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HomeMy WebLinkAbout2022 Bonneville School District Audit Bonneville Joint School District #93 IdahoFalls,Idaho Annual Financial Report Year Ended June 30, 2022 Bonneville Joint School District #93 Contents June 30, 2022 MANAGEMENT’S DISCUSSION & ANALYSIS ........................................................................................... 1-7 INDEPENDENT AUDITOR’S REPORT ........................................................................................................ 8-10 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position ............................................................................................................................11 Statement of Activities ................................................................................................................................12 Fund Financial Statements Combined Balance Sheet Governmental Funds....................................................................................................................................13 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ..................................................................................................................14 Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances............................... 15-16 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, And Changes in Fund Balances to the Statement of Activities ...................................................................17 Notes to Financial Statements ...................................................................................................................... 18-41 REQUIRED FINANCIAL INFORMATION General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual .......................................................................................................................................... 42-43 Medicaid Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual ................................................................................................................................................44 Required Supplementary Information .......................................................................................................... 45-47 Notes to Required Supplementary Information .................................................................................................48 OTHER FINANCIAL INFORMATION All Nonmajor Funds Combining Balance Sheet ..................................................................................................................................49 All Nonmajor Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance ............................................50 Schedule of Taxes Receivable ...........................................................................................................................51 Bonneville Joint School District #93 Contents June 30, 2022 ANNUAL FEDERAL COMPLIANCE SECTION 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 Accordance with Government Auditing Standards .................................................................................................................. 52-53 Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance ......................................................................................... 54-56 Schedule of Findings and Questioned Costs ................................................................................................ 57-58 Schedule of Expenditures of Federal Awards .............................................................................................. 59-60 Notes to Schedule of Expenditures of Federal Awards .....................................................................................61 Summary Schedule of Prior Audit Findings .....................................................................................................62 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2022 The discussion and analysis of Bonneville Joint School District #93’s financial performance provides an overall review of the District’s financial activities for the fiscal year ended June 30, 2022. The intent of this discussion and analysis is to look at the District’s financial performance as a whole; readers should also review the notes to the basic financial statements and the financial statements to enhance their understanding of the District’s financial performance. FINANCIAL HIGHLIGHTS Key financial highlights for 2022 are as follows: In total, net position increased by $11,608,307 which represents an 30.42% increase from the 2021 balance of $38,161,126. General revenues accounted for $94,658,319 in revenue or 71.14% of all revenues. Program specific revenues in the form of charges for services, operating grants and contributions, and capital grants and c ontributions accounted for $38,399,008 or 28.86% of total revenues of $133,057,327. Total assets of governmental activities increased by $1,989,142, as cash and cash equivalents increased by $6,285,382, receivables and prepaid expenses decreased by $2,456,698, inventory increased by $36,843, and capital assets decreased by $3,922,100. Unrestricted net position, the part of net position that can be used to finance day-to-day activities without constraints established by grants or legal requirements, of the District increased by $3,149,639. The District had $121,449,020 in expenses; only $38,399,008 of these expenses were offset by program specific charges for services, grants, or contributions. General revenues (primarily state support and local property taxes) of $94,658,319 were adequate to provide for these programs. Among major funds, the General Fund had $88,389,252 in revenues, and $87,191,443 in expenditures. The General Fund’s fund balance decreased $419,346 from 2021. USING THE BASIC FINANCIAL STATEMENTS This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand Bonneville Joint School District #93 as a financial whole, an entire operating entity. The statements then proceed to provide an increasingly detailed look at specific financial activities. The Statement of Net Position and the Statement of Activities provide information about the activities of the whole school district, presenting both an aggregate view of the District’s finances, and a longer-term view of those finances. Fund financial statements provide the next level of detail. For governmental funds, these statements tell how services were financed in the short -term, as well as what remains for future spending. The fund financial statements also look at the District’s most significant funds with all other nonmajor funds presented in total in one column. In the case of Bonneville Joint School District #93, the General Fund is by far the most significant fund. 1 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2022 REPORTING THE DISTRICT AS A WHOLE Statement of Net Position and the Statement of Activities While this document contains the large number of funds used by the District to provide programs and activities, the view of the District as a whole looks at all financial transactions and asks the question, “How did we do financially during 2022?” The Statement of Net Position and the Statement of Activities answer this question. These statements include all assets and liabilities using the accrual basis of accounting simil ar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year’s revenues and expenses regardless of when cash is received or paid. These two statements report the District’s net assets and changes in those assets. This change in net position is important because it tells the reader that, for the District as a whole, the financial position of the District has improved or diminished. The causes of this change may be the result of many factors, some financial and some not. Nonfinancial factors include the District’s property tax base, current property tax laws in Idaho restricting revenue growth, facility condition, required educational programs, and other factors. In the Statement of Net Position and the Statement of Activities, the District reports governmental activities. Governmental activities are the activities where most of the District’s programs and services are reported including, but not limited to, instruction, support services, operation and maintenance of plant, pupil, transportation, and extracurricular activities. The District does not have any business type activities. REPORTING THE DISTRICT’S MOST SIGNIFICANT FUNDS Fund Financial Statements The analysis of the District’s major funds begins on page 13. Fund financial reports provide detailed information about the District’s major funds. The District uses many funds to account for a multitude of financial transactions. However, these fund financial statements focus on the District’s most significant funds. The District’s major governmental funds are the General, Debt Service, Capital Projects, and Medicaid Funds. Governmental Funds Most of the District’s activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year end available for spending in the future periods. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short - term view of the District’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental ac tivities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the financial statements. 2 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2022 THE DISTRICT AS A WHOLE Recall that the Statement of Net Position provides the perspective of the District as a whole. The following table provides a summary of the District’s net position for 2022 compared to 2021: 2022 2021 Assets Current and other assets 63,164,929 57,253,687 Capital assets 140,601,467 144,523,567 Total assets 203,766,396 201,777,254 Deferred outflows of resources 24,047,850 16,753,899 Current and other liabilities 14,841,729 15,484,688 Long-term liabilities 116,841,655 161,245,868 Total liabilities 131,683,384 176,730,556 Deferred inflows of resources 46,361,429 3,639,471 Net investment in capital assets 26,273,619 30,006,795 Restricted 36,205,234 26,109,911 Unrestricted (12,709,420) (17,955,580) Total net position 49,769,433 38,161,126 Total assets of governmental activities increased by $1,989,142, as cash and cash equivalents increased by $6,285,382, receivables and prepaid expenses decreased by $2,456,698, inventory increased by $36,843, and capital assets decreased by $3,922,100. The District’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $49,769,433 at the close of the most recent fiscal year. Unrestricted net position, the part of net position that can be used to finance day-to-day activities without constraints established by grants or legal requirements, of the District increased by $5,246,160. 3 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2022 The following table shows the changes in net position for fiscal years 2022 and 2021: Revenues Program revenues Charges for services Operating grants and contributions General revenues Property taxes State aid Federal aid Other 2022 6,061,292 32,337,716 19,082,470 73,309,645 37,069 2,229,135 2021 3,708,994 31,632,301 19,269,692 67,741,471 37,943 2,345,910 Total revenues 133,057,327 124,736,311 Program expenses Instruction Support services Administrative Business admin services Operations Transportation Community service Non-instructional Interest and fiscal charges Capital improvements 67,220,419 18,075,795 6,560,179 2,372,767 10,149,225 5,018,346 166,614 7,732,890 3,095,021 1,057,764 69,341,545 20,698,145 8,130,937 2,339,653 9,951,208 4,699,056 79,432 5,971,973 3,650,573 947,012 Total expenses 121,449,020 125,809,534 Increase (decrease) in net position 11,608,307 (1,073,223) GOVERNMENTAL ACTIVITIES Governmental revenues come primarily from three sources. State aid of $85,890,037 consists of the state apportionment, other state grants, and revenue in lieu of taxes, and makes up 64.55% of revenues from governmental activities. Property taxes of $18,746,033 make up 14.09% of total revenues from governmental activities. Federal contracts and grants of $21,930,177 make up 16.48% of total revenues from governmental activities. Instruction expenditures including the support activities of support services, administrative, business admin services, operations, and transportation comprise $109,396,731 of District expenses. 4 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2022 The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. The following table shows the total cost of services and the net cost of services. That is, it identifies the cost of these services supported by tax revenue and unrestricted state entitlements. % of Total cost of Net cost of Total Services 2022 Services 2022 Instruction 55.35 67,220,419 55,740,594 Support services 14.88 18,075,795 8,408,492 Administrative 5.40 6,560,179 6,389,047 Business admin services 1.95 2,372,767 2,139,897 Operations 8.36 10,149,225 8,073,996 Transportation 4.13 5,018,346 1,789,570 Community service 0.14 166,614 162,876 Non-instructional 6.37 7,732,890 (1,231,965) Interest and fiscal charges 2.55 3,095,021 617,215 Capital improvements 0.87 1,057,764 960,290 Total expenses 100.00 121,449,020 83,050,012 Instruction: Instruction expenses include activities directly dealing with the teaching of pupils and the interaction between teacher and pupil. Support Services: Support Services provide personnel services, activities, and programs for the administration, management, technical, and logistical support to facilitate and enhance the function of instruction and shall provide for the general operation of the schools. Administration: The personnel, activities, and services for directing and managing the operation of the sch ools in the District. (Principals, assistant principals, secretaries, and clerks charged with responsibility for a school’s administration) Board of Education, Administration, includes expenses associated with administrative supervision of the District. Business Admin Services: The program concerned with the fiscal operations of the District. This program may include budgeting, fiscal and business expenditures, receiving and disbursing, purchasing, financial and property accounting, payroll, internal auditing, and activities that support other administrative and instructional functions including fiscal services, human resources, planning, and administrative information technology. Operations: Operations and maintenance includes the personnel, activities, and programs concerned with keeping the physical plant operational and keeping the grounds, buildings, and equipment in effective working condition and in an adequate and safe state of repair. Community Services: Community Services provide training and materials for parents in the form of workshops, in-service, parent/ family nights, a parent center library, and Pine Basin summer camp. These services better train parents to help students reach state standards. Transportation: Transportation includes the personnel, activities, and services for providing student transportation to school and to activities and to provide for the general administrative and maintenance needs of District vehicles. Non-instructional: Non-instructional services include the preparation, delivery, and servicing of lunches, snacks, and other incidental meals to students and school staff in connection with school activities. 5 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2022 Interest and Fiscal Charges: Interest and Fiscal Charges involve the transactions associated with the payment of interest and other related charges to the debt of the District. Capital Improvements: Capital Improvements include capital expenditures for the schools that are not capitalized under the District’s capitalization policy. THE DISTRICT’S FUNDS Information about the District’s major funds starts on page 13. These funds are accounted for using the modified accrual basis of accounting. All governmental funds had total revenues of $133,147,076 and expenditures of $128,786,682. The net change in fund balance for the year in the General Fund, Debt Service Fund, Capital Projects Fund, and Medicaid Fund, was a decrease of $419,346, an increase of $4,128,654, an increase of $460,117, and a change of $0 respectively. GENERAL FUND BUDGETING HIGHLIGHTS During the course of fiscal 2022 year, the District did amend its budget. For the General Fund, the budgeted revenue was $87,635,450 and the budgeted expense was $90,449,899. Actual revenue was $88,389,252 which includes $736,578 for leadership premiums to qualifying personnel and $361,087 in professional development funds. Actual expenditures were $87,191,443, which include expenditures related to the leadership premiums and professional development. CAPITAL ASSETS At the end of the fiscal year 2022, the District had $140,601,467 invested in land, buildings, furniture and equipment, and vehicles (net of accumulated depreciation). 2022 2021 Non-depreciable assets 6,912,839 34,862,347 Buildings and improvements 129,909,984 105,918,350 Equipment 1,906,233 1,740,984 Vehicles 1,872,411 2,001,886 Total capital assets, net 140,601,467 144,523,567 Overall capital assets decreased $3,922,100 from fiscal year 2021 to fiscal year 2022. Decrease in capital assets is due to the completion of the new middle school, and additional purchases of equipment netted with the Districts depreciation for the year of $7,347,900. DEBT ADMINISTRATION At June 30, 2022, the District had five general obligation bond issues as follows: Due within Total one year 2012C Series Bond 1,100,000 1,100,000 2016A Series Bond 47,370,000 1,085,000 2016B Series Bond 15,405,000 1,895,000 2018 Series Bond 28,905,000 2021 Series Bond 11,700,000 2,430,000 Total 104,480,000 6,510,000 At June 30, 2022, the District’s overall legal debt margin was $214,893,539. 6 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2022 Under the changes of GASB 87, the 2021 capital lease obligation was transitioned to a finance purchase long- term debt obligation. At June 30, 2022, the District had outstanding finance purchase obligations of $66,498. CURRENT FINANCIAL ISSUES AND CONCERNS Bonneville Joint School District 93 continues to be financially stable. The Idaho Legislature has continued to increase funding for Idaho schools. Due to lower statewide attendance rates due to COVID -19 and other illnesses, schools were again funded on enrollment. Enrollment will again be used for funding in the upcoming school year. Enrollment in our schools continues to increase, which brings additional state funding. With continued enrollment growth, along with all day kindergarten that began in the FY 2023 school year, district administration continues to plan and work with the school board in an effort to provide adequate facilities for our students. We are nearing or have exceeded capacity for some of our schools, and are anticipating that the school board will authorize a bond election in March 2023 for additional facilities. We have sold or are in process of selling three properties deemed surplus that will provide additional funds to address facility needs. Federal ESSER funds continue to be used to backfill Emergency Levy Funds the board has chosen not to collect. Once ESSER funds have all been used, the board will have to determine if Emergency Levy Funds will be collected again, or if budget reductions will be made. The Idaho Legislature met on September 1, 2022 in a special session and directed additional funds be appropriated to schools during the upcoming legislative session. Early estimates show that the new funds coming to our district could replace the ESSER and Emergency Levy Funds, if the funds received are not earmarked for specific line items. COMPONENT UNIT These financial statements do not include the Bonneville Education Foundation, a component unit of the District. The financial information for the Foundation will be available at the District office. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the District’s finances and to show the District’s accountability for the money it receives. If you have questions about this report or need additional financial information contact Guy Wangsgard, Chief Financial/ Operations Officer, at Bonneville Joint School District #93, 3497 North Ammon Road, Idaho Falls, Idaho 83401 or email at GuyW@d93.k12.id.us. 7 INDEPENDENT AUDITOR’S REPORT Board of Trustees Bonneville Joint School District #93 3497 N. Ammon Road Idaho Falls, Idaho Opinions We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Bonneville Joint School District #93 (the District), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the district basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Bonneville Joint School District #93, as of June 30, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Bonneville Joint School District #93, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Change in Accounting Principle As described in Note A to the financial statements, in 2022, the District adopted new accounting guidance, GASB Statement No. 87, Leases. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Bonneville Joint School District #93’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 8 In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bonneville Joint School District #93 internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Bonneville Joint School District #93 ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, schedule of changes in total OPEB liability and related ratios, schedule of employer’s share of net OPEB asset PERSI-Sick Leave plan last 10 fiscal years, schedule of employer contribution PERSI-Sick Leave Plan last 10 fiscal years, schedule of employer’s share of net pension liability for PERSI-Base plan last 10 fiscal years and schedule of employer contributions PERSI-Base plan for last 10 fiscal years listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Bonneville Joint School District #93 basic financial statements. The combining and individual nonmajor fund financial statements, schedule of taxes receivable, and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedules referred to above are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 9 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 11, 2022, on our consideration of the Bonneville Joint School District #93’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering District’s internal control over financial reporting and compliance. Wipfli LLP CPAs and Consultants Idaho Falls, Idaho October 11, 2022 10 This page intentionally left blank. Bonneville Joint School District #93 Statement of Net Position June 30, 2022 Governmental Activities ASSETS Cash and investments 45,322,684 Property tax receivable, net 6,924,554 Other receivables 4,375,169 Supplies inventory 159,376 PERSI sick leave 5,115,573 Net PERSI asset 1,267,573 Land and construction in progress 6,912,839 Depreciable buildings, equipment, and vehicles, net of depreciation 133,688,628 Total assets 203,766,396 DEFERRED OUTFLOWS OF RESOURCES Changes of assumptions and other inputs - OPEB 307,094 Changes of assumptions and other inputs - PERSI SL 1,330,747 Related to pensions 22,410,009 Total deferred outflows of resources 24,047,850 LIABILITIES Accounts payable 1,386,085 Accrued wages 8,654,167 Accrued employee benefits 3,313,249 Grants received in advance 81,877 Interest payable 1,406,351 Long-term liabilities Portion due or payable within one year General obligation bonds/premium 7,798,201 Finance purchase agreements 21,765 Other liabilities 255,903 Portion due or payable after one year General obligation bonds/premium 106,463,149 Finance purchase agreements 44,733 Other post employment benefits 2,257,904 Total liabilities 131,683,384 DEFFERED INFLOWS OF RESOURCES Differences between expected & actual experience - OPEB 3,474,541 Differences between expected & actual experience - PERSI SL 2,336,620 Related to pensions 40,550,268 Total deferred inflows of resources 46,361,429 NET POSITION Net investment in capital assets 26,273,619 Restricted for Capital improvements 10,521,340 Debt service 15,118,358 Child nutrition 2,634,072 Other 7,931,464 Unrestricted (12,709,420) Total net position 49,769,433 The accompanying notes are an integral part of these statements. 11 0 0 Bonneville Joint School District #93 Statement of Activities Fiscal Year Ended June 30, 2022 Functions / Programs Governmental activities Instruction Support services Administrative Business admin services Operations Transportation Community service Noninstructional Interest on long-term debt Capital improvements Expenses 67,220,419 18,075,795 6,560,179 2,372,767 10,149,225 5,018,346 166,614 7,732,890 3,095,021 1,057,764 Program Revenues Operating Capital Charges for grants and grants and services contributions contributions 1,585,526 9,894,299 4,329,911 5,337,392 24,037 147,095 232,870 2,075,229 121,818 3,106,958 3,738 8,964,855 2,477,806 97,474 Net (expense) revenue and changes in net position Total governmental activities (55,740,594) (8,408,492) (6,389,047) (2,139,897) (8,073,996) (1,789,570) (162,876) 1,231,965 (617,215) (960,290) Total governmental activities 121,449,020 6,061,292 32,337,716 0 (83,050,012) General revenues Taxes Property taxes Property tax replacement Federal grants State aid - formula grants Other state revenues Investment earnings Other local Gain (loss) on sale of assets 18,746,033 336,437 37,069 73,251,924 57,721 (45,863) 2,187,239 87,759 Total general revenues 94,658,319 Change in net position 11,608,307 Net position - beginnng 38,161,126 Net position - ending 49,769,433 The accompanying notes are an integral part of these statements. 12 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bonneville Joint School District #93 Combined Balance Sheet Governmental Funds June 30, 2022 ASSETS Cash and investments Receivables Taxes - current Taxes - delinquent State apportionment Federal grants/contracts Other Interfund receivable Supplies inventory General 13,425,604 1,980,683 176,889 433,087 76,702 2,580,219 Debt Service 11,386,823 3,426,216 297,882 3 7,934 Capital Projects 7,547,343 959,405 83,479 Medicaid 2,193,126 All Nonmajor Funds 12,962,914 1,511,886 152,431 159,376 Total Governmental Funds 45,322,684 6,366,304 558,250 2,626,216 1,511,886 237,067 2,580,219 159,376 Total assets 18,673,184 15,118,858 8,590,227 2,193,126 14,786,607 59,362,002 LIABILITIES Accounts payable Accrued wages Accrued employee benefits Interfund payable Grants received in advance 860,459 7,703,740 2,885,937 81,877 500 165,418 23,485 254,109 135,561 1,779,971 336,223 696,318 291,751 800,248 1,386,085 8,654,167 3,313,249 2,580,219 81,877 Total liabilities 11,532,013 500 165,418 2,193,126 2,124,540 16,015,597 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 176,889 297,882 83,479 0 0 558,250 FUND BALANCES Nonspendable Inventory Restricted for Debt service Child nutrition Other fund activities Assigned 6,964,283 14,820,476 8,341,330 159,376 2,474,696 10,027,995 159,376 14,820,476 2,474,696 18,369,325 6,964,283 Total fund balances 6,964,282 14,820,476 8,341,330 0 12,662,067 42,788,155 Total liabilities, deferred inflows of resources, and fund balances 18,673,184 15,118,858 8,590,227 2,193,126 14,786,607 59,362,002 The accompanying notes are an integral part of these statements. 13 Bonneville Joint School District #93 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2022 Total fund balances - governmental funds 42,788,155 Amounts reported for governmental activities in the Statement of Net Position different because: are Governmental funds report the effect of premiums, discounts, and similar items when the bonds are first issued by the District whereas these amounts are deferred and amortized in the Statement of Activities. (9,781,350) The net pension liability and the deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the Statement of Net Position: Net pension asset is $1,267,573, deferred inflows of resources related to pensions is $40,550,268 and deferred outflows of resources related to pensions is $22,410,009. (16,872,686) The net PERSI sick leave asset and the deferred outflows of resources and deferred inflows of resources related to PERSI sick leave are only reported in the Statement of Net Position: Net PERSI asset is $5,115,573, deferred inflows of resources related to PERSI sick leave is $2,336,620 and deferred outflows of resources related to PERSI sick leave is $1,330,747. 4,109,700 Capital assets used in governmental activities are not current financial resources and therefore are not reported as assets in governmental funds. The cost of the assets is $238,999,334 and the accumulated depreciation is $98,397,867. 140,601,467 Property taxes receivable will be collected this year but are not available soon enough to pay for the current period's expenditures, and therefore are unearned in the funds. 558,250 Deferred outflows and inflows of resources related to other post employment benefits are not current financial resources and therefore are not reported in the fund financial statements, but are reported on the Statement of Net Position. (3,167,447) Long-term liabilities at year end consisted of: Bonds payable (104,480,000) Accrued interest on the bonds (1,406,351) Compensated absences (255,903) Financed purchases (66,498) OPEB obligation (2,257,904) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. (108,466,656) Total net position - governmental activities 49,769,433 The accompanying notes are an integral part of these statements. 14 Bonneville Joint School District #93 Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Fiscal Year Ended June 30, 2022 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bonneville Joint School District #93 Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Fiscal Year Ended June 30, 2022 All Total Debt Capital Nonmajor Governmental General Service Projects Medicaid Funds Funds REVENUES Property taxes 5,884,181 10,109,539 2,835,079 18,828,799 Penalties and interest on delinquent taxes 36,409 43,865 14,468 94,742 Earnings on investments (20,243) (12,959) (12,661) (45,863) Food service 39,682 39,682 Rental 56,952 56,952 Other local 703,167 74,544 5,574,839 6,352,550 State apportionment Base 64,462,386 64,462,386 Transportation 2,976,571 2,976,571 Exceptional child 129,938 129,938 Benefits 8,789,538 8,789,538 Property tax replacement 252,509 83,928 336,437 Other state revenue 5,117,844 2,477,806 1,599,517 9,195,167 Federal grants and contracts 5,896,533 16,033,644 21,930,177 Total revenues 88,389,252 12,702,179 2,924,091 5,896,533 23,235,021 133,147,076 EXPENDITURES Current Instruction 55,310,580 361,996 1,585,526 7,270,690 64,528,792 Support services 10,482,219 198,683 4,311,007 3,909,892 18,901,801 Administration 6,815,231 29,051 168,577 7,012,859 Business operations 1,923,444 362,727 86,596 2,372,767 Operations 7,904,729 1,432,489 1,233,557 10,570,775 Transportation 4,270,278 420,936 130,387 4,821,601 Other support services Community services 162,876 3,738 166,614 Noninstructional 8,100,432 8,100,432 Debt service 8,573,525 8,573,525 Facility acquisition 322,086 334,450 3,080,980 3,737,516 Total expenditures 87,191,443 8,573,525 3,140,332 5,896,533 23,984,849 128,786,682 Revenues over (under expenditures) 1,197,809 4,128,654 (216,241) 0 (749,828) 4,360,394 The accompanying notes are an integral part of these statements. 15 0 0 0 Bonneville Joint School District #93 Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Fiscal Year Ended June 30, 2022 General OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets Operating transfers, net (1,617,155) Total other financing sources (uses) (1,617,155) Debt Service 0 Capital Projects 253,850 422,508 676,358 Medicaid 0 All Nonmajor Funds 1,194,647 1,194,647 Total Governmental Funds 253,850 0 253,850 Revenues and other financing sources over (under) expenditures (419,346) 4,128,654 460,117 444,819 4,614,244 Fund balance - July 1, 2021 7,383,628 10,691,822 7,881,213 0 12,217,248 38,173,911 Fund balance - June 30, 2022 6,964,282 14,820,476 8,341,330 0 12,662,067 42,788,155 The accompanying notes are an integral part of these statements. 16 Reference Columns Bonneville Joint School District #93 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities For Fiscal Year Ended June 30, 2022 Total net change in fund balances - governmental funds: 4,614,244 Amounts reported for governmental activities in the Statement of Activities are different because: The issuance of long-term debt provides current financial resources to governemntal funds, while the repayment of the principal of long-term debt consumes the current financial 3,881,371resources of governmenal funds. Neither transaction has any effect on net position. Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation and asset dispositions. (3,922,101) Because some property taxes will not be collected for several months after the District's fiscal year ends, they are not considered 'available' revenues in the governmental funds. Unearned tax revenues decreased by $177,508 this year. (177,508) Vested employee benefits are reported in the governemental funds when amounts are paid. The Statement of Activities reports the value of benefits earned during the year. The changes in the OPEB obligations, PERSI SL asset, net pension liability, and the related deferred outlfows and inflows in addition to the change in compensated absences are all 5,593,796differences. Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the fund when it is due, and thus requires the use of current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest accrued, regardless of when it is due. The decrease in interest expense reported in the Statement of Activities is the net result of the decrease in accrued interest on bonds. 3,081,209 Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. This amount is the net effect of these differences in the treatment of long-term (1,462,704) debt and related items. Change in net position of governmental activities 11,608,307 The accompanying notes are an integral part of these statements. 17 This page intentionally left blank. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. General. The basic financial statements listed in the table of contents have been prepared in accordance with the American Institute of Certified Public Accountants’ Industry Audit Guide for Audits of State and Local Government Units. 2. Reporting Entity. The Bonneville Joint School District #93 (the District) is the basic level of government, which has financial accountability and control over all activities related to the public-school education in the area served. The District receives funding from local, state, and federal government sources and must comply with the requirements of these funding source entities. The District is not included in any other governmental “reporting entity” as defined by GASB pronouncement, since Board members are elected by the public and have decision making authority, the authority to levy taxes, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. 3. Discretely Presented Component Unit. The Bonneville Joint School District #93 Education Foundation (the Foundation) is responsible for fund raising to support the District. The Board of the Foundation is appointed by the District and is accountable to the District. The Foundation is a non-profit organization and is presented on the accrual basis of accounting. The District has elected not to include the Foundation at June 30, 2022, as it is immaterial to the District. Complete financial information for the component unit may be obtained at the District’s administrative office. 4. Government-wide and Fund Financial Statements. The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the District. For the most part, the effect of interfund activity has been removed from these statements. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not included among program revenues are reported as general revenues. Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. 5. Fund Accounting. The District uses funds to report on its financial position and results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. Funds are classified into three categories: governmental, proprietary, and fiduciary. The emphasis of fund financial statements is on major governmental funds, each reported in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Major individual governmental funds are reported as separate columns in the fund financial statements. Governmental Fund Types: General Fund -The General Fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. 18 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Debt Service Fund -The Debt Service Fund is used to account for the accumulation of resources and for the repayment of general long-term debt principal, interest, and related costs. The primary revenue source is local property taxes levied specifically for debt service. Capital Projects Fund -The Capital Projects Fund is used to account for the financial resources used to acquire school facilities, renovate existing facilities, or as otherwise provided in the Idaho Code. Medicaid Fund -The Medicaid Fund is used to account for the costs of servicing children’s needs under the Medicaid program. Special Revenue Fund -The purpose of the Special Revenue Fund is to account for federal, state, and locally funded grants and activities. These grants are awarded to the District with the purpose of accomplishing specific educational tasks as defined in the Grant Awards. Special Revenue Fund types include the Child Nutrition Fund and School Activity Funds. The purpose of the Child Nutrition Fund is to account for all federal support and student charges, which are received by the District for the purpose of providing students with a nutritional, inexpensive meal.The School Activity Funds are monies collected primarily through fund raising efforts of the individual schools or school sponsored groups. The school principal is responsible, under the authority of the Board of Trustees, for collecting, controlling, disbursing, and accounting for all School Activity Funds. 6. Basis of Accounting. The District applies the provisions of GASB Statement No. 34, Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments. This Statement is meant to present the information in a format more closely resembling that of the private secto r and to provide the user with more managerial analysis regarding the financial results and the District’s financial outlook. Government-wide Financial Statements The government-wide financial statements (Statement of Net Position and Statement of Activities) display information about the reporting government as a whole. These statements include all the financial activities of the District, except for its fiduciary funds. Generally, the effect of material interfund activity has bee n removed from the government-wide financial statements. The Statement of Activities demonstrates the degree to which the direct expenses of given functions are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other internally directed revenues are reported instead as general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as eligibility requirements imposed by the provider have been met. The District applies restricted resources first when an expense is incurred for which both restricted and unrestricted resources are available. Depreciation has been allocated specifically to functional areas with the majority of it being allocated to instructional. Interest on long-term debt is considered an indirect expense and is reported separately on the Statement of Activities. 19 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Governmental Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal perio d. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in the governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. Property taxes and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). All other revenue items are considered to be measurable and available only when cash is received by the government. 7. Budgets. Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the General, Special Revenue, Debt Service, and Capital Projects Funds. All annual appropriations lapse at fiscal year-end. The District did amend their General Fund and Medicaid budget in 2022. Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting (under which purchase orders, contracts, and other commitments for the expenditures of resources are recorded to reserve that portion of the applicable appropriation) is utilized in the governmental funds. Encumbrances outstanding at year-end are reported as assigned fund balance to indicate an obligation to the District. The District budgets transfers from the General Fund to other funds to cover the costs incurred by these funds in excess of the revenues generated. Certain indirect costs are char ged to several Special Revenue Funds through budgeted transfers from the Special Revenue Funds to the General Fund. 8. Cash and Investments. Cash includes amounts in demand as well as short -term investments with a maturity date within three months of the date acquired by the District. The District pools cash of all funds into common bank accounts. The accounting records of each fund reflect its interest in the pooled cash. Any deficiencies in cash of individual funds represent liabilities to other funds for cash borrowed. Under state law, the District may deposit funds in demand deposits, interest-bearing demand deposits, or time deposits with state banks or credit unions organized under Idaho Law, and national banks or credit unions located in Idaho. 20 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued State statutes authorize the District to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, and repurchase agreements. The District has elected to deposit cash in excess of immediate needs into the Local Government Investment Pool (LGIP). The LGIP is managed by the State of Idaho Treasurer’s office. The funds of the pool are invested in certificates of deposit, repurchase agreements, commercial paper, corporate debt instruments, and U.S. government securities. The certificates of deposit are federally insured. The LGIP is recorded at amortized costs due to the LGIP’s tight restrictions on the types of investments that can be held in the fund to limit the District’s exposure to losses from credit risk, market, and liquidity risk. An annual audit of LGIP is conducted by the State Legislative Auditors Office. The Legislative Auditor of the State of Idaho has full access to the records of the Pool. All other cash is deposited with local banks in checking or savings accounts. For deposits and investments, custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its deposits, investments, or collateral securities that are in the possession of an outside party. The District does not have a policy for custodial credit risk outside of the deposit and investment agreements. The District is authorized to invest in the State of Idaho Local Government Investment Pool. This pooling is intended to improve administrative efficiency and increase investment yield. Credit risk is the risk that an issuer of debt securities or another counterparty to an investment will not fulfill its obligation and is commonly expressed in terms of the credit quality rating issued by nationally recognized statistical rating organization such as Moody’s, Standard & Poor’s, and Fitch’s. The investments of the District are not rated and the District’s policy does not restrict them to rated investments. 9. Short-term Interfund Receivables / Payables. During the course of operations, numerous transactions occur between individual funds and the General Fund for goods provided or services rendered. These receivables and payables are classified as ‘due from other funds’ or ‘due to other funds’ on the balance sheet. 10. Inventories. Supplies inventory consists of paper, food, new textbooks, and other supplies and equipment received at the end of the fiscal year, which had not yet been consumed. The cost is recorded as an expenditure at the time the item is consumed. Inventories are stated at cost on a first-in, first-out basis, which approximates market. Other supplies inventory on hand at year-end has not been recorded as inventory and was treated as expended when purchased. 11. Capital Assets. Capital assets, including land, buildings, improvements, and equipment assets are reported in the applicable governmental columns in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost of more than $10,000 and an initia l useful life of one year or greater. Such assets are recorded at historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. Buildings, improvements, and equipment assets are depreciated using the straight-line depreciation method over the following estimated useful lives: Assets Years Buildings 30 Equipment 3-15 Vehicles 3-8 21 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 12. Compensated Absences. Employees are entitled to certain compensated absences based on their length of employment. The entire compensated absences owed are reported in the government-wide financial statement. 13. Other Post-Employment Benefits. PERSI employees who retire and have not yet become eligible for Federal Medicare coverage are eligible to purchase insurance through the District’s healthcare plan. Although retirees pay their own premium, there is an implicit cost due to increased group premiums when retirees are included in District insurance plans. For the purpose of measuring the net other post -employment benefit liability, deferred outflows of resources and deferred inflows of resources related to other post -employment benefits, and other post-employment benefit expenses, information about fiduciary net position of the implicit medical benefit Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. Benefit payments are recognized when due and payable in accordance with the benefit terms. For purposes of measuring the net OPEB asset, deferred outflows of resources, and deferred inflows of resources related to OPEB, and OPEB expense; (expense offset), information about the fiduciary net position of the Pubic Employee Retirement System of Idaho (PERSI or System) Sick Leave Insurance Reserve fund and additions to/deductions from Sick Leave Insurance Reserve Fund’s fiduciary net position have been determined on the basis as they are reported by the Sick Leave Plan. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 14. Pensions. For purposes of measuring the net pension liability and pension expense, information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (Base Plan) and additions to/deductions from Base Plan’s fiduciary net position have been determined on the same basis as they are reported by the Base Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 15. Deferred Outflows / Inflows of Resources. In addition to assets, the Statement of Net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District has several items that qualify for reporting in this category and they occur on the government-wide Statement of Net Position. The first item is a deferred charge on refunding that results from the difference in the carrying value of refunded debt and its reacquisition price and is amortized over the shorter of the life of the refunded or refunding debt. The District also reports deferred outflows of resources related to pensions for its proportionate shares of collective deferred outflows of resources related to pensions and District contributions to pension plans subsequent to the measurement date of the collective net pension liability. The last two deferred outflows result from changes of assumptions or other inputs on the OPEB obligations and PERSI SL asset. In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. 22 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued The District has several types of items, one of which arises under a modified accrual basis of accounting, and others that arise in the government wide financial statements, that qualify for reporting in this category. Accordingly, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The District also reports deferred inflows of resources for its proportionate share of the collective deferred inflows of resources related to pensions and difference between expected and actual experience – OPEB and PERSI SL on the government wide financial statements. 16. Long-term Obligations. Long-term debt is recognized as a liability of a governmental fund when due. For other long-term obligations, only that portion expected to be financed from expendable, available, financial resources is reported as a fund liability of a governmental fund. 17. Lease Accounting. The District is a lessee in multiple noncancelable operating and financing leases. If the contract provides the District the right to substantially all the economic benefits and the right to direct the use of the identified asset, it is considered to be or contain a lease. Right -of-use (ROU) assets and lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the expected lease term. The ROU asset is also adjusted for any lease prepayments made, lease incentives received, and initial direct costs incurred. The lease liability is initially and subsequently recognized based on the present value of its futu re lease payments. Variable payments are included in the present value when the underlying rate or index is fixed and predictable for the life of the lease. Variable costs that depend on an unpredictable index are accounted for as expenses as they are incurred. Increases (decreases) to variable lease payments due to subsequent changes in an index or rate are recorded as variable lease expense (income) in the future period in which they are incurred. The discount rate used is the implicit rate in the lease contract, if it is readily determinable, or the District’s incremental borrowing rate. The implicit rates of the District’s leases are not readily determinable and accordingly, the District has elected to use the State’s Diversified Bond Fund (DBF) portfolio rate. This rate is used to calculate the present value of future lease payments. This rate is an alternative investment rate for other than short-term investments and is materially the same as the rate the District might incur from an external lender. The ROU asset for operating leases is subsequently measured throughout the lease term at the amount of the remeasured lease liability (i.e., present value of the remaining lease payments), plus unamo rtized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received, and any impairment recognized. The ROU asset for finance leases is amortized on a straight -line basis over the lease term. For all underlying classes of assets, the District has elected to not recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement and do not include an option to purchase the underlying asset that the District is reasonably certain to exercise. Leases containing termination clauses in which either party may terminate the lease without cause and the notice period is less than 12 months are deemed short-term leases with lease costs included in short-term lease expense. The District recognizes short-term lease cost on a straight-line basis over the lease term. 23 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued In addition, under the new standard, the District has adopted a policy which evaluates the material nature of long-term leases as a group. For group calculations which fall below the policy threshold for recording, the District will not recognize the lease liability and ROU, and will instead expense these costs as incurred. Copier leases is one such group. 18. Net Position Flow Assumption. Sometimes the District will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. 19. Fund Balance Flow Assumptions. Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balances). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 20. Fund Balance. In the fund financial statements, governmental funds report aggregate amounts for five classifications of fund balances based on the constraints imposed on the use of these resources. The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form – prepaid items or inventories or (b) legally or contractually required to be maintained intact. The spendable portion of the fund balance comprises the remaining four classifications: restricted, committed, assigned, and unassigned. Restricted fund balance: This classification reflects the constraints imposed on resources either (a) externally by creditors, grantors, contributions, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. Committed fund balance: These amounts can only be used for the specific purposes determined by a formal action of the District’s highest level of decision-making authority. The School Board is the highest level of decision-making authority for the District that can, by board action prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the board resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. This classification also includes contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. Assigned fund balance: This classification reflects the amounts constrained by the District’s “intent” to be used for specific purposes but do not meet the criteria to be classified as restricted or committed. The School Board has by resolution authorized management to assign fund balance. The board may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriation in the subsequent year’s appropriated budget. Assigned fund balances include all remaining amounts (except negative balances) that are reported in governmental funds, other than the General Fund, that are not classified as nonspendable and are neither restricted nor committed. Unassigned fund balance: This fund balance is the residual classification for the General Fund. It is also used to report negative fund balances in other governmental funds. 24 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 21. Risk Management. The District is exposed to a considerable number of risks of loss, including: (a) damage to and loss of property and contents; (b) employee torts; (c) professional liability, i.e. errors and omissions; (d) environmental damage; (e) workers’ compensation, i.e. employee injuries; and (f) medical insurance costs of employees. Commercial policies, transferring the risks of loss, except for relatively small deductible amounts, are purchased for property and content damage, employee torts, and professional liabili ties. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. 22. Estimates. The preparation of financial statements in conformity with generally accepted accounting principles requires the District to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. 23. Reclassifications. Certain reclassifications have been made to the 2021 financial statement information to confirm to the 2022 classifications. 24. Recently Adopted Accounting Pronouncement. In June 2017, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 87, Leases. The statement enhances the relevance and consistency of reporting for the District's leasing activities by establishing requirements for lease accounting based on the principle that leases are financings of underlying right-to-use assets. A lessee is required to recognize a lease liability and intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and deferred inflow of resources. The District adopted this guidance retroactively for the year ended June 30, 2022. The adoption of this guidance did not affect beginning net position and, accordingly, restatement of beginning July 1, 2021, net position was not necessary. 25. Upcoming Accounting Pronouncements. GASB Statement No. 94 – Public/Private and Public/Public Partnership Arrangements: Issued to improve financial reporting related to public-private and public-public partnership arrangements (PPPs). Effective for the fiscal year ending June 30, 2023. GASB Statement No. 96 – Subscription Based Information Technology Arrangements: Issued to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users. Effective for the fiscal year ending June 30, 2023. GASB Statement No. 91, Conduit Debt Obligations: Issued May 2019, the objective of this statement is to provide for a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice. This statement is effective for the fiscal year ending June 30, 2023. GASB Statement No. 92 – Omnibus 2020: Issued to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature relative to certain GASB Statements. Effective for the fiscal year ending June 30, 2023. 25 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE B CASH AND INVESTMENTS At June 30, 2022, the carrying amount of District cash was $23,537,610 and the bank balance of the District’s deposits was as follows: Bank Balance Insured by Federal Depository Insurance 750,000 Insured by National Credit Union Share Insurance 250,000 Uninsured and uncollateralized 23,049,080 Totals 24,049,080 At June 30, 2022, the cost and fair market value of the District’s investments were as follows: Fair Market Average Deposit and investment type Cost Value Maturity Local Government Investment Pool -NAV 21,824,358 21,785,074 150 Days Total investments 21,824,358 21,785,074 Interest rate risk -The District manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio. Credit risk -The District’s deposits and investments at year end are limited to the Local Government Investment Pool, bank deposits, and certificates of deposits with various banks located in Idaho. The District has reduced its concentration of credit risk by using several financial institutions. Custodial credit risk -In the case of deposits, this is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. The District does not have a deposit policy for custodial credit risk. As of June 30, 2022, $23,049,080 of the District’s deposits and certificates of deposit were exposed to custodial credit risk because it was uninsured and uncollateralized. Of the investments, $21,785,074 was held in the Local Government Investment Pool which is not insured or guaranteed by the FDIC. The District has elected to invest in the LGIP through the Idaho State Treasurer. The Idaho State Treasurer provides oversight for investments by or through any department or institute of the State of Idaho. Amount s held by the LGIP were held in the following investments: government agency notes, commercial paper, corporate bonds, money markets, U.S. treasury notes, Idaho repurchase agreements, and purchased accrued interest. All investments for the LGIP are collateralized with securities held by the LGIP’s safekeeping agent in the LGIP’s name. The investments held by the LGIP are carried at cost, which is not materially different than fair value (determined by the Idaho State Treasurer’s office). These investments are subject to risk from market and interest rate fluctuations. Information necessary to determine the level of collateralization for the Local Government Investment Pool was unavailable. The Local Government Investment Pool is audited annually and the related financial statements and note disclosures are included in the State of Idaho’s Comprehensive Annual Financial Report, a copy of which can be downloaded from www.sco.idaho.gov. 26 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE C INTERFUND RECEIVABLES AND PAYABLES During the course of its operations, the District had numerous transactions between funds to finance operations, provide services, construct assets, and service debt. To the extent that certain transactions between funds had not been paid or received as of June 30, 2022, balances of interfund amounts receivable or payable have been recorded. The interfund balances at June 30, 2022, were as follows: Receivable Payable General Fund 2,580,219 Medicaid Fund 1,779,971 Nonmajor Funds 800,248 Total 2,580,219 2,580,219 The General Fund transferred $115,644 to Child Nutrition and $385,476 to Plant Facilities as required by State law. The federal programs transferred $85,500 to the General Fund as budgeted for payment of indirect costs. The driver’s ed program was discontinued, and all funds were transferred to the capital projects fund to repay assets purchased in past years amounting to $37,032. The General fund moved the wind energy (unrestricted) fund to fund 235 in the amount of $1,201,535. NOTE D PROPERTY TAXES In accordance with Idaho State Law, ad valorem property tax is levied in dollars in September for each calendar year. Taxes are recorded by the District using the modified accrual basis of accounting. Levies are made on the second Monday of September. All of the personal property tax and one-half of the real property tax are due on or before the 20th of December. The remaining one-half of the real property tax is due on or before June 20 the following year. Property taxes attach as an enforceable lien on property as of January 1 the following year. Notice of foreclosure is filed with the County Clerk on property three years from the date of delinq uency. The property tax revenue is budgeted for the ensuing fiscal year. Bonneville and Bingham Counties act as agents for the District in both the assessment and collection areas. The County remits tax revenues to the District periodically, with the majority of the collections being remitted in January and July. NOTE E CONSTRUCTION COMMITMENTS During the year ended June 30, 2022, the District contracted with various contractors to do certain projects, revisions, and additions. The following construction contracts were in progress at June 30, 2022: Expenditures Remaining Original bid Average Recorded Construction Project plus changes % complete Currently obligation Maintenance Shed @BCMS 56,777 70.4% 39,997 16,780 Total 56,777 39,997 16,780 27 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE F CAPITAL ASSETS Following is a summary of the capital assets at June 30, 2022: Capital assets, not being depreciated Elementary Secondary Construction in progress Balance at June 30, 2021 3,039,416 2,727,140 29,095,791 Additions 1,272,375 39,997 Deletions (166,089) Transfers (29,095,791) Balance at June 30, 2022 2,873,327 3,999,515 39,997 Total capital assets, not being depreciated 34,862,347 1,312,372 (166,089) (29,095,791) 6,912,839 Capital assets, being depreciated Buildings Elementary Secondary Administration Total buildings 72,265,772 108,822,586 4,761,530 185,849,888 1,336,596 1,336,596 0 29,095,791 29,095,791 72,265,772 139,254,973 4,761,530 216,282,275 Equipment Elementary Secondary Administration Total equipment 1,160,966 2,195,479 2,416,425 5,772,870 169,850 248,745 103,390 521,985 (46,457) (46,457) 0 1,330,816 2,444,224 2,473,358 6,248,398 Vehicles 9,344,714 420,936 (209,828) 0 9,555,822 Total capital assets, being depreciated 200,967,472 2,279,517 (256,285) 29,095,791 232,086,495 Less accumulated depreciation for: Buildings Equipment Vehicles (79,931,538) (4,031,886) (7,342,828) (6,440,753) (356,736) (550,411) 46,457 209,828 (86,372,291) (4,342,165) (7,683,411) Total accumulated depreciation (91,306,252) (7,347,900) 256,285 0 (98,397,867) Total capital assets being depreciated, net 109,661,220 (5,068,383) 0 29,095,791 133,688,628 Governmental activities capital assets, net 144,523,567 (3,756,011) (166,089) 0 140,601,467 Depreciation expense was charged to the functions of the primary government as follows: Governmental activities Instruction 6,515,712 Operations 281,777 Transportation 550,411 Total depreciation expense – governmental activities 7,347,900 28 11,15911 28 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE G GENERAL OBLIGATION BOND ISSUES The District had five general obligation bond issues (2012C, 2016A, 2016B, 2018 and 2021 Series) outstanding at the end of the year with interest rates ranging from 2.0 to 5.0 percent. The 2012C bond is scheduled to mature March 2023. The 2016A and 2016B bonds are scheduled to mature September 2033 and September 2028, respectively. The 2018 bond is scheduled to mature September 2035. The 2021 bond is scheduled to mature September 2028. Future debt service requirements are as follows: Fiscal Year Ended June 30, Total Interest Principal 2023 11,186,674 4,676,674 6,510,000 2024 11,176,800 4,376,800 6,800,000 2025 11,171,625 4,061,625 7,110,000 2026 11,159,800 3,729,800 7,430,000 2027 11,153,638 3,378,638 7,775,000 2028-2032 52,873,500 11,688,500 41,185,000 2033-2037 29,878,750 2,208,750 27,670,000 Total 138,600,787 34,120,787 104,480,000 Changes to bond principal payable and future interest payable are summarized as follows: 2012A 2012C 2016A 2016B 2018 Combined Principal Series Series Series Series Series 2021 Total Balances at July 1, 2021 11,780,000 2,160,000 48,330,000 17,245,000 28,905,000 -108,420,000 New Bonds 11,700,000 11,700,000 Reductions 11,780,000 1,060,000 960,000 1,840,000 15,640,000 Balances at June 30, 2022 0 1,100,000 47,370,000 15,405,000 28,905,000 11,700,000 104,480,000 Interest 2012A 2012C 2016A 2016B 2018 Combined Series Series Series Series Series 2021 Total Balance at July 1, 2021 5,305,450 New Bond Reductions 5,305,450 Balances at June 30, 2022 0 87,200 65,200 22,000 18,631,825 2,194,550 16,437,275 3,294,800 748,500 2,546,300 15,413,736 1,408,724 14,005,012 1,405,300 295,100 1,110,200 42,733,011 1,405,300 10,017,524 34,120,787 NOTE H DEBT REFUNDING In August of 2021, the District refinanced the 2012A Series bond. As part of this transaction, an escrow account was created for the purchase of securities that were placed in an irrevocable trust for the purpose of paying all future debt service payments of $12,738,136 of general obligation refunding bonds (2012A series) to reduce the debt obligations of the District. After also removing the premium on the bonds, the advanced refunding resulted in a total savings to the district (difference between the reacquisition price and the net present value of the old debt) of $3,194,796 and is recognized as a component of interest expense. As a result, the liability for the refunded bonds has been removed from the governmental activities on the Statement of Net Position. The outstanding principal on the refunded bond is $11,780,000 at June 30, 2022. 29 2018 4 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE I CHANGES IN LONG-TERM LIABILITIES Following is a summary of the changes in long-term debt for the year ended June 30, 2022: Current Balance Balance Portion July 1, 2021 Increases Decreases June 30, 2022 Balance Bonds payable 108,420,000 11,700,000 15,640,000 104,480,000 6,510,000 Premium on bonds 11,244,055 1,040,757 2,503,462 9,781,350 1,288,201 Total bonds/premium 119,664,055 12,740,757 18,143,462 114,261,350 7,798,201 OPEB 4,301,589 2,043,685 2,257,904 Compensated absences 260,081 4,178 255,903 255,903 Contracts payable* 91,919 25,420 66,499 21,765 Total 124,317,644 12,740,757 20,216,745 116,841,656 8,075,869 *The contracts payable category beginning balance was added due to a change in accounting treatment. Payment on the general obligation bonds are made by the Debt Service Fund from property taxes and state bond levy equalization funds. Employee benefits will be paid by the fund in which the employee is paid from. NOTE J LEGAL DEBT MARGIN The District is subject to a statutory limitation by the Idaho Code for bonded indebtedness payable principally from property taxes. The limit of bonded indebtedness is 5% of property market value for assessment purposes less the aggregate outstanding debt. At June 30, 2022, the limit for the District was 5% of $6,091,210,009 or $304,560,500. The Debt Service Fund had $14,813,039 available and the general obligation debt was $104,480,000 leaving a legal debt margin of $214,893,539. NOTE K LONG-TERM DEBT The District entered into a contract with Huntington Technology Finance, Inc. The arrangement commenced on June 10, 2020, and includes annual payments for five years with imputed interest totaling $114,889, which is equal to the cost of the capital asset received. Obligations of governmental activities under this contract as of June 30, 2022, were as follows: Total Year Principal Interest Payments 2023 21,765 1,215 22,980 2024 22,164 815 22,980 2025 22,570 411 22,980 66,499 2,441 68,940 NOTE L NON-MONETARY TRANSACTIONS The District received $413,812 in USDA Commodities during the 2021-2022 fiscal year. The commodities received are valued at the average wholesale price as determined by the distributing agency. All commodities received by the District were treated as revenue and expense of the fund receiving the commodities. 30 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE M PAYROLL EXPENDITURES AND RELATED LIABILITIES Teacher contracts were signed for the period September 2021 through June 2022, to be paid over the twelve months of September 2021 through August 2022. The financial statements reflect the salary expense for this period. The accrued payroll reflects the final two months of these contracts. NOTE N OTHER POST-EMPLOYMENT BENEFITS (OPEB) Plan Description. Bonneville Joint School District #93’s Employee Group Benefits Plan is a single-employer defined benefit healthcare plan administered by Blue Cross of Idaho. Blue Cross provides medical and prescription drug insurance benefits to eligible retirees and their eligible dependents. Blue Cross Dental and Willamette Dental provide dental insurance benefits to eligible retirees and their eligible dependents. As of June 30, 2020, the measurement date, there were 989 active participants and 25 inactive participants. A retiree who retires with the Public Employee Retirement System of Idaho (PERSI) is eligible to keep the District’s health insurance as a retiree until age 65, or until the retiree is eligible for coverage under Medicare. Retirement eligibility is determined based on a minimum of reaching age 55 with at least 5 years of membership with a PERSI employer. The retiree is on the same medical plan as the District’s active employees. Funding Policy. The contribution requirement of plan members is established by the District’s insurance committee in conjunction with our insurance provider. The required contribution is based on projected pay-as- you-go financing requirements. For fiscal year 2021, the District contributed approximately $217,378 for insurance premiums. Retirees are required to pay 100% of the premiums for both the retiree and the dependent coverage. Net Other Post-employment benefit Liability. The Net other post-employment benefit liability (NOL) was measured as of June 30, 2022, and the total other post-employment benefit liability was determined by an actuarial valuation as of June 30, 2022. Actuarial Methods and Assumptions. The District does not pre-fund benefits. The current funding policy is to pay benefits directly from general assets on a pay-as-you-basis and there is not a trust for accumulating plan assets. The following actuarial methods and assumptions were used in the June 30, 2022, accounting valuation: Valuation Timing Actuarial valuations are performed biennially as of July 1 for accounting purposes only. The most recent valuation was performed as of June 30, 2022. Actuarial Cost Method Entry Age Normal Inflation 2.50% Salary Increases 3.05% Discount Rate 3.50% Health Cost Trend Rates 7.00% decreasing to 6.5%, then decreasing by .10% per year down to 4.50%, and level thereafter. 31 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE N OTHER POST-EMPLOYMENT BENEFITS (OPEB), continued Retirement Based on PERSI for Teacher’s with 32% of males and 33% of females eligible at age 55, 36% of males and 32% of females first year eligible at age 60 and 36% of males and 44% of females eligible at age 65. Based on PERSI (General) with 20% of males and 19% of females eligible at age 55, 21% of males and 29% of females first year eligible at age 60, 31% of males and 36% of females eligible at age 65 and 14% Male and 18% females eligible at age 70. Turnover 40% of active employees currently electing coverage. 25% of future covered retirees are assumed to cover a spouse in retirement. Mortality General and Teacher Pub-2010 Mortality Tables adjusted for future mortality improvements using the fully generational MP-2021 projection scale from a base year of 2010. Total OPEB Liability June 30, 2022 Total OPEB liability 2,257,904 Covered employee payroll 56,355,247 Total OPEB liability as a % of covered employee payroll 4.01% The total OPEB liability was determined by an actuarial valuation as of the valuation date, calculated based on the discount rate and actuarial assumptions below, and was then projected forward to the measurement date. There have been no significant changes between the valuation date and the fiscal year end. Any significant changes during this period must be reflected as prescribed by GASB 75. Discount Rate Discount Rate* 3.50% *The discount rate was based on the average of multiple 6/30/20 municipal bond rate sources. Changes Since Prior Valuation None Changes in Total OPEB Liability Increase (Decrease) Total OPEB Changes in total OPEB liability Liability Balance as of June 30, 2021 4,301,589 Changes for the year: Service cost 545,698 Interest on total OPEB liability 101,373 Differences in experience (454,904) Changes of assumptions or other inputs (2,018,474) Benefit payments (217,378) Balance as of June 30, 2022 2,257,904 32 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE N OTHER POSTEMPLOYMENT BENEFITS (OPEB), continued Sensitivity Analysis The following presents the total OPEB liability of the school district, calculated using the discount rate of 3.50%, as well as what the school district’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (2.50%) or 1 percentage point higher (4.50%) than the current rate. 1% Decrease Discount Rate 1% Increase June 30, 2022 2.50% 3.50% 4.50% Total OPEB liability 2,415,778 2,257,904 2,108,842 The following presents the total OPEB liability of the school district, calculated using the current healthcare cost trend rates as well as what the school district’s total OPEB liability would be if it were calculated using trend rates that are 1 percentage point lower or 1 percentage point higher than the current trend rates. 1% Decrease Current Trend Rate 1% Increase (6.0% decreasing (7.0% decreasing to 8.0% decreasing June 30, 2022 to 3.5%) 4.5%) to 5.5%) Total OPEB liability 2,021,197 2,257,904 2,538,104 OPEB Expense July 1, 2021 to June 30, 2022 Service cost 545,698 Interest on total OPEB liability 101,373 Recognition of experience gains and losses (103,392) Recognition of assumption changes or inputs (2,43,949) OPEB expense 299,730 Other Post-Employment Benefits Expense and Deferred Outflows of Resources and Deferred Inflows for Resources Related to Other Post-employment Benefits Schedule of Deferred Inflow/Outflows of Resources Original Deferred Deferred Original Date Recognition Amount Inflow of Outflow of Amount Established Period Recognized Resources Resources Differences between expected and actual experience/changes in assumptions (115,858) June 30, 2018 15.36 (7,542) (220,617) 134,931 Changes of assumptions or other inputs 137,467 June 30, 2019 14.53 9,461 -109,084 Differences between expected and actual experience/changes in assumptions (1,213,590) June 30, 2020 15.34 (79,112) (1,055,366) - Changes of assumptions or other inputs 67,752 June 30, 2021 14.50 4,673 -63,079 Differences between expected and actual experience/changes in assumptions (2,473,378) June 30, 2022 9 (274,820) (2,198,558) - Total (3,597,607) (347,340) (3,474,541) 307,094 33 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE N OTHER POSTEMPLOYMENT BENEFITS (OPEB), continued Amounts currently reported as deferred outflows of resources and deferred inflows of resources related to other post-employment benefits will be recognized in OPEB expense as follows: Year Ending June 30: 2023 (347,341) 2024 (347,341) 2025 (347,341) 2026 (347,341) 2027 (347,341) Thereafter (1,430,742) *Note that additional future deferred inflows and outflows of resources may impact these numbers. NOTE O PERSI SICK LEAVE INSURANCE RESERVE FUND The District contributes to the Sick Leave Insurance Reserve Fund (Sick Leave Plan) which is a cost -sharing multiple-employer defined benefit OPEB plan that covers members receiving retirement benefits that are administered by PERSI that covers substantially all employees of the State of Idaho, its agencies and various participating political subdivisions. The cost to administer the plan is financed through the contributions and investment earnings of the plan. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for the Sick Leave Plan. That report may be obtained on the PERSI website at www.persi.idaho.gov. Responsibility for administration of the Sick Leave Plan is assigned to the Board comprised of five members appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members with at least ten years of service and three members who are Idaho citizens not members of the Base Plan except by reason of having served on the Board. OPEB Benefits Group retiree health, dental, accident, and life insurance premiums may qualify as a benefit. Retirees who have a sick leave account can use their balance as a credit towards these premiums paid directly to the applicable insurance company. Employer Contributions The contribution rate for employers are set by statute at .065% of covered compensation for state members. Covered school members contribution rates are set by statute based on the number of sick days offered by the employer. The contribution rate of 1.16% for school members with nine or ten sick days, 1.26% for school members with 11-14 sick days. If a school member has more than 14 days of sick leave, then the contribution rate will be set by the PERSI Retirement Board based on current cost and actuarial data and reviewed annually. PERSI did not require any District contributions after December of 2019. The District contributions were $0 for the year ended June 30, 2022 as contributions were suspended on January 1, 2020. OPEB Liabilities, OPEB Expense (Expense Offset), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB 34 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE O PERSI SICK LEAVE INSURANCE RESERVE FUND, continued At June 30, 2022, the District reported an asset for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2021, and the total OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation as of that date. The District’s proportion of the net OPEB asset was based on the District’s share of contributions relative to the total contributions of all participating Sick Leave employers. At June 30, 2021, the District’s proportion was 3.5226265 percent. For the year ended June 30, 2022, the District recognized OPEB expense offset of $0. The $0 reported as deferred outflows of resources related to OPEBs resulting from Employer contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB asset in the year ending June 30, 2022. At June 30, 2022, the District reported deferred outflows of resources and deferred inflows of resources related to PERSI OPEB sick leave from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience 729,911 - Changes in assumptions or other inputs 600,836 969,111 Net difference between projected and actual earnings on OPEB plan investments -1,367,509 District contributions subsequent to the measurement date -- Total 1,330,747 2,336,620 Actuarial Assumptions Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. The Sick Leave Plan amortizes any net OPEB asset based on a level percentage of payroll. The maximum amortization period for the Sick Leave Plan permitted under Section 59-1322, Idaho Code, is 25 years. The total OPEB liability in the June 30, 2021, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.30% Salary increases including inflation 3.05% Investment rate of return 5.45%, net of investment fees The long-term expected rate of return on OPEB plan investments was determined using the building block approach and a forward-looking model in which best estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expect ed inflation. The health care trend rate is not applicable as the benefit amount a participant will receive is established with a set amount upon retirement thus would have no impact. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions in analyzing t he System’s asset allocation. The assumptions and the System’s formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System’s assets. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. 35 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE O PERSI SICK LEAVE INSURANCE RESERVE FUND, continued Capital Market Assumptions Long-Term Long-Term Expected Expected Nominal Rate Real Rate of Target of Return Return Asset Class Allocation (Arithmetic) (Arithmetic) Core Fixed Income 50.00% 2.80% (.20)% Broad U.S. Equity 39.30% 8.00% 6.00% Developed Foreign Equities 10.70% 8.25% 6.25% Assumed Inflation – Mean 2.00% 2.00% Assumed Inflation – Standard Deviation 1.50% 1.50% Portfolio Arithmetic Mean Return 6.18% 4.18% Portfolio Standard Deviation 12.29% 12.29% Portfolio Long-Term (Geometric) Expected Rate of Return 5.55% 3.46% Assumed Investment Expenses 0.40% 0.40% Portfolio Long-term (Geometric) Expected Rate of Return, Net of Investment Expenses 5.15% 3.06% Investment Policy Assumptions from PERSI November 2019 Portfolio Long-term Expected Real Rate of Return, Net of Investment Expenses 4.14% Portfolio Standard Deviation 14.16% Economic/Demographic Assumptions from Milliman 2018 Valuation Assumptions Chosen by PERSI Board Long-term Expected Real Rate of Return, Net of Investment Expenses 3.15% Assumed Inflation 2.30% Long-Term Expected Geometric Rate of Return, Net of Investment Expenses 5.45% Discount Rate The discount rate used to measure the total OPEB liability was 5.45%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on these assumptions, the OPEB plan’s net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. The long-term expected rate of return was determined net of OPEB plan investment expense but without reduction for OPEB plan administrative expense. Sensitivity of the net OPEB asset to changes in the discount rate. The following presents the Employer's proportionate share of the net OPEB asset calculated using the discount rate of 5.45 percent, as well as what the Employer's proportionate share of the net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower (4.45 percent) or 1-percentage-point higher (6.45 percent) than the current rate: Current 1% Discount 1% Decrease Rate Increase (4.45%) (5.45%) (6.45%) Employer’s proportionate share of the net OPEB liability (asset) (4,439,131) (5,115,573) (5,747,413) 36 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE O PERSI SICK LEAVE INSURANCE RESERVE FUND, continued OPEB plan fiduciary net position Detailed information about the OPEB plan's fiduciary net position is available in the separately issued PERSI financial report. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Payables to the OPEB plan At June 30, 2022, the District reported no payables to the defined benefit OPEB plan for legally required employer contributions and for legally required employee contributions which had been withheld from employee wages but not yet remitted to PERSI. NOTE P PENSION PLAN Plan Description The District contributes to the Base Plan which is a cost sharing multiple-employer defined benefit pension plan administered by Public Employee Retirement System of Idaho (PERSI or System) that covers substantially all employees of the State of Idaho, its agencies, and various participating political subdivisions. The cost to administer the plan is financed through the contributions and investment earnings of the plan. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Responsibility for administration of the Base Plan is assigned to the Board comprised of five members appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members with at least ten years of service and three members who are Idaho citizens not members of the Base Plan except by reason of having served on the Board. Pension Benefits The Base Plan provides retirement, disability, death, and survivor benefits for eligible members or beneficiaries. Benefits are based on members’ years of service, age, and highest average salary. Members become fully vested in their retirement benefits with five years of credited service (5 months for elected or appointed officials). Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. The annual service retirement allowance for each month of credited service is 2.0% (2.3% for police/firefighters) of the average monthly salary for the highest consecutive 42 months. The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature. The Base Plan is required to provide a 1% minimum cost of living increase per year provided the Consumer Price Index increases 1% or more. The PERSI Board has the authority to provide higher cost of living increases to a maximum of the Consumer Price Index movement or 6%, whichever is less; however, any amount above the 1% minimum is subject to review by the Idaho Legislature. 37 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE P PENSION PLAN, continued Member and Employer Contributions Member and employer contributions paid to the Base Plan are set by statute and are established as a percent of covered compensation and earnings from investments. Contribution rates are determined by the PERSI Board within limitations, as defined by state law. The Board may make periodic changes to employer and employee contribution rates (expressed as percentages of annual covered payroll) if current rates are actuarially determined to be inadequate or in excess to accumulate sufficient assets to pay benefits when due. The contribution rates for employees are set by statute at 60% of the employer rate for general employees and 72% for police and firefighters. As of June 30, 2021, it was 7.16% for general employees and 9.13% for police and firefighters. The employer contribution rate as a percent of covered payroll is set by the Retirement Board and was 11.94% general employees and 12.28% for police and firefighters. The District’s contributions were $7,525,075 for the year ended June 30, 2022. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2022, the District reported a liability for its proportionate sh are of the net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The District proportion of t he net pension liability was based on the District’s share of contributions in the Base Plan pension plan relative to the total contributions of all participating PERSI Base Plan employers. At June 30, 2021, the District’s proportion was 1.60497 percent. For the year ended June 30, 2022, the District recognized pension expense of $7,180,160. At June 30, 2022, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Inflows Outflows of of Resources Resources Differences between expected and actual experience 1,867,593 736,799 Changes in assumptions or other inputs 14,550,095 - Net difference between projected and actual earnings on pension plan investments -39,813,469 Changes in the employer’s proportion and differences between the employer’s contribution and the employer’s proportionate contributions (1,532,754) - District contributions subsequent to the measurement date 7,525,075 - Total 22,410,009 40,550,268 $7,525,075 reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. The average of the expected remaining service lives of all employees that are provided with pensions through the System (active and inactive employees) determined at July 1, 2020, the beginning of the measurement period ended June 30, 2020, is 4.7 years and 4.6 years for the measurement period ended June 30, 2021. 38 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE P PENSION PLAN, continued Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense (revenue) as follows: Year ended June 30: 2022 (6,030,583) 2023 (5,722,947) 2024 (4,840,313) 2025 (9,071,491) Actuarial Assumptions Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present value of the projected benefits of each individual included in the actuarial valuation is allocated as a level percentage of each year’s earnings of the individual between entry age and assumed exit age. The Base Plan amortizes any unfunded actuarial accrued liability based on a level percentage of payroll. The maximum amortization period for the Base Plan permitted under Section 59-1322, Idaho Code, is 25 years. The total pension liability in the June 30, 2021, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.30% Salary increases including inflation 3.05% Investment rate of return 6.35%, net investment expenses Cost-of-living adjustments 1.00% Mortality rates were based on the RP – 2000 combined table for healthy males or females as appropriate with the following offsets: • Set back 3 years for teachers • No offset for male fire and police • Forward one year for female fire and police • Set back one year for all general employees and all beneficiaries Assumptions used to calculate the enclosed figures are described in our 2021 Experience Study. The Total Pension Liability as of June 30, 2021 is based on the results of an actuarial valuation date July 1, 2021. The long-term expected rate of return on pension plan investments was determined using the building block approach and a forward-looking model in which best estimate rates or expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions in analyzing the System’s asset allocation. The assumptions and the System’s formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System’s assets. 39 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE P PENSION PLAN, continued The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of 2021 Capital Market Assumptions Asset Class Target Allocation Core Fixed Income 30.00% Broad U.S. Equity 55,00% Developed Foreign Equities 15.00% Long-Term Expected Nominal Rate of Return (Arithmetic) 1.8% 8.00% 8.25% Long-Term Expected Real Rate of Return (Arithmetic) (.20)% 6.00% 6.25% Assumed Inflation – Mean Assumed Inflation – Standard Deviation 2.00% 1.50% 2.00% 1.50% Portfolio Arithmetic Mean Return Portfolio Standard Deviation 6.18% 12.29% 4.18% 12.29% Portfolio Long-Term (Geometric) Expected Rate of Return Assumed Investment Expenses Portfolio Long-term (Geometric) Expected Rate of Return, Net of Investment Expenses 5.55% 0.40% 5.15% 3.46% 0.40% 3.06% Investment Policy Assumptions from PERSI November 2019 Portfolio Long-term Expected Real Rate of Return, Net of Investment Expenses 4.14% Portfolio Standard Deviation 14.16% Economic/Demographic Assumptions from Milliman 2018 Valuation Assumptions Chosen by PERSI Board Long-term Expected Real Rate of Return, Net of Investment Expenses 4.05% Assumed Inflation 3.00% Long-Term Expected Nominal Rate of Return, Net of Investment Expenses 6.35% Discount Rate The discount rate used to measure the total pension liability was 6.35%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on these assumptions, the pension plans’ net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the l ong-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. The long-term expected rate of return was determined net of pension plan investment expense but without reduction for pension plan administrative expense. 40 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2022 NOTE P PENSION PLAN, continued Sensitivity of the employer’s proportionate share of the net pension liability to changes in the discount rate. The following presents the employer’s proportionate share of the net pension liability calculated using the discount rate of 6.35 percent, as well as what the employer’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.35 percent) or 1-percentage-point higher (7.35 percent) than the current rate: 1% Current Decrease Discount 1% Increase (5.35%) Rate (6.35%) (7.35%) Employer’s proportionate share of the net pension liability (asset) 44,063,510 (1,267,573) (38,426,370) Pension plan fiduciary net position Detailed information about the pension plan’s fiduciary net position is available in the separately issued PERSI financial report. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Payables to the pension plan At June 30, 2022, the District reported no payables to the defined benefit pension plan for legally required employer contributions and for legally required employee contributions which had been withheld from employee wages but not yet remitted to PERSI. NOTE Q COMMITMENTS AND CONTINGENCIES Due to continuing effects of the novel coronavirus (COVID-19) pandemic, the District's budget for fiscal year 2022 has been negatively impacted. Additional costs have been incurred for transitioning to new learning methodologies and adapting current facilities resulting in a negative impact to the District. The District cannot reasonably estimate the future impact of the economic changes as a result of the pandemic. NOTE R SUBSEQUENT EVENTS Management of the District evaluated subsequent events through October 11, 2022, which was the date the financial statements were available to be issued. There were no events identified by management that were required to be disclosed in these financial statements. 41 REQUIRED FINANCIAL INFORMATION Original 0 0 Bonneville Joint School District #93 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance -Budget to Actual- Fiscal Year Ended June 30, 2022 Favorable Original Final (Unfavorable) REVENUES Budget Budget Actual Variance Property taxes 5,972,008 5,800,000 5,884,181 84,181 Penalties and interest on delinquent taxes 25,000 25,000 36,409 11,409 Earnings on investments (20,243) (20,243) Tuition 50,000 50,000 55,593 5,593 Rental 26,016 26,016 56,952 30,936 Other local 438,925 451,837 647,574 195,737 State apportionment Base 63,003,871 64,327,472 64,462,386 134,914 Transportation 2,700,000 2,957,462 2,976,571 19,109 Exceptional child 25,000 25,000 129,938 104,938 Benefits 8,652,916 8,788,456 8,789,538 1,082 Property tax replacement 248,027 248,027 252,509 4,482 Other state revenue 4,711,023 4,936,180 5,117,844 181,664 Total revenues 85,852,787 87,635,450 88,389,252 753,802 EXPENDITURES Instruction Elementary 23,625,774 22,655,664 21,845,259 810,405 Secondary 22,487,002 23,128,867 22,615,345 513,522 Alternative school 756,470 696,611 687,623 8,988 Special education program 4,594,778 7,921,212 8,051,876 (130,664) Special education preschool program 319,511 303,808 307,698 (3,890) Gifted and talented 320,699 379,173 334,041 45,132 Interscholastic program 1,216,349 1,216,158 1,222,787 (6,629) School activity 228,508 228,141 245,951 (17,810) Total instruction 53,549,091 56,529,632 55,310,580 1,219,052 Support services Attendance, guidance, and health 3,067,096 3,276,100 3,304,332 (28,232) Special education support services 5,976,966 3,461,105 2,343,058 1,118,047 Instructional improvement 1,977,375 2,601,873 2,503,954 97,919 Educational media 858,359 909,658 950,246 (40,588) Instruction related technology 110,000 1,615,888 1,380,629 235,259 Total support services 11,989,796 11,864,623 10,482,219 1,382,404 See Independent Auditor's Report. 42 (Unfavorable) Original 0 Bonneville Joint School District #93 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance -Budget to Actual- Fiscal Year Ended June 30, 2022 Favorable Original Final (Unfavorable) EXPENDITURES, continued Budget Budget Actual Variance Administration Board of Education 336,077 397,596 331,851 65,745 District administration 379,236 385,083 342,173 42,910 School administration 6,793,799 5,893,763 6,141,207 (247,444) Total administration 7,509,112 6,676,442 6,815,231 (138,789) Business Administrative Services Business operations 1,846,810 2,022,370 1,746,256 276,114 Central services 218,026 218,515 160,254 58,261 Administrative Technology Services 40,000 40,000 16,934 23,066 Total business administrative services 2,104,836 2,280,886 1,923,444 357,442 Operations Building care (custodial) 2,697,031 4,587,178 4,762,298 (175,120) Maintenance 2,925,210 3,210,919 2,637,978 572,941 Security 511,513 514,685 504,453 10,232 Total operations 6,133,754 8,312,783 7,904,729 408,054 Transportation 4,200,646 4,306,047 4,270,278 35,769 Community services 124,502 157,399 162,876 (5,477) Facility acquisition 322,086 322,086 0 Total expenditures 85,611,736 90,449,899 87,191,443 3,258,456 Revenues over (under) expenditures 241,050 (2,814,449) 1,197,809 4,012,258 OTHER FINANCING SOURCES (USES) Operating transfers, net (454,342) (1,659,535) (1,617,155) 42,380 Contingency - budget only (3,035,797) (2,909,644) 2,909,644 Revenues and other financing sources over (under) expenditures (3,249,089) (7,383,628) (419,346) 6,964,282 Fund balance - July 1, 2021 7,383,628 Fund balance - June 30, 2022 6,964,282 See Independent Auditor's Report. 43 Original 0 Bonneville Joint School District #93 Medicaid Fund Statement of Revenues, Expenditures, and Changes in Fund Balance -Budget to Actual- Fiscal Year Ended June 30, 2022 REVENUES Other local Other state revenue Original Budget 850,000 2,700,000 Final Budget 850,000 3,843,492 Actual 5,896,533 Favorable (Unfavorable) Variance (850,000) 2,053,041 Total revenues 3,550,000 4,693,492 5,896,533 1,203,041 EXPENDITURES Instruction Support services 972,880 2,577,120 1,431,461 3,262,031 1,585,526 4,311,007 (154,065) (1,048,976) Total expenditures 3,550,000 4,693,492 5,896,533 (1,203,041) Revenues and other financing sources over (under) expenditures 0 0 0 2,406,082 Fund balance - July 1, 2021 0 Fund balance - June 30, 2022 0 See Independent Auditor's Report. 44 Bonneville Joint School District #93 Required Supplementary Information Fiscal Year Ended June 30, 2022 Schedule of Changes in Total OPEB Liability and Related Ratios As of the measurement date of June 30, 2022 2022 2021 2020 2019 2018 Total OPEB Liability Service cost 545,698 548,323 513,403 512,500 456,245 Interest on total OPEB liabilty 101,373 109,465 168,399 147,380 149,723 Differences in experience (454,904) -(512,762) -(298,301) Effect of assumption changes or inputs (2,018,474) 67,752 (700,828) 137,467 182,443 Expected benefit payments (217,378) (202,290) (246,776) (197,261) (176,160) Net change in total OPEB liability (2,043,685) 523,250 (778,564) 600,086 313,950 Total OPEB liability, beginning 4,301,589 3,778,339 4,556,903 3,956,817 3,642,867 Total OPEB liability, ending 2,257,904 4,301,589 3,778,339 4,556,903 3,956,817 Covered valuation payroll 56,355,247 45,100,125 43,470,000 45,056,550 43,428,000 Total OPEB liability as a % of covered valuation payroll 4.01% 9.54% 8.69% 10.11% 9.11% * GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the District will present information for those years for which information is available. See Independent Auditor's Report. 45 0 0 0 0 0 0 Bonneville Joint School District #93 Required Supplementary Information Fiscal Year Ended June 30, 2022 Schedule of Employer's Share of Net OPEB Asset PERSI-Sick Leave Plan Last 10 - Fiscal Years* 2021 2020 2019 2018 2017 Employer's portion of net OPEB asset 3.5226265% 3.5226265% 3.6101186% 3.3965902% 3.1983609% Employer proportionate share of the net OPEB asset 5,115,573 4,337,431 3,457,786 2,817,300 2,455,155 Employer's covered-employee payroll 59,855,707 54,260,793 51,263,509 45,756,462 40,809,784 Employer's proportional share of the net OPEB asset as a percentage of its covered-employee payroll 8.547% 7.994% 6.745% 6.157% 6.016% Plan fiduciary net position as a percentage of the total OPEB asset 152.61% 152.87% 138.51% 135.69% 136.78% * GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the District will present information for those years for which information is available. Data reported is measured as of June 30, 2020 (measurement date). Schedule of Employer Contribution PERSI-Sick Leave Plan Last 10-Fiscal Years * 2022 2021 2020 2019 2018 Statutorily required contribution 157,357 594,657 530,775 Contributions in relation to the statutorily required contribution 316,207 592,204 529,753 Contribution (deficiency) excess 158,851 (2,453) (1,022) Employer's covered payroll 63,024,076 59,855,707 54,260,793 51,263,509 45,756,462 Contributions as a percentage of covered payroll 0.000% 0.000% 0.580% 1.160% 1.160% * GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the District will present information for those years for which information is available. Data reported is measured as of June 30, 2021 (reporting date). See Independent Auditor's Report. 46 Bonneville Joint School District #93 Required Supplementary Information Fiscal Year Ended June 30, 2022 Schedule of Employer's Share of Net Pension Liability PERSI-Base Plan Last 10-Fiscal Years * 2021 2020 2019 2018 2017 2016 2015 2014 Employer's portion of net pension liability 1.60497000% 1.52377110% 1.50930670% 1.41939760% 1.31157080% 1.30930460% 1.313797300% 1.289265200% Employers proportionate share of the net pension liability -1,267,573 35,383,980 17,228,315 20,936,362 20,615,640 26,541,615 17,300,573 9,491,010 Employer's covered payroll 59,855,707 54,260,793 51,263,509 45,756,462 40,809,784 38,322,048 36,799,863 34,937,428 Employer's proportional share of the net pension liability as a percentage of its covered payroll -2.12% 65.21% 33.61% 45.76% 50.52% 69.26% 47.01% 27.17% Plan fiduciary net position as a percentage of the total pension liability 100.36% 88.22% 93.79% 91.69% 90.68% 87.26% 91.38% 94.95% * GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the District will present information for those years for which information is available. Data reported is measured as of June 30, 2021 (measurement date). Schedule of Employer Contributions PERSI-Base Plan Last 10-Fiscal Years * 2022 2021 2020 2019 2018 2017 2016 2015 Statutorily required contribution 7,525,075 7,146,771 6,478,739 5,803,029 5,179,631 4,619,668 4,338,056 4,165,744 Contributions in relation to the statutorily required contribution 7,525,075 7,146,773 6,478,608 5,803,027 5,179,635 4,619,665 4,338,975 4,165,658 Contribution (deficiency) excess 0 2 (131) (2) 4 (3) 919 (86) Employer's covered payroll 63,024,076 59,855,707 54,260,793 51,263,509 45,756,462 40,809,784 38,322,048 36,799,863 Contributions as a percentage of covered-payroll 11.9400% 11.9400% 11.9398% 11.3200% 11.3200% 11.3200% 11.3224% 11.3198% * GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the District will present information for those years for which information is available. Data reported is measured as of June 30, 2022 (reporting date). See Independent Auditor's Report. 47 Bonneville Joint School District #93 Notes to Required Supplementary Information Fiscal Year Ended June 30, 2022 NOTE A BUDGET ADOPTION Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the General Fund. All annual appropriations lapse at year end. See Independent Auditor's Report. 48 This page intentionally left blank. OTHER FINANCIAL INFORMATION 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bonneville Joint School District #93 All Nonmajor Funds Combining Balance Sheet June 30, 2022 Child Nutrition Federal Forest E-rate Special Projects Student Activities Driver's Ed Professional Technical Public School Technology Idaho Substance Abuse ESSER III Improving Basic Programs ESSER I Migrant Education ESSER II IDEA School-Age IDEA Preschool IDEA ARPA Title IV Perkins III Professional Technical Title III Supporting Effective Instruction COVID Relief Premium Pay Bonneville Education Foundation Construction Funds All Nonmajor Funds ASSETS Cash and investments 2,856,319 236,591 453,539 2,566,901 2,175,549 0 1,133,753 1,145,632 298,592 0 2,096,038 12,962,914 Federal grants/contracts 47,519 233,024 689,015 258 15,359 277,031 12,948 2,278 126,733 15,743 91,978 1,511,886 Other receivables 103,800 106 0 425 0 46,552 1,548 152,431 Supplies inventory 159,376 159,376 Total assets 3,063,214 236,591 453,539 2,670,701 2,175,655 0 1,133,753 1,145,632 298,592 233,024 689,015 258 15,359 0 277,031 12,948 2,278 0 126,733 15,743 92,403 0 0 46,552 2,097,586 14,786,607 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable 144,236 0 22,915 97,113 46,411 6,667 1,023 1,347 0 75 0 0 15,296 0 85 1,055 336,223 Accrued wages 188,248 8,198 83,967 197,967 6,532 175,503 7,467 5,264 23,172 696,318 Accrued employee benefits 96,658 0 1,695 16,917 61,298 2,966 0 101,528 4,885 0 1,128 4,676 0 291,751 Interfund payable Total liabilities 429,142 0 0 22,915 97,113 0 56,304 0 6,667 131,117 233,024 428,403 689,015 258 258 5,786 15,359 0 277,031 596 12,948 2,278 2,278 0 126,733 126,733 9,351 15,743 49,259 92,403 0 0 46,467 46,552 1,055 800,248 2,124,540 FUND EQUITY Nonspendable Restricted Total fund equity Total liabilities and fund equity 159,376 2,474,696 2,634,072 3,063,214 236,591 236,591 236,591 453,539 453,539 453,539 2,647,786 2,647,786 2,670,701 2,078,542 2,078,542 2,175,655 0 0 1,077,449 1,077,449 1,133,753 1,145,632 1,145,632 1,145,632 291,925 291,925 298,592 0 233,024 0 689,015 0 258 0 15,359 0 0 0 277,031 0 12,948 0 2,278 0 0 0 126,733 0 15,743 0 92,403 0 0 0 0 0 46,552 2,096,531 2,096,531 2,097,586 159,376 12,502,691 12,662,067 14,786,607 See Independent Auditor's Report. 49 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 - 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bonneville Joint School District #93 All Nonmajor Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance Fiscal Year Ended June 30, 2022 Child Nutrition Federal Forest E-rate Special Projects Student Activities Driver's Ed Professional Technical Public School Technology Idaho Substance Abuse ESSER III Improving Basic Programs ESSER I Migrant Education ESSER II IDEA School-Age IDEA Preschool IDEA ARPA Title IV Perkins III Professional Technical Title III Supporting Effective Instruction COVID Relief Premium Pay Bonneville Education Foundation Construction Funds All Nonmajor Funds REVENUES Earnings on investments 2,110 0 0 0 911 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (15,682) (12,661) Food service 39,682 39,682 Other local 3,734 791,569 1,309,739 3,428,555 0 0 41,242 5,574,839 Other state revenue 427,852 1,011,461 160,204 1,599,517 Federal grants and contracts 5,783,189 45,749 0 1,628,958 1,614,620 71,549 66,731 2,389,307 1,694,690 70,149 2,318 148,978 126,733 81,147 340,461 512,088 1,456,977 16,033,644 Total revenues 5,828,715 45,749 791,569 1,309,739 3,429,466 0 427,852 1,011,461 160,204 1,628,958 1,614,620 71,549 66,731 2,389,307 1,694,690 70,149 2,318 148,978 126,733 81,147 340,461 512,088 1,456,977 41,242 (15,682) 23,235,021 EXPENDITURES Instruction Elementary 11,325 41,113 0 0 776,890 720,855 0 554,332 0 99,492 52,252 97,744 361,971 6,559 0 2,722,533 Secondary 581,560 18,718 138,919 9,103 541,533 24,099 19,503 363,826 34,483 1,731,744 Alternative school 473 --0 0 2,004 0 -15,812 0 0 2,076 11,885 0 0 32,250 Interscholastic program 2,401 1,193 3,594 Special education program -0 0 163,400 0 -0 1,561,170 -0 136,873 131,296 0 0 1,992,739 Special ed preschool program School activity Summer school Vocational Support services Attendance, guidance, and health Special ed support services Instructional improvement Educational media Instructional related technology School administration Business Administrative Services Operations Transportation Community services Noninstructional services Student Activities Facility acquisition Total expenditures Revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total other financing sources 4,861,266 4,861,266 967,449 115,644 (57,500) 58,144 8,679 8,679 37,070 0 100,567 693,452 98,117 0 0 0 593 1,000 47,265 10,500 32,800 145 6,214 0 7,618 22,930 189,369 1,120,370 1,201,535 1,201,535 3,098,580 3,098,580 330,886 0 0 0 (37,032) (37,032) 426,034 7,152 17,045 21,482 3,995 475,708 (47,856) 0 0 0 0 1,157,443 0 0 0 0 1,157,443 (145,982) 0 0 0 0 0 0 224,354 0 0 0 224,354 (64,150) 0 338 2,371 1,594 507,466 4,145 338 809 15,110 8,419 4,754 1,628,958 0 0 59,655 0 19,707 768,104 9,196 0 0 0 0 0 1,586,620 28,000 (28,000) (28,000) 10,505 16,628 42,209 0 2,207 0 0 71,549 0 0 14,239 52,492 66,731 0 0 0 7,271 8,556 0 371,319 16,305 50,411 823,768 0 0 0 2,389,307 0 0 64,731 0 0 68,789 0 0 0 0 0 0 1,694,690 0 0 70,149 70,149 0 0 2,318 2,318 0 0 0 0 49,486 0 0 0 0 0 148,978 0 0 126,733 126,733 0 0 4,796 81,147 0 0 340,461 340,461 0 0 3,291 0 12,943 15,525 2,430 15,186 0 35,260 12,445 55,896 50,536 1,487 50,893 0 512,088 0 0 13,981 0 67,071 57,039 23,612 29,807 23,963 95,530 22,786 102,013 71,432 2,251 77,321 0 1,456,977 0 0 0 0 0 200 0 0 0 0 0 41,242 0 0 0 0 0 0 0 0 0 3,058,050 3,058,050 (3,073,732) 0 152,490 8,679 73,894 552,767 172,953 154,821 1,767,400 69,034 1,745,684 168,577 86,596 1,233,557 130,387 3,738 5,001,852 3,098,580 3,080,980 23,984,849 (749,828) 1,317,179 (122,532) 1,194,647 over (under) expenditures and other financing sources (uses) 1,025,593 37,070 98,117 2,321,905 330,886 (37,032) (47,856) (145,982) (64,150) (3,073,732) 444,819 Revenues and other financing sources Fund balance - July 1 2021 1,608,479 199,521 355,422 325,881 1,747,656 37,032 1,125,305 1,291,614 356,075 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5,170,263 12,217,248 Fund balance - June 30, 2022 2,634,072 236,591 453,539 2,647,786 2,078,542 0 1,077,449 1,145,632 291,925 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,096,531 12,662,067 See Independent Auditor's Report. 50 This page intentionally left blank. Bonneville Joint School District #93 Schedule of Taxes Receivable Fiscal Year Ended June 30, 2022 General Fund Debt Service Fund Capital Projects Fund 2020 2020 2020 Total 2021 and prior Total 2021 and prior Total 2021 and prior Unearned balance at July 1, 2020 245,869 0 245,869 379,181 0 379,181 110,708 0 110,708 ADDITIONS 2020 roll charges 5,831,737 5,831,737 10,054,717 10,054,720 2,814,592 2,814,593 Subsequent additions and cancellations (10,803) (4,777) (6,026) (30,861) (22,285) (8,576) (7,967) (5,509) (2,458) Total additions 5,820,934 5,826,960 (6,026) 10,023,856 10,032,435 (8,576) 2,806,625 2,809,084 (2,458) DEDUCTIONS Collections received 3,903,623 3,714,424 189,199 6,683,323 6,400,496 282,827 1,875,673 1,792,140 83,533 Current amount due on taxes collected by the counties 1,986,291 1,977,217 9,074 3,421,832 3,408,997 12,835 958,181 954,517 3,664 Total deductions 5,889,914 5,691,641 198,273 10,105,155 9,809,493 295,662 2,833,854 2,746,657 87,197 Unearned balance at June 30, 2021 176,889 135,319 41,570 297,882 222,942 74,943 83,479 62,427 21,053 See Independent Auditor's Report. 51 This page intentionally left blank. Annual Federal Compliance Section Bonneville Joint School District #93 June 30, 2022 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 ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Trustees Bonneville Joint School District #93 Idaho Falls, Idaho We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Bonneville Joint School District #93 (the District), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated October 11, 2022. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Bonneville Joint School District #93’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Bonneville Joint School District #93’s internal control. Accordingly, we do not express an opinion on the effectiveness of Bonneville Joint School District #93’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether Bonneville Joint School District #93’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 52 Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Wipfli LLP CPAs and Consultants Idaho Falls, Idaho October 11, 2022 53 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Board of Trustees Bonneville Joint School District #93 Idaho Falls, Idaho Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited Bonneville Joint School District #93’s compliance with the types of compliance requirements identified as subject to audit in the (OMB) Compliance Supplement that could have a direct and material effect on each of Bonneville Joint School District #93’s (the District) major federal programs for the year ended June 30, 2022. Bonneville Joint School District #93’s major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. In our opinion, Bonneville Joint School District #93 complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of Bonneville Joint School District #93 and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of Bonneville Joint School District #93’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to Bonneville Joint School District #93’s federal programs. 54 Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on Bonneville Joint School District #93's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about Bonneville Joint School District #93’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding Bonneville Joint School District #93’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of Bonneville Joint School District #93’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of Bonneville Joint School District #93’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 55 The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Wipfli LLP CPAs and Consultants Idaho Falls, Idaho October 11, 2022 56 Bonneville Joint School District #93 Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2022 SECTION I -SUMMARY OF AUDITORS’ RESULTS Financial Statements Type of auditor’s report issued: Unmodified. Internal control over financial reporting: • Material weakness (es) identified? Yes X No • Significant deficiency (ies) identified that are not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs: • Material weakness (es) identified? Yes X No • Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes X None reported Type of auditor’s report issued on compliance for major programs: Unmodified. Any audit findings disclosed that are required to be reported in accordance with Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)? Yes X No Identification of major programs: AL Number(s) Name of Federal Program or Cluster 84.425D/84.425R/84.425U COVID19-Education Stabilization Fund 10.553/10.555/10.559/10.582 Child Nutrition Cluster 21.019 COVID19 – Coronavirus Relief Fund 21.027 COVID19 – Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? X Yes No 57 Bonneville Joint School District #93 Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2022 SECTION II -FINDINGS -FINANCIAL STATEMENT AUDITS NONE SECTION III -FINDINGS AND QUESTIONED COSTS -MAJOR FEDERAL AWARD PROGRAMS AUDIT NONE 58 Entity Identifying Number Child Nutrition Cluster Cash Assistance School Breakfast Program 10.553 2016IN109947 357,927 National School Lunch Program –cash 10.555 2016IN109947 1,937,022 Special Milk Program 10.556 2014IN109947 1,107 2,296,056 Non-Cash Assistance (Commodities) National School Lunch Program 10.555 315,792 Total Child Nutrition Cluster 2,611,848 Fresh Fruit and Vegetable Program 10.582 201616L160347 124,198 Total Passed Through Idaho State Department of Education 2,736,046 Passed Through Bonneville County Federal Forest 10.665 11,538 Total United States Department of Agriculture 2,747,584 United States Department of Education Passed Through Idaho State Department of Education: Title I-Grants to Local Educational Agencies 84.010 S010A150012 1,740,145 Migrant Education 84.011 S011A150012 62,344 Special Education Cluster Special Education –School-age 84.027 Education: Bonneville Joint School District #93 Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2022 Federal Grantor / Pass-Through Grantor / Program Title Federal AL Number Pass-Through Entity Identifying Number Expenditures United States Department of Education Passed Through Idaho State Department of Education: Title I Grants to Local Educational Agencies Subtotal 84.010 S010A200012 S010A210012 259,564 1,355,056 1,614,620 Migrant Education -Basic State Grant Program Subtotal 84.011 S011A200012 S011A210012 25,520 41,211 66,731 English Language Acquisition Subtotal 84.365 S365A200012 S365A210012 23,259 57,888 81,147 Supporting Effective Instruction Subtotal 84.367 S367A200011 S367A210011 69,388 271,072 340,460 Student Support and Academic Enrichment 84.424 S424A210013 148,978 COVID-19 – ESSER I COVID-19 – ESSER II COVID-19 – ESSER III Subtotal 84.425D 84.425R 84.425U S425D210043 S425D221043 71,549 2,389,307 1,628,958 4,089,814 Special Education Cluster Special Education – School-age Subtotal 84.027 H027A180088 H027A190088 H027A200088 20,000 389,132 1,285,558 1,694,690 COVID19 -Special Education – School-age Special Education – Preschool Subtotal 84.173 H027X210088 H193A210030 2,318 70,149 72,467 Total Special Education Cluster 1,767,157 Total Passed Through the Idaho State Department of Education 8,108,907 Passed Through the State Division of Professional-Technical Vocational Education -Basic Grants to States 84.048 V048A200012 126,733 Total U.S. Department of Education 8,235,640 59 9 9 9 Bonneville Joint School District #93 Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2022 Federal Grantor / Pass-Through Grantor / Program Title Federal AL Number Pass-Through Entity Identifying Number Expenditures United States Department of Agriculture Passed Through the Idaho State Department of Education: Child Nutrition Cluster Cash Assistance School Breakfast Program Subtotal 10.553 202121N119947 202222N119947 95,757 740,528 836,285 National School Lunch Program Subtotal 10.555 202121N109947 202222N109947 536,056 2,652,022 3,188,078 COVID19 -Emergency Food Service Grant Summer Food Service Program for Children Fresh Fruit and Vegetable Program Subtotal 10.555 10.559 10.582 202222N890347 212020N109947 212020L160347 132,811 134,852 57,601 325,264 Total cash assistance 4,349,627 Non-Cash Assistance (Commodities) National School Lunch Program Total Child Nutrition Cluster 10.555 413,812 4,763,439 Total Passed Through Idaho State Department of Education 4,763,439 Passed Through Bonneville County Federal Forest 10.665 8,679 Total U.S. Department of Agriculture 4,772,119 United States Department of Treasury Passed Through the Idaho State Department of Education: COVID19 -Coronavirus Relief Fund COVID19 – Coronavirus State and Local Fiscal Recovery Funds 21.019 21.027 21-1992-0-1-806 512,088 1,456,977 Total Passed Through Idaho State Department of Education Total U.S. Department of Treasury 1,969,065 1,969,065 Total expenditures of federal awards 14,976,824 60 Bonneville Joint School District #93 Notes to Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2022 NOTE A BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of the District under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance issued by the Office of Management and Budget (OMB). Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in net position of the District. NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note A to the District’s financial statements. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursements. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. NOTE C NONMONETARY TRANSACTIONS Nonmonetary assistance is reported for the Food Distribution Program at fair market value of commodities received which is established by the State Department of Education. The District held an undetermined amount of those commodities in inventory at June 30, 2022. NOTE D INDIRECT COST RATE The District has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. NOTE E SUBRECIPIENTS The District had no subrecipients or subrecipient expenditures. 61 Bonneville Joint School District #93 Summary Schedule of Prior Year Audit Findings Fiscal Year Ended June 30, 2021 SECTION IV – SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS None 62