\Ryest MORRIS REGIONAL HIGH SCHOOL DISTRICT
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\ryEST MORRIS REGIONAL HIGH SCHOOL DISTRICT West Morris Regional High School District Board of Education Chester, New Jersey Comprehensive Annual Financial Report For the Fiscal Year Ended June 300 2015 Comprehensive Annual Financial Report of the West Morris Regional High School District Chester, New Jersey For the Fiscal Year Ended June 30, 2015 Prepared by West Morris Regional High School District Board of Education WEST MORRIS REGIONAL HIGH SCHOOL DISTRICT TABLE OF CONTENTS FISCAL YEAR JUNE 30. 2015 INTRODUCTORY SECTION (UNAUDITED) Letter of Transmittal ........ ... I Organizational Chart........ ...5 Roster of Officials. ...6 Consultants and Advisors ...7 FINANCIAL SECTION 8 Independent Auditors' Report....... 9 Requ ired Supplementary Information............., 12 Management's Discussion and Analysis (Unaudited) l3 Basic Financial Statements (Sections A. and B.) ... 2t A. District-Wide Financial Statements 22 A-l Statement of Net Position..... 23 A-2 Statement of Activities ......... 24 B. Fund Financial Statements ............... 26 B-l Balance Sheet - Governmental Funds.... 27 B-2 Statement of Revenue, Expenditures and Changes in Fund Balance - Governmental Funds 28 B-3 Reconciliation of the Statement of Revenue, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities..... 30 B-4 Statement of Net Position - Proprietary Funds 31 B-5 Statement of Revenue, Expenses and Changes in Fund Net Position - Proprietary Funds ..32 B-6 Statement of Cash Flows - Proprietary Funds B-7 Statement of Fiduciary Net Position - Fiduciary Funds......... ..34 B-8 Statement of Changes in Fiduciary Net Position - Fiduciary Funds............ ..35 Notes to the Basic Financial Statements. 36 Required Supplementary Information (Unaudited) L. Schedules Related to Accounting and Reporting for Pensions (GASB 68) (Unaudited) 69 L-1 Schedule of District's Proportionate Share of the Net Pension Liability - Public Employees' Retirement System 69 L-2 Schedule of District Contributions - Public Employees' Retirement System 70 L-3 Schedule of District's Proportionate Share of the Net Pension Liability - Teachers' Pension and Annuity Fund .......... 7l Notes to Required Supplementary Information.............. 72 WEST MORRIS REGIONAL HIGH SCHOOL DISTRICT TABLE OF CONTENTS FISCAL YEAR ENDED JUNE 30. 2OI5 (Continued) FINANCIAL SECTION (Cont'd) Required Supplementary Information (Unaudited) (Cont'd) C. Budgetary Comparison Schedules (Unaudited) ..73 C-1 Budgetary Comparison Schedule - General Fund...... ..74 C-2 Budgetary Comparison Schedule - Special Revenue Fund'......'." ..87 C-3 Budgetary Comparison Schedule - Note to Required Supplementary Information ..89 Supplementary Schedules (Sections D. to I.) D. School Level Schedules (Not Applicable) ..91 E,. Special Revenue Fund.......... ..92 E-1 Cornbining Schedule of Revenue and Expenditures Special Revenue Fund - Budgetary Basis .......... ..93 E-2 Preschool Education Aid Schedule of Expenditures - Budgetary Basis (Not Applicable) F. Capital Projects Fund .......... ..96 F-1 Summary Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budgetary Basis.....,.... ..91 F-1a Schedule ofProject Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - West Morris Mendham High School - Security Camera Upgrade Project ..98 F-lb Schedule ofProject Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - West Morris Mendham High School- Parking Lot Paving and Repair Project....... ..99 F-1c Schedule ofProject Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - West Morris Central High School - Replace Classroom HVAC Project 100 F- I d Schedule of Project Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - West Morris Mendham High School - Replace Classroom HVAC Project 101 F-1e Schedule ofProject Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - West Morris Central High School - Potable Water System Upgrade Project F-1f Schedule ofProject Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - West Morris Central and Mendham High Schools - Building Renovations Project..... 103 G Proprietary Funds t04 Enterprise Fund: G-l Statement of Net Position..... G-2 Statement of Revenue, Expenses and Changes in Fund Net Position G-3 Statement of Cash Flows H. Fiduciary Funds......... H-1 Combining Statement of Fiduciary Net Position H-2 Combining Statement of Changes in Fiduciary Net Position H-3 Student Activity Agency Fund Schedule of Receipts and Disbursements.. H-4 Student Activity Agency Fund Statement of Activity............... H-5 Payroll Agency Fund Schedule of Receipts and Disbursements................. WEST MORRIS REGIONAL HIGH SCHOOL DISTRICT TABLE OF CONTENTS FISCAL YEARENDED ruNE 30. 2OI5 (Continued) FINANCIAL SECTION (Cont'd) Supplernentary Schedules (Sections D. to L) (Cont'd) I. Long-Term Debt........... 1r4 I-l Schedule of Serial Bonds......... 11s I-2 Schedule of Obligations Under Capital Leases 116 I-3 Budgetary Comparison Schedule - Debt Seruice Fund (Unaudited) .'. tt7 STATISTICAL SECTION J Statistical Schedules (Unaudited) J-1 Net Position by Cornponent.............. J-2 Changes in Net Position J-3 Fund Balances - Governmental Funds....".'. J-4 Changes in Fund Balances - Governmental Funds.. J-5 General Fund Other Local Revenue by Source..'.'............ J-6 Assessed Value and Estimated Actual Value of Taxable Properly J-7 Direct and Overlapping Property Tax Rates J-8 Principal Property Taxpayers J-9 Property Tax Levies and Collections..........,.. J-10 Ratios of Outstanding Debt by Type J-11 Ratios of Net General Bonded Debt Outstanding.,.,........ I-t2 Ratios of Overlapping Governmental Activities Debt...'. J-13 Legal Debt Margin Information I-t4 Demographic and Economic Statistics J- 15 Principal Employers J-1 6 Full-Time Equivalent District Employees by Function/Program. I-11 Operating Statistics..... J- 18 School Building Information I-19 Schedule of Required Maintenance for School Facilities..'..'..'..'. J-20 Insurance Schedule.... SINGLE, AUDIT SECTION K. Single Audit. I 60 K-1 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance W ith G ov ernment Audit in g S t andar ds ....'.'.'..'..' 161 K-2 Report on Compliance for Each Major Federal and State Program; Report on Internal Control over Compliance Required by OMB Circular A-133 and New Jersey's OMB Circulars 04-04 and 15-08.......,.. r63 Schedule of Expenditures of Federal Awards 16s Schedule of Expenditures of State Awards................. 166 Notes to the Schedules of Expenditures of Federal and State Awards...'.. 168 Schedule of Findings and Questioned Costs t70 Summary Schedule of Prior Audit Findings 1',72 INTRODUCTORY SECTION Page I WEST MORRIS REGIONAL HIGH SCHOOL DISTRICT ADMINISTRATION BUILDING 10 SOUTH FOUR BRIDGES ROAD CHESTER, NEW JERSEY 07930 November 16,2015 The Honorable President and Members of the Board of Education West Morris Regional High School District County of Morris, New Jersey Dear Honorable President and Board Members: The Comprehensive Annual Financial Report of the West Monis Regional High School District (the "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 West Morris Regional High School District Board of Education (the "Boatd")' 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 basic financial statements and results of operations 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 and consultants. The financial section includes the Independent Auditors' Report, the management's discussion and analysis, the basic financial statements and notes providing an overview of the District's financial position and operating results, and supplementary schedules providing detailed budgetary information. The statistical section includes selected economic and demographic information, financial trends and the fiscal capacity of the District, 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 States, Local Governments and Non-Profit Organizations, and the New Jersey's OMB Circulars 04-04 and 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Information related to this single audit, including the auditors' report on the intemal control and compliance with applicable laws, regulations, contracts and grants along with findings and questioned costs, are included in the single audit section ofthis report. 1. REPORTING ENTITY AND ITS SERVICES: West Morris Regional High School District is an independent reporting entity within the criteria adopted by the Governmental