHOOL DISTRICT DISTRICT ADMINISTRATION OFFICE 219 West School Drive Linesville, Pennsylvania 16424 _____ PHONE (814) 683‐5900 – FAX (814) 683‐5452 December 30, 2018 Members of the Board of School Directors and Citizens of the Conneaut School District: I am pleased to present the Comprehensive Annual Financial Report (CAFR) of the Conneaut School District for the fiscal year ended June 30, 2018. The District’s Business Office prepared this report. Responsibility for both the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosure, rests with the District. We believe the data as presented is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the District as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the District’s financial affairs have been included. The CAFR is presented in three sections: introductory, financial, and statistical. The introductory section includes the transmittal letter, the District’s organizational chart and a list of principal officials. The financial section includes the management’s discussion and analysis as well as the basic financial statements including government-wide financial statements, governmental funds and other supplemental information. Also included is the auditors’ report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multiyear basis. Management’s discussion and analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. This report includes all funds of the District. For all governmental fund types, the District reports on a modified accrual basis of accounting, which is applied to the District’s budget and accounting records. The notes to the financial statements expand upon the modified accrual basis as well as the District’s accounting policies and procedures. All District funds are included in this report and have been audited by McGill, Power, Bell & Associates, LLP. iii Profile of the District Demographic Information The Conneaut School District is located in northwest Pennsylvania's Crawford County and geographically encompasses approximately the western third of the county. The school district is approximately 8 miles west of Meadville, 40 miles south of Erie and 91 miles north of Pittsburgh. Encompassing a total area of approximately 319 square miles, the School District is bordered on the south by Mercer County, on the west by the State of Ohio, on the north by Erie County and on the east by the city of Meadville. Included in the School District are the Boroughs of Conneaut Lake, Conneautville, Linesville and Springboro. Townships in the School District include Beaver, Conneaut, East Fallowfield, Greenwood, North Shenango, Pine, Sadsbury, Spring, Summerhill, Summit and West Fallowfield. The School District can be classified as rural with the majority of the work force employed in areas contiguous to that of the School District. The District’s overall population is 18,255. The Conneaut School District is comprised of three main geographic areas: Linesville, Conneaut Lake and Conneaut Valley. Each area represents a small diverse community. Linesville is a close-knit community located near the Pennsylvania and Ohio State line. Many tourists visit Linesville because of the town’s proximity to Pymatuning Lake. Conneaut Lake is a resort town on the shores of Conneaut Lake. Tourism flourishes here, particularly during summer months. Conneaut Valley represents the communities of Conneautville and Springboro, small towns in the north-central part of the school district. The Conneaut Valley community is also centered in a predominantly agricultural area of Crawford County. The school district has one high school, Conneaut Area Senior High (CASH) located in Linesville. Grades 9-12 attend CASH using the main high school building and the Alice Shafer Annex. Conneaut Valley and Conneaut Lake are each home to an elementary school and a middle school. Conneaut Valley Elementary and Conneaut Lake Elementary each hold grades K- 4. Conneaut Valley Middle School and Conneaut Lake Middle School each hold grades 5-8. The following statistics represent the 2018/2019 3rd day student enrollment in each of the five schools in the Conneaut School District: Conneaut Lake Elementary - 342 Conneaut Lake Middle School - 328 Conneaut Valley Elementary - 314 Conneaut Valley Middle School - 278 Conneaut Area Senior High (CASH) - 641 The schools enrollments total 1,903 for the entire school district. The District’s enrollment has decreased significantly over the previous 10-15 years, and this trend is continued to continue. The enrollment of the District is expected to decrease by approximately 50 students over the next few years, reaching a projected enrollment of 1,750 students in 2022. More than 250 administrators, supervisors, teachers and
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