East Baton Rouge Parish School System Baton Rouge, Louisiana For the Year Ended June 30, 2020 Prepared by the Finance and Budget Management Staff James P. Crochet, CPA Chief Business Operations Officer Kelly Lopez, MBA Chief Financial Officer Introductory Section 2019-2020 Comprehensive Annual Financial Report EAST BATON ROUGE PARISH SCHOOL SYSTEM BATON ROUGE, LOUISIANA Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2020 Table of Contents Page Number Introductory Section Table of Contents i - vi Board Members vii Administrative Officers viii Letters of Transmittal ix-xxx Government Finance Officers' Association of the United States and Canada Certificate of Achievement for Excellence in Financial Reporting xxxi Association of School Business Officials' International Certificate of Excellence in Financial Reporting xxxii Organizational Chart xxxiii-xxxiv Financial Section Independent Auditors' Report xxxv-xxxvii REQUIRED SUPPLEMENTARY INFORMATION - PART I Management's Discussion and Analysis xxxviii-liii BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements (GWFS) Statement of Net Position 1 - 2 Statement of Activities 3 Fund Financial Statements (FFS) Governmental Funds: Balance Sheet 4 - 5 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 6 Statement of Revenues, Expenditures and Changes in Fund Balance 7 - 10 Reconciliation of the Governmental Funds - Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities 11 - i - EAST BATON ROUGE PARISH SCHOOL SYSTEM BATON ROUGE, LOUISIANA Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2020 Table of Contents Page Number BASIC FINANCIAL STATEMENTS (continued) Proprietary Funds – Internal Service: Statement of Net Position 12 Statement of Revenues, Expenses and Changes in Net Position 13 Statement of Cash Flows 14 Fiduciary Funds: Statement of Fiduciary Assets and Liabilities 15 Notes to Basic Financial Statements 16 - 50 REQUIRED SUPPLEMENTARY INFORMATION – PART II Schedule of Changes in Total Other Post-Employment Liability and Related Ratios for the Year Ended June 30, 2020 51 Schedule of the School System’s Proportionate Share of the Net Pension Liability for the Retirement Systems 52 Schedule of Employer Contributions to the Retirement Systems 53 Budgetary Comparison Schedules: Major Fund Descriptions 54 General Fund 55 Title I Fund 56 Proposition 2 - Discipline Fund 57 Proposition 3 - Compensation Fund 58 Child Nutrition Fund 59 Notes to Required Supplemental Information 60 - 62 - ii - EAST BATON ROUGE PARISH SCHOOL SYSTEM BATON ROUGE, LOUISIANA Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2020 Table of Contents Page Number SUPPLEMENTARY INFORMATION COMBINING AND INDIVIDUAL NON-MAJOR FUND STATEMENTS AND SCHEDULES Non-major Governmental Funds: Non-major Governmental Fund Descriptions 63 - 66 Combining Balance Sheet 67 - 70 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 71 - 74 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Comparison Schedules) Title II 75 Exceptional Education Program 76 Gear-Up Baton Rouge 77 State Grants 78 Alcohol and Drug Abuse 79 Career and Technical Education 80 Title X – Homeless 81 Geaux Clean 82 School Safety 83 TANF and ECE 84 Continuing Education 85 Magnet School Assistance Program 86 Local Grants 87 Title IV 88 Summer School 89 WBRH Radio Station Training Program 90 Technology Literacy Challenge (Title III) 91 - iii - EAST BATON ROUGE PARISH SCHOOL SYSTEM BATON ROUGE, LOUISIANA Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2020 Table of Contents Page Number SUPPLEMENTARY INFORMATION (continued) COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (continued) Non-major Governmental Funds: (continued) Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: (continued) Striving Readers Comprehensive Literacy 92 Louisiana Healthy Schools 93 State Personnel Development Grant 94 21st Century Community Learning 95 LSU Education Innovation and Research 96 Strong Start Cares Act 97 Proprietary Fund Type – Internal Service Funds: Internal Service Funds Descriptions 98 Combining Statement of Net Position 99 Combining Statement of Revenues, Expenses and Changes in Net Position 100 Combining Statement of Cash Flows 101 Fiduciary Fund Type – Agency Funds Agency Funds Descriptions 102 Statement of Fiduciary Assets and Liabilities 103 Combining Statement of Changes in Assets and Liabilities 104 - 105 Schedule of Compensation, Benefits and Other Payments to the Superintendent 106 Schedule of Board Members’ Compensation 107 - iv - EAST BATON ROUGE PARISH SCHOOL SYSTEM BATON ROUGE, LOUISIANA Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2020 Table of Contents Page Number Statistical Section (unaudited) Statistical Schedule Descriptions 108 - 109 Net Position By Component – Last Ten Fiscal Years 110 Changes in Net Position – Last Ten Fiscal Years 111 - 112 Fund Balances of Governmental Funds – Last Ten Fiscal Years 113 - 114 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 115 - 116 Assessed and Estimated Actual Value of Taxable Property – Last Ten Tax Years 117 Principal Property Taxpayers – Current Year and Nine Years Ago 118 Property Tax Millages – Direct and Overlapping Governments – Last Ten Tax Years 119 - 120 Property Tax Levies and Collections – Last Ten Tax Years 121 Tax Revenues by Source, Governmental Funds – Last Ten Calendar Years 122 Taxable Sales by Category – General Sales and Use Tax - Last Ten Calendar Years 123 - 124 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 125 Computation of Legal Debt Margin – Last Ten Tax Years 126 Computation of Direct and Overlapping Debt – December 31, 2019 127 Demographic Statistics – Last Ten Fiscal Years 128 Principal Employers – Current Year and Nine Years Ago 129 General Fund Expenditures by Function – Last Ten Fiscal Years 130 - 131 - v - EAST BATON ROUGE PARISH SCHOOL SYSTEM BATON ROUGE, LOUISIANA Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2020 Table of Contents Page Number General Fund Expenditures by Function Per Pupil – Last Ten Fiscal Years 132 - 133 Full-Time Equivalents (FTE) Employees – Last Ten Fiscal Years 134 - 137 Percentage of Free and Reduced Students in Lunch Program – Last Ten Fiscal Years 138 History of High School Graduates – Last Ten Fiscal Years 139 Capital Asset Information – School Building Information – June 30, 2020 140 - 142 - vi - Michael Gaudet Tramell Howard District 7 District 3 President Vice President Mark Bellue Dadrius Lanus Dawn Chanet Collins District 1 District 2 District 4 Evelyn Ware-Jackson Jill C. Dyason Connie Bernard David Tatman District 5 District 6 District 8 District 9 vii Administrative Officers Interim Superintendent of Schools Adam Smith General Counsel Gwynn Shamlin Assistant Superintendent for Instructional Services Ben Necaise Chief Officer for Accountability & Assessments Andrea O’Konski Chief Officer for Human Resources Daphne Donaldson Chief Officer for Business Operations James P. Crochet Director of Communications Taylor Halsey Chief Officer of Technology Amy Jones viii ix January 27, 2021 President and Members of the East Baton Rouge Parish School Board and Residents of East Baton Rouge Parish: We are pleased to submit to you the Comprehensive Annual Financial Report (CAFR) of the East Baton Rouge Parish School System (School System), for the fiscal year ended June 30, 2020, which provides full disclosure of the financial operations of the School System. The basic financial statements within this CAFR, which have been audited by Postlethwaite & Netterville, APAC, a firm of licensed certified public accountants, conforms to Generally Accepted Accounting Principles (GAAP) as applicable to governmental entities. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management and with the School Board. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of various funds and account groups of the School System. All disclosures necessary to enable the reader to gain an understanding of the School System’s financial activities have been included. This letter of transmittal is designed to complement the Management Discussion and Analysis (MD&A) and should be read in conjunction with it. The MD&A is located immediately following the report of the independent auditors and provides an objective, easy to understand narrative overview and analysis of the basic financial statements. The MD&A explains the financial position and results of operations of the School System for the past fiscal year. REPORTING ENTITY This report includes all funds of the School System. The School System is a political subdivision of the State of Louisiana created under the Constitution of Louisiana. As such, it has the power to sue and be sued. The School System has the power to make rules and regulations for its own government consistent with the laws of the State of Louisiana and the regulations of the State Board of Elementary and Secondary Education (BESE). It is the responsibility of the School Board to make public education available to the residents of East Baton Rouge Parish. The elected Board is chosen from nine (9)