COMPREHENSIVE ANNUAL FINANCIAL REPORT of the KEANSBURG SCHOOL DISTRICT KEANSBURG, NEW JERSEY for the Fiscal Year Ended June 30
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COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE KEANSBURG SCHOOL DISTRICT KEANSBURG, NEW JERSEY For the Fiscal Year Ended June 30, 2013 Prepared by Keansburg School District Business Office KEANSBURG SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2013 Page INTRODUCTORY SECTION Letter of Transmittal 1-5 Organizational Chart 6 Roster of Officials 7 Consultants and Advisors 8 FINANCIAL SECTION Independent Auditors’ Report 9-10 Required Supplementary Information – Part I Management’s Discussion and Analysis 11-18 Basic Financial Statements A. District-Wide Financial Statements: A-1 Statement of Net Position 19 A-2 Statement of Activities 20 B. Fund Financial Statements: Governmental Funds: B-1 Balance Sheet 21 B-2 Statement of Revenues, Expenditures, and Changes in Fund Balances 22 B-3 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 23 Proprietary Funds: B-4 Statement of Net Position 24 B-5 Statement of Revenues, Expenses, and Changes in Fund Net Position 25 B-6 Statement of Cash Flows 26 Fiduciary Funds: B-7 Statement of Fiduciary Net Position 27 B-8 Statement of Changes in Fiduciary Net Position 28 Notes to the Financial Statements 29-45 KEANSBURG SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2013 Page Required Supplementary Information – Part II C. Budgetary Comparison Schedules: C-1 Budgetary Comparison Schedule – General Fund 46-50 C-1a Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund 51-60 C-2 Budgetary Comparison Schedule – Special Revenue Fund 61 Notes to the Required Supplementary Information: C-3 Budget to GAAP Reconciliation 62 Other Supplementary Information D. School Based Budget Schedules: D-1 Combining Balance Sheet 63 D-2 Blended Resource Fund 15 – Schedule of Expenditures Allocated by Resource Type – Actual 64 D-2a Blended Resource Fund 15 – Schedule of Expenditures Allocated by Resource Type – Actual – Port Monmouth Road 65 D-2b Blended Resource Fund 15 – Schedule of Expenditures Allocated by Resource Type – Actual – Caruso 66 D-2c Blended Resource Fund 15 – Schedule of Expenditures Allocated by Resource Type – Actual – Bolger 67 D-2d Blended Resource Fund 15 – Schedule of Expenditures Allocated by Resource Type – Actual – Keansburg High School 68 D-3 Blended Resource Fund 15 – Schedule of Blended Expenditures – Budget and Actual 69-71 D-3a Blended Resource Fund 15 – Schedule of Blended Expenditures – Budget and Actual – Keansburg High School 72-73 D-3b Blended Resource Fund 15 – Schedule of Blended Expenditures – Budget and Actual – Caruso 74-75 D-3c Blended Resource Fund 15 – Schedule of Blended Expenditures – Budget and Actual – Bolger 76-77 D-3d Blended Resource Fund 15 – Schedule of Blended Expenditures – Budget and Actual – Port Monmouth Road 78-79 E. Special Revenue Fund: E-1 Combining Schedule of Program Revenues and Expenditures – Budgetary Basis 80-84 E-2 Preschool Education Aid Schedule of Expenditures – Budgetary Basis 85 KEANSBURG SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2013 Page Other Supplementary Information (Continued) F. Capital Projects Fund: F-1 Summary Schedule of Project Expenditures 86 F-2 Summary Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budgetary Basis 87 F-2a Schedule of Project Revenues, Expenditures, Project Balance and Project Status (TCA Relocation) – Budgetary Basis 88 G. Proprietary Funds: Enterprise Fund: G-1 Combining Schedule of Net Position 89 G-2 Combining Schedule of Revenues, Expenses and Changes in Fund Net Position 90 G-3 Combining Schedule of Cash Flows 91 Internal Service Fund: G-4 Combining Schedule of Net Position N/A G-5 Combining Schedule of Revenues, Expenses, and Changes in Fund Net Position N/A G-6 Combining Schedule of Cash Flows N/A H. Fiduciary Funds: H-1 Combining Statement of Fiduciary Net Position 92 H-2 Combining Statement of Changes in Fiduciary Net Position 93 H-3 Student Activity Agency Fund Schedule of Receipts and Disbursements 94 H-4 Payroll Agency Fund Schedule of Receipts and Disbursements 95 I. Long-Term Debt: I-1 Schedule of Serial Bonds 96 I-2 Schedule of Obligations Under Capital Leases and Notes Payable 97 I-3 Budgetary Comparison Schedule Debt Service Fund 98 STATISTICAL SECTION – Unaudited Financial Trends: J-1 Net Position by Component 99 J-2 Changes in Net Position 100 J-3 Fund Balances, Governmental Funds 101 J-4 Changes in Fund Balance – Governmental Funds 102 KEANSBURG SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2013 Page STATISTICAL SECTION – Unaudited (Continued) Financial Trends (continued): J-5 General Fund – Other Local Revenue by Source 103 Revenue Capacity: J-6 Assessed and Estimated Actual Values of Taxable Property 104 J-7 Direct and Overlapping Property Tax Rates 105 J-8 Schedule of Principal Taxpayers 106 J-9 Property Tax Levies and Collections 107 Debt Capacity: J-10 Ratios of Outstanding Debt by Type 108 J-11 Ratios of General Bonded Debt Outstanding 109 J-12 Direct and Overlapping Bonded Governmental Activities Debt 110 J-13 Legal Debt Margin Information 111 Demographic and Economic Information: J-14 Demographic and Economic Statistics 112 J-15 Principal Employers 113 Operating Information: J-16 Full-Time Equivalent District Employees by Function/Program 114 J-17 Operating Statistics 115 J-18 School Building Information 116 J-19 Schedule of Required Maintenance Expenditures by School Facilities 117 J-20 Insurance Schedule 118-119 SINGLE AUDIT SECTION K-1 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 120-121 K-2 Independent Auditors' Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program on Internal Control over Compliance in Accordance with OMB Circular A-133 and New Jersey OMB Circular 04-04 122-123 K-3 Schedule of Expenditures of Federal Awards, Schedule A 124-125 K-4 Schedule of Expenditures of State Financial Assistance Programs, Schedule B 126-127 K-5 Notes to the Schedules of Awards and Financial Assistance 128-129 K-6 Schedule of Findings and Questioned Costs 130-131 K-7 Summary Schedule of Prior Audit Findings 132 Introductory Section This Page Intentionally Left Blank Keansburg Public Schools 100 Palmer Place Keansburg, New Jersey 07734 (732) 787-2007 http://www.keansburg.k12.nj.us Mr. Gerald North Ms. Corey J. Lowell, SFO Thomas Tramaglini, Ed.D. Superintendent of Schools Business Administrator/ Director of Funding & Curriculum Board Secretary November 27, 2013 Honorable President and Members of the Board of Education Keansburg School District County of Monmouth Keansburg, New Jersey Dear Board Members: The comprehensive Annual Financial Report of the Keansburg Public School District (“District”) for the fiscal year ended June 30, 2013 is hereby submitted. Responsibility for both the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rest with the management of the Keansburg 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 operation 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, a roster of principal officials and a list of consultants and advisors. The financial section includes the general-purpose financial statements and schedules, as well as the auditor’s report thereon. 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 of 1984, the U.S. Office of Management and Budget (“OMB”) Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, and the State Treasury OMB Circular Letter 04-04, Single Audit policy for Recipients of Federal Grants, State Grants and State Aid Payments. Information related to this single audit, including the auditor’s report on the internal structure and compliance with applicable laws and regulations and findings and recommendations, are included in the single audit section of this report. 1. REPORTING ENTITY AND ITS SERVICES: Keansburg School District is an independent reporting entity within the criteria adopted by the GASB as established by Statement No. 14 as amended by GASB Statement No. 39. All funds and account groups of the District are included in this report. The Keansburg Board of Education and all its schools constitute the District’s reporting entity. Believe, Understand, and Realize Goals 1 The District operates four schools and two Pre-K sites and provides a full range of educational services appropriate to grade levels Pre-K through 12. Pre-K students ages three and four are housed in temporary classroom units which are located adjacent to the Port Monmouth Road School and former Caruso Elementary School. Grades Kindergarten through grade two are housed in Port Monmouth Elementary School and grades three and four who are assigned to Caruso Elementary School attend class in a rented school facility which was formerly St. Ann’s Elementary School. Grades five through eight attend the Joseph Bolger Middle School and grades nine through twelve are housed in Keansburg High School. Each school includes regular as well as special education for handicapped children. The District completed the 2012-2013 fiscal year with an average daily enrollment of 1,637.