EAST WINDSOR REGIONAL SCHOOL DISTRICT Hightstown, New Jersey County of Mercer COMPREHENSIVE ANNUAL FINANCIAL REPORT for the FISC
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EAST WINDSOR REGIONAL SCHOOL DISTRICT Hightstown, New Jersey County of Mercer COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 OUTLINE OF CAFR PAGE INTRODUCTORY SECTION Letter of Transmittal 1 Organizational Chmi 5 Roster of Officials 6 Consultants and Advisors 7 FINANCIAL SECTION Independent Anditor's RepOIi 8 REQUIRED SUPPLEMENTARY INFORMATION -PART I Management's Discussion and Analysis 11 BASIC FINANCIAL STATEMENTS A. District-wide Financial Statements: A-I Statement of Net Position 17 A-2 Statement of Activities 18 B. Fund Financial Statements: B-1 Balance Sheet 20 B-2 Statement of Revenues, Expenditures & Changes in Fund Balances 21 B-3 Reconciliation of the Statement of Revenues, Expenditures & Changes in Fund Balances of Governmental Funds to the Statement of Activities 22 Proprietary Funds: B-4 Statement of Net Position 23 B-5 Statement of Revenues, Expenditures & Changes in Fund Net Position 24 B-6 Statement of Cash Flows 25 Fiduciary Funds: B-7 Statement of Fiduciary Net Position 26 B-8 Statement of Changes in Fiduciary Net Position 27 Notes to Financial Statements 28 REQUIRED SUPPLEMENTARY INFORMATION -PART II C. Budgetary Comparison Schedules C-I Budgetary Comparison Schedule - General Fund 52 C-la Combining Schedule of Revenues, Expenditures & Changes in Fund Balance - Budget & Actual (if applicable) N/A C-l b Education Jobs Fund Program - Budget & Actual (if applicable) 66 C-2 Budgetmy Comparison Schedule - Special Revenue Fund 67 (continued) OUTLINE OF CAFR (cuntinned): PAGE Notes to the Required Supplementary Information C-3 Budget-to-GAAP Reconciliation 68 D. School Based Budget Schedules Fund (if applicable): D-l Combining Balauce 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 Revenues & Expenditures Special Revenue Fund - Budgetary Basis 69 E-2 Preschool Education Aid Schedule(s) of Expenditures - Budgetary Basis N/A F. Capital Projects Fund: F-l Summary Statement of Project Expenditures N/A F-2 Summary Schedule of Revenues, Expenditures and Changes in Fund Balance - Budgetary Basis N/A G. Proprietary Funds: Enterprise Fund: G-l Combining Schedule of Net Position 74 G-2 Combining Schedule of Revenues, Expenses & Changes in in Fund Net Position 75 G-3 Combining Schedule of Cash Flows 76 Internal Service Fund - G-4 Combining Schedule of Net Position 77 G-5 Combining Schedule of Revenues, Expenses & Changes in Fund Net Position 78 G-6 Combining Schedule of Cash Flows 79 H. Fiduciary Funds: H-l Combining Statement of Fiduciary Net Position 80 H-2 Combining Statement of Changes in Fiduciary Net Position 81 H-3 Student Activity Agency Fund Schedule of Receipts & Disbursements 82 H-4 Payroll Agency Fund Schedule of Receipts & Disbursements 82 1. Long-Term Debt: I-I Schedule of Serial Bonds 83 1-2 Schedule of Obligations Under Capital Leases 84 1-3 Debt Service Fund Budgetary Comparison Schedule 85 1-4 Schedule of Early Retirement Incentive Piau Loans Payable 86 (continued) OUTLINE OF CAFR (continned): PAGE STATISTICAL SECTION (nnaudited) Financial Trends: J-l Net Position by Component 87 J-2 Changes in Net Position 88 J -3 Fund Balances - Governmental Funds 91 J -4 Changes in Fund Balances - Governmental Funds 92 J-5 General Fund Other Local Revenue by Source 94 Revenue Capacity: J-6 Assessed Value & Estimated Actual Value of Taxable Property 95 J-7 Direct & Overlapping Property Tax Rates 96 J-8 Principal Property Taxpayers 97 J-9 Property Tax Levies & Collections 97 Debt Capacity: J-lO Ratios of Outstanding Debt by Type 98 J-ll Ratios of General Bonded Debt Outstanding 99 1-12 Direct & Overlapping Governmental Activities Debt 99 1-13 Legal Debt Margin Information 100 Demographic & Economic Infonnation: 1-14 Demographic & Economic Statistics 101 J-15 Principal Employers N/A Operating Information: J -16 Full-Time Equivalent District Employees by Function/Program 102 1-17 Operating Statistics 103 1-18 School Building Information 104 J-19 Schedule of Required Maintenance 105 J-20 Insurance Schedule \06 K SINGLE AUDIT SECTION K-1 Report on Compliance and on Internal Control Over Financial Reporting and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 107 K-2 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 and New Jersey OMB Circular Letter 04-04 109 K-3 Schedule of Expenditures of Federal Awards, Schedule A 112 K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 113 K-5 Notes to Schedules of Awards and Financial Assistance 114 K-6 Schedule of Findings and Questioned Costs 116 K-7 Summary Schedule of Prior Audit Findings 118 (concluded) I I I I COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE EAST WINDSOR REGIONAL SCHOOL DISTRICT IDGHTSTOWN, NEW JERSEY FOR THE FISCAL YEAR ENDED JUNE 30, 2013 Prepared by East Windsor Regional School District Bnsiness Administrator's Office I I I I I I I I INTRODUCTORY SECTION I I I I I I I I I I "PRIDE IN PERFORMANCE" East Windsor Regional School District November 22, 2013 Honorable President and Members of the Board of Education East Windsor Regional School District County of Mercer, New Jersey Dear Board Members: The comprehensive annual financial report of the East Windsor Regional School District (District) for the fiscal year ended June 30, 2013, 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. 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 of the 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 inclndes management's discussion and analysis and the basic financial statements, required supplemental information 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 A-133, "Audits of State and Local Governments", 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 internal control and compliance with applicable laws and regulations and findings and recommendations, are included in the single audit section of this repOli. 1) REPORTING ENTITY AND ITS SERVICES: East Windsor Regional School District is an independent reporting entity within the criteria adopted by the GASB as established by NCGA Statement No.3. All funds and account groups of the District are included in this report. The East Windsor Regional 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 handicapped and preschool handicapped children. The District had 5,072 students enrolled October 15, 2012 Enrollment is defined as students on roll (both full and shared time count as one) and students placed out of district including Mercer County Special Services School District. The following details the changes in the student enrollment of the District over the last fifteen years. ENROLLMENT Fiscal Year Student Enrollment Percent Change 1996-97 4,116 +0.76% 1997-98 4,190 +1.80% 1998-99 4,352 +3.87% 1999-00 4,413 +1.40% 2000-01 4,634 +5.01% 2001-02 4,737 +2.22% 2002-03 4,876 +2.93% 2003-04 4,906 +0.62% 2004-05 4,960 +1.10% 2005-06 4,939 -0.42% 2006-07 5,004 +1.32% 2007-08 4,972 - 0.64% 2008-09 5,025 +1.07% 2009-10 5,029 +0.08% 2010-11 5,075 +0.91% 2011-12 5,072 - 0.06% 2012-13 5,072 +0.35% 2) ECONOMIC CONDITION AND OUTLOOK: New residential development has leveled off. Commercial development continues to increase and is helping add to the tax base. Student enrollment will increase as students become school age the increased housing stock. The District will continue to manage the state aid revenues. 3) MAJOR INITIATIVES: Expenditures made during the 2012-13 school year were designed to support the district's mission, goals and instructional action plans as well as the state's core curriculum standards. The following district initiatives were supported in 2012-2013: 1. The continuation of the articulation process to ensure the alignment of our cUITiculum with the NJCCCS and assessments. 2. The continued purchase oftextbooks and instructional materials that support the NJCCCS. 3. Included a complete new core resource for literacy and mathematics (Journeys). 4. The continuation of a professional development program consistent with our vision including: • Differentiated instructional and assessment strategies • Util ization of data to drive instruction • Development of precise objectives and providing feedback • Familiarity with expectations and fonnat ofthe ASK3, ASK4, and GEPA • Understanding the Core Curriculum Content Standards • Pacing the CUITiculum • The Utilization of Guiding Reading and Literacy Centers • The use of technology in advancing student achievement 2 5.