HomeMy WebLinkAbout2019 Bonneville School District AuditBonneville Joint School District #93
Financial Statements and
Supplementary Information
Year Ended June 30, 2019
Bonneville Joint School District #93
Contents
June 30, 2019
MANAGEMENT’S DISCUSSION & ANALYSIS ........................................................................................... 1-7
INDEPENDENT AUDITOR’S REPORT.......................................................................................................... 8-9
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...................................................................................................................... 18-41
REQUIRED FINANCIAL INFORMATION
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget to Actual .......................................................................................................................................... 42-43
Required Supplementary Information.......................................................................................................... 44-46
Notes to Required Supplementary Information .................................................................................................47
OTHER FINANCIAL INFORMATION
All Nonmajor Funds
Combining Balance Sheet..................................................................................................................................48
All Nonmajor Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance ............................................49
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Bonneville Joint School District #93
Contents
June 30, 2019
All Agency Funds
Combining Schedule of Changes in Assets and Liabilities ......................................................................... 50-51
Taxes Receivable ......................................................................................................................................... 52-53
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.................................................................................................................. 54-55
Independent Auditor’s Report on Compliance for Each Major
Federal Program and Report on Internal Control Over
Compliance Required by the Uniform Guidance......................................................................................... 56-57
Schedule of Findings and Questioned Costs................................................................................................ 58-60
Schedule of Expenditures of Federal Awards.............................................................................................. 61-62
Notes to Schedule of Expenditures of Federal Awards .....................................................................................63
Summary Schedule of Prior Audit Findings .....................................................................................................64
Corrective Action Plan.......................................................................................................................................65
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Bonneville Joint School District #93
Management’s Discussion & Analysis
Fiscal Year Ended June 30, 2019
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, 2019. 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 2019 are as follows:
In total, net position decreased $2,766,113 which represents an 8% increase from 2018 restated balance of
$33,244,810.
General revenues accounted for $82,867,868 in revenue or 79% of all revenues. Program specific revenues in the
form of charges for services, operating grants and contributions, and capital grants and contributions accounted
for $22,428,917 or 21% of total revenues of $105,296,785.
Total assets of governmental activities decreased by $7,132,593, as cash, investments, and repurchase agreements
decreased by $10,893,335, receivables and prepaid expenses increased by $789,986, inventory increased by
$17,424, and capital assets increased by $2,953,332. 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 $4,117,447.
The District had $108,062,898 in expenses; only $22,428,917 of these expenses were offset by program specific
charges for services, grants, or contributions. General revenues (primarily state support and local property taxes)
of $82,867,868 were adequate to provide for these programs.
Among major funds, the General Fund had $77,112,786 in revenues, and $78,596,338 in expenditures. The
General Fund’s fund balance decreased $1,867,623 from 2018.
USING THE BASIC FINANCIAL STATEMENTS
This annual report consists of a series of financial statements and notes to those statements. These statements are
organized so the reader can understand Bonneville Joint School District #93 as a financial whole, an entire
operating entity. The statements then proceed to provide an increasingly detailed look at specific financial
activities.
The Statement of Net Position and the Statement of Activities provide information about the activities of the
whole school district, presenting both an aggregate view of the District’s finances, and a longer-term view of
those finances. Fund financial statements provide the next level of detail. For governmental funds, these
statements tell how services were financed in the short-term, as well as what remains for future spending. The
fund financial statements also look at the District’s most significant funds with all other nonmajor funds presented
in total in one column. In the case of Bonneville Joint School District #93, the General Fund is by far the most
significant fund.
1
Bonneville Joint School District #93
Management’s Discussion & Analysis
Fiscal Year Ended June 30, 2019
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 2019?” 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 2018 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.
2
Bonneville Joint School District #93
Management’s Discussion & Analysis
Fiscal Year Ended June 30, 2019
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 2019 compared to 2018:
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
2019
2018
As restated
72,671,579
130,209,808
82,757,504
127,256,476
202,881,387 210,013,980
12,682,304 11,335,043
14,533,132
164,599,873
15,850,177
168,688,536
179,133,005 184,538,713
5,951,989 3,565,500
24,134,348
20,984,961
(14,640,612)
24,900,422
18,867,553
(10,523,165)
30,478,697 33,244,810
Total assets of governmental activities decreased by $7,132,593, as cash and cash equivalents decreased by
$10,893,335, receivables and prepaid expenses increased by $789,986, inventory increased by $17,424, and
capital assets increased by $2,953,332. The District’s assets and deferred outflows of resources exceeded
liabilities and deferred inflows of resources by $30,478,697 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 $4,117,447 from 2018.
3
Bonneville Joint School District #93
Management’s Discussion & Analysis
Fiscal Year Ended June 30, 2019
The following table shows the changes in net position for fiscal years 2019 and 2018:
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
2019 2018
3,752,619 1,416,411
18,676,298 18,991,391
18,108,442 16,219,284
62,161,518 58,868,262
22,474 26,570
2,575,434 1,660,167
105,296,785 97,182,085
58,067,752 49,320,054
17,173,968 14,126,633
7,388,801 7,755,699
2,225,366 1,194,851
9,197,915 8,212,565
4,343,281 3,670,388
44,271
144,605 136,187
3,623,659 3,504,507
4,015,700 2,914,988
1,881,851 1,036,885
108,062,898 91,917,028
(2,766,113) 5,265,057
Governmental revenues come primarily from three sources. State aid of $72,539,019 consists of the state
apportionment, other state grants, and revenue in lieu of taxes, and makes up 68.9% of revenues from
governmental activities. Property taxes of $18,108,442 make up 17.2% of total revenues from governmental
activities. Federal contracts and grants of $9,697,902 make up 9.21% of total revenues from governmental
activities.
Instruction expenditures including the support activities of support services, administrative, business admin
services, operations, and transportation comprise $98,397,083 of District expenses.
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Bonneville Joint School District #93
Management’s Discussion & Analysis
Fiscal Year Ended June 30, 2019
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 2019 Services 2019
Instruction 53.74 58,067,752 52,242,498
Support services 15.89 17,173,968 10,481,309
Administrative 6.84 7,388,801 7,346,720
Business admin services 2.06 2,225,366 2,225,366
Operations 8.51 9,197,915 8,356,268
Transportation 4.02 4,343,281 1,717,451
Community service 0.13 144,605 138,294
Non-instructional 3.35 3,623,659 15,749
Interest and fiscal charges 3.72 4,015,700 2,125,247
Capital improvements 1.74 1,881,851 985,079
Total expenses 100 108,062,898 85,633,981
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 charged with responsibility for a school’s
administration) Board of Education, Administration, includes expenses associated with administrative supervision
of the District.
Business Admin Services: The program concerned with the fiscal operations of the District. This program may
include budgeting, fiscal and business expenditures, receiving and disbursing, purchasing, financial and property
accounting, payroll, internal auditing, and activities that support other administrative and instructional functions
including fiscal services, human resources, planning, and administrative information technology.
Operations: Operations and maintenance includes the personnel, activities, and programs concerned with keeping
the physical plant operational and keeping the grounds, buildings, and equipment in effective working condition
and in an adequate and safe state of repair.
Community Services: Community Services provide training and materials for parents in the form of workshops,
in-service, parent/ family nights, a parent center library, and Pine Basin summer camp. These services better train
parents to help students reach state standards.
Transportation: Transportation includes the personnel, activities, and services for providing student transportation
to school and to activities and to provide for the general administrative and maintenance needs of District
vehicles.
Non-instructional: Non-instructional services include the preparation, delivery, and servicing of lunches, snacks,
and other incidental meals to students and school staff in connection with school activities.
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Bonneville Joint School District #93
Management’s Discussion & Analysis
Fiscal Year Ended June 30, 2019
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 $105,292,049 and expenditures of
$114,178,933. The net change in fund balance for the year in the General Fund, Debt Service Fund, Capital
Projects Fund, and Construction 2018 Fund, was a decrease of $1,867,623, an increase of $1,000,909, an increase
of $235,389, and a decrease of $4,676,105 respectively.
GENERAL FUND BUDGETING HIGHLIGHTS
During the course of fiscal 2019 year, the District did not amend its budget.
For the General Fund, the budgeted revenue was $77,472,645 and the budgeted expense was $77,681,524. Actual
revenue was $77,112,786 which includes $692,390 for leadership premiums to qualifying personnel and $592,518
in professional development funds. Actual expenditures were $78,596,338, which include expenditures related to
the leadership premiums and professional development.
CAPITAL ASSETS
At the end of the fiscal year 2019, the District had $130,209,808 invested in land, buildings, furniture and
equipment, and vehicles (net of accumulated depreciation).
2019 2018
Non-depreciable assets 10,643,035 65,667,940
Buildings and improvements 115,609,949 58,426,226
Equipment 1,852,086 1,528,788
Vehicles 2,104,738 1,633,522
Total capital assets, net 130,209,808 127,256,476
Overall capital assets increased $2,953,332 from fiscal year 2018 to fiscal year 2019. Increase in capital assets,
primarily buildings, equipment, and vehicles, was mostly due to the construction of the new middle school.
DEBT ADMINISTRATION
At June 30, 2019, the District had five general obligation bond issues as follows:
Due within
Total one year
2012A Series Bond 11,780,000
2012C Series Bond 9,090,000 975,000
2016A Series Bond 49,950,000 785,000
2016B Series Bond 20,775,000 1,740,000
2018 Series Bond 30,555,000 1,650,000
Total 122,150,000 5,150,000
At June 30, 2019, the District’s overall legal debt margin was $116,874,330.
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Bonneville Joint School District #93
Management’s Discussion & Analysis
Fiscal Year Ended June 30, 2019
CURRENT FINANCIAL ISSUES AND CONCERNS
Bonneville Joint School District No. 93 continues to be financially stable. In Fiscal Year 2019 there was an
increase in state funding for K-12 education, and there was also increased enrollment in the District.
For 2018-2019 the state legislature appropriated an increase of 5.1% to the public education budget. Included in
this appropriation is 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.
One concern for the District continues to be providing adequate facilities for our growing student population.
Voters approved a bond in March 2018 for the construction of a new middle school, which we anticipate will
open in the fall of 2021. Voters rejected a bond in August 2019 that would have been used to build a new
elementary school and build additions at two of our high schools. The Board is beginning the process of
boundary changes to redistribute students in growing neighborhoods to schools where enrollment is declining.
Discussions will continue with the Board to determine our path forward with regards to a bond to address district
wide growth. The district has recently compiled an updated Facilities Planning Guide that provides information
on all our facilities and possible solutions to challenges associated with our growing student enrollment. This
guide will be reviewed and updated as necessary to keep the district proactive in meeting the facility needs for our
students.
Another concern for the district is that the average attendance rate has declined from 95% to 94%. This decrease
in attendance reduced our state revenue below what was budgeted. Our building administrators and teachers are
making a conscious effort to encourage regular attendance at all grade levels, not just for funding purposes, but
also for educational purposes.
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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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, 2019, 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, 2019, and the respective changes in financial position for
the year then ended in accordance with accounting principles generally accepted in the United States.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States require that the Management’s Discussion and
Analysis, budgetary comparison information, Schedule of Changes in Total OPEB Liability and Related Ratios,
schedule of employer’s share of net OPEB asset PERSI-Sick Leave plan last 10 fiscal years, schedule of employer
8
contribution PERSI-Sick Leave Plan last 10 fiscal years, 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 1 through 7 and pages 42 through 47 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 schedules, the agency fund combining schedule 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 schedules, the agency fund combining schedule 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 schedules, the agency fund combining schedule 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 2, 2019, 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 effectiveness of Bonneville Joint
School District #93’s internal control over financial reporting or on compliance. That report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering the District’s internal
control over financial reporting and compliance.
Wipfli LLP
CPAs and Consultants
Idaho Falls, Idaho
October 2, 2019
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Bonneville Joint School District #93
Statement of Net Position
June 30, 2019
Governmental
Activities
ASSETS
Cash and investments 57,899,706
Property tax receivable, net 7,193,382
Other receivables 4,669,992
Supplies inventory 91,995
PERSI Sick Leave 2,817,300
Land and construction in progress 10,643,035
Depreciable buildings, equipment, and vehicles, net of depreciation 119,566,773
Total assets 202,882,183
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 1,985,457
Changes of assumptions and other inputs - OPEB 308,034
Changes of assumptions and other inputs - PERSI SL 925,244
Related to pensions 9,463,569
Total deferred outflows of resources 12,682,304
LIABILITIES
Accounts payable 2,259,353
Accrued wages 7,459,883
Accrued employee benefits 3,181,847
Interest payable 1,632,845
Long-term liabilities
Net pension liability 20,936,362
Portion due or payable within one year
General obligation bonds/premium 6,974,226
Other liabilities 222,497
Portion due or payable after one year
General obligation bonds/premium 131,909,885
Other post employment benefits 4,556,903
Total liabilities 179,133,801
DEFFERED INFLOWS OF RESOURCES
Differences between expected & actual experience - OPEB 278,883
Differences between expected & actual experience - PERSI SL 319,519
Related to pensions 5,353,587
Total deferred inflows of resources 5,951,989
NET POSITION
Net investment in capital assets 24,134,348
Restricted for
Capital improvements 7,021,790
Debt service 10,167,080
Child nutrition 1,068,346
Other 2,727,745
Unrestricted (14,640,612)
Total net position 30,478,697
The accompanying notes are an integral part of these statements.
10
0 0
0
Bonneville Joint School District #93
Statement of Activities
Fiscal Year Ended June 30, 2019
Net (expense)
revenue and
changes in
Program Revenues net position
Operating Capital Total
Charges for grants and grants and governmental
Functions / Programs Expenses services contributions contributions activities
Governmental activities
Instruction 58,067,752 868,635 4,956,619 (52,242,498)
Support services 17,173,968 1,781,531 4,911,128 (10,481,309)
Administrative 7,388,801 17,910 24,171 (7,346,720)
Business admin services 2,225,366 (2,225,366)
Operations 9,197,915 841,647 (8,356,268)
Transportation 4,343,281 81,363 2,544,467 (1,717,451)
Community service 144,605 6,311 (138,294)
Noninstructional 3,623,659 1,003,180 2,604,730 (15,749)
Interest on long-term debt 4,015,700 1,890,453 (2,125,247)
Capital improvements 1,881,851 896,772 (985,079)
Total governmental activities 108,062,898 3,752,619 18,676,298 0 (85,633,981)
General revenues
Taxes
Property taxes 18,108,442
Property tax replacement 248,021
Federal grants 22,474
State aid - formula grants 61,333,312
Other state revenues 580,185
Investment earnings 414,849
Other local 2,160,585
Total general revenues 82,867,868
Change in net position (2,766,113)
Net position - beginning 30,259,909
Prior period adjustment 2,984,901
Net position - beginnng (as restated) 33,244,810
Net position - ending 30,478,697
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
Bonneville Joint School District #93
Combined Balance Sheet
Governmental Funds
June 30, 2019
ASSETS
Cash and investments
Receivables
Taxes - current
Taxes - delinquent
State apportionment
Federal grants
Other
Interfund receivable
Supplies inventory
General
8,945,734
2,861,107
248,072
2,386,060
18,148
911,299
Debt
Service
7,195,794
2,707,037
249,413
14,836
Capital
Projects
6,093,439
1,017,809
109,944
Construction
2018
31,318,326
69,856
All
Nonmajor
Funds
4,346,413
2,138,133
42,959
91,995
Total
Governmental
Funds
57,899,706
6,585,953
607,429
2,386,060
2,138,133
145,799
911,299
91,995
Total assets 15,370,420 10,167,080 7,221,192 31,388,182 6,619,500 70,766,374
LIABILITIES
Accounts payable
Accrued wages
Accrued employee benefits
Interfund payable
367,012
6,590,202
2,667,471
199,402 1,164,886 528,053
869,681
514,376
911,299
2,259,353
7,459,883
3,181,847
911,299
Total liabilities 9,624,685 0 199,402 1,164,886 2,823,409 13,812,382
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 248,072 249,413 109,944 0 0 607,429
FUND BALANCES
Nonspendable
Inventory
Restricted for
Debt service
Child nutrition
Other fund activities
Assigned 5,497,663
9,917,667
6,911,846 30,223,296
91,995
976,351
2,727,745
91,995
9,917,667
976,351
39,862,887
5,497,663
Total fund balances 5,497,663 9,917,667 6,911,846 30,223,296 3,796,091 56,346,563
Total liabilities, deferred
inflows of resources,
and fund balances 15,370,420 10,167,080 7,221,192 31,388,182 6,619,500 70,766,374
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, 2019
Total fund balances - governmental funds 56,346,563
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. (14,748,654)
The net pension liability and the deferred outflows of resources and deferred inflows
of resources related to pensions are only reported in the Statement of Net Position: Net
pension liability is $20,936,362, deferred inflows of resources related to pensions is
$5,353,587 and deferred outflows of resources related to pensions is $9,463,569. (16,826,380)
The net PERSI sick leave asset and the deferred outflows of resources and deferred
inflows of resources related to PERSI sick leave are only reported in the Statement of
Net Position: Net PERSI asset is $(2,817,300), deferred inflows of resources related to
PERSI sick leave is $319,519 and deferred outflows of resources related to PERSI sick
leave is $925,244. 3,423,025
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
$209,088,150 and the accumulated depreciation is $78,878,342. 130,209,808
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. 607,429
Deferred outflows and inflows of resources related to other post employment benefits
are not current financial resources and therefore are not reported in the fund financial
statements, but are reported on the Statement of Net Position. 29,151
Long-term liabilities, including bonds payable, are not due and payable in the current
period and therefore are not reported as liabilities in the funds.
Long-term liabilities at year end consisted of:
Bonds payable (122,150,000)
Accrued interest on the bonds (1,632,845)
Compensated absences (222,497)
OPEB obligation (4,556,903)
(128,562,245)
Total net position - governmental activities 30,478,697
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
Bonneville Joint School District #93
Governmental Fund Types
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Fiscal Year Ended June 30, 2019
All Total
Debt Capital Construction Nonmajor Governmental
General Service Projects 2018 Funds Funds
REVENUES
Property taxes 7,806,208 7,353,272 2,861,787 18,021,267
Penalties and interest
on delinquent taxes 31,518 35,770 15,151 82,439
Earnings on investments 212,162 202,687 846,885 49,887 1,311,621
Food service 1,003,180 1,003,180
Rental 17,910 17,910
Other local 587,500 856,851 1,174,360 2,618,711
State apportionment
Base 54,212,619 54,212,619
Transportation 2,543,467 2,543,467
Exceptional child 75,086 75,086
Benefits 7,120,693 7,120,693
Property tax replacement 147,206 100,815 248,021
Other state revenue 4,358,417 1,890,453 7,733 2,082,530 8,339,133
Federal grants and assistance 9,697,902 9,697,902
Total revenues 77,112,786 9,582,997 3,741,522 846,885 14,007,859 105,292,049
EXPENDITURES
Current
Instruction 47,264,712 232,363 4,124,070 51,621,145
Support services 10,914,253 318,441 5,798,710 17,031,404
Administration 7,216,661 24,233 24,171 7,265,065
Business operations 1,553,480 648,979 22,907 2,225,366
Operations 7,724,964 996,063 57,943 8,778,970
Transportation 3,807,101 1,053,696 1,000 4,861,797
Community services 115,167 29,438 144,605
Noninstructional 3,648,294 3,648,294
Debt service 8,582,088 8,582,088
Facility acquisition 588,914 5,522,990 3,908,295 10,020,199
Total expenditures 78,596,338 8,582,088 3,862,689 5,522,990 17,614,828 114,178,933
Revenues over
(under expenditures) (1,483,552) 1,000,909 (121,167) (4,676,105) (3,606,969) (8,886,884)
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, 2019
OTHER FINANCING
SOURCES (USES)
Operating transfers, net
General
(384,071)
Debt
Service
Capital
Projects
356,556
Construction
2018
All Total
Nonmajor Governmental
Funds Funds
27,515 0
Total other financing
sources (uses) (384,071) 0 356,556 0 27,515 0
Revenues and other financing sources
over (under) expenditures (1,867,623) 1,000,909 235,389 (4,676,105) (3,579,454) (8,886,884)
Fund balance - July 1, 2018 7,365,286 8,916,758 6,676,457 34,899,401 7,375,545 65,233,447
Fund balance - June 30, 2019 5,497,663 9,917,667 6,911,846 30,223,296 3,796,091 56,346,563
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, 2019
Total net change in fund balances - governmental funds:
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.
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.
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 increased by $4,736 this year.
Vested employee benefits are reported in the governemental funds when amounts are paid.
The Statement of Activities reports the value of benefits earned during the year. The
changes in the OPEB obligations, PERSI SL asset, net pension liability and the related
deferred outlfows and inflows in addition to the change in compensated absences are all
differences.
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 $248,879.
Change in net position of governmental activities
(8,886,884)
4,815,268
2,953,332
4,736
(1,403,686)
(248,879)
(2,766,113)
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, 2019
Agency
Funds
ASSETS
Cash 1,393,437
Investments 20,916
Total assets 1,414,353
LIABILITIES
Due to student groups 1,414,353
Total liabilities 1,414,353
The accompanying notes are an integral part of these statements.
17
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Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
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, 2019, 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, 2019
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Debt Service Fund -The Debt Service Fund is used to account for the accumulation of resources and for the
repayment of general long-term debt principal, interest, and related costs. The primary revenue source is local
property taxes levied specifically for debt service.
Capital Projects Fund -The Capital Projects Fund is used to account for the financial resources used to
acquire school facilities, renovate existing facilities, or as otherwise provided in the Idaho Code.
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, 2019
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. General capital asset acquisitions are reported as expenditures in the
governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other
financing sources.
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 in 2019.
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, 2019
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
State statutes authorize the District to invest in obligations of the U.S. Treasury, commercial paper, corporate
bonds, and repurchase agreements. The District has elected to deposit cash in excess of immediate needs into
the Local Government Investment Pool (LGIP). The LGIP is managed by the State of Idaho Treasurer’s
office. The funds of the pool are invested in certificates of deposit, repurchase agreements, commercial paper,
corporate debt instruments and U.S. government securities. The certificates of deposit are federally insured.
The LGIP is recorded at amortized costs due to the LGIP’s tight restrictions on the types of investments that
can be held in the fund to limit the District’s exposure to losses from credit risk, market, and liquidity risk. An
annual audit of LGIP is conducted by the State Legislative Auditors Office. The Legislative Auditor of the
State of Idaho has full access to the records of the Pool. All other cash is deposited with local banks in
checking or savings accounts. 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:
Assets Years
Buildings 30
Equipment 3-15
Vehicles 3-8
21
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
12. Compensated Absences. Employees are entitled to certain compensated absences based on their length of
employment. The entire compensated absences owed are reported in the government-wide financial
statement.
13. Other Post-Employment Benefits. PERSI employees who retire and have not yet become eligible for Federal
Medicare coverage are eligible to purchase insurance through the District’s healthcare plan. Although retirees
pay their own premium, there is an implicit cost due to increased group premiums when retirees are included
in District insurance plans. For the purpose of measuring the net other post-employment benefit liability,
deferred outflows of resources and deferred inflows of resources related to other post-employment benefits,
and other post-employment benefit expenses, information about fiduciary net position of the implicit medical
benefit Plan and additions to/deductions form the Plan’s fiduciary net position have been determined on the
same basis as they are reported by the Plan. Benefit payments are recognized when due and payable in
accordance with the benefit terms.
For purposes of measuring the net OPEB asset, deferred outflows of resources, and deferred inflows of
resources related to OPEB, and OPEB expense; (expense offset), information about the fiduciary net position
of the Pubic Employee Retirement System of Idaho (PERSI or System) Sick Leave Insurance Reserve fund
and additions to/deductions from Sick Leave Insurance Reserve Fund’s fiduciary net position have been
determined on the basis as they are reported by the Sick Leave Plan. For this purpose, benefit payments are
recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
The asset and deferred outflow of resources as of June 30, 2018, are recorded as a prior period adjustment as
discussed in Note R.
14. Pensions. For purposes of measuring the net pension liability and pension expense, information about the
fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (Base Plan) and
additions to/deductions from Base Plan’s fiduciary net position have been determined on the same basis as
they are reported by the Base Plan. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
15. Deferred Outflows / Inflows of Resources. In addition to assets, the Statement of Net position will sometimes
report a separate section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and
so will not be recognized as an outflow of resources (expense/expenditure) until then. The District has four
items that qualify for reporting in this category and they occur on the government-wide Statement of Net
Position. The first item is a deferred charge on refunding that results from the difference in the carrying value
of refunded debt and its reacquisition price and is amortized over the shorter of the life of the refunded or
refunding debt. The District also reports deferred outflows of resources related to pensions for its
proportionate shares of collective deferred outflows of resources related to pensions and District contributions
to pension plans subsequent to the measurement date of the collective net pension liability. The last two
deferred outflows result from changes of assumptions or other inputs on the OPEB obligations and PERSI SL
asset.
In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time.
22
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
The District has four types of items, one of which arises under a modified accrual basis of accounting, and the
other three arise 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 and difference between expected and actual experience – OPEB and PERSI SL on the
government wide financial statements.
16. Long-term Obligations. Long-term debt is recognized as a liability of a governmental fund when due. For
other long-term obligations, only that portion expected to be financed from expendable, available, financial
resources is reported as a fund liability of a governmental fund.
17. 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.
18. 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.
19. 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.
23
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
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.
20. 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.
21. 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.
NOTE B CASH AND INVESTMENTS
At June 30, 2019, the carrying amount of district cash was $11,647,812 and the bank balance of the District’s
deposits was as follows:
Bank Balance
Insured by Federal Depository Insurance 500,000
Uninsured and uncollateralized 11,800,366
Totals 12,300,366
At June 30, 2019, the cost and fair market value of the District’s investments were as follows:
Fair Market Average
Deposit and investment type Cost Value Maturity
Local Government Investment Pool -NAV 47,368,636 47,496,531 88 Days
Total investments 47,368,636 47,496,531
Interest rate risk -The District manages its exposure to declines in fair values by limiting the weighted average
maturity of its investment portfolio.
24
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE B CASH AND INVESTMENTS, continued
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, 2019, $11,388,273 of the District’s deposits and certificates of deposit were exposed to custodial credit risk
because it was uninsured and uncollateralized. Of the investments, $47,368,636 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.
Information necessary to determine the level of collateralization for the Local Government Investment Pool was
unavailable. The Local Government Investment Pool is audited annually and the related financial statements and
note disclosures are included in the State of Idaho’s Comprehensive Annual Financial Report, a copy of which
can be downloaded from www.sco.idaho.gov.
NOTE C INTERFUND RECEIVABLES AND PAYABLES
During the course of its operations, the District had numerous transactions between funds to finance operations,
provide services, construct assets, and service debt. To the extent that certain transactions between funds had not
been paid or received as of June 30, 2019, balances of interfund amounts receivable or payable have been
recorded. The interfund balances at June 30, 2019, were as follows:
General Fund
Nonmajor Funds
Receivable
911,299
Payable
911,299
Total 911,299 911,299
The General Fund transferred $86,515 to Child Nutrition and $366,556 to Plant Facilities as required by State
law. There was a $10,000 transfer from Drivers Ed to Capital Projects to cover prior year expenses not coded
correctly. The federal programs transferred $69,000 to the General Fund as budgeted for payment of indirect
costs.
25
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE D PROPERTY TAXES
In accordance with Idaho State Law, ad valorem property tax is levied in dollars in September for each calendar
year. Taxes are recorded by the District using the modified accrual basis of accounting. Levies are made on the
second Monday of September. All of the personal property tax and one-half of the real property tax are due on or
before the 20th of December. The remaining one-half of the real property tax is due on or before June 20 the
following year. Property taxes attach as an enforceable lien on property as of January 1 the following year.
Notice of foreclosure is filed with the County Clerk on property three years from the date of delinquency. The
property tax revenue is budgeted for the ensuing fiscal year.
Bonneville and Bingham Counties act as agents for the District in both the assessment and collection areas. The
County remits tax revenues to the District periodically, with the majority of the collections being remitted in
January and July.
NOTE E CONSTRUCTION COMMITMENTS
During the year ended June 30, 2019, the District contracted with various contractors to do certain projects,
revisions, and additions. The following construction contracts were in progress at June 30, 2019:
Original bid Average Expenditures Remaining
plus percent Recorded construction
Project changes complete Currently obligation
Middle School – NBW Architect 1,625,000 91% 1,485,111 139,889
Middle School -Headwaters 26,020,358 10% 2,720,588 23,299,770
Middle School – J. Freiberg Engineering 55,285 99% 54,685 600
Middle School – McKinsey Management Services Inc. 250,000 21% 51,500 198,500
Middle School – Materials Testing & Inspection Inc 72,730 36% 25,830 46,900
Total 28,023,373 4,337,714 23,685,659
26
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE F CAPITAL ASSETS
Following is a summary of the capital assets at June 30, 2019:
Capital assets, not being depreciated
Elementary
Secondary
Construction in progress
Balance at
June 30, 2018
3,039,416
3,006,285
59,622,239
Additions
291,855
19,980
4,577,355
Deletions
(291,855)
Transfers
(59,622,240)
Balance at
June 30, 2019
3,039,416
3,026,265
4,577,354
Total capital assets, not being depreciated 65,667,940 4,889,190 (291,855) (59,622,240) 10,643,035
Capital assets, being depreciated
Buildings
Elementary
Secondary
Administration
Total buildings
71,011,386
46,355,066
4,682,973
122,049,425
597,919
2,341,657
2,939,576 0
543,897
59,078,343
59,622,240
72,153,202
107,775,066
4,682,973
184,611,241
Equipment
Elementary
Secondary
Administration
Total equipment
964,937
1,553,817
1,961,679
4,480,433
39,724
268,713
425,383
733,820
(64,549)
(64,549) 0
1,004,661
1,822,530
2,322,513
5,149,704
Vehicles 7,794,328 889,842 0 0 8,684,170
Total capital assets, being depreciated 134,324,186 4,563,238 (64,549) 59,622,240 198,445,115
Less accumulated depreciation for:
Buildings
Equipment
Vehicles
(63,623,199)
(2,951,645)
(6,160,806)
(5,378,093)
(410,522)
(418,626)
64,549
(69,001,292)
(3,297,618)
(6,579,432)
Total accumulated depreciation (72,735,650) (6,207,241) 64,549 0 (78,878,342)
Total capital assets being depreciated, net 61,588,536 (1,644,003) 0 59,622,240 119,566,773
Governmental activities capital assets, net 127,256,476 3,245,187 (291,855) 0 130,209,808
Depreciation expense was charged to the functions of the primary government as follows:
Governmental activities
Instruction 5,417,309
Operations 371,306
Transportation 418,626
Total depreciation expense – governmental activities 6,207,241
27
June 30,
30,5530,555,
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE G 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 was paid off in March of 2019.
NOTE H GENERAL OBLIGATION BOND ISSUES
The District had five general obligation bond issues (2012A, 2012C, 2016A, 2016B and 2018 Series) outstanding
at the end of the year with interest rates ranging from 2.0 to 5.0 percent. The 2009 Series bonds matured in
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. The 2018 bonds are scheduled to mature September 2035.
Future debt service requirements are as follows:
Fiscal Year Ended Total Interest Principal
2020 10,666,201 5,516,201 5,150,000
2021 9,019,300 5,374,300 3,645,000
2022 9,111,324 5,251,324 3,860,000
2023 9,171,624 5,091,624 4,080,000
2024 9,772,624 4,872,624 4,900,000
2025-2029 58,453,739 19,613,739 38,840,000
2030-2034 62,086,450 8,496,450 53,590,000
2035-2038 8,494,125 409,125 8,085,000
Total 176,775,387 54,625,387 122,150,000
Changes to bond principal payable and future interest payable are summarized as follows:
2009 2012A 2012C 2016A 2016B 2018 Combined
Principal Series Series Series Series Series Series Total
Balances at July 1, 2018 1,470,000 11,780,000 10,260,000 50,540,000 20,775,000 30,555,000 125,380,000
Reductions 1,470,000 1,170,000 590,000 3,230,000
Balances at June 30, 2019 0 11,780,000 9,090,000 49,950,000 20,775,000 30,555,000 122,150,000
Interest
Balances at July 1, 2018 26,225 7,068,250 2,272,425 25,365,475 5,835,650 19,410,365 59,978,390
Reductions 26,225 587,600 436,350 2,266,400 882,000 1,154,428 5,353,003
Balances at June 30, 2019 0 6,480,650 1,836,075 23,099,075 4,953,650 18,255,937 54,625,387
NOTE I 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, 2019, the limit for the District was 5% of $4,582,430,000 or
$229,121,500. The Debt Service Fund had $9,902,830 available and the general obligation debt was $122,150,000
leaving a legal debt margin of $116,874,330.
28
Month
June 30,
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE J CHANGES IN LONG-TERM LIABILITIES
Following is a summary of the changes in long-term debt for the year ended June 30, 2019:
Current
Balance Balance Portion
July 1, 2018 Additions Deductions June 30,2019 Balance
Bonds payable 125,380,000 3,230,000 122,150,000 5,150,000
Premium on bonds 18,539,983 1,805,872 16,734,111 1,824,226
Total bonds/premium 143,919,983 5,035,872 138,884,111 6,974,226
GASB 75 3,956,817 600,086 4,556,903
Employee benefits 196,096 26,401 222,497 222,497
Total 148,072,896 626,487 5,035,872 143,663,511 7,196,723
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 K LEASE OBLIGATIONS
The District was obligated for the following leases, which are categorized as operating leases subject to non-
appropriation:
Description of Date of Term of Future Monthly Minimum
Lessor Leased Property Inception Lease Lease Amount Lease Payments
Valley Office Copier 12/20 48 99 1,683
Valley Office Copiers 3/15 60 389 17,116
Valley Office Copiers 5/25 5 years 8,634/yr 34,536
Valley Office Copiers 7/26 5 years 9,849/yr 40,217
Valley Office Copiers 8/1 60 960.40 47,060
Valley Office Copier 2/27 60 165 9,075
Valley Office Copier 2/27 60 68.77 3,782
Valley Office Copier 5/7 60 99 5,742
Valley Office Copier 5/7 60 119 6,902
Total minimum lease payments 166,113
Total rental expense under the equipment and other operating leases for the year ended June 30, 2019, was
$52,764. Minimum future lease payments under these operating leases as of June 30, 2019, for the succeeding
years are:
Fiscal Year Ended Total
2020 41,285
2021 40,592
2022 40,097
2023 38,541
2024 5,598
Total 166,113
29
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE L NON-MONETARY TRANSACTIONS
The District received $333,975 USDA Commodities during the 2018-2019 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 M PAYROLL EXPENDITURES AND RELATED LIABILITIES
Teacher contracts were signed for the period September 2018 through June 2019, to be paid over the twelve
months of September 2018 through August 2019. The financial statements reflect the salary expense for this
period. The accrued payroll reflects the final two months of these contracts.
NOTE N OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Plan Description. Bonneville Joint School District #93’s Employee Group Benefits Plan is a single-employer
defined benefit healthcare plan administered by Blue Cross of Idaho. Blue Cross provides medical and
prescription drug insurance benefits to eligible retirees and their eligible dependents. Blue Cross Dental and
Willamette Dental provide dental insurance benefits to eligible retirees and their eligible dependents. As of June
30, 2018, there were 1,041 active participants and 38 inactive participants.
A retiree who retires with the Public Employee Retirement System of Idaho (PERSI) is eligible to keep the
District’s health insurance as a retiree until age 65, or until the retiree is eligible for coverage under Medicare.
Retirement eligibility is determined based on a minimum of reaching age 55 with at least 5 years of membership
with a PERSI employer. The retiree is on the same medical plan as the District’s active employees.
Funding Policy. The contribution requirement of plan members is established by the District’s insurance
committee in conjunction with our insurance provider. The required contribution is based on projected pay-as-
you-go financing requirements. For fiscal year 2019, the District contributed approximately $197,261 of the
annual required contribution of $749,273. Retirees are required to pay 100% of the premiums for both the retiree
and the dependent coverage.
Net Other Post-employment benefit Liability. The Net other post-employment benefit liability (NOL) was
measured as of June 30, 2019, and the total other post-employment benefit liability was determined by an
actuarial valuation as of June 30, 2018.
Actuarial Methods and Assumptions. The District does not pre-fund benefits. The current funding policy is to pay
benefits directly from general assets on a pay-as-you-basis and there is not a trust for accumulating plan assets.
The following actuarial methods and assumptions were used in the June 30, 2019 accounting valuation:
Valuation Timing Actuarial valuations are performed biennially as of July 1 for accounting
purposes only. The most recent valuation was performed as of June 30, 2018,
with results rolled forward to June 30, 2019.
Actuarial Cost Method Entry Age Normal
Inflation 3.50%
Salary Increases 3.75% general wage growth plus increases due to promotions and longevity
according to the July 1, 2016, PERSI valuation report.
30
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE N OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Discount Rate 3.5%
Health Cost Trend Rates Medical with vision trend is 6.5% from year ending June 30, 2020 then
gradually decreasing to an ultimate rate of 3.8% for 2075 and beyond.
Dental trend is 3.0% from year ending June 30, 2020 then gradually lowering
to 2.0% for 2022 and beyond, as shown in the June 30, 2019 valuation
report.
Retirement Based on PERSI with 19% of Males and 10% of Females eligible at age 55,
30% of Males and 26% of Females first year eligible at age 60 and 36% of
Males and 49% of Females eligible at age 65.
Turnover 45% of future retirees are assumed to elect medical coverage, 45.3% of
future retirees are assumed to elect dental coverage and 70% of the future
retirees who elect medical or dental coverage and are married are assumed to
elect spousal coverage as well.
Mortality RP-2000 Mortality for Employees, Healthy Annuitants, and Disabled
Annuitants with generational projection per Scale AA with adjustments, set
back three years for both males and females.
Retiree Premiums The retiree contributions are a weighted average of all retiree contributions
for the period July 1, 2018, to June 30, 2019. The cost of Medical and
Prescription was $8,489 for a retiree or surviving spouse, and $5,557 for a
surviving spouse. For Dental it was $482 for a retiree or surviving spouse,
and $481 for a spouse. For Vision it was $97 for a retiree or surviving
spouse, and $44 for a spouse.
Total OPEB Liability
Total OPEB liability
Covered employee payroll
June 30, 2019
4,556,903
45,056,550
Total OPEB liability as a % of covered employee payroll 10.11%
The total OPEB liability was determined by an actuarial valuation as of the valuation date, calculated based on the
discount rate and actuarial assumptions below, and was then projected forward to the measurement date. There
have been no significant changes between the valuation date and the fiscal year end. Any significant changes
during this period must be reflected as prescribed by GASB 75.
Discount Rate
Discount Rate 3.50%
20 Year Tax-Exempt Municipal Bond index 3.50%
The discount rate was based on the 20-year Municipal Bond Index on 6/30/2019.
Changes since Prior Valuation
The interest rates based on the 6/30/2019 20-year municipal bond index per GASB 75 requirements.
31
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE N OTHER POST-EMPLOYMENT BENEFITS (OPEB), continued
Changes in Total OPEB Liability
Increase (Decrease)
Changes in total OPEB liability Total OPEB Liability
Balance as of June 30, 2018 3,956,817
Changes for the year:
Service cost 512,500
Interest on total OPEB liability 147,380
Effect of assumptions, changes, or inputs 137,467
Expected benefit payments (197,261)
Balance as of June 30, 2019 4,556,903
Sensitivity Analysis
The following presents the total OPEB liability of the school district, calculated using the discount rate of 3.50%,
as well as what the school district’s total OPEB liability would be if it were calculated using a discount rate that is
1 percentage point lower (2.50%) or 1 percentage point higher (4.50%) than the current rate.
1% Decrease Discount Rate 1% Increase
2.50% 3.50% 4.50%
Total June 30, 2019, OPEB liability 4,882,051 4,556,903 4,252,287
The following presents the total OPEB liability of the school district, calculated using the current healthcare cost
trend rates as well as what the school district’s total OPEB liability would be if it were calculated using trend rates
that are 1 percentage point lower or 1 percentage point higher than the current trend rates.
Current
1% Decrease Trend Rate 1% Increase
Total June 30, 2019, OPEB liability 4,038,950 4,556,903 5,166,457
July 1, 2018
to
OPEB Expense June 30, 2019
Service cost 512,500
Interest on total OPEB liability 147,380
Recognition of Deferred Inflows/Outflows of Resources
Difference between expected and actual experience (19,421)
Recognition of assumption changes or inputs 11,879
Benefit payments (246,776)
OPEB expense 405,562
32
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE N OTHER POSTEMPLOYMENT BENEFITS (OPEB), continued
Other Post-Employment Benefits Expense and Deferred Outflows of Resources and Deferred Inflows for
Resources Related to Other Post-employment Benefits
Schedule of Deferred Inflow/Outflows of Resources
Original
Amount
Date
Established
Original
Recognition
Period
Amount
Recognized
Deferred
Inflow of
Resources
Deferred
Outflow of
Resources
Differences between expected and actual
experience/changes in assumptions (115,858) June 30, 2018 15.36 (7,542) (278,883) 170,567
Changes of assumptions or other inputs 137,467 June 30, 2019 14.53 0 137,467
Total 21,609 (7,542) (278,883) 308,034
Amounts currently reported as deferred outflows of resources and deferred inflows of resources related to other
post-employment benefits will be recognized in OPEB expense as follows:
Year Ending June 30:
2020 1,918
2021 1,918
2022 1,918
2023 1,918
2024 1,918
Thereafter 19,561
*Note that additional future deferred inflows and outflows of resources may impact these numbers.
NOTE O PERSI SICK LEAVE INSURANCE RESERVE FUND
The District contributes to the Sick Leave Insurance Reserve Fund (Sick Leave Plan) which is a cost-sharing
multiple-employer defined benefit OPEB plan that covers members receiving retirement benefits that are
administered by PERSI that covers substantially all employees of the State of Idaho, its agencies and various
participating political subdivisions. The cost to administer the plan is financed through the contributions and
investment earnings of the plan. PERSI issues a publicly available financial report that includes financial
statements and the required supplementary information for the Sick Leave Plan. That report may be obtained on
the PERSI website at www.persi.idaho.gov.
Responsibility for administration of the Sick Leave Plan is assigned to the Board comprised of five members
appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board
be active Base Plan members with at least ten years of service and three members who are Idaho citizens not
members of the Base Plan except by reason of having served on the Board.
OPEB Benefits
Group retiree health, dental, accident, and life insurance premiums may qualify as a benefit. Retirees who have a
sick leave account can use their balance as a credit towards these premiums paid directly to the applicable
insurance company.
33
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE O PERSI SICK LEAVE INSURANCE RESERVE FUND, continued
Employer Contributions
The contribution rate for employers are set by statute at .065% of covered compensation for state members.
Covered school members contribution rates are set by statute based on the number of sick days offered by the
employer. The contribution rate of 1.16% for school members with nine or ten sick days, 1.26% for school
members with 11-14 sick days. If a school member has more than 14 days of sick leave, then the contribution rate
will be set by the PERSI Retirement Board based on current cost and actuarial data and reviewed annually. The
District contributions were $592,204 for the year ended June 30, 2019.
OPEB Liabilities, OPEB Expense (Expense Offset), and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB
At June 30, 2019, the District reported an asset for its proportionate share of the net OPEB asset. The net OPEB
asset was measured as of June 30, 2018, and the total OPEB liability used to calculate the net OPEB asset was
determined by an actuarial valuation as of that date. The District’s proportion of the net OPEB asset was based on
the District’s share of contributions relative to the total contributions of all participating Sick Leave employers. At
June 30, 2018, the District’s proportion was 3.3965902 percent.
For the year ended June 30, 2019, the District recognized OPEB expense offset of $438,124. The $592,204
reported as deferred outflows of resources related to OPEBs resulting from Employer contributions subsequent to
the measurement date will be recognized as an increase of the net OPEB asset in the year ending June 30, 2020.
At June 30, 2019, the District reported deferred outflows of resources and deferred inflows of resources related to
PERSI OPEB sick leave from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
Changes in assumptions or other inputs
Net difference between projected and actual earnings on OPEB 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
Total
318,763
14,277
592,204
925,244
167,352
152,167
319,519
Actuarial Assumptions
Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. The Sick Leave Plan
amortizes any net OPEB asset based on a level percentage of payroll. The maximum amortization period for the
Sick Leave Plan permitted under Section 59-1322, Idaho Code, is 25 years. The total OPEB liability in the June
30, 2018 actuarial valuation was determined using the following actuarial assumptions, applied to all periods
included in the measurement:
Inflation 3.20%
Salary increases 3.75%
Salary inflation 3.75%
Investment rate of return 7.05%
34
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE O PERSI SICK LEAVE INSURANCE RESERVE FUND, continued
The long-term expected rate of return on OPEB plan investments was determined using the building block
approach and a forward-looking model in which best estimate ranges of expected future real rates of return
(expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighing the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation. The health care trend
rate is not applicable as the benefit amount a participant will receive is established with a set amount upon
retirement thus would have no impact.
Even though history provides a valuable perspective for setting the investment return assumption, the System
relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System
uses consultants, investment managers and trustees to develop capital market assumptions in analyzing 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.
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 2.25%
Assumed Inflation – Standard Deviation 1.50%
Portfolio Arithmetic Mean Return 6.75%
Portfolio Long-Term Expected Geometric Rate of Return 6.13%
Assumed Investment Expenses 0.40%
Long-Term Expected Geometric Rate of Return,
Net of Investment Expenses 5.73%
35
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE O PERSI SICK LEAVE INSURANCE RESERVE FUND, continued
Discount Rate
The discount rate used to measure the total OPEB liability was 7.05%. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members will be made at the current
contribution rate. Based on these assumptions, the OPEB plan’s net position was projected to be available to make
all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on
OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB
liability. The long-term expected rate of return was determined net of OPEB plan investment expense but without
reduction for OPEB plan administrative expense.
Sensitivity of the net OPEB asset to changes in the discount rate.
The following presents the Employer's proportionate share of the net OPEB asset calculated using the discount
rate of 7.05 percent, as well as what the Employer's proportionate share of the net OPEB asset would be if it were
calculated using a discount rate that is 1-percentage-point lower (6.05 percent) or 1-percentage-point higher (8.05
percent) than the current rate:
Employer’s proportionate share of the net OPEB liability (asset)
1%
Decrease
(6.05%)
(2,487,586)
Current
Discount
Rate
(7.05%)
(2,817,300)
1%
Increase
(8.05%)
(3,126,950)
OPEB plan fiduciary net position
Detailed information about the OPEB plan's fiduciary net position is available in the separately issued PERSI
financial report. PERSI issues a publicly available financial report that includes financial statements and the
required supplementary information for PERSI. That report may be obtained on the PERSI website at
www.persi.idaho.gov.
Payables to the OPEB plan
At June 30, 2019, the District reported no payables to the defined benefit OPEB plan for legally required
employer contributions and for legally required employee contributions which had been withheld from employee
wages but not yet remitted to PERSI.
NOTE P 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 2018-2019 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.
36
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE Q PENSION PLAN
Plan Description
The District contributes to the Base Plan which is a cost sharing multiple-employer defined benefit pension plan
administered by Public Employee Retirement System of Idaho (PERSI or System) that covers substantially all
employees of the State of Idaho, its agencies, and various participating political subdivisions. The cost to
administer the plan is financed through the contributions and investment earnings of the plan. PERSI issues a
publicly available financial report that includes financial statements and the required supplementary information
for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov.
Responsibility for administration of the Base Plan is assigned to the Board comprised of five members appointed
by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active
Base Plan members with at least ten years of service and three members who are Idaho citizens not members of
the Base Plan except by reason of having served on the Board.
Pension Benefits
The Base Plan provides retirement, disability, death, and survivor benefits for eligible members or beneficiaries.
Benefits are based on members’ years of service, age, and highest average salary. Members become fully vested
in their retirement benefits with five years of credited service (5 months for elected or appointed officials).
Members are eligible for retirement benefits upon attainment of the ages specified for their employment
classification. The annual service retirement allowance for each month of credited service is 2.0% (2.3% for
police/firefighters) of the average monthly salary for the highest consecutive 42 months.
The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature.
The Base Plan is required to provide a 1% minimum cost of living increase per year provided the Consumer Price
Index increases 1% or more. The PERSI Board has the authority to provide higher cost of living increases to a
maximum of the Consumer Price Index movement or 6%, whichever is less; however, any amount above the 1%
minimum is subject to review by the Idaho Legislature.
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, 2018, 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 $5,803,027 for the year ended June 30, 2019.
Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At June 30, 2019, the District reported a liability for its proportionate share of the net pension liability. The net
pension liability was measured as of June 30, 2018, 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, 2018, the District’s proportion was
1.4193976 percent.
37
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE Q PENSION PLAN, continued
For the year ended June 30, 2019, the District recognized pension expense of $7,153,247. At June 30, 2019, 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 2,298,218 1,581,202
Changes in assumptions or other inputs 1,362,324
Net difference between projected and actual earnings on pension plan investments 2,326,148
Changes in the employer’s proportion and differences between the employer’s
contribution and the employer’s proportionate contributions 1,446,237
District contributions subsequent to the measurement date 5,803,027
Total 9,463,569 5,353,587
$5,803,027 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, 2019.
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, 2017, the beginning of the measurement period
ended June 30, 2018, is 4.9 years and 4.9 years for the measurement period ended June 30, 2018.
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:
2019 1,290,404
2020 (173,273)
2021 (2,067,447)
2022 (742,728)
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, 2018, actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Inflation 3.00%
Salary increases 1.00 – 3.75%
Salary inflation 3.75%
Investment rate of return 7.05%, net investment expenses
Cost-of-living adjustments 1.00%
38
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE Q PENSION PLAN, continued
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, 2018, is based on the results of an actuarial valuation date of July 1, 2018.
The long-term expected rate of return on pension plan investments was determined using the building block
approach and a forward-looking model in which best estimate rates or expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighing the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation.
Even though history provides a valuable perspective for setting the investment return assumption, the System
relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System
uses consultants, investment managers and trustees to develop capital market assumptions in analyzing the
System’s asset allocation. The assumptions and the System’s formal policy for asset allocation are shown below.
The formal asset allocation policy is somewhat more conservative than the current allocation of System’s assets.
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, 2018.
Capital Market Assumptions
Asset Class
Expected
Return
Expected
Risk
Strategic
Normal
Strategic
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%
Total Fund
Expected
Return
Expected
Inflation
Expected
Real
Return
Expected
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.
39
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE Q PENSION PLAN, continued
Actuarial Assumptions:
Assumed Inflation – Mean 2.25%
Assumed Inflation – Standard Deviation 1.50%
Portfolio Arithmetic Mean Return 6.75%
Portfolio Long-Term Expected Geometric Rate of Return 6.13%
Assumed Investment Expenses 0.40%
Long-Term Expected Geometric Rate of Return,
Net of Investment Expenses 7.05%
Discount Rate
The discount rate used to measure the total pension liability was 7.05%. 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 7.05 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 (6.05 percent) or 1-percentage-point
higher (8.05 percent) than the current rate:
Current
1% Discount 1%
Decrease Rate Increase
(6.05%) (7.05%) (8.05%)
Employer’s proportionate share of the net pension liability (asset) 52,408,452 20,936,362 (5,123,818)
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, 2019, 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.
40
Bonneville Joint School District #93
Notes to Financial Statements
June 30, 2019
NOTE R PRIOR PERIOD ADJUSTMENT
As a result of the addition of the asset for the PERSI sick leave account of $2,455,155 and the deferred inflows
related to the contributions of $529,746, the governmental activities beginning net position was restated to
increase by $2,984,901. The restated beginning net position at July 1, 2018, after this adjustment is $33,244,810.
NOTE S COMMITMENTS AND CONTINGENCIES
The District is involved in claims arising from the ordinary course of operations. Among these matters, a suit has
been filed against Pocatello and Bonneville school districts, namely Zeyen v. ALL DISTRICTS AND CHARTER
SCHOOLS. The plaintiff asserts that fees charged by all public schools throughout the state of Idaho are
unconstitutional. The U.S District Court has not yet certified this matter as a class action and discovery has not yet
commenced. 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 T SUBSEQUENT EVENTS
Management of the District evaluated subsequent events through October 2, 2019, 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.
41
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, 2019
Original Favorable
& Final (Unfavorable)
REVENUES Budget Actual Variance
Property taxes 7,847,666 7,806,208 (41,458)
Penalties and interest on delinquent taxes 25,000 31,518 6,518
Earnings on investments 80,000 212,162 132,162
Tuition 12,000 73,862 61,862
Rental 15,000 17,910 2,910
Other local 831,477 513,638 (317,839)
State apportionment
Base 54,786,360 54,212,619 (573,741)
Transportation 2,406,000 2,543,467 137,467
Exceptional child 63,000 75,086 12,086
Benefits 7,198,878 7,120,693 (78,185)
Property tax replacement 248,117 147,206 (100,911)
Other state revenue 3,959,147 4,358,417 399,270
Total revenues 77,472,645 77,112,786 (359,859)
EXPENDITURES
Instruction
Elementary 21,348,124 20,020,912 1,327,212
Secondary 19,173,015 19,825,157 (652,142)
Alternative school 739,460 701,657 37,803
Special education program 3,983,101 4,647,595 (664,494)
Special education preschool program 247,007 445,104 (198,097)
Gifted and talented 307,206 276,046 31,160
Interscholastic program 1,008,348 1,109,635 (101,287)
School activity 269,218 238,606 30,612
Total instruction 47,075,479 47,264,712 (189,233)
Support services
Attendance, guidance, and health 2,424,960 2,529,451 (104,491)
Special education support services 3,313,577 3,836,708 (523,131)
Instructional improvement 1,413,261 1,961,197 (547,936)
Educational media 593,309 811,793 (218,484)
Instruction related technology 1,868,334 1,775,104 93,230
Total support services 9,613,441 10,914,253 (1,300,812)
See Independent Auditor's Report.
42
Bonneville Joint School District #93
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
-Budget to Actual-
Fiscal Year Ended June 30, 2019
Original Favorable
& Final (Unfavorable)
EXPENDITURES, continued Budget Actual Variance
Administration
Board of Education 134,278 373,713 (239,435)
District administration 2,049,200 977,724 1,071,476
School administration 5,686,381 5,865,224 (178,843)
Total administration 7,869,859 7,216,661 653,198
Business Administrative Services
Business operations 740,680 1,383,843 (643,163)
Central services 210,827 161,453 49,374
Administrative Technology Services 45,000 8,184 36,816
Total business administrative services 996,507 1,553,480 (556,973)
Operations
Building care (custodial) 6,090,025 4,814,473 1,275,552
Maintenance 1,843,840 2,498,469 (654,629)
Security 417,031 412,022 5,009
Total operations 8,350,896 7,724,964 625,932
Transportation 3,650,050 3,807,101 (157,051)
Community service 125,292 115,167 10,125
Total expenditures 77,681,524 78,596,338 (914,814)
Revenues over (under) expenditures (208,879) (1,483,552) (1,274,673)
OTHER FINANCING SOURCES (USES)
Operating transfers, net (327,000) (384,071) (57,071)
Contingency - budget only (4,723,195) 4,723,195
Revenues and other financing sources
over (under) expenditures (5,259,074) (1,867,623) 3,391,451
Fund balance - July 1, 2018 7,365,286
Fund balance - June 30, 2019 5,497,663
See Independent Auditor's Report.
43
Bonneville Joint School District #93
Required Supplementary Information
Fiscal Year Ended June 30, 2019
Schedule of Changes in Total OPEB Liability and Related Ratios
As of the measurement date of June 30, 2018
2019 2018
Total OPEB Liability
Service cost 512,500 456,245
Interest on total OPEB liabilty 147,380 149,723
Differences in experience -(298,301)
Effect of assumption changes or inputs 137,467 182,443
Expected benefit payments (197,261) (176,160)
Net change in total OPEB liability 600,086 313,950
Total OPEB liability, beginning 3,956,817 3,642,867
Total OPEB liability, ending 4,556,903 3,956,817
Covered valuation payroll 45,056,550 43,428,000
Total OPEB liability as a % of covered valuation payroll 10.11% 9.11%
* GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full
10-year trend is compiled, the District will present information for those years for which information is
available.
See Independent Auditor's Report.
44
Bonneville Joint School District #93
Required Supplementary Information
Fiscal Year Ended June 30, 2019
Schedule of Employer's Share of Net OPEB Asset
PERSI-Sick Leave Plan
Last 10 - Fiscal Years*
2019 2018
Employer's portion of net OPEB asset 3.3965902% 3.1983609%
Employer proportionate share of the net OPEB asset 2,817,300 2,455,155
Employer's covered-employee payroll 45,756,462 40,809,784
Employer's proportional share of the net OPEB asset as
percentage of its covered-employee payroll 6.157% 6.016%
Plan fiduciary net position as a percentage of the total OPEB asset 135.69% 136.78%
* GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10-year trend
is compiled, the District will present information for those years for which information is available.
Data reported is measured as of June 30, 2018.
Schedule of Employer Contribution
PERSI-Sick Leave Plan
Last 10-Fiscal Years *
2019 2018
Statutorily required contribution 594,657 530,775
Contributions in relation to the statutorily required contribution 592,204 529,753
Contribution (deficiency) excess (2,453) (1,022)
Employer's covered payroll 51,263,509 45,756,462
Contributions as a percentage of covered payroll 1.160% 1.160%
* GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10-year trend
is compiled, the District will present information for those years for which information is available.
Data reported is measured as of June 30, 2019.
See Independent Auditor's Report.
45
Bonneville Joint School District #93
Required Supplementary Information
Fiscal Year Ended June 30, 2019
Schedule of Employer's Share of Net Pension Liability
PERSI-Base Plan Last 10-Fiscal Years *
2019 2018 2017 2016 2015
Employer's portion of net pension liability 1.31157080% 1.31157080% 1.30930460% 1.313797300% 1.289265200%
Employers proportionate share of the net pension liability 20,936,362 20,615,640 26,541,615 17,300,573 9,491,010
Employer's covered payroll 45,756,462 40,809,784 38,322,048 36,799,863 34,937,428
Employer's proportional share of the net pension
liability as a percentage of its covered payroll 45.76% 50.52% 69.26% 47.01% 27.17%
Plan fiduciary net position as a percentage of the total
pension liability 91.69% 90.68% 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 available.
Data reported is measured as of June 30, 2018 (measurement date).
Schedule of Employer Contributions
PERSI-Base Plan Last 10-Fiscal Years *
2019 2018 2017 2016 2015
Statutorily required contribution 5,803,029 5,179,631 4,619,668 4,338,056 4,165,744
Contributions in relation to the statutorily
required contribution 5,803,027 5,179,635 4,619,665 4,338,975 4,165,658
Contribution (deficiency) excess (2) 4 (3) 919 (86)
Employer's covered payroll 51,263,509 45,756,462 40,809,784 38,322,048 36,799,863
Contributions as a percentage of covered-payroll 11.3200% 11.3200% 11.3200% 11.3224% 11.3198%
* GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the District will
present information for those years for which information is available.
Data reported is measured as of June 30, 2019 (reporting date).
See Independent Auditor's Report.
46
Bonneville Joint School District #93
Notes to Required Supplementary Information
Fiscal Year Ended June 30, 2019
NOTE A BUDGET ADOPTION
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated
budgets are adopted for the General Fund. All annual appropriations lapse at year end.
See Independent Auditor's Report.
47
This page intentionally left blank.
OTHER FINANCIAL INFORMATION
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 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, 2019
Public Idaho Improving Perkins III Supporting All
Child Federal Community Special Driver's Professional School Substance Basic Migrant IDEA IDEA Professional Effective Construction Nonmajor
Nutrition Forest Resource E-rate Projects Ed Technical Technology Abuse Programs Education School-Age Preschool Medicaid Title IV Technical Title III Instruction 2016 Funds
ASSETS
Cash and investments 1,245,779 88,848 355,128 381,614 33,957 634,724 776,082 230,248 600,033 4,346,413
Federal grants receivable 59,787 489,744 14,637 398,003 15,255 975,149 10,775 174,783 2,138,133
Other receivables 42,163 796 42,959
Supplies inventory 91,995 91,995
Total assets 1,397,561 131,011 0 355,128 381,614 33,957 634,724 776,082 230,248 489,744 14,637 398,003 15,255 975,149 0 0 10,775 174,783 600,829 6,619,500
LIABILITIES AND
FUND EQUITY
LIABILITIES
Accounts payable 95,935 5,000 56,835 785 19,228 322,562 743 9,442 1,320 0 11,808 3,464 931 528,053
Accrued wages 140,577 341 7,707 169,902 4,103 147,845 5,047 391,704 2,455 869,681
Accrued employee benefits 92,703 67 1,649 60,244 2,385 107,882 4,084 243,339 2,023 514,376
Interfund payable 250,156 6,829 142,276 6,124 328,298 6,297 171,319 911,299
Total liabilities 329,215 5,000 0 56,835 785 408 28,584 322,562 743 489,744 14,637 398,003 15,255 975,149 0 0 10,775 174,783 931 2,823,409
FUND EQUITY
Nonspendable
Restricted
91,995
976,351 126,011 298,293 380,829 33,549 606,140 453,520 229,505 599,898
91,995
3,704,096
Total fund equity 1,068,346 126,011 0 298,293 380,829 33,549 606,140 453,520 229,505 0 0 0 0 0 0 0 0 0 599,898 3,796,091
Total liabilities
and fund equity 1,397,561 131,011 0 355,128 381,614 33,957 634,724 776,082 230,248 489,744 14,637 398,003 15,255 975,149 0 0 10,775 174,783 600,829 6,619,500
See Independent Auditor's Report.
48
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
0
0
0 0
0
0
0
0 0 0 0 0 0 0 0 0
Bonneville Joint School District #93
All Nonmajor Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance
Fiscal Year Ended June 30, 2019
REVENUES
Earnings on investments
Food service
Other local
Other state revenue
Federal grants and assistance
Child
Nutrition
160
1,003,180
3,148
2,636,621
Federal
Forest
44,950
Community
Resource E-rate
212,565
Special
Projects
133,109
41,084
Driver's
Ed
7,600
7,000
Professional
Technical
509,360
Public
School
Technology
1,410,490
Idaho
Substance
Abuse
155,680
Improving
Basic
Programs
1,629,110
Migrant
Education
48,588
IDEA
School-Age
1,969,789
IDEA
Preschool
66,245
Medicaid
817,938
2,650,166
Title IV
144,864
Perkins III
Professional
Technical
119,472
Title III
73,573
Supporting
Effective
Instruction
273,440
Construction
2016
49,727
All
Nonmajor
Funds
49,887
1,003,180
1,174,360
2,082,530
9,697,902
Total revenues 3,643,109 44,950 0 212,565 174,193 14,600 509,360 1,410,490 155,680 1,629,110 48,588 1,969,789 66,245 3,468,104 144,864 119,472 73,573 273,440 49,727 14,007,859
EXPENDITURES
Instruction
Elementary
Secondary
Alternative school
Special education program
Special ed preschool program
Gifted and talented
School activity
Summer school
Vocational
Support services
Attendance, guidance, and health
Special ed support services
Instructional improvement
Educational media
Instructional related technology
School administration
Business Administrative Services
Operations
Transportation
Community services
Noninstructional services
Facility acquisition
3,629,591
22,476
32,948
209,141
34,946
15,021
66
47
484
49,900
20,771
770
4,143
1,000
(9,821)
18,703
21,146
299,949
7,473
(3,600)
11,950
125,491
1,360,086
22,907
23
44
50
11,843
53,800
1,171,068
34,152
315
26,949
13,924
326,549
9,621
12,221
6,311
2,864
7,373
35,504
2,847
1,218,726
751,063
66,245
804,548
64,087
2,599,469
144,864
119,472
9,592
60,047
3,934 273,440
3,908,295
1,363,357
130,410
365
2,023,274
130,332
66
22,476
34,369
419,421
49,428
3,351,016
801,477
20,771
1,576,018
24,171
22,907
57,943
1,000
29,438
3,648,294
3,908,295
Total expenditures 3,629,591 22,476 32,948 209,141 136,030 21,146 315,772 1,508,484 65,760 1,601,110 48,588 1,969,789 66,245 3,468,104 144,864 119,472 73,573 273,440 3,908,295 17,614,828
Revenues over (under) expenditures 13,518 22,474 (32,948) 3,424 38,163 (6,546) 193,588 (97,994) 89,920 28,000 0 0 0 0 0 0 0 0 (3,858,568) (3,606,969)
OTHER FINANCING
SOURCES (USES)
Net transfers 45,515 10,000 (28,000) 27,515
Total other financing sources 45,515 0 0 0 0 10,000 0 0 0 (28,000) 0 0 0 0 0 0 0 0 0 27,515
Revenues and other financing sources over (under) expenditures and
other financing sources (uses) 59,033 22,474 (32,948) 3,424 38,163 3,454 193,588 (97,994) 89,920 (3,858,568) (3,579,454)
Fund balance - July 1, 2018 1,009,313 103,537 32,948 294,869 342,666 30,095 412,552 551,514 139,585 0 0 0 0 0 0 0 0 0 4,458,466 7,375,545
Fund balance - June 30, 2019 1,068,346 126,011 0 298,293 380,829 33,549 606,140 453,520 229,505 0 0 0 0 0 0 0 0 0 599,898 3,796,091
See Independent Auditor's Report.
49
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Bonneville Joint School District #93
All Agency Funds
Combining Schedule of Changes in Assets and Liabilities
Fiscal Year Ended June 30, 2019
Balance Balance
ASSETS June 30, 2018 Receipts Disbursements June 30, 2019
Cash
Bonneville High School 77,447 821,548 599,960 299,035
Hillcrest High School 185,361 800,702 632,388 353,675
Thunder Ridge High School 30,341 725,428 568,482 187,287
Rocky Mountain Middle School 42,076 153,159 166,111 29,124
Sandcreek Middle School 195,796 158,786 140,331 214,251
Lincoln High School 32,085 7,949 9,808 30,226
Ammon Elementary School 12,298 12,536 9,000 15,834
Bridgewater Elementary 15,657 8,064 7,270 16,451
Cloverdale Elementary School 6,618 27,174 28,295 5,497
Discovery Elementary 19,776 37,421 25,865 31,332
Fairview Elementary School 10,321 19,459 17,490 12,290
Hillview Elementary School 25,605 12,652 12,594 25,663
Falls Valley Elementary School 11,820 17,655 12,078 17,397
Iona Elementary School 28,979 27,826 20,191 36,614
Mountain Valley Elementary 16,943 45,950 42,807 20,086
Rimrock Elementary School 13,112 34,237 37,435 9,914
Summit Hills Elementary School 7,188 33,888 31,161 9,915
Technical Careers High School 45,390 101,100 105,537 40,953
Tiebreaker Elementary School 15,427 13,841 12,539 16,729
Ucon Elementary School 951 12,837 12,213 1,575
Woodland Hills Elementary School 12,395 42,261 35,067 19,589
Total cash 805,586 3,114,473 2,526,622 1,393,437
Investments
Bonneville High School 237,281 233 237,514
Hillcrest High School 184,469 251 184,720
Thunder Ridge High School
Rocky Mountain Middle School 10,447 10,469 20,916
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 432,197 10,953 422,234 20,916
Total assets 1,237,783 3,125,426 2,948,856 1,414,353
See Independent Auditor's Report.
50
-
Bonneville Joint School District #93
All Agency Funds
Combining Schedule of Changes in Assets and Liabilities
Fiscal Year Ended June 30, 2019
Balance Balance
LIABILITIES June 30, 2018 Increases Decreases June 30, 2019
Accounts payable
Bonneville High School (72) 72 -
Hillcrest High School 57 57 -
Thunder Ridge High School -
Rocky Mountain Middle School 7,463 7,463 -
Sandcreek Middle School 599 599 -
Lincoln High School 1,226 1,226 -
Ammon Elementary School 68 68 -
Bridgewater Elementary 111 111 -
Cloverdale Elementary School 5,150 5,150 -
Discovery Elementary 926 926 -
Fairview Elementary School 74 74 -
Hillview Elementary School 590 590 -
Falls Valley Elementary School --
Iona Elementary School 171 171 -
Mountain Valley Elementary 194 194 -
Rimrock Elementary School (19) 19 -
Summit Hills Elementary School 257 257 -
Technical Careers High School 411 411 -
Tiebreaker Elementary School 82 82 -
Ucon Elementary School 12 12 -
Woodland Hills Elementary School 1,082 1,082 -
Total accounts payable 18,382 91 18,473 -
Due to student groups
Bonneville High School 314,800 15,765 299,035
Hillcrest High School 369,773 16,098 353,675
Thunder Ridge High School 30,341 156,946 187,287
Rocky Mountain Middle School 45,060 4,980 50,040
Sandcreek Middle School 195,197 19,054 214,251
Lincoln High School 30,859 633 30,226
Ammon Elementary School 12,230 3,604 15,834
Bridgewater Elementary 15,546 905 16,451
Cloverdale Elementary School 1,468 4,029 5,497
Discovery Elementary 18,850 12,482 31,332
Fairview Elementary School 10,247 2,043 12,290
Hillview Elementary School 25,015 648 25,663
Falls Valley Elementary School 11,820 5,577 17,397
Iona Elementary School 28,808 7,806 36,614
Mountain Valley Elementary 16,749 3,337 20,086
Rimrock Elementary School 13,131 3,217 9,914
Summit Hills Elementary School 6,931 2,984 9,915
Technical Careers High School 44,979 4,026 40,953
Tiebreaker Elementary School 15,345 1,384 16,729
Ucon Elementary School 939 636 1,575
Woodland Hills Elementary School 11,313 8,276 19,589
Total due to student groups 1,219,401 234,691 39,739 1,414,353
Total liabilities 1,237,783 234,782 58,212 1,414,353
See Independent Auditor's Report.
51
Bonneville Joint School District #93
Taxes Receivable
Fiscal Year Ended June 30, 2019
Unearned balance at July 1, 2018
ADDITIONS
2017 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, 2019
Total
245,435
7,798,479
2,546
7,801,025
4,993,640
2,804,748
7,798,388
248,072
General Fund
2018
0
2017
and prior
245,435
7,798,476
(6,617)
7,791,859
9,163
9,163
4,819,106
2,797,210
7,616,316
174,534
7,538
182,072
175,543 72,526
See Independent Auditor's Report.
52
Bonneville Joint School District #93
Taxes Receivable
Fiscal Year Ended June 30, 2019
Debt Service Fund Capital Projects Fund
2017 2017
Total 2018 and prior Total 2018 and prior
249,288 0 249,288 107,970 0 107,970
7,356,357 7,356,360 2,864,555 2,864,556
(2,962) (1,470) (1,492) (793) (839) 46
7,353,395 7,354,890 (1,492) 2,863,762 2,863,717 46
4,696,639 4,535,574 161,065 1,843,979 1,772,839 71,140
2,656,631 2,649,189 7,442 1,017,809 1,014,322 3,487
7,353,270 7,184,763 168,507 2,861,788 2,787,161 74,627
249,413 170,127 79,289 109,944 76,556 33,389
See Independent Auditor's Report.
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Single Audit Section
Bonneville Joint School District #93
June 30, 2019
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 contained 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, 2019, 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 2, 2019.
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 and therefore, material weaknesses or significant deficiencies may exist that were not
identified. We did identify certain deficiencies in internal control, described in the accompanying schedule of
findings and questioned costs as item 2019-001, that we consider to be a material weakness.
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. 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.
54
The results of our tests disclosed instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards and which are described in the accompanying schedule of findings and
questioned costs as items 2019-002 and 2019-003.
Responses to Findings
The District’s response to the findings identified in our audit are described in the accompanying schedule of
findings and questioned costs. The District’s response was not subjected to the audit procedures applied in the
audit of the financial statements and, accordingly, we express no opinion on it.
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 District’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Wipfli LLP
CPAs and Consultants
Idaho Falls, Idaho
October 2, 2019
55
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, 2019. 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 qualified opinion on compliance for its major federal
program. However, our audit does not provide a legal determination of the District’s compliance.
Basis for Qualified Opinion on Title I – Improving Basic Programs
As described in the accompanying schedule of findings and questioned costs, Bonneville Joint School District #93
did not comply with requirements regarding Title I – Improving Basic Programs as described in finding number
2019-003 for Time & Effort Reporting. Compliance with such requirements is necessary, in our opinion, for
Bonneville Joint School District #93 to comply with the requirements applicable to that program.
56
Qualified Opinion on Title I – Improving Basic Programs
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, 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, 2019.
Other Matters
The results of our auditing procedures disclosed other instances of noncompliance with those requirements, which
are required to be reported in accordance with the Uniform Guidance and which are described in the
accompanying schedule of findings and questioned costs as item 2019-002. Our opinion on the major program is
not modified with respect to these matters.
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, and therefore material weaknesses or significant deficiencies may
exist that have not been identified. We identified certain deficiencies in internal control over compliance that we
consider to be material weaknesses as described in the accompanying schedule of findings and questioned costs as
items 2019-002 and 2019-003.
The District’s response to the internal control over compliance findings identified in our audit are described in the
accompanying schedule of findings and questioned costs. The District’s response was not subjected to the
auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
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 2, 2019
57
Bonneville Joint School District #93
Schedule of Findings and Questioned Costs
Fiscal Year Ended June 30, 2019
SECTION I -SUMMARY OF AUDITORS’ RESULTS
Financial Statements
Type of auditor’s report issued: Unmodified.
Internal control over financial reporting:
Material weakness (es) identified? X Yes 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? X Yes 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: Qualified.
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)? X Yes No
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster
84.010 Title I
Dollar threshold used to distinguish
between type A and type B programs: $750,000
Auditee qualified as low-risk auditee? X Yes No
58
Bonneville Joint School District #93
Schedule of Findings and Questioned Costs
Fiscal Year Ended June 30, 2019
SECTION II -FINDINGS -FINANCIAL STATEMENT AUDITS
Finding 2019-001 Cost allocation and documentation – (Material Weakness)
Criteria or Specific Requirement: An internal control structure should be designed to identify and properly
allocate employees who function across multiple cost objectives.
Condition: Two employees inaccurately were coded to the Title I program. According to their contracts and
signed affidavits, their time was not appropriately split.
Context: During our single-audit test work, we identified two employees erroneously coded to the Title I
program.
Effect: Title I expenditures were overstated prior to correction.
Cause: Lack of communication between federal programs director and the business office as to which employees
were being charged to the program.
Recommendation: We recommend that the District create or modify current processes to ensure that
communication on employee changes and coding requirements are completed timely and reviewed. We further
recommend that the Time and Effort processes be reviewed to ensure proper and complete completion as noted in
finding 2019-003 in conjunction with the above.
Views of Responsible Officials and Planned Corrective Actions: See corrective action plan on page 65.
SECTION III -FINDINGS AND QUESTIONED COSTS -MAJOR FEDERAL AWARD PROGRAMS
AUDIT
2019-002 Cost allocation and documentation – (Material Weakness)
Funding Agency: US Department of Education
Title: Title I Improving basic programs
CFDA Number: 84.010
Criteria or Specific Requirement: An internal control structure should be designed to identify and properly
allocate employees who function across multiple cost objectives.
Condition: Two employees inaccurately coded to the Title I program. The payroll team was not notified of
changes in employment allocation after initial adjustments were made.
Context: One employee was initially hired as a kindergarten teacher specifically for Title I and was later changed
to a regular teacher. Another teacher was to be coded 50-50 to the Title I program. Neither change was
communicated to the payroll department by the program.
Questioned Costs: $0 because wages were subsequently moved out of Title I.
Cause: Lack of communication between federal programs director and the payroll office to change the allocation
in the system when employment changes are made related to federal programs coding.
Effect: Title I expenditures were overstated prior to correction.
59
Bonneville Joint School District #93
Schedule of Findings and Questioned Costs
Fiscal Year Ended June 30, 2019
SECTION III -FINDINGS AND QUESTIONED COSTS -MAJOR FEDERAL AWARD PROGRAMS
AUDIT, continued
2019-002 Cost allocation and documentation – (Material Weakness)
Funding Agency: US Department of Education
Title: Title I Improving Basic Programs
CFDA Number: 84.010
Auditor Recommendation: We recommend that the District create or modify current processes to ensure that
communication on employee changes and coding requirements are appropriately completed timely. We further
recommend that the Time and Effort processes be reviewed to ensure proper and complete completion as noted in
finding 2019-003 in conjunction with the above.
Views of Responsible Officials and Planned Corrective Actions: See corrective action plan on page 65.
2019-003 Time and Effort Documentation – (Material Weakness)
Funding Agency: US Department of Education
Title: Title I Improving basic programs
CFDA Number: 84.010
Criteria or Specific Requirement: Documentation must be maintained for all employees coded to a federal
program in whole or in part.
Condition: Two employees in the sample had no documentation to support the allocation of their salary and
benefit costs to the Title I federal program.
Context: One employee was under a new principal and was unaware of the requirement to substantiate employee
time for those working in his school. The other was the same employee noted in findings 2019-001 & 2019-002
who should have been coded 50-50 to the Title I program.
Questioned Costs: $0 because wages were subsequently moved out of Title I.
Cause: Incomplete processes to ensure employee documentation obtained and maintained by the appropriate
federal program and/or the district.
Effect: The federal program is not in compliance with Time & Effort reporting for FY19. In addition, correct
processes in this area would have detected or prevented at least part of the issues identified in findings 2019-001
& 2019-002.
Auditor Recommendation: We recommend that the District create a method to verify that all employee Time &
Effort items are identified and collected as required under the program requirements. This may take the form of a
payroll report cross-referenced against a spreadsheet or any other method that accurately tracks what has been
done, and what remains to be done. The verification against payroll records for allocation and completeness is
strongly recommended.
Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding. See
corrective action plan on page 65.
60
Entity Identifying
Education:
Abise
Bonneville Joint School District #93
Schedule of Expenditures of Federal Awards
Fiscal Year Ended June 30, 2019
Federal Pass-Through
CFDA Entity Identifying
Federal Grantor / Pass-Through Grantor / Program Title Number Number Expenditures
United States Department of Education
Passed Through Idaho State Department of Education:
Title I Grants to Local Educational Agencies 84.010 S010A170012 408,903
S010A180012 1,220,204
Migrant Education -Basic State Grant Program 84.011 S011A170012 14,292
S011A180012 34,296
English Language Acquisition 84.365 S365A170012 20,006
S365A180012 53,567
Supporting Effective Instruction 84.367 S367A170011 69,712
S367A180011 203,728
Student Support and Academic Enrichment 84.424 S424A170013 45
S424A180013 144,819
Subtotal 2,169,572
Special Education Cluster
Special Education – School-age 84.027 H027A170088 8,815
H027A180088 1,960,974
Special Education – Preschool 84.173 H183A180030 66,244
Total Special Education Cluster 2,036,033
Total Passed Through the Idaho State Department of Education 4,205,605
Passed Through the State Division of Professional-Technical
Vocational Education -Basic Grants to States 84.048 V048A180012 119,472
Total U.S. Department of Education 4,325,077
United States Department of Health and Welfare
Passed Through the State Department of Health & Welfare:
Block Grant for the Prevention & Treatment of Substance 93.959 41,084
Total U.S. Department of Transportation 41,084
61
9
Bonneville Joint School District #93
Schedule of Expenditures of Federal Awards
Fiscal Year Ended June 30, 2019
Federal Pass-Through
CFDA Entity Identifying
Federal Grantor / Pass-Through Grantor / Program Title Number Number Expenditures
United States Department of Agriculture
Passed Through the Idaho State Department of Education:
Child Nutrition Cluster
Cash Assistance
School Breakfast Program 10.553 201818N109947 58,966
201919N109947 416,594
National School Lunch Program-cash 10.555 201818N109947 235,031
201919N109947 1,495,695
Summer Food Service Program for Children 10.559 201818N109947 78,984
2,285,270
Non-Cash Assistance (Commodities)
National School Lunch Program 10.555 333,975
Total Child Nutrition Cluster 2,619,245
Fresh Fruit and Vegetable Program 10.582 201919L180347 16,980
Total Passed Through Idaho State Department of Education 2,636,225
Passed Through Bonneville County
Federal Forest 10.665 22,476
Total U.S. Department of Agriculture 2,658,701
Total expenditures of federal awards 7,024,862
62
Bonneville Joint School District #93
Notes to Schedule of Expenditures of Federal Awards
Fiscal Year Ended June 30, 2019
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, 2019. 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, 2019.
NOTE D INDIRECT COST RATE
The District has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.
NOTE E SUBRECIPIENTS
The District had no subrecipients or subrecipient expenditures.
63
Bonneville Joint School District #93
Summary Schedule of Prior Year Audit Findings
Fiscal Year Ended June 30, 2019
Audit Finding Reference: None
Status of Prior Audit Finding: None
64
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~ ai?~T~H~Ys·R~~~
'~~I ttt'/t".>/J/ .5'urre.\:\· IJ..Y Dl"~.tt·1Un,..
3497 North Ammon Road, Idaho Falls, Idaho, 83401 ~ (208) 525-4400 ~ Fax (208) 529-0104 ~ www.d93schools.org
Dr. Scott Woolstenhulme, Superintendent
September 30, 2019
Corrective Action Plan regarding GL coding of Federal Funds Personnel
During the financial audit for FY 18-19 it was brought to our attention that an employee's salary
and benefits were coded to Title I when they were in fact a General Education teacher. Upon
researching the circumstances, we learned the teacher had previously been a Title I teacher,
and then switched to a General Education teacher. When the change was made there was not
appropriate communication to update the account code in district payroll records.
To ensure this does not happen in the future the following procedures have been put into
place.
1. After September payroll has been run each year a listing of all personnel coded to
Federal Programs will be sent to supervisors over Federal Programs to ensure the names
are correct and that any assignment changes have been appropriately communicated
and reflected in the payroll system. This same process will also take place after March
payroll each year. Reminders for these reports to be sent has been calendared as
recurring events on the calendar of the CFOO.
2. The Human Resources Generalist assigned to Federal Programs and the Federal
Programs Director are now more aware that assignment changes need to be monitored
each year and appropriately communicated to payroll when the change occurs.
3. During discussions with the Federal Programs Administrative Assistant we became
aware that she did not have payroll access to employees being paid with Federal Funds.
Access has now been granted so that she has view only access to employees coded to
Federal Funds. With this access she can run reports at any time to monitor who is being
paid with federal funds.
4. Once data has been submitted to SOE each year for ISEE reporting, the CFOO has
identified a report that can be run from the SOE website that will produce a listing of
employees being paid from Federal Funds. This report will be generated and compared
with listings from our payroll system as another check on who is being paid from Federal
Funds.
5. An item has been added to the CFOO's year-end checklist to work with Federal
Programs to ensure that every employee coded to Federal Funds has completed the
appropriate forms for Time & Effort Reporting. lfwe find someone listed as being pa id
with Federal Funds and we don't have Time & Effort documentation, there is likely a
coding error that needs to be corrected, or this will apprise us of the need to obtain
proper Time & Effort documentation.
Board of Trustees ~ Paul Jenkins~ Amy Landers ~ Chad Dance ~Greg Calder ~ Scott Lynch
Bonneville Joint School District No. 93 is an Equal Opportunity Employer
65