SCHOOL DISTRICT OF PEMBERTON TOWNSHIP PEMBERTON BOARD OF EDUCATION Pemberton, New Jersey County of Burlington COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE PEMBERTON TOWNSHIP BOARD OF EDUCATION PEMBERTON, NEW JERSEY FOR THE FISCAL YEAR ENDED JUNE 30, 2013 Prepared by Pemberton Township Board of Education Finance Department OUTLINE OF CAFR PAGE INTRODUCTORY SECTION Letter of Transmittal I Organizational Chart 7 Roster of Officials 8 Consultants and Advisors 9 FINANCIAL SECTION Independent Auditor's Report 10 REQUIRED SUPPLEMENTARY INFORMATION -PART I Management's Discussion and Analysis 13 BASIC FINANCIAL STATEMENTS A. District-wide Financial Statements: A-I Statement of Net Position 19 A-2 Statement of Activities 20 B. Fund Financial Statements: B-1 Balance Sheet 22 B-2 Statement of Revenues, Expenditures & Changes in Fund Balances 23 B-3 Reconciliation of the Statement of Revenues, Expenditures & Changes in Fund Balances of Govermnental Funds to the Statement of Activities 24 Proprietary Funds: B-4 Statement of Net Position 25 B-5 Statement of Revenues, Expenditures & Changes in Fund Net Position 26 B-6 Statement of Cash Flows 27 Fiduciary Funds: B-7 Statement of Fiduciary Net Position 28 B-8 Statement of Changes in Fiduciary Net Position 29 Notes to Financial Statements 30 REQUIRED SUPPLEMENTARY INFORMATION -PART II C. Budgetary Comparison Schedules: C-l Budgetary Comparison Schedule - General Fund 52 C-l a Combining Schedule Comparison Schedule - General Fund (if applicable) 67 C-l b Education Jobs Fund Program - Budget & Actual (if applicable) 79 (continued) OUTLINE OF CAFR (continued): PAGE C. Budgetary Comparison Schedules (continued): C-2 Budgetary Comparison Schedule - Special Revenue Fund 80 Notes to the Required Supplementary Information C-3 Budget-to-GAAP Reconciliation 82 D. School Based Budget Schedules (if applicable): D-l Combining Balance Sheet 83 D-2 Blended Resource Fund - Schedule of Expenditures Allocated by Resource Type - Actual 84 D-3 Blended Resource Fund - Schedule of Blended Expenditures- Budget and Actual 96 E. Special Revenue Fund: E-l Combining Schedule of Revenues & Expenditures Special Revenue Fund - Budgetary Basis 142 E-2 Preschool Education Aid Schedule(s) of Expenditures - Budgetary Basis 145 F. Capital Projects Fund: F-l Summary Schedule of Project Expenditures 146 F-2 Summary Schedule of Revenues, Expenditures and Changes in Fund Balance - Budgetary Basis 147 F-2a Schedule of Revenues, Expenditures Project Balance & Project Status­ Classroom Addition to the Fort Dix Elementary School 148 F-2b Schedule of Revenues, Expenditures Project Balance & Project Status­ High School Security System & Connection of Well System Generator 149 G. Proprietary Funds: Enterprise Fund: G-l Combining Schedule of Net Position 150 G-2 Combining Schedule of Revenues, Expenses & Changes in Fund Net Position 151 G-3 Combining Schedule of Cash Flows 152 Internal Service Fund: G-4 Comparative Schedule of Net Position - Workmen's Compensation 153 G-5 Comparative Schedule of Revenues, Expenses & Changes in Fund Net Position 154 G-6 Comparative Schedule of Cash Flows 155 H. Fiduciary Funds: H-l Combining Statement of Fiduciary Net Position 156 H-2 Combining Statement of Changes in Fiduciary Net Position 157 H-3 Student Activity Agency Fund Schedule of Receipts & Disbursements 158 H-4 Payroll Agency Fund Schedule of Receipts & Disbursements 158 (continued) OUTLINE OF CAFR (continned): PAGE I. Long-Term Debt: I-I Schedule of Serial Bonds N/A 1-2 Schedule of Obligations Under Capital Leases N/A 1-3 Debt Service Fund Budgetary Comparison Schedule N/A STATISTICAL SECTION (unaudited) Financial Trends: J -I Net Position by Component 159 J-2 Changes in Net Position 160 J -3 Fund Balances - Governmental Funds 163 J -4 Changes in Fund Balances - Governmental Funds 164 J-5 General Fnnd Other Local Revenue by Source 166 Revenue Capacity: J-6 Assessed Value & Estimated Actual Value of Taxable Property 167 J-7 Direct & Overlapping Property Tax Rates 168 J-8 Principal Property Taxpayers 169 J-9 Property Tax Levies & Collections 170 Debt Capacity: J -10 Ratios of Outstanding Debt by Type 170 J-l1 Ratios of General Bonded Debt Outstanding 170 J-12 Direct & Overlapping Governmental Activities Debt 171 J -13 Legal Debt Margin Information 172 Demographic & Economic Information: J -14 Demographic & Economic Statistics 173 J -15 Principal Employers N/A Operating Information: J-16 Fnll-Time Equivalent District Employees by Function/Program 174 J-17 Operating Statistics . 175 J-18 School Bnilding Information 176 J -19 Schedule of Reqnired Maintenance 177 J -20 Insurance Schedule 178 K SINGLE AUDIT SECTION K-I 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 179 K-2 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-I33 and New Jersey OMB Circular Letter 04-04 181 K-3 Schedule of Expenditures of Federal Awards, Schedule A 184 K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 186 K-5 Notes to Schedules of Awards and Financial Assistance 187 K-6 Schedule of Findings and Questioned Costs 189 K-7 Summary Schedule of Prior Audit Findings 191 (concluded) I I I I I I I I INTRODUCTORY SECTION ° ~~~~Ie States Accre:G;;;; 00 You can get thet'e from here! PEMBERTON TOWNSHIP SCHOOLS ____________00. ___ ._0 ______ 0_ PAT AUSTIN MICHAEL R. GORMAN, ED.D. Business Administrator, Board Secretary Superintendent JAMES J. FLANAGAN Assistant Business Administrator November 20,2013 Honorable President and Members of the Board of Education Pemberton Township School District County of Burlington, New Jersey Dear Board Members; The comprehensive annual financial report of the Pemberton Township 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 the management of the Board of Education (Board). 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 fmancial 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 arrnual financial report is presented in four sections: introductory, financial, statistical and single audit. The introductOlY section includes this transmittal letter, the District's organizational chart and a list of principal officials. The financial section includes the basic 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 U.S. Office of Management and Budget Circular A-133, "Audits of States, Local Governments and Non profit Organizations," and the State Treasmy Circular Letter 04-04, "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) REPORTING ENTITY AND ITS SERVICES: Pemberton Township School District is an independent 3'"' old - 121h grade District in Burlington County, New Jersey reporting within the criteria adopted in GASB Statement 14. All fund and account groups in the District are included in this report. The Pemberton Township Board of Education and all its Schools constitute the District reporting entity. The District provides a full range of educational services appropriate to students from three year old through grade 12. These include regular, vocational, and special education programs for students of varying interests and special needs. The programs have been developed and articulated in the Schools to respond to federal, state, and local goals. The local goals come from Vision 2020, a public forum process conducted at the School level, and from the Educational Improvement Plans, developed at both the District and School site each year. PHONE: 609·893·8141 Ext. 1004 FAX: 609·894-0586 EMAIL: [email protected] Office: One Egbert Street, Pemberton, New Jersey 08068· www.pemberton.k12.nj.us Pemberton Learning Community: Pursuing Excellence One Child at a Time I in confonnance with the state and national programs enjoyed in the Goals 2000 initiative. The District completed the 2012-2013 Fiscal Year with an average daily enrollment of 5,048. The table below provides the last fifteen years of enrollment infonnation along with changes on an annual basis. Average Daily Enrollment Fiscal Year Student Enrollment Percentage of Change 2012-2013 5,048 0.72% Increase 2011-2012 5,012 1.07% Increase 2010-20\ I 4,959 1.29% (Decrease) 2009-2010 5,024 2.23% (Decrease) 2008-2009 5,139 1.28% (Decrease) 2007-2008 5,206 3.05% (Decrease) 2006-2007 5,370 3.98% (Decrease) 2005-2006 5,593 2.52% (Decrease) 2004-2005 5,738 3.12% (Decrease) 2003-2004 5,922 1.84% Increase 2002-2003 5,815 .50% Increase 2001-2002 5,786 2.19% Increase 2000-2001 5,662 1.21% Increase 1999-2000 5,594 2.71% (Decrease) 1998-1999 5,750 .37% Increase 2) ECONOMIC CONDITIONS AND OUTLOOK: Pemberton Township was able to maintain a stable tax rate despite the State of New Jersey's freeze in municipal aid. Our UEZ program continues to strengthen our economic development with its loan and sign programs. Few programs have proven more enduring and successful.