Pequea Valley School District 2016 Audit January 3, 2017 - PowerPoint PPT Presentation

Pequea Valley School District 2016 Audit January 3, 2017

Introduction • Independent Auditors’ Report for the year ended June 30, 2016 • Management’s Discussion and Analysis. Unaudited information prepared by John Bowden, Chief of Finance and Operations. • Government Wide Statements - Full accrual basis statements.

Governmental Activities Historical Analysis June 30, 2014 June 30, 2015 June 30, 2016 Current Assets 19,227,725 19,399,886 20,369,217 Noncurrent Assets 45,011,844 43,295,306 42,382,105 Total Assets 64,239,569 62,695,192 62,751,322 Deferred Outflow 795,503 2,953,492 3,276,470 of Resources Current Liabilities 6,887,565 7,098,192 9,322,192 Noncurrent Liabilities 22,865,346 53,445,278 52,820,831 Total Liabilities 29,752,911 60,543,470 62,143,023 Deferred Inflow -0- 3,438,324 1,118,000 of Resources Total Net Position 35,282,161 1,666,890 2,766,769

Historical and Budget to Actual Analysis

General Fund Results 2014 2015 2016 - Actual 2016 – Final Budget Local Revenues 24,352,573 24,912,939 25,122,585 24,485,645 State Revenues 6,468,987 6,726,292 6,972,240 7,351,804 Federal Revenues 1,578,530 1,417,358 1,329,446 1,274,676 Total Revenues 32,400,090 33,056,589 33,424,271 33,112,125 % Increase (Decrease) 3.7% 2.0% 1.1% Instructional Services 15,536,749 16,247,357 16,779,069 17,557,352 Instructional Student Support 3,234,043 3,416,753 3,732,352 3,625,721 Admin & Financial Support 2,254,811 2,474,295 2,855,517 2,673,226 Operation & Maintenance 2,594,442 2,838,638 2,657,185 2,697,261 Student Transportation 1,861,058 1,987,188 2,376,574 2,150,382 Student Activities 609,967 630,477 599,550 715,547 Community Services 34,546 35,363 32,447 26,721 Refund of Prior Year Revenues 86 -0- -0- -0- Debt Service Principal -0- -0- 65,930 -0- Total Expenditures 26,125,702 27,630,071 29,098,624 29,446,210 % Increase (Decrease) 1.7% 5.8% 5.3% Excess of Revenues over 6,274,388 5,426,518 4,325,647 3,665,915 Expenditures

General Fund Results 2014 2015 2016 - Actual 2016 – Final Budget Excess of Revenues over 6,274,388 5,426,518 4,325,647 3,665,915 Expenditures Fund Transfers 3,741,494 5,750,103 3,957,773 4,147,545 Other Uses (Sources) (31,058) (27,264) (278,140) 400,000 Total Other Financing Uses 3,710,436 5,722,839 3,679,633 4,547,545 Change in Fund Balance 2,563,952 (296,321) 646,014 (881,630) Ending Fund Balance 11,522,900 11,226,579 11,872,593

Capital Projects Fund Ending Fund Fiscal Year Fund Additions Expenditures Balance 2015-16 9,519 1,307,794 1,521,432 2014-15 1,006,216 1,181,799 2,819,707 2013-14 1,941 236,546 2,995,290

GASB No. 54 – Fund Balance Reporting and Governmental Type Definitions General Fund Capital Project Fund Nonspendable Prepaid Expenses 68,015 -0- Restricted to Guarantee Satisfactory -0- 96,159 Completion of Capital Projects Committed (Board) for Future 5,300,000 -0- Retirement Contributions Committed (Board) for Future Health 2,900,000 -0- Care Costs Assigned for Future Capital Outlays -0- 1,425,273 Unassigned (Residual general fund 3,604,578 -0- balance) Total 11,872,593 1,521,432

Food Service Fund 2013-14 2014-15 2015-16 Operating Revenues 284,534 261,900 85,141 Non-operating Revenues 493,120 466,493 609,363 Revenues 777,654 728,393 694,504 Salaries and Benefits 202,112 180,918 177,228 Purchased Services 260,829 263,156 261,293 Supplies 348,032 307,293 403,746 Depreciation 43,385 41,349 38,865 Total Expenses 854,358 792,716 881,132 Change in Net Position (76,704) (64,323) (186,628)

Internal Service Fund 2013-14 2014-15 2015-16 Charges for Services 3,054,444 2,537,601 2,796,034 Employee Benefits 2,898,737 2,992,102 3,719,233 Non Operating Revenues 2,874 971 2,560 Interfund Transfers -0- 1,000,000 -0- Change in Net Position 158,581 546,470 (920,639)

Pending Changes in Accounting Principles GASB Statement No. 75 - Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB) Improve accounting and financial reporting for state and local • government Required recordation of unfunded actuarial accrued liability upon • implementation on the GW financial statements and proprietary funds Requires recordation of the School District’s proportionate share of • PSERS liability for premium assistance plan Changes to assumptions used by the actuaries to calculate the OPEB • liability Effective for the School District’s June 30, 2018 financial statements •

Pending Changes in Accounting Principles GASB Statement No. 77 – Tax Abatement Disclosures Provide users of the financial statements with essential information • about the nature and magnitude of the reduction in tax revenues through tax abatement programs No financial statement impact – footnote disclosure only • Effective for the School District’s June 30, 2017 financial statements •

Other Financial Statement Components • Notes to Financial Statements • Note 1 - Summary of Significant Accounting Policies • Note 10 – Long-Term Debt • Note 15 – Defined Benefit Pension Plan • Supplemental Schedules provide additional detail to basic financial statements • Single Audit (Compliance Audit of the School District’s Federal Grants) and Related Reports

Single Audit • Compliance audit of federal awards • 2016 is first year under Uniform Guidance • Major programs tested were Special Education Grants and Child Nutrition

This presentation is intended solely for the information and use of the management of Pequea Valley School District and the School Board and is not intended to be and should not be used by anyone other than these specified parties.

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