HomeMy WebLinkAbout2014 Bonneville School District AuditReport of Audit
Bonneville Joint School District #93
Idaho Falls, Idaho
June 30, 2014
Bonneville Joint School District #93
Contents
June 30, 2014
INDEPENDENT AUDITOR'S REPORT..........................................................................................................1-2
MANAGEMENT'S DISCUSSION & ANALYSIS............................................................................................ 3-9
Government -wide Financial Statements
Statementof Net Position........................................................................................................................... 10
Statementof Activities................................................................................................................................ 11
Fund Financial Statements
Combined Balance Sheet
GovernmentalFunds................................................................................................................................... 12
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position................................................................................................................. 13
Governmental Fund Types
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances...............................14-15
Reconciliation of the Governmental Funds Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities......................................................................................... 16
Fiduciary Funds
Statement of Fiduciary Net Position..................................................................
Notes to Financial Statements ....................
REQUIRED FINANCIAL INFORMATION
........... I .... I ......... I... 17
.........................18-32
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budgetto Actual........................................................................................................................................... 33-34
Debt Service Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budgetto Actual................................................................................................................................................ 35
Capital Projects Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budgetto Actual................................................................................................................................................ 36
Required Supplementary Information...............................................................................................................37
Notes to Required Supplementary Information................................................................................................. 38
Bonneville Joint School District #93
Contents
June 30, 2014
OTHER FINANCIAL INFORMATION
All Nonmajor Funds
Combinina Balance Sheet................................................................................................................................. 39
All Nonmajor Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ........................................... 40
All Agency Funds
Combining Statement of Changes in Assets and Liabilities.........................................................................41-42
TaxesReceivable..........................................................................................................................................43-44
SINGLE AUDIT 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 ..............
Independent Auditor's Report on Compliance with Requirements That
Could Have a Direct and material Effect on Each Major Program and on
Internal Control over Compliance in Accordance with OMB Circular A-133 ...............
Schedule of Findings and Questioned Costs..................................................................
Schedule of Expenditures of Federal Awards................................................................
Notes to Schedule of Expenditures of Federal Awards ..................................................
Summary Schedule of Prior Audit Findings ................................
.............................. 45-46
.............................. 47-48
..............................49-50
.............................. 51-52
................................... 53
................................... 54
GALUSHA
HIGGINS
VITT" & GALUSHArc
EST. 1919
A PROFESSIONAL CORPORATION OF
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
1220 Whitewater Drive, Idaho Falls, ID 83402
P.O. Box 50699, Idaho Falls, ID 83405
INDEPENDENT AUDITOR'S REPORT
Board of Trustees
Bonneville Joint School District #93
3497 N. Ammon Road
Idaho Falls, Idaho
Report on the Financial Statements
Phone (208) 523-5953
Fax (208) 523-8995
www.ghg-cpa.com
We have audited the accompanying 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, 2014, and the related notes to the financial statements, which collectively comprise the District's
basic financial statements as listed in the table of contents.
Management's Responsibility 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; this includes 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 of error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In malting those risk
assessments, the auditor considers internal control relevant to the entity's preparations and fair presentation of the
financial statements 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 entity's internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
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 Bonneville Joint School District #93, as of June 30, 2014, 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.
Billings - Bozeman • Havre - Helena • Missoula • Idaho Falls
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, budgetary comparison information, and OPEB funding information listed in the table of
contents on pages 3 through 9 and pages 33 through 38 be presented to supplement the basic financial statements.
Such information, 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 basis 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's basic financial statements. The combining and individual nonmajor fund financial
statements and other schedules listed in the table of contents and the schedule of expenditures of federal awards,
as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments,
and Nonprofit Organizations, are presented for purposes of additional analysis and are not a required part of the
basic financial statements.
The combining and individual nonmajor fund financial statements and other schedules listed in the table of
contents and the schedule of expenditures of federal awards, as required by the U.S. Office of Management and
Budget Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations, are 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. Such 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 combining and
individual nonmajor fund financial statements and other schedules listed in the table of contents and the schedule
of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
Other Reporting Required by GovernmentAuditing Standards
In accordance with Govermnent Auditing Standards, we have also issued our report dated October 28, 2014, on
our consideration of Bonneville Joint School District #93's internal control over financial reporting and our tests
of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, and other matters.
The purpose of that report is 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 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 the District's internal control over financial reporting and compliance.
GALUSHA, HIGGINS & GALUSHA, P.C.
Certified Public Accountants
Idaho Falls, Idaho
October 28, 2014
2
Bonneville Joint School District #93
Management's Discussion & Analysis
Fiscal Year Ended June 30, 2014
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, 2014. 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 2014 are as follows;
In total, net position decreased $1,682,298, which represents a 4.8% decrease from 2013
General revenues accounted for $57,681,426 in revenue or 79.9% of all revenues. Program specific revenues in
the form of charges for services, operating grants and contributions, and capital grants and contributions
accounted for $14,499,600 or 20.1% of total revenues of $72,181,026.
Total assets of governmental activities decreased by $6,323,452, as cash and cash equivalents decreased by
$6,551,989, receivables increased by $2,769,230, inventory decreased by $7,057, and capital assets decreased by
$2,533,636. 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 $1,805,340.
The District had $73,863,324 in expenses; only $14,499,600 of these expenses were offset by program specific
charges for services, grants, or contributions. General revenues (primarily state support and local property taxes)
of $57,681,426 were not adequate to provide for these programs.
Among major funds, the General Fund had $52,528,481 in revenues, and $54,228,750 in expenditures. The
General Fund's fund balance decreased $1,869,758 from 2013.
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.
3
Bonneville Joint School District #93
Management's Discussion & Analysis
Fiscal Year Ended June 30, 2014
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 2014?" 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 similar 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 like activities.
REPORTING THE DISTRICT'S MOST SIGNIFICANT FUNDS
Fund Financial Statements
The analysis of the District's major funds begins on page 12. 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, and Capital Projects 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 activities
(reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled
in the financial statements.
rd
Bonneville Joint School District #93
Management's Discussion & Analysis
Fiscal Year Ended June 30, 2014
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 2014 compared to 2013:
2013
2014
Assets
Current and other assets 30,864,330 34,654,146
Capital assets 78,842,518 81,376,154
Total assets
109,706,848
116,030,300
Liabilities
Long-term liabilities
57,575,733
60,939,461
Other liabilities
18,465,431
19,742,857
Total liabilities
76,041,164
80,682,318
Net position
Invested in capital assets, net of debt
7,547,210
11,857,872
Restricted
15,344,673
14,521,649
Unrestricted
10,773,801
8,968,461
Total net position
33,665,684
35,347,982
Total assets of governmental activities decreased by $6,323,452, as cash and cash equivalents decreased by
$6,551,989, receivables increased by $2,769,230, inventory decreased by $7,057, and capital assets decreased by
$2,533,636. 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 $1,805,340.
Bonneville Joint School District #93
Management's Discussion & Analysis
Fiscal Year EndedJune 30, 2014
The following table shows the changes in net position for fiscal years 2014 and 2013:
GOVERNMENTAL ACTIVITIES
Governmental revenues come primarily from three sources. State aid of $51,167,004 consists of the state
apportionment, other state grants, and revenue in lieu of taxes, and makes up 70.9% of revenues from
governmental activities. Property taxes of $12,435,211 make up 17.23% of total revenues from governmental
activities. Federal grants and assistance of $5,824,018 make up 8.07% of total revenues from governmental
activities.
Instruction expenditures including the support activities of support services, administrative, business admin
services, operations, and transportation comprise 90.8% of District expenses.
on
2014
2013
Revenues
Program revenues
Charges for services
3,733,904
3,444,521
Operating grants and contributions
10,765,696
11,299,131
General revenues
Property taxes
12,435,211
12,608,728
State aid
43,996,868
40,529,159
Federal aid
925
10,951
Other
1,248,420
1,231,818
Total revenues
72,181,026
69,124,308
Program expenses
Instruction
40,430,276
38,466,699
Support services
8,941,144
8,899,515
Administrative
6,126,908
5,658,220
Business admin services
1,423,531
1,117842
Operations
7,136,292
6,775,116
Transportation
2,955,731
2,780,651
Community service
261,814
180,678
Non instructional
3,247,840
2,991,503
Interest and fiscal charges
2,514,749
2,058,204
Capital improvements
781,472
164,704
Total expenses
73,863,324
69,093,132
(Decrease) increase in net position
(1,682,298)
31,176
GOVERNMENTAL ACTIVITIES
Governmental revenues come primarily from three sources. State aid of $51,167,004 consists of the state
apportionment, other state grants, and revenue in lieu of taxes, and makes up 70.9% of revenues from
governmental activities. Property taxes of $12,435,211 make up 17.23% of total revenues from governmental
activities. Federal grants and assistance of $5,824,018 make up 8.07% of total revenues from governmental
activities.
Instruction expenditures including the support activities of support services, administrative, business admin
services, operations, and transportation comprise 90.8% of District expenses.
on
Bonneville Joint School District #93
Management's Discussion & Analysis
Fiscal Year Ended June 30, 2014
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.
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 schools in
the District. (Principals, assistant principals, secretaries, and clerks charges with responsibility for a school's
administration.) Board of Education, Administration, Fiscal, and Business includes expenses associated with
administrative and financial supervision of the District.
Business Admin Services: The program concerned with the fiscal operations of the District. This program may
include 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 school 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.
7
% of
Total cost of
Net cost of
Total
Services 2014
Services 2014
Instruction
54.74
40,430,276
35,954,794
Support services
12.10
8,941,144
5,861,980
Administrative
8.30
6,126,908
5,999,695
Business admin services
1.93
1,423,531
1,415,256
Operations
9.72
7,178,569
7,155,817
Transportation
4.00
2,957,021
1,103491
Community service
0.35
261,814
38,121
Non -instructional
4.40
3,247,840
(20,977)
Interest and fiscal charges
3.40
2,514,749
1,095,857
Capital improvements
1.06
781,472
759,690
Total expenses
100
73,863,324
59,363,724
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 schools in
the District. (Principals, assistant principals, secretaries, and clerks charges with responsibility for a school's
administration.) Board of Education, Administration, Fiscal, and Business includes expenses associated with
administrative and financial supervision of the District.
Business Admin Services: The program concerned with the fiscal operations of the District. This program may
include 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 school 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.
7
Bonneville Joint School District #93
Management's Discussion & Analysis
Fiscal Year Ended June 30, 2014
Interest and Fiscal Charaes: 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 12. These funds are accounted for using the modified
accrual basis of accounting. All governmental funds had total revenues of $72,175,060 and expenditures of
$75,227,999. The net change in fund balance for the year in the General Fund, Debt Service Fund, and the
Capital Projects Fund, was a decrease of $1,869,758, an increase of $27,290, and an increase of $826,692,
respectively.
GENERAL FUND BUDGETING HIGHLIGHTS
During the course of the fiscal 2014 year, the District did not amend its budget.
For the General Fund, the budgeted revenue was $50,445,692 and the budgeted expense was $54,139,982.
Actual revenue was $52,528,481. The District received an additional $772,612 for differential pay to qualifying
personnel and $788,300 due to increased enrollment. Actual expenditures were $54,228,750, due in part, to the
salary payments for differential pay.
CAPITAL ASSETS
At the end of the fiscal year 2014, the District had $78,842,518 invested in land, buildings, furniture and
equipment, and vehicles (net of accumulated depreciation).
2014 2013
Non -depreciable assets 6,094,290 14,990,121
Buildings and improvements 70,514,751 64,290,050
Equipment 1,372,086 1,154,959
Vehicles 861,391 941,024
Total capital assets, net 78,842,518 81,376,154
Overall capital assets decreased $2,533,636 from fiscal year 2013 to fiscal year 2014. Decreases in capital assets,
primarily buildings, equipment, and vehicles, was due to depreciation expense for the year.
Bonneville .Joint School District #93
Management's Discussion & Analysis
Fiscal Year Ended June 30, 2014
DEBT ADMINISTRATION
At June 30, 2014, the District had three general obligation bond issues as follows:
2007 Series Bond
2009 Series Bond
2012 Series Bond
Total
At June 30, 2014, the District's overall legal debt margin was $99,972,097.
CURRENT FINANCIAL ISSUES AND CONCERNS
The Bonneville Joint School District No. 93 is financially stable and is committed to financial accountability and
excellence. In 2014, the District used $1.8 million of the General Fund balance to fund operating expenses.
For over a decade, the District has experienced steady, continuous growth. Since 2008, enrollment has grown by
24% from 9,600 students to almost 11,900 students currently. During this same time, the State decreased
education finding, resulting in a reduction of almost $28 million in operations revenue for the District. The Board
of Trustees have approved a Supplemental Levy Election in November 2014 to renew the existing $3,000,000
Supplemental Maintenance and Operations Levy.
In addition to reduced state funding, a critical concern of the District is adequate facilities for the growing student
population. We have built six new elementary schools to accommodate the growth in younger grades. Now the
growth bubble that began seven years ago has reached our middle and high schools where enrollment now
exceeds capacity by over 500 students. To accommodate the overflow, 27 portable classrooms are now being used
at the secondary schools, as well as 12 portable classrooms at our elementary schools. To accommodate student
growth, more portable classrooms will be added to our campuses every year until permanent classrooms can be
built. As more portables are added, our schools' hallways, restrooms, cafeterias, and other common spaces cannot
adequately accommodate the increased enrollment. The Board of Trustees is currently working with a sixty
member committee, comprised of patrons, community members, staff, and administration to determine options to
be presented to the voters in Bonneville Joint School District 93.
COMPONENT UNIT
The financial statements do not include the Bonneville Education Foundation, a component unit of the District.
The financial statements 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 April Burton, Chief Financial/
Operations Officer, at Bonneville Joint School District 493, 3497 North Ammon Road, Idaho Falls, Idaho 83401
or email at burtona@03112.id.us.
9
Due within
Total
one year
6,915,000
1,165,000
24,440,000
485,000
28,680,000
1,930,000
60,035,000
3,580,000
At June 30, 2014, the District's overall legal debt margin was $99,972,097.
CURRENT FINANCIAL ISSUES AND CONCERNS
The Bonneville Joint School District No. 93 is financially stable and is committed to financial accountability and
excellence. In 2014, the District used $1.8 million of the General Fund balance to fund operating expenses.
For over a decade, the District has experienced steady, continuous growth. Since 2008, enrollment has grown by
24% from 9,600 students to almost 11,900 students currently. During this same time, the State decreased
education finding, resulting in a reduction of almost $28 million in operations revenue for the District. The Board
of Trustees have approved a Supplemental Levy Election in November 2014 to renew the existing $3,000,000
Supplemental Maintenance and Operations Levy.
In addition to reduced state funding, a critical concern of the District is adequate facilities for the growing student
population. We have built six new elementary schools to accommodate the growth in younger grades. Now the
growth bubble that began seven years ago has reached our middle and high schools where enrollment now
exceeds capacity by over 500 students. To accommodate the overflow, 27 portable classrooms are now being used
at the secondary schools, as well as 12 portable classrooms at our elementary schools. To accommodate student
growth, more portable classrooms will be added to our campuses every year until permanent classrooms can be
built. As more portables are added, our schools' hallways, restrooms, cafeterias, and other common spaces cannot
adequately accommodate the increased enrollment. The Board of Trustees is currently working with a sixty
member committee, comprised of patrons, community members, staff, and administration to determine options to
be presented to the voters in Bonneville Joint School District 93.
COMPONENT UNIT
The financial statements do not include the Bonneville Education Foundation, a component unit of the District.
The financial statements 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 April Burton, Chief Financial/
Operations Officer, at Bonneville Joint School District 493, 3497 North Ammon Road, Idaho Falls, Idaho 83401
or email at burtona@03112.id.us.
9
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Bonneville Joint School District #93
Statement of Net Position
June 30, 2014
Governmental
Total assets 109,706,848
LIABILITIES
Accounts payable
Activities
ASSETS
5,718,344
Cash and investments
20,055,351
Property tax receivable, net
5,083,279
Other receivables
5,454,771
Supplies inventory
81,184
Prepaid expenses
189,745
Land
6,094,290
Depreciable buildings, equipment and vehicles, net of depreciation
72,748,228
Total assets 109,706,848
LIABILITIES
Accounts payable
294,979
Accrued wages
5,718,344
Accrued employee benefits
2,717,993
Interest payable
822,596
Long-term liabilities
949,589
Premium on bonds payable
5,166,018
Portion due or payable within one year
General obligation bonds
3,580,000
Other liabilities
165,501
Portion due or payable after one year
General obligation bonds
56,455,000
Other liabilities
1,120,733
Total liabilities 76,041,164
NET POSITION
Net investment in capital assets
7,547,210
Restricted for
Capital improvements
5,871,743
Debt service
8,523,341
Child nutrition
949,589
Unrestricted
10,773,801
Total net position 33,665,684
The accompanying notes are an integral part of these statements.
10
Statement of Activities
Fiscal Year Ended June 30, 2014
Total governmental activities 73,863,324 3,733,904 10,765,696
General revenues
Taxes
Property taxes
Property tax replacement
Federal grants
State aid - formula grants
Other state revenues
Unrestricted investments earnings
Other local
Total general revenues
Change in net position
Net position - beginning
Net position - ending
The accompanying notes are an integral part of these statements.
11
0 (59,363,724)
12,435,211
248,024
925
43,153,434
595,410
9,315
1,239,107
57,681,426
(1,682,298)
35,347,982
33,665,684
Net (expense)
revenue and
changesin
Program Revenues
net position
Operating Capital
Total
Charges for
grants and grants and
governmental
Functions / Programs
Expenses
services
contributions contributions
activities
Governmental activities
Instruction
40,430,276
1,224,715
3,250,767
(35,954,794)
Support services
8,941,144
1,437,413
1,641,751
(5,861,980)
Administrative
6,126,908
127,213
(5,999,695)
Business admin services
1,423,531
8,275
(1,415,256)
Operations
7,178,569
22,752
(7,155,817)
Transportation
2,957,021
50,582
1,802,948
(1,103,491)
Community service
261,814
85,432
138,261
(38,121)
Noninstructional
3,247,840
913,980
2,354,837
20,977
Interest on long-term debt
2,514,749
1,418,892
(1,095,857)
Capital improvements
781,472
21,782
(759,690)
Total governmental activities 73,863,324 3,733,904 10,765,696
General revenues
Taxes
Property taxes
Property tax replacement
Federal grants
State aid - formula grants
Other state revenues
Unrestricted investments earnings
Other local
Total general revenues
Change in net position
Net position - beginning
Net position - ending
The accompanying notes are an integral part of these statements.
11
0 (59,363,724)
12,435,211
248,024
925
43,153,434
595,410
9,315
1,239,107
57,681,426
(1,682,298)
35,347,982
33,665,684
Bonneville Joint School District #93
Combined Balance Sheet
Governmental Funds
June 30, 2014
LIABILITIES
Accounts payable
General
ASSETS
5,176,426
Cash and investments
5,777,682
Receivables
Governmental
Taxes - current
1,624,574
Taxes - delinquent
192,315
State apportionment
1,183,060
Federal grants
1,909,363
Other
1,103,272
Interfund receivable
1,969,230
Supplies inventory
106,628
Prepaid expenses
189,745
Total assets
12,039,878
LIABILITIES
Accounts payable
93,713
Accrued wages
5,176,426
Accrued employee benefits
2,355,025
Interfund payable
Governmental
Total liabilities
7,625,164
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
192,315
FUND BALANCES
8,258,105
Nonspendable
Total
Inventory
Capital
Restricted for
Governmental
Debt service
Projects
Child nutrition
Funds
Other fund activities
4,764,359
Assigned
1,909,363
Unassigned
2,313,036
Total fund balances
4,222,399
Total liabilities, deferred inflows
106,628
of resources, and fund balances
12,039,878
265,236 106,628
8,258,105
5,765,115
8,258,105 5,765,115
0 564,179
81,184 81,184
8,258,105
All
Total
Debt
Capital
Nonmajor
Governmental
Service
Projects
Funds
Funds
6,344,670
4,764,359
3,168,640
20,055,351
1,870,560
1,023,966
4,519,100
265,236
106,628
564,179
1,183,060
2,709,027
2,709,027
43,375
23,241
392,796
1,562,684
1,969,230
81,184
81,184
189,745
8,523,841
5,918,194
6,351,647
32,833,560
500
46,451
154,315
294,979
541,918
5,718,344
362,968
2,717,993
1,969,230
1,969,230
500
46,451
3,028,431
10,700,546
265,236 106,628
8,258,105
5,765,115
8,258,105 5,765,115
0 564,179
81,184 81,184
3,323,216 21,568,835
8,523,841 5,918,194 6,351,647 32,833,560
The accompanying notes are an integral part of these statements,
12
8,258,105
868,405
868,405
1,768,967
7,534,082
525,105
2,434,468
79,555
2,392,591
3,323,216 21,568,835
8,523,841 5,918,194 6,351,647 32,833,560
The accompanying notes are an integral part of these statements,
12
Bonneville Joint School District #93
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2014
Total fund balances - governmental funds
Amounts reported for governmental activities in the Statement of Net
Position are different because:
The premium on the bonds issued by the District is reported as an other
financing source in the governmental funds, but is reported as a liability in
the government -wide financial statements. The premium on the Series 2007,
2009, 2012A, 2012B, and 2012C bonds is reported net of amortization.
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 $135,333,764 and the accumulated depreciation is
$56,491,246.
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.
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.
Long-term liabilities at year end consisted of.
Bonds payable
Accrued interest on the bonds
Compensated absences
OPEB obligation
Total net position - governmental activities
(60,035,000)
(822,596)
(165,501)
(1,120,733)
The accompanying notes are an integral part of these statements.
13
21,568,835
(5,166,018)
78,842,518
564,179
(62,143,830)
33,665,684
Bonneville Joint School District #93
Governmental Fund Types
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Fiscal Year Ended June 30, 2014
REVENUES
Property taxes
Penalties and interest on delinquent taxes
Earnings on investments
Food service
Rental
Other local
State apportionment
Base
Transportation
Exceptional child
Benefits
Property tax replacement
Other state revenue
Federal grants and assistance
Total revenues
EXPENDITURES
Current
Instruction
Support services
Administration
Business operations
Operations
Transportation
Community services
Noninstructional
Debt service
Facility acquisition
Total expenditures
Revenues over (under) expenditures
All Total
Debt Capital Nonmajor Governmental
General Service Projects Funds Funds
4,446,378 5,166,198 2,785,540
30,269 43,445 16,972
9,315 11,782
913,615
18,429
1,554,953 52,721 134,421
37,965,479
1,796,606
92,313
5,187,955
115,828 86,076
1,310,956 1,418,892
46,120
232,520 2,914,259
5,824,018
12,398,116
90,686
21,097
913,615
18,429
1,742,095
37,965,479
1,796,606
92,313
5,187,955
248,024
5,876,627
5,824,018
52,528,481 6,714,611 3,133,873 9,798,095 72,175,060
33,076,563
135,247
3,594,148
36,805,958
5,772,066
184,798
2,984,280
8,941,144
5,817,089
57,608
47,505
5,922,202
898,262
572,269
206,613
1,677,144
6,004,806
989,397
72,217
7,066,420
2,559,187
372,328
3,183
2,934,698
95,056
166,758
261,814
5,721
3,242,119
3,247,840
6,687,321
6,687,321
193,954
1,489, 504
1,683,458
54,228,750 6,687,321
2,505,601
11,806,327
75,227,999
(1,700,269) 27,290
628,272
(2,008,232)
(3,052,939)
The accompanying notes are an integral pant 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, 2014
All Total
Debt Capital Nonmajor Governmental
General Service Projects Funds Funds
OTHER FINANCING
SOURCES (USES)
Operating transfers, net (169,489) 198,420 (28,931) 0
Total other financing sources (uses) (169,489) 0 198,420 (28,931) 0
Revenues and other financing sources
over (under) expenditures (1,869,758) 27,290 826,692 (2,037,163) (3,052,939)
Fund balance - July 1, 2013 (as restated) 6,092,157 8,230,815 4,938,423 5,360,379 24,621,774
Fund balance - June 30, 2014 4,222,399 8,258,105 5,765,115 3,323,216 21,568,835
The accompanying notes are an integral part of these statements.
15
Bonneville Joint School District #93
Reconciliation of the Governmental Funds Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities
For Fiscal Year Ended June 30, 2014
Total net change in fund balances - governmental funds:
Amounts reported for governmental activities in the Statement of Activities are different
because:
The bonds were issued at a premium. In the government -wide statement of net position, the
premium is reported as a liability and is amortized over the life of the bonds. The current
year bond premium amortization reflected on the Statement of Activities is $472,264.
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 depreciation exceeded capital outlays.
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 $53,591 this year.
In the Statement of Activities, certain operating expenses - compensated absences (vacations
and Early Retirement Inventive Program) are measured by the amounts earned during the
year. In the governmental funds, however, expenditures for these items are measured by the
amount of financial resources used. This year, amounts earned exceeded vacation leave paid
and GASB 45 amounts earned by $214,706.
Governmental funds report bond proceeds and premiums as current financial resources. In
contrast, the Statement of Activities treats such issuance of debt as a liability. Governmental
funds report repayment of bond principal as an expenditure, In contrast, the Statement of
Activities treats such repayments as a reduction in long-term liabilities. This is the amount
(3,052,939)
472,264
(2,586,951)
(53,591)
(214,706)
by which proceeds and premiums exceeded repayments. 3,845,000
The net effect of various miscellaneous transactions involving capital assets (i.e., sales and
donations) is to increase net assets.
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 increase in interest expense reported in the Statement of Activities is the
net result of the increase in accrued interest on bonds and leases by $144,692.
Change in net position of governmental activities
The accompanying notes are an integral part of these statements.
16
53,317
(144,692)
(1,682,298)
ASSETS
Cash
Investments
Total assets
LIABILITIES
Accounts payable
Due to student groups
Total liabilities
Bonneville Joint School District #93
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2011
The accompanying notes are an integral part of these statements.
17
Agency
Funds
773,638
448,859
1,222,497
102,152
1,120,345
1,222,497
This page intentionally left blank.
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2014
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. Revortina Entitv. 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. Discretelv 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, 2014.
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 and fiduciary funds, even
though the latter are excluded from the government -wide financial statements. Major
individual governmental funds are reported as separate columns in the fund financial
statements.
5. Fund Accountinf4. The District uses fluids 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.
18
Bonneville Joint School District 993
Notes to Financial Statements
June 30, 2014
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
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.
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.
Special Revenue Fund - The purpose of the Special Revenue Fund is to account for federal,
state, and locally funded grants. 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. 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.
Fiduciary Fund Types
Agency Fund (School Activity Funds) - Activity Funds are monies collected principally
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 sector 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 been 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.
19
Bonneville Joint School District #93
Notes to Financial Statements
Jame 30, 2014
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
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.
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 period. 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.
The agency funds are accounted for on the accrual basis of accounting, effective July 1, 2013.
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 not amend their budget for the 2013-2014 school year.
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 reserved fund balance to indicate an obligation to the District.
171;
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2014
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
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
charged 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
organized under Idaho Law, and national banks having their principal offices in Idaho.
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
was established as a cooperative endeavor to enable public entities of the State of Idaho to
aggregate funds for investment. This pooling is intended to improve administrative
efficiency and increase investment yield. The Local Government Investment Pool is
managed by the State of Idaho Treasurer's office. 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 / Pav_ ables. 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.
21
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2014
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
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 initial 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 fair 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
12. Compensated Absences. Employees are entitled to certain compensated absences based on
their length of employment. The entire compensated absences owed are repeated in the
governmental -wide financial statement.
13. Lona -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.
14. Deferred Outflows / Inflows of Resources. In addition to assets, the statement of financial
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 does not have any
items that qualify for reporting in this category.
In addition to liabilities, the Statement of Financial 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. The District
only has one type of item, which arises only under a modified accrual basis of accounting,
that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is
reported only in the governmental funds balance sheet. The governmental funds report
unavailable revenues from two sources: property taxes and special assessments. These
amounts are deferred and recognized as an inflow of resources in the period that the amounts
become available.
22
Bonneville Joint School District #93
Notes to Financial Statements
Janne 30, 2014
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
15. 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.
16. 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.
17. Fund Balance Policies. Fund balance of governmental funds is reported in various categories
based on the nature of any limitation requiring the use of resources for specific purposes. The
District itself can establish limitations on the use of resources through either a commitment
(committed fund balance) or an assignment (assigned fund balance).
The committed fund balance classification includes amounts that can be used only 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.
Amounts in the assigned fund balance classification are intended to be used by the
government for specific purposes but do not meet the criteria to be classified as 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.
Unlike commitments, assignments generally only exist temporarily. In other words, an
additional action does not normally have to be taken for the removal of an assignment.
Conversely, as discussed above, an additional action is essential to either remove or revise a
commitment.
18. Risk Manaaement. 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
liabilities. Settled claims resulting from these risks have not exceeded commercial insurance
coverage in any of the past three fiscal years.
23
NOTE A
Bonneville Joint School District #93
Notes to Financial Statements
Janne 30, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
19. 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. Significant estimates include those assumed in determining the
actuarial assumptions made in the other post -employment liability recorded under GASB 45.
Actual results could differ from those estimates.
CASH AND INVESTMENTS
At June 30, 2014, the carrying amount was $11,561,160 and the bank balance of the District's
deposits was as follows:
Bank Balance
Insured by Federal Depository Insurance 844,104
Uninsured and Uncollateralized 11,361,381
Totals 12,205,485
At June 30, 2014, 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 9,839,284 9,853,059 109 Days
Total investments 9,839,284 9,853,059
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, 2014, $11,361,381 of the District's deposits and certificates
of deposit were exposed to custodial credit risk because it was uninsured and uncollateralized.
Of the deposits, $9,839,284 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. Amounts 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.
24
Bonneville Joint School District #93
Notes to Financial Statements
Janne 30, 2014
NOTE B CASH AND INVESTMENTS, continued
The investments held by the Local Government Investment Pool are carried at cost, which is not
materially different than fair value (determined by the Idaho State Treasurer's office).
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.
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, 2014, balances of
interfund amounts receivable or payable have been recorded. The interfund balances at June 30,
2014, were as follows:
Receivable Payable
General Fund 1,969,230
Nonmajor Funds 1,969,230
Total 1,969,230 1,969,230
The General Fund transferred $69,570 to Child Nutrition and $198,420 to Plant Facilities as
required by State law. The federal programs transferred $98,501 to the General Fund as budgeted
for payment of indirect costs.
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
delinquency. 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 NON -MONETARY TRANSACTIONS
The District received $258,261 USDA Commodities during the 2013-2014 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.
25
NOTE F
Bonneville Joint School District #93
Notes to Financial Statements
Jame 30, 2014
CAPITAL, ASSETS
Following is a summary of the capital assets at June 30, 2014:
Capital assets, not being depreciated
Land
Elementary
Secondary
Construction in progress
Total capital assets, not being
depreciated
Capital assets, being depreciated
Buildings
Elementary
Secondary
Admin.
Total buildings
Equipment
Elementary
Secondary
Admin.
Total equipment
Vehicles
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings
Equipment
Vehicles
Total accumulated depreciation
Total capital assets being depreciated, net
Balance
June 30, 2013 Additions
3,242,583
2,414,187
9,333,351
Deletions
(255,667)
693,187
365,547 (9,698,898)
Balance
June 30, 2014
2,986,916
3,107,374
0
14,990,121 1,058,734 (9,954,565) 6,094,290
61,892,037
8,973,559
70,865,596
43,548,562
890,746
44,439,308
4,505,124
4,505,124
109,945,723
9,864,305
0
119,810,028
982,244
33,416
(243,670)
771,990
1,412,328
37,590
(205,490)
1,244,428
1,178,958
358,203
(137,306)
1,399,855
3,573,530
429,209
(586,466)
3,416,273
6,346,309
283,740
(616,876)
6,013,173
119,865,562 10,577,254 (1,203,342) 129,239,474
(45,655,673) (3,639,604)
(2,418,571) (205,840)
(5,405,285) (363,373)
(53,479,529) (4,208,817)
66,386,033 6,368,437
(49,295,277)
580,224 (2,044,187)
616,876 (5,151,782)
1,197,100 (56,491,246)
(6,242) 72,748,228
Governmental activities capital assets, net 81,376,154 7,427,171 (9,960,807) 78,842,518
Depreciation expense was charged to the functions of the primary government as follows:
Governmental activities
Instruction 3,618,078
Operations 227,366
Transportation 363,373
Total depreciation expense — governmental activities 4,208,817
26
NOTE G
NOTE H
Bonneville Joint School District #93
Notes to Financial Statements
Janne 30, 2014
GENERAL OBLIGATION BOND ISSUES
The District had five general obligation bond issues (2007, 2009, 2012A, 2012B, and 2012C
Series) outstanding at the end of the year with interest rates ranging from 3.0 to 5.375 percent.
The 2007 and 2009 Series bonds are scheduled to mature September of 2015, and September of
2028, respectively. The 2012A, 2012B, and 2012C bonds are scheduled to mature September
2031, August 2014, and September 2026, respectively.
Future debt service requirements are as follows:
Fiscal Year Ended June 30,
Total
Interest
Principal
2015
6,310,966
2,730,966
3,580,000
2016
8,557,038
2,532,038
6,025,000
2017
4,801,788
2,351,788
2,450,000
2018
4,773,175
2,253,175
2,520,000
2019
4,781,688
2,141,688
2,640,000
2020-2024
23,843,519
8,883,519
14,960,000
2025-2029
23,197,800
4,772,800
18,425,000
2030-2032
10,155,523
720,523
9,435,000
Total
86,421,497
26,386,497
60,035,000
Changes to bond principal payable and future interest payable are summarized as follows:
2012A 2012B 2012C 2009
2007
Combined
Principal Series Series Series Series
Series
Total
Balances at July 1, 2013 11,780,000 4,925,000 14,970,000 24,440,000
7,765,000
63,880,000
Bonds retired 2,995,000
850,000
3,845,000
Balances at June 30, 11,780,000 1,930,000 14,970,000 24,440,000 6,915,000 60,035,000
Interest to be Provided
Balances at July 1, 2013 10,006,248 109,810 5,352,525 12,972,775 785,959 29,227,317
Interest paid 587,598 85,685 648,850 1,174,881 343,806 2,840,820
Balances at June 30, 9,418,650 24,125 4,703,675 11,797,894 442,153 26,386,497
CHANGES IN LONG-TERM LIABILITIES
Following is a summary of the changes in long-term debt for the year ended June 30, 2014:
Balance
Balance
Current
July 1, 2013
Additions Payments June 30, 2014
Balance
Bonds payable 63,880,000
3,845,000 60,035,000
3,580,000
Employee benefits 1,071,528
214,706 1,286,234
165,501
Total 64,951,528
214,706 3,845,000 61,321,234
3,745,501
27
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2014
NOTE H CHANGES IN LONG-TERM LIABILITIES, continued
Payment on the general obligation bonds are made by the Debt Service Fund from property taxes
and state bond levy equalization funds. Compensated absences will be paid by the fund in which
the employee works.
NOTE I DEFEASED DEBT
The District purchased U.S. Securities and deposited $22,664,342 to an irrevocable trust with an
escrow agent to provide for all future debt service payments on $22,870,200 of the 2005 Series
and the 2007 Series bonds. As a result, $4,925,000 of the 2005 Series and $15,430,000 of the
2007 Series bonds are defeased and the liability for those bonds has been removed from the
government -wide statement of net assets. The 2005 Series has been paid off and only the 2007
defeased debt remains outstanding.
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, 2014, the
limit for the District was 5% of $3,035,837,339 or $151,791,867. The debt service fund had
$8,215,230 available and the general obligation debt was $60,035,000 leaving a legal debt margin
of $99,972,097.
NOTE K PAYROLL EXPENDITURES AND RELATED LIABILITIES
Teacher contracts were signed for the period September 2013, through June 2014, to be paid over
the twelve months of September 2013, through August 2014. The financial statements reflect the
salary expense for this period. The accrued payroll reflects the final two months of these
contracts.
NOTE L RETIREMENT HEALTHCARE PLAN
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.
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.
28
NOTE L
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2014
RET112EMENT HEALTHCARE PLAN, continued
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 2014 the District
contributed approximately $7.1 million to the plan for current premiums or approximately 87% of
total premiums. Plan members receiving benefits contributed approximately $1,069,100 or
approximately 13% of total premiums. Retirees are required to pay 100% of the premiums for
both the retiree and the dependent coverage. Monthly contribution rates in effect for the retirees
under age 65 during fiscal year 2014 were as follows:
Under 65
Single
$616.95
No Spouse W/Child
$819.70
No Spouse W/Children
$955.40
W/Spouse
$1,018.70
W/Spouse + Child
$1,218.10
W/Spouse + Children
$1,218.10
Annual OPEB Cost and Net OPEB Obligation. The District's annual other post -employment
benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the
employer (ARC), an amount actuarially determined in accordance with the parameters of GASB
Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or
funding excess) over a period not to exceed thirty years.
The following table shows the components of the District's annual OPEB cost for the year of
implementation of Bonneville Joint School District #93's Post -Retirement Healthcare Plan:
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made
Increase in net OPEB obligation
Net OPEB obligation — beginning of year
Net OPEB obligation - end of year
Annual OPEB cost Percentage of OPEB cost contributed
$398,664 46%
396,403
2,261
398,664
(182,393)
216,271
904,461
1,120,732
Net OPEB obligation
$1,120,732
Three year disclosure of the District's annual OPEB cost, the percentage of annual OPEB cost
contributed to the plan, and the net OPEB obligation are presented as RSI which accompany the
financial statements.
29
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2014
NOTE L RETIREMENT HEALTHCARE PLAN, continued
Funded Status and Funding Progress. As of July 1, 2012, the most recent actuarial valuation
date, the actuarial accrued liability (AAL) and the unfunded actuarial accrued liability (UAAL)
for benefits was $3,042,498. The District's plan is considered to be unfunded since there are no
assets and retiree benefits are paid annually on a cash basis. Because the plan is unfunded, the
AAL and UAAL are equal. The covered payroll (annual payroll of active employees covered by
the plan) was $34.6 million and the ratio of the UAAL to the covered payroll was 8.78%
Actuarial valuations of an ongoing plan involve estimates of the value of the reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend. Amounts
determined regarding the funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared with past expectations
and new estimates are made about the future. The schedule of funding progress will be presented
in the future when multi-year trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial liabilities for benefits is available.
Actuarial Methods and Assufnptions. Projections of benefits for financial reporting purposes are
based on the substantive plan (the plan as understood by the employer and the plan members) and
include the types of benefits provided at the time of each valuation and the historical pattern of
sharing of benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the effects of short-
term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the
long-term perspective of the calculations.
In the July 1, 2012, actuarial valuation, the Projected Unit Credit (PUC) actuarial cost method is
used. The actuarial assumptions included a 4.25% discount rate assuming the District will fund
the retirement benefit on a pay-as-you-go basis. The valuation assumes that 45% of future retirees
will elect medical coverage, 46.1% of future retirees will elect dental coverage, 70% of future
retirees who elect medical, dental or vision coverage and are married are assumed to elect spousal
coverage as well. The annual healthcare cost trend rate of 9% for medical, 9% for prescription
drugs, and 8% for dental initially, decreasing approximately .5% per year for medical, 1% per
year for prescription drugs, and .5% per year for dental until reaching an ultimate rate of 5%. It
was assumed salary increases will be 2.5% per annum. The UAAL is being amortized as a level
percentage of projected payrolls over a twenty five year time period.
NOTE M POST RETIREMENT BENEFITS
The District funds post-retirement benefits on a current basis through PERSI. The District paid
1.16% of the wages covered by PERSI to the State for the 2013-2014 school year. At the time of
retirement, a sum equal to one-half of the monetary value of unused sick leave, calculated at the
rate of pay at that time, is transferred from the sick leave account to the employee's retirement
account. This money shall then be used to pay premiums for health, accident, dental, and life
insurance.
30
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2014
NOTE N RETIREMENT SYSTEM
Public Employee Retirement System of Idaho (PERSI) - The PERSI Base Plan, a cost sharing,
multiple -employer, public retirement system was created by the Idaho State Legislature. It is a
defined benefit plan requiring that both the member and the employer contribute. The Plan
provides benefits based on members' years of service, age, and compensation. In addition,
benefits are provided for disability, death, and survivors of eligible members or beneficiaries. The
authority to establish and amend benefit provisions is established in Idaho Code. Designed as a
mandatory system for eligible state and school district employees, the legislation provided for
other political subdivisions to participate by contractual agreement with PERSI. After five years
of credited set -vice, members become fully vested in retirement benefits earned to date. Members
are eligible for retirement benefits upon attainment of the ages specified for their employment
classification. For each month of credited service, the annual service retirement allowance is 2%
of the average monthly salary for the highest consecutive 42 months.
PERSI issues publicly available stand alone financial reports that include audited financial
statements and required supplementary information. These reports may be obtained from PERSI's
website www.nersi.idaho.aov.
The actuarially determined contribution requirements of the District and its employees are
established and may be amended by the PERSI Board of Trustees. For the year ended June 30,
2014, the required contribution rate as a percentage of covered payrolls for members was
increased to 7.79% from 6.23% in July of 2013. The employer rate as a percentage of covered
payroll was increased to 11.32% from 10.39% in July of 2013. The District's contributions
required and paid were $3,954,919, $3,600,013, and $3,266,525, for the three years ended June
30, 2014, 2013, and 2012, respectively.
NOTE O COMMITMENTS AND CONTINGENCIES
The District is involved in claims arising from the ordinary course of operations. The estimated
possible loss to the District for these claims is uncertain, as the likelihood of an unfavorable
outcome is unknown. No accrual has been reflected in the financial statements for these matters.
In the opinion of the District's management, the ultimate disposition of these matters will not
have a material adverse effect on the District's financial condition.
NOTE P EXCESS OF ACTUAL EXPENDITURES OVER BUDGET IN THE MAJOR FUNDS
Actual expenditures exceeded budget for the General Fund and Debt Service funds. Excesses in
the General Fund are due to increased revenue and in the Debt Service are due to fees on the bond
payments not included in the budget.
NOTE Q CONSTRUCTION COMMITMENTS
The District has entered into construction commitments with three vendors as of June 30, 2014
totaling $598,961. All three commitments will be completed in the next fiscal year.
31
Bonneville Joint School District H93
Notes to Financial Statements
June 30, 2014
NOTE R RESTATEMENT OF FUND BALANCES
The District determined that a portion of fund balance in the Special Projects fund related to the
flex plan would be more accurately reflected if included with the general fund. The District has
increased the General Fund balance by $86,291 and reduced the Special Project fund by the same
amount as the beginning of the year.
NOTE S SUBSEQUENT EVENTS
Management of the District evaluated subsequent events through October 28, 2014, which was
the date the financial statements were available to be issued. There were no subsequent type
events, identified by management of the District, that are required to be disclosed.
Kia
REQUIRED FINANCIAL INFORMATION
Bonneville Joint School District #93
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
-Budget to Actual -
Fiscal Year Ended June 30, 2014
Support services
Attendance, guidance, and health
1,581,287
1,591,246
Favorable
Special services
1,957,197
2,021,083
(Unfavorable)
REVENUES
Budget
Actual
Variance
Property taxes
4,520,000
4,446,378
(73,622)
Penalties and interest on delinquent taxes
25,000
30,269
5,269
Earnings on investments
10,000
9,315
(685)
Tuition
5,000
60,300
55,300
Rental
20,025
18,429
(1,596)
Other local
246,000
1,494,653
1,248,653
State apportionment
Base
37,289,600
37,965,479
675,879
Transportation
1,775,000
1,796,606
21,606
Exceptional child
73,000
92,313
19,313
Benefits
5,092,700
5,187,955
95,255
Property tax replacement
41,894
115,828
73,934
Other state revenue
1,347,473
1,310,956
(36,517)
Total revenues
50,445,692
52,528,481
2,082,789
EXPENDITURES
Instruction
Elementary
15,819,737
15,795,060
24,677
Secondary
12,501,350
12,607,376
(106,026)
Alternative school
1,168,818
987,550
181,268
Exceptional child
2,557,428
2,839,286
(281,858)
Preschool
260,180
219,692
40,488
Gifted and talented
60,000
15,973
44,027
Interscholastic program
472,574
466,350
6,224
School activity
139,633
145,276
(5,643)
Summer school
78
0
78
Total instruction
32,979,798
33,076,563
(96,765)
Support services
Attendance, guidance, and health
1,581,287
1,591,246
(9,959)
Special services
1,957,197
2,021,083
(63,886)
Instructional improvement
139,411
195,015
(55,604)
Educational media
504,644
527,755
(23,111)
Instruction related technology
1,337,895
1,436,967
(99,072)
Total support services 5,520,434 5,772,066 (251,632)
The accompanying notes are an integral part of these statements.
33
Bonneville Joint School District #93
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
-Budget to Actual -
Fiscal Year Ended June 30, 2014
EXPENDITURES, continued
Budget
Actual
Administration
Board of Education
79,000
83,403
District administration
1,736,771
1,660,970
School administration
4,027,652
4,072,716
Total administration
5,843,423
5,817,089
Business Administrative Services
Business operations
518,312
570,650
Central services
145,502
110,996
Administrative Technology Services
99,130
216,616
Total business administrative services
762,944
898,262
Operations
Building care (custodial)
4,352,355
4,081,496
Maintenance
1,550,147
1,497,890
Security
387,860
425,420
Total operations
6,290,362
6,004,806
Transportation
2,630,968
2,559,187
Community service
112,053
95,056
Noninstructional
5,721
Total expenditures
54,139,982
54,228,750
Revenues over (under) expenditures
(3,694,290)
(1,700,269)
OTHER FINANCING SOURCES (USES)
Operating transfers, net
(94,446)
(169,489)
Revenues and other financing sources
over (under) expenditures
(3,788,736)
(1,869,758)
Fund balance - July 1, 2013 (as restated)
6,092,157
Fund balance - June 30, 2014
4,222,399
The accompanying notes are an integral part of these statements.
34
Favorable
(Unfavorable)
Variance
(4,403)
75,801
(45,064)
26,334
(52,338)
34,506
(117,486)
(135,318)
270,859
52,257
(37,560)
285,556
71,781
16,997
(5,721)
(83,047)
1,999,742
(75,043)
1,924,699
Bonneville Joint School District #93
Debt Service Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
-Budget to Actual -
Fiscal Year Ended June 30, 2014
Fund balance - July 1, 2013
Fund balance - June 30, 2014
8,230,815
8,258,105
The accompanying notes are an integral part of these statements.
35
Favorable
(Unfavorable)
Budget
Actual
Variance
REVENUES
Property taxes
6,980,000
5,166,198
(1,813,802)
Penalty and interest on delinquent taxes
57,848
43,445
(14,403)
Other state revenue
957,388
1,418,892
461,504
Property tax replacement
86,076
86,076
Total revenues
7,995,236
6,714,611
(1,280,625)
EXPENDITURES
Debt service
Principal
3,845,000
3,845,000
0
Interest
2,840,831
2,840,821
10
Fees
1,500
(1,500)
Total expenditures
6,685,831
6,687,321
(1,490)
Revenues over (under) expenditures
1,309,405
27,290
(1,279,135)
Revenues and other financing sources
over (under) expenditures
1,309,405
27,290
(1,282,115)
Fund balance - July 1, 2013
Fund balance - June 30, 2014
8,230,815
8,258,105
The accompanying notes are an integral part of these statements.
35
Bonneville Joint School District #93
Capital Projects Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
-Budget to Actual -
Fiscal Year Ended June 30, 2014
OTHER I+INANCING SOURCES (USES)
Operating transfers, net 198,420 198,420
Revenues and other financing sources
over (under) expenditures 123,749 826,692 702,943
Fund balance - July 1, 2013
Fund balance - June 30, 2014
4,938,423
5,765,115
The accompanying notes are an integral part of these statements.
36
Favorable
(Unfavorable)
Budget
Actual
Variance
REVENUES
Property taxes
2,800,000
2,785,540
(14,460)
Penalties and interest on delinquent taxes
16,972
16,972
Other local
52,721
52,721
Property tax replacement
46,120
46,120
Other state revenue
232,520
232,520
Total revenues
2,800,000
3,133,873
333,873
EXPENDITURES
Instruction
135,247
(135,247)
Support services
157,555
184,798
(27,243)
Administration
10,000
57,608
(47,608)
Business administrative services
480,200
572,269
(92,069)
Operations
1,496,496
989,397
507,099
Transportation
90,000
372,328
(282,328)
Facility acquisition
442,000
193,954
248,046
Total expenditures
2,676,251
2,505,601
170,650
Revenues over (under) expenditures
123,749
628,272
504,523
OTHER I+INANCING SOURCES (USES)
Operating transfers, net 198,420 198,420
Revenues and other financing sources
over (under) expenditures 123,749 826,692 702,943
Fund balance - July 1, 2013
Fund balance - June 30, 2014
4,938,423
5,765,115
The accompanying notes are an integral part of these statements.
36
Required Supplementary Information
Fiscal Year Ended Janne 30, 2014
General Employees' Other Postemployment Benefits Plan
Schedule of Funding Progess
The accompanying notes are an integral part of these statements.
37
Actuarial
Accrued
Liability
UAAL as a
Actuarial
(AAL) -
Percentage of
Actuarial
Value of
Projected Unit
Unfunded Funded
Covered
Covered
Valuation
Assets
Credit
AAL (UAAL) Ratio
Payroll
Payroll
Date
(a)
(b)
(b - a) (a/b)
( c )
[(b-a)/c]
6/30/2014
-
3,274,390
3,274,390 -
34,937,428
9.37%
6/30/2013
-
3,042,498
3,042,498 -
34,648,863
8.78%
6/30/2012
-
3,192,116
3,192,116 -
31,439,113
10.15%
The accompanying notes are an integral part of these statements.
37
Bonneville Joint School District #93
Notes to Required Supplementary Information
Fiscal Year Ended Jame 30, 2014
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.
NOTE B EXCESS OF ACTUAL EXPENDITURES OVER BUDGET
Actual expenditures exceeded budget for the General Fund and Debt Service funds.
The accompanying notes are an integral part of these statements.
38
OTHER FINANCIAL INFORMATION
Bonneville Joint School District #93
All Nonmajor Funds
Combining .Balance Sheet
June 30, 2014
LIABILITIES AND
Public
Improving
IDEA
Perkins III
Improving
All
Child
Federal
Community
Special
Driver's
Professional
School
Telford
Basic
Migrant
School
IDEA
Professional
Teacher
Construction
Construction
Nonmajor
10,224 5,683
Nutrition
Forest
Resource
Projects
Ed
Technical
Technology
Grant
Medicaid
Programs
Education
Age
Preschool
Technical
Title III Quality
2009
2012
Funds
ASSETS
8,936
541,918
Accrued employee benefits
72,235
1,844 271
17 145,551
34,714
1,356
104,085
18
967
23
1,887
362,968
Interfund payable
469
Cash and investments
818,926
85,402
14,215
352,719
15,504
0
141,133
100,000
23,651
278,594 5,847
4,580 10,224 1,564 15,635
577 0 351,817
1,270,591
18,370
605,256
717,909
899,181
3,168,640
Federal grants receivable
328,073
19,897
9,364
1,270,591
18,370
605,256
92,636
101,507
9,435 253,898
2,709,027
Other receivables
16,305
48,325
328,166
392,796
Supplies inventory
81,184
81,184
Total assets
1,228,183
85,402
34,112
362,083
31,809
48,325
141,133
100,000
351,817
1,270,591
18,370
605,256
92,636
101,507
9,435 253,898
717,909
899,181
6,351,647
LIABILITIES AND
FUND EQUITY
LIABILITIES
Accounts payable
108,022 5,847
10,224 5,683
560 1,799
3,661
1,198
327
4,290
4,804 7,900
154,315
Accrued wages
98,337
2,736 1,293 9,483
204,467
86,872
4,715
123,149
207
1,455
268
8,936
541,918
Accrued employee benefits
72,235
1,844 271
17 145,551
34,714
1,356
104,085
18
967
23
1,887
362,968
Interfund payable
469
1,145,344
11,101
377,695
92,411
99,085
4,854
238,271
1,969,230
Total liabilities
278,594 5,847
4,580 10,224 1,564 15,635
577 0 351,817
1,270,591
18,370
605,256
92,636
101,507
9,435
253,898 7,900
0 3,028,431
FUND EQUITY
Nonspendable
Restricted
Assigned
Unassigned
Total fund equity
Total liabilities
and fund equity
81,184
868,405
79,555
949,589 79,555
1,228,183 85,402
29,532 30,245
351,859
32,690
29,532 351,859 30,245 32,690
34,112 362,083 31,809 48,325
100,000
140,556
140,556 100,000
81,184
710,009 899,181 2,637,372
525,105
79,555
710,009 899,181 3,323,216
141,133 100,000 351,817 1,270,591 18,370 605,256 92,636 101,507 9,435 253,898 717,909 899,181 6,351,647
39
Bonneville Joint School District #93
All Nonmaj or Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
Fiscal Year Ended June 30, 2014
M
Public
Improving
Perkins III
Improving
All
Child
Federal
Community
Special
Driver's
Professional
School
Telford
Basic
Migrant
IDEA
IDEA
Professional
Teacher
Construction
Construction
Nonmajor
Nutrition
Forest
Resource
Projects
Ed
Technical
Technology
Grant
Medicaid
Programs
Education
School -Age
Preschool
Technical
Title III
Quality
2009
2012
Funds
REVENUES
Earnings on investments
2,243
9,539
11,782
Food service
913,615
913,615
Other local
365
16,875
55,329
36,990
14,862
10,000
134,421
Other state revenue
(3,445)
219,451
312,667
100,000
2,285,586
2,914,259
Federal grants and assistance
2,346,587
56,798
15,111
1,143,199
84,712
1,693,272
60,316
101,507
23,596
298,920
5,824,018
Total revenues
3,260,567
56,798
31,986
55,329
33,545
219,451
327,529
100,000
2,285,586
1,143,199
84,712
1,693,272
60,316
101,507
23,596
298,920
2,243
19,539
9,798,095
EXPENDITURES
Instruction
Elementary
2,850
583,882
1,575
32,248
187,013
807,568
Secondary
11,366
12,395
45,370
17,508
120,138
206,777
Exceptional child
500
846,128
1,086,978
1,933,606
Preschool
2,045
45,689
47,734
School activity
28,878
28,878
Summer school
277,504
277,504
Vocational
207,019
85,062
292,081
Support services
Attendance, guidance, and health
8,731
8,731
Special services
1,460,041
605,894
14,627
2,080,562
Instructional improvement
2,759
50,223
154,611
400
4,513
290,883
503,389
Educational media
5,927
140,448
146,375
Instructional related technology
2,060
243,163
245,223
School administration
518
6,868
3,364
862
11,411
16,445
8,037
47,505
Business Administrative Services
559
6,059
173,802
26,193
206,613
Operations
7,475
5,498
15,677
43,567
72,217
Transportation
1,290
1,893
3,183
Community services
27,611
586
28,651
25,198
84,712
166,758
Noninstructional services
3,239,335
2,784
3,242,119
Facility acquisition
444,221
1,045,283
1,489,504
Total expenditures
3,239,335
40,762
27,611
45,553
30,544
210,883
300,307
2,316,945
1,103,474
84,712
1,693,272
60,316
101,507
23,596
298,920
786,086
1,442,504
11,806,327
Revenues over (under) expenditures
21,232
16,036
4,375
9,776
3,001
8,568
27,222
100,000
(31,359)
39,725
(783,843)
(1,422,965)
(2,008,232)
OTHER FINANCING
SOURCES (USES)
Net transfers
10,794
(39,725)
(28,931)
Total other financing sources
10,794
0
0
0
0
0
0
0
0
(39,725)
0
0
0
0
0
0
0
0
(28,931)
Revenues and other financing sounces
over (under) expenditures and other
financing sources (uses)
32,026
16,036
4,375
9,776
3,001
8,568
27,222
100,000
(31,359)
(783,843)
(1,422,965)
(2,037,163)
Fund balance - July 1, 2013 (*as restated)
917,563
63,519
25,157
342,083
27,244
24,122
113,334
31,359
1,493,852
2,322,146
5,360,379
Fund balance - June 30, 2014
949,589
79,555
29,532
351,859
30,245
32,690
140,556
100,000
0
0
0
0
0
0
0
0
710,009
899,181
3,323,216
M
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Bonneville Joint School District #93
All Agency Funds
Combining Schedule of Changes in Assets and Liabilities
Fiscal Yeas' Ended June 30, 2014
41
Balance
Balance
ASSETS
June 30, 2013
Receipts
Disbursements
June 30, 2014
Cash
Bonneville High School
88,108
843,583
820,543
111,148
Hillcrest High School
180,529
757,252
731,526
206,255
Rocky Mountain Middle School
71,131
136,908
148,203
59,836
Sandcreek Middle School
112,212
129,410
129,065
112,557
Lincoln High School
25,993
12,121
2,713
35,401
Ammon Elementary School
2,383
13,369
5,605
10,147
Bridgewater Elementary
10,915
11,355
10,474
11,796
Cloverdale Elementary School
502
18,865
10,133
9,234
Discovery Elementary
26,284
26,649
22,572
30,361
Fairview Elementary School
17,020
18,836
14,098
21,758
Hillview Elementary School
39,347
10,946
8,447
41,846
Falls Valley Elementary School
1,780
13,300
11,039
4,041
Iona Elementary School
19,112
21,948
21,195
19,865
Mountain Valley Elementary
12,817
39,800
36,842
15,775
Rimrock Elementary School
14,325
32,201
27,947
18,579
Summit Hills Elementary School
18,276
15,551
2,725
Technical Careers High School
69,699
62,873
6,826
Telford Academy
383
501
528
356
Tiebreaker Elementary School
21,321
20,643
21,902
20,062
Ucon Elementary School
2,487
26,628
21,337
7,778
Woodland Hills Elementary School
15,216
23,709
11,633
27,292
Total cash
661,865
2,245,999
2,134,226
773,638
Investments
Bonneville High School
242,588
171
242,759
Hillcrest High School
184,104
1,348
185,452
Rocky Mountain Middle School
20,544
104
20,648
Sandcreek Middle School
Lincoln High School
Ammon Elementary School
Bridgewater Elementary
Cloverdale Elementary School
Discovery Elementary
Fairview Elementary School
Hillview Elementary School
Falls Valley Elementary School
Iona Elementary School
Mountain Valley Elementary
Rimrock Elementary School
Summit Hills Elementary School
Technical Careers High School
Telford Academy
Tiebreaker Elementary School
Ucon Elementary School
Woodland Hills Elementary School
Total investments
447,236
1,623
0
448,859
Total assets
1,109,101
2,247,622
2,134,226
1,222,497
41
Bonneville Joint School District #93
All Agency Funds
Combining Schedule of Changes in Assets and Liabilities
Fiscal Year Ended June 30, 2014
42
Balance
Balance
LIABILITIES
June 30, 2013
Receipts
Expenditures
June 30, 2014
Accounts payable
Bonneville High School
36,926
36,926
Hillcrest High School
23,465
23,465
Rocky Mountain Middle School
7,685
7,685
Sandcreek Middle School
641
641
Lincoln High School
5,200
5,200
Ammon Elementary School
208
208
Bridgewater Elementary
1,830
1,830
Cloverdale Elementary School
6,990
6,990
Discovery Elementary
4,607
4,607
Fairview Elementary School
1,055
1,055
Hillview Elementary School
4,536
4,536
Falls Valley Elementary School
934
934
Iona Elementary School
138
138
Mountain Valley Elementary
313
313
Rimrock Elementary School
1,277
1,277
Summit Hills Elementary School
2,950
2,950
Technical Careers High School
0
0
Telford Academy
142
142
Tiebreaker Elementary School
241
241
Ucon Elementary School
600
600
Woodland Hills Elementary School
2,414
2,414
Total accounts payable
0
0
102,152
102,152
Due to student groups
Bonneville High School
330,696
843,754
857,469
316,981
Hillcrest High School
364,633
758,600
754,991
368,242
Rocky Mountain Middle School
91,675
137,012
155,888
72,799
Sandcreek Middle School
112,212
129,410
129,706
111,916
Lincoln High School
25,993
12,121
7,913
30,201
Ammon Elementary School
2,383
13,369
5,813
9,939
Bridgewater Elementary
10,915
11,355
12,304
9,966
Cloverdale Elementary School
502
18,865
17,123
2,244
Discovery Elementary
26,284
26,649
27,179
25,754
Fairview Elementary School
17,020
18,836
15,153
20,703
Hillview Elementary School
39,347
10,946
12,983
37,310
Falls Valley Elementary School
1,780
13,300
11,973
3,107
Iona Elementary School
19,112
21,948
21,333
19,727
Mountain Valley Elementary
12,817
39,800
37,155
15,462
Rimrock Elementary School
14,325
32,201
29,224
17,302
Summit Hills Elementary School
18,276
18,501
(225)
Technical Careers High School
69,699
62,873
6,826
Telford Academy
383
501
670
214
Tiebreaker Elementary School
21,321
20,643
22,143
19,821
Ucon Elementary School
2,487
26,628
21,937
7,178
Woodland Hills Elementary School
15,216
23,709
14,047
24,878
Total due to student groups
1,109,101
2,247,622
2,236,378
1,120,345
Total liabilities
1,109,101
2,247,622
2,338,530
1,222,497
42
Bonneville Joint School District #93
Taxes Receivable
Fiscal Year- Ended June 30, 2014
General Fund
2012
Total 2013 and prior
Unearned balance at July 1, 2013 210,823 210,823
ADDITIONS
Roll charges applicable to 2013 4,435,631 4,435,631
Subsequent additions and cancellations (7,778) (5,475) (2,303)
Total additions 4,427,853 4,430,156 (2,303)
DEDUCTIONS
Collections received
2,821,786
208,709
123,077
Current amount due on taxes collected
by the counties
1,624,575
1,613,042
11,533
Total deductions
4,446,361
4,311,751
134,610
Unearned balance at June 30, 2014
192,315
118,405
73,910
43
Bonneville Joint School District #93
Taxes Receivable
Fiscal Year Ended June 30, 2014
44
Debt Service Fund
Capital Projects Fund
2012
2012
Total
2013
and prior
Total
2013
and prior
276,993
276,993
129,953
129,953
5,164,083
5,164,083
2,766,960
2,766,960
(9,640)
(6,377)
(3,263)
(4,744)
(3,416)
(1,328)
5,154,443
5,157,706
(3,263)
2,762,216
2,763,544
(1,328)
3,295,640
3,132,872
162,768
1,761,573
107,482
74,091
1,870,560
1,855,780
14,780
1,023,968
1,017,025
6,943
5,166,200
4,988,652
177,548
2,785,541
29704,507
81,034
265,236
169,054
96,182
106,628
59,037
47,591
44
This page intentionally left blank.
Single Audit Section
Bonneville Joint School District #93
June 30, 2014
GALUSHA
HIGGINS
&GALUSHArc
FST, 1919
A PROFESSIONAL CORPORATION OF
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
1220 Whitewater Drive, Idaho Falls, ID 83402
P.O. Box 50699, Idaho Falls, ID 83405
Phone (208) 523-5953
Fax (208) 523-8995
www.ghg-cpa.com
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 A UDITING STANDARDS
Board of Trustees
Bonneville Joint School District 493
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 the financial audits contain in the 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 493 as of and for the year
ended June 30, 2014, and the related notes to the financial statements, which collectively comprise Bonneville
Joint School District #93's basic financial statements, and have issued our report thereon dated October 28, 2014.
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) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion 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 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 the 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 may exist that have not been
identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Bonneville Joint School District 493's financial
statements are free of 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 determination of financial statement amounts.
PKI
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.
We noted certain matters that we reported to management of Bonneville Joint School District #93 in a separate
letter dated October 28, 2014.
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.
GALUSHA, HIGGINS & GALUSHA, P.C.
Certified Public Accountants
Idaho Falls, Idaho
October 28, 2014
Mel
GALUSHA
HIGGINS
& GALUSHArc
EST. 1919
A PROFESSIONAL CORPORATION OF
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
1220 Whitewater Drive, Idaho Falls, ID 83402
P.O. Box 50699, Idaho Falls, ID 83405
Phone (208) 523-5953
Fax (208) 523-8995
www.ghg-cpa.com
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS
THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH
MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Board of Trustees
Bonneville Joint School District #93
Idaho Falls, Idaho
Report on Compliance for Each Major Federal Program
We have audited Bonneville Joint School District #93's compliance with the types of compliance requirements
described in the U.S. Office of Managennent and Budget (OMB) Circular A-133 Compliance Supplement that
could have a direct and material effect on each of Bonneville Joint School District #93's major federal programs
for the year ended June 30, 2014. Bonneville Joint School District #93's major federal program is identified in
the summary of auditor's results section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants
applicable to its major federal program.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for Bonneville Joint School District #93's major federal
program based on our audit of the types of compliance requirements referred to above. 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 Govermnent Auditing Standards, issued by the Comptroller
General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit
Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements referred to above
that could have a direct and material effect on a major federal program occurred. An audit includes examining, on
a test basis, evidence about Bonneville Joint School District #93's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of Bonneville Joint School District #93's
compliance.
Opinion on Each Major Federal Program
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 its major federal
program for the year ended June 30, 2014.
47
Report on Internal Control over Compliance
Management of Bonneville Joint School District #93 is responsible for establishing and maintaining effective
internal control over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered Bonneville Joint School District #93's internal control over
compliance with the type of requirements that could have a direct and material effect on each major federal
program to determine the auditing procedures that are appropriate in the circumstances for the purpose of
expressing an opinion on compliance for each major federal program and to test and report on internal control
over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness
of Bonneville Joint School District #93's 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 requirements of a federal program on a timely
basis. A material weakness in internal control over compliance is a deficiency, or 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 first paragraph
of this section and was not designed to identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing on
internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133.
Accordingly this report is not suitable for any other purpose.
GALUSHA, HIGGINS & GALUSHA, P.C.
Certified Public Accountants
Idaho Falls, Idaho
October 28, 2014
.'
Bonneville Joint School District #93
Schedule of Findings and Questioned Costs
Fiscal Year Ended Jame 30, 2014
SECTION I - SUMMARY OF AUDITORS' RESULTS
Financial Statements
Type of auditor's report issued: Unqualified.
Internal control over financial reporting:
• Material weakness (es) identified?
Yes
• Significant deficiency (ies) identified
that are not considered to be
material weaknesses?
Yes
Noncompliance material to financial statements noted?
Yes
Federal Awards
Internal control over major programs:
• Material weakness (es) identified?
Yes
• Significant deficiency(ies) identified
that are not considered to be
material weaknesses?
Yes
Type of auditor's report issued on compliance for major programs: Unqualified.
Any audit findings disclosed that are
required to be reported in accordance
with section 510(a) of Circular A-133?
Yes
Identification of major programs:
X No
X None reported
X No
X No
X None reported
X No
CFDA Number(s) Name of Federal Program or Cluster
10.553/10.555/10.559 Child Nutrition Cluster
Dollar threshold used to distinguish
between type A and type B programs: $300,000
Auditee qualified as low-risk auditee? X Yes
.•
len
Bonneville Joint School District #93
Schedule of Findings and Questioned Costs
Fiscal Year Ended June 30, 2014
SECTION II - FINDINGS - FINANCIAL STATEMENT AUDITS
None
SECTION III - FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS
AUDIT
None
50
i t1 1111111 11111111111,
1 1 _ 1
Schedule of Expenditures of Federal Awards
Fiscal Year Ended Jame 30, 2014
Federal Pass -Through
CFDA Entity Identifying
Federal Grantor / Pass -Through Grantor / Program Title Number Number Expenditures
United States Department of Education
Passed Through the Idaho State Department of Education
Title I Grants to Local Educational Agencies
84.010 S013A110012
1,143,199
Migrant Education - Basic State Grant Program
84.011 S013AI 10012
84,712
English Language Acquisition
84.365 T365AI20012
23,597
Improving Teacher Quality
84.367 S367A130011
298,920
Subtotal
1,550,428
Special Education Cluster
Special Education — School-age
84.027 1-1027A130088
1,693,272
Special Education — Preschool
84.173 H173A120030
60,316
Total Special Education Cluster
1,753,588
Total Passed Through the Idaho State Department of Education
3,304,016
Passed Through the State Division of Professional -Technical
Vocational Education - Basic Grants to States
84.048A V048A120012
101,507
Total U.S. Department of Education
3,405,523
United States Department of Agriculture
Passed Through the State Department of Education:
Child Nutrition Cluster
School Breakfast Program
10.553 2014IN109947
348,870
National School Lunch Program
10.555 2014IN109947
1,915,771
Summer Food Service Program for Children
10.559 2014IN109947
44,386
Total Child Nutrition Cluster
2,309,027
Team Nutrition Grants
10.574 2012IN351130
1,000
Fresh Fruit and Vegetable Program
10.582 2014CLI60347
37,492
Total Passed Through the State Department of Education
2,347,519
Passed Through Bonneville County
Federal Forest
10.665
40,762
Total U.S. Department of Agriculture
2,388,281
51
Bonneville Joint School District #93
Schedule of Expenditures of Federal Awards
Fiscal Year Ended June 30, 2014
Federal Pass -Through
CFDA Entity Identifying
Federal Grantor / Pass -Through Grantor / Program Title Number Number Expenditures
United States Department of Transportation
Passed Through the State Department of Transportation:
Highway Planning and Construction 20.205 A011(514) 23,402
Total U.S. Department of Transportation 23,402
United States Department of Health and Human Services
Passed Through the State Department of Health & Welfare:
Temporary Assistance for Needy Families 93.558 1202IDTANF 15,111
Total U.S. Department of Health and Human Services 15,111
Total expenditures of federal awards 5,832,317
52
Bonneville Joint School District #93
Notes to Schedule of Expenditures of Federal Awards
Fiscal Year Ended June 30, 2014
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, 2014. The
information in this schedule is presented in accordance with the requirements of the Office of
Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non -
Profit Organizations. 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
assets 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 OMB Circular A-87, Cost Principles for State, Local
and Indian Tribal Governments, 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, 2014.
53
Bonneville Joint School District #93
Summary Schedule of Prior Year Audit Findings
Fiscal Year Ended Jane 30, 2014
Audit Finding Reference: none
Status of Prior Audit Finding: none
54