For the Fiscal Year Ended June 30, 2019 COMPREHENSIVE ANNUAL FINANCIAL REPORT The School Board of the City of Virginia Beach (a component unit of the City of Virginia Beach, Virginia) School Board of the City of Virginia Beach (A component unit of the City of Virginia Beach, Virginia) COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2019 PREPARED BY OFFICE OF BUSINESS SERVICES Crystal M. Pate, CPA, MPA Director of Business Services Daniel Hopkins, CPA Accounting Coordinator Sharon Hulehan, CPA Accounting Coordinator Misty Caish, MPA Financial Management Specialist Michael Jackson Principal Accountant Thea Jones Principal Accountant Karen Pawley Principal Accountant Lori Taylor Principal Accountant This Page Intentionally Left Blank School Board of the City of Virginia Beach, Virginia Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2019 Table of Contents INTRODUCTORY SECTION Page Letter of Transmittal ......................................................................................... 1 School Board ....................................................................................................12 GFOA Certificate of Achievement for Excellence in Financial Reporting ....................................................................................13 ASBO Certificate of Excellence in Financial Reporting ......................................14 School Board Organizational Chart ..................................................................15 FINANCIAL SECTION Independent Auditor’s Report .........................................................................19 Management’s Discussion and Analysis ...........................................................23 Basic Financial Statements: Exhibit Government‐Wide Financial Statements: A‐1 Statement of Net Position ................................................................................40 A‐2 Statement of Activities ....................................................................................41 Fund Financial Statements: A‐3 Balance Sheet – Governmental Funds ..............................................................42 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ..........................................................43 A‐4 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ........................................................44 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .........................................................45 A‐5 Statement of Net Position – Proprietary Funds ................................................46 A‐6 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds ................................................................47 A‐7 Statement of Cash Flows – Proprietary Funds ..................................................48 A‐8 Statement of Fiduciary Net Position ................................................................49 A‐9 Statement of Changes in Fiduciary Net Position ...............................................50 Notes to the Basic Financial Statements ................................................................52 School Board of the City of Virginia Beach, Virginia Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2019 Page Statement/ Schedule Required Supplementary Information: ................................................................ 139 B‐1 Schedule of Employer’s Share of Net Pension Liability ................................... 140 B‐2 Schedule of Changes in the Net Pension Liability and Related Ratios ............. 141 B‐3 Schedule of Employer Pension Contributions – Professional .......................... 142 B‐4 Schedule of Employer Pension Contributions ‐ Nonprofessional .................... 143 B‐5 Schedule of Changes in Net OPEB Liability / Related Ratios‐Retiree Health ... 144 B‐6 Schedule of Annual Contributions‐Retiree Health .......................................... 145 B‐7 Schedule of Investment Returns‐Retiree Health ............................................ 146 B‐8 Schedule of Employer’s Share of Net OPEB Liability ‐ HIC ............................... 147 B‐9 Schedule of Employer’s Share of Net OPEB Liability ‐ GLI ............................... 148 B‐10 Schedule of Employer’s Share of Net OPEB Liability ‐ VLDP ............................ 149 B‐11 Schedule of Employer Contributions – HIC ..................................................... 150 B‐12 Schedule of Employer Contributions – GLI ..................................................... 151 B‐13 Schedule of Employer Contributions – VLDP .................................................. 153 Major Governmental Funds: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: C‐1 General Fund ................................................................................................. 154 C‐2 School Grants Special Revenue Fund.............................................................. 157 C‐3 School Cafeterias Special Revenue Fund ........................................................ 162 Notes to the Required Supplementary Information ....................................... 164 Other Supplementary Information: Combining and Individual Fund Statements and Schedules Nonmajor Governmental Funds – Special Revenue Funds: ............................. 169 D‐1 Combining Balance Sheet............................................................................... 170 D‐2 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................................................................................... 171 School Board of the City of Virginia Beach, Virginia Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2019 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: Statement/ Schedule Page D‐3 School Textbooks Special Revenue Fund ........................................................ 172 D‐4 School Communication Towers/Technology Special Revenue Fund ............... 173 D‐5 School Vending Operations Special Revenue Fund ......................................... 174 D‐6 School Equipment Replacement Special Revenue Fund ................................. 175 Internal Service Funds: .................................................................................. 177 E‐1 Combining Statement of Net Position ............................................................ 178 E‐2 Combining Statement of Revenues, Expenses, and Changes in Net Position ............................................................................................. 179 E‐3 Combining Statement of Cash Flows .............................................................. 180 Agency Funds: ............................................................................................... 181 F‐1 Combining Statement of Changes in Assets and Liabilities ............................. 182 STATISTICAL SECTION ........................................................................................................... 183 Table 1 Government‐Wide Net Position by Component – Last Ten Fiscal Years .......... 184 2 Government‐Wide Changes in Net Position – Last Ten Fiscal Years ................ 186 3 Government‐Wide Expenses by Function – Last Ten Fiscal Years ................... 188 4 Government‐Wide Revenues – Last Ten Fiscal Years ...................................... 189 5 Fund Balances of Governmental Funds – Last Ten Fiscal Years ....................... 190 6 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................................................. 192 7 General Fund Expenditures and Other Financing Uses by Function – Last Ten Fiscal Years ........................................................... 194 8 General Fund Revenues by Source – Last Ten Fiscal Years .............................. 195 9 Per Pupil Financial Support for Expenditures by Major Revenue Source – Last Ten Fiscal Years .................................................... 196 10 Composite Index of Local Ability‐to‐Pay Costs of Standards of Quality – Last Ten Fiscal Years .............................................................. 198 School Board of the City of Virginia Beach, Virginia Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2019 Table Page 11 Students Promoted – Last Ten Fiscal Years .................................................... 199 12 Student Attendance – Last Ten Fiscal Years ................................................... 200 13 Student Dropouts – Last Ten Fiscal Years ....................................................... 202 14 Scholastic Aptitude Test (SAT) – Mean Scores – Last Ten Fiscal Years ............ 203 15 Graduates as Percent of Ninth Grade Membership Four Years Earlier – Last Ten Fiscal Years ................................................................... 204 16 Graduates Continuing Education – Last Ten Fiscal Years ................................ 205 17 Ratio of Students to Teaching/Instructional Personnel – Last Ten Fiscal Years ................................................................................. 206 18 Personnel Positions – Last Ten Fiscal Years .................................................... 208 19 Instructional Personnel Positions per 1,000 Students