SCHOOL DISTRICT OF NORTH HUNTERDON-VOORHEES REGIONAL HIGH North Hunterdon-Voorhees Regional High School District Annandale, New Jersey Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2018 Comprehensive Annual Financial Report of the North Hunterdon-Voorhees Regional High School District Board of Education Annandale, New Jersey For the Fiscal Year Ended June 30, 2018 Prepared by North Hunterdon-Voorhees Regional High School District Board of Education NORTH HUNTERDON-VOORHEES REGIONAL HIGH SCHOOL DISTRICT TABLE OF CONTENTS FISCAL YEAR ENDED JUNE 30, 2018 INTRODUCTORY SECTION (UNAUDITED) Letter of Transmittal ............................................................................................................................................... 1 Organizational Chart ............................................................................................................................................... 5 Roster of Officials ................................................................................................................................................... 6 Consultants and Advisors ........................................................................................................................................ 7 FINANCIAL SECTION ............................................................................................................................................. 8 Independent Auditors’ Report ................................................................................................................................. 9 Required Supplementary Information ................................................................................................................... 12 Management’s Discussion and Analysis (Unaudited) .................................................................................... 13 Basic Financial Statements (Sections A. and B.) .................................................................................................. 22 A. District-Wide Financial Statements ................................................................................................................ 23 A-1 Statement of Net Position ..................................................................................................................... 24 A-2 Statement of Activities .......................................................................................................................... 25 B. Fund Financial Statements .............................................................................................................................. 27 B-1 Balance Sheet – Governmental Funds .................................................................................................. 28 B-2 Statement of Revenue, Expenditures and Changes in Fund Balances – Governmental Funds .......................................................................................................................... 30 B-3 Reconciliation of the Statement of Revenue, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ............................................. 31 B-4 Statement of Net Position – Proprietary Funds ..................................................................................... 32 B-5 Statement of Revenue, Expenses and Changes in Net Position – Proprietary Funds ............................................................................................................. 33 B-6 Statement of Cash Flows – Proprietary Funds ...................................................................................... 34 B-7 Statement of Fiduciary Net Position – Fiduciary Funds ....................................................................... 35 B-8 Statement of Changes in Fiduciary Net Position – Fiduciary Funds .................................................... 36 Notes to the Basic Financial Statements ......................................................................................................... 37 Required Supplementary Information (Unaudited) ................................................................................................. 76 L. Schedules Related to Accounting and Reporting for Pensions and Postemployment Benefits Other than Pensions (Unaudited) ................................................................................................................. 77 L-1 Schedule of District’s Proportionate Share of the Net Pension Liability – Public Employees Retirement System ......................................................................................................... 77 L-2 Schedule of District Contributions – Public Employees Retirement System .......................................... 78 L-3 Schedule of State’s Proportionate Share of the Net Pension Liability Associated with the District – Teachers’ Pension and Annuity Fund .......................................................................................................... 79 L-4 Schedule of State Contributions – Teachers’ Pension and Annuity Fund ............................................... 80 L-5 Schedule of Changes in the State’s Total OPEB Liability and Related Ratios ........................................ 81 Notes to Required Supplementary Information .............................................................................................. 82 NORTH HUNTERDON-VOORHEES REGIONAL HIGH SCHOOL DISTRICT TABLE OF CONTENTS FISCAL YEAR ENDED JUNE 30, 2018 (Continued) FINANCIAL SECTION (Cont’d) Other Supplementary Schedules (D. to I.) C. Budgetary Comparison Schedules (Unaudited) ............................................................................................. 83 C-1 Budgetary Comparison Schedule – General Fund ................................................................................ 84 C-2 Budgetary Comparison Schedule – Special Revenue Fund .................................................................. 97 C-3 Required Supplementary Information - Budgetary Comparison Schedule – Note to RSI .................... 98 D. School Level Schedules (Not Applicable) ................................................................................................... 100 E. Special Revenue Fund .................................................................................................................................. 101 E-1 Combining Schedule of Program Revenue and Expenditures Special Revenue Fund – Budgetary Basis ................................................................................................................... 102 E-2 Preschool Education Aid Schedule of Expenditures – Budgetary Basis (Not Applicable) ................................................................................................................... 104 F. Capital Projects Fund .................................................................................................................................... 105 F-1 Summary Schedule of Revenue, Expenditures and Changes in Fund Balance – Budgetary Basis ............................................................................................................................... 106 F-1A Schedule of Project Revenue, Expenditures, Project Balance and Project Status – Budgetary Basis – Fire Alarm System and Security Upgrades – Voorhees High School from Inception and for the Fiscal Year Ended June 30, 2018 ................................................................. 107 F-1B Schedule of Project Revenue, Expenditures, Project Balance and Project Status – Budgetary Basis – Building Envelope Restoration – Voorhees High School from Inception and for the Fiscal Year Ended June 30, 2018 .................................................................................. 108 F-1C Schedule of Project Revenue, Expenditures, Project Balance and Project Status – Budgetary Basis – Fire Alarm System and Security Upgrade – North Hunterdon High School from Inception and for the Fiscal Year Ended June 30, 2018 .................................................................. 109 F-1D Schedule of Project Revenue, Expenditures, Project Balance and Project Status – Budgetary Basis – Single Use Bathroom ADA – North Hunterdon High School from Inception and for the Fiscal Year Ended June 30, 2018 .................................................................................. 110 F-1E Schedule of Project Revenue, Expenditures, Project Balance and Project Status – Budgetary Basis – Renovation of Main Entrance ADA – North Hunterdon High School from Inception and for the Fiscal Year Ended June 30, 2018 .................................................................. 111 F-1F Schedule of Project Revenue, Expenditures, Project Balance and Project Status – Budgetary Basis – Renovation of Front Facade – North Hunterdon High School from Inception and for the Fiscal Year Ended June 30, 2018 .................................................................. 112 F-1G Schedule of Project Revenue, Expenditures, Project Balance and Project Status – Budgetary Basis – Roof Replacement – Voorhees High School from Inception and for the Fiscal Year Ended June 30, 2018 .................................................................. 113 F-1H Schedule of Project Revenue, Expenditures, Project Balance and Project Status – Budgetary Basis – Elevator – North Hunterdon High School from Inception and for the Fiscal Year Ended June 30, 2018 .................................................................