HomeMy WebLinkAbout2017 Bonneville School District AuditBonneville Joint School District #93
Financial Statements and
Supplementary Information
Year ended June 30, 2017
Bonneville Joint School District #93
Contents
June 30, 2017
INDEPENDENT AUDITOR’S REPORT.......................................................................................................... 1-2
MANAGEMENT’S DISCUSSION & ANALYSIS ........................................................................................... 3-9
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position ............................................................................................................................10
Statement of Activities ................................................................................................................................11
Fund Financial Statements
Combined Balance Sheet
Governmental Funds....................................................................................................................................12
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position ..................................................................................................................13
Governmental Fund Types
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances............................... 14-15
Reconciliation of the Governmental Funds Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities..........................................................................................16
Fiduciary Funds
Statement of Fiduciary Net Position............................................................................................................17
Notes to Financial Statements...................................................................................................................... 18-35
REQUIRED FINANCIAL INFORMATION
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget to Actual .......................................................................................................................................... 36-37
Debt Service Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget to Actual ................................................................................................................................................38
Capital Projects Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget to Actual ................................................................................................................................................39
Construction 2016
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget to Actual ................................................................................................................................................40
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Bonneville Joint School District #93
Contents
June 30, 2017
Required Supplementary Information................................................................................................................41
Notes to Required Supplementary Information .................................................................................................42
OTHER FINANCIAL INFORMATION
All Nonmajor Funds
Combining Balance Sheet..................................................................................................................................43
All Nonmajor Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ...........................................44
All Agency Funds
Combining Statement of Changes in Assets and Liabilities ........................................................................ 45-46
Taxes Receivable ......................................................................................................................................... 47-48
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 ................................................................................................................ 49-50
Independent Auditor’s Report on Compliance for Each Major
Federal Program and Report on Internal Control Over
Compliance Required by the Uniform Guidance......................................................................................... 51-52
Schedule of Findings and Questioned Costs................................................................................................ 53-54
Schedule of Expenditures of Federal Awards.............................................................................................. 55-56
Notes to Schedule of Expenditures of Federal Awards .....................................................................................57
Summary Schedule of Prior Audit Findings .....................................................................................................58
ii
INDEPENDENT AUDITOR’S REPORT
Board of Trustees
Bonneville Joint School District #93
3497 N. Ammon Road
Idaho Falls, Idaho
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information of Bonneville Joint School District #93 (the District), as of and for the year
ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the District’s
basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud of error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in the United States and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, each major fund, and the aggregate remaining fund information
of Bonneville Joint School District #93, as of June 30, 2017, and the respective changes in financial position for
the year then ended in accordance with accounting principles generally accepted in the United States.
1
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States require that the Management’s Discussion and
Analysis, budgetary comparison information, OPEB funding information, and schedule of employer’s share of net
pension liability for PERSI-Base plan last 10 fiscal years and schedule of employer contributions PERSI-Base
plan for last 10 fiscal years listed in the table of contents on pages 3 through 9 and pages 36 through 42 be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basis financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s financial statements as a whole. The accompanying supplementary information, such as
the combining and individual nonmajor fund financial statements, the agency fund combining statement of
changes in assets and liabilities, other schedules listed in the table of contents, and the schedule of expenditures of
federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), are not a
required part of the financial statements.
The combining and individual nonmajor fund financial statements, the agency fund combining statement of
changes in assets and liabilities, other schedules listed in the table of contents, and the schedule of expenditures of
federal awards are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has been subjected
to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States. In our opinion, the
combining and individual nonmajor fund financial statements, the agency fund combining statement of changes in
assets and liabilities, other schedules listed in the table of contents and the schedule of expenditures of federal
awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 5, 2017, 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, grant agreements, and other matters. The
purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the District’s internal control over financial reporting and compliance.
Wipfli LLP
CPAs and Consultants
Idaho Falls, Idaho
October 5, 2017
2
Bonneville Joint School District #93
Management’s Discussion & Analysis
Fiscal Year Ended June 30, 2017
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, 2017. 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 2017 are as follows:
In total, net position increased $5,765,094 which represents a 27% increase from 2016 balance of $21,096,758.
General revenues accounted for $70,054,083 in revenue or 78% of all revenues. Program specific revenues in the
form of charges for services, operating grants and contributions, and capital grants and contributions accounted
for $19,962,714 or 22% of total revenues of $90,016,797.
Total assets of governmental activities increased by $7,205,053, as cash, investments and repurchase agreement
decreased by $17,936,863, receivables and prepaid expenses decreased by $219,494, inventory decreased by
$12,189, and capital assets increased by $25,373,599. 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 decreased by $1,765,164.
The District had $84,251,703 in expenses; only $19,962,714 of these expenses were offset by program specific
charges for services, grants, or contributions. General revenues (primarily state support and local property taxes)
of $70,054,083 were adequate to provide for these programs.
Among major funds, the General Fund had $63,935,293 in revenues, and $63,028,767 in expenditures. The
General Fund’s fund balance increased $654,810 from 2016.
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, 2017
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 2017?” The Statement of Net Position and the Statement of Activities answer this question.
These statements include all assets and liabilities using the accrual basis of accounting similar to the accounting
used by most private-sector companies. This basis of accounting takes into account all of the current year’s
revenues and expenses regardless of when cash is received or paid.
These two statements report the District’s net assets and changes in those assets. This change in net position is
important because it tells the reader that, for the District as a whole, the financial position of the District has
improved or diminished. The causes of this change may be the result of many factors, some financial and some
not. Nonfinancial factors include the District’s property tax base, current property tax laws in Idaho restricting
revenue growth, facility condition, required educational programs, and other factors.
In the Statement of Net Position and the Statement of Activities, the District reports governmental activities.
Governmental activities are the activities where most of the District’s programs and services are reported
including, but not limited to, instruction, support services, operation and maintenance of plant, pupil,
transportation, and extracurricular activities. The District does not have any business type activities.
REPORTING THE DISTRICT’S MOST SIGNIFICANT FUNDS
Fund Financial Statements
The analysis of the District’s major funds begins on page 12. Fund financial reports provide detailed information
about the District’s major funds. The District uses many funds to account for a multitude of financial transactions.
However, these fund financial statements focus on the District’s most significant funds. The District’s major
governmental funds are the General, Debt Service, Capital Projects, and Construction 2016 Funds.
Governmental Funds
Most of the District’s activities are reported in governmental funds, which focus on how money flows into and out
of those funds and the balances left at year end available for spending in the future periods. These funds are
reported using an accounting method called modified accrual accounting, which measures cash and all other
financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-
term view of the District’s general government operations and the basic services it provides. Governmental fund
information helps you determine whether there are more or fewer financial resources that can be spent in the near
future to finance educational programs. The relationship (or differences) between governmental activities
(reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled
in the financial statements.
The District serves as a trustee, or fiduciary, for student organizations and programs. The assets of these
organizations and programs do not directly benefit nor are they under the direct control of the District. The
District’s responsibility is limited to ensuring the assets reported in these funds are used only for their intended
purposes. Fiduciary activities are excluded from the government-wide financial statements because the District
cannot use these assets to finance its operations.
4
Bonneville Joint School District #93
Management’s Discussion & Analysis
Fiscal Year Ended June 30, 2017
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 2017 compared to 2016:
Assets
Current and other assets
Capital assets
Total assets
Deferred outflows of resources
Current and other liabilities
Long-term liabilities
Total liabilities
Deferred inflows of resources
Net investment in capital assets
Restricted
Unrestricted
Total net position
2017 2016
75,639,596
100,098,212
93,808,142
74,724,613
175,737,808 168,532,755
20,759,827 14,322,269
22,298,407
138,656,646
11,235,695
139,363,455
160,955,053 150,599,150
8,680,730 11,159,116
21,620,728
19,312,350
(14,071,226)
26,861,852
18,775,611
14,627,209
(12,306,062)
21,096,758
Total assets of governmental activities increased by $7,205,053, as cash and cash equivalents decreased by
$17,936,863, receivables and prepaid expenses decreased by $219,494, inventory decreased by $12,189, and
capital assets increased by $25,373,599. The District’s assets and deferred outflows of resources exceeded
liabilities and deferred inflows of resources by $26,861,852 at the close of the most recent fiscal year.
Unrestricted net position, the part of net position that can be used to finance day-to-day activities without
constraints established by grants or legal requirements, of the District decreased by $1,765,164 from 2016.
5
Bonneville Joint School District #93
Management’s Discussion & Analysis
Fiscal Year Ended June 30, 2017
The following table shows the changes in net position for fiscal years 2017 and 2016:
Revenues
Program revenues
Charges for services
Operating grants and contributions
General revenues
Property taxes
State aid
Federal aid
Other
Total revenues
Program expenses
Instruction
Support services
Administrative
Business admin services
Operations
Transportation
Other support services
Community service
Noninstructional
Interest and fiscal charges
Capital improvements
Total expenses
Increase in net position
GOVERNMENTAL ACTIVITIES
Governmental revenues come primarily from three sources.
2017 2016
3,514,502 3,827,129
16,448,212 13,437,939
15,131,465 13,471,824
53,268,500 49,751,749
11,991
1,654,118 2,127,601
90,016,797 82,628,233
45,630,183 41,986,395
12,527,260 11,770,282
6,852,539 6,471,485
1,066,708 1,303,142
7,557,006 7,204,251
3,453,905 3,062,749
235,913 74,317
164,378 187,377
3,512,370 3,753,903
2,933,280 2,343,337
318,161 888,334
84,251,703 79,045,572
5,765,094 3,582,661
State aid of $64,293,202 consists of the state
apportionment, other state grants, and revenue in lieu of taxes, and makes up 71.4% of revenues from
governmental activities. Property taxes of $15,131,465 make up 16.8% of total revenues from governmental
activities. Federal grants and assistance of $7,169,146 make up 7.96% of total revenues from governmental
activities.
Instruction expenditures including the support activities of support services, administrative, business admin
services, operations, and transportation comprise $77,087,601 of District expenses.
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Bonneville Joint School District #93
Management’s Discussion & Analysis
Fiscal Year Ended June 30, 2017
The Statement of Activities shows the cost of program services and the charges for services and grants offsetting
those services. The following table shows the total cost of services and the net cost of services. That is, it
identifies the cost of these services supported by tax revenue and unrestricted state entitlements.
% of Total cost of Net cost of
Total Services 2017 Services 2017
Instruction 54.16 45,630,183 39,783,853
Support services 14.87 12,527,260 8,179,523
Administrative 8.13 6,852,539 6,495,738
Business admin services 1.27 1,066,708 994,047
Operations 8.97 7,557,006 6,643,059
Transportation 4.10 3,453,905 1,266,475
Other support services 0.28 235,913 151,056
Community service 0.20 164,378 63,139
Non-instructional 4.17 3,512,370 (301,610)
Interest and fiscal charges 3.48 2,933,280 1,080,972
Capital improvements 0.38 318,161 (67,263)
Total expenses 100 84,251,703 64,288,989
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.
7
Bonneville Joint School District #93
Management’s Discussion & Analysis
Fiscal Year Ended June 30, 2017
Non-instructional: Non-instructional services include the preparation, delivery and servicing of lunches, snacks
and other incidental meals to students and school staff in connection with school activities.
Interest and Fiscal Charges: Interest and fiscal charges involve the transactions associated with the payment of
interest and other related charges to the debt of the District.
Capital Improvements: Capital Improvements include capital expenditures for the schools that are not capitalized
under the District’s capitalization policy.
THE DISTRICT’S FUNDS
Information about the District’s major funds starts on page 12. These funds are accounted for using the modified
accrual basis of accounting. All governmental funds had total revenues of $90,019,348 and expenditures of
$114,201,073. The net change in fund balance for the year in the General Fund, Debt Service Fund, Capital
Projects Fund and Construction 2016 Fund, was an increase of $654,810, an increase of $1,563,757, an increase
of $1,283,542 and a decrease of $27,666,335 respectively.
GENERAL FUND BUDGETING HIGHLIGHTS
During the course of the fiscal 2017 year, the District did not amend its budget.
For the General Fund, the budgeted revenue was $62,682,000 and the budgeted expense was $63,454,400. Actual
revenue was $63,935,293 which includes $631,230 for leadership premiums to qualifying personnel and $395,766
in professional development funds. Actual expenditures were $63,028,767, which include expenditures related to
the leadership premiums and professional development.
CAPITAL ASSETS
At the end of the fiscal year 2017, the District had $100,098,212 invested in land, buildings, furniture and
equipment, and vehicles (net of accumulated depreciation).
2017 2016
Non-depreciable assets 35,886,302 7,884,449
Buildings and improvements 61,405,111 64,143,090
Equipment 1,462,572 1,318,302
Vehicles 1,344,227 1,378,772
Total capital assets, net 100,098,212 74,724,613
Overall capital assets increased $25,373,599 from fiscal year 2016 to fiscal year 2017. Increase in capital assets,
primarily buildings, equipment, and vehicles, was mostly due to the construction of the new high school.
8
Bonneville Joint School District #93
Management’s Discussion & Analysis
Fiscal Year Ended June 30, 2017
DEBT ADMINISTRATION
At June 30, 2017, the District had five general obligation bond issues as follows:
Due within
Total one year
2009 Series Bond 1,600,000 130,000
2012A Series Bond 11,780,000
2012C Series Bond 12,650,000 2,390,000
2016A Series Bond 52,915,000 2,375,000
2016B Series Bond 20,775,000
Total 99,720,000 4,895,000
At June 30, 2017, the District’s overall legal debt margin was $95,873,065.
CURRENT FINANCIAL ISSUES AND CONCERNS
The Bonneville Joint School District #93 continues to be financially stable. In Fiscal Year 2017, the District was
able to fund operating expenditures in the General Fund without deficit spending. This was due in part to an
increase in state funding for k-12 education in 2016-2017 and increased enrollment in the District.
For 2016-2017 the state legislature appropriated an increase of 6% to the public education budget. Included in this
appropriation was continued funding for the “career ladder”. This appropriation has a five-year implementation
period designed to increase the beginning salaries for teachers. As with any new funding/reimbursement model
there will be challenges as we work through the process.
The most critical concern for the District continues to be providing adequate facilities for our growing student
population. The District passed a bond in November 2015 for the construction of a new high school. Construction
began in June of 2016, and is expected to be completed in time for the FY 18 school year. The District’s fifteen-
year facility plan anticipates the need for a middle school and three elementary schools. The fifteen-year plan is
reviewed often and updated with current information as it becomes available.
COMPONENT UNIT
The financial statements do not include the Bonneville Education Foundation, a component unit of the District.
The financial information for the Foundation will be available at the District office.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, investors, and creditors with a general
overview of the District’s finances and to show the District’s accountability for the money it receives. If you have
questions about this report or need additional financial information contact Guy Wangsgard, Chief Financial/
Operations Officer, at Bonneville Joint School District #93, 3497 North Ammon Road, Idaho Falls, Idaho 83401
or email at GuyW@d93.k12.id.us.
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Bonneville Joint School District #93
Statement of Net Position
June 30, 2017
Governmental
Activities
ASSETS
Cash and investments 31,060,419
Receivable - repurchase agreement 34,663,142
Property tax receivable, net 6,134,281
Other receivables 3,664,604
Supplies inventory 95,309
Prepaid expenses 21,841
Land and construction in progress 35,886,302
Depreciable buildings, equipment, and vehicles, net of depreciation 64,211,910
Total assets 175,737,808
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 2,426,669
Related to pensions 18,333,158
Total deferred outflows of resources 20,759,827
LIABILITIES
Accounts payable 6,361,305
Accrued wages 6,183,032
Accrued employee benefits 3,392,210
Interest payable 1,291,786
Long-term liabilities
Net pension liability 26,541,615
Premium on bonds payable 15,514,164
Portion due or payable within one year
General obligation bonds 4,895,000
Other liabilities 175,074
Portion due or payable after one year
General obligation bonds 94,825,000
Other liabilities 1,775,867
Total liabilities 160,955,053
DEFFERED INFLOWS OF RESOURCES
Related to pensions 8,680,730
Total deferred inflows of resources 8,680,730
NET POSITION
Net investment in capital assets 21,620,728
Restricted for
Capital improvements 6,586,396
Debt service 10,402,265
Child nutrition 793,539
Other 1,530,124
Unrestricted (14,071,200)
Total net position 26,861,852
The accompanying notes are an integral part of these statements.
10
Bonneville Joint School District #93
Statement of Activities
Fiscal Year Ended June 30, 2017
Functions / Programs
Governmental activities
Instruction
Support services
Administrative
Business admin services
Operations
Transportation
Other support services
Community service
Noninstructional
Interest on long-term debt
Capital improvements
Expenses
45,630,183
12,527,260
6,852,539
1,066,708
7,557,006
3,453,905
235,913
164,378
3,512,370
2,933,280
318,161
Program Revenues
Operating Capital
Charges for grants and grants and
services contributions contributions
866,662 4,979,668
1,311,779 3,035,958
161,875 194,926
72,661
17,231 896,716
121,591 2,065,839
84,857
82,337 18,902
953,027 2,860,953
1,852,308
385,424
Net (expense)
revenue and
changes in
net position
Total
governmental
activities
(39,783,853)
(8,179,523)
(6,495,738)
(994,047)
(6,643,059)
(1,266,475)
(151,056)
(63,139)
301,610
(1,080,972)
67,263
Total governmental activities 84,251,703 3,514,502 16,448,212 0 (64,288,989)
General revenues
Taxes
Property taxes
Property tax replacement
State aid - formula grants
Other state revenues
Unrestricted investments earnings
Other local
15,131,465
248,027
52,920,292
100,181
64,799
1,589,319
Total general revenues 70,054,083
Change in net position 5,765,094
Net position - beginning 21,096,758
Net position - ending 26,861,852
The accompanying notes are an integral part of these statements.
11
0 0 0
0
0
0
0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0
0 0 0 0
0
0
Bonneville Joint School District #93
Combined Balance Sheet
Governmental Funds
June 30, 2017
All Total
Debt Capital Construction Nonmajor Governmental
General Service Projects 2016 Funds Funds
ASSETS
Cash and investments 10,621,456 7,258,965 4,660,712 5,535,776 2,983,510 31,060,419
Receivable - repurchase agreement 34,663,142 34,663,142
Receivables
Taxes - current 1,744,122 2,860,308 1,036,956 5,641,386
Taxes - delinquent 127,862 283,492 81,541 492,895
State apportionment 1,444,459 869,997 2,314,456
Federal grants 1,080,710 1,080,710
Other 269,438 269,438
Interfund receivable 813,039 813,039
Supplies inventory 95,309 95,309
Prepaid expenses 21,841 21,841
Total assets 14,772,779 10,402,765 6,649,206 40,198,918 4,428,967 76,452,635
LIABILITIES
Accounts payable 279,600 500 62,810 5,842,384 176,011 6,361,305
Accrued wages 5,487,932 695,100 6,183,032
Accrued employee benefits 2,944,533 447,677 3,392,210
Interfund payable 26,523 786,516 813,039
Total liabilities 8,712,065 500 62,810 5,868,907 2,105,304 16,749,586
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 127,862 283,492 81,541 0 0 492,895
FUND BALANCES
Nonspendable
Inventory 95,309 95,309
Prepaid expenses 21,841 21,841
Restricted for
Debt service 10,118,773 10,118,773
Child nutrition 698,230 698,230
Other fund activities 6,504,855 34,330,011 1,530,124 42,364,990
Assigned 4,493,104 4,493,104
Unassigned 1,417,907 1,417,907
Total fund balances 5,932,852 10,118,773 6,504,855 34,330,011 2,323,663 59,210,154
Total liabilities, deferred
inflows of resources,
and fund balances 14,772,779 10,402,765 6,649,206 40,198,918 4,428,967 76,452,635
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, 2017
Total fund balances - governmental funds 59,210,154
Amounts reported for governmental activities in the Statement of Net
Position are different because:
Governmental funds report the effect of premiums, discounts, and similar
items when the bonds are first issued by the District whereas these amounts
are deferred and amortized in the Statement of Activities. (13,087,495)
The net pension liability (asset) and the deferred outflows of resources and
deferred inflows of resources related to pensions are only reported in the
Statement of Net Position. Net pension liability (asset) is $26,541,615,
deferred inflows of resources related to pensions is $8,680,730, and deferred
outflows of resources related to pensions is $18,333,158. (16,889,187)
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 $168,964,754 and the accumulated depreciation is
$68,866,542. 100,098,212
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. 492,895
Long-term liabilities at year end consisted of:
Bonds payable
Accrued interest on the bonds
Compensated absences
OPEB obligation
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.
(99,720,000)
(1,291,786)
(175,074)
(1,775,867)
(102,962,727)
Total net position - governmental activities 26,861,852
The accompanying notes are an integral part of these statements.
13
0
0
0 0
0 0 0 0
0 0 0
0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0
0 0 0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0 0
0 0 0
0 0 0 0
0 0
Bonneville Joint School District #93
Governmental Fund Types
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Fiscal Year Ended June 30, 2017
All Total
Debt Capital Construction Nonmajor Governmental
General Service Projects 2016 Funds Funds
REVENUES
Property taxes 4,461,527 7,769,640 2,826,869 15,058,036
Penalties and interest
on delinquent taxes 23,609 36,034 16,337 75,980
Earnings on investments 63,266 385,424 1,533 450,223
Food service 939,035 939,035
Rental 17,231 17,231
Other local 656,992 898,197 461,306 2,016,495
State apportionment
Base 46,843,841 46,843,841
Transportation 2,065,839 2,065,839
Exceptional child 87,970 87,970
Benefits 6,076,451 6,076,451
Property tax replacement 248,027 248,027
Other state revenue 3,390,540 1,852,308 3,728,226 8,971,074
Federal grants and assistance 7,169,146 7,169,146
Total revenues 63,935,293 9,657,982 3,741,403 385,424 12,299,246 90,019,348
EXPENDITURES
Current
Instruction 37,107,488 254,634 4,102,952 41,465,074
Support services 8,849,921 379,581 3,341,075 12,570,577
Administration 6,460,238 78,447 291,801 6,830,486
Business operations 812,901 193,046 72,661 1,078,608
Operations 6,475,692 876,904 125,163 7,477,759
Transportation 3,064,384 412,320 604 3,477,308
Other support services 150,696 84,857 235,553
Community services 107,421 56,983 164,404
Noninstructional 3,524,045 3,524,045
Debt service 8,094,225 8,094,225
Facility acquisition 581,500 28,051,759 649,775 29,283,034
Total expenditures 63,028,741 8,094,225 2,776,432 28,051,759 12,249,916 114,201,073
Revenues over (under) expenditures 906,552 1,563,757 964,971 (27,666,335) 49,330 (24,181,725)
The accompanying notes are an integral part of these statements.
14
0 0
Bonneville Joint School District #93
Governmental Fund Types
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Fiscal Year Ended June 30, 2017
OTHER FINANCING
SOURCES (USES)
Operating transfers, net
General
(251,716)
Debt
Service
Capital
Projects
318,571
Construction
2016
All Total
Nonmajor Governmental
Funds Funds
(66,855) 0
Total other financing
sources (uses) (251,716) 0 318,571 0 (66,855) 0
Revenues and other financing sources
over (under) expenditures 654,836 1,563,757 1,283,542 (27,666,335) (17,525) (24,181,725)
Fund balance - July 1, 2016 5,278,016 8,555,016 5,221,313 61,996,346 2,341,188 83,391,879
Fund balance - June 30, 2017 5,932,852 10,118,773 6,504,855 34,330,011 2,323,663 59,210,154
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, 2017
Total net change in fund balances - governmental funds: (24,181,725)
Amounts reported for governmental activities in the Statement of Activities are different
because:
Governmental funds report the effect of premiums, discounts, and similar items when debt is
issued whereas these amounts are deferred and amortized in the statement of activities. This
amount is the net effect of these differences. 1,512,853
Capital outlays are reported in governmental funds as expenditures. However, in the
Statement of Activities, the cost of those assets is allocated over their estimated useful lives
as depreciation expense. This is the amount by which capital outlays exceeded depreciation. 25,373,599
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 $2,551 this year. (2,551)
Governmental funds report bond proceeds 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 of the
repayments. 3,625,000
Vested employee benefits are reported in the governmental funds when amounts are paid.
The Statement of Activities reports the value of benefits earned during the year. Change in
OPEB obligation ($471,454). Change in net pension liability ($9,241,042). Change in
deferred outflows of resources related to pensions $6,658,164. Change in deferred inflows of
resources related to pensions $2,478,386. Change in compensated absences ($9,228). (585,174)
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 by ($23,092). 23,092
Change in net position of governmental activities 5,765,094
The accompanying notes are an integral part of these statements.
16
Bonneville Joint School District #93
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2017
Agency
Funds
ASSETS
Cash 793,123
Investments 437,627
Total assets 1,230,750
LIABILITIES
Accounts payable (11,991)
Due to student groups 1,242,741
Total liabilities 1,230,750
The accompanying notes are an integral part of these statements.
17
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. General. The basic financial statements listed in the table of contents have been prepared in accordance with
the American Institute of Certified Public Accountants’ Industry Audit Guide for Audits of State and Local
Government Units.
2. Reporting Entity. The Bonneville Joint School District #93 (the District) is the basic level of government,
which has financial accountability and control over all activities related to the public school education in the
area served. The District receives funding from local, state, and federal government sources and must
comply with the requirements of these funding source entities. The District is not included in any other
governmental “reporting entity” as defined by GASB pronouncement, since Board members are elected by
the public and have decision making authority, the authority to levy taxes, the power to designate
management, the ability to significantly influence operations, and primary accountability for fiscal matters.
3. Discretely Presented Component Unit. The Bonneville Joint School District #93 Education Foundation (the
Foundation) is responsible for fund raising to support the District. The Board of the Foundation is appointed
by the District and is accountable to the District. The Foundation is a non-profit organization and is
presented on the accrual basis of accounting. The District has elected not to include the Foundation at June
30, 2017, as it is immaterial to the District.
Complete financial information for the component unit may be obtained at the District’s administrative
office.
4. Government-wide and Fund Financial Statements. The government-wide financial statements (i.e., the
Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary
activities of the District. For the most part, the effect of interfund activity has been removed from these
statements.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function.
Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function, and (2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function. Taxes and other items
not included among program revenues are reported as general revenues.
Separate financial statements are provided for governmental funds and fiduciary funds, even though the
latter are excluded from the government-wide financial statements. Major individual governmental funds are
reported as separate columns in the fund financial statements.
5. Fund Accounting. The District uses funds to report on its financial position and results of its operations.
Fund accounting is designed to demonstrate legal compliance and to aid financial management by
segregating transactions related to certain government functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. Funds are classified into three
categories: governmental, proprietary, and fiduciary. The emphasis of fund financial statements is on major
governmental funds, each reported in a separate column. All remaining governmental funds are aggregated
and reported as nonmajor funds. Major individual governmental funds are reported as separate columns in
the fund financial statements.
Governmental Fund Types
General Fund -The General Fund is the general operating fund of the District. It is used to account for all
financial resources except those required to be accounted for in another fund.
18
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Governmental Fund Types
Debt Service Fund -The Debt Service Fund is used to account for the accumulation of resources and for the
repayment of general long-term debt principal, interest, and related costs. The primary revenue source is
local property taxes levied specifically for debt service.
Capital Projects Fund -The Capital Projects Fund is used to account for the financial resources used to
acquire school facilities, renovate existing facilities, or as otherwise provided in the Idaho Code.
Special Revenue Fund -The purpose of the Special Revenue Fund is to account for federal, state, and locally
funded grants. These grants are awarded to the District with the purpose of accomplishing specific
educational tasks as defined in the Grant Awards. Special Revenue Fund types include the Child Nutrition
Fund. The purpose of the Child Nutrition Fund is to account for all federal support and student charges,
which are received by the District for the purpose of providing students with a nutritional, inexpensive meal.
Fiduciary Fund Types
Agency Fund (School Activity Funds) - Activity Funds are monies collected principally through fund raising
efforts of the individual schools or school sponsored groups. The school principal is responsible, under the
authority of the Board of Trustees, for collecting, controlling, disbursing, and accounting for all School
Activity Funds.
6. Basis of Accounting. The District applies the provisions of GASB Statement No. 34, Basic Financial
Statements and Management’s Discussion and Analysis for State and Local Governments. This Statement is
meant to present the information in a format more closely resembling that of the private sector and to provide
the user with more managerial analysis regarding the financial results and the District’s financial outlook.
Government-wide Financial Statements
The government-wide financial statements (Statement of Net Position and Statement of Activities) display
information about the reporting government as a whole. These statements include all the financial activities
of the District, except for its fiduciary funds. Generally, the effect of material interfund activity has been
removed from the government-wide financial statements.
The Statement of Activities demonstrates the degree to which the direct expenses of given functions are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function.
Program revenues include charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function and grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function. Taxes and other internally directed
revenues are reported instead as general revenues.
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues
in the year for which they are levied. Grants and similar items are recognized as revenue as soon as
eligibility requirements imposed by the provider have been met.
The District applies restricted resources first when an expense is incurred for which both restricted and
unrestricted resources are available. Depreciation has been allocated specifically to functional areas with the
majority of it being allocated to instructional. Interest on long-term debt is considered an indirect expense
and is reported separately on the Statement of Activities.
19
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Governmental Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District
considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
The agency funds are accounted for on the accrual basis of accounting.
Property taxes and interest associated with the current fiscal period are considered to be susceptible to
accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as
revenues when all eligibility requirements are met, including any time requirements, and the amount is
received during the period or within the availability period for this revenue source (within 60 days of year
end).
Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred
and all other eligibility requirements have been met, and the amount is received during the period or within
the availability period for this revenue source (within 60 days of year end). All other revenue items are
considered to be measurable and available only when cash is received by the government.
7. Budgets. Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
appropriated budgets are adopted for the General, Special Revenue, Debt Service, and Capital Projects
Funds. All annual appropriations lapse at fiscal year-end. The District did not amend their budget for the
2016-2017 school year.
Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance
accounting (under which purchase orders, contracts, and other commitments for the expenditures of
resources are recorded to reserve that portion of the applicable appropriation) is utilized in the governmental
funds. Encumbrances outstanding at year-end are reported as assigned fund balance to indicate an obligation
to the District.
The District budgets transfers from the General Fund to other funds to cover the costs incurred by these
funds in excess of the revenues generated. Certain indirect costs are charged to several Special Revenue
Funds through budgeted transfers from the Special Revenue Funds to the General Fund.
8. Cash and Investments. Cash includes amounts in demand as well as short-term investments with a maturity
date within three months of the date acquired by the District. The District pools cash of all funds into
common bank accounts. The accounting records of each fund reflect its interest in the pooled cash. Any
deficiencies in cash of individual funds represent liabilities to other funds for cash borrowed. Under state
law, the District may deposit funds in demand deposits, interest-bearing demand deposits, or time deposits
with state banks organized under Idaho Law, and national banks having their principal offices in Idaho.
20
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
State statutes authorize the District to invest in obligations of the U.S. Treasury, commercial paper, corporate
bonds, and repurchase agreements. The District has elected to deposit cash in excess of immediate needs into
the Local Government Investment Pool (LGIP). The LGIP was established as a cooperative endeavor to
enable public entities of the State of Idaho to aggregate funds for investment. This pooling is intended to
improve administrative efficiency and increase investment yield. The Local Government Investment Pool is
managed by the State of Idaho Treasurer’s office. An annual audit of LGIP is conducted by the State
Legislative Auditors Office. The Legislative Auditor of the State of Idaho has full access to the records of
the Pool. All other cash is deposited with local banks in checking or savings accounts. The District has
elected to invest the bond proceeds for the new high school in a repurchase agreement.
For deposits and investments, custodial credit risk is the risk that, in the event of the failure of the
counterparty, the District will not be able to recover the value of its deposits, investments, or collateral
securities that are in the possession of an outside party.
The District does not have a policy for custodial credit risk outside of the deposit and investment agreements.
The District is authorized to invest in the State of Idaho Local Government Investment Pool. This pooling is
intended to improve administrative efficiency and increase investment yield.
Credit risk is the risk that an issuer of debt securities or another counterparty to an investment will not fulfill
its obligation and is commonly expressed in terms of the credit quality rating issued by nationally recognized
statistical rating organization such as Moody’s, Standard & Poor’s, and Fitch’s. The investments of the
District are not rated and the District’s policy does not restrict them to rated investments.
9. Short-term Interfund Receivables / Payables. During the course of operations, numerous transactions occur
between individual funds and the General Fund for goods provided or services rendered. These receivables
and payables are classified as ‘due from other funds’ or ‘due to other funds’ on the balance sheet.
10. Inventories. Supplies inventory consists of paper, food, new textbooks, and other supplies and equipment
received at the end of the fiscal year, which had not yet been consumed. The cost is recorded as an
expenditure at the time the item is consumed. Inventories are stated at cost on a first-in, first-out basis, which
approximates market. Other supplies inventory on hand at year-end has not been recorded as inventory and
was treated as expended when purchased.
11. Capital Assets. Capital assets, including land, buildings, improvements, and equipment assets are reported in
the applicable governmental columns in the government-wide financial statements. Capital assets are defined
by the District as assets with an initial, individual cost of more than $10,000 and an initial useful life of one
year or greater. Such assets are recorded at historical cost if purchased or constructed. Donated capital assets
are recorded at estimated fair value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the
life of the asset are not capitalized. Buildings, improvements, and equipment assets are depreciated using the
straight-line depreciation method over the following estimated useful lives:
Years
Buildings 30
Equipment 3-15
Vehicles 3-8
12. Compensated Absences. Employees are entitled to certain compensated absences based on their length of
employment. The entire compensated absences owed are reported in the governmental-wide financial
statement.
21
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
13. Pensions. For purposes of measuring the net pension liability and pension expense, information about the
fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (Base Plan) and
additions to/deductions from Base Plan’s fiduciary net position have been determined on the same basis as
they are reported by the Base Plan. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
14. Long-term Obligations. Long-term debt is recognized as a liability of a governmental fund when due. For
other long-term obligations, only that portion expected to be financed from expendable, available, financial
resources is reported as a fund liability of a governmental fund.
Deferred Outflows / Inflows of Resources. In addition to assets, the statement of financial position will
sometimes report a separate section for deferred outflows of resources. This separate financial statement
element, deferred outflows of resources, represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The
District has two items that qualify for reporting in this category and both occur on the government-wide
statement of net position. The first item is a deferred charge on refunding that results from the difference in
the carrying value of refunded debt and its reacquisition price and is amortized over the shorter of the life of
the refunded or refunding debt. The District also reports deferred outflows of resources related to pensions
for its proportionate shares of collective deferred outflows of resources related to pensions and District
contributions to pension plans subsequent to the measurement date of the collective net pension liability
(asset).
In addition to liabilities, the Statement of Financial Position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time. The District has two types of items, one of which arises under a
modified accrual basis of accounting, and the other arises in the government wide financial statements, that
qualify for reporting in this category. Accordingly, the one item, unavailable revenue, is reported only in the
governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes.
These amounts are deferred and recognized as an inflow of resources in the period that the amounts become
available. The District also reports deferred inflows of resources for its proportionate share of the collective
deferred inflows of resources related to pensions on the government wide financial statements.
15. Net Position Flow Assumption. Sometimes the District will fund outlays for a particular purpose from both
restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the
amounts to report as restricted net position and unrestricted net position in the government-wide financial
statements, a flow assumption must be made about the order in which the resources are considered to be
applied. It is the government’s policy to consider restricted net position to have been depleted before
unrestricted net position is applied.
16. Fund Balance Flow Assumptions. Sometimes the District will fund outlays for a particular purpose from
both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balances).
In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in
the governmental fund financial statements a flow assumption must be made about the order in which the
resources are considered to be applied. It is the District’s policy to consider restricted fund balance to have
been depleted before using any of the components of unrestricted fund balance. Further, when the
components of unrestricted fund balance can be used for the same purpose, committed fund balance is
depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
22
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
17. Fund Balance. In the fund financial statements, governmental funds report aggregate amounts for five
classifications of fund balances based on the constraints imposed on the use of these resources. The
nonspendable fund balance classification includes amounts that cannot be spent because they are either (a)
not in spendable form – prepaid items or inventories or (b) legally or contractually required to be maintained
intact.
The spendable portion of the fund balance comprises the remaining four classifications: restricted,
committed, assigned, and unassigned.
Restricted fund balance: This classification reflects the constraints imposed on resources either (a) externally
by creditors, grantors, contributions, or laws or regulations of other governments or (b) imposed by law
through constitutional provisions or enabling legislation.
Committed fund balance: These amounts can used only be for the specific purposes determined by a formal
action of the District’s highest level of decision-making authority. The School Board is the highest level of
decision-making authority for the District that can, by board action prior to the end of the fiscal year, commit
fund balance. Once adopted, the limitation imposed by the board resolution remains in place until a similar
action is taken (the adoption of another resolution) to remove or revise the limitation. This classification also
includes contractual obligations to the extent that existing resources in the fund have been specifically
committed for use in satisfying those contractual requirements.
Assigned fund balance: This classification reflects the amounts constrained by the District’s “intent” to be
used for specific purposes but do not meet the criteria to be classified as restricted or committed. The School
Board has by resolution authorized management to assign fund balance. The board may also assign fund
balance as it does when appropriating fund balance to cover a gap between estimated revenue and
appropriation in the subsequent year’s appropriated budget. Assigned fund balances include all remaining
amounts (except negative balances) that are reported in governmental funds, other than the General Fund,
that are not classified as nonspendable and are neither restricted nor committed.
Unassigned fund balance: This fund balance is the residual classification for the General Fund. It is also
used to report negative fund balances in other governmental funds.
18. Risk Management. The District is exposed to a considerable number of risks of loss, including: (a) damage
to and loss of property and contents; (b) employee torts; (c) professional liability, i.e. errors and omissions;
(d) environmental damage; (e) workers’ compensation, i.e. employee injuries; and (f) medical insurance
costs of employees. Commercial policies, transferring the risks of loss, except for relatively small deductible
amounts, are purchased for property and content damage, employee torts, and professional liabilities. Settled
claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three
fiscal years.
19. Estimates. The preparation of financial statements in conformity with generally accepted accounting
principles requires the District to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenditures during the reporting period. Actual results could differ from
those estimates.
23
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE B CASH AND INVESTMENTS
At June 30, 2017, the carrying amount was $17,516,702 and the bank balance of the District’s deposits was as
follows:
Bank Balance
Insured by Federal Depository Insurance 750,000
Uninsured and uncollateralized 18,159,366
Totals 18,909,336
At June 30, 2017, 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 13,897,448 13,923,853 123 Days
Total investments 13,897,448 13,923,853
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, 2017, $18,159,366 of the District’s deposits and certificates of deposit were exposed to custodial credit risk
because it was uninsured and uncollateralized. Of the investments, $13,897,448 was held in the Local
Government Investment Pool which is not insured or guaranteed by the FDIC.
The District has elected to invest in the LGIP through the Idaho State Treasurer. The Idaho State Treasurer
provides oversight for investments by or through any department or institute of the State of Idaho. Amounts held
by the LGIP were held in the following investments: government agency notes, commercial paper, corporate
bonds, money markets, U.S. treasury notes, Idaho repurchase agreements, and purchased accrued interest. All
investments for the LGIP are collateralized with securities held by the LGIP’s safekeeping agent in the LGIP’s
name. The investments held by the LGIP are carried at cost, which is not materially different than fair value
(determined by the Idaho State Treasurer’s office). These investments are subject to risk from market and interest
rate fluctuations.
The investments held by the Local Government Investment Pool are carried at cost, which is not materially
different than fair value (determined by the Idaho State Treasurer’s office). Information necessary to determine
the level of collateralization for the Local Government Investment Pool was unavailable. The Local Government
Investment Pool is audited annually and the related financial statements and note disclosures are included in the
State of Idaho’s Comprehensive Annual Financial Report, a copy of which can be downloaded from
www.sco.idaho.gov.
24
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE C RECEIVABLE – REPURCHASE AGREEMENT
The District has invested the proceeds from the 2016 construction bond in a repurchase agreement. This
agreement is reflected at $34,663,142 (cost plus accrued interest) as it is in effect a collateralized loan. The
securities are held by the counterparty in the repurchase agreement – Deutsche Bank Securities, Inc. The
District’s agreement restricts the underlying investments to United States Treasuries, United States Agency
Debentures, GNMA, United States Agency Mortgage Backs, United States Agency REMICS/CMOS and Idaho
Municipal bonds with a collateral margin percentage of 101% for the United States Treasuries and 102% for the
other securities.
Custodial credit risk – In the case of the repurchase agreement 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 investments or collateral securities that are in
the possession of an outside party. Of the District’s $34,663,142 investment in repurchase agreement, all of the
underlying securities are held by the investment’s counterparty, not in the name of the District. The District does
not have a policy restricting the holding of securities by counterparties.
NOTE D 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, 2017, balances of interfund amounts receivable or payable have been
recorded. The interfund balances at June 30, 2017, were as follows:
Receivable Payable
General Fund 813,039
Construction 2016 26,523
Nonmajor Funds 786,516
Total 813,039 813,039
The General Fund transferred $75,145 to Child Nutrition and $318,571 to Plant Facilities as required by State
law. The federal programs transferred $142,000 to the General Fund as budgeted for payment of indirect costs.
NOTE E 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.
25
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE F LEASE OBLIGATIONS
The District was obligated for the following leases, which are categorized as operating leases subject to non-
appropriation:
Lessor
Valley Office
Description of
Leased Property
Copiers
Date of
Inception
12/2016
Term of
Lease
48 Months
Future Monthly
Lease Amount
$99
Minimum
Lease Payments
$4,059
Total minimum lease payments $4,059
Total rental expense under the equipment and other operating leases for the year ended June 30, 2017, was
$30,911. Minimum future lease payments under these operating leases as of June 30, 2017, for the succeeding
years are:
Fiscal Year Ended June 30, Total
2018 1,188
2019 1,188
2020 1,188
2021 495
Total 4,059
NOTE G NON-MONETARY TRANSACTIONS
The District received $367,129 USDA Commodities during the 2016-2017 fiscal year. The commodities received
are valued at the average wholesale price as determined by the distributing agency. All commodities received by
the District were treated as revenue and expense of the fund receiving the commodities.
NOTE H 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, 2017, the limit for the District was 5% of $3,709,595,095 or
$185,479,755. The debt service fund had $10,113,310 available and the general obligation debt was $99,720,000
leaving a legal debt margin of $95,873,065.
NOTE I CONSTRUCTION COMMITMENTS
During the year ended June 30, 2017, the District contracted with various contractors to do certain projects,
revisions, and additions. The following construction contracts were in progress at June 30, 2017:
Average Expenditures Remaining
Original bid percent Recorded construction
Project plus changes complete Currently obligation
Fairview/Falls Valley roofs 255,719 62% 158,900 96,819
TRHS – Headwaters 56,254,955 46% 25,854,729 30,400,226
TRHS – Architect 3,444,260 90% 3,091,853 352,407
TRHS – Owner Representative 385,000 49% 189,000 196,000
Total 60,339,934 29,294,482 31,045,452
26
depreciated
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE J 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 K CAPITAL ASSETS
Following is a summary of the capital assets at June 30, 2017:
Capital assets, not being depreciated
Land
Elementary
Secondary
Construction in progress
Total capital assets, not being
Balance
June 30, 2016
2,986,916
3,107,374
1,790,159
7,884,449
Additions
28,166,192
28,166,192
Deletions
0
Transfers
(164,339)
(164,339)
Balance
June 30, 2017
2,986,916
3,107,374
29,792,012
35,886,302
Capital assets, being depreciated
Buildings
Elementary
Secondary
Administration
Total buildings
70,905,596
45,224,935
4,489,974
120,620,505
80,000
641,204
47,999
769,203 0
164,339
164,339
70,985,596
46,030,478
4,537,973
121,554,047
Equipment
Elementary
Secondary
Admin.
Total equipment
900,310
1,193,416
1,587,167
3,680,893
45,859
218,518
172,841
437,218 0 0
946,169
1,411,934
1,760,008
4,118,111
Vehicles 7,137,818 324,129 (55,653) 7,406,294
Total capital assets, being depreciated 131,439,216 1,530,550 (55,653) 164,339 133,078,452
Less accumulated depreciation for:
Buildings
Equipment
Vehicles
Total accumulated depreciation
(56,477,415)
(2,362,591)
(5,759,046)
(64,599,052)
(3,671,521)
(292,948)
(358,674)
(4,323,143)
55,653
55,653 0
(60,148,936)
(2,655,539)
(6,062,067)
(68,866,542)
Total capital assets being depreciated, net 66,840,164 (2,792,593) 0 164,339 64,211,910
Governmental activities capital assets, net 74,724,613 25,373,599 0 0 100,098,212
27
0
00
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE K CAPITAL ASSETS
Depreciation expense was charged to the functions of the primary government as follows:
Governmental activities
Instruction 3,662,599
Operations 301,870
Transportation 358,674
Total depreciation expense – governmental activities 4,323,143
NOTE L DEFEASED DEBT
The District purchased U.S. Securities and deposited $24,597,274 to an irrevocable trust with an escrow agent to
provide for all future debt service payments on $21,950,000 of the 2009 Series bonds. As a result, $21,950,000 of
the 2009 Series bonds are defeased and the liability for those bonds has been removed from the government-wide
statement of net assets. The 2009 Series refunded debt is scheduled to be paid off in September of 2018.
NOTE M GENERAL OBLIGATION BOND ISSUES
The District had five general obligation bond issues (2009, 2012A, 2012C, 2016A, and 2016B Series) outstanding
at the end of the year with interest rates ranging from 2.0 to 5.0 percent. The 2009 Series bonds are scheduled to
mature September of 2018. The 2012A and 2012C bonds are scheduled to mature September 2031 and September
2026, respectively. The 2016A and 2016B bonds are scheduled to mature September 2033 and September 2028,
respectively.
Future debt service requirements are as follows:
Fiscal Year Ended June 30, Total Interest Principal
2018 9,237,745 4,342,745 4,895,000
2019 7,428,575 4,198,575 3,230,000
2020 7,582,725 4,082,725 3,500,000
2021 7,610,575 3,965,575 3,645,000
2022 7,702,600 3,842,600 3,860,000
2023-2027 42,931,250 15,891,250 27,040,000
2028-2032 49,267,300 7,967,300 41,300,000
2033-2034 12,870,000 620,000 12,250,000
Total 144,630,770 44,910,770 99,720,000
Changes to bond principal payable and future interest payable are summarized as follows:
2012A 2012C 2016A 2016B 2009 Combined Principal Series Series Series Series Series Total
Balances at July 1, 2016 11,780,000 14,970,000 54,090,000 20,775,000 1,730,000 103,345,000
Reductions 2,320,000 1,175,000 130,000 3,625,000
Balances at June 30, 2017 11,780,000 12,650,000 52,915,000 20,775,000 1,600,000 99,720,000
Interest to be Provided
Balances at July 1, 2016 8,243,450 3,405,975 29,992,458 7,597,200 139,412 49,378,495
Reductions 587,600 614,050 2,327,983 879,550 58,542 4,467,725
Balances at June 30, 2017 7,655,850 2,791,925 27,664,475 6,717,650 80,870 44,910,770
28
Portion
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE N CHANGES IN LONG-TERM LIABILITIES
Following is a summary of the changes in long-term debt for the year ended June 30, 2017:
Balance Balance Current
July 1, 2016 Additions Deductions June 30, 2017 Balance
Bonds payable
Premium on bonds
Employee benefits
Total
103,345,000
17,247,623
1,470,259
122,062,882
480,682
480,682
3,625,000
1,733,459
5,358,459
99,720,000
15,514,164
1,950,941
117,185,105
4,895,000
175,074
5,070,074
Payment on the general obligation bonds are made by the Debt Service Fund from property taxes and state bond
levy equalization funds. Employee benefits will be paid by the fund in which the employee works.
NOTE O PAYROLL EXPENDITURES AND RELATED LIABILITIES
Teacher contracts were signed for the period September 2016 through June 2017, to be paid over the twelve
months of September 2016 through August 2017. The financial statements reflect the salary expense for this
period. The accrued payroll reflects the final two months of these contracts.
NOTE P RETIREMENT HEALTHCARE PLAN
Plan Description. Bonneville Joint School District #93’s Employee Group Benefits Plan is a single-employer
defined benefit healthcare plan administered by Blue Cross of Idaho. Blue Cross provides medical and
prescription drug insurance benefits to eligible retirees and their eligible dependents. Blue Cross Dental and
Willamette Dental provide dental insurance benefits to eligible retirees and their eligible dependents.
A retiree who retires with the Public Employee Retirement System of Idaho (PERSI) is eligible to keep the
District’s health insurance as a retiree until age 65, or until the retiree is eligible for coverage under Medicare.
Retirement eligibility is determined based on a minimum of reaching age 55 with at least 5 years of membership
with a PERSI employer. The retiree is on the same medical plan as the District’s active employees.
Funding Policy. The contribution requirement of plan members is established by the District’s insurance
committee in conjunction with our insurance provider. The required contribution is based on projected pay-as-
you-go financing requirements. For fiscal year 2017 the District contributed approximately $9.38 million to the
plan for current premiums or approximately 81% of total premiums.
Plan members receiving benefits contributed approximately $2,193,304 or approximately 19% 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 2017 were as follows:
Medical Coverage
Single $701.75
No Spouse W/Child $932.45
No Spouse W/Children $1,085.95
W/Spouse $1,159.45
W/Spouse + Child $1,457.45
W/Spouse + Children $1,457.45
29
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE P RETIREMENT HEALTHCARE PLAN, continued
Dental Coverage Delta Dental Willamette Dental
Single $40.15 $45.80
No Spouse W/Child $70.50 $74.40
No Spouse W/Children $126.95 $115.65
W/Spouse $80.25 $74.40
W/Spouse + Child $146.80 $115.65
W/Spouse + Children $146.80 $115.65
Annual OPEB Cost and Net OPEB Obligation. The District’s annual other post-employment benefit (OPEB) cost
(expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially
determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding
that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty years.
The following table shows the components of the District’s annual OPEB cost for the year for Bonneville Joint
School District #93’s Post-Retirement Healthcare Plan:
Annual required contribution 651,477
Interest on net OPEB obligation 46,568
Adjustment to annual required contribution (65,221)
Annual OPEB cost (expense) 632,824
Contributions made (161,370)
Increase in net OPEB obligation 471,454
Net OPEB obligation – beginning of year 1,304,413
Net OPEB obligation -end of year 1,775,867
Annual OPEB cost Percentage of OPEB cost contributed Net OPEB obligation
$632,824 25.5% $1,775,867
Three year disclosure of the District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation are presented as RSI which accompany the financial statements.
Funded Status and Funding Progress. As of July 1, 2016, the most recent actuarial valuation date, the actuarial
accrued liability (AAL) and the unfunded actuarial accrued liability (UAAL) for benefits was $3,442,255. 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 $40.8 million and the ratio of the UAAL to the covered payroll was
8.4%.
Actuarial valuations of an ongoing plan involve estimates of the value of the reported amounts and assumptions
about the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan
and the annual required contributions of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future. The schedule of funding progress
is presented as required supplementary information and presents multi-year trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial liabilities for benefits.
30
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE P RETIREMENT HEALTHCARE PLAN, continued
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the
substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer
and plan members to that point. The actuarial methods and assumptions used include techniques that are designed
to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
In the July 1, 2016, actuarial valuation, the Projected Unit Credit (PUC) actuarial cost method is used. The
actuarial assumptions included a 3.57% 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, 45.6% of
future retirees will elect dental coverage, 70% of future retirees who elect medical, dental or vision coverage and
are married are assumed to elect spousal coverage as well. The annual healthcare cost trend rate of 7% for
medical, 7% for prescription drugs, and 7% for dental initially, decreasing approximately .5% per year for
medical, .5% per year for prescription drugs, and .5% per year for dental until reaching an ultimate rate of 4.5%. It
was assumed salary increases will be 3.75% per annum. The UAAL is being amortized as a level percentage of
projected payrolls over a twenty five year time period.
NOTE Q 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 2016-2017 school year. At the time of retirement, a sum equal to
one-half of the monetary value of unused sick leave, calculated at the rate of pay at that time, is transferred from
the sick leave account to the employee’s retirement account. This money shall then be used to pay premiums for
health, accident, dental, and life insurance.
NOTE R PENSION PLAN
Plan Description
The District contributes to the Base Plan which is a cost sharing multiple-employer defined benefit pension plan
administered by Public Employee Retirement System of Idaho (PERSI or System) that covers substantially all
employees of the State of Idaho, its agencies, and various participating political subdivisions. The cost to
administer the plan is financed through the contributions and investment earnings of the plan. PERSI issues a
publicly available financial report that includes financial statements and the required supplementary information
for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov.
Responsibility for administration of the Base Plan is assigned to the Board comprised of five members appointed
by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active
Base Plan members with at least ten years of service and three members who are Idaho citizens not members of
the Base Plan except by reason of having served on the Board.
Pension Benefits
The Base Plan provides retirement, disability, death, and survivor benefits for eligible members or beneficiaries.
Benefits are based on members’ years of service, age, and highest average salary. Members become fully vested
in their retirement benefits with five years of credited service (5 months for elected or appointed officials).
Members are eligible for retirement benefits upon attainment of the ages specified for their employment
classification. The annual service retirement allowance for each month of credited service is 2.0% (2.3% for
police/firefighters) of the average monthly salary for the highest consecutive 42 months.
31
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE R PENSION PLAN, continued
The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature.
The Base Plan is required to provide a 1% minimum cost of living increase per year provided the Consumer Price
Index increases 1% or more. The PERSI Board has the authority to provide higher cost of living increases to a
maximum of the Consumer Price Index movement or 6%, whichever is less; however, any amount above the 1%
minimum is subject to review by the Idaho Legislature.
Member and Employer Contributions
Member and employer contributions paid to the Base Plan are set by statute and are established as a percent of
covered compensation and earnings from investments. Contribution rates are determined by the PERSI Board
within limitations, as defined by state law. The Board may make periodic changes to employer and employee
contribution rates (expressed as percentages of annual covered payroll) if current rates are actuarially determined
to be inadequate or in excess to accumulate sufficient assets to pay benefits when due.
The contribution rates for employees are set by statute at 60% of the employer rate. As of June 30, 2017, it was
6.79% for general employees and 8.36% for police and firefighters. The employer contribution rate is set by the
Retirement Board and was 11.32% for general employees and 11.66 % for police and firefighters. The District’s
contributions were $4,619,665 for the year ended June 30, 2017.
Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At June 30, 2017, the District reported a liability for its proportionate share of the net pension liability. The net
pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of that date. The District proportion of the net pension
liability was based on the District’s share of contributions in the Base Plan pension plan relative to the total
contributions of all participating PERSI Base Plan employers. At June 30, 2016, the District’s proportion was
.013093046 percent.
For the year ended June 30, 2017, the District recognized pension expense of $4,719,972. At June 30, 2017, the
District reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience
Changes in assumptions or other inputs
Net difference between projected and actual earnings on
pension plan investments
Changes in the employer’s proportion and differences
between the employer’s contribution and the employer’s
proportionate contributions
District contributions subsequent to the measurement date
590,002
12,918,343
205,148
4,619,665
2,644,676
6,036,054
Total 18,333,158 8,680,730
32
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE R PENSION PLAN, continued
$4,619,665 reported as deferred outflows of resources related to pensions resulting from Employer contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ending June 30, 2018.
The average of the expected remaining service lives of all employees that are provided with pensions through the
System (active and inactive employees) determined at July 1, 2015, the beginning of the measurement period
ended June 30, 2016, is 4.9 years and 5.5 years for the measurement period ended June 30, 2015.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions
will be recognized in pension expense (revenue) as follows:
Year ended June 30:
2017 (33,353)
2018 (33,353)
2019 3,018,949
2020 1,670,221
Actuarial Assumptions
Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of
payroll normal costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost
Method, the actuarial present value of the projected benefits of each individual included in the actuarial valuation
is allocated as a level percentage of each year’s earnings of the individual between entry age and assumed exit
age. The Base Plan amortizes any unfunded actuarial accrued liability based on a level percentage of payroll. The
maximum amortization period for the Base Plan permitted under Section 50-1322, Idaho Code, is 25 years.
The total pension liability in the June 30, 2016, actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Inflation 3.25%
Salary increases 4.5 – 10.00%
Salary inflation 3.75%
Investment rate of return 7.10%, net investment expenses
Cost-of-living adjustments 1%
Mortality rates were based on the RP – 2000 combined table for healthy males or females as appropriate with the
following offsets:
Set back 3 years for teachers
No offset for male fire and police
Forward one year for female fire and police
Set back one year for all general employees and all beneficiaries
An experience study was performed for the period July 1, 2007, through June 30, 2013, which reviewed all
economic and demographic assumptions other than mortality. Mortality and all economic assumptions were
studied in 2014 for the period from July 1, 2009, through June 30, 2013. The Total Pension Liability as of June
30, 2016, is based on the results of an actuarial valuation date of July 1, 2016.
33
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE R PENSION PLAN, continued
The long-term expected rate of return on pension plan investments was determined using the building bock
approach and a forward-looking model in which best estimate rates or expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighing the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation.
Even though history provides a valuable perspective for setting the investment return assumption, the system
relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the system
uses consultants, investment managers and trustees to develop capital market assumptions in analyzing the
system’s asset allocation. The assumptions and the system’s formal policy for asset allocation are shown below.
The formal asset allocation policy is somewhat more conservative than the current allocation of system’s assets.
The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to
expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions
are as of January 1, 2016.
Capital Market Assumptions
Expected Expected Strategic Strategic
Asset Class Return Risk Normal Ranges
Equities 70% 66% - 77%
Broad Domestic Equity 9.15% 19.00% 55% 50% - 65%
International 9.25% 20.20% 15% 10% - 20%
Fixed Income 3.05% 3.75% 30% 23% - 33%
Cash 2.25% 0.90% 0% 0% - 5%
Expected
Expected Expected Real Expected
Total Fund Return Inflation Return Risk
Actuary 7.00% 3.25% 3.75% N/A
Portfolio 6.58% 2.25% 4.33% 12.67%
*Expected arithmetic return net of fees and expenses.
Actuarial Assumptions:
Assumed Inflation – Mean 3.25%
Assumed Inflation – Standard Deviation 2.00%
Portfolio Arithmetic Mean Return 8.42%
Portfolio Long-Term Expected Geometric Rate of Return 7.50%
Assumed Investment Expenses 0.40%
Long-Term Expected Geometric Rate of Return,
Net of Investment Expenses 7.10%
34
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2017
NOTE R PENSION PLAN, continued
Discount Rate
The discount rate used to measure the total pension liability was 7.10%. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members will be made at the current
contribution rate.
Based on these assumptions, the pension plans’ net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all period of projected benefit payments to determine the total pension liability. The
long-term expected rate of return was determined net of pension plan investment expense but without reduction
for pension plan administrative expense.
Sensitivity of the employer’s proportionate share of the net pension liability to changes in the discount rate.
The following presents the employer’s proportionate share of the net pension liability calculated using the
discount rate of 7.10 percent, as well as what the employer’s proportionate share of the net pension liability would
be if it were calculated using a discount rate that is 1-percentage-point lower (6.10 percent) or 1-percentage-point
higher (8.10 percent) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(6.10%) (7.10%) (8.10%)
Employer’s proportionate share of the net
pension liability (asset) 52,065,229 26,541,615 5,315,911
Pension plan fiduciary net position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued PERSI
financial report.
PERSI issues a publicly available
supplementary information for
www.persi.idaho.gov.
PE
financial
RSI. That
report
report
that
may
includes
be
financial
obtained
statements
on the P
and
ERSI
the
we
required
bsite at
Payables to the pension plan
At June 30, 2017, the District reported no payables to the defined benefit pension plan for legally required
employer contributions and for legally required employee contributions which had been withheld from employee
wages but not yet remitted to PERSI.
NOTE S SUBSEQUENT EVENTS
Management of the District evaluated subsequent events through October 5, 2017, 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.
35
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, 2017
Favorable
(Unfavorable)
REVENUES Budget Actual Variance
Property taxes 4,520,000 4,461,527 (58,473)
Penalties and interest on delinquent taxes 25,000 23,609 (1,391)
Earnings on investments 10,000 63,266 53,266
Tuition 64,200 69,807 5,607
Rental 20,000 17,231 (2,769)
Other local 1,180,800 587,185 (593,615)
State apportionment
Base 46,151,320 46,843,841 692,521
Transportation 1,933,000 2,065,839 132,839
Exceptional child 52,000 87,970 35,970
Benefits 5,976,166 6,076,451 100,285
Property tax replacement 248,117 248,027 (90)
Other state revenue 2,501,397 3,390,540 889,143
Total revenues 62,682,000 63,935,293 1,253,293
EXPENDITURES
Instruction
Elementary 17,556,498 16,797,860 758,638
Secondary 15,312,405 15,441,111 (128,706)
Alternative school 718,246 752,313 (34,067)
Special education program 3,109,220 3,009,087 100,133
Special education preschool program 206,358 257,955 (51,597)
Gifted and talented 82,451 87,032 (4,581)
Interscholastic program 527,545 581,039 (53,494)
School activity 176,368 181,091 (4,723)
Total instruction 37,689,092 37,107,488 581,604
Support services
Attendance, guidance, and health 1,776,021 1,969,328 (193,307)
Special education support services 3,375,200 3,687,736 (312,536)
Instructional improvement 1,457,610 1,094,730 362,880
Educational media 472,683 470,340 2,343
Instruction related technology 1,618,034 1,627,787 (9,753)
Total support services 8,699,547 8,849,921 (150,374)
See Independent Auditor's Report.
36
0
Bonneville Joint School District #93
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
-Budget to Actual-
Fiscal Year Ended June 30, 2017
Favorable
(Unfavorable)
EXPENDITURES, continued Budget Actual Variance
Administration
Board of Education 130,731 123,021 7,710
District administration 1,969,494 1,628,871 340,623
School administration 4,744,268 4,708,346 35,922
Total administration 6,844,493 6,460,238 384,255
Business Administrative Services
Business operations 680,506 649,520 30,986
Central services 146,500 133,415 13,085
Administrative Technology Services 126,535 29,966 96,569
Total business administrative services 953,541 812,901 140,640
Operations
Building care (custodial) 4,556,654 3,963,497 593,157
Maintenance 1,420,594 2,128,355 (707,761)
Security 350,167 383,840 (33,673)
Total operations 6,327,414 6,475,692 (148,278)
Transportation 2,833,518 3,064,384 (230,866)
Support services 150,696 (150,696)
Community service 106,794 107,421 (627)
Total expenditures 63,454,400 63,028,741 425,659
Revenues over (under) expenditures (772,400) 906,552 1,678,952
OTHER FINANCING SOURCES (USES)
Operating transfers, net (148,000) (251,716) (103,716)
Revenues and other financing sources
over (under) expenditures (920,400) 654,836 1,575,236
Fund balance - July 1, 2016 5,278,016
Fund balance - June 30, 2017 5,932,852
See Independent Auditor's Report.
37
0
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, 2017
REVENUES
Property taxes
Penalty and interest on delinquent taxes
Other state revenue
Budget
9,803,000
50,000
100,000
Actual
7,769,640
36,034
1,852,308
Favorable
(Unfavorable)
Variance
(2,033,360)
(13,966)
1,752,308
Total revenues 9,953,000 9,657,982 (295,018)
EXPENDITURES
Debt service
Principal
Interest
Fees
3,625,000
4,467,808
3,625,000
4,467,725
1,500
0
83
(1,500)
Total expenditures 8,092,808 8,094,225 (1,417)
Revenues over (under) expenditures 1,860,192 1,563,757 (293,601)
Fund balance - July 1, 2016 8,555,016
Fund balance - June 30, 2017 10,118,773
See Independent Auditor's Report.
38
0
0
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, 2017
Favorable
(Unfavorable)
Budget Actual Variance
REVENUES
Property taxes 2,800,000 2,826,869 26,869
Penalties and interest on delinquent taxes 16,337 16,337
Other local 898,197 898,197
Total revenues 2,800,000 3,741,403 941,403
EXPENDITURES
Instruction 75,000 254,634 (179,634)
Support services 925,565 379,581 545,984
Administration 30,000 78,447 (48,447)
Business administrative services 172,000 193,046 (21,046)
Operations 890,400 876,904 13,496
Transportation 400,900 412,320 (11,420)
Facility acquisition 662,360 581,500 80,860
Total expenditures 3,156,225 2,776,432 379,793
Revenues over (under) expenditures (356,225) 964,971 1,321,196
OTHER FINANCING SOURCES (USES)
Operating transfers, net 200,000 318,571 118,571
Revenues and other financing sources
over (under) expenditures (156,225) 1,283,542 1,439,767
Fund balance - July 1, 2016 5,221,313
Fund balance - June 30, 2017 6,504,855
See Independent Auditor's Report.
39
Bonneville Joint School District #93
Construction 2016
Statement of Revenues, Expenditures, and Changes in Fund Balance
-Budget to Actual-
Fiscal Year Ended June 30, 2017
REVENUES
Earnings on investments
Budget
50,000
Actual
385,424
Favorable
(Unfavorable)
Variance
335,424
Total revenues 50,000 385,424 335,424
EXPENDITURES
Facility acquisition
Total expenditures
20,000,000
20,000,000
28,051,759
28,051,759
(8,051,759)
(8,051,759)
Revenues over (under) expenditures (19,950,000) (27,666,335) (7,716,335)
Fund balance - July 1, 2016 61,996,346
Fund balance - June 30, 2017 34,330,011
See Independent Auditor's Report.
40
Bonneville Joint School District #93
Required Supplementary Information
Fiscal Year Ended June 30, 2017
General Employees' Other Postemployment Benefits Plan
Schedule of Funding Progress
Actuarial
Accrued
Liability UAAL as a
Actuarial (AAL) -Percentage of
Actuarial Value of Projected Unit Unfunded Covered Covered
Valuation Assets Credit AAL (UAAL) Funded Ratio Payroll Payroll
Date ( a ) ( b ) (b - a) (a / b) ( c ) [(b - a) / c]
6/30/2017 -3,442,255 3,442,255 -40,809,784 8.43%
6/30/2016 -2,819,069 2,819,069 -38,322,048 7.36%
6/30/2015 -2,724,093 2,724,093 -36,799,863 7.40%
Schedule of Employer's Share of Net Pension Liability
PERSI-Base Plan Last 10-Fiscal Years *
2017 2016 2015
Employer's portion of net pension liability 1.30930460% 1.313797300% 1.289265200%
Employers proportionate share of the net 26,541,615 17,300,573 9,491,010
pension liability
Employer's covered-employee payroll 40,809,784 38,322,048 36,799,863
Employer's proportional share of the net pension liability as
a percentage of its covered-employee payroll 65.04% 45.15% 25.79%
Plan fiduciary net position as a percentage of the total
pension liability 87.26% 94.95% 94.95%
* GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full
10-year trend is compiled, the District will present information for those years for which information is
2017 Data reported is measured as of June 30, 2016.
Schedule of Employer Contributions
PERSI-Base Plan Last 10-Fiscal Years *
2017 2016 2015
Statutorily required contribution 4,619,668 4,296,117 4,190,112
Contributions in relation to the statutorily 4,619,665 4,338,975 4,165,658
required contribution
Contribution (deficiency) excess (3) 42,858 (24,454)
Employer's covered-employee payroll 40,809,784 38,322,048 36,799,863
Contributions as a percentage of covered-11.3200% 11.3224% 11.3198%
employee payroll
* GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full
10-year trend is compiled, the District will present information for those years for which information is
2017 Data reported is measured as of June 30, 2017.
See Independent Auditor's Report.
41
Bonneville Joint School District #93
Notes to Required Supplementary Information
Fiscal Year Ended June 30, 2017
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 Debt Service Fund and the Construction 2016 Fund.
See Independent Auditor's Report.
42
OTHER FINANCIAL INFORMATION
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
Bonneville Joint School District #93
All Nonmajor Funds
Combining Balance Sheet
June 30, 2017
Public Idaho Improving Perkins III Supporting All
Child Federal Community Special Driver's Professional School Substance Telford Basic Migrant IDEA IDEA Professional Effective Construction Nonmajor
Nutrition Forest Resource E-rate Projects Ed Technical Technology Abuse Grant Medicaid Programs Education School-Age Preschool Technical Title III Instruction 2012 Funds
ASSETS
Cash and investments 1,139,713 76,837 32,948 214,044 344,434 31,379 214,448 457,440 158,053 314,214 2,983,510
Federal grants receivable 63,963 0 530,612 14,429 398,042 17,830 0 5,167 50,667 1,080,710
State receivables 9,375 89,128 167,585 266,088
Other receivables 1,007 2,343 3,350
Supplies inventory 95,309 95,309
Total assets 1,299,992 79,180 32,948 214,044 344,434 40,754 303,576 457,440 158,053 0 481,799 530,612 14,429 398,042 17,830 0 5,167 50,667 0 4,428,967
LIABILITIES AND
FUND EQUITY
LIABILITIES
Accounts payable 69,918 2,213 0 3,499 12,606 42,965 417 35,519 3,426 1,572 3,312 0 564 0 176,011
Accrued wages 117,146 1,573 25,321 100 272,965 123,467 2,738 143,770 6,024 1,996 695,100
Accrued employee benefits 87,112 0 328 11,275 8 173,315 48,199 2,062 117,350 6,192 0 1,836 0 447,677
Interfund payable
Total liabilities
232,277
506,453 2,213 0 0 3,499 1,901 49,202 43,073 417 0 481,799
355,520
530,612
8,057
14,429
133,610
398,042
5,614
17,830 0
1,335
5,167
50,103
50,667 0
786,516
2,105,304
FUND EQUITY
Nonspendable
Restricted
Total fund equity
Total liabilities
and fund equity
95,309
698,230
793,539
1,299,992
76,967
76,967
79,180
32,948
32,948
32,948
214,044
214,044
214,044
340,935
340,935
344,434
38,853
38,853
40,754
254,374
254,374
303,576
414,367
414,367
457,440
157,636
157,636
158,053
0
0
0
481,799
0
530,612
0
14,429
0
398,042
0
17,830
0
0
0
5,167
0
50,667
0
0
95,309
2,228,354
2,323,663
4,428,967
See Independent Auditor's Report.
43
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0
0
0
Bonneville Joint School District #93
All Nonmajor Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
Fiscal Year Ended June 30, 2017
Public Idaho Improving Perkins III Supporting All
Child Federal Community Special Driver's Professional School Substance Telford Basic Migrant IDEA IDEA Professional Effective Construction Nonmajor
Nutrition Forest Resource E-rate Projects Ed Technical Technology Abuse Grant Medicaid Programs Education School-Age Preschool Technical Title III Instruction 2012 Funds
REVENUES
Earnings on investments 1,533 1,533
Food service 939,035 939,035
Other local 13,992 256,013 176,151 15,150 461,306
Other state revenue 1,665 9,375 441,151 853,432 152,094 2,270,509 3,728,226
Federal grants and assistance 2,859,288 8,035 38,256 1,877,060 49,239 1,871,317 65,667 134,887 64,038 201,359 7,169,146
Total revenues 3,813,980 8,035 0 256,013 214,407 24,525 441,151 853,432 152,094 0 2,270,509 1,877,060 49,239 1,871,317 65,667 134,887 64,038 201,359 1,533 12,299,246
EXPENDITURES
Instruction
Elementary
Secondary
Alternative school
Special education program
Special ed preschool program
School activity
Summer school
Vocational
Support services
Attendance, guidance, and health
Special ed support services
Instructional improvement
Educational media
Instructional related technology
School administration
Business Administrative Services
Operations
Transportation
Other support services
Community services
Noninstructional services
Facility acquisition
3,501,532
35,377
(8)
41,969
26,363
24,823
6,255
73,965
14,089
20,250
44,819
1,267
22,513
604
36,822
374,515
24,023
7,175
902
118,869
589,431
72,661
4,842
3,661
79,442
4,904
711,343
85,512
5,999
1,305,780
161,875
1,370,742
96,612
1,684
40,651
102,583
1,079
20,345
113,692
45,770
18,902
10,152
39,087
1,071,233
53,999
746,085
64,863
804
114,091
15,461
5,335
63,832
206 201,296
63
649,775
1,397,105
185,267
12,843
1,782,576
150,375
35,377
50,803
488,606
59,998
2,052,669
541,245
15,168
671,995
291,801
72,661
125,163
604
84,857
56,983
3,524,045
649,775
Total expenditures 3,501,532 35,377 (8) 41,969 234,344 37,426 406,615 780,961 87,945 4,904 2,270,509 1,812,060 49,239 1,871,317 65,667 134,887 64,038 201,359 649,775 12,249,916
Revenues over (under) expenditures 312,448 (27,342) 8 214,044 (19,937) (12,901) 34,536 72,471 64,149 (4,904) 0 65,000 0 0 0 0 0 0 (648,242) 49,330
OTHER FINANCING
SOURCES (USES)
Net transfers (1,855) (65,000) (66,855)
Total other financing sources (1,855) 0 0 0 0 0 0 0 0 0 0 (65,000) 0 0 0 0 0 0 0 (66,855)
Revenues and other financing sources
over (under) expenditures and other
financing sources (uses) 310,593 (27,342) 8 214,044 (19,937) (12,901) 34,536 72,471 64,149 (4,904) 0 0 0 0 0 0 0 0 (648,242) (17,525)
Fund balance - July 1, 2016 482,946 104,309 32,940 0 360,872 51,754 219,838 341,896 93,487 4,904 0 0 0 0 0 0 0 0 648,242 2,341,188
Fund balance - June 30, 2017 793,539 76,967 32,948 214,044 340,935 38,853 254,374 414,367 157,636 0 0 0 0 0 0 0 0 0 0 2,323,663
See Independent Auditor's Report.
44
Bonneville Joint School District #93
All Agency Funds
Combining Schedule of Changes in Assets and Liabilities
Fiscal Year Ended June 30, 2017
Balance Balance
ASSETS June 30, 2016 Receipts Disbursements June 30, 2017
Cash
Bonneville High School 103,924 800,030 850,068 53,886
Hillcrest High School 226,049 720,511 706,880 239,680
Rocky Mountain Middle School 55,693 134,780 135,126 55,347
Sandcreek Middle School 151,070 153,612 122,781 181,901
Lincoln High School 41,141 5,649 9,209 37,581
Ammon Elementary School 13,145 30,929 12,746 31,328
Bridgewater Elementary 8,890 11,556 6,843 13,603
Cloverdale Elementary School 7,438 26,772 28,296 5,914
Discovery Elementary 25,588 32,093 34,980 22,701
Fairview Elementary School 14,374 17,660 20,901 11,133
Hillview Elementary School 32,782 17,643 22,675 27,750
Falls Valley Elementary School 10,273 15,191 18,087 7,377
Iona Elementary School 20,981 24,687 21,177 24,491
Mountain Valley Elementary 14,918 52,334 48,368 18,884
Rimrock Elementary School 17,091 27,396 35,292 9,195
Summit Hills Elementary School 22,605 20,160 35,989 6,776
Technical Careers High School 16,182 97,908 99,070 15,020
Tiebreaker Elementary School 18,962 20,555 22,206 17,311
Ucon Elementary School 8,798 22,593 27,580 3,811
Woodland Hills Elementary School 18,621 27,058 36,247 9,432
Total cash 828,527 2,259,117 2,294,521 793,123
Investments
Bonneville High School 242,828 81 242,909
Hillcrest High School 184,271 61 184,332
Rocky Mountain Middle School 20,724 62 10,400 10,386
Sandcreek Middle School
Lincoln High School
Ammon Elementary School
Bridgewater Elementary
Cloverdale Elementary School
Discovery Elementary
Fairview Elementary School
Hillview Elementary School
Falls Valley Elementary School
Iona Elementary School
Mountain Valley Elementary
Rimrock Elementary School
Summit Hills Elementary School
Technical Careers High School
Tiebreaker Elementary School
Ucon Elementary School
Woodland Hills Elementary School
Total investments 447,823 204 10,400 437,627
Total assets 1,276,350 2,259,321 2,304,921 1,230,750
See Independent Auditor's Report.
45
Bonneville Joint School District #93
All Agency Funds
Combining Schedule of Changes in Assets and Liabilities
Fiscal Year Ended June 30, 2017
Balance Balance
LIABILITIES June 30, 2016 Increases Decreases June 30, 2017
Accounts payable
Bonneville High School 33,317 57,060 (23,743)
Hillcrest High School 3,511 25,481 (21,970)
Rocky Mountain Middle School (5,825) 10,549 4,724
Sandcreek Middle School (8,195) 11,629 3,434
Lincoln High School 3,159 1,153 2,006
Ammon Elementary School 508 262 246
Bridgewater Elementary 2,985 175 3,160
Cloverdale Elementary School 6,225 122 6,347
Discovery Elementary 7,033 1,356 5,677
Fairview Elementary School 3,301 2,966 335
Hillview Elementary School 5,610 749 4,861
Falls Valley Elementary School 442 347 95
Iona Elementary School 206 11 195
Mountain Valley Elementary 68 19 87
Rimrock Elementary School 1,683 1,596 87
Summit Hills Elementary School 19,925 19,000 925
Technical Careers High School 15 12 3
Tiebreaker Elementary School 209 153 56
Ucon Elementary School 25 9 16
Woodland Hills Elementary School 2,395 927 1,468
Total accounts payable 76,597 22,494 111,082 (11,991)
Due to student groups
Bonneville High School 313,435 7,103 320,538
Hillcrest High School 406,809 39,173 445,982
Rocky Mountain Middle School 82,242 21,233 61,009
Sandcreek Middle School 159,265 19,202 178,467
Lincoln High School 37,982 2,407 35,575
Ammon Elementary School 12,637 18,445 31,082
Bridgewater Elementary 5,905 4,538 10,443
Cloverdale Elementary School 1,213 1,646 (433)
Discovery Elementary 18,555 1,531 17,024
Fairview Elementary School 11,073 275 10,798
Hillview Elementary School 27,172 4,283 22,889
Falls Valley Elementary School 9,831 2,549 7,282
Iona Elementary School 20,775 3,521 24,296
Mountain Valley Elementary 14,850 3,947 18,797
Rimrock Elementary School 15,408 6,300 9,108
Summit Hills Elementary School 2,680 3,171 5,851
Technical Careers High School 16,167 1,150 15,017
Tiebreaker Elementary School 18,753 1,498 17,255
Ucon Elementary School 8,773 4,978 3,795
Woodland Hills Elementary School 16,226 8,262 7,964
Total due to student groups 1,199,753 99,100 56,112 1,242,741
Total liabilities 1,276,350 121,594 167,194 1,230,750
See Independent Auditor's Report.
46
Bonneville Joint School District #93
Taxes Receivable
Fiscal Year Ended June 30, 2017
Unearned balance at July 1, 2016
ADDITIONS
2016 Roll charges
Subsequent additions and cancellations
Total additions
DEDUCTIONS
Collections received
Current amount due on taxes collected
by the counties
Total deductions
Unearned balance at June 30, 2017
Total
127,512
4,467,950
(6,073)
4,461,877
2,820,470
1,641,057
4,461,527
127,862
General Fund
2016
0
2015
and prior
127,512
4,467,947
(5,541)
4,462,406
(532)
(532)
2,729,598
1,635,219
4,364,817
90,872
5,838
96,710
97,589 30,270
See Independent Auditor's Report.
47
Bonneville Joint School District #93
Taxes Receivable
Fiscal Year Ended June 30, 2017
Debt Service Fund Capital Projects Fund
2015 2015
Total 2016 and prior Total 2016 and prior
276,610 0 276,610 91,324 0 91,324
7,787,135 7,787,138 2,820,988 2,820,989
(10,613) (9,650) (963) (3,902) (3,496) (406)
7,776,522 7,777,488 (963) 2,817,086 2,817,493 (406)
4,909,332 4,756,615 152,717 1,789,914 1,723,144 66,770
2,860,308 2,850,734 9,574 1,036,955 1,032,714 4,241
7,769,640 7,607,349 162,291 2,826,869 2,755,858 71,011
283,492 170,139 113,356 81,541 61,635 19,907
See Independent Auditor's Report.
48
Single Audit Section
Bonneville Joint School District #93
June 30, 2017
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Board of Trustees
Bonneville Joint School District #93
Idaho Falls, Idaho
We have audited, in accordance with the auditing standards generally accepted in the United States and the
standards applicable to the financial audits contain in the Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, each major
fund, and the aggregate remaining fund information of Bonneville Joint School District #93 as of and for the year
ended June 30, 2017, 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 5, 2017.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’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 the District’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements
will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of the internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies. Given these limitations, during out audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Bonneville Joint School District #93’s financial
statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts.
49
However, providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or
other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity’s internal control and compliance. Accordingly this communication is not
suitable for any other purpose.
Wipfli LLP
CPAs and Consultants
Idaho Falls, Idaho
October 5, 2017
50
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR
FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
Board of Trustees
Bonneville Joint School District #93
Idaho Falls, Idaho
Report on Compliance for Each Major Federal Program
We have audited Bonneville Joint School District #93’s compliance with the types of compliance requirements
described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct
and material effect on the Bonneville Joint School District #93’s major federal program for the year ended June
30, 2017. Bonneville Joint School District #93’s major federal program is identified in the summary of auditor’s
results section of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants
applicable to its major federal program.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for Bonneville Joint School District #93’s major federal
program based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States; the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable
assurance about whether noncompliance with the types of compliance requirements referred to above that could
have a direct and material effect on a major federal program occurred. An audit includes examining, on a test
basis, evidence about Bonneville Joint School District #93’s compliance with those requirements and performing
such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of the District’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, 2017.
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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 the major federal program and to test and report on internal control over
compliance in accordance with Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness
of Bonneville Joint School District #93’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely
basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in
internal control over compliance, such that there is a reasonable possibility that material noncompliance with a
type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely
basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that
is less severe than a material weakness in internal control over compliance, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly this report is not suitable for any other purpose.
Wipfli LLP
CPAs and Consultants
Idaho Falls, Idaho
October 5, 2017
52
Bonneville Joint School District #93
Schedule of Findings and Questioned Costs
Fiscal Year Ended June 30, 2017
SECTION I -SUMMARY OF AUDITORS’ RESULTS
Financial Statements
Type of auditor’s report issued: Unmodified.
Internal control over financial reporting:
Material weakness (es) identified? Yes X No
Significant deficiency (ies) identified
that are not considered to be
material weaknesses? Yes X None reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major programs:
Material weakness (es) identified? Yes X No
Significant deficiency(ies) identified
that are not considered to be
material weaknesses? Yes X None reported
Type of auditor’s report issued on compliance for major programs: Unmodified.
Any audit findings disclosed that are required to be reported in accordance
with Title 2 U.S. Code of Federal Regulations, Part 200, Uniform
Administrative Requirement, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance)? Yes X No
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster
10.553/10.555/10.559 Child Nutrition Cluster
Dollar threshold used to distinguish
between type A and type B programs: $750,000
Auditee qualified as low-risk auditee? X Yes No
53
Bonneville Joint School District #93
Schedule of Findings and Questioned Costs
Fiscal Year Ended June 30, 2017
SECTION II -FINDINGS -FINANCIAL STATEMENT AUDITS
None
SECTION III -FINDINGS AND QUESTIONED COSTS -MAJOR FEDERAL AWARD PROGRAMS
AUDIT
None
54
Entity Identifying
Education:
Bonneville Joint School District #93
Schedule of Expenditures of Federal Awards
Fiscal Year Ended June 30, 2017
Federal Grantor / Pass-Through Grantor / Program Title
Federal
CFDA
Number
Pass-Through
Entity Identifying
Number Expenditures
United States Department of Education
Passed Through Idaho State Department of Education:
Title I Grants to Local Educational Agencies
Migrant Education -Basic State Grant Program
English Language Acquisition
Supporting Effective Instruction
84.010
84.011
84.365
84.367
S010A150012
S010A160012
S011A150012
S011A160012
S365A150012
S365A160012
S367A150011
S367A160011
809,756
1,067,304
12,869
36,370
16,629
47,409
18,280
183,079
Subtotal 2,191,696
Special Education Cluster
Special Education – School-age
Special Education – Preschool
84.027
84.173
H027A150088
H027A160088
H173A150030
H173A160030
5,328
1,865,989
725
64,942
Total Special Education Cluster 1,936,984
Total Passed Through the Idaho State Department of Education 4,128,680
Passed Through the State Division of Professional-Technical
Vocational Education -Basic Grants to States 84.048 V048A150012
V048A160012
10,924
123,963
Total U.S. Department of Education 4,263,567
United States Department of Transportation
Passed Through the State Department of Transportation:
Highway Planning and Construction
Highway Planning and Construction
20.205
20.616
26,029
18,254
Total U.S. Department of Transportation 44,283
55
The accompanying notes are an integral part of this schedule.
Bonneville Joint School District #93
Schedule of Expenditures of Federal Awards
Fiscal Year Ended June 30, 2017
Federal Grantor / Pass-Through Grantor / Program Title
Federal
CFDA
Number
Pass-Through
Entity Identifying
Number Expenditures
United States Department of Agriculture
Passed Through the Idaho State Department of Education:
Child Nutrition Cluster
Cash Assistance
School Breakfast Program
National School Lunch Program-cash
Summer Food Service Program for Children
Non-Cash Assistance (Commodities)
National School Lunch Program
Total Child Nutrition Cluster
10.553
10.555
10.559
10.555
201616N109947
201717N109947
201616N109947
201717N109947
201616N109947
201717N109947
57,089
427,441
266,875
1,631,132
24,837
63,963
2,471,337
367,129
2,838,466
Team Nutrition Grants
Fresh Fruit and Vegetable Program
10.574
10.582
201414N351130
201515N350330
201616L160347
201717L160347
(494)
4,900
2,262
18,562
Total Passed Through Idaho State Department of Education 2,863,696
Passed Through Bonneville County
Federal Forest 10.665 35,377
Total U.S. Department of Agriculture 2,899,073
Total expenditures of federal awards 7,206,923
56
The accompanying notes are an integral part of this schedule.
Bonneville Joint School District #93
Notes to Schedule of Expenditures of Federal Awards
Fiscal Year Ended June 30, 2017
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, 2017. The
information in this schedule is presented in accordance with the requirements of the Uniform
Guidance issued by the Office of Management and Budget (OMB). Because the schedule presents
only a selected portion of the operations of the District, it is not intended to and does not present
the financial position or changes in net assets of the District.
NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the modified basis of accounting as
described in Note A to the District’s financial statements. Such expenditures are recognized
following the cost principles contained in Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursements. Negative amounts shown on
the Schedule represent adjustments or credits made in the normal course of business to amounts
reported as expenditures in prior years. Pass-through entity identifying numbers are presented
where available.
NOTE C NONMONETARY TRANSACTIONS
Nonmonetary assistance is reported for the Food Distribution Program at fair market value of
commodities received which is established by the State Department of Education. The District
held an undetermined amount of those commodities in inventory at June 30, 2017.
NOTE D INDIRECT COST RATE
The District has elected not to use the 10% de minimis indirect cost rate allowed under Uniform
Guidance.
57
Bonneville Joint School District #93
Summary Schedule of Prior Year Audit Findings
Fiscal Year Ended June 30, 2017
Audit Finding Reference: none
Status of Prior Audit Finding: none
58