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Southwestern Community College District Southwestern Community College District Chula Vista, California Basic Financial Statements, Single Audit, State Compliance, Supplementary Information, and Other Information with Independent Auditors’ Reports For the Year Ended June 30, 2019 Southwestern Community College District Table of Contents Page INTRODUCTORY SECTION (Unaudited) Board of Trustees and Executive Officials ...................................................................................................................... i FINANCIAL SECTION Independent Auditors’ Report on Financial Statements .......................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information - Unaudited) ........................... 5 Basic Financial Statements: Statement of Net Position ...................................................................................................................................... 12 Statement of Activities and Changes in Net Position ............................................................................................ 15 Statement of Cash Flows ........................................................................................................................................ 16 Statement of Fiduciary Net Position ...................................................................................................................... 21 Statement of Changes in Fiduciary Net Position ................................................................................................... 22 Notes to the Basic Financial Statements ................................................................................................................ 25 Required Supplementary Information (Unaudited): Schedules of Changes in Proportionate Share of the Net Pension Liability: California Public Employees’ Retirement System (CalPERS)........................................................................ 62 California State Teachers’ Retirement System (CalSTRS) ............................................................................. 62 Schedules of Contributions: California Public Employees’ Retirement System (CalPERS)........................................................................ 63 California State Teachers’ Retirement System (CalSTRS) ............................................................................. 63 Schedule of Changes in Net OPEB Liabilities and Related Ratios ........................................................................ 64 Schedule of Contributions – OPEB ........................................................................................................................ 65 Supplementary Information: Combining Schedule of Assets, Liabilities, and Fund Balances ..................................................................... 70 Reconciliation of Combining Schedule of Assets, Liabilities, and Fund Balances to Basic Statement of Net Position ...................................................................................... 73 Combining Schedule of Revenues, Expenditures/Expenses, and Changes in Fund Equity/Net Position .......................................................................................................... 74 Reconciliation of Combining Schedule of Revenues, Expenditures/Expenses, and Changes in Fund Equity to Basic Statement of Activities and Changes in Net Position ........................................................................................................ 77 Southwestern Community College District Table of Contents (Continued) Page Single Audit: 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 .........................................................................................81 Report on Compliance for each Major Federal Program and on Internal Control Over Compliance and on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ...................................................................................83 Schedule of Expenditures of Federal Awards .........................................................................................................85 Notes to the Schedule of Expenditures of Federal Awards .....................................................................................87 Schedule of Findings and Questioned Costs ...........................................................................................................88 State Compliance: Independent Auditors’ Report on State Compliance Requirements ................................................................93 Other Information: Purpose of Schedules ..............................................................................................................................................97 Schedule of Workload Measures for State General Apportionment and Annual Actual Attendance ...................................................................................................................................99 Reconciliation of Annual Financial and Budget Report (CCFS-311) with Audited Financial Statements ............................................................................................................................100 Reconciliation of 50% Calculation with Audited Financial Statements ............................................................................................................................102 Reconciliation of Education Protection Account Expenditures with Audited Financial Statements ............................................................................................................................103 Schedule of Expenditures of State Awards ...........................................................................................................104 Budget Comparison Schedule – General Fund Unrestricted and Restricted .........................................................105 Southwestern Community College District Introductory Section Southwestern Community College District (the “District”) is located in Chula Vista, San Diego County. The District presently operates one primary campus in Chula Vista with extension sites in Otay Mesa, San Ysidro and National City. There have been no changes in the District’s boundaries during the current year. The Governing Board of the District for the fiscal year ended June 30, 2019 was composed of the following members: Member Office Term Expires Roberto Alcantar President November 2020 Nora E. Vargas Vice President November 2022 Leticia Cazares Board Member November 2020 Griselda A. Delgado Board Member November 2020 Tim Nader Board Member November 2022 Rudolph Villegas Student Trustee May 2019 The Executive and Senior Administration of the District for the fiscal year ended June 30, 2019 was composed of the following members: Member Office Kindred Murillo, Ed.D. Superintendent/President Kelly Hall Vice-President for Business & Financial Affairs Rose Del Gaudio Vice-President, Human Resources Minou Spradley, Ph.D. Vice-President for Academic Affairs Vacant Vice-President for Student Affairs i This page intentionally left blank. ii 3939352 Pun & McGeady_L_final.pdf 2 1/14/14 3:48 PM INDEPENDENT AUDITORS’ REPORT To the Board of Trustees of the Southwestern Community College District Chula Vista, California Report on Financial Statements We have audited the accompanying financial statements of the business-type activities and the fiduciary funds of the Southwestern Community College District (the “District”) as of and for the year ended June 30, 2019, 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 did not audit the financial statements of the Southwestern College Foundation (the “Foundation”), an aggregate discretely presented component unit of the District. Those financial statements were audited by other auditors, whose report dated October 17, 2019 has been furnished to us, and our opinion on the basic financial statements of the District, insofar as it relates to the Foundation, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the
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