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(1) Summary of Significant Accounting Policies CCOMPREHENSIVE AANNUAL FFINANCIAL RREPORT THE SCHOOL BOARD OF THE CITY OF RICHMOND A COMPONENT UNIT OF THE CITY OF RICHMOND, VIRGINIA FOR THE FISCAL YEAR ENDED JUNE 30, 2013 Richmond Public Schools Richmond, Virginia RICHMOND PUBLIC SCHOOLS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2013 Prepared By: Department of Budget and Financial Reporting Dana T. Bedden, Ed. D. Superintendent of Schools (Effective January 13, 2014) Ralph L. Westbay Interim Executive Director of Budget and Finance (Effective December 31, 2013) Angela R. Anderson Chief of Financial Reporting (As of November 23, 2013) www.richmond.k12.va.us THE SCHOOL BOARD OF THE CITY OF RICHMOND COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 TABLE OF CONTENTS INTRODUCTORY SECTION (unaudited) Letter of Transmittal ......................................................................................................... i School Board Members and School Board Officials ........................................................ xiii Organizational Chart ......................................................................................................... xiv GFOA Certificate of Achievement for Excellence in Financial Reporting ....................... xv ASBO Certificate of Excellence in Financial Reporting ................................................... xvi FINANCIAL SECTION Report of Independent Auditor ....................................................................................... 1 Management’s Discussion and Analysis .......................................................................... 7 BASIC FINANCIAL STATEMENTS: Government-wide Financial Statements Exhibit A Statement of Net Position – Governmental Activities .................................................... 26 Exhibit B Statement of Activities – Governmental Activities ......................................................... 27 Fund Financial Statements Governmental Funds’ Financial Statements and Reconciliations: Exhibit C Balance Sheet – Governmental Funds ............................................................................. 29 Exhibit D Reconciliation of the Governmental Funds’ Balance Sheet to the Statement of Net Position .................................................................................. 30 Exhibit E Statement of Revenues, Expenditures and Changes in Fund Balances ........................ 31 Exhibit F Reconciliation of the Governmental Funds’ Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities ....................................................................................... 32 Fiduciary Funds’ Financial Statements Exhibit G Statement of Fiduciary Net Position ............................................................................. 33 Exhibit H Statement of Changes in Fiduciary Net Position ............................................................ 34 i THE SCHOOL BOARD OF THE CITY OF RICHMOND COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 TABLE OF CONTENTS Notes to Basic Financial Statements ........................................................................... 35 REQUIRED SUPPLEMENTARY INFORMATION (unaudited): Exhibit I General Fund: Budgetary Comparison Schedule – Budget and Actual .......................... 69 Defined Benefit Pension Plan Information: Exhibit J Virginia Retirement System Agent Multiple-Employer Defined Benefit Pension Plan Participation – Schedule of Funding Progress .......................................... 75 Exhibit K Early Retirement Incentive Plan for Employees of Richmond Public Schools – Schedules of Funding Progress and Employer Contributions ......................... 76 Exhibit L Other Post employment Employee Benefits – Schedules of Funding Progress and Employer Contributions ......................... 78 OTHER SUPPLEMENTARY INFORMATION: Exhibit M Fiduciary Funds Financial Statements: Statement of Changes in Position and Liabilities-Agency Funds……………………. 81 STATISTICAL SECTION (unaudited) The School Board of the City of Richmond, Virginia: Table 1 General Fund Expenditures by Function – Last Ten Fiscal Years ....................................... 85 Table 2 General Fund Revenues by Source – Last Ten Fiscal Years ................................................ 87 Table 3 Net Position of Governmental Activities – Last Ten Fiscal Years ………………..................... 88 Table 4 Changes in Net Position of Governmental Activities – Last Ten Fiscal Years .................... 89 Table 5 Fund Balances of Government Funds – Last Ten Years ..................................................... 90 Table 6 Changes in Fund Balances of Government Funds – Last Ten Years .................................. 91 Table 7 Schedule of Expenditures of Federal Awards …………………………………………… .................. 92 Table 8 Annual per Pupil Cost – Last Ten Fiscal Years .................................................................... 94 Table 9 Attendance/Membership Statistics – Last Ten Fiscal Years ............................................... 95 Table 10 Free & Reduced Lunch Data – Last Ten Fiscal Years .......................................................... 96 ii THE SCHOOL BOARD OF THE CITY OF RICHMOND COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 TABLE OF CONTENTS Table 11 Full-Time Equivalent Employees by Function – Last Ten Fiscal Years … ......................... 97 Table 12 Teacher Data – Last Ten Fiscal Years ................................................................................. 98 Table 13 Pupil/Teacher Ratios – Last Ten Fiscal Years ................................................................... 99 Table 14 Schedule of School Buildings ............................................................................................. 100 Table 15 Schools with Accreditation Scores Reported to the State ............................................... 102 Table 16 Ratios of Outstanding Debt – Last Three Fiscal Years ...................................................... 103 City of Richmond, Virginia: Table 17 Net Position by Component of the City of Richmond – Last Ten Fiscal Years ................ 104 Table 18 Changes in Net Position of the City of Richmond – Last Ten Fiscal Years ........................ 105 Table 19 Fund Balances of Governmental Funds of the City of Richmond – Last Ten Fiscal Years .................................................................................................. 107 Table 20 Changes in Fund Balance of Governmental Funds of the City of Richmond – Last Ten Fiscal Years ..................................................................................................... 108 Table 21 Governmental Activities Tax Revenue by Source of the City of Richmond – Last Ten Fiscal Years ................................................................................................... 109 Table 22 General Governmental Tax Revenues by Source of the City of Richmond – Last Ten Fiscal Years .................................................................................................. 110 Assessed Value and Estimated Actual Value of Taxable Property of the City of Richmond- Last Ten Fiscal Years .................................................................. 110 Table 23 Real Estate Tax Levies and Collections of the City of Richmond – Last Ten Years ........................................................................................................... 111 Personal Property Tax Levies and Collections of the City of Richmond – Last Ten Years .......................................................................................................... 111 Table 24 Principal Property Tax Payers of the City of Richmond ................................................. 112 Principal Employers of the City of Richmond .................................................................... 112 iii THE SCHOOL BOARD OF THE CITY OF RICHMOND COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 TABLE OF CONTENTS Table 25 Pledged Revenue Coverage of the City of Richmond – Last Ten Years .............................. 113 Table 26 Legal Debt Margin Information of the City of Richmond – Last Ten Fiscal Years ............ 114 Table 27 Ratios of Outstanding Debt by Type of the City of Richmond – Last Ten Fiscal Years ................................................................................................. 115 Ratios of General Bonded Debt Outstanding of the City of Richmond – Last Ten Fiscal Years ................................................................................................. 115 Table 28 Demographic and Economic Statistics of the City of Richmond – Last Ten Years ........................................................................................................... 116 Table 29 Full-Time Equivalent City Government Employees by Function of the City of Richmond – Last Ten Fiscal Years .................................................................. 117 Table 30 Operating Indicators by Function of the City of Richmond – Last Ten Fiscal Years .................................................................................................. 118 Table 31 Capital Assets Statistics by Function of the City of Richmond – Last Ten Fiscal Years .................................................................................................. 119 iv Introductory Section (unaudited) The Introductory Section contains
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