LENAPE REGIONAL HIGH SCHOOL DISTRICT Shamong, New Jersey County of Burlington COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE LENAPE REGIONAL HIGH SCHOOL DISTRICT SHAMONG, NEW JERSEY FOR THE FISCAL YEAR ENDED JUNE 30, 2013 Prepared by Lenape Regional High School District Finance Department I I I I I I I I OUTLINE OF CAFR PAGE INTRODUCTORY SECTION Letter of Transmittal I Organizational Charts 6 Roster of Officials 14 Consultants and Advisors 15 FINANCIAL SECTION Independent Auditor's Report 16 REQUIRED SUPPLEMENTARY INFORMATION - PART I Management's Discussion and Analysis 19 BASIC FINANCIAL STATEMENTS A. District-wide Financial Statements: A-I Statement of Net Position 29 A-2 Statement of Activities 30 B. Fund Financial Statements: B-1 Balance Sheet 32 B-2 Statement of Revenues, Expenditures & Changes in Fund Balances 33 B-3 Reconciliation of the Statement of Revenues, Expenditures & Changes in Fund Balances of Govemmental Funds to the Statement of Activities 34 Proprietary Funds: B-4 Statement of Net Position 35 B-5 Statement of Revenues, Expenditures & Changes in Fund Net Position 36 B-6 Statement of Cash Flows 37 Fiduciary Funds: B-7 Statement of Fiduciary Net Position 38 B-8 Statement of Changes in Fiduciary Net Position 39 Notes to Financial Statements 40 REQUIRED SUPPLEMENTARY INFORMATION -PART II C. Budgetary Comparison Schedules: C-l Budgetary Comparison Schedule - General Fund 64 C-la Combining Schedule of Revenues, Expenditures & Changes in Fund Balance - Budget & Actual (if applicable N/A C-lb Education Jobs Fund Program - Budget & Actual (if applicable) 79 C-2 Budgetary Comparison Schedule - Special Revenue Fund 80 (continued) OUTLINE OF CAFR - GASB 34 (continned): PAGE Notes to the Required Supplementary Information C-3 Budget-to-GAAP Reconciliation 81 O. School Based Budget Schedules Fund (if applicable): 0-1 Combining Balance Sheet N/A 0-2 Blended Resource Fund - Schedule of Expenditures Allocated by Resource Type - Actual NlA '0-3 Blended Resource Fund - Schedule of Blended Expenditures- Budget and Actual N/A E. Special Revenue Fund: E-I Combining Schedule of Revenues & Expenditures Special Revenue Fund - Budgetary Basis 82 E-2 Preschool Education Aid Schedule(s) of Expenditures - Budgetary Basis N/A F. Capital Projects Fund: F-l Summary Statement of Project Expenditures 86 F-2 Sununary Schedule of Revenues, Expenditures and Changes in Fund Balance - Budgetary Basis 87 F-2a Schedule of Revenues, Expenditures Project Balance & Project Status - Rehabilitation & Upgrade of Lenape High School 88 F-2b Schedule of Revenues, Expenditures Project Balance & Project Status - Rehabilitation & Upgrade of Shawnee High School 89 F-2c Schedule of Revenues, Expenditures Project Balance & Project Status - Rehabilitation & Upgrade of Cherokee North High School 90 F-2d Schedule of Revenues, Expenditures Project Balance & Project Status - Rehabilitation & Upgrade of Sequoia Transitional School 91 G. Proprietary Funds: Enterprise Fund: G-I Combining Statement of Net Position 92 G-2 Combining Statement of Revenues, Expenses & Changes in in Fund Net Position 93 G-3 Combining Statement of Cash Flows 94 Intemal Service Fund - G-4 Combining Statement of Net Position N/A G-5 Combining Statement of Revenues, Expenses & Changes in Fund Net Position N/A G-6 Combining Statement of Cash Flows N/A H. Fiduciary Funds: H-I Combining Statement of Fidnciary Net Position 95 H-2 Combining Statement of Changes in Fiduciary Net Position 96 (continued) OUTLINE OF CAFR (continued): PAGE H. Fiduciary Funds (continued): H-3 Student Activity Agency Fund Schedule of Receipts & Disbursements 97 H-4 Payroll Agency Fund Schedule of Receipts & Disbursements 97 I. Long-Tenn Debt: I-I Schedule of Serial Bonds 98 1-2 Schedule of Obligations Under Capital Leases 100 1-3 Debt Service FWld Budgetary Comparison Statement 101 STATISTICAL SECTION (unaudited) Financial Trends: J-l Net Position by Component 102 J-2 Changes in Net Position 103 J-3 Fund Balances - Governmental Funds 106 J-4 Changes in Fund Balances - Governmental Funds 107 J-5 General Fund Other Local Revenue by Source 109 Revenue Capacity: J-6 Assessed Value & Estimated Actual Value of Taxable Property 110 J-7 Direct & Overlapping Property Tax Rates 113 J-8 Principal Property Taxpayers 116 J-9 Property Tax Levies & Collections 119 Debt Capacity: J -10 Ratios of Outstanding Debt by Type 120 J-11 Ratios of General Bonded Debt Outstanding 121 J-12 Direct & Overlapping Governmental Activities Debt 122 J -13 Legal Debt Margin Information 124 Demographic & Economic Information: J-14 Demographic & Economic Statistics 125 J-15 Principal Employers 128 Operating Information: J-16 Full-Time Equivalent District Employees by Function/Program 129 J-17 Operating Statistics 130 J-18 School Building Infonnation 131 J-19 Schedule of Required Maintenance 132 J-20 Insurance Schedule 133 K SINGLE AUDIT SECTION K-l Report on Compliance and on Internal Control Over Financial Reporting and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 134 K-2 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circnlar A-133 and New Jersey OMB Circular Letter 04-04 136 (continued) OUTLINE OF CAFR (continned): PAGE K-3 Schedule of Expenditures of Federal Awards, Schedule A 139 K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 140 K-5 Notes to Schedules of Awards and Financial Assistance 141 K-6 Schedule of Findings and Questioned Costs 143 K-7 Summary Schedule of Prior Audit Findings 146 (concluded) INTRODUCTORY SECTION LENAPE REGIONAL HIGH SCHOOL DISTRICT K. KIKI KONSTANTINOS ADMINISTRATION AND STAFF DEVELOPMENT BUILDING 93 WILLOW GROVE ROAD 609-268-2000 SHAMONG, NEW JERSEY 08088 FAX: 609-268-8971 CAROL L. BIRNBOHM, ED. D., Superintendent ofEducation LENAPE HIGH SCHOOL SHAWNEE HIGH SCHOOL CHEROKEE HIGH SCHOOL JAMES H. HAGER, Business Administrator/Board Secretary SENECA HIGH SCHOOL October 9,2013 Honorable President and Members of the Board of Education Lenape Regional High School District County of Burlington Shamong, New Jersey 08088 The comprehensive annual fmancial report of the Lenape Regional High School 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, rests with management of the Board of Education. To the best of our knowledge aud 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 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, management's discussion and analysis, the District's organizational chart and a list of principal officials. The financial section includes the general-purpose fmancial 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 Amendments of 1996 and the U.S. Office of Management and Budget Circular A-l33, "Audits of State and Local Govermnents and Non-Profit Organizations", and the State of New Jersey Circular 04-04-0MB, "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 ofthis report. 1. REPORTING ENTITY AND ITS SERVICES: Lenape Regional High School District is an independent reporting entity within the criteria adopted by the Governmental Accounting Standards Board (GASB) as established by the National Council on Governmental Accounting (NCGA) Statement No.3. All funds and account groups of the District are included in this report. The Lenape Regional High School District Board of Education and its schools constitute the District's reporting entity. I The District provides a full range of educational services appropriate to grade levels 9 through 12. These include regular, college bound, advanced placement, vocational as well as special education for handicapped children. The following details the changes in the student enrollment of the District over the last fourteen years as reported on the District ASSA reports. Fiscal Year Student Enrollment Percent Change 2012-2013 7,202 (1.11%) 2011-2012 7,283 (3.06%) 20 I 0-20 II 7,513 (0.2%) 2009-2010 7,529 (0.4%) 2008-2009 7,558 (1.4%) 2007-2008 7,667 0.0% 2006-2007 7,669 5.4% 2005-2006 7,592 2.6% 2004-2005 7,399 2.7% 2003-2004 7,204 2.9% 2002-2003 7,001 4.3% 2001-2002 6,714 2.0% 2000-2001 6,580 4.3% 1999-2000 6,312 1.5% 1998-1999 6,217 2.7% 1997-1998 6,056 0.4% 2. COMMUNICATION: On March 8, 2005 the voters supported the $89,040,359.00 bond referendum to undertake the construction of various renovations and improvements to the Lenape High School, Shawnee High School, Cherokee High School and Sequoia Transitional High School as well as construct additions to the Lenape High School and the Shawnee High School. The construction projects for Lenape, Shawnee and Cherokee High Schools are complete. 3. MAJOR INITIATIVES: The stndents in the Lenape Regional High School District continue to perfonn at a high level of achievement.