City of Union City School District Union City, New Jersey 36th Street Parking Deck–Opened November 2019 For the Fiscal Year Ended June 30, 2019 Prepared by Union City Board of Education Anthony N. Dragona, Ed.D. Office of the School Business Administrator COMPREHENSIVE ANNUAL FINANCIAL REPORT of the Board of Education of the City of Union City School District Union City, New Jersey For the Fiscal Year Ended June 30, 2019 CITY OF UNION CITY SCHOOL DISTRICT TABLE OF CONTENTS Exhibit No. Page INTRODUCTORY SECTION Letter of Transmittal 1 - 5 ASBOI Certificate of Excellence 6 Organizational Chart 7 Roster of Officials 8 Consultants, Independent Auditors and Advisors 9 FINANCIAL SECTION Independent Auditor's Report 10 - 13 Required Supplementary Information - Part I Management's Discussion and Analysis 14 - 25 Basic Financial Statements A Government-Wide Financial Statements: A-1 Statement of Net Position 26 A-2 Statement of Activities 27 B Fund Financial Statements: Governmental Funds: B-1 Balance Sheet/Reconciliation of the Balance Sheet to the Statement of Net Position 28 - 29 B-2 Statement of Revenues, Expenditures, and Changes in Fund Balance 30 B-3 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 31 Proprietary Fund: B-4 Statement of Net Position 32 B-5 Statement of Revenues, Expenses, and Changes in Fund Net Position 33 B-6 Statement of Cash Flows 34 Fiduciary Funds: B-7 Statement of Fiduciary Net Position 35 B-8 Statement of Changes in Fiduciary Net Position 36 Notes To Basic Financial Statements 37 - 89 CITY OF UNION CITY SCHOOL DISTRICT TABLE OF CONTENTS Exhibit No. Page Required Supplementary Information - Part II C Budgetary Comparison Schedules: C-1 Budgetary Comparison Schedule - General Fund 90 - 96 C-1a Combining Budgetary Comparison Schedule - General Fund 97 - 106 C-2 Budgetary Comparison Schedule - Special Revenue Fund 107 Notes to Required Supplementary Information - Part II C-3 Budget to GAAP Reconciliation 108 Required Supplementary Information - Part III L-1 Schedule of the District's Proportionate Share of the Net Pension Liability - PERS 109 L-2 Schedule of District Contributions - PERS 110 L-3 Schedule of the District's Proportionate Share of the Net Pension Liability - TPAF 111 L-4 Schedule of changes in the State Proportionate Share of OPEB Liability Attributable to the District and Related Ratios 112 Notes to Required Supplementary Information - Part III 113 Other Supplementary Information D School Based Budget Schedules: D-1 Combining Balance Sheet 114 D-2 Blended Resource - Schedule of Expenditures Allocated by Resource Type - Actual 115 - 129 D-3 Blended Resource - Schedule of Blended Expenditures - Budget and Actual 130 - 161 E Special Revenue Fund: E-1 Combining Schedules of Program Revenues and Expenditures - Budgetary Basis 162 - 169 E-2 Schedule of Preschool Education Aid Expenditures - Preschool - All Programs - Budgetary Basis 170 CITY OF UNION CITY SCHOOL DISTRICT TABLE OF CONTENTS Exhibit No. Page F Capital Projects Fund: F-1 Summary Schedule of Project Expenditures 171 F-2 Summary Schedule of Revenues, Expenditures and Changes in Fund Balance - Budgetary Basis 172 F-2a-j Schedules of Project Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis 173 - 181 G Proprietary Funds: Enterprise Fund: G-1 Statement of Net Position 182 G-2 Statement of Revenues, Expenses, and Changes in Net Position 183 G-3 Statement of Cash Flows 184 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 185 H-2 Combining Statement of Changes in Fiduciary Net Position 186 H-3 Agency Funds Schedule of Receipts and Disbursements 187 I Long-Term Debt: I-1 Schedule of Serial Bonds N/A I-2 Schedule of Obligations Under Capital Leases 188 I-3 Budgetary Comparison Schedule - Debt Service Fund N/A CITY OF UNION CITY SCHOOL DISTRICT TABLE OF CONTENTS Exhibit No. Page STATISTICAL SECTION (Unaudited) Introduction to the Statistical Section (Unaudited) Financial Trends: J-1 Net Position by Component 189 J-2 Changes in Net Position 190 - 191 J-3 Fund Balances - Governmental Funds 192 J-4 Changes in Fund Balance - Governmental Funds 193 J-5 General Fund Other Local Revenue by Source 194 Revenue Capacity: J-6 Assessed Value and Estimated Actual Value of Taxable Property 195 J-7 Direct and Overlapping Property Tax Rates 196 J-8 Principal Property Taxpayers 197 J-9 Property Tax Levies and Collections 198 Debt Capacity: J-10 Ratios of Outstanding Debt by Type 199 J-11 Ratio of General Bonded Debt Outstanding 200 J-12 Direct and Overlapping Governmental Activities Debt 201 J-13 Legal Debt Margin Information 202 Demographic and Economic Information: J-14 Demographic and Economic Statistics 203 J-15 Principal Employer 204 Operating Information: J-16 Full-Time Equivalent District Employees by Function/Program 205 J-17 Operating Statistics 206 J-18 School Building Information 207 - 208 J-19 Schedule of Required Maintenance Expenditures by School Facility 209 J-20 Insurance Schedule 210 CITY OF UNION CITY SCHOOL DISTRICT TABLE OF CONTENTS Exhibit No. Page SINGLE AUDIT SECTION K-1 Indepenent 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 211 - 213 K-2 Independent Auditor's Report on Compliance for Each Major Federal and State Program and on Internal Control Over Compliance Required by the Unfiorm Guidance and New Jersey OMB Circular 15-08 214 - 216 K-3 Schedule of Expenditures of Federal Awards, Schedule A 217 - 220 K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 221 - 224 K-5 Notes to the Schedules of Awards and Financial Assistance 225 - 227 K-6 Schedule of Findings and Questioned Costs 228 - 229 K-7 Schedule of Financial, Federal and State Findings 230 - 234 K-8 Summary Schedule of Prior Audit Findings and Questioned Costs as Prepared by Management 235 - 236 INTRODUCTORY SECTION CITY OF UNION CITY SCHOOL DISTRICT 3912 BERGEN TURNPIKE UNION CITY, N.J. 07087 Anthony Dragona, Ed.D. School Business Administrator (201) 348-5887 Fax (201) 348-5866 December 20, 2019 President Jeanette Pena, Members of the Board of Education and Citizens of the City of Union City School District Hudson County, New Jersey Dear Board Members and Citizens: The comprehensive annual financial report of the City of Union City School District for the fiscal year ended June, 30 2019, is hereby submitted. Responsibility for both the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rests with the management of the City of Union City School District. 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 operations of the various funds 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 list of principal officials, consultants, auditors and advisors and Certificate of Excellence in Financial Reporting. We have included in the transmittal letter a financial ratio and statistical overview of the entity based on entity‐wide financial reporting. The financial section includes under Governmental Accounting Standard Board Statement No. 34, the Report of Independent Auditor’s, the Management Discussion and Analysis as presented on pages 14 through 25, the basic financial statements, required supplementary information, and the combining and individual fund financial statements. 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 Amendments of 1996 and the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and New Jersey OMB Circular 15‐08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Information related to this Single Audit, including the auditor’s report on the internal control structure and compliance with applicable laws and regulations and findings and recommendations are included in the Single Audit section of this report. 1 1.) REPORTING ENTITY AND ITS SERVICES: City of Union City School District is an independent reporting entity within the criteria adopted by the GASB Statement No. 14, as amended by GASB Statement No. 39 and 61. All funds and account groups of the District are included in this report. The City of Union City School District and all its schools constitute the District’s reporting entity. The reporting entity is a component unit of the City of Union City. The District provides a full range of educational services appropriate to grade levels Pre‐K through 12. These include regular, early childhood, vocational as well as special education for handicapped youngsters. The District completed the 2018‐2019 fiscal year with an average daily enrollment of 12,198 students, (not including 1,735 in Early Childhood students), which is 0.48% more than the previous year’s enrollment. The District sent 32 students to charter schools, a increase of 8 in the previous year. The following details the changes in the student enrollment of the District over the last ten years, reflecting an increase of 2,216 students.