WAYNE TOWNSHIP PUBLIC SCHOOLS Wayne Township Public Schools District Board of Education Wayneo New Jersey Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2015 Comprehensive Annual Financial Report of the Wayne Township Public Schools Board of Education \ilayne, New Jersey For the Fiscal Year Ended June 300 2015 Prepared by Wayne Township Public Schools District Board of Education Finance Department S TABLE OF CONTENTS FISCAL YEAR ENDED ruNE 30. 2015 INTRODUCTORY SECTION (Unaudited) I-etter of Transrnittal ................ 1 Organizational Chaft .... 5 Roster of Officials. 6 Consultants and Advisors ................. 1 ASBO International Cerlificate of Excellence I FINANCIAL SECTION .9 Independent Auditors' Report........ 10 Required Supplernentary Information'.'.'..'...... 13 Management's Discussion and Analysis (Unaudited) t4 Basic Financial Statements (Sections A. and B.)'....'....".' 21 A. District-Wide Financial Statements. 28 A-1 Staternent of Net Position...... 29 A-2 Statement of Activities .......... 30 B. Fund Financial Statements ................ 32 B-l Balance Sheet - Governtnental Funds.... JJ B-2 Statement of Revenue, Expenditures and Changes in Fund Balance - Governmental Funds 34 B-3 Recolcilìation of the Statement of Revenue, Expenditures and Changes in Fund Balances of Governrnental Funds to the Statement of Activities............. 35 B-4 Statement of Net Position - Proprietary Funds 36 B-5 Statement of Revenue, Expenses and Changes in Fund Net Position - Proprietary Funds. 3',| B-6 Statement of Cash Flows - Proprietary Funds 38 39 B-1 Statetnent of Fiduciary Net Position - Fiduciary Funds .... '. ' ' ' B-8 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 40 Notes to the Basic Financial Statements Required Supplementary Information (Unaudited) L. Schedules Related to Accounting and Reporting for Pensions (GASB 68) (Unaudited)'. 73 L-¡ Schedule of District's Proportionate Share of the Net Pension Liability - Public Employees' Retirement Systern 13 L-2 Schedule of District Contributions - Public Employees' Retirement System......... 74 L-3 Schedule of District's Proportionate Share of the Net Pension Lìability - Teachers' Pension and Annuity Fund .........' 15 Notes to Required Supplernentary lnformation......"..." 16 C. Budgetary Comparison Schedules (Unaudited) 7',7 C-l Budgetary Comparison Schedule - General Fund'....'..... 18 C-2 Budgetary Comparison Schedule - Special Revenue Fund........'.. 92 C-3 Budgetary Comparison Schedule * Note to Required Supplernentary Information 93 WAYNE TOWNSHIP PIJBLIC SCHOOT,S TABLE OF CONTENTS FISCAL YEAR ENDED JUNE 30. 2015 (Continued) FINANCIAL SECTION (Cont'd) Other Supplementary Schedules (D. to I.) D. School Level Schedules (Not Applicable) .95 E. Special Revenue Fund.......... .96 E-1 Combining Schedule of Revenue and Expenditures Special Revenue Fund - Budgetary Basis .......... .97 E-2 Preschool Education Aid Schedule of Expenditures Special Revenue Fund - Budgetary Basis (Not Applicable) F. Capital Projects Fund .......... 101 F-1 Summary Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budgetary Basis.......... 102 F-1a Schedule ofProject Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - District-Wide Energy Savings Itnprovement Program 103 F-1b Schedule ofProject Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - Wayne Flills High School - Partial Roof Replacetneut Project 104 F-1c Schedule ofProject Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - Wayne Hills High School - New ADA Restroorn Project.. 105 F-1d Schedule ofProject Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - George Washington Middle School - Exterior Window Replacement Project 106 F-1e Schedule ofProject Revenues, Expenditures, Project Balance and Project Status - Budgetary Basis - Lafayette Elementary School - Paúial Roof Replacement Project... ... 107 G. Proprietary Funds 108 Enterprise Funds: G-1 Combining Statement of Net Position 109 G-2 Cornbining Statement of Revenue, Expenses and Changes in Fund Net Position 110 G-3 Cornbining Statement of Cash Flows 111 H. Fiduciary Funds .... 112 H-1 Cornbining Statement of Fiduciary Net Position 113 H-2 Statement of Changes in Fiduciary Net Position 114 H-3 Student Activity Agency Fund Schedule of Receipts and Disbursements 115 H-4 Student Activity Agency Fund Statement of Activity............... 116 H-5 PayrollAgency Fund Schedule of Receipts and Disbursements.............. 1t7 I. Long-Term Debt........... ll8 I-1 Schedule of Serial 8onds......... 119 I-2 Schedule of Obligations Under Capital Leases 120 I-3 Debt Service Fund Budgetary Comparison Schedule (tJnaudited) 121 WAYNE TOWNSHIP IUBLIE SÇHQQLS TABLE, OF CONTENTS FISCAL YEAR ENDED JUNE 30. 2015 (Continued) STATISICAL SECTION J. Statistical Section (Unaudited) 122 J-1 Net Position by Component.....,........ 123 J-2 Changes in Net Position...... 124 J-3 Fund Balances - Governmental Funds 126 J-4 Changes in Fund Balances - Governlnental Funds 121 J-5 General Fund Other Local Revenue by Source ........,...,.,.. 129 J-6 Assessed Value and Estimated Actual Value of Taxable Property 130 J-7 Direct and Overlapping Property Tax Rates 131 J-8 Principal PropertyTaxpayers.. 132 J-9 Property Tax Levies and Collections.........,... 133 J- 1 0 Ratios of Outstanding Debt by Type 134 J-11 Ratios of Net General Bonded Debt Outstanding.......... 135 J-12 Ratios of Overlapping Governmental Activities Debt.... 136 J-13 Legal Debt Margin Information 131 J-14 Demographic and Economic Statistics 138 J-15 Principal Employers.. .............,.,... 139 I-16 Full-Time Equivalent District Enrployees by Function/Program ,. 140 J-17 Operating Statistics 141 J-18 School Building Information 142 J-19 Schedule of Required Maintenance for School Facilities 145 I-20 Insurance Schedule 146 K. SINGLE AUDIT SECTION., 147 K-1 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accoldance with Government Auditing Standards 148 K-2 Independent Auditor's Report on Compliance For Each Major Federal and State Program; Report on Internal Control C)ver Cornpliance Requiled by OMB Circular A-133 and New Jersey's OMB Circulars 04-04 and l5-08 150 Schedule of Expenditures of FederalAwards. 152 Schedule of Expenditures of State Awards...........,..... 154 Notes to Schedules of Expenditures of Federal and State Awards 156 Schedule of Findings and Questioned Costs,., 158 Summary Schedule of Prior Audit Findings ... ... ...,......... 160 INTRODUCTORY SECTION Page I Administrative Offices B 50 Nellis Drive Wayne, NJ 07470 www,wayneschools.com Phone: (973) 633-3000 Tou¡nship Public Schools December 7,2015 The Honorable President and Members of the Board of Education Wayne Township Public Schools County of Passaic, New Jersey Dear Board Members: It is with pleasure that we submit the Comprehensive Annual Financial Report (CAFR) of the Township of Wayne Public Schools (the "District") for the fiscal year ended June 30, 2015. Responsibility for both the accuracy of the data and completeness and faimess of the presentation, including all disclosures, rests with the management of the Board of Education (the "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 basic financial statements and results of operations of the District. All disclosures necessary to enable the reader to gain an understanding of the District's hnancial 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, the District's organizational chaf and a list of principal officials. The financial section includes the Independent Auditors' Report, the management's discussion and analysis, the basic financial statements and notes providing an overview of the District's financial position and operating results, and supplementary schedules providing detailed budgetary information. The statistical section includes selected financial and demographic information, financial trends and the fiscal capacity of the District, 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. Ofhce of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and New Jersey's OMB Circulars 04-04 and 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Information related to this single audit, including the auditors'reports on the internal control and compliance with applicable laws, regulations, contracts and grants along with findings and questioned costs, is included in the single audit section of this report. 1) REPORTING ENTITY AND ITS SERVICES: The Township of Wayne Public Schools is an independent reporting entity within the criteria adopted by the Government Accounting Standards Board ("GASB") in codification section 2100. All funds and the Government-Wide financial statements of the District are included in this report. The Township of Wayne Public Schools District and all its schools institute the District's reporting