TOWN OF BOONTON SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 Boonton, New Jersey COMPREHENSIVE ANNUAL FINANCIAL REPORT of the Town of Boonton School District Boonton, New Jersey For The Fiscal Year Ended June 30, 2015 Prepared by Business Office TOWN OF BOONTON SCHOOL DISTRICT TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal 1-lV Organizational Chart v Roster of Officials VI Consultants and Advisors Vll FINANCIAL SECTION Independent Auditor's Report 1-3 REQUIRED SUPPLEMENTARY INFORMATION-PART I Management's Discussion and Analysis 4-10 Basic Financial Statements A. District-wide Financial Statements A-1 Statement ofNet Position 11 A-2 Statement of Activities 12 B. Fund Financial Statements Governmental Funds B-1 Balance Sheet 13 B-2 Statement of Revenues, Expenditures, and Changes in Fund Balances 14 B-3 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances with the District-Wide Statements 15 Proprietary Funds B-4 Statement of Net Position 16 B-.5 Statement of Revenues, Expenses, and Changes in Fund Net Position 17 B-6 Statement of Cash Flows 18 Fiduciary Funds B-7 Statement of Fiduciary Net Position 19 B-8 Statement of Changes in Fiduciary Net Position 20 Notes to the Financial Statements 21-56 TOWN OF BOONTON SCHOOL DISTRICT TABLE OF CONTENTS REQUIRED SUPPLEMENTARY INFORMATION-PART IT C. Budgetary Comparison Schedules C-1 · Budgetary Comparison Schedule - General Fund 57-65 C-2 Budgetary Comparison Schedule- Special Revenue Fund 66 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION-PART II C-3 Budgetary Comparison Schedule- Note to Required Supplementary Information 67 L. Schedules Related to Accounting and Reporting for Pensions (GASB 68) L-1 Required Supplementary Information - Schedule of the District's Proportionate Share of the Net Pension Liability- Public Employees Retirement System 68 L-2 Required Supplementary Information- Schedule of District Contributions- Public Employees Retirement System 69 L-3 Required Supplementary Information- Schedule of the District's Proportionate Share of the Net Pension Liability- Teachers Pension and Annuity Fund 70 Notes to Required Supplementary Information 71 OTHER SUPPLEMENTARY INFORMATION D. School Level Schedules- Not Applicable E. Special Revenue Fund E-1 Combining Schedule of Program Revenues and Expenditures Special Revenue Fund- Budgetary Basis 72 E-2 Schedule of Preschool Education Aid- Budgetary Basis- Not Applicable 73 F. Capital Projects Fund F-1 Summary Schedule of Project Expenditures 74 F-2 Summary Schedule of Revenues, Expenditures and Changes in Fund Balance- Budgetary Basis 75 F-2a Schedule of Project Revenues, Expenditures, Project Balance and Project Status- Budgetary Basis 76 G. Proprietary Funds G-1 Combining Statement of Net Position 77 G-2 Combining Statement of Revenues, Expenses and Changes in Net Position 78 G-3 Combining Statement of Cash Flows 79 TOWN OF BOONTON SCHOOL DISTRICT TABLE OF CONTENTS OTHER SUPPLEMENTARY INFORMATION (Continued) H. Fiduciary Funds H -1 Combining Statement of Agency Net Position 80 H-2 Combining Statement of Changes in Fiduciary Net Position- Not Applicable 81 H-3 Student Activity Agency Fund Schedule of Receipts and Disbursements 82 H-4 Payroll Agency Fund Schedule of Receipts and Disbursements 83 I. Long-Term Debt I-1 Schedule of Bonds Payable 84-85 I-2 Statement of Obligations Under Capital Leases 86 I-3 Debt Service Fund Budgetary Comparison Schedule 87 J. STATISTICAL SECTION (Unaudited) J-1 Net Position by Component 88 J-2 Changes in Net Position 89 J-3 Fund Balances- Governmental Funds 90 J-4 Changes in Fund Balances - Governmental Funds 91 J-5 General Fund- Other Local Revenue by Source 92 J-6 Assessed Value and Actual Value of Taxable Property 93 J-7 Direct and Overlapping Property Tax Rates 94 J-8 Principal Property Taxpayers 95 J-9 Property Tax Levies and Collections 96 J -10 Ratios of Outstanding Debt by Type 97 J-11 Ratios ofNet General Bonded Debt Outstanding 98 J-12 Direct and Overlapping Governmental Activities Debt 99 J-13 Legal Debt Margin Information 100 J-14 Demographic and Economic Statistics 101 J-15 Principal Employers 102 J-16 Full-Time Equivalent District Employees by Function/Program 103 J-17 Operating Statistics 104 J-18 School Building Information 105 J-19 Schedule of Required Maintenance for School Facilities 106 J-20 Insurance Schedule 107 TOWN OF BOONTON SCHOOL DISTRICT TABLE OF CONTENTS SINGLE AUDIT SECTION K-1 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards- Independent Auditor's Report 108-109 K-2 Report on Compliance for each Major Federal and State Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by U.S. OMB Circular A-133 and Schedule of Expenditures of State Financial Assistance as Required by New Jersey OMB Circular 15-08- Independent Auditor's Report 110-112 K-3 Schedule of Expenditures of Federal Awards 113 K-4 Schedule of Expenditures of State Financial Assistance 114 K-5 Notes to the Schedules of Expenditures of Federal Awards and State Financial Assistance 115-116 K-6 Schedule of Findings and Questioned Costs 117-121 K-7 Summary Schedule of Prior Year Audit Findings 122 INTRODUCTORY SECTION BOONTON Public Schools A W o rld Class Ed ucatio n for T o m o rrow's Leaders Office of the Business Administrator November 19,2015 Honorable President and Members of the Board of Education Boonton Board of Education 434 Lathrop A venue Boonton, New Jersey 07005 Dear Board Members: The Comprehensive Annual Financial Report of the Town of Boonton Public Schools for the fiscal year ended June 30, 201 5 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 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 financial 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 organization chart and a list of principal official s. The Financial Section includes The Independent Auditors' Repmi , the management's discussion and analysis, 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 economic and demographic information, financial trends and the fiscal capacity of the Di stri ct, generally presented on a multi-year basis. The Di strict 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. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and New Jersey's OMB Circular NJOMB 15-08, Single Audit Policy f or Recipients of Federal Grants, State Grants and State Aid. Information related to this Single Audit, including the auditor's report on the internal control and compliance with applicable laws, regulations, contracts and grants along with findings and questioned costs, are included in the single audit secti on of this report. 1) REPORTIN G ENTITY AND SERV ICES: The Boonton Public School District is an independent reporting entity within the criteria adopted by the 434 La throp Ave nu e • B oonton, New J ersey 0 7005 www.boonto nschool s ..o rg • 973-.335-. 3994 ext. 223 • Fax: 973-.335-8281 l GASB as established by GASB Statement No. 14. All funds of the District are included in this report. The Boonton Board of Education and all its schools constitute the District's reporting entity. The District provides a full range of educational services appropriate to grade levels PreK through 12 for the students residing in Boonton and to grade levels 9 through 12 for the students residing in Lincoln Parle These include regular, vocational, as well as special education for handicapped youngsters. The District completed the 2014-2015 fiscal year with an avcmge daily enrollment of I ,308 students. an increase of 15 students over the previous year's enrollment. The following details the changes in the student average daily enrollment of the district over the last ten years: Average Daily Enrollment Fiscal Year Student Enrollment Percent Change 2014-2015 1,308 1.16% 2013-2014 1.293 0.31% 2012-2013 I ,289 0.30'% 2011-2012 I ,251 0.08% 2010-2011 1.241 2.99% 2009-20 I 0 1,205 -0.25% 2008-2009 1,208 -2.74'Yo 2007-2008 1242 -1.66% 2006-2007 I ,263 -4.82% 2005-2006 1,327 2.47% 2) ECONOMIC CONDITIONS AND OUTLOOK: The School District continues to monitor the ratable base for the Town. Sho1i term trends continue to indicate that ratables will remain flat. An increase in housing projects is in the preliminary stages of development. If these projects come to fruition, the burden on the District to provide services could increase. The District's budget for the 2015- 2016 fiscal year includes a 2% increase in the local tax levy. At the close of the em Tent fiscal year, the Teacher's contract was not open f()r negations which will provide for stability and planning in future budget developments for the next three years.