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