SCHOOL DISTRICT OF JAMESBURG BOROUGH JAMESBURG BOROUGH BOARD OF EDUCATION COUNTY OF MIDDLESEX JAMESBURG, NEW JERSEY COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014 JAMESBURG SCHOOL DISTRICT COUNTY OF MIDDLESEX, NEW JERSEY COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2014 TABLE OF CONTENTS PAGE(S) INTRODUCTORY SECTION Letter of Transmittal 2-6 Organizational Chart 7 Roster of Officials 8 Consultants and Advisors 9 FINANCIAL SECTION 10 Independent Auditor's Report 11 - 13 Required Supplementary Information - Part I 14 Management's Discussion and Analysis 15 - 23 Basic Financial Statements 24 A. District-wide Financial Statements 25 A- 1 Statement of Net Position 26 A-2 Statement of Activities 27 B. Fund Financial Statements 28 Governmental Funds: 29 B- 1 Balance Sheet 30 - 31 B- 2 Statement of Revenues, Expenditures, and Changes in Fund Balances 32 B- 3 Reconciliation ofthe Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 33 Proprietary Funds: 34 B- 4 Statement of Net Position 35 B- 5 Statement of Revenues, Expenses, and Changes in Net Position 36 B- 6 Statement of Cash Flows 37 -i- PAGE(S) Fiduciary Funds: 38 B-7 Statement of Fiduciary Net Position 39 B- 8 Statement of Changes in Fiduciary Net Position 40 Notes to the Financial Statements 41 - 65 Required Supplementary Information - Part II 66 C. Budgetary Comparison Schedules 67 C- 1 Budgetary Comparison Schedule - General Fund 68 - 74 C- la Combining Budgetary Comparison Schedule - General Fund N/A C- Ib Education Jobs Fund Program Budgetary Comparison Schedule N/A C-2 Budgetary Comparison Schedule - Special Revenue Fund 75 - 76 Notes to Required Supplementary Information 77 C-3 Budgetary Comparison Schedule - Note to RSI 78 Other Supplementary Information 79 D. School Level Schedules: 80 D-I 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: 81 E- I Combining Schedule of Revenues and Expenditures Special Revenue Fund - Budgetary Basis 82 E- 2 Demonstrably Effective Program Aid Schedule of Expenditures - Budgetary Basis 83 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 Supplemental Aid Schedule of Expenditures - Budgetary Basis N/A F. Capital Projects Fund: 84 F- 1 Summary Schedule of Project Expenditures N/A F- 2 Summary Schedule of Revenues, Expenditures, and Change in Fund Balance - Budgetary Basis N/A -ii- PAGE(S) G. Proprietary Funds: 85 Enterprise Fund: 86 G- 1 Combining Statement of Net Position 87 G-2 Combining Statement of Revenues, Expenses and Changes in Net Position 88 G-3 Combining Statement of Cash Flows 89 Internal Service Fund: 90 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: 91 H-l Combining Statement of Fiduciary Net Position 92 H-2 Combining Statement of Changes in Fiduciary Net Position 93 H-3 Schedule of Receipts and Disbursements - Student Activity Agency Fund 94 H-4 Schedule of Receipts and Disbursements - Payroll Agency Fund 95 I. Long-Term Debt: 96 1- 1 Schedule of Serial Bonds 97 1- 2 Schedule of Obligations Under Capital Leases N/A 1- 3 Debt Service Fund - Budgetary Comparison Schedule 98 STATISTICAL SECTION (Unaudited) 99 Financial Trends 100 J- 1 Net Position by Component 101 J- 2 Changes in Net Position 102 - 104 J- 3 Fund Balances, Governmental Funds 105 J- 4 Change in Fund Balances, Governmental Funds 106 J- 5 General Fund - Other Local Revenue by Source 107 Revenue Capacity 108 J- 6 Assessed Value and Actual Value of Taxable Property 109 J-} Direct and Overlapping Property Tax Rates 110 J- 8 Principal Property Taxpayers 111 J- 9 Property Tax Levies and Collections 112 Debt Capacity 113 J-I0 Ratios of Outstanding Debt by Type 114 J-ll Ratios of Net General Bonded Debt Outstanding 115 J-12 Direct and Overlapping Governmental Activities Debt 116 J-13 Legal Debt Margin Information 117 -iii- PAGE(S) STATISTICAL SECTION (Unaudited) (Cont'd.) Demographic and Economic Information 118 J-14 Demographic and Economic Statistics 119 J-15 Principal Employers 120 Operating Information 121 J-16 Full-time Equivalent District Employees by Function/Program 122 J-17 Operating Statistics 123 J-18 School Building Information 124 J-19 Schedule of Required Maintenance 125 J-20 Insurance Schedule 126 SINGLE AUDIT SECTION 127 K- I 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 128-129 K-2 Report on Compliance for Each Major Federal and State Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal and State Assistance Required By OMB Circular A-133 and New Jersey OMB Circular 04-04 130 - 131 K - 3 Schedule of Expenditures of Federal Awards, Schedule A 132-133 K - 4 Schedule of Expenditures of State Financial Assistance, Schedule B 134 K - 5 Notes to the Schedules of Awards and Financial Assistance 135-136 K-6 Schedule of Findings and Questioned Costs 137 - 138 K -7 Summary Schedule of Prior Audit Findings 139-141 -iv- INTRODUCTORY SECTION - 1- JAMESBURG PUBLIC SCHOOLS BOARD OF EDUCATION 13 AUGUSTA STREET JAMESBURG, NEW JERSEY 08831 November 3, 2014 Honorable President and Members of the Board of Education Jamesburg School District County of Middlesex, New Jersey The comprehensive annual financial report of the Jamesburg School District (District) for the fiscal year ended June 30, 2014, 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 (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 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 includes the general purpose financial statements and schedules, as well as the auditor's report thereon. The statistical section includes selected financial and demographic information, generally presented on a multiyear basis. The District is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and 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 New Jersey OMB' s Circular Letter 04-04, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, and are not a required part of the general-purpose financial statements. Information related to this single audit, including the auditor's report on the internal control structure and compliance with applicable laws, regulations, findings and recommendations, are included in the single audit section of this report. -2- 1) REPORTING ENTITY AND ITS SERVICES: The Jamesburg District is an independent reporting entity within the criteria adopted by the GASB as established by NCGA ST. No.3. All funds and account groups of the District are included in this report. The Jamesburg 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 8. These include regular and vocational; as well as special education for handicapped youngsters. The District completed the 2013-2014 fiscal year with an enrollment of 643 students, which is 28 students more the previous year's enrollment. The following details the changes in the student enrollment of the District over the last five years. AVERAGE DAlLY ENROLLMENT Fiscal Year Student Enrollment Percent Change 2013-2014 643 4.55% 2012-2013 615 -3.45% 2011-2012 637 -2.90% 2010-2011 656 5.63% 2009-2010 621 .016% 2008-2009 620 -1.43% 2.) ECONOMIC CONDITION AND OUTLOOK: The Jamesburg area is experiencing stability in real estate values after a previous period of declining real estate values. There has also been a steady increase in new business/restaurant opportunities after a previous decrease in the number of businesses relocating to the area, resulting in an increase in employment opportunities and in commercial tax base and ratables. 3.) MAJOR INITIATIVES: The Jamesburg Board of Education has met state mandated requirements for education and passed its periodical monitoring review. As part of its governance initiatives for the 2013-14 and 2014-15 school years, the Board has emphasized the importance of building maintenance by developing a comprehensive action plan to keep school facilities in the best condition possible. The plan includes the creation of a Supervisor of Building and Grounds position, developing ongoing building maintenance schedules, creating an annual painting calendar, and aggressively securing resources necessary to correct current deficiencies across the two buildings. In addition, the Board is investigating updating of the district's phone system and improving security by installing additional security cameras both inside and outside of the buildings.