Pequea Valley School District 2018 Audit December 4, 2018 - - PowerPoint PPT Presentation

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Pequea Valley School District 2018 Audit December 4, 2018 - - PowerPoint PPT Presentation

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Pequea Valley School District 2018 Audit December 4, 2018 Introduction Independent Auditors Report for the year ended June 30, 2018 Managements Discussion and Analysis. Unaudited information prepared by John Bowden, Chief of

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SLIDE 1

Pequea Valley School District 2018 Audit

December 4, 2018

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SLIDE 2

Introduction

  • Independent Auditors’ Report for the year

ended June 30, 2018

  • Management’s Discussion and Analysis.

Unaudited information prepared by John Bowden, Chief of Finance and Operations.

  • Government Wide Statements - Full accrual

basis statements.

For Management Use Only 2

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SLIDE 3

Governmental Activities Highlights

For Management Use Only

  • Capital asset additions of $1.46M included Apple iPads

(leased), the planetarium project, the High School auditorium upgrade, and the Salisbury Elementary systems automation.

  • Disposal of various capital assets in current year

included the old Paradise Elementary School Building.

  • $3.79M of principal payments made during the year.

Ending balance of outstanding debt at June 30, 2018 is $10.48M.

  • Implementation of new OPEB accounting standard

resulted in a $2.90M increase in noncurrent liabilities.

  • Net position increased by $1.84M as of June 30, 2018.

3

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SLIDE 4

GASBS No. 75, OPEB

  • Effects the full-accrual financial statements

– Government-Wide – Enterprise Fund (Food Service)

  • Additional footnote disclosures and required

supplementary information

  • Summary of effects ($000)

For Management Use Only

PV Plan PSERS Plan OPEB Liability 1,251 1,883 OPEB Expense 123 95 Prior Period Adjustment 1,908 1,145

4

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SLIDE 5

PSERS

  • Pension Reform
  • As of 6/30/17, PSERS plan was approximately 52%

funded (about $49 billion unfunded liability) – PV’s proportionate share .0924%

  • Normal Cost

7.70

  • Unfunded Liability

31.74 Premium Assistance .83 32.57%

  • Net pension liability at 6/30/18 - $45.6M

For Management Use Only 5

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SLIDE 6

Governmental Activities

Historical Analysis June 30, 2016 June 30, 2017 June 30, 2018 Current Assets 20,369,217 16,747,960 18,789,686 Noncurrent Assets 42,382,105 40,826,953 39,614,303 Total Assets 62,751,322 57,574,913 58,403,989 Deferred Outflow

  • f Resources

3,276,470 9,153,453 9,489,310 Current Liabilities 9,322,192 6,865,240 8,438,368 Noncurrent Liabilities 52,820,831 55,921,363 56,668,158 Total Liabilities 62,143,023 62,786,603 65,106,526 Deferred Inflow

  • f Resources

1,118,000 1,031,000 740,000 Total Net Position 2,766,769 2,910,763 2,046,773

For Management Use Only 6

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SLIDE 7

General Fund Results

2016 2017 2018 - Actual 2018 – Final Budget Local Revenues 25,122,858 26,401,750 27,736,091 26,687,045 State Revenues 6,972,240 8,495,424 8,487,247 8,149,454 Federal Revenues 1,329,446 1,378,277 1,094,343 1,097,058 Total Revenues 33,424,271 36,275,451 37,317,681 35,933,557 % Increase 1.1% 8.5% 2.9% Instructional Services 16,779,069 18,034,360 19,132,698 19,613,675 Instructional Student Support 3,732,352 3,853,601 3,710,573 3,489,152 Admin & Financial Support 2,855,517 3,022,198 3,258,967 3,312,693 Operation & Maintenance 2,657,185 2,836,370 2,398,950 2,552,602 Student Transportation 2,376,574 2,295,373 2,395,086 2,398,632 Student Activities 599,550 646,693 649,781 657,530 Community Services 32,447 35,435 33,774 33,755 Debt Service Principal 65,930 65,930 65,930

  • 0-

Total Expenditures 29,098,624 30,789,960 31,645,759 32,058,039 % Increase 5.3% 5.8% 2.8% Excess of Revenues over Expenditures 4,325,647 5,485,491 5,671,922 3,875,518

For Management Use Only 7

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SLIDE 8

General Fund Results

2016 2017 2018 Actual 2018 Final Budget

Excess of Revenues

  • ver Expenditures

4,325,647 5,485,491 5,671,922 3,875,518 Fund Transfers 3,957,773 6,127,523 4,630,542 4,203,053 Other Uses (Sources) (278,140) (4,463) (314,553) 400,000 Total Net Other Financing Uses 3,679,633 6,123,060 4,315,989 4,603,053 Change in Fund Balance (646,014) (637,569) 1,355,933 (727,535) Ending Fund Balance 11,872,593 11,235,024 12,590,957

For Management Use Only 8

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SLIDE 9

For Management Use Only

General Fund – Expense Analysis

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$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2016 2017 2018 57.66% 58.57% 60.46% 12.83% 12.52% 11.73% 9.81% 9.82% 10.30% 9.13% 9.21% 7.58% 8.17% 7.45% 7.57% 2.06% 2.10% 2.05% 0.11% 0.12% 0.11% 0.23% 0.21% 0.21% Debt Service Principal Community Services Student Activities Student Transportation Operation & Maintenance Admin & Financial Support Instructional Student Support Instructional Services

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SLIDE 10

Capital Projects Fund

Fiscal Year Fund Additions Expenditures Ending Fund Balance 2017-18 18,078 1,158,541 931,275 2016-17 2,123,991 1,573,685 2,071,738 2015-16 9,519 1,307,794 1,521,432

For Management Use Only 10

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SLIDE 11

GASB No. 54 – Fund Balance Reporting and Governmental Type Definitions

General Fund Capital Project Fund Nonspendable Prepaid Expenses 9,955

  • 0-

Committed (Board) for Future Retirement Contributions 5,300,000

  • 0-

Committed (Board) for Future Health Care Costs 2,900,000

  • 0-

Assigned for Future Capital Outlays

  • 0-

931,275 Unassigned (Residual general fund balance) 4,381,002

  • 0-

Total 12,590,957 931,275

For Management Use Only 11

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SLIDE 12

Food Service Fund

2015-16 2016-17 2017-18 Operating Revenues 85,141 202,964 210,794 Non-operating Revenues 609,363 543,970 570,146 Revenues 694,504 746,934 780,940 Salaries and Benefits 177,228 214,170 238,274 Purchased Services 261,293 221,234 192,062 Supplies 403,746 291,573 298,050 Depreciation 38,865 28,527 19,194 Total Expenses 881,132 755,504 747,580 Change in Net Position (186,628) (8,570) 33,360

For Management Use Only 13

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SLIDE 13

Internal Service Fund

2015-16 2016-17 2017-18 Charges for Services 2,796,034 3,416,245 2,910,942 Employee Benefits 3,719,233 3,872,246 2,910,942 Non Operating Revenues 2,560 2,013 3,377 Interfund Transfers

  • 0-
  • 0-

500,000 Change in Net Position (920,639) (453,988) 503,377

For Management Use Only 13

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SLIDE 14

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 – Note 16 – Other Postemployment Benefits (OPEB) – Note 21 – Change in Accounting Principle

  • Supplemental Schedules provide additional detail to

basic financial statements

  • Single Audit (Compliance Audit of the School District’s

Federal Grants) and Related Reports

For Management Use Only 14

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SLIDE 15

Single Audit

  • Compliance audit of federal awards
  • Major program tested was Title I
  • No questioned costs

For Management Use Only 15

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Thank You & Staff Recognition

John Bowden and Britney Hevner

Thanks to John, Britney, and the rest of the Business Office staff for helping us during our audit.

Pequea Valley School District

We value our relationship with you and thank you for your business.

For Management Use Only 16

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SLIDE 17

ABOUT TROUT, EBERSOLE & GROFF LLP

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SLIDE 18

Who We Are

Serving Central Pennsylvania for over 89 years 16 partners provide depth of knowledge 100+ combined CPAs, Professionals & Support Staff

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SLIDE 19

Our Community Leadership

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SLIDE 20

Our Professional Commitment

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SLIDE 21

Our Vision

Highest Standard is Integrity Extraordinary Client Care Exceptional Counsel & Advice First Professional Resource

Our Vision

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SLIDE 22

Industry Expertise

TEG

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Not for Profit

Employee Benefit Plans

Medical & Dental

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Real Estate

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SLIDE 23

Services Offered

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Employee Benefits

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SLIDE 24

What Differentiates Our Firm

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Our Partners

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SLIDE 25

Best Places to Work Designation

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SLIDE 26

Your Partner

Carol Roland, CPA, CFE, MBA Areas of Expertise:

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Examiners

Direct: 717-358-9154 Email: croland@troutcpa.com

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SLIDE 27

LANCASTER OFFICE 1705 Oregon Pike, Lancaster, PA 17601 Phone 717-569-2900 · Toll Free 800-448-1384 · Fax 717-569-0141 CAPITAL REGION OFFICE 5000 Ritter Road, Suite 104, Mechanicsburg, PA 17055 Phone 717-697-2900 · Toll Free 800-448-1384 · Fax 717-697-2002

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