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CAFR Includes the Dishiet's Basic Financial Statement Prepared in Accordance with Governrnental Acc'ounting Standards Board Statement 34

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CAFR Includes the Dishiet's Basic Financial Statement Prepared in Accordance with Governrnental Acc'ounting Standards Board Statement 34 SCHOOL DISTRICT OF BERLIN BOROUGH Berlin Borough Board of Education Berlin, New Jersey Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2018 Comprehensive Annual Financial Report of the Berlin Borough Board of Education Berlin, New Jersey For the Fiscal Year Ended June 30, 2018 Prepared by Berlin Borough Board of Education Finance Department BERLIN BOROUGH SCHOOL DISTRICT INTRODUCTORY SECTION Page Letter of Transmittal 2 Organizational Chart 7 Roster of Officials 8 Consultants and Advisors 9 FINANCIAL SECTION Independent Auditor's Report 11 K-1 Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 14 Required Supplementary Information - Part I Management's Discussion and Analysis 17 Basic Financial Statements A. District-wide Financial Statements: A-1 Statement of Net Position 27 A-2 Statement of Activities 28 B. Fund Financial Statements: Governmental Funds: B-1 Balance Sheet 30 B-2 Statement of Revenues, Expenditures, and Changes in Fund Balances 31 B-3 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 32 Proprietary Funds: B-4 Statement of Net Position 33 B-5 Statement of Revenues, Expenses, and Changes in Fund Net Position 34 B-6 Statement of Cash Flows 35 Fiduciary Funds: B-7 Statement of Fiduciary Net Position 36 B-8 Statement of Changes in Fiduciary Net Position 37 Notes to the Financial Statements 38 Page Required Supplementary Information - Part II C. Budgetary Comparison Schedules C-1 Budgetary Comparison Schedule - General Fund 72 C-1a Combining Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (if applicable) N/A C-2 Budgetary Comparison Schedule - Special Revenue Fund 78 Notes to the Required Supplementary Information C-3 Budget-to-GAAP Reconciliation 79 Required Supplementary Information - Part III L. Schedules Related to Accounting and Reporting for Pensions (GASB-68) L-1 Schedule of the District's Proportionate Share of the Net Pension Liability - Public Employees Retirement System 81 L-2 Schedule of the District Contributions - Public Employees Retirement System 82 L-3 Schedule of the District's Proportionate Share of the Net Pension Liability - Teachers' Pension and Annuity Fund 83 M. Schedule Related to Accounting and Reporting for OPEB (GASB-75) M-1 Schedule of Changes in the District's Total OPEB Liability Share of the Net OPEB Liability and Related Ratios 84 Notes to the Required Supplementary Information - Part III 85 Other Supplementary Information D. School Level Schedules : N/A E. Special Revenue Fund: E-1 Combining Schedule of Revenues and Expenditures Special Revenue Fund - Budgetary Basis 88 F. Capital Projects Fund: F-1 Summary Statement of Revenues, Expenditures, and Changes in Fund Balance - Budgetary Basis 92 G. Proprietary Fund: Enterprise Fund: G-1 Combining Statement of Net Position 95 G-2 Combining Statement of Revenues, Expenses and Changes in Fund Net Position 96 G-3 Combining Statement of Cash Flows 97 Internal Service Fund: G-4 Combining Statement of Net Position 98 G-5 Combining Statement of Revenues, Expenses and Changes in Fund Net Position 99 G-6 Combining Statement of Cash Flows 100 Page H. Fiduciary Funds: H-1 Combining Statement of Fiduciary Net Position 102 H-2 Combining Statement of Changes in Fiduciary Net Position 103 H-3 Student Activity Agency Fund Schedule of Receipts and Disbursements 104 H-4 Payroll Agency Fund Schedule of Receipts and Disbursements 105 I. Long-Term Debt: I-1 Schedule of Serial Bonds 107 I-2 Statement of Early Retirement Incentive Plan Payable 108 I-3 Budgetary Comparison Schedule - Debt Service Fund 109 I-4 Schedule of Obligations under Capital Leases 110 STATISTICAL SECTION (Unaudited) J-1 Net Position by Component 112 J-2 Changes in Net Position, Last Ten Fiscal Years 113 J-3 Fund Balances, Governmental Funds, Last Ten Fiscal Years 115 J-4 Changes in Fund Balances, Governmental Funds, Last Ten Fiscal Years 116 J-5 General Fund - Other Local Revenue by Source, Last Ten Fiscal Years 117 J-6 Assessed Value and Actual Value of Taxable Property, Last Ten Fiscal Years 118 J-7 Direct and Overlapping Property Tax Rates, Last Ten Fiscal Years 119 J-8 Principal Property Tax Payers, Current Year and Nine Years Ago 120 J-9 Property Tax Levies and Collections, Last Ten Fiscal Years 121 J-10 Ratios of Outstanding Debt by Type, Last Ten Fiscal Years 122 J-11 Ratios of Net General Bonded Debt Outstanding, Last Ten Fiscal Years 123 J-12 Ratios of Overlapping Governmental Activities Debt, As of December 31, 2017 124 J-13 Legal Debt Margin Information, Last Ten Fiscal Years 125 J-14 Demographic and Economic Statistics 126 J-15 Principal Employers, Current Year & Nine Years Ago (information not available) N/A J-16 Full-time Equivalent District Employees by Function/Program, Last Ten Fiscal Years 127 J-17 Operating Statistics, Last Ten Fiscal Years 128 J-18 School Building Information, Last Ten Fiscal Years 129 J-19 Schedule of Required Maintenance, Last Ten Fiscal Years 130 J-20 Insurance Schedule 131 SINGLE AUDIT SECTION K-2 Report on Compliance for Each Major State Program; Report on Internal Control over Compliance; and Report on the Schedule of Expenditures of State Financial Assistance as Required by New Jersey Treasury Circular OMB 15-08 133 K-3 Schedule of Expenditures of Federal Awards, Schedule A 135 K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 136 K-5 Notes to the Schedules of Awards and Financial Assistance 138 K-6 Schedule of Findings and Questioned Costs 140 K-7 Financial Statement Findings 142 K-7 Federal Awards and State Financial Assistance Findings and Questioned Costs 143 K-8 Summary Schedule of Prior Audit Findings 144 Introductory Section BERLIN BOROUGH SCHOOL DISTRICT "Vllhere Sadents Discover Their Potential" Kristen Martello, Ed.D Cande Kistof Supefintendent 8usiness Administator Januwy 37,2019 Honorable President and Members of the Board of Education Berlin Borough School District 215 S. Franklin Ave Berlin, New Jersey 08009 The comprehensive annual financial report of the Berlin Borough $chool Diskict for the fiscal year ended June 30, 2018 is hereby submitted. This CAFR includes the Dishiet's Basic Financial Statement prepared in accordance with Governrnental Acc'ounting Standards Board Statement 34. Responsibility for both the accuracy of the data and completeness and faimess of the presentation, including all disclosures, rests with the management of the Board of Education. To the best of our knowledge and belie{, the data presented in this report is accurate in all material respects and is reported in a manner deigned to present fairly the financial position and results of operations of the varjous funds and account groups of the District. All disclosures necessary to enable the reader to gain an understanding of the Distict'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 cha* and a list of principal officials. The financial section includes the ganeral purpose financial stat€meflts and schedules, as well as the auditor's report thereon. The statistical section includes selected financial and dernographic informatioq generally presented on a multi- year basis. The Dishict is required to undergo an annual single audit in conformity with the provisions of the Title 2 U.S. Code of federal regulations, cost principals, and audit requirements for federal awards {uniform guidance}: and the State of New Jersey Circular OMBI5-08. Information related to this single audit, including ttre auditor's report on the internal conhol strucftre and compliance with applicable laws and regulations and findings and recommendations, are included in the single audit section of this report. 1) REPORTTNG ENTITY AND rTS SERVTCES Berlin Borough School Dishict is an independent reporting entity within the criteria adopted by the Governmental Accounting Standards Board (GASB) as established by the National boun*il on Governmental Accounting (NCGA) Statement # 3, which defines govemmental repo*ing entities. All funds and account groups of the Diskict are included in this report. The-Berlin Borough Board of Education and all its school buildings constitute the District's re,porting entity. The school district consists of one school the Berlin Community School. The District provides a full range of educational services appropriate to grade level PSDIK througlr 8. Thise include regular as well as special education for handicapped youngsters. * * 215 south Franklin Avenue Berlin, NJ 0E009 Phone (856) 767-0129 Fax {856) 767-246s www.bcsbedin.org 2 The Disfrict completed the 2017-2018 school year with an enrollment of 823 students as of June 30, 2018. The following details the changes in the student enrollment of the Dishict cver the last ten years. AVERACE DAILY ENROLLMENT Fiscal Year Student Enrollment Percent Change 2017-2A18 823 -0.60 24rc-20tX 828 -2.93 2015-2016 853 -1.04 2A1+2915 862 -1.01 2Qt3-20t4 87r - 2.3 2At2-2An 89t +2.89 20tb2at2 866 +1.29 2010-201 I 855 +2.33 zAW-zorc 835 +2.45 2008-2009 815 -1"92 2) ECONOMTC CONDTTION AND OUTLOOK 2012 - Berlin Borough had 7,606 inhabitants in a 3.6 square mile ssmi.rural, part farming and residential community. It had experienced a period of greatly increased housing development which is reflected tn al9alo (1,457, population increase from tile 2000 census. An additioffil 471 unit aparhnent cornplex has been apprcved with cmstruction to start in the coming school year. It is expected that if this project eomes to &uition it wilt encourage an increase in business activity and shrdent enrollment.
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