West Essex Regional School District
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WEST ESSEX REGIONAL SCHOOL DISTRICT West Essex Regional School District North Caldwell, New Jersey Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2015 Comprehensive Annual Financial Report of the West Essex Regional School District West Essex, New Jersey For the Fiscal Year Ended June 300 2015 Prepared by West Essex Regional School District WEST ESSEX REGIONAL SCHOOL DISTRICT TABLE OF CONTENTS FISCAL YEAR ENDED JUNE 30. 2015 INTRODUCTORY SECTION (Unaudited) Letter of Transmittal......... ... I Organizational Chart ........ ...4 Roster of Officials ...5 Consultants and Advisors. ...6 FINANCIAL SECTION 7 Independent Auditors' Reporl. Required Supplementary Information ............ 11 Management's Discussion and Analysis (Unaudited) T2 Basic Financial Statements (Sections A and B) 20 A. District-Wide Financial Statements. ..21 A-1 Statement of Net Position ...... ..22 A-2 Statement of Activities ..23 B. Fund Financial Statements................ 25 B-1 Balance Sheet - Governmental Funds 26 B-2 Statement of Revenue, Expenditures and Changes in Fund Balances - Governmental Funds.,.. 28 B-3 Reconciliation of the Statement of Revenue, Expenditures and Changes in Fund Balances of Govemmental Funds to the Statement of Activities .,.. 29 B-4 Statement of Net Position - Proprietary Funds...... 30 B-5 Statement of Revenue, Expenses and Changes in Fund Net Position - Proprietary Funds...,.. 8-6 Statement of Cash Flows - Proprietary Funds...... B-7 Statement of Fiduciary Net Position - Fiduciary Funds B-8 Statement of Changes in Fiduciary Net Position - Fiduciary Funds Notes to the Basic Financial Statements .35 Required Supplernentary Information (Unaudited) L. Schedules Related to Accounting and Reporting for Pensions (GASB 68) (Unaudited) 70 L-l Schedule of District's Proportionate Share of the Net Pension Liability - Public Employees Retirement Systern 70 L-2 Schedule of District Contributions - Public Employees Retirement System ........ ll L-3 Schedule of District's Proportionate Share of the Net Pension Liability - Teachers' Pension and Annuity Fund........... 72 L-4 Schedule of District's Proportionate Share of the Net Pension Liability - Board of Education Employees' Pension Fund of Essex County.. 73 L-5 Schedule of District Contributions - Board of Education Employees' Pension Fund of Essex County ..74 Notes to Required Supplementary Information .............. ..7 5 WEST ESSEX REGIONAL 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) 76 C-1 Budgetary Comparison Schedule - General Fund......,.,. 77 C-2 Budgetary Comparison Schedule - Special Revenue Fund........... 8l C-3 Required Supplementary Information - Budgetary Comparison Schedule - Note to RSI. 88 Other Supplementary Schedules (D.-I.) D. Scliool Level Schedules (Not Applicable) 90 E. Special Revenue Fund .......... E-1 Combining Schedule of Program Revenue and Expenditures - Special Revenue Fund - Budgetary Basis.......... E-2 Preschool Education Aid Schedule of Expenditures - Budgetary Basis (Not Applicable) F. Capital Projects Fund........... F- 1 Summary Schedule of Revenue, Expenditures, and Changes in Fund Balance - Budgetary Basis ......... F- I A Schedule of Project Revenue, Expenditures, Project Balance and Project Status - Budgetary Basis - Renovations to Junior High School ................. F- 1 B Schedule of Project Revenue, Expenditures, Project Balance and Project Status - Budgetary Basis - High School Roof Replacement...... F-lC Schedule ofProject Revenue, Expenditures, Project Balance and Project Status - Budgetary Basis - High School Window Replacement.................. F-1D Schedule ofProject Revenue, Expenditures, Project Balance and Project Status - Budgetary Basis - Junior High School Window Replacement.................. F-lE Schedule ofProject Revenue, Expenditures, Project Balance and Project Status - Budgetary Basis - Junior High School Boiler Replacement.................. F- 1 F Schedule of Project Revenue, Expenditures, Project Balance and Project Status - Budgetary Basis - Junior High School Window Replacement.................. G Proprietary Funds (Enterprise Fund) 101 G-l Statement of Net Position 102 G-2 Statement of Revenue, Expenses and Changes in Fund Net Position 103 G-3 Statement of Cash Flows.......,. 104 H. Fiduciary Funds 105 H-l combining öt;ä;;; ;fÑ", pä'irl"n.....,.......,... 106 H-2 Statement of Changes in Fiduciary Net Position 107 H-3 Student Activity Agency Fund Schedule of Receipts and Disbursements r08 H-4 PayrollAgency Fund Schedule of Receipts and Disbursements .............. 109 I. Long-Term Debt 110 I- 1 Scheclule of Serial Bonds lt1 I-2 Schedule of Obligations Under Capital Leases........ tt2 I-3 Debt Service Fund Budgetary Comparison Schedule (Unaudited) 113 T EX REGIO TABLE OF CONTENTS FISCAL YEAR ENDED ruNE 30. 2015 (Continued) STATISTICAL SECTION J. StatisticalSection(Unaudited) rt4 J-l Net Position by Component............. 115 J-2 Changes in Net Position...... tl6 J-3 Fund Balances - Governmental Funds 118 J-4 Changes in Fund Balances - Governmental Funds 119 J-5 General Fund Other Local Revenue by Source................. t2t J-6 Assessed Value and Actual Value of Taxable Property..... 122 J-l Direct and Overlapping Property Tax Rates 124 J-8 Principal Property Taxpayers, Current Year and Nine Years Ago t26 J-9 Property Tax Levies and Collections............ 130 J-10 Ratios of Outstanding Debt by Type...... l3l J-1 I Ratios of Net General Bonded Debt Outstanding.......... 132 J-12 Ratios of Overlapping Governmental Activities Debt 133 J-13 LegalDebt Margin Information 134 J-l4 Dernographic and Economic Statistics..... 135 J-15 Principal Employers, Current Year and Nine Years 4go............. 138 J-16 Full-tirne Equivalent District Employees by Function/Program... t39 J-17 Operating Statistics 140 J-18 School Building Information 141 J-19 Schedule of Required Maintenance ................. 142 J-20 Insurance Schedule 143 K. SINGLE AUDIT SECTION 144 K-l Independent Auditors' 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... 145 K-2 Independent Auditors' Report on Compliance for Each Major State Program and Report on Internal Control over Compliance Required by OMB Circular A-133 and New Jersey's OMB Circulars 04-04 and l5-08........ Schedule of Expenditures of Federal Awards Schedule of Iìxpenditures of State Awards.,....,.......... Notes to the Schedules of Expenditures of Federal and State Awards Schedule of Findings and Questioned Costs Summary Schedule of Prior Audit Findings INTRODUCTORY SECTION (UNAUDITED) Page 1 \\''1:5'l l::i5l.,X Iì,1';il1( )r"\Al. 5(.1 t{,Xll l)151-lilC'f' ßonrd of Education Wcst Creenblool< l(oacl No¡th Caldrvell, Nci,v Jersey 07006 (973) 228-1200 lrax (973) 228-0559 w!\i\\'.1\,eslgx,Eg November 20,2015 The Honorable President and Members of the Board of Education West Essex Regional School District West Greenbrook Road North Caldwell, New Jersey 07006 Dear Board Members The comprehensive annual financial repoft of the West Essex Regional 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 Boald of Education (the "Board"). To the best of our knowledge and belief, the data presented in this repoft 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 repoft is presented in four sections: introductory, financial, statistical and single audit. The introductory section includes this transrnittal letter, the District's organizational chart and a list of principal officials. The financial section includes the Independent Auditors' Repoft, tlre 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 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 Amendments of 1996 and the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Goyernments, and Non-Profit Organizations,and the New Jersey's OMB Circulars 04-04 and 15-08, Single Audit Policyfor Recipients of Federal Grants, State Grants and State Aid. Information related to this single audit, including the auditors'repofts on internal control and compliance with applicable laws, regulations, contracts and grants along with findings and questioned costs, are included in the single audit section of this repoft. l) REPORTING ENTITY AND ITS SERVICES: The West Essex Regional School District is an independent reporting entity within the criteria adopted by the Governmental Accounting Standards Board ("GASB") in codification section 2100. All funds of the District are included in