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Union County Vo-Tech Comprehensive Annual Financial Report of the Union County Vocational-Technical Schools County of Union Scotch Plains, New Jersey For the Fiscal Year Ended June 30, 2019 Prepared by Union County Vocational-Technical Schools, Board of Education Finance Department TABLE OF CONTENTS INTRODUCTORY SECTION Page Letter of Transmittal 1-4 Roster of Officials 5 Consultants and Advisors 6 Organizational Chart 7 FINANCIAL SECTION Independent Auditor's Report 8-10 REQUIRED SUPPLEMENTARY INFORMATION - Part I 11 Management's Discussion and Analysis (Unaudited) 12-24 BASIC FINANCIAL STATEMENTS 25 A. District-Wide Financial Statements 26 A-1 Statement of Net Position 27 A-2 Statement of Activities 28 B. Major Fund Financial Statements 29 Governmental Funds: B-1 Balance Sheet 30-31 B-2 Statement of Revenues, Expenditures, and Changes in Fund Balance 32 B-3 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 33 Other Funds 34 Propriety Funds: 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 Fiduciary Funds: B-7 Statement of Fiduciary Net Position 38 B-8 Statement of Changes in Fiduciary Net Position 39 Notes to the Financial Statements 40-81 TABLE OF CONTENTS (Continued) Page REQUIRED SUPPLEMENTARY INFORMATION - Part II 82 C. Budgetary Comparison Schedules 83 C-1 General Fund 84-89 C-1A General Fund - Education Jobs N/A C-2 Special Revenue Fund 90 C-3 Budget to GAAP Reconciliation 91 REQUIRED SUPPLEMENTARY INFORMATION - Part Ill 92 L. Schedules Related to Accounting and Reporting for Pension (GASB 68) 93 L-1 Schedule of the District's Proportionate Share of the Net Pension Liability- Public Employees Retirement System - Last Ten Years 94 L-2 Schedule of the District's Contributions - Public Employees Retirement System - Last Ten Years 95 L-3 Schedule of the District's Proportionate Share of the Net Pension Liability Teachers Pension and Annuity Fund - Last Ten Years 96 L-4 Schedules Related to Accounting and Reporting for Pension (GASB 68) Notes to the Required Supplementary Information Part Ill for the Fiscal Year Ended June 30, 2019 97 REQUIRED SUPPLEMENTARY INFORMATION- Part IV 98 M. Schedules Related to Accounting and Reporting for OPEB (GASB 75) 99 M-1 Schedule of the District's Proportionate Share of the Net OPEB Liability - Public Employees Retirement System - Last Ten Years 100 M-2 Schedule Related to Accounting and Reporting for OPEB (GASB 75) Notes to the Required Supplementary Information Part IV for the Fiscal Year Ended June 30, 2019 101 OTHER SUPPLEMENTARY INFORMATION 102 D. School Level Schedules N/A E. Special Revenue Fund 103 E-1 Combining Schedule of Revenues and Expenditures-Budgetary Basis 104-105 E-2 Demonstrably Effective Program Aid Schedule of Expenditures- Budgetary Basis N/A E-3 Early Childhood Program Aid Schedule of Expenditures- Budgetary Basis N/A E-4 Statement of Distance Learning Network Aid Schedule of Expenditures-Budgetary Basis N/A E-5 Instructional Supplement Aid Schedule of Expenditures- Budgetary Basis N/A E-6 Targeted At Risk Aid-Budgetary Basis N/A TABLE OF CONTENTS (Continued) Page F. Capital Projects Fund 106 F-1 Summary Statement of Project Expenditures-Budgetary Basis 107 F-2 Summary Schedule of Revenues, Expenditures, and Change in Fund Balance-Budgetary Basis 108 F-2a Schedule of Project Revenues, Expenditures, Project Balance, and Project Status-Budgetary Basis - Various Acquisitions and Improvement to Union County Vocational School 109 F-2b Schedule of Project Revenues, Expenditures, Project Balance, and Project Status-Budgetary Basis - Various Acquisitions and Improvements to Union County Vocational School 110 F-2c Schedule of Project Revenues, Expenditures, Project Balance, and Project Status-Budgetary Basis - Construction of Campus Walkways and Purchase of Equipment 111 F-2d Schedule of Project Revenues, Expenditures, Project Balance, and Project Status-Budgetary Basis - Construction of Addition and Renovation of West Hall 112 F-2e Schedule of Project Revenues, Expenditures, Project Balance, and Project Status-Budgetary Basis - Various Acquisitions and Improvement to Union County Vocational School 113 F-2f Schedule of Project Revenues, Expenditures, Project Balance, and Project Status-Budgetary Basis - Various Acquisitions and Improvement to Union County Vocational School 114 F-2g Schedule of Project Revenues, Expenditures, Project Balance, and Project Status-Budgetary Basis - Various Acquisitions and Improvement to Union County Vocational School 115 F-2h Schedule of Project Revenues, Expenditures, Project Balance, and Project Status-Budgetary Basis - Various Improvements to Union County Vocational School 116 F-2i Schedule of Project Revenues, Expenditures, Project Balance, and Project Status-Budgetary Basis - Improvement to Union County Vocational School -APA/Kean Easement 117 F-2j Schedule of Project Revenues, Expenditures, Project Balance, and Project Status-Budgetary Basis - Various Acquisitions and Improvement to Union County Vocational School 118 F-2k Schedule of Project Revenues, Expenditures, Project Balance, and Project Status-Budgetary Basis - Various Acquisitions and Improvement to Union County Vocational School 119 F-21 Schedule of Project Revenues, Expenditures, Project Balance, and Project Status-Budgetary Basis - Various Acquisitions and Improvement to Union County Vocational School 120 F-2m Schedule of Project Revenues, Expenditures, Project Balance, and Project Status-Budgetary Basis - Various Acquisitions and Improvement to Union County Vocational School 121 G. Proprietary Funds 122 Enterprise Funds: G-1 Combining Statement of Net Position 123 G-2 Combining Statement of Revenues, Expenses and Changes in Fund Net Position 124 G-3 Combining Statement of Cash Flows 125 TABLE OF CONTENTS (Continued) Page H. Fiduciary Fund 126 H-1 Combining Statement of Fiduciary Net Position 127 H-2 Combining Statement of Changes in Fiduciary Net Position 128 H-3 Schedule of Receipts and Disbursements-Student Activity Agency Fund 129 H-4 Schedule of Receipts and Disbursements-Payroll Agency Fund 130 I. Long-Term Liabilities 131 1-1 Schedule of Serial Bonds N/A 1-2 Schedule of Obligations Under Capital Leases 132 STATISTICAL SECTION (UNAUDITED) J-1 Net Position by Component 133 J-2 Changes in Net Position 134-135 J-3 Fund Balances - Governmental Funds 136 J-4 Changes in Fund Balances - Governmental Funds 137 J-5 General Fund Other Local Revenue by Source 138 J-6 Assessed Value and Actual Value of Taxable Property N/A J-7 Direct and Overlapping Property Tax Rates N/A J-8 Principal Property Tax Payers N/A J-9 Property Tax Levies and Collections 139 J-10 Ratios of Outstanding Debt by Type N/A J-11 Ratio of Net Bonded Debt Outstanding N/A J-12 Direct and Overlapping Governmental Activities Debt N/A J-13 Legal Debt Margin Information N/A J-14 Demographic and Economic Statistics N/A J-15 Principal Employers N/A J-16 Full-Time Equivalent District Employees by Function/Program 140 J-17 Operating Statistics 141 J-18 School Building Information 142 J-19 Schedule of Required Maintenance 143 J-20 Insurance Schedule 144 SINGLE AUDIT SECTION K-1 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Basic Financial Statements Performed in Accordance with Government Auditing Standards 145-146 K-2 Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Federal and State Financial Assistance Programs and on Internal Control Over Compliance in Accordance with Federal Uniform Guidance and New Jersey OMB Circular 15-08 147-148 K-3 Schedule of Expenditures of Federal Awards, Schedule A 149 K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 150 K-5 Notes to the Schedules of Expenditures of Federal Awards and State Financial Assistance 151-152 K-6 Schedule of Findings and Questioned Costs 153-155 K-7 Schedule of Prior Audit Findings 156 INTRODUCTORY SECTION UNION COUNTY VOCATIONAL - TECHNICAL SCHOOLS I 776 Raritan Road, Scotch Plains, New Jersey 07076-2997 (908)889-8288, Ext. I 20 Fax: (908)889-4336 Email: [email protected] Mrs. Gwendolyn S. Ryan Superintendent of Schools November 27, 2019 Honorable President and Members of the Board of Education Union County Vocational-Technical Schools Scotch Plains, New Jersey 07076 Dear Board Members: The comprehensive annual financial report of the Union County Vocational-Technical School (UCVTS) District (District) for the fiscal year ended June 30, 20 I 9, is hereby submitted. Responsibility for both the accuracy of the data and completeness and fairness of the presentation, including all disclosures rests with 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
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