Metuchen School District Comprehensive Annual
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2012.06.0087 6/19/12 9:36 AM Page 1 METUCHEN SCHOOL DISTRICT Metuchen, New Jersey COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 METUCHEN SCHOOL DISTRICT METUCHEN, NEW JERSEY COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 Prepared by: Vincent Caputo Superintendent of Schools Michael Harvier Business Administrator/Board Secretary COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE METUCHEN SCHOOL DISTRICT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS INTRODUCTORY SECTION Page Letter of Transmittal 1-4 Organizational Chart 5 Roster of Officials 6 Consultants and Advisors 7 FINANCIAL SECTION Independent Auditors’ Report 8-10 Required Supplementary Information - Part I Management’s Discussion and Analysis 11-19 Basic Financial Statements A. District-Wide Financial Statements A-1 Statement of Net Position 20 A-2 Statement of Activities 21 B. Fund Financial Statements Governmental Funds: B-1 Balance Sheet 22 B-2 Statement of Revenues, Expenditures and Changes in Fund Balances 23 B-3 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 24 Proprietary Funds: B-4 Statement of Net Position 25 B-5 Statement of Revenues, Expenses and Changes in Net Position 26 B-6 Statement of Cash Flows 27 Fiduciary Funds: B-7 Statement of Fiduciary Net Position 28 B-8 Statement of Changes in Fiduciary Net Position 29 Notes to the Basic Financial Statements 30-56 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE METUCHEN SCHOOL DISTRICT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS (Continued) FINANCIAL SECTION (Continued) Page Required Supplementary Information - Part II C. Budgetary Comparison Schedules C-1 Budgetary Comparison Schedule - General Fund 57-60 C-1a Combining Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund N/A C-2 Budgetary Comparison Schedule - Special Revenue Fund 61 Note to the Required Supplementary Information C-3 Budget-to-GAAP Reconciliation 62 Required Supplementary Information - Part III L. Schedules Related to Accounting and Reporting for Pensions (GASB 68) L-1 Schedule of District’s Proportionate Share of the Net Pension Liability - PERS 63 L-2 Schedule of District Contributions - PERS 64 L-3 Schedule of the District’s Proportionate Share of the Net Pension Liability - TPAF 65 Other Supplementary Information E. Special Revenue Fund E-1 Combining Schedule of Revenues and Expenditures, Special Revenue Fund - Budgetary Basis 66-69 E-2 Schedule of Preschool Education Aid Expenditures - Budgetary Basis N/A F. Capital Projects Fund F-1 Summary Schedule of Project Expenditures 70 F-2 Summary Schedule of Revenues, Expenditures and Changes in Fund Balance - Budgetary Basis 71 F-2a Schedule of Project Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis 72-74 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE METUCHEN SCHOOL DISTRICT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS (Continued) FINANCIAL SECTION (Continued) Page G. Proprietary Funds Enterprise Fund: G-1 Combining Statement of Net Position 75 G-2 Combining Statement of Revenues, Expenses and Changes in Net Position 76 G-3 Combining Statement of Cash Flows 77 Internal Service Fund: 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 H-1 Combining Statement of Fiduciary Net Position 78 H-2 Combining Statement of Changes in Fiduciary Net Position 79 H-3 Student Activity Agency Fund Schedule of Receipts and Disbursements 80 H-4 Payroll Agency Fund Schedule of Receipts and Disbursements 81 I. Long-Term Debt I-1 Schedule of Serial Bonds Payable 82 I-2 Schedule of Obligations Under Capital Leases 83 I-3 Debt Service Fund Budgetary Comparison Schedule 84 STATISTICAL SECTION (Unaudited) Financial Trends J-1 Net Position by Component 85 J-2 Change in Net Position 86 J-3 Fund Balances - Governmental Funds 87 J-4 Changes in Fund Balances - Governmental Funds 88 J-5 General Fund Other Local Revenue by Source 89-90 Revenue Capacity J-6 Assessed Value and Estimated Actual Value of Taxable Property 91-92 J-7 Direct and Overlapping Property Tax Rates 93 J-8 Principal Property Taxpayers 94 J-9 Property Tax Levies and Collections 95 Debt Capacity J-10 Ratios of Outstanding Debt by Type 96 J-11 Ratios of General Bonded Debt Outstanding 97 J-12 Ratios of Overlapping Governmental Activities Debt 98 J-13 Legal Debt Margin Information 99 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE METUCHEN SCHOOL DISTRICT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS (Continued) Page Demographic and Economic Information J-14 Demographic and Economic Statistics 100 J-15 Principal Employers 101 Operating Information J-16 Full-time Equivalent District Employees by Function/Program 102 J-17 Operating Statistics 103-104 J-18 School Building Information 105 J-19 Schedule of Required Maintenance Expenditures by School Facility 106 J-20 Insurance Schedule 107-108 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 Financial Statements Performed in Accordance with Government Auditing Standards 109-110 K-2 Independent Auditor’s Report on Compliance for Each Major Federal and State Program and Report on Internal Control Over Compliance in Accordance with the Uniform Guidance and New Jersey OMB Circular 15-08 111-113 K-3 Schedule of Expenditures of Federal Awards 114-115 K-4 Schedule of Expenditures of State Financial Assistance 116-117 K-5 Notes to Schedules of Awards and State Awards 118-119 K-6 Schedule of Findings and Questioned Costs Part I - Summary of Auditors’ Results 120-121 Part II - Financial Statement Section 122 Part III - Federal and State Award Section 123 K-7 Summary Schedule of Prior-Year Audit Findings 124 INTRODUCTORY SECTION Metuchen School District Organizational Chart Superintendent of Schools Vincent Caputo Business Administrator Michael Harvier Administrative Assistant Debra Finden Assistant Supervisor Superintendent of of Special School Schools/ Education Principals Richard Cohen Bob Capra Secretary Secretary Principal Principal Principal Principal Amy Opitz Maureen Millar MHS EMS Campbell School Moss School Secretaries Secretaries Secretaries Secretary Teachers Teachers Teachers Teachers Paraprofessionals Paraprofessionals Paraprofessionals Paraprofessionals 5 METUCHEN SCHOOL DISTRICT METUCHEN, NEW JERSEY ROSTER OF OFFICIALS JUNE 30, 2016 Term Members of the Board of Education Expires Jonathan Lifton, President 2016 Dan E. Benderly, Vice President 2017 Michael Stern 2016 John Mindler 2016 Benjamin Small 2017 Jacqueline Gibson 2017 Aileen McGuire 2018 Justin Manley 2018 Merrill Lunt 2018 Other Officials Vincent Caputo, Superintendent of Schools Michael Harvier, Business Administrator/Board Secretary Richard Cohen, Assistant Superintendent of Schools/Principal Moss School Robert Capra, Supervisor of Student Personnel Services Rebecca A. Cuthbert, Treasurer 6 METUCHEN SCHOOL DISTRICT Consultants and Advisors Architect E I Associates Eight Ridgedale Avenue Cedar Knolls, New Jersey 07927 Audit Firm Baker Tilly Virchow Krause LLP 99 Wood Avenue South Suite 801 Iselin, NJ 08830-2734 Attorney Busch Law Group, LLP 450 Main Street Metuchen, NJ 08840 Official Depository TD Bank, N.A. 2035 Limestone Drive Wilmington, DE 19808 Bond Counsel McManimon & Scotland, L.L.C. Attorneys at Law One Riverfront Plaza, Fourth Floor Newark, New Jersey 07102-5408 7 FINANCIAL SECTION Baker Tilly Virchow Krause, LLP 99 Wood Avenue South, Ste 801 Iselin, NJ 08830-2734 tel 732 388 5210 tel 800 267 9405 fax 888 264 9617 bakertilly.com Independent Auditors’ Report Honorable President and Members of the Board of Education Metuchen School District County of Middlesex, New Jersey Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of Metuchen School District, County of Middlesex, New Jersey (the “District”), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and audit requirements as prescribed by the Office of School Finance, Department of Education, State of New Jersey. Those standards and requirements require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements