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HomeMy WebLinkAbout2016 Bonneville School District Audit Bonneville Joint School District #93 Financial Statements and Supplementary Information Year ended June 30, 2016 Bonneville Joint School District #93 Contents June 30, 2016 i INDEPENDENT AUDITOR’S REPORT .......................................................................................................... 1-2 MANAGEMENT’S DISCUSSION & ANALYSIS ........................................................................................... 3-9 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position ............................................................................................................................ 10 Statement of Activities ................................................................................................................................ 11 Fund Financial Statements Combined Balance Sheet Governmental Funds .................................................................................................................................... 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 ............................................................................................................ 17 Notes to Financial Statements ...................................................................................................................... 18-34 REQUIRED FINANCIAL INFORMATION General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual .......................................................................................................................................... 35-36 Debt Service Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual ................................................................................................................................................ 37 Capital Projects Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual ................................................................................................................................................ 38 Required Supplementary Information ................................................................................................................ 39 Notes to Required Supplementary Information ................................................................................................. 40 Bonneville Joint School District #93 Contents June 30, 2016 ii OTHER FINANCIAL INFORMATION All Nonmajor Funds Combining Balance Sheet .................................................................................................................................. 41 All Nonmajor Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ........................................... 42 All Agency Funds Combining Statement of Changes in Assets and Liabilities ........................................................................ 43-44 Taxes Receivable ......................................................................................................................................... 45-46 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 ........................................... 47-48 Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance ......................................................................................... 49-50 Schedule of Findings and Questioned Costs ................................................................................................ 51-52 Schedule of Expenditures of Federal Awards .............................................................................................. 53-54 Notes to Schedule of Expenditures of Federal Awards ..................................................................................... 55 Summary Schedule of Prior Audit Findings ..................................................................................................... 56 1 INDEPENDENT AUDITOR’S REPORT Board of Trustees Bonneville Joint School District #93 3497 N. Ammon Road Idaho Falls, Idaho Report on the Financial Statements 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, 2016, 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; 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 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 making those risk assessments, the auditor considers internal control relevant to the entity’s preparation 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, 2016, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States. 2 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States require that the Management’s Discussion and Analysis, budgetary comparison information, OPEB funding information, and schedule of employer’s share of net pension liability for PERSI-Base plan last 10 fiscal years and schedule of employer contributions PERSI-Base plan for last 10 fiscal years listed in the table of contents on pages 3 through 9 and pages 35 through 40 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, 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. Supplementary 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 accompanying supplementary information, such as the combining and individual nonmajor fund financial statements, the agency fund combining statement of changes in assets and liabilities, other schedules listed in the table of contents, and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), 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, the agency fund combining statement of changes in assets and liabilities, other schedules listed in the table of contents, and the schedule of expenditures of federal awards are the responsibility of management and was derived from and relate 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. In our opinion, the combining and individual nonmajor fund financial statements, the agency fund combining statement of changes in assets and liabilities 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 Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 31, 2016, 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. Wipfli LLP CPAs and Consultants Idaho Falls, Idaho October 31, 2016 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2016 3 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, 2016. 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 2016 are as follows: In total, net position increased $3,582,661 which represents a 20% increase from 2015 restated balance of $17,514,097. General revenues accounted for $65,363,165 in revenue or 79% of all revenues. Program specific revenues in the form of charges for services, operating grants and contributions, and capital grants and contributions accounted for $17,265,068 or 21% of total revenues of $82,628,233. Total assets of governmental activities increased by $61,046,226, as cash and cash equivalents increased by $62,723,196, receivables and prepaid expenses increased by $83,451, inventory decreased by $9,853, and capital assets decreased by $1,750,568. 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 $810,426. The District had $79,045,572 in expenses; only $17,265,068 of these expenses were offset by program specific charges for services, grants, or contributions. General revenues (primarily state support and local property taxes) of $65,363,165 were adequate to provide for these programs. Among major funds, the General Fund had $59,579,293 in revenues, and $58,713,848 in expenditures. The General Fund’s fund balance increased $627,396 from 2015. 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. Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2016 4 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 2016?” 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 type 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, Capital Projects, and Construction 2016 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. The District serves as a trustee, or fiduciary, for student organizations and programs. The assets of these organizations and programs do not directly benefit nor are they under the direct control of the District. The District’s responsibility is limited to ensuring the assets reported in these funds are used only for their intended purposes. Fiduciary activities are excluded from the government-wide financial statements because the District cannot use these assets to finance its operations. Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2016 5 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 2016 compared to 2015: 2016 2015 (as restated) Assets Current and other assets 93,808,142 31,011,348 Capital assets 74,724,613 76,475,181 Total assets 168,532,755 107,486,529 Deferred outflows of resources 14,322,269 4,955,790 Current and other liabilities 11,235,695 9,821,600 Long-term liabilities 139,363,455 72,041,119 Total liabilities 150,599,150 81,862,719 Deferred inflows of resources 11,159,116 13,065,503 Net investment in capital assets 18,775,611 15,294,016 Restricted 14,627,209 15,336,569 Unrestricted (12,306,062)(13,116,488) Total net position 21,096,758 17,514,097 Total assets of governmental activities increased by $61,046,226, as cash and cash equivalents increased by $62,723,196, receivables and prepaid expenses increased by $83,451, inventory decreased by $9,863, and capital assets decreased by $1,750,568. The District’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $21,096,758 at the close of the most recent fiscal year. Unrestricted net position, the part of net position that can be used to finance day-to-day activities without constraints established by grants or legal requirements, of the District increased by $810,426 after the prior year was restated for the net pension liability and the deferred outflows related to the pension. Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2016 6 The following table shows the changes in net position for fiscal years 2016 and 2015: 2016 2015 (as restated) Revenues Program revenues Charges for services 3,827,129 3,502,436 Operating grants and contributions 13,437,939 12,506,244 General revenues Property taxes 13,471,824 12,760,705 State aid 49,751,749 47,465,180 Federal aid 11,991 12,762 Other 2,127,601 1,526,564 Total revenues 82,628,233 77,773,891 Program expenses Instruction 41,986,395 40,491,728 Support services 11,770,282 9,914,037 Administrative 6,471,485 5,742,720 Business admin services 1,303,142 1,144,258 Operations 7,204,251 6,842,266 Transportation 3,062,749 2,795,855 Other support services 74,317 74,186 Community service 187,377 178,845 Noninstructional 3,753,903 3,495,601 Interest and fiscal charges 2,343,337 2,255,009 Capital improvements 888,334 280,243 Total expenses 79,045,572 73,214,748 Increase in net position 3,582,661 4,559,143 GOVERNMENTAL ACTIVITIES Governmental revenues come primarily from three sources. State aid of $59,408,826 consists of the state apportionment, other state grants, and revenue in lieu of taxes, and makes up 71.9% of revenues from governmental activities. Property taxes of $13,471,824 make up 16.3% of total revenues from governmental activities. Federal grants and assistance of $6,730,516 make up 8.14% of total revenues from governmental activities. Instruction expenditures including the support activities of support services, administrative, business admin services, operations, and transportation comprise $71,798,304 of District expenses. Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2016 7 The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. The following table shows the total cost of services and the net cost of services. That is, it identifies the cost of these services supported by tax revenue and unrestricted state entitlements. % of Total cost of Net cost of Total Services 2016 Services 2016 Instruction 53.13 41,986,395 38,015,597 Support services 14.89 11,770,282 7,081,235 Administrative 8.19 6,471,485 6,270,531 Business admin services 1.65 1,303,142 1,138,738 Operations 9.11 7,204,251 6,110,639 Transportation 3.87 3,062,749 1,007,412 Other support services .09 74,317 (224) Community service .24 187,377 39,642 Non-instructional 4.75 3,753,903 129,506 Interest and fiscal charges 2.96 2,343,337 1,311,917 Capital improvements 1.12 888,334 675,511 Total expenses 100 79,045,572 61,780,504 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. Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2016 8 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. Interest and Fiscal Charges: Interest and fiscal charges involve the transactions associated with the payment of interest and other related charges to the debt of the District. Capital Improvements: Capital Improvements include capital expenditures for the schools that are not capitalized under the District’s capitalization policy. THE DISTRICT’S FUNDS Information about the District’s major funds starts on page 12. These funds are accounted for using the modified accrual basis of accounting. All governmental funds had total revenues of $82,708,907 and expenditures of $84,384,707. The net change in fund balance for the year in the General Fund, Debt Service Fund, Capital Projects Fund and Construction 2016 Fund, was an increase of $627,396 a decrease of $430,910 and increase of $5,430 and an increase of $61,996,346 respectively. GENERAL FUND BUDGETING HIGHLIGHTS During the course of the fiscal 2016 year, the District did not amend its budget. For the General Fund, the budgeted revenue was $58,777,408 and the budgeted expense was $58,484,410. Actual revenue was $59,579,293 which includes $601,772 for leadership premiums to qualifying personnel and $303,845 in professional development funds. Actual expenditures were $58,713,848, which include expenditures related to the leadership premiums and professional development. CAPITAL ASSETS At the end of the fiscal year 2016, the District had $74,724,613 invested in land, buildings, furniture and equipment, and vehicles (net of accumulated depreciation). 2016 2015 Non-depreciable assets 7,884,449 6,414,620 Buildings and improvements 64,143,090 67,448,015 Equipment 1,318,302 1,457,420 Vehicles 1,378,772 1,155,126 Total capital assets, net 74,724,613 76,475,181 Overall capital assets decreased $1,750,568 from fiscal year 2015 to fiscal year 2016. 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, 2016 9 DEBT ADMINISTRATION At June 30, 2016, the District had five general obligation bond issues as follows: Total Due within one year 2009 Series Bond 1,730,000130,000 2012A Series Bond 11,780,000 2012C Series Bond 14,970,0002,320,000 2016A Series Bond 54,090,0001,175,000 2016B Series Bond 20,775,000 Total 103,345,0003,625,000 At June 30, 2016, the District’s overall legal debt margin was $75,780,440. CURRENT FINANCIAL ISSUES AND CONCERNS The Bonneville Joint School District #93 continues to be financially stable. In Fiscal Year 2016, the District was able to fund operating expenditures in the General Fund without deficit spending. This was due in part to an increase in state funding for k-12 education in 2015-2016 and increased enrollment in the District. For 2015-2016 the state legislature appropriated an increase of over 7% to the public education budget. Included in this appropriation was continued funding for the “career ladder”. This appropriation has a five-year implementation period designed to increase the beginning salaries for teachers. As with any new funding/reimbursement model there will be challenges as we work through the process. The most critical concern for the District continues to be providing adequate facilities for our growing student population. The District passed a bond in November 2015 for the construction of a new high school. Construction began in June of 2016, and is expected to be completed in time for the FY 18 school year. The District’s fifteen- year facility plan anticipates the need for a middle school and three elementary schools. The fifteen-year plan is reviewed often and updated with current information as it becomes available. COMPONENT UNIT The financial statements do not include the Bonneville Education Foundation, a component unit of the District. The financial information for the Foundation will be available at the District office. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the District’s finances and to show the District’s accountability for the money it receives. If you have questions about this report or need additional financial information contact Guy Wangsgard, Chief Financial/ Operations Officer, at Bonneville Joint School District #93, 3497 North Ammon Road, Idaho Falls, Idaho 83401 or email at GuyW@d93.k12.id.us. This page intentionally left blank. Statement of Net Position Governmental Activities ASSETS Cash and investments83,660,424 Property tax receivable, net5,307,734 Other receivables 4,718,144 Supplies inventory 107,498 Prepaid expenses 14,342 Land and construction in progress7,884,449 Depreciable buildings, equipment, and vehicles, net of depreciation66,840,164 Total assets 168,532,755 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding2,647,275 Related to pensions 11,674,994 Total deferred outflows of resources14,322,269 LIABILITIES Accounts payable 1,095,523 Accrued wages 5,891,968 Accrued employee benefits2,933,326 Interest payable 1,314,878 Long-term liabilities Net pension liability17,300,573 Premium on bonds payable17,247,623 Portion due or payable within one year General obligation bonds3,625,000 Other liabilities 165,846 Portion due or payable after one year General obligation bonds99,720,000 Other liabilities 1,304,413 Total liabilities 150,599,150 DEFFERED INFLOWS OF RESOURCES Related to pensions 11,159,116 Total deferred inflows of resources11,159,116 NET POSITION Net investment in capital assets18,775,611 Restricted for Capital improvements5,312,637 Debt service 8,831,626 Child nutrition 482,946 Unrestricted (12,306,062) Total net position21,096,758 Bonneville Joint School District #93 June 30, 2016 The accompanying notes are an integral part of these statements. 10 Statement of Activities Fiscal Year Ended June 30, 2016 Net (expense) revenue and changes in Program Revenues net position OperatingCapitalTotal Charges forgrants and grants andgovernmental Functions / ProgramsExpensesservicescontributionscontributionsactivities Governmental activities Instruction 41,986,395370,7883,600,010(38,015,597) Support services11,770,2822,054,7032,634,344(7,081,235) Administrative6,471,485200,954(6,270,531) Business admin services1,303,142164,404(1,138,738) Operations7,204,251139,719953,893(6,110,639) Transportation3,062,749114,1541,941,183(1,007,412) Other support services74,31774,541224 Community service187,37785,88561,850(39,642) Noninstructional3,753,903860,3992,763,998(129,506) Interest on long-term debt2,343,3371,031,420(1,311,917) Capital improvements888,334201,48111,342(675,511) Total governmental activities79,045,5723,827,12913,437,9390(61,780,504) General revenues Taxes Property taxes13,471,824 Property tax replacement249,029 Federal grants11,991 State aid - formula grants49,751,749 Other state revenues459,941 Unrestricted investments earnings36,339 Other local1,382,292 Total general revenues65,363,165 Change in net position3,582,661 Net position - beginning (as restated)17,514,097 Net position - ending21,096,758 Bonneville Joint School District #93 The accompanying notes are an integral part of these statements. 11 Bonneville Joint School District #93 Combined Balance Sheet Governmental Funds June 30, 2016 AllTotal DebtCapitalConstructionNonmajorGovernmental GeneralServiceProjects2016FundsFunds ASSETS Cash and investments8,364,0946,020,7734,598,71062,353,2902,323,55783,660,424 Receivables 0 Taxes - current1,262,5302,534,2431,015,515 0 4,812,288 Taxes - delinquent127,512276,61091,324 0 495,446 State apportionment2,366,832 00002,366,832 Federal grants 1,471,7211,471,721 Other 0000879,591879,591 Interfund receivable1,213,491 00001,213,491 Supplies inventory 0000107,498107,498 Prepaid expenses14,342 000014,342 Total assets13,348,8018,831,626 5,705,54962,353,2904,782,36795,021,633 LIABILITIES Accounts payable134,926 0 392,912356,944210,7411,095,523 Accrued wages5,278,822 000613,1465,891,968 Accrued employee benefits2,529,525 000403,8012,933,326 Interfund payable 00001,213,4911,213,491 Total liabilities7,943,2730392,912356,9442,441,17911,134,308 DEFERRED INFLOWS OF RESOURCES Unavailable revenue127,512276,61091,32400495,446 FUND BALANCES Nonspendable Inventory 000 107,498107,498 Prepaid expenses14,34214,342 Restricted for 0 Debt service8,555,0168,555,016 Child nutrition 0000375,448375,448 Other fund activities5,221,31361,996,3461,136,97668,354,635 Assigned1,234,443721,2661,955,709 Unassigned4,029,231 0 4,029,231 Total fund balances5,278,0168,555,0165,221,31361,996,3462,341,18883,391,879 Total liabilities, deferred inflows of resources, and fund balances13,348,8018,831,6265,705,54962,353,2904,782,36795,021,633 The accompanying notes are an integral part of these statements. 12 83,391,879 (14,600,348) (16,784,695) 74,724,613 495,446 Long-term liabilities at year end consisted of: Bonds payable(103,345,000) Accrued interest on the bonds(1,314,878) Compensated absences(165,846) OPEB obligation(1,304,413) (106,130,137) Total net position - governmental activities 21,096,758 AmountsreportedforgovernmentalactivitiesintheStatementofNetPosition are different because: Governmentalfundsreporttheeffectofpremiums,discountsandsimilar itemswhenthebondsarefirstissuedbytheDistrictwhereastheseamounts are deferred and amortized in the Statement of Activities. Long-termliabilities,includingbondspayable,arenotdueandpayableinthe current period and therefore are not reported as liabilities in the funds. Capitalassetsusedingovernmentalactivitiesarenotcurrentfinancial resourcesandthereforearenotreportedasassetsingovernmentalfunds.The costoftheassetsis$139,323,665andtheaccumulateddepreciationis $64,599,052. Propertytaxesreceivablewillbecollectedthisyearbutarenotavailablesoon enoughtopayforthecurrentperiod'sexpenditures,andthereforeare unearned in the funds. Thenetpensionliability(asset)andthedeferredoutflowsofresourcesand deferredinflowsofresourcesrelatedtopensionsareonlyreportedinthe StatementofNetPosition.Netpensionliability(asset)is$17,300,573, deferredinflowsofresourcesrelatedtopensionsis$11,159,116,anddeferred outflows of resources related to pensions is $11,674,994. Bonneville Joint School District #93 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2016 Total fund balances - governmental funds The accompanying notes are an integral part of these statements. 13 Bonneville Joint School District #93 Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Fiscal Year Ended June 30, 2016 AllTotal DebtCapitalConstructionNonmajorGovernmental GeneralServiceProjects2016FundsFunds REVENUES Property taxes3,566,7957,056,0422,844,980 0 13,467,817 Penalties and interest on delinquent taxes29,00136,86818,812 0 84,681 Earnings on investments36,339 00196,5394,942237,820 Food service 0000860,399860,399 Rental17,514 000 17,514 Other local1,470,398 0 92,808 0 338,1281,901,334 State apportionment Base43,974,989 000 43,974,989 Transportation1,941,183 000 1,941,183 Exceptional child72,450 000 72,450 Benefits5,776,760 000 5,776,760 Property tax replacement249,029 000 249,029 Other state revenue2,444,8351,031,420 003,918,1607,394,415 Federal grants and assistance 00006,730,5166,730,516 Total revenues59,579,2938,124,3302,956,600196,53911,852,14582,708,907 EXPENDITURES Current Instruction35,489,989 0 58,239 0 3,296,21538,844,443 Support services7,497,415 0 601,509 0 3,783,43011,882,354 Administration6,200,857 0 213,585 0 141,5096,555,951 Business operations807,125 0 331,613 0 164,4041,303,142 Operations5,917,451 0 872,259 0 179,2336,968,943 Transportation2,689,295 0 627,551 0 1,2933,318,139 Other support services 000074,54174,541 Community services111,716 00075,661187,377 Noninstructional 00003,871,2523,871,252 Debt service 0 8,557,027 00 8,557,027 Debt issue costs 0 49,312 0 111,988161,300 Facility acquisition 00564,9851,705,160390,0932,660,238 Total expenditures58,713,8488,606,3393,269,7411,817,14811,977,63184,384,707 Revenues over (under) expenditures 865,445(482,009)(313,141)(1,620,609)(125,486)(1,675,800) The accompanying notes are an integral part of these statements. 14 Bonneville Joint School District #93 Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Fiscal Year Ended June 30, 2016 AllTotal Debt Capital ConstructionNonmajorGovernmental GeneralServiceProjects2016FundsFunds OTHER FINANCING SOURCES (USES) General obligation bonds issued54,090,00054,090,000 Refunding bonds issued20,775,00020,775,000 Premium on bonds issued3,873,3749,526,95513,400,329 Payment to refunded bond escrow agent(24,597,275)(24,597,275) Operating transfers, net(238,049)0 318,571 0 (80,522)0 Total other financing sources (uses)(238,049)51,099318,57163,616,955(80,522)63,668,054 Revenues and other financing sources over (under) expenditures627,396(430,910)5,43061,996,346(206,008)61,992,254 Fund balance - July 1, 20154,650,6208,985,9265,215,883 0 2,547,19621,399,625 Fund balance - June 30, 20165,278,0168,555,0165,221,31361,996,3462,341,18883,391,879 The accompanying notes are an integral part of these statements. 15 Total net change in fund balances - governmental funds:61,992,254 (9,874,183) (1,750,568) (80,674) (46,890,000) 714,713 (528,881) Change in net position of governmental activities 3,582,661 AmountsreportedforgovernmentalactivitiesintheStatementofActivitiesaredifferent because: Governmentalfundsreporttheeffectofpremiums,discounts,andsimilaritemswhendebtis issuedwhereastheseamountsaredeferredandamortizedinthestatementofactivities.This amount is the net effect of these differences. Bonneville Joint School District #93 For Fiscal Year Ended June 30, 2016 Reconciliation of the Governmental Funds Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Capitaloutlaysarereportedingovernmentalfundsasexpenditures.However,inthe StatementofActivities,thecostofthoseassetsisallocatedovertheirestimatedusefullives as depreciation expense. This is the amount by which depreciation exceeded capital outlays. BecausesomepropertytaxeswillnotbecollectedforseveralmonthsaftertheDistrict's fiscalyearends,theyarenotconsidered'available'revenuesinthegovernmentalfunds. Unearned tax revenues decreased by $80,674 this year. Interestonlong-termdebtintheStatementofActivitiesdiffersfromtheamountreportedin thegovernmentalfundsbecauseinterestisrecognizedasanexpenditureinthefundwhenit isdue,andthusrequirestheuseofcurrentfinancialresources.IntheStatementof Activities,however,interestexpenseisrecognizedastheinterestaccrued,regardlessof whenitisdue.TheincreaseininterestexpensereportedintheStatementofActivitiesisthe net result of the increase in accrued interest on bonds by $528,881. Governmentalfundsreportbondproceedsascurrentfinancialresources.Incontrast,the StatementofActivitiestreatssuchissuanceofdebtasaliability.Governmentalfundsreport repaymentofbondprincipalasanexpenditure.Incontrast,theStatementofActivities treatssuchrepaymentsasareductioninlongtermliabilities.Thisistheamountbywhich proceeds exceeded repayments. Vestedemployeebenefitsarereportedinthegovernmentalfundswhenamountsarepaid. TheStatementofActivitiesreportsthevalueofbenefitsearnedduringtheyear.Changein OPEBobligation($88,512).Changeinnetpensionliability($7,809,563).Changein deferredoutflowsofresourcesrelatedtopensions$6,719,204.Changeindeferredinflows of resources related to pensions ($13,065,503). Change in compensated absences ($12,803). The accompanying notes are an integral part of these statements. 16 Agency Funds ASSETS Cash 828,527 Investments 447,823 Total assets 1,276,350 LIABILITIES Accounts payable 76,597 Due to student groups1,199,753 Total liabilities 1,276,350 Bonneville Joint School District #93 Fiduciary Funds Statement of Fiduciary Net Position June 30, 2016 The accompanying notes are an integral part of these statements. 17 This page intentionally left blank. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 18 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. General. The basic financial statements listed in the table of contents have been prepared in accordance with the American Institute of Certified Public Accountants’ Industry Audit Guide for Audits of State and Local Government Units. 2. Reporting Entity. The Bonneville Joint School District #93 (the District) is the basic level of government, which has financial accountability and control over all activities related to the public school education in the area served. The District receives funding from local, state, and federal government sources and must comply with the requirements of these funding source entities. The District is not included in any other governmental “reporting entity” as defined by GASB pronouncement, since Board members are elected by the public and have decision making authority, the authority to levy taxes, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. 3. Discretely Presented Component Unit. The Bonneville Joint School District #93 Education Foundation (the Foundation) is responsible for fund raising to support the District. The Board of the Foundation is appointed by the District and is accountable to the District. The Foundation is a non-profit organization and is presented on the accrual basis of accounting. The District has elected not to include the Foundation at June 30, 2016 as it is immaterial to the District. Complete financial information for the component unit may be obtained at the District’s administrative office. 4. Government-wide and Fund Financial Statements. The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the District. For the most part, the effect of interfund activity has been removed from these statements. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not included among program revenues are reported as general revenues. Separate financial statements are provided for governmental funds 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 Accounting. The District uses funds to report on its financial position and results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. Funds are classified into three categories: governmental, proprietary, and fiduciary. The emphasis of fund financial statements is on major governmental funds, each reported in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Major individual governmental funds are reported as separate columns in the fund financial statements. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 19 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. 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 20 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 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. 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 2015-2016 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 assigned fund balance to indicate an obligation to the District. The District budgets transfers from the General Fund to other funds to cover the costs incurred by these funds in excess of the revenues generated. Certain indirect costs are 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 21 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued State statutes authorize the District to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, and repurchase agreements. The District has elected to deposit cash in excess of immediate needs into the Local Government Investment Pool (LGIP). The LGIP 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 / Payables. During the course of operations, numerous transactions occur between individual funds and the General Fund for goods provided or services rendered. These receivables and payables are classified as ‘due from other funds’ or ‘due to other funds’ on the balance sheet. 10. Inventories. Supplies inventory consists of paper, food, new textbooks, and other supplies and equipment received at the end of the fiscal year, which had not yet been consumed. The cost is recorded as an expenditure at the time the item is consumed. Inventories are stated at cost on a first-in, first-out basis, which approximates market. Other supplies inventory on hand at year-end has not been recorded as inventory and was treated as expended when purchased. 11. Capital Assets. Capital assets, including land, buildings, improvements, and equipment assets are reported in the applicable governmental columns in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost of more than $10,000 and an 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: 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 reported in the governmental-wide financial statement. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 22 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 13. Pensions. For purposes of measuring the net pension liability and pension expense, information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (Base Plan) and additions to/deductions from Base Plan’s fiduciary net position have been determined on the same basis as they are reported by the Base Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 14. Long-term Obligations. Long-term debt is recognized as a liability of a governmental fund when due. For other long-term obligations, only that portion expected to be financed from expendable, available, financial resources is reported as a fund liability of a governmental fund. 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 has two items that qualify for reporting in this category and both occur on the government-wide statement of net position. The first item is a deferred charge on refunding that results from the difference in the carrying value of refunded debt and its reacquisition price and is amortized over the shorter of the life of the refunded or refunding debt. The District also reports deferred outflows of resources related to pensions for its proportionate shares of collective deferred outflows of resources related to pensions and District contributions to pension plans subsequent to the measurement date of the collective net pension liability (asset). 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 has two types of items, one of which arises under a modified accrual basis of accounting, and the other arises in the government wide financial statements, that qualify for reporting in this category. Accordingly, the one item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The District also reports deferred inflows of resources for its proportionate share of the collective deferred inflows of resources related to pensions on the government wide financial statements. 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 23 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 17. Fund Balance. In the fund financial statements, governmental funds report aggregate amounts for five classifications of fund balances based on the constraints imposed on the use of these resources. The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form – prepaid items or inventories or (b) legally or contractually required to be maintained intact. The spendable portion of the fund balance comprises the remaining four classifications: restricted, committed, assigned, and unassigned. Restricted fund balance: This classification reflects the constraints imposed on resources either (a) externally by creditors, grantors, contributions, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. Committed fund balance: These amounts can used only be for the specific purposes determined by a formal action of the District’s highest level of decision-making authority. The School Board is the highest level of decision-making authority for the District that can, by board action prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the board resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. This classification also includes contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. Assigned fund balance: This classification reflects the amounts constrained by the District’s “intent” to be used for specific purposes but do not meet the criteria to be classified as restricted or committed. The School Board has by resolution authorized management to assign fund balance. The board may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriation in the subsequent year’s appropriated budget. Assigned fund balances include all remaining amounts (except negative balances) that are reported in governmental funds, other than the General Fund, that are not classified as nonspendable and are neither restricted nor committed. Unassigned fund balance: This fund balance is the residual classification for the General Fund. It is also used to report negative fund balances in other governmental funds. 18. Risk Management. The District is exposed to a considerable number of risks of loss, including: (a) damage to and loss of property and contents; (b) employee torts; (c) professional liability, i.e. errors and omissions; (d) environmental damage; (e) workers’ compensation, i.e. employee injuries; and (f) medical insurance costs of employees. Commercial policies, transferring the risks of loss, except for relatively small deductible amounts, are purchased for property and content damage, employee torts, and professional liabilities. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. 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. Actual results could differ from those estimates. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 24 NOTE B CASH AND INVESTMENTS At June 30, 2016, the carrying amount was $11,983,910 and the bank balance of the District’s deposits was as follows: Bank Balance Insured by Federal Depository Insurance 750,000 Uninsured and uncollateralized 12,580,130 Totals 13,330,130 At June 30, 2016, the cost and fair market value of the District’s investments were as follows: Deposit and investment type Cost Fair Market Value Average Maturity Local Government Investment Pool 72,810,436 72,948,907 86 Days Total investments 72,810,436 72,948,907 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, 2016, $12,580,130 of the District’s deposits and certificates of deposit were exposed to custodial credit risk because it was uninsured and uncollateralized. Of the investments, $72,810,436 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. 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 25 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, 2016, balances of interfund amounts receivable or payable have been recorded. The interfund balances at June 30, 2016, were as follows: ReceivablePayable General Fund 1,213,491 Nonmajor Funds 1,213,491 Total 1,213,4911,213,491 The General Fund transferred $77,252 to Child Nutrition and $318,571 to Plant Facilities as required by State law. The federal programs transferred $157,774 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 $314,737 USDA Commodities during the 2015-2016 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. NOTE F 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, 2016, the limit for the District was 5% of $3,411,408,509 or $170,570,425. The debt service fund had $8,555,015 available and the general obligation debt was $103,345,000 leaving a legal debt margin of $75,780,440. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 26 NOTE G CAPITAL ASSETS Following is a summary of the capital assets at June 30, 2016: Balance Balance June 30, 2015 Additions Deletions Transfers June 30, 2016 Capital assets, not being depreciated Land Elementary 2,986,916 2,986,916 Secondary 3,107,374 3,107,374 Construction in progress 320,3301,839,159(218,255) (151,075) 1,790,159 Total capital assets, not being 6,414,6201,839,159(218,255) (151,075) 7,884,449 Capital assets, being depreciated Buildings Elementary 70,865,59640,000 70,905,596 Secondary 44,962,860111,000 151,075 45,224,935 Administration 4,489,974 4,489,974 Total buildings 120,318,430151,0000 151,075 120,620,505 Equipment Elementary 838,19262,118 900,310 Secondary 1,168,29925,117 1,193,416 Admin. 1,621,01724,050(57,900) 1,587,167 Total equipment 3,627,508111,285(57,900) 0 3,680,893 Vehicles 6,662,476611,216(135,874) 0 7,137,818 Total capital assets, being depreciated 130,608,414873,501(193,774) 151,075 131,439,216 Less accumulated depreciation for: Buildings (52,870,415)(3,607,000) (56,477,415) Equipment (2,170,088)(250,403)57,900 (2,362,591) Vehicles (5,507,350)(387,570)135,874 (5,759,046) Total accumulated depreciation (60,547,853)(4,244,973)193,774 0 (64,599,052) Total capital assets being depreciated, net 70,060,561(3,371,472)0 151,075 66,840,164 Governmental activities capital assets, net 76,475,181(1,532,313)(218,255) 0 74,724,613 Depreciation expense was charged to the functions of the primary government as follows: Governmental activities Instruction 3,579,852 Operations 277,551 Transportation 387,570 Total depreciation expense – governmental activities 4,244,973 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 27 NOTE H GENERAL OBLIGATION BOND ISSUES The District had five general obligation bond issues (2009, 2012A, 2012C, 2016A, and 2016B Series) outstanding at the end of the year with interest rates ranging from 2.0 to 5.0 percent. The 2009 Series bonds are scheduled to mature September of 2018. The 2012A and 2012C bonds are scheduled to mature September 2031 and September 2026, respectively. The 2016A and 2016 B are scheduled to mature September 2033 and September 2028, respectively. Future debt service requirements are as follows: Fiscal Year Ended June 30, Total Interest Principal 2017 8,092,808 4,467,808 3,625,000 2018 9,237,663 4,342,663 4,895,000 2019 7,428,575 4,198,575 3,230,000 2020 7,582,725 4,082,725 3,500,000 2021 7,610,575 3,965,575 3,645,000 2022-2026 41,338,200 17,128,200 24,210,000 2027-2031 48,674,200 9,734,200 38,940,000 2032-2033 22,758,750 1,458,750 21,300,000 Total 152,723,496 49,378,496 103,345,000 Changes to bond principal payable and future interest payable are summarized as follows: Principal 2012A Series 2012C Series 2016A Series 2016B Series 2009 Series 2007 Series Combined Total Balances at July 1, 2015 11,780,000 14,970,00023,955,000 5,750,00056,455,000 Additions 54,090,00020,775,000 74,865,000 Reductions 22,225,000 5,750,00027,975,000 Balances at June 30, 2016 11,780,000 14,970,00054,090,00020,775,0001,730,000 0103,345,000 Interest to be Provided Balances at July 1, 2015 8,831,049 4,054,82510,630,270 139,37423,655,518 Additions 29,992,4587,597,200 37,589,658 Reductions 587,599 648,85010,490,858 139,37411,866,681 Balances at June 30, 2016 8,243,450 3,405,97529,992,4587,597,200139,412 049,378,495 NOTE I CHANGES IN LONG-TERM LIABILITIES Following is a summary of the changes in long-term debt for the year ended June 30, 2016: Balance Balance Current July 1, 2015 Additions DeductionsJune 30, 2016 Balance Bonds payable 56,455,000 74,865,00027,975,000103,345,000 3,625,000 Premium on bonds 4,726,165 13,400,329878,87117,247,623 Employee benefits 1,368,944 101,3151,470,259 165,846 Total 62,550,109 88,366,64428,853,871122,062,882 6,178,043 Payment on the general obligation bonds are made by the Debt Service Fund from property taxes and state bond levy equalization funds. Employee benefits will be paid by the fund in which the employee works. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 28 NOTE J DEFEASED DEBT The District purchased U.S. Securities and deposited $24,597,274 to an irrevocable trust with an escrow agent to provide for all future debt service payments on $21,950,000 of the 2009 Series bonds. As a result, $21,950,000 of the 2009 Series bonds are defeased and the liability for those bonds has been removed from the government-wide statement of net assets. The 2009 Series debt remains outstanding. The reacquisition price exceeded the net carrying amount of the old debt by $2,647,275. This amount is being netted against the new debt and amortized over the remaining life of the refunded debt, which is the same as the life of the new debt issued. This advance refunding was undertaken to reduce total debt service payments over the next 13 years by $2,912,456 and resulted in an economic gain of $2,536,725. NOTE K PAYROLL EXPENDITURES AND RELATED LIABILITIES Teacher contracts were signed for the period September 2015, through June 2016, to be paid over the twelve months of September 2015, through August 2016. 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. 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 2016 the District contributed approximately $8.1 million to the plan for current premiums or approximately 87% of total premiums. Plan members receiving benefits contributed approximately $1,194,350 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 2016 were as follows: Medical Coverage Single $664.05 No Spouse W/Child $882.30 No Spouse W/Children $1,027.90 W/Spouse $1,096.85 W/Spouse + Child $1,379.00 W/Spouse + Children $1,379.00 Dental Coverage Delta Dental Willamette Dental Single $40.15 $43.61 No Spouse W/Child $70.50 $70.86 No Spouse W/Children $126.95 $110.14 W/Spouse $80.25 $70.86 W/Spouse + Child $146.80 $110.14 W/Spouse + Children $146.80 $110.14 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 29 NOTE L RETIREMENT HEALTHCARE PLAN, continued 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 for Bonneville Joint School District #93’s Post-Retirement Healthcare Plan: Annual required contribution 333,616 Interest on net OPEB obligation 51,676 Adjustment to annual required contribution (48,636) Annual OPEB cost (expense) 336,656 Contributions made (248,144) Increase in net OPEB obligation 88,512 Net OPEB obligation – beginning of year 1,215,901 Net OPEB obligation - end of year 1,304,413 Annual OPEB cost Percentage of OPEB cost contributed Net OPEB obligation $336,656 74% $1,304,413 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. Funded Status and Funding Progress. As of July 1, 2014, the most recent actuarial valuation date, the actuarial accrued liability (AAL) and the unfunded actuarial accrued liability (UAAL) for benefits was $2,724,093. 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 $38.3 million and the ratio of the UAAL to the covered payroll was 7.4%. 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 is presented as required supplementary information and presents 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. Actuarial Methods and Assumptions. 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. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 30 NOTE L RETIREMENT HEALTHCARE PLAN, continued In the July 1, 2014, 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, 44.8% 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 7% for medical, 7% for prescription drugs, and 7% for dental initially, decreasing approximately .5% per year for medical, .5% per year for prescription drugs, and .5% per year for dental until reaching an ultimate rate of 4.5%. 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 2015-2016 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. NOTE N PENSION PLAN Plan Description The District contributes to the Base Plan which is a cost sharing multiple-employer defined benefit pension plan administered by Public Employee Retirement System of Idaho (PERSI or System) that covers substantially all employees of the State of Idaho, its agencies and various participating political subdivisions. The cost to administer the plan is financed through the contributions and investment earnings of the plan. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Responsibility for administration of the Base Plan is assigned to the Board comprised of five members appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members with at least ten years of service and three members who are Idaho citizens not members of the Base Plan except by reason of having served on the Board. Pension Benefits The Base Plan provides retirement, disability, death, and survivors of eligible members or beneficiaries. Benefits are based on members’ years of service, age, and highest average salary. Members become fully vested in their retirement benefits with five years of credited service (5 months for elected or appointed officials). Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. The annual service retirement allowance for each month of credited service is 2.0% of the average monthly salary for the highest consecutive 42 months. The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature. The Base Plan is required to provide a 1% minimum cost of living increase per year provided the Consumer Price Index increases 1% or more. The PERSI Board has the authority to provide higher cost of living increases to a maximum of the Consumer Price Index movement or 6%, whichever is less; however, any amount above the 1% minimum is subject to review by the Idaho Legislature. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 31 NOTE N PENSION PLAN, continued Member and Employer Contributions Member and employer contributions paid to the Base Plan are set by statute and are established as a percent of covered compensation and earnings from investments. Contribution rates are determined by the PERSI Board within limitations, as defined by state law. The Board may make periodic changes to employer and employee contribution rates (expressed as percentages of annual covered payroll) if current rates are actuarially determined to be inadequate or in excess to accumulate sufficient assets to pay benefits when due. The contribution rates for employees are set by statute at 60% of the employer rate. As of June 30, 2015 it was 6.79% for general employees and 8.36% for police and firefighters. The employer contribution rate is set by the Retirement Board and was 11.32% for general employees and 11.66 % for police and firefighters. The District’s contributions were $4,338,975 for the year ended June 30, 2016. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2016, the District reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of July 1, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The District proportion of the net pension liability was based on the District’s share of contributions in the Base Plan pension plan relative to the total contributions of all participating PERSI Base Plan employers. At July 1, 2015, the District’s proportion was .013137973 percent. For the year ended June 30, 2016, the District recognized pension expense of $3,522,859. At June 30, 2016, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 2,073,967 Changes in assumptions or other inputs 630,060 Net difference between projected and actual earnings on pension plan investments 6,367,092 9,085,149 Changes in the employer’s proportion and differences between the employer’s contribution and the employer’s proportionate contributions 338,867 District contributions subsequent to the measurement date 4,338,975 Total 11,674,994 11,159,116 $4,338,975 reported as deferred outflows of resources related to pensions resulting from Employer contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2017. The average of the expected remaining service lives of all employees that are provided with pensions through the System (active and inactive employees) determined at July 1, 2014, the beginning of the measurement period ended June 30, 2015 is 5.5 years and 5.6 years for the measurement period ended June 30, 2014. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 32 NOTE N PENSION PLAN, continued Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense (revenue) as follows: Year ended June 30: 2016 (1,849,978) 2017 (1,849,978) 2018 (1,849,978) 2019 1,212,797 2020 (143,694) Actuarial Assumptions Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present value of the projected benefits of each individual included in the actuarial valuation is allocated as a level percentage of each year’s earnings of the individual between entry age and assumed exit age. The Base Plan amortizes any unfunded actuarial accrued liability based on a level percentage of payroll. The maximum amortization period for the Base Plan permitted under Section 50-1322, Idaho Code, is 25 years. The total pension liability in the July 1, 2015, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.25% Salary increases 4.5 – 10.00% Salary inflation 3.75% Investment rate of return 7.10%, net investment expenses Cost-of-living adjustments 1% Mortality rates were based on the RP – 2000 combined table for healthy males or females as appropriate with the following offsets:  Set back 3 years for teachers  No offset for male fire and police  Forward one year for female fire and police  Set back one year for all general employees and all beneficiaries An experience study was performed in 2012 for the period July 1, 2007 through June 30, 2011 which reviewed all economic and demographic assumptions other than mortality. Mortality and all economic assumptions were studied in 2014 for the period from July 1, 2009 through June 30, 2013. The Total Pension Liability as of June 30, 2015, is based on the results of an actuarial valuation for that date. The long-term expected rate of return on pension plan investments was determined using the building bock approach and a forward-looking model in which best estimate rates or expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 33 NOTE N PENSION PLAN, continued Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions in analyzing the System’s asset allocation. The assumptions and the System’s formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System’s assets. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of January 1, 2014. Asset Class Index Target Allocation Long-Term Expected Real Rate of Return* Core Fixed Income Barclays Aggregate 30.00% 0.80% Broad US Equities Russell 3000 55.00% 6.90% Developed Foreign Equities ACWI ex USA 15.00% 7.55% *Arithmetic return Actuarial Assumptions Assumed Inflation – Mean 3.25% Assumed Inflation – Standard Deviation 2.00% Portfolio Arithmetic Mean Return 8.42% Portfolio Long-Term Expected Geometric Rate of Return 7.50% Assumed Investment Expenses 0.40% Long-Term Expected Geometric Rate of Return, Net of Investment Expenses 7.10% Discount Rate The discount rate used to measure the total pension liability was 7.10%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on these assumptions, the pension plans’ net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. The long-term expected rate of return was determined net of pension plan investment expense but without reduction for pension plan administrative expense. Sensitivity of the Employer’s proportionate share of the net pension liability to changes in the discount rate. The following presents the Employer’s proportionate share of the net pension liability calculated using the discount rate of 7.10 percent, as well as what the Employer’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.10 percent) or 1- percentage-point higher (8.10 percent) than the current rate: 1% Decrease (6.10%) Current Discount Rate (7.10%) 1% Increase (8.10%) Employer’s proportionate share of the net pension liability (asset) 42,137,91117,300,573 (3,348,379) Bonneville Joint School District #93 Notes to Financial Statements June 30, 2016 34 NOTE N PENSION PLAN, continued Pension plan fiduciary net position Detailed information about the pension plan’s fiduciary net position is available in the separately issued PERSI financial report. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Payables to the pension plan At June 30, 2016, the District reported no payables to the defined benefit pension plan for legally required employer contributions and for legally required employee contributions which had been withheld from employee wages but not yet remitted to PERSI. NOTE 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 CONSTRUCTION COMMITMENTS During the year ended June 30, 2016, the District contracted with various contractors to do certain projects, revisions, and additions. The following construction contracts were in progress at June 30, 2016: Average Expenditures Remaining Project Original bid plus changes percent complete Recorded Currently construction obligation BHS Stair Replacement 121,41582%99,213 22,202 New High School – Phase 1 6,388,13526%1,690,946 4,697,189 Total 6,509,5501,790,159 4,719,391 NOTE Q PRIOR YEAR RESTATEMENT OF NET POSITION As a result of an error in the amount of net pension liability included at June 30, 2015, the governmental activities beginning net position was restated to subtract the increased net pension liability for PERSI of $3,953,835. The restated beginning net position at July 1, 2015 after this adjustment is $17,514,097. NOTE R SUBSEQUENT EVENTS Management of the District evaluated subsequent events through October 31, 2016, which was the date the financial statements were available to be issued. At that time the District was in negotiations with contractors to complete the remaining phases of the new high school’s building project, the total estimated cost as of the date of this report is $48,800,000. There were no other subsequent type events, identified by management of the District, that are required to be disclosed. REQUIRED FINANCIAL INFORMATION Favorable (Unfavorable) REVENUES Budget Actual Variance Property taxes4,520,0003,566,795(953,205) Penalties and interest on delinquent taxes25,00029,0014,001 Earnings on investments8,00036,33928,339 Tuition64,20046,651(17,549) Rental20,00017,514(2,486) Other local906,8711,423,747516,876 State apportionment Base43,222,78743,974,989752,202 Transportation1,899,0201,941,18342,163 Exceptional child25,00072,45047,450 Benefits5,675,5415,776,760101,219 Property tax replacement248,117249,029912 Other state revenue2,162,8722,444,835281,963 Total revenues58,777,40859,579,293801,885 EXPENDITURES Instruction Elementary 16,029,63816,072,554(42,916) Secondary14,279,22414,488,862(209,638) Alternative school855,006839,49415,512 Special education program2,900,3143,228,372(328,058) Special education preschool program206,438203,1513,287 Gifted and talented60,00054,0695,931 Interscholastic program492,013433,35358,660 School activity 179,294170,1349,160 Total instruction35,001,92735,489,989(488,062) Support services Attendance, guidance, and health1,675,3881,647,17228,216 Special education support services2,758,5562,608,145150,411 Instructional improvement1,125,5771,208,741(83,164) Educational media477,844456,33621,508 Instruction related technology1,606,9671,577,02129,946 Total support services7,644,3327,497,415146,917 Fiscal Year Ended June 30, 2016 Bonneville Joint School District #93 -Budget to Actual- General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance See Independent Auditor's Report. 35 Favorable (Unfavorable) EXPENDITURES, continued Budget Actual Variance Administration Board of Education105,008111,522(6,514) District administration1,847,2611,818,65828,603 School administration4,157,5554,270,677(113,122) Total administration6,109,8246,200,857(91,033) Business Administrative Services Business operations645,392611,33034,062 Central services145,614123,36922,245 Administrative Technology Services89,20072,42616,774 Total business administrative services880,206807,12573,081 Operations Building care (custodial)4,459,2334,232,422226,811 Maintenance1,391,7221,345,05346,669 Security344,798339,9764,822 Total operations6,195,7535,917,451278,302 Transportation2,610,2422,689,295(79,053) Community service42,126111,716(69,590) Total expenditures58,484,41058,713,848(229,438) Revenues over (under) expenditures292,998865,445572,447 OTHER FINANCING SOURCES (USES) Operating transfers, net(140,048)(238,049)(98,001) Revenues and other financing sources over (under) expenditures152,950627,396474,446 Fund balance - July 1, 20154,650,620 Fund balance - June 30, 20165,278,016 Fiscal Year Ended June 30, 2016 Bonneville Joint School District #93 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance -Budget to Actual- See Independent Auditor's Report. 36 Favorable (Unfavorable) BudgetActualVariance REVENUES Property taxes7,900,5237,056,042(844,481) Penalty and interest on delinquent taxes50,00036,868(13,132) Earnings on investments 000 Other state revenue887,7561,031,420143,664 Total revenues8,838,2798,124,330(713,949) EXPENDITURES Debt service Principal6,025,0006,025,0000 Interest2,532,0382,532,02711 Fees 0 49,312(49,312) Total expenditures8,557,0388,606,339(49,301) Revenues over (under) expenditures281,241(482,009)(664,648) OTHER FINANCING SOURCES (USES) Refunding bonds issued 0 20,775,00020,775,000 Premium on bonds issued 0 3,873,3743,873,374 Payment to refunded bond escrow agent 0 (24,597,275)(24,597,275) Total other financing sources (uses)051,09951,099 Revenues and other financing sources over (under) expenditures 281,241(430,910)(712,151) Fund balance - July 1, 20158,985,926 Fund balance - June 30, 20168,555,016 Bonneville Joint School District #93 Debt Service Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Fiscal Year Ended June 30, 2016 -Budget to Actual- See Independent Auditor's Report. 37 Favorable (Unfavorable) BudgetActualVariance REVENUES Property taxes2,800,0002,844,98044,980 Penalties and interest on delinquent taxes 0 18,81218,812 Other local 0 92,80892,808 Total revenues2,800,0002,956,600156,600 EXPENDITURES Instruction 8,50058,239(49,739) Support services415,000601,509(186,509) Administration20,000213,585(193,585) Business administrative services384,600331,61352,987 Operations1,219,370872,259347,111 Transportation662,255627,55134,704 Facility acquisition446,500564,985(118,485) Total expenditures3,156,2253,269,741(113,516) Revenues over (under) expenditures (356,225)(313,141)43,084 OTHER FINANCING SOURCES (USES) Operating transfers, net190,255318,571128,316 Revenues and other financing sources over (under) expenditures (165,970)5,430171,400 Fund balance - July 1, 20155,215,883 Fund balance - June 30, 20165,221,313 Bonneville Joint School District #93 Capital Projects Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Fiscal Year Ended June 30, 2016 -Budget to Actual- See Independent Auditor's Report. 38 ( a )( b )(b - a)(a / b)( c ) [(b - a) / c] 6/30/2016 - 2,819,069 2,819,069 - 38,322,048 7.36% 6/30/2015 - 2,724,093 2,724,093 - 36,799,863 7.40% 6/30/2014 - 3,724,390 3,724,390 - 34,937,428 10.66% 20162015 Employer's portion of net pension liability 1.313797300%1.289265200% Employers proportionate share of the net pension liability 17,300,5739,491,010 Employer's covered-employee payroll 38,322,04836,799,863 Employer's proportional share of the net pension liability as a percentage of its coverd-employee payroll 45.15%25.79% Plan fiduciary net position as a percentage of the total pension liability 94.95%94.95% 2016 Data reported is measured as of June 30, 2015 (measurement date). 20162015 Statutorily required contribution 4,296,1174,190,112 Contributions in relation to the statutorily required contribution4,338,9754,165,658 Contribution (deficiency) excess 42,858(24,454) Employer's covered-employee payroll 38,322,04836,799,863 Contributions as a percentage of covered-employee payroll 11.3224%11.3198% 2016 Data reported is measured as of June 30, 2016. Required Supplementary Information Bonneville Joint School District #93 General Employees' Other Postemployment Benefits Plan Fiscal Year Ended June 30, 2016 Actuarial Valuation Date Schedule of Funding Progess UAAL as a Percentage of Covered Payroll Covered Payroll Funded Ratio Unfunded AAL (UAAL) Actuarial Accrued Liability (AAL) - Projected Unit Credit Actuarial Value of Assets Schedule of Employer's Share of Net Pension Liability PERSI-Base Plan Last 10-Fiscal Years * *GASBStatementNo.68requirestenyearsofinformationtobepresentedinthistable.However,untilafull10- year trend is compiled, the District will present information for those years for which information is available. Schedule of Employer Contributions PERSI-Base Plan Last 10-Fiscal Years * *GASBStatementNo.68requirestenyearsofinformationtobepresentedinthistable.However,untilafull10- year trend is compiled, the District will present information for those years for which information is available. See Independent Auditor's Report. 39 NOTE A BUDGET ADOPTION NOTE BEXCESS OF ACTUAL EXPENDITURES OVER BUDGET Bonneville Joint School District #93 Notes to Required Supplementary Information Fiscal Year Ended June 30, 2016 Budgetsareadoptedonabasisconsistentwithgenerallyacceptedaccountingprinciples.Annual appropriated budgets are adopted for the General Fund. All annual appropriations lapse at year end. Actual expenditures exceeded budget for the General Fund, Debt Service Fund, and Capital Projects Fund. See Independent Auditor's Report. 40 This page intentionally left blank. OTHER FINANCIAL INFORMATION Pu b l i c I d a h o I m p r o v i n g P e r k i n s I I I A l l Ch i l d F e d e r a l C o m m u n i t y S p e c i a l D r i v e r ' s P r o f e s s i o n a l S c h o o l S u b s t a n c e T e l f o r d Ba s i c M i g r a n t I D E A I D E A P r o f e s s i o n a l T e a c h e rConstructionNonmajor Nut r i t i o n F o r e s t R e s o u r c e P r o j e c t s E d Te c h n i c a l T e c h n o l o g y Ab u s e G r a n t M e d i c a i d Pr o g r a m s E d u c a t i o n S c h o o l - A g e P r e s c h o o l T e c h n i c a l T i t l e I I I Q u a l i t y2012Funds AS S E T S Ca s h a n d i n v e s t m e n t s 6 0 7 , 2 5 6 1 0 8 , 2 4 3 2 0 , 8 9 7 3 6 2 , 4 2 8 4 6 , 2 3 7 3 0 , 6 5 5 3 4 2 , 0 9 2 9 5 , 0 2 8 4 , 9 0 4 00 0 0 0 0 0 0 705,8172,323,557 Fe d e r a l g r a n t s r e c e i v a b l e 6 7 , 7 5 0 1 6 , 8 7 5 53 4 , 3 2 7 1 5 , 0 3 1 6 1 9 , 0 3 5 1 2 , 6 9 0 9 5 , 9 8 6 8 , 7 6 8 1 0 1 , 2 5 9 1 , 4 7 1 , 7 2 1 St a t e r e c e i v a b l e s 5 , 9 1 9 2 1 9 , 3 4 5 6 4 2 , 1 7 4 867,438 Ot h e r r e c e i v a b l e s 9 , 8 1 0 2 , 3 4 3 12,153 Su p p l i e s i n v e n t o r y 10 7 , 4 9 8 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 107,498 To t a l a s s e t s 7 9 2 , 3 1 4 1 1 0 , 5 8 6 3 7 , 7 7 2 3 6 2 , 4 2 8 5 2 , 1 5 6 2 5 0 , 0 0 0 3 4 2 , 0 9 2 9 5 , 0 2 8 4 , 9 0 4 6 4 2 , 1 7 4 5 3 4 , 3 2 7 1 5 , 0 3 1 6 1 9 , 0 3 5 1 2 , 6 9 0 9 5 , 9 8 6 8 , 7 6 8 1 0 1 , 2 5 9 7 0 5 , 8 1 74,782,367 LI A B I L I T I E S A N D FU N D E Q U I T Y LI A B I L I T I E S Ac c o u n t s p a y a b l e 9 9 , 0 2 6 6 , 2 7 7 1 , 5 5 6 2 , 2 5 5 3 3 1 , 5 4 1 2 9 , 0 5 9 3 , 6 1 4 9 0 9 4 , 9 0 1 6 6 6 3 , 3 2 9 5 7 , 5 7 5 2 1 0 , 7 4 1 Ac c r u e d w a g e s 1 2 2 , 2 2 4 0 2, 8 5 5 0 33 4 2 0 , 7 5 1 1 5 0 00 20 2 , 9 4 9 1 0 7 , 9 1 3 1 , 9 0 5 1 4 3 , 7 7 9 4 , 0 0 2 2 , 0 7 3 1 , 8 7 8 2 , 3 3 3 0613,146 Ac c r u e d e m p l o y e e b e n e f i t s 8 8 , 1 1 8 1 , 9 7 7 6 8 7 , 1 5 6 1 3 1 3 9 , 4 5 7 4 1 , 8 1 9 1 , 8 1 2 1 1 6 , 1 4 1 3 , 8 7 1 1 , 1 4 0 1 , 7 4 0 4 8 9 4 0 3 , 8 0 1 In t e r f u n d p a y a b l e 00 0 0 0 0 0 0 0 27 0 , 7 0 9 3 8 0 , 9 8 1 1 0 , 4 0 5 3 5 4 , 2 1 4 4 , 8 1 7 9 2 , 1 0 7 5 , 1 5 0 9 5 , 1 0 8 01,213,491 To t a l l i a b i l i t i e s 3 0 9 , 3 6 8 6 , 2 7 7 4, 8 3 2 1 , 5 5 6 4 0 2 3 0 , 1 6 2 1 9 6 1, 5 4 1 0 6 4 2 , 1 7 4 5 3 4 , 3 2 7 1 5 , 03 1 6 1 9 , 0 3 5 1 2 , 6 9 0 9 5 , 9 8 6 8 , 768101,25957,5752,441,179 FU N D E Q U I T Y Non s p e n d a b l e 1 0 7 , 4 9 8 107,498 Re s t r i c t e d 37 5 , 4 4 8 1 0 4 , 3 0 9 3 2 , 9 4 0 5 1 , 7 5 4 2 0 1 , 3 4 0 9 3 , 4 8 7 4 , 9 0 4 648,2421,512,424 As s i g n e d 36 0 , 8 7 2 2 1 9 , 8 3 8 1 4 0 , 5 5 6 721,266 To t a l f u n d e q u i t y 48 2 , 9 4 6 1 0 4 , 3 0 9 3 2 , 9 4 0 3 6 0 , 8 7 2 5 1 , 7 5 4 2 1 9 , 8 3 8 3 4 1 , 8 9 6 9 3 , 4 8 7 4 , 9 0 4 0 0 0 0 0 0 0 0 6 4 8 , 2 4 2 2 , 3 4 1 , 1 8 8 To t a l l i a b i l i t i e s an d f u n d e q u i t y 79 2 , 3 1 4 1 1 0 , 5 8 6 3 7 , 7 7 2 3 6 2 , 4 2 8 5 2 , 1 5 6 2 5 0 , 0 0 0 3 4 2 , 0 9 2 9 5 , 0 2 8 4 , 9 0 4 6 4 2 , 1 7 4 5 3 4 , 3 2 7 1 5 , 0 3 1 6 1 9 , 0 3 5 1 2 , 6 9 0 9 5 , 9 8 6 8 , 7 6 8 1 0 1 , 2 5 9 7 0 5 , 8 1 7 4 , 7 8 2 , 3 6 7 Al l N o n m a j o r F u n d s Co m b i n i n g B a l a n c e S h e e t Ju n e 3 0 , 2 0 1 6 Se e I n d e p e n d e n t A ud i t o r ' s R e p o r t . 41 Pu b l i c I d a h o I m p r o v i n g P e r k i n s I I I I m p r o v i n g A l l Ch i l d F e d e r a l C o m m u n i t y S p e c i a l D r i v e r ' s P r o f e s s i o n a l S c h o o l S u b s t a nc e T e l f o r d B a s i c M i g r a n t I D E A I D E A P r o f e s s i o n a l T e a c h e r C o n s t r u c t i o n C onstructionNonmajor Nu t r i t i o n F o r e s t R e s o u r c e P r o j e c t s E d T e c h n i c a l T e c h n o l o g y A b u s e G r a n t M e di c a i d P r o g r a m s E d u c a t i o n S c h o o l - A g e P r e s c h o o l T e c h n i c a l T i t l e I I I Q u a lity20092012Funds RE V E N U E S Ea r n i n g s o n i n v e s t m e n t s 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,3723,5704,942 Fo o d s e r v i c e 8 6 0 , 3 9 9 860,399 Ot h e r l o c a l 2 , 0 4 9 00 18 9 , 4 4 8 3 8 , 6 4 5 0 10 7 , 9 8 6 0 0 0 0 0 0 0 0 0 0 0 0 338,128 Ot h e r s t a t e r e v e n u e 1 2 , 6 6 6 6 2 7 , 6 4 6 7 0 5 , 5 0 1 1 5 4 , 2 0 6 2 , 4 1 8 , 1 4 1 3,918,160 Fe d e r a l g r a n t s a n d a s s i s t a n c e 2 , 7 5 6 , 6 0 7 5 5 , 0 8 7 2 8 , 9 6 4 1 2 , 1 9 9 00 0 0 0 0 1, 5 4 3 , 7 7 9 3 9 , 6 2 5 1 , 8 2 9 , 7 8 1 6 1 , 0 2 3 9 5 , 9 8 6 5 6 , 6 1 6 2 5 0 , 8 4 9 006,730,516 To t a l r e v e n u e s 3 , 6 1 9 , 0 5 5 5 5 , 0 8 7 2 8 , 9 6 4 2 0 1 , 6 4 7 5 1 , 3 1 1 6 2 7 , 6 4 6 8 1 3 , 4 8 7 1 5 4 , 2 0 6 0 2 , 4 1 8 , 1 4 1 1 , 5 4 3 , 7 7 9 3 9 , 6 2 5 1 , 8 2 9 , 7 8 1 6 1 , 0 2 3 9 5 , 9 8 6 5 6 , 6 1 6 2 5 0 , 8 4 91,3723,57011,852,145 EX P E N D I T U R E S In s t r u c t i o n El e m e n t a r y 0 1, 5 0 0 0 18 , 7 7 9 00 0 0 0 0 1, 0 0 3 , 7 2 0 000030,7110001,054,710 Se c o n d a r y 1 8 1 , 4 3 6 2 3 7 3 3 , 1 1 1 2 1 , 8 8 6 1 3 6 , 6 7 1 Al t e r n a t i v e s c h o o l 00 0 3, 6 8 0 00 0 0 8, 5 2 7 0 12 , 3 9 8 0000000024,605 Sp e c i a l e d u c a t i o n p r o g r a m 36 3 , 3 9 8 1 , 1 5 0 , 7 6 8 1,514,166 Sp e c i a l e d u c p r e s c h o o l p r o g r a m 00 0 0 0 0 0 0 0 40 00 0 56,1640000056,204 Sc h o o l a c t i v i t y 4 1 , 5 9 5 2 , 5 0 5 44,100 Su m m e r s c h o o l 00 0 0 0 0 0 0 0 0 50 , 8 7 3 3 , 3 5 8 000000054,231 Vo c a t i o n a l 34 0 , 5 0 1 71,027411,528 Su p p o r t s e r v i c e s At t e n d a n c e , g u i d a n c e , a n d h e a l t h 85 5 , 7 2 7 5 1 , 5 3 9 3 , 8 9 8 6 1 , 2 4 9 Sp e c i a l e d u c s u p p o r t s e r v i c e s 00 0 0 0 0 0 0 0 2, 0 4 8 , 9 7 7 00 627,4744,859000002,681,310 In s t r u c t i o n a l i m p r o v e m e n t 7, 3 5 3 2 8 , 5 0 5 7 0 , 3 4 4 1 , 9 4 7 2 0 3 , 3 0 3 2 , 3 5 4 4 , 0 1 9 2 4 3 , 0 1 6 5 6 0 , 8 4 1 Ed u c a t i o n a l m e d i a 00 0 6, 8 9 5 00 0 0 0 0 4, 0 1 0 0000000010,905 In s t r u c t i o n a l r e la t e d t e c h n o l o g y 1, 9 9 3 2 3 , 6 0 5 4 2 2 , 1 5 2 2 1 , 3 7 5 469,125 Sc h o o l a d m i n i s t r a t i o n 00 0 52 5 0 15 , 4 2 3 0 1, 1 7 2 1 , 0 3 0 ( 1 ) 9 6 , 8 2 0 00018,70707,83300141,509 Bu s i n e s s A d m i n i s t r a t i v e S e r v i c e s 16 4 , 4 0 4 164,404 Op e r a t i o n s 00 0 70 , 2 9 0 0 59 1 0 96 , 7 6 1 0 0 0 0 0 0 0 0 0 0 11,591179,233 Tr a n s p o r t a t i o n 1, 2 9 3 1,293 Ot h e r s u p p o r t s e r v i c e s 00 0 0 0 0 0 0 0 0 38 , 2 7 4 3 6 , 2 6 7 000000074,541 Co m m u n i t y s e r v i c e s 2 9 , 2 6 8 1 , 3 2 5 2 6 , 1 7 3 1 8 , 8 9 5 75,661 Non i n s t r u c t i o n a l s e r v i c e s 3 , 8 5 7 , 9 6 1 00 13 , 2 9 1 00 0 0 0 0 0 0 0 0 0 0 0 0 0 3,871,252 Fa c i l i t y a c q u i s i t i o n 11 , 3 4 2 255,865122,886390,093 To t a l e x p e n d i t u r e s 3 , 8 5 7 , 9 6 1 4 3 , 0 9 6 2 9 , 2 6 8 2 0 8 , 0 7 2 2 7 , 4 6 6 4 0 8 , 6 2 5 6 6 8 , 2 4 2 1 0 0 , 2 0 2 9 , 5 5 7 2 , 4 1 8 , 1 4 1 1 , 4 8 2 , 7 7 9 3 9 , 6 2 5 1 , 8 2 9 , 7 8 1 6 1 , 0 2 3 9 5 , 9 8 6 5 6 , 6 16250,849255,865134,47711,977,631 Re v e n u e s o v e r ( u n d e r ) e x p e n d i t u r e s ( 2 3 8 , 90 6 ) 1 1 , 9 9 1 ( 3 0 4 ) ( 6 , 4 2 5 ) 2 3 , 8 4 5 2 1 9 , 0 2 1 1 4 5 , 2 4 5 5 4 , 0 0 4 ( 9 , 5 5 7 ) 0 6 1 , 0 0 0 0 0 0 0 0 0 ( 2 5 4 , 4 9 3 ) ( 1 3 0 , 9 0 7 ) ( 1 25,486) OT H E R F I N A N C I N G SO U R C E S ( U S E S ) Net t r a n s f e r s ( 1 9 , 5 2 2 ) (6 1 , 0 0 0 ) (80,522) To t a l o t h e r f i n a n c i n g s o u r c e s ( 1 9 , 5 2 2 ) (6 1 , 0 0 0 ) (80,522) Re v e n u e s a n d o t h e r f i n a n c i n g s o u n c e s ov e r ( u n d e r ) e x p e n d i t u r e s a n d o t h e r fi n a n c i n g s o u r c e s ( u s e s ) ( 2 5 8 , 4 2 8 ) 1 1 , 9 9 1 ( 3 0 4 ) ( 6 , 4 2 5 ) 2 3 , 8 4 5 2 1 9 , 0 2 1 1 4 5 , 2 4 5 5 4 , 0 0 4 ( 9 , 5 5 7 ) (254,493)(130,907)(206,008) Fu n d b a l a n c e - J u l y 1 , 2 0 1 5 7 4 1 , 3 7 4 9 2 , 3 1 8 3 3 , 2 4 4 3 6 7 , 2 9 7 2 7 , 9 0 9 8 1 7 1 9 6 , 6 5 1 3 9 , 4 8 3 1 4 , 4 6 1 0 0 0 0 0 0 0 0 2 5 4 , 4 9 3 7 7 9 , 1 4 9 2 , 5 4 7 , 1 9 6 Fu n d b a l a n c e - J u n e 3 0 , 2 0 1 6 4 8 2 , 9 4 6 1 0 4 , 3 0 9 3 2 , 9 4 0 3 6 0 , 8 7 2 5 1 , 7 5 4 2 1 9 , 8 3 8 3 4 1 , 8 9 6 9 3 , 4 8 7 4 , 9 0 4 0 0 0 0 0 0 0 0 0 6 4 8 , 2 4 2 2 , 3 4 1 , 1 8 8 Fi s c a l Y e a r E n d e d J u n e 3 0 , 2 0 1 6 Al l N o n m a j o r F u n d s Co m b i n i n g S t a t e m e n t o f R e v e n u e s , E x p e nd i t u r e s , a n d C h a n g e s i n F u n d B a l a n c e Se e I n d e p e n d e n t A u d i t o r ' s R e p o r t . 42 This page intentionally left blank. BalanceBalance ASSETS June 30, 2015ReceiptsDisbursementsJune 30, 2016 Cash Bonneville High School 125,707750,119 771,902 103,924 Hillcrest High School 317,175869,752 960,878 226,049 Rocky Mountain Middle School 70,025156,652 170,983 55,693 Sandcreek Middle School 131,573155,805 136,308 151,070 Lincoln High School 39,97010,497 9,325 41,141 Ammon Elementary School 13,52211,083 11,459 13,145 Bridgewater Elementary 18,95823,373 33,441 8,890 Cloverdale Elementary School 13,51436,485 42,560 7,438 Discovery Elementary 36,96525,409 36,786 25,588 Fairview Elementary School 17,66317,249 20,538 14,374 Hillview Elementary School 42,91615,393 25,527 32,782 Falls Valley Elementary School 12,41224,328 26,467 10,273 Iona Elementary School 25,66227,640 32,321 20,981 Mountain Valley Elementary 20,79346,457 52,332 14,918 Rimrock Elementary School 24,06131,211 38,182 17,091 Summit Hills Elementary School 7,98550,539 35,919 22,605 Technical Careers High School 16,74971,671 72,238 16,182 Tiebreaker Elementary School 22,77921,913 25,730 18,962 Ucon Elementary School 12,04823,154 26,404 8,798 Woodland Hills Elementary School 30,57223,122 35,072 18,621 Total cash 1,001,0492,391,8522,564,374828,527 Investments Bonneville High School 242,81216242,828 Hillcrest High School 184,25912184,271 Rocky Mountain Middle School 20,6863820,724 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 Tiebreaker Elementary School Ucon Elementary School Woodland Hills Elementary School Total investments 447,757660447,823 Total assets1,448,8062,391,9182,564,3741,276,350 Bonneville Joint School District #93 All Agency Funds Combining Schedule of Changes in Assets and Liabilities Fiscal Year Ended June 30, 2016 See Independent Auditor's Report. 43 BalanceBalance LIABILITIES June 30, 2015IncreasesDecreasesJune 30, 2016 Accounts payable Bonneville High School 67,30133,98433,317 Hillcrest High School 103,719100,2083,511 Rocky Mountain Middle School 13,52019,345(5,825) Sandcreek Middle School (1,066)7,129(8,195) Lincoln High School 5,2072,0483,159 Ammon Elementary School 46246508 Bridgewater Elementary 3,9189332,985 Cloverdale Elementary School 9,7183,4936,225 Discovery Elementary 15,8718,8387,033 Fairview Elementary School 4,4281,1273,301 Hillview Elementary School 10,3274,7175,610 Falls Valley Elementary School 6,8486,406442 Iona Elementary School 5,2615,055206 Mountain Valley Elementary 7,2417,17368 Rimrock Elementary School 5,7324,0491,683 Summit Hills Elementary School 4,32115,60419,925 Technical Careers High School 7,8657,85015 Tiebreaker Elementary School 7,1606,951209 Ucon Elementary School 6,9466,92125 Woodland Hills Elementary School 5,9873,5922,395 Total accounts payable 290,76615,650229,81976,597 Due to student groups Bonneville High School 301,218750,135 737,918 313,435 Hillcrest High School 397,715869,764 860,670 406,809 Rocky Mountain Middle School 77,191156,690 151,638 82,242 Sandcreek Middle School 132,639155,805 129,179 159,265 Lincoln High School 34,76310,497 7,277 37,982 Ammon Elementary School 13,06011,037 11,459 12,637 Bridgewater Elementary 15,04023,373 32,508 5,905 Cloverdale Elementary School 3,79636,485 39,067 1,213 Discovery Elementary 21,09425,409 27,948 18,555 Fairview Elementary School 13,23517,249 19,411 11,073 Hillview Elementary School 32,58915,393 20,810 27,172 Falls Valley Elementary School 5,56424,328 20,061 9,831 Iona Elementary School 20,40127,640 27,266 20,775 Mountain Valley Elementary 13,55246,457 45,159 14,850 Rimrock Elementary School 18,32931,211 34,133 15,408 Summit Hills Elementary School 3,66434,935 35,919 2,680 Technical Careers High School 8,88471,671 64,388 16,167 Tiebreaker Elementary School 15,61921,913 18,779 18,753 Ucon Elementary School 5,10223,154 19,483 8,773 Woodland Hills Elementary School 24,58523,122 31,480 16,226 Total due to student groups 1,158,0402,376,2682,334,5551,199,753 Total liabilities 1,448,8062,391,9182,564,3741,276,350 Bonneville Joint School District #93 All Agency Funds Combining Schedule of Changes in Assets and Liabilities Fiscal Year Ended June 30, 2016 See Independent Auditor's Report. 44 2014 Total2015and prior 182,7340182,734 ADDITIONS 3,508,8493,508,846 (2,649)(1,484)(1,165) 3,506,2003,507,362(1,165) DEDUCTIONS 2,298,8932,167,333131,560 1,262,5291,256,3536,176 3,561,4223,423,686137,736 127,51283,67643,833 Roll charges applicable to June 30, 2015 Subsequent additions and cancellations Unearned balance at July 1, 2015 Total deductions Unearned balance at June 30, 2016 Total additions Collections received Current amount due on taxes collected by the counties General Fund Bonneville Joint School District #93 Fiscal Year Ended June 30, 2016 Taxes Receivable See Independent Auditor's Report. 45 20142014 Total2015and priorTotal2015and prior 280,4020280,402112,9840112,984 7,056,7697,056,7722,825,2252,825,226 (4,519)(2,985)(1,534)(1,906)(1,195)(711) 7,052,2507,053,787(1,534)2,823,3192,824,031(711) 4,521,7994,358,802162,9971,829,4641,745,07584,389 2,534,2432,526,6987,5451,015,5151,011,5803,935 7,056,0426,885,500170,5422,844,9792,756,65588,324 276,610168,287108,32691,32467,37623,949 Debt Service FundCapital Projects Fund Bonneville Joint School District #93 Taxes Receivable Fiscal Year Ended June 30, 2016 See Independent Auditor's Report. 46 This page intentionally left blank. Single Audit Section Bonneville Joint School District #93 June 30, 2016 47 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Trustees Bonneville Joint School District #93 Idaho Falls, Idaho We have audited, in accordance with the auditing standards generally accepted in the United States 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 #93 as of and for the year ended June 30, 2016, 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 31, 2016. 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 out 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 #93’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. 48 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly this communication is not suitable for any other purpose. Wipfli LLP CPAs and Consultants Idaho Falls, Idaho October 31, 2016 49 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Board of Trustees Bonneville Joint School District #93 Idaho Falls, Idaho Report on Compliance for Each Major Federal Program We have audited Bonneville Joint School District #93’s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) 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, 2016. 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; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance 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, 2016. 50 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 Uniform Guidance, 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 requirement 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 of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly this report is not suitable for any other purpose. Wipfli LLP CPAs and Consultants Idaho Falls, Idaho October 31, 2016 Bonneville Joint School District #93 Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2016 51 SECTION I - SUMMARY OF AUDITORS’ RESULTS Financial Statements Type of auditor’s report issued: Unmodified. Internal control over financial reporting:  Material weakness (es) identified? Yes X No  Significant deficiency (ies) identified that are not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs:  Material weakness (es) identified? Yes X No  Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes X None reported Type of auditor’s report issued on compliance for major programs: Unmodified. Any audit findings disclosed that are required to be reported in accordance with Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)? Yes X No Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster 84.010 Title I Grants to Local Educational Agencies Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? X Yes No Bonneville Joint School District #93 Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2016 52 SECTION II - FINDINGS - FINANCIAL STATEMENT AUDITS None SECTION III - FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT None Bonneville Joint School District #93 Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2016 53 Federal Pass-Through CFDA Entity Identifying Federal Grantor / Pass-Through Grantor / Program Title Number Number Expenditures United States Department of Education Passed Through Idaho State Department of Education: Title I Grants to Local Educational Agencies 84.010 S010A150012 1,543,779 Migrant Education - Basic State Grant Program 84.011 S011A150012 39,625 English Language Acquisition 84.365 S365A150012 56,616 Improving Teacher Quality 84.367 S367A150011 250,849 Subtotal 1,890,869 Special Education Cluster Special Education – School-age 84.027 H027A150088 1,829,781 Special Education – Preschool 84.173 H173A150030 61,023 Total Special Education Cluster 1,890,804 Total Passed Through the Idaho State Department of Education3,781,673 Passed Through the State Division of Professional-Technical Vocational Education - Basic Grants to States 84.048 V048A150012 95,986 Total U.S. Department of Education 3,877,658 United States Department of Agriculture Passed Through the Idaho State Department of Education: Child Nutrition Cluster Cash Assistance School Breakfast Program 10.553 2016IN109947 432,170 National School Lunch Program-cash 10.555 2016IN109947 1,899,128 Summer Food Service Program for Children 10.559 2015IN109947 68,250 2,399,548 Non-Cash Assistance (Commodities) National School Lunch Program 10.555 314,737 Total Child Nutrition Cluster 2,714,285 Fresh Fruit and Vegetable Program 10.582 201616L160347 42,137 Total Passed Through Idaho State Department of Education 2,756,422 Passed Through Bonneville County Federal Forest 10.665 43,096 Total U.S. Department of Agriculture 2,799,518 Bonneville Joint School District #93 Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2016 54 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) 12,199 Total U.S. Department of Transportation 12,199 United States Department of Health and Human Services Passed Through the State Department of Health & Welfare: Temporary Assistance for Needy Families 93.558 1502IDTANF 28,965 Total U.S. Department of Health and Human Services 28,965 Total expenditures of federal awards 6,718,340 Bonneville Joint School District #93 Notes to Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2016 55 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, 2016. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance issued by the Office of Management and Budget (OMB). Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in net assets of the District. NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the modified basis of accounting as described in Note A to the District’s financial statements. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursements. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. NOTE C NONMONETARY TRANSACTIONS Nonmonetary assistance is reported for the Food Distribution Program at fair market value of commodities received which is established by the State Department of Education. The District held an undetermined amount of those commodities in inventory at June 30, 2016. Bonneville Joint School District #93 Summary Schedule of Prior Year Audit Findings Fiscal Year Ended June 30, 2016 56 Audit Finding Reference: none Status of Prior Audit Finding: none