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HomeMy WebLinkAbout2021 Bonneville School District Audit Bonneville Joint School District #93 IdahoFalls,Idaho Annual Financial Report Year Ended June 30, 2021 Bonneville Joint School District #93 Contents June 30, 2021 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 Statement of Revenues, Expenditures, And Changes in Fund Balances to the Statement of Activities ...................................................................16 Notes to Financial Statements ...................................................................................................................... 17-41 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 Schedule of Taxes Receivable ..................................................................................................................... 50-51 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 ................................................................................................52-53 i Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2021 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, 2021. 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 2021 are as follows: In total, net position decreased by $1,073,223 which represents an 2.74% decrease from 2020 restated balance of $39,234,349. General revenues accounted for $89,395,016 in revenue or 71.67% of all revenues. Program specific revenues in the form of charges for services, operating grants and contributions, and capital grants and c ontributions accounted for $35,341,295 or 28.33% of total revenues of $124,736,311. Total assets of governmental activities decreased by $4,398,115, as cash and cash equivalents decreased by $9,902,009, receivables and prepaid expenses increased by $950,116, inventory decreased by $18,020, and capital assets increased by $4,571,748. 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 $7,682,491. The District had $125,809,534 in expenses; only $35,341,295 of these expenses were offset by program specific charges for services, grants, or contributions. General revenues (primarily state support and local property taxes) of $89,395,016 were adequate to provide for these programs. Among major funds, the General Fund had $82,702,640 in revenues, and $81,741,212 in expenditures. The General Fund’s fund balance increased $514,756 from 2020. 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, 2021 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 2021?” 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 ac tivities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the financial statements. 2 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2021 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 2021 compared to 2020: 2020 - 2021 as restated Assets Current and other assets 57,253,687 66,223,550 Capital assets 144,523,567 139,951,819 Total assets 201,777,254 206,175,369 Deferred outflows of resources 16,753,899 11,812,174 Current and other liabilities 15,484,688 17,489,490 Long-term liabilities 161,245,868 153,184,214 Total liabilities 176,730,556 170,673,704 Deferred inflows of resources 3,639,471 9,572,540 Net investment in capital assets 30,006,795 25,501,198 Restricted 26,109,911 24,006,240 Unrestricted (17,955,580) (10,273,089) Total net position 38,161,126 39,234,349 Total assets of governmental activities decreased by $4,398,115, as cash and cash equivalents decreased by $9,902,009, receivables and prepaid expenses increased by $950,116, inventory decreased by $18,020, and capital assets increased by $4,571,748. The District’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $38,161,126 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 $7,682,491. 3 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2021 The following table shows the changes in net position for fiscal years 2021 and 2020: Revenues Program revenues Charges for services Operating grants and contributions General revenues Property taxes State aid Federal aid Other 2021 3,708,994 31,632,301 19,269,692 67,741,471 37,943 2,345,910 2020 3,449,040 19,676,920 20,596,067 67,624,096 35,567 2,471,983 Total revenues 124,736,311 113,853,673 Program expenses Instruction Support services Administrative Business admin services Operations Transportation Community service Non-instructional Interest and fiscal charges Capital improvements 69,341,545 20,698,145 8,130,937 2,339,653 9,951,208 4,699,056 79,432 5,971,973 3,650,573 947,012 57,914,572 18,085,973 7,112,663 2,161,893 9,043,047 3,964,627 94,993 3,495,063 3,866,125 852,115 Total expenses 125,809,534 106,591,071 Increase (decrease) in net position (1,073,223) 7,262,602 GOVERNMENTAL ACTIVITIES Governmental revenues come primarily from three apportionment, other state grants, and revenue in sou lieu rces. of State aid taxes, and of $79,38 makes up 6,258 consists of the 63.64% of revenues state from governmental activities. Property taxes of $19,021,665 make up 15.25% of total revenues from governmental activities. Federal contracts and grants of $21,334,291 make up 17.10% of total revenues from governmental activities. Instruction expenditures including the support activities of support services, administrative, business admin services, operations, and transportation comprise $115,160,544 of District expenses. 4 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2021 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 2021 Services 2021 Instruction 55.12 69,341,545 56,291,339 Support services 16.45 20,698,145 13,018,862 Administrative 6.46 8,130,937 7,848,515 Business admin services 1.86 2,339,653 2,152,659 Operations 7.91 9,951,208 7,404,055 Transportation 3.74 4,699,056 1,847,725 Community service 0.06 79,432 78,000 Non-instructional 4.75 5,971,973 (225,199) Interest and fiscal charges 2.90 3,650,573 1,177,863 Capital improvements 0.75 947,012 874,420 Total expenses 100 125,809,534 90,468,239 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. 5 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2021 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 $124,496,179 and expenditures of $129,267,389. The net change in fund balance for the year in the General Fund, Debt Service Fund, Capital Projects Fund, and Construction 2018 Fund, was an increase of $514,756, a decrease of $1,511,224, an increase of $585,579, and a decrease of $10,307,803 respectively. GENERAL FUND BUDGETING HIGHLIGHTS During the course of fiscal 2021 year, the District did amend its budget. For the General Fund, the budgeted revenue was $80,660,003 and the budgeted expense was $85,321,274. Actual revenue was $82,702,640 which includes $711,307 for leadership premiums to qualifying personnel and $319,903 in professional development funds. Actual expenditures were $81,741,212, which include expenditures related to the leadership premiums and professional development. CAPITAL ASSETS At the end of the fiscal year 2021, the District had $144,523,567 invested in land, buildings, furniture and equipment, and vehicles (net of accumulated depreciation). 2021 2020 Non-depreciable assets 34,862,347 25,564,512 Buildings and improvements 105,918,350 110,656,914 Equipment 1,740,984 1,664,382 Vehicles 2,001,886 2,066,011 Total capital assets, net 144,523,567 139,951,819 Overall capital assets increased $4,571,748 from fiscal year 2020 to fiscal year 2021. 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, 2021, the District had outstanding capital lease obligations of $91,919. At June 30, 2021, the District had five general obligation bond issues as follows: Due within Total one year 2012A Series Bond 11,780,000 2012C Series Bond 2,160,000 1,060,000 2016A Series Bond 48,330,000 960,000 2016B Series Bond 17,245,000 1,840,000 2018 Series Bond 28,905,000 Total 108,420,000 3,860,000 At June 30, 2021, the District’s overall legal debt margin was $202,440,882. 6 Bonneville Joint School District #93 Management’s Discussion & Analysis Fiscal Year Ended June 30, 2021 CURRENT FINANCIAL ISSUES AND CONCERNS Bonneville Joint School District 93 was able to offer in-person instruction during the entire 2020-2021 school year. COVID-19 certainly had an impact on attendance which is a major component of state funding. As this was a major issue for most Idaho school districts, a temporary state rule was enacted to shift funding to enrollment. The Idaho Legislature also enacted legislation that reduced state support for schools, and in turn allocated federal funds to backfill the holdback to keep schools generally at the same revenue level as was originally expected. As we begin the 2021-2022 school year, it appears that attendance is going to be an issue again, and there have been initial discussions at the state level regarding another temporary rule to fund school s on enrollment again this school year. Another change the Idaho Legislature made for this coming school year is that no funds can be withdrawn from the Idaho Public Education Stabilization Fund if final statewide allocations exceed budgeted amounts. Th is is a concern for all Idaho School Districts as funds have been drawn from this resource for the last several years to keep schools wholly funded. We have not been given any estimates on the potential impact of this law, and likely won’t know any more details until Spring of 2022. Because we have a healthy fund balance and the ability to adjust staffing, we believe we can adjust expenditures to deal with any negative impacts of this legislation. There has been much discussion throughout the state about having the state fund all-day kindergarten in coming years. As our elementary schools are near capacity, this would require the use of more modular classrooms, construction of building additions, or construction of new buildings. As taxable market values have increased dramatically, taxpayers will certainly be paying attention to anything the District proposes that may increase tax payments. As building costs have also substantially increased, this is an issue we are monitoring closely. COMPONENT UNIT These 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. 7 This page intentionally left blank. 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, 2021, 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 or 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, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States. 8 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 contribution PERSI-Sick Leave Plan last 10 fiscal years, 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 o ur audit of the basis financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The accompanying supplementary information, such as the combining and individual nonmajor fund financial schedules and other schedules listed in the table of contents are not a required part of the financial statements. The combining and individual nonmajor fund financial schedules and other schedules listed in the table of contents 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 themse lves, 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 and other schedules listed in the table of contents 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 7, 2021, on our consideration of Bonneville Joint School District #93’s internal control over financial reporting and on 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 7, 2021 9 This page intentionally left blank. Bonneville Joint School District #93 Statement of Net Position June 30, 2021 Governmental Activities ASSETS Cash and investments 39,037,302 Property tax receivable, net 7,134,409 Other receivables 6,622,012 Supplies inventory 122,533 PERSI sick leave 4,337,431 Land and construction in progress 34,862,347 Depreciable buildings, equipment, and vehicles, net of depreciation 109,661,220 Total assets 201,777,254 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding 1,544,245 Changes of assumptions and other inputs - OPEB 333,114 Changes of assumptions and other inputs - PERSI SL 603,112 Related to pensions 14,273,428 Total deferred outflows of resources 16,753,899 LIABILITIES Accounts payable 1,868,777 Accrued wages 8,812,281 Accrued employee benefits 3,325,529 Interest payable 1,478,101 Long-term liabilities Net pension liability 35,383,980 Portion due or payable within one year Capital leases and contracts payable 22,980 General obligation bonds/premium 5,538,395 Other liabilities 260,081 Portion due or payable after one year Capital leases and contracts payable 68,939 General obligation bonds/premium 115,669,904 Other post employment benefits 4,301,589 Total liabilities 176,730,556 DEFFERED INFLOWS OF RESOURCES Differences between expected & actual experience - OPEB 1,374,544 Differences between expected & actual experience - PERSI SL 1,109,561 Related to pensions 1,155,366 Total deferred inflows of resources 3,639,471 NET POSITION Net investment in capital assets 30,006,795 Restricted for Capital improvements 7,991,920 Debt service 11,071,003 Child nutrition 1,608,479 Other 5,438,509 Unrestricted (17,955,580) Total net position 38,161,126 The accompanying notes are an integral part of these statements. 10 0 0 Bonneville Joint School District #93 Statement of Activities Fiscal Year Ended June 30, 2021 Functions / Programs Governmental activities Instruction Support services Administrative Business admin services Operations Transportation Community service Noninstructional Interest on long-term debt Capital improvements Expenses 69,341,545 20,698,145 8,130,937 2,339,653 9,951,208 4,699,056 79,432 5,971,973 3,650,573 947,012 Charges for services 1,283,335 2,323,167 27,148 27,990 47,354 Program Revenues Operating Capital grants and grants and contributions contributions 11,766,871 5,356,116 255,274 186,994 2,547,153 2,823,341 1,432 6,149,818 2,472,710 72,592 Net (expense) revenue and changes in net position Total governmental activities (56,291,339) (13,018,862) (7,848,515) (2,152,659) (7,404,055) (1,847,725) (78,000) 225,199 (1,177,863) (874,420) Total governmental activities 125,809,534 3,708,994 31,632,301 0 (90,468,239) General revenues Taxes Property taxes Property tax replacement Federal grants State aid - formula grants Other state revenues Investment earnings Other local Gain (loss) on sale of assets 19,021,665 248,027 37,943 67,047,924 693,547 51,715 2,062,148 232,047 Total general revenues 89,395,016 Change in net position (1,073,223) Net position - beginning, as originally stated 37,741,299 Prior period adjustment 1,493,050 Net position - beginnng, as restated 39,234,349 Net position - ending 38,161,126 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 Bonneville Joint School District #93 Combined Balance Sheet Governmental Funds June 30, 2021 All Total Debt Capital Construction Nonmajor Governmental General Service Projects 2018 Funds Funds ASSETS Cash and investments 11,457,254 7,230,890 7,094,922 5,946,127 7,308,109 39,037,302 Receivables Taxes - current 1,982,611 3,459,711 956,329 6,398,651 Taxes - delinquent 245,869 379,181 110,708 735,758 State apportionment 2,865,466 3 2,865,469 Federal grants/contracts 3,293,257 3,293,257 Other 455,995 1,218 756 5,317 463,286 Interfund receivable 1,622,330 1,622,330 Supplies inventory 122,533 122,533 Total assets 18,629,525 11,071,003 8,161,959 5,946,883 10,729,216 54,538,586 LIABILITIES Accounts payable 644,519 170,039 799,134 255,085 1,868,777 Accrued wages 7,624,599 1,187,682 8,812,281 Accrued employee benefits 2,730,911 594,618 3,325,529 Interfund payable 1,622,330 1,622,330 Total liabilities 11,000,029 0 170,039 799,134 3,659,715 15,628,917 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 245,869 379,181 110,708 0 0 735,758 FUND BALANCES Nonspendable Inventory 122,533 122,533 Restricted for Debt service 10,691,822 10,691,822 Child nutrition 1,485,946 1,485,946 Other fund activities 7,881,212 5,147,749 5,461,022 18,489,983 Assigned 7,383,627 7,383,627 Total fund balances 7,383,627 10,691,822 7,881,212 5,147,749 7,069,501 38,173,911 Total liabilities, deferred inflows of resources, and fund balances 18,629,525 11,071,003 8,161,959 5,946,883 10,729,216 54,538,586 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, 2021 Total fund balances - governmental funds 38,173,911 Amounts reported for governmental activities in the Statement of Net Position different because: are 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. (11,244,054) 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 $35,383,980, deferred inflows of resources related to pensions is $1,155,366 and deferred outflows of resources related to pensions is $14,273,428. (22,265,918) 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 $(4,337,431), deferred inflows of resources related to PERSI sick leave is $1,109,561 and deferred outflows of resources related to PERSI sick leave is $603,112. 3,830,982 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 $235,829,819 and the accumulated depreciation is $91,306,252. 144,523,567 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. 735,758 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. (1,041,430) Long-term liabilities at year end consisted of: Bonds payable (108,420,000) Accrued interest on the bonds (1,478,101) Compensated absences (260,081) Capital lease obligation (91,919) OPEB obligation (4,301,589) 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. (114,551,690) Total net position - governmental activities 38,161,126 The accompanying notes are an integral part of these statements. 13 Bonneville Joint School District #93 Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Fiscal Year Ended June 30, 2021 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 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, 2021 All Total Debt Capital Construction Nonmajor Governmental General Service Projects 2018 Funds Funds REVENUES Property taxes 5,903,517 10,186,860 2,823,119 18,913,496 Penalties and interest on delinquent taxes 39,935 45,230 14,919 100,084 Earnings on investments 27,429 23,291 (832) 1,827 51,715 Food service 47,354 47,354 Rental 27,148 27,148 Other local 1,581,677 62,648 2,991,508 4,635,833 State apportionment Base 58,575,246 58,575,246 Transportation 2,763,824 2,763,824 Exceptional child 11,052 11,052 Benefits 8,472,678 8,472,678 Property tax replacement 241,988 90,995 332,983 Other state revenue 5,058,146 2,472,710 1,699,619 9,230,475 Federal grants and contracts 21,334,291 21,334,291 Total revenues 82,702,640 12,819,086 2,900,686 (832) 26,074,599 124,496,179 EXPENDITURES Current Instruction 49,082,876 275,932 10,470,513 59,829,321 Support services 13,008,948 328,967 6,262,270 19,600,185 Administration 6,862,600 22,432 255,274 7,140,306 Business operations 1,875,096 426,100 38,457 2,339,653 Operations 7,032,746 1,203,739 1,554,648 9,791,133 Transportation 3,801,679 591,054 59,517 4,452,250 Other support services Community services 77,267 2,165 79,432 Noninstructional 5,938,338 5,938,338 Debt service 9,030,751 9,030,751 Facility acquisition 426,210 10,306,971 332,839 11,066,020 Total expenditures 81,741,212 9,030,751 3,274,434 10,306,971 24,914,021 129,267,389 Revenues over (under expenditures) 961,428 3,788,335 (373,748) (10,307,803) 1,160,578 (4,771,210) 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, 2021 General OTHER FINANCING SOURCES (USES) Proceeds from capital lease Proceeds from sale of capital assets Payment to refunded bond escrow agent Operating transfers, net (446,672) Total other financing sources (uses) (446,672) Debt Service (5,299,559) (5,299,559) Capital Projects 526,172 433,155 959,327 Construction 2018 0 All Total Nonmajor Governmental Funds Funds 91,919 91,919 526,172 (5,299,559) 13,517 0 105,436 (4,681,468) Revenues and other financing sources over (under) expenditures 514,756 (1,511,224) 585,579 (10,307,803) 1,266,014 (9,452,678) Fund balance - July 1, 2020, as restated 6,868,871 12,203,046 7,295,633 15,455,552 5,803,487 47,626,589 Fund balance - June 30, 2021 7,383,627 10,691,822 7,881,212 5,147,749 7,069,501 38,173,911 The accompanying notes are an integral part of these statements. 15 Reference Columns Bonneville Joint School District #93 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities For Fiscal Year Ended June 30, 2021 Total net change in fund balances - governmental funds: (9,452,678) Amounts reported for governmental activities in the Statement of Activities are different because: The issuance of long-term debt provides current financial resources to governemntal funds, while the repayment of the principal of long-term debt consumes the current financial 8,580,000resources of governmenal funds. Neither transaction has any effect on net position. 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 and asset dispositions. 4,479,828 Because some property taxes will not be collected for several months after the District's fiscal year ends, they are not considered 'available' revenues in the governmental funds. Unearned tax revenues decreased by $8,085 this year. 8,085 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 (6,696,276) 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 decrease in interest expense reported in the Statement of Activities is the net result of the decrease in accrued interest on bonds. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. This amount is the net effect of these differences in the treatment of long-term 2,007,818debt and related items. Change in net assets of governmental activities (1,073,223) The accompanying notes are an integral part of these statements. 16 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 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 S tate 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, 2021, 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. 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 o n 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. 17 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 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. Construction 2018 Fund -The Construction 2018 Fund is used to account for the proceeds from a construction bond, and account for renovation and construction of facilities according to the bond agreement. Special Revenue Fund - The purpose of the Special Revenue Fund is to account for federal, state, and locally funded grants and activities. 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 and School Activity Funds. 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. The School Activity Funds are monies collected primarily 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 p rovide 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 reven ue 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. 18 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 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. 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 amend their General Fund budget in 2021. 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 ar e 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 or credit unions organized under Idaho Law, and national banks or credit unions located in Idaho. 19 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 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. 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 20 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 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 from 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. 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 several 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. 21 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued The District has several types of items, one of which arises under a modified accrual basis of accounting, and others that arise in the government wide financial statements, that qualify for reporting in this category. Accordingly, 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. 22 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 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. 22. Recently Adopted Accounting Pronouncement. As of July 1, 2020, the District implemented GASB Statement No. 84, Fiduciary Activities. This Statement establishes new criteria for identifying fiduciary activities that are reported in the fiduciary funds. This Statement also revised the definition and terminology used for activities that were previously classified as agency funds. The District has reclassified its school activities funds as a special revenue fund using the GASB Statement No. 84 definitions. Note S, prior period restatement, outlines this restatement. 23. New Accounting Pronouncements. GASB Statement No. 87, Leases: Issued June 2017, the objective of this statement is to improve accounting and financial reporting for leases and enhance the relevance and consistency of information about governments’ leasing activities. This statement is effective for the fiscal year ending June 30, 2022. The District is evaluating what impact this new standard will have on its financial statements. NOTE B CASH AND INVESTMENTS At June 30, 2021, the carrying amount of District cash was $18,352,777 and the bank balance of the District’s deposits was as follows: Bank Balance Insured by Federal Depository Insurance 750,000 Insured by National Credit Union Share Insurance 250,000 Uninsured and uncollateralized 17,874,815 Totals 18,874,815 23 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE B CASH AND INVESTMENTS, continued At June 30, 2021, 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 20,616,491 20,684,525 150 Days Total investments 20,616,491 20,684,525 Interest rate risk -The District manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio. Credit risk -The District’s deposits and investments at year end are limited to the Local Government Investment Pool, bank deposits, and certificates of deposits with various banks located in Idaho. The District has reduced its concentration of credit risk by using several financial institutions. Custodial credit risk -In the case of deposits, this is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. The District does not have a deposit policy for custodial credit risk. As of June 30, 2021, $17,874,815 of the District’s deposits and certificates of deposit were exposed to custodial credit risk because it was uninsured and uncollateralized. Of the investments, $20,684,525 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 tr ansactions between funds had not been paid or received as of June 30, 2021, balances of interfund amounts receivable or payable have been recorded. The interfund balances at June 30, 2021, were as follows: Receivable Payable General Fund 1,622,330 Nonmajor Funds 1,622,330 Total 1,622,330 1,622,330 The General Fund transferred $91,517 to Child Nutrition and $433,155 to Plant Facilities as required by State law. The federal programs transferred $78,000 to the General Fund as budgeted for payment of indirect costs. 24 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 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, 2021, the District contracted with various contractors to do certain projects, revisions, and additions. The following construction contracts were in progress at June 30, 2021: Expenditures Remaining Original bid Average Recorded Construction Project plus changes % complete Currently obligation Middle School – New Construction 29,656,224 98.1% 29,095,791 560,433 Total 29,656,224 29,095,791 560,433 25 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE F CAPITAL ASSETS Following is a summary of the capital assets at June 30, 2021: Capital assets, not being depreciated Elementary Secondary Construction in progress Balance at June 30, 2020 3,039,416 3,021,265 19,503,831 Additions 9,591,960 Deletions (294,125) Transfers Balance at June 30, 2021 3,039,416 2,727,140 29,095,791 Total capital assets, not being depreciated 25,564,512 9,591,960 (294,125) 0 34,862,347 Capital assets, being depreciated Buildings Elementary Secondary Administration Total buildings 72,093,360 108,220,534 4,761,530 185,075,424 172,412 602,052 774,464 0 0 72,265,772 108,822,586 4,761,530 185,849,888 Equipment Elementary Secondary Administration Total equipment 1,018,676 1,938,387 2,383,075 5,340,138 142,290 257,092 46,900 446,282 (13,550) (13,550) 0 1,160,966 2,195,479 2,416,425 5,772,870 Vehicles 9,052,473 471,890 (179,649) 0 9,344,714 Total capital assets, being depreciated 199,468,035 1,692,636 (193,199) 0 200,967,472 Less accumulated depreciation for: Buildings Equipment Vehicles (74,418,510) (3,675,756) (6,986,462) (5,513,028) (369,680) (536,015) 13,550 179,649 (79,931,538) (4,031,886) (7,342,828) Total accumulated depreciation (85,080,728) (6,418,723) 193,199 0 (91,306,252) Total capital assets being depreciated, net 114,387,307 (4,726,087) 0 0 109,661,220 Governmental activities capital assets, net 139,951,819 4,865,873 (294,125) 0 144,523,567 Depreciation expense was charged to the functions of the primary government as follows: Governmental activities Instruction 5,560,336 Operations 322,372 Transportation 536,015 Total depreciation expense – governmental activities 6,418,723 26 44,033,750 300 2018 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE G 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 2012C bond is scheduled to mature March 2023. The 2012A bond is scheduled to mature September 2031. The 2016A and 2016B bonds are scheduled to mature September 2033 and September 2028, respectively. The 2018 bond is scheduled to mature September 2035. Future debt service requirements are as follows: Fiscal Year Ended June 30, Total Interest Principal 2022 8,864,574 5,004,574 3,860,000 2023 8,924,874 4,844,874 4,080,000 2024 8,409,499 4,654,499 3,755,000 2025 9,138,625 4,448,625 4,690,000 2026 9,816,501 4,201,501 5,615,000 2027-2031 61,965,188 15,675,188 46,290,000 2032-2036 44,033,750 3,903,750 40,130,000 Total 151,153,011 42,733,011 108,420,000 Changes to bond principal payable and future interest payable are summarized as follows: 2012A 2012C 2016A 2016B 2018 Combined Principal Series Series Series Series Series Total Balances at July 1, 2020 11,780,000 8,115,000 49,165,000 19,035,000 28,905,000 117,000,000 Reductions 5,955,000 835,000 1,790,000 8,580,000 Balances at June 30, 2021 11,780,000 2,160,000 48,330,000 17,245,000 28,905,000 108,420,000 Interest Balances at July 1, 2020 5,893,050 1,442,625 20,853,300 4,097,750 16,822,461 49,109,186 Reductions 587,600 1,355,425 2,221,475 802,950 1,408,725 6,376,175 Balances at June 30, 2021 5,305,450 87,200 18,631,825 3,294,800 15,413,736 42,733,011 NOTE H CHANGES IN LONG-TERM LIABILITIES Following is a summary of the changes in long-term debt for the year ended June 30, 2021: Current Balance Balance Portion July 1, 2020 Increases Decreases June 30,2021 Balance Bonds payable 117,000,000 8,580,000 108,420,000 3,860,000 Premium on bonds 14,909,885 2,121,586 12,788,299 1,678,395 Total bonds/premium 131,909,885 10,701,586 121,208,299 5,538,395 OPEB 3,778,339 523,250 4,301,589 Capital lease 114,899 22,980 91,919 22,980 Employee benefits 267,675 7,594 260,081 260,081 Total 135,955,899 638,149 10,732,160 125,861,888 5,821,456 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 is paid from. 27 Month s Valley Office Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 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, 2021, the limit for the District was 5% of $6,003,405,624 or $300,170,281. The Debt Service Fund had $10,690,601 available and the general obligation debt was $108,420,000 leaving a legal debt margin of $202,440,882. NOTE J DEBT REFUNDING In June of 2021, the District paid $5,299,559 to an escrow account for the purchase of securities that were placed in an irrevocable trust for the purpose of paying all future debt service payments of $4,935,000 of general obligation refunding bonds on the 2012C series to reduce the debt obligations of the District. The advanced refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $7,481 after also removing the premium on the bonds and is recognized as a component of interest expense. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the governmental activities on the statement of net position. The outstanding principal on the defeased bond is $4,935,000 at June 30, 2021. NOTE K LEASE OBLIGATIONS Capital Leases The District entered into a capital financing lease with Huntington Technology Finance, Inc. The arrangement commenced on June 10, 2020, and includes annual payments for five years with imputed interest totaling $114,889, which is equal to the cost of the capital asset received. Obligations of governmental activities under capital lease as of June 30, 2021, were as follows: Year Lease Payments 2022 22,980 2023 22,980 2024 22,980 2025 22,979 91,919 Operating Leases The District was obligated for the following leases 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 Great American Copiers 3/2018 60 389 8,169 Great American Copiers 5/2018 5 years 8,634/yr 16,549 Great American Copiers 7/2018 5 years 9,849/yr 20,519 Great American Copiers 8/2018 60 960 24,970 CIT Copier 2/2019 60 165 5,280 CIT Copier 2/2019 60 69 2,201 Great American Copier 4/2019 60 99 3,366 Great American Copier 4/2019 60 119 4,046 28 June 30, 4,66 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE K LEASE OBLIGATIONS, continued Description of Date of Term of Future Monthly Minimum Lessor Leased Property Inception Lease Lease Amount Lease Payments Xerox Copier 10/2018 60 120 3,360 CIT Copier 8/2019 48 75 1,950 CIT Copier 8/2019 48 107 2,782 CIT Copier 8/2019 60 175 6,650 Great American Copier 7/2020 60 175 8,575 Total minimum lease payments 108,417 Total rental expense under the equipment and other operating leases for the year ended June 30, 2021, was $48,340. Minimum future lease payments under these operating leases as of June 30, 2021, for the succeeding years are: Fiscal Year Ended Total 2022 47,921 2023 46,035 2024 11,836 2025 2,450 2026 175 Total 108,417 NOTE L NON-MONETARY TRANSACTIONS The District received $255,612 in USDA Commodities during the 2020-2021 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 2020 through June 2021, to be paid over the twelve months of September 2020 through August 2021. 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, 2020, the measurement date, there were 1,035 active participants and 46 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. 29 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE N OTHER POST-EMPLOYMENT BENEFITS (OPEB), continued Funding Policy. The contribution requirement of plan members is established by the District’s insurance committee in conjunction with our insurance provider. The required contribution is based on projected pay-as- you-go financing requirements. For fiscal year 2021, the District contributed approximately $202,289 of the annual required contribution of $760,778. 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, 2021, and the total other post-employment benefit liability was determined by an actuarial valuation as of June 30, 2020. 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, 2021, 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, 2020. Actuarial Cost Method Entry Age Normal Inflation 2.27% Salary Increases 3.75% Discount Rate 2.27% Health Cost Trend Rates Medical with vision trend is 7.3% from year ending June 30, 2021, then gradually decreasing to an ultimate rate of 3.8% for 2077 and beyond. Dental trend is 2.9% from year ending June 30, 2021 then gradually lowering to 2.0% for 2024 and beyond, as shown in the June 30, 2021, 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 40% of future retirees are assumed to elect medical coverage and 70% of the future retirees who elect medical coverage and are married are assumed to elect spousal coverage as well. Mortality Mortality is assumed to follow the RP2000 Healthy Combined Mortality Table adjusted with generational mortality adjustments using Scale AA, 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, 2019, to June 30, 2020. The cost of Medical and Prescription was $9,155 for a retiree or surviving spouse, and $5,997 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 $56 for a spouse. 30 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE N OTHER POST-EMPLOYMENT BENEFITS (OPEB), continued Total OPEB Liability June 30, 2021 Total OPEB liability 4,301,589 Covered employee payroll 45,100,125 Total OPEB liability as a % of covered employee payroll 9.54% 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* 2.27% *The discount rate was based on the average of multiple 6/30/20 municipal bond rate sources. Changes Since Prior Valuation None Changes in Total OPEB Liability Increase (Decrease) Changes in total OPEB liability Total OPEB Liability Balance as of June 30, 2020 3,778,339 Changes for the year: Service cost 548,323 Interest on total OPEB liability 109,465 Differences in experience - Changes of assumptions or other inputs 67,752 Benefit payments (202,290) Balance as of June 30, 2021 4,301,589 Sensitivity Analysis The following presents the total OPEB liability of the school district, calculated using the discount rate of 2.27%, 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 (1.27%) or 1 percentage point higher (3.27%) than the current rate. 1% Decrease Discount Rate 1% Increase Total June 30, 2021, OPEB liability 4,575,541 4,301,589 4,035,831 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. 1% Decrease Current Trend Rate 1% Increase Total June 30, 2021, OPEB liability 3,813,117 4,301,589 4,877,711 31 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE N OTHER POSTEMPLOYMENT BENEFITS (OPEB), continued July 1, 2020 to OPEB Expense June 30, 2021 Service cost 548,323 Interest on total OPEB liability 109,465 Recognition of Deferred Inflows/Outflows of Resources Difference between expected and actual experience (98,511) Recognition of assumption changes or inputs 21,336 Benefit payments (202,290) OPEB expense 378,323 Other Post-Employment Benefits Expense and Deferred Resources Related to Other Post-employment Benefits Outflows of Resources and Deferred Inflows for Schedule of Deferred Inflow/Outflows of Resources Original Deferred Deferred Original Date Recognition Amount Inflow of Outflow of Amount Established Period Recognized Resources Resources Differences between expected and actual experience/changes in assumptions (115,858) June 30, 2018 15.36 (7,542) (240,047) 146,815 Changes of assumptions or other inputs 137,467 June 30, 2019 14.53 9,460 118,547 Differences between expected and actual experience/changes in assumptions (1,213,590) June 30, 2020 15.34 (79,093) (1,134,497) Changes of assumptions or other inputs 67,752 June 30, 2021 14.50 67,752 Total (1,124,229) (77,175) (1,374,544) 333,114 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: 2022 (72,502) 2023 (72,502) 2024 (72,502) 2025 (72,502) 2026 (72,502) Thereafter (678,920) *Note that additional future deferred inflows and outflows of resources may impact these numbers. 32 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 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. 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. PERSI did not require any District contributions after December of 2019. The District contributions were $0 for the year ended June 30, 2021 as contributions were suspended on January 1, 2020. OPEB Liabilities, OPEB Expense (Expense Offset), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2021, the District reported an asset for its proportionate share of the net OPEB asset. The net OPEB asset was measured as of June 30, 2020, 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, 2020, the District’s proportion was 3.5226265 percent. For the year ended June 30, 2021, the District recognized OPEB expense offset of $0. The $0 reported as deferred outflows of resources related to OPEBs resulting from Employer contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB asset in the year ending June 30, 2022. 33 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE O PERSI SICK LEAVE INSURANCE RESERVE FUND, continued At June 30, 2021, the District reported deferred outflows of resources and deferred inflows of resources related to PERSI OPEB sick leave from the following sources: Differences between expected and actual experience Changes in assumptions or other inputs Net difference between projected and actual earnings on OPEB plan inves Changes in the employer’s proportion and differences between the emplo contribution and the employer’s proportionate contributions District contributions subsequent to the measurement date Total Deferred Outflows of Resources 456,042 10,180 tments 136,890 yer’s - - 603,112 Deferred Inflows of Resources 1,109,561 1,109,561 - - - - 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, 2020, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.25% Salary increases 3.75% Salary inflation 3.75% Investment rate of return 7.05% 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. 34 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE O PERSI SICK LEAVE INSURANCE RESERVE FUND, continued Capital Market Assumptions Long-Term Long-Term Expected Expected Nominal Rate Real Rate of Target of Return Return Asset Class Allocation (Arithmetic) (Arithmetic) Core Fixed Income Broad U.S. Equity Developed Foreign Equities 30.00% 55,00% 15.00% 3.05% 8.30% 8.45% 0.80% 6.05% 6.20% Assumed Inflation – Mean Assumed Inflation – Standard Deviation 2.25% 1.50% 2.25% 1.50% Portfolio Arithmetic Mean Return Portfolio Standard Deviation 6.75% 12.54% 4.5% 12.54% Portfolio Long-Term (Geometric) Expected Rate of Return Assumed Investment Expenses Portfolio Long-term (Geometric) Expected Rate of Return, Net of Investment Expenses 6.13% 0.40% 5.73% 3.77% 0.40% 3.37% Portfolio Long-term Expected Real Rate of Return, Net of Investment Expenses Portfolio Standard Deviation 4.19% 14.16% Valuation Assumptions Chosen by PERSI Board Long-term Expected Real Rate of Return, Net of Investment Expenses Assumed Inflation Long-Term Expected Nominal Rate of Return, Net of Investment Expenses 4.05% 3.00% 7.05% 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: Current 1% Discount 1% Decrease Rate Increase (6.05%) (7.05%) (8.05%) Employer’s proportionate share of the net OPEB liability (asset) (3,771,093) (4,337,431) (4,861,520) 35 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE O PERSI SICK LEAVE INSURANCE RESERVE FUND, continued 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, 2021, 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 until January of 2020 for the 2019-2020 school year. At January 1, 2020, the required contribution rate went to 0.0% for the remainder of the school year and is anticipated to remain at 0% until December 31, 2021. At the time of retirement, a sum equal to one-half of the monetary value of unused sick leave, calculated at the rate of pay at that time, is transferred from the sick leave account to the employee’s retirement account. This money shall then be used to pay premiums for health, accident, dental, and life insurance. NOTE 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. 36 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE Q PENSION PLAN, continued The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature. The Base Plan is required to provide a 1% minimum cost of living increase per year provided the Consumer Price Index increases 1% or more. The PERSI Board has the authority to provide higher cost of living increases to a maximum of the Consumer Price Index movement or 6%, whichever is less; however, any amount above the 1% minimum is subject to review by the Idaho Legislature. Member and Employer Contributions Member and employer contributions paid to the Base Plan are set by statute and are established as a percent of covered compensation and earnings from investments. Contribution rates are determined by the PERSI Board within limitations, as defined by state law. The Board may make periodic changes to employer and employee contribution rates (expressed as percentages of annual covered payroll) if current rates are actuarially determined to be inadequate or in excess to accumulate sufficient assets to pay benefits when due. The contribution rates for employees are set by statute at 60% of the employer rate. As of June 30, 2020, it was 7.16% for general employees and 8.81% for police and firefighters. The employer contribution rate is set by the Retirement Board and was 11.94% for general employees and 12.28% for police and firefighters. The District’s contributions were $7,146,773 for the year ended June 30, 2021. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2021, the District reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2020, 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, 2020, the District’s proportion was 1.5237711 percent. For the year ended June 30, 2021, the District recognized pension expense of $12,766,255. At June 30, 2021, 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 2,764,575 1,155,366 Changes in assumptions or other inputs 598,408 - Net difference between projected and actual earnings on pension plan investments 4,055,684 - Changes in the employer’s proportion and differences between the employer’s contribution and the employer’s proportionate contributions (292,012) - District contributions subsequent to the measurement date 7,146,773 - Total 14,273,428 1,155,366 $7,146,773 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, 2022. 37 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE Q PENSION PLAN, continued 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, 2019, the beginning of the measurement period ended June 30, 2019, is 4.8 years and 4.7 years for the measurement period ended June 30, 2020. 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: 2021 140,574 2022 1,474,066 2023 1,753,329 2024 2,603,320 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 59-1322, Idaho Code, is 25 years. The total pension liability in the June 30, 2020, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.00% Salary increases 3.75% Salary inflation 3.75% Investment rate of return 7.05%, net investment expenses Cost-of-living adjustments 1.00% 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, 2013, through June 30, 2017, which reviewed all economic and demographic assumptions including mortality. The Total Pension Liability as of June 30, 2020 is based on the results of an actuarial valuation date of July 1, 2020. 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. 38 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE Q PENSION PLAN, continued Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions in analyzing the System’s asset allocation. The assumptions and the System’s formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System’s assets. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. Capital Market Assumptions Long-Term Long-Term Expected Expected Nominal Rate of Real Rate of Return Target Return Asset Class Allocation (Arithmetic) (Arithmetic) Core Fixed Income Broad U.S. Equity Developed Foreign Equities 30.00% 55,00% 15.00% 2.8% 8.55% 8.70% .55% 6.30% 6.45% Assumed Inflation – Mean Assumed Inflation – Standard Deviation 2.25% 1.50% 2.25% 1.50% Portfolio Arithmetic Mean Return Portfolio Standard Deviation 6.85% 12.33% 4.60% 12.33% Portfolio Long-Term (Geometric) Expected Rate of Return Assumed Investment Expenses Portfolio Long-term (Geometric) Expected Rate of Return, Net of Investment Expenses 6.25% 0.40% 5.85% 3.89% 0.40% 3.49% Investment Policy Assumptions from PERSI November 2019 Portfolio Long-term Expected Real Rate of Return, Net of Investment Expenses Portfolio Standard Deviation 4.14% 14.16% Economic/Demographic Assumptions from Milliman 2018 Valuation Assumptions Chosen by PERSI Board Long-term Expected Real Rate of Return, Net of Investment Expenses Assumed Inflation Long-Term Expected Nominal Rate of Return, Net of Investment Expenses 4.05% 3.00% 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. 39 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE Q PENSION PLAN, continued 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: 1% Current 1% Decrease Discount Increase (6.05%) Rate (7.05%) (8.05%) Employer’s proportionate share of the net pension liability (asset) 72,562,848 35,383,980 4,643,114 Pension plan fiduciary net position Detailed information about the pension plan’s fiduciary net position is available in the separately issued PERSI financial report. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Payables to the pension plan At June 30, 2021, the District reported no payables to the defined benefit pension plan for legally required employer contributions and for legally required employee contributions which had been withheld from employee wages but not yet remitted to PERSI. NOTE R 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. Due to continuing effects of the novel coronavirus (COVID-19) pandemic, the District's budget for fiscal year 2022 has been negatively impacted. Additional costs have been incurred for transitioning to new learning methodologies and adapting current facilities resulting in a negative impact to the District. The District cannot reasonably estimate the future impact of the economic changes as a result of the pandemic. 40 Bonneville Joint School District #93 Notes to Financial Statements June 30, 2021 NOTE S PRIOR PERIOD RESTATEMENT The District implemented GASB Statement No. 84, Fiduciary Activities and as a result has reclassified its school activities funds as a special revenue fund. Following are the effect on net position and fund balance as of July 1, 2020 as a result of this restatement: Beginning balance as originally stated School Activity funds Beginning balance, as restated Net Position 37,741,299 1,493,050 39,234,349 All Nonmajor Funds 4,310,438 1,493,049 5,803,487 NOTE T SUBSEQUENT EVENTS Management of the District evaluated subsequent financial statements were available to be issued. events through October 7, 2021, which was the date the In July 2021, the District refunded $11,780,000 (2012A) of their bond indebtedness in order to reduce property tax levy requirements and reduce overall interest payments. There were no other subsequent type events, identified by management of the District, that are required to be disclosed. There were no other events identified by management that were required to be disclosed in these financial statements. 41 REQUIRED FINANCIAL INFORMATION Original 0 0 Bonneville Joint School District #93 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance -Budget to Actual- Fiscal Year Ended June 30, 2021 Favorable Original Final (Unfavorable) REVENUES Budget Budget Actual Variance Property taxes 7,957,806 5,800,000 5,903,517 103,517 Penalties and interest on delinquent taxes 25,000 25,000 39,935 14,935 Earnings on investments 27,429 27,429 Tuition 50,000 50,000 55,483 5,483 Rental 19,500 26,016 27,148 1,132 Other local 416,739 308,653 1,526,194 1,217,541 State apportionment Base 59,599,179 58,068,906 58,575,246 506,340 Transportation 2,752,097 2,699,742 2,763,824 64,082 Exceptional child 25,000 25,000 11,052 (13,948) Benefits 8,193,627 8,425,758 8,472,678 46,920 Property tax replacement 248,027 248,027 241,988 (6,039) Other state revenue 4,029,135 4,982,900 5,058,146 75,246 Total revenues 83,316,109 80,660,003 82,702,640 2,042,638 EXPENDITURES Instruction Elementary 22,608,818 22,913,248 21,643,024 1,270,224 Secondary 21,651,699 21,602,709 20,344,704 1,258,005 Alternative school 701,801 765,948 753,131 12,817 Special education program 4,646,403 4,457,263 4,486,334 (29,071) Special education preschool program 356,406 310,397 303,334 7,063 Gifted and talented 284,045 215,997 134,305 81,692 Interscholastic program 1,184,838 1,186,021 1,160,533 25,488 School activity 215,651 249,020 257,511 (8,491) Total instruction 51,649,662 51,700,602 49,082,876 2,617,726 Support services Attendance, guidance, and health 2,933,289 2,969,022 2,917,322 51,700 Special education support services 5,640,115 5,927,488 6,337,563 (410,075) Instructional improvement 1,116,919 2,118,056 1,933,047 185,009 Educational media 859,493 800,175 836,070 (35,895) Instruction related technology 1,732,617 1,035,916 984,946 50,970 Total support services 12,282,432 12,850,657 13,008,948 (158,291) See Independent Auditor's Report. 42 (Unfavorable) Original Bonneville Joint School District #93 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance -Budget to Actual- Fiscal Year Ended June 30, 2021 Favorable Original Final (Unfavorable) EXPENDITURES, continued Budget Budget Actual Variance Administration Board of Education 360,690 403,282 340,406 62,876 District administration 351,764 340,213 342,253 (2,040) School administration 6,336,464 5,961,534 6,179,941 (218,407) Total administration 7,048,919 6,705,029 6,862,600 (157,571) Business Administrative Services Business operations 1,655,551 1,956,350 1,695,646 260,704 Central services 206,867 215,473 167,837 47,636 Administrative Technology Services 40,000 40,000 11,613 28,387 Total business administrative services 1,902,418 2,211,823 1,875,096 336,727 Operations Building care (custodial) 5,220,863 3,941,514 3,757,006 184,508 Maintenance 2,872,870 3,189,203 2,769,557 419,646 Security 448,517 505,331 506,183 (852) Total operations 8,542,250 7,636,048 7,032,746 603,302 Transportation 3,986,809 4,093,447 3,801,679 291,768 Community service 128,163 123,669 77,267 46,402 Total expenditures 85,540,653 85,321,274 81,741,212 3,580,062 Revenues over (under) expenditures (2,224,543) (4,661,271) 961,428 5,622,699 OTHER FINANCING SOURCES (USES) Operating transfers, net (438,175) (447,013) (446,672) 341 Contingency - budget only (1,693,217) (1,760,588) 1,760,588 Revenues and other financing sources over (under) expenditures (4,355,935) (6,868,872) 514,756 7,383,628 Fund balance - July 1, 2020 6,868,871 Fund balance - June 30, 2021 7,383,627 See Independent Auditor's Report. 43 oll Bonneville Joint School District #93 Required Supplementary Information Fiscal Year Ended June 30, 2021 Schedule of Changes in Total OPEB Liability and Related Ratios As of the measurement date of June 30, 2020 2021 2020 2019 2018 Total OPEB Liability Service cost 548,323 513,403 512,500 456,245 Interest on total OPEB liabilty 109,465 168,399 147,380 149,723 Differences in experience -(512,762) -(298,301) Effect of assumption changes or inputs 67,752 (700,828) 137,467 182,443 Expected benefit payments (202,290) (246,776) (197,261) (176,160) Net change in total OPEB liability 523,250 (778,564) 600,086 313,950 Total OPEB liability, beginning 3,778,339 4,556,903 3,956,817 3,642,867 Total OPEB liability, ending 4,301,589 3,778,339 4,556,903 3,956,817 Covered valuation payroll 45,100,125 43,470,000 45,056,550 43,428,000 Total OPEB liability as a % of covered valuation payr 9.54% 8.69% 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, 2021 Schedule of Employer's Share of Net OPEB Asset PERSI-Sick Leave Plan Last 10 - Fiscal Years* 2020 2019 2018 2017 Employer's portion of net OPEB asset 3.5226265% 3.6101186% 3.3965902% 3.1983609% Employer proportionate share of the net OPEB asset 4,337,431 3,457,786 2,817,300 2,455,155 Employer's covered-employee payroll 54,260,793 51,263,509 45,756,462 40,809,784 Employer's proportional share of the net OPEB asset as a percentage of its covered-employee payroll 7.994% 6.745% 6.157% 6.016% Plan fiduciary net position as a percentage of the total OPEB asset 152.87% 138.51% 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, 2020 (measurement date). Schedule of Employer Contribution PERSI-Sick Leave Plan Last 10-Fiscal Years * 2021 2020 2019 2018 Statutorily required contribution 0 157,357 594,657 530,775 Contributions in relation to the statutorily required contribution 0 316,207 592,204 529,753 Contribution (deficiency) excess 0 158,851 (2,453) (1,022) Employer's covered payroll 59,855,707 54,260,793 51,263,509 45,756,462 Contributions as a percentage of covered payroll 0.000% 0.580% 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, 2021 (reporting date). See Independent Auditor's Report. 45 Bonneville Joint School District #93 Required Supplementary Information Fiscal Year Ended June 30, 2021 Schedule of Employer's Share of Net Pension Liability PERSI-Base Plan Last 10-Fiscal Years * 2020 2019 2018 2017 2016 2015 2014 Employer's portion of net pension liability 1.52377110% 1.50930670% 1.41939760% 1.31157080% 1.30930460% 1.313797300% 1.289265200% Employers proportionate share of the net pension liability 35,383,980 17,228,315 20,936,362 20,615,640 26,541,615 17,300,573 9,491,010 Employer's covered payroll 54,260,793 51,263,509 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 65.21% 33.61% 45.76% 50.52% 69.26% 47.01% 27.17% Plan fiduciary net position as a percentage of the total pension liability 88.22% 93.79% 91.69% 90.68% 87.26% 91.38% 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, 2020 (measurement date). Schedule of Employer Contributions PERSI-Base Plan Last 10-Fiscal Years * 2021 2020 2019 2018 2017 2016 Statutorily required contribution 7,146,771 6,478,739 5,803,029 5,179,631 4,619,668 4,338,056 4,165,744 Contributions in relation to the statutorily required contribution 7,146,773 6,478,608 5,803,027 5,179,635 4,619,665 4,338,975 4,165,658 Contribution (deficiency) excess 2 (131) (2) 4 (3) 919 (86) Employer's covered payroll 59,855,707 54,260,793 51,263,509 45,756,462 40,809,784 38,322,048 36,799,863 Contributions as a percentage of covered-payroll 11.9400% 11.9398% 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, 2021 (reporting date). See Independent Auditor's Report. 46 2015 Bonneville Joint School District #93 Notes to Required Supplementary Information Fiscal Year Ended June 30, 2021 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 Bonneville Joint School District #93 All Nonmajor Funds Combining Balance Sheet June 30, 2021 Public Idaho Improving Perkins III Supporting Bonneville All Child Federal Special Student Driver's Professional School Substance Basic Migrant IDEA IDEA Professional Effective COVID Education Construction Nonmajor Nutrition Forest E-rate Projects Activities Ed Technical Technology Abuse Programs ESSER I Education ESSER II School-Age Preschool Medicaid Title IV Technical Title III Instruction Relief Foundation 2016 Funds ASSETS Cash and investments 1,748,747 199,521 388,954 331,514 1,761,003 33,991 1,153,816 1,291,614 373,163 25,786 7,308,109 Federal grants/contracts 134,309 4,078 3,450 517,035 14,542 14,585 969,530 389,132 19,476 890,630 132,711 17,916 83,413 102,450 3,293,257 Other receivables 5,311 6 5,317 Supplies inventory 122,533 122,533 Total assets 2,005,589 199,521 393,032 331,514 1,761,003 37,441 1,153,816 1,291,614 373,163 517,035 14,542 14,585 969,530 389,132 19,476 890,630 0 132,711 17,916 83,413 102,450 5,311 25,792 10,729,216 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable 153,642 37,610 5,632 13,348 6,469 17,088 3,587 7,184 1,502 661 18 4,553 512 3,279 255,085 Accrued wages 155,395 342 18,283 195,630 5,450 38,519 192,119 6,521 540,807 5,471 1,536 27,609 1,187,682 Accrued employee benefits 88,073 66 3,757 63,050 2,698 10,273 123,253 3,636 292,930 1,090 281 5,511 594,618 Interfund payable 254,768 7,358 4,935 920,077 73,742 9,319 56,893 132,711 11,355 77,043 69,330 4,799 1,622,330 Total liabilities 397,110 0 37,610 5,632 13,348 408 28,509 0 17,088 517,035 14,542 14,585 969,530 389,132 19,476 890,630 0 132,711 17,916 83,413 102,450 5,311 3,279 3,659,715 FUND EQUITY Nonspendable Restricted Total fund equity 122,533 1,485,946 1,608,479 199,521 199,521 355,422 355,422 325,882 325,882 1,747,655 1,747,655 37,033 37,033 1,125,307 1,125,307 1,291,614 1,291,614 356,075 356,075 0 0 0 0 0 0 0 0 0 0 0 0 0 22,513 22,513 122,533 6,946,968 7,069,501 Total liabilities and fund equity 2,005,589 199,521 393,032 331,514 1,761,003 37,441 1,153,816 1,291,614 373,163 517,035 14,542 14,585 969,530 389,132 19,476 890,630 0 132,711 17,916 83,413 102,450 5,311 25,792 10,729,216 See Independent Auditor's Report. 48 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, 2021 Public Idaho Improving Perkins III Supporting Bonneville All Child Federal Special Student Driver's Professional School Substance Basic Migrant IDEA IDEA Professional Effective COVID Education Construction Nonmajor Nutrition Forest E-rate Projects Activities Ed Technical Technology Abuse Programs ESSER I Education ESSER II School-Age Preschool Medicaid Title IV Technical Title III Instruction Relief Foundation 2016 Funds REVENUES Earnings on investments 2,171 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (344) 1,827 Food service Other local Other state revenue Federal grants and contracts 47,354 2,113 3,979,624 37,943 346,981 210,609 20,002 2,421,469 5,025 3,700 506,748 1,030,739 158,432 1,613,648 1,192,574 63,931 3,249,628 2,116,560 69,675 3,601,477 150,939 132,711 66,063 271,421 4,768,095 5,311 47,354 2,991,508 1,699,619 21,334,291 Total revenues 4,031,262 37,943 346,981 230,611 2,421,469 8,725 506,748 1,030,739 158,432 1,613,648 1,192,574 63,931 3,249,628 2,116,560 69,675 3,601,477 150,939 132,711 66,063 271,421 4,768,095 5,311 (344) 26,074,599 EXPENDITURES Instruction 21,964 44,729 9,345 1,210,312 27,309 260,599 244,078 514,071 763,796 150,939 20,076 43,163 2,145,828 1,812,366 1,991 3,320 4,325,780 2,948,106 Elementary Secondary Alternative school 515 - -17,881 11,993 8,908 39,297 Interscholastic program 11,830 11,830 Special education program 31,862 -1,283,016 1,151,597 -2,466,475 Special ed preschool program 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 Student Activities Facility acquisition 3,723,144 85,189 510 70,594 21,135 29,939 3,333 200 733 7,746 116,835 2,166,864 274,073 727 14,116 12,146 701,890 20,542 102,715 58,549 9,161 275,317 4,512 52,715 320,506 5,912 2,717 112,224 9,964 2,401 100,125 17,806 1,432 7,840 12,792 51,139 3,915 500 677,628 1,277,725 833,544 69,675 126,713 2,323,167 132,711 2,824 271,421 109,208 208,235 11,864 66,173 233,164 15,514 70,750 41,511 32,744 0 0 216,004 200,900 71,341 406,784 226,648 3,477,717 835,030 35,716 1,687,159 255,274 38,457 1,554,648 59,517 2,165 3,771,474 2,166,864 332,839 Total expenditures 3,723,144 0 85,189 318,233 2,166,864 9,345 301,062 722,432 102,715 1,580,648 1,192,574 63,931 3,249,628 2,116,560 69,675 3,601,477 150,939 132,711 66,063 271,421 4,768,095 5,311 216,004 24,914,021 Revenues over (under) expenditures 308,118 37,943 261,792 (87,622) 254,605 (620) 205,686 308,307 55,717 33,000 0 0 0 0 0 0 0 0 0 0 0 0 (216,348) 1,160,578 OTHER FINANCING SOURCES (USES) Proceeds from issuance of debt Net transfers 46,517 91,919 (33,000) 91,919 13,517 Total other financing sources 46,517 0 0 91,919 0 0 0 0 0 (33,000) 0 0 0 0 0 0 0 0 0 0 0 0 0 105,436 Revenues and other financing sources over (under) expenditures and other financing sources (uses) 354,635 37,943 261,792 4,297 254,605 (620) 205,686 308,307 55,717 (216,348) 1,266,014 Fund balance - July 1 2020, as restated 1,253,844 161,578 93,630 321,585 1,493,050 37,653 919,621 983,307 300,358 0 0 0 0 0 0 0 0 0 0 0 0 0 238,861 5,803,487 Fund balance - June 30, 2021 1,608,479 199,521 355,422 325,882 1,747,655 37,033 1,125,307 1,291,614 356,075 0 0 0 0 0 0 0 0 0 0 0 0 0 22,513 7,069,501 See Independent Auditor's Report. 49 This page intentionally left blank. Bonneville Joint School District #93 Schedule of Taxes Receivable Fiscal Year Ended June 30, 2021 Unearned balance at July 1, 2020 ADDITIONS 2020 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, 2021 Total 291,689 5,861,705 (4,391) 5,857,314 3,920,524 1,982,610 5,903,134 245,869 General Fund 2020 0 2019 and prior 291,689 5,861,705 (2,967) 5,858,738 (1,424) (1,424) 3,730,097 1,975,764 5,705,861 190,427 6,846 197,273 152,877 92,992 See Independent Auditor's Report. 50 Bonneville Joint School District #93 Schedule of Taxes Receivable Fiscal Year Ended June 30, 2021 Debt Service Fund Capital Projects Fund Total 329,968 2020 0 2019 and prior 329,968 Total 106,016 2020 0 2019 and prior 106,016 10,242,929 (6,859) 10,236,070 10,242,932 (5,185) 10,237,747 (1,674) (1,674) 2,829,801 (1,991) 2,827,810 2,829,802 (1,432) 2,828,370 (559) (559) 6,727,148 3,459,709 10,186,857 6,507,623 3,452,514 9,960,137 219,525 7,195 226,720 1,866,789 956,329 2,823,118 1,797,850 953,816 2,751,666 68,939 2,513 71,452 379,181 277,610 101,574 110,708 76,704 34,005 See Independent Auditor's Report. 51 This page intentionally left blank. 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 an d 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, 2021, 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 7, 2021. 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) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Bonneville Joint School District #93’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether Bonneville Joint School District #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 financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 52 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 7, 2021 53 Bonneville Joint School District #93 Idaho Falls, Idaho Annual Federal Financial Compliance Report Year Ended June 30, 2021                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   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 programs for the year ended June 30, 2021. Bonneville Joint School District #93’s major federal programs are 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, and the terms and conditions of its federal awards applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for Bonneville Joint School District #93’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Bonneville Joint School District #93’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for its major federal program. However, our audit does not provide a legal determination of the District’s compliance. Opinion on Each Major Federal Program In our opinion, the District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021. 1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              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 types 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 programs and to test and report on internal control over compliance in accordance with Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Bonneville Joint School District #93’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited 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, 2021, and the related notes to the financial statements, which collectively comprise the District's basic financial statements. We issued our report thereon dated October 7, 2021, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. 2                                                                                                                          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 March <>, 2022 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Bonneville Joint School District #93 Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2021 SECTION I ‐SUMMARY OF AUDITORS’ RESULTS Financial Statements Type of auditor’s report issued: Unmodified. Internal control over financial reporting:  Material weakness (es) identified? Yes X No  Significant deficiency (ies) identified that are not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs:  Material weakness (es) identified? Yes X No  Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes X None reported Type of auditor’s report issued on compliance for major programs: Unmodified. Any audit findings disclosed that are required to be reported in accordance with Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)? Yes X No Identification of major programs: AL Number(s) Name of Federal Program or Cluster 84.027/84.173 Special Education Cluster 21.019 Coronavirus Relief Fund 84.425D Elementary and Secondary School Emergency Relief Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low‐risk auditee? Yes X No 4                                                                            Bonneville Joint School District #93 Schedule of Findings and Questioned Costs Fiscal Year Ended June 30, 2021 SECTION II ‐FINDINGS ‐FINANCIAL STATEMENT AUDITS NONE SECTION III ‐FINDINGS AND QUESTIONED COSTS ‐MAJOR FEDERAL AWARD PROGRAMS AUDIT NONE 5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Bonneville Joint School District #93 Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2021 Federal Grantor / Pass‐Through Grantor / Program Title Federal AL Number Pass‐Through Entity Identifying Number Expenditure United States Department of Education Passed Through Idaho State Department of Education: Title I Grants to Local Educational Agencies Total Title I Grants to Local Educational Agencies 84.010 S010A180012 S010A190012 S010A200012 1,000 341,900 1,270,747 1,613,647 Migrant Education ‐Basic State Grant Program Total Migrant Education ‐Basic State Grant Program 84.011 S011A180012 S011A190012 S011A200012 408 31,165 32,358 63,931 English Language Acquisition Total English Language Acquisition 84.365 S365A190012 S365A200012 23,714 42,349 66,063 Supporting Effective Instruction Total Supporting Effective Instruction 84.367 S367A190011 S367A200011 49,113 222,308 271,421 Student Support and Academic Enrichment 84.424 S424A200013 150,939 COVID‐19 ‐Elementary and Secondary School Emergency Relief Total COVID‐19 – ESSER 84.425D S425D200043 S425D210043 1,107,409 3,249,628 85,165 4,442,202 Special Education Cluster Special Education – School‐age Special Education – Preschool Total Special Education Cluster 84.027 84.173 H027A190088 H027A200088 H183A200030 20,283 2,096,278 69,676 2,186,237 Total Passed Through the Idaho State Department of Education 8,794,442 Passed Through the State Division of Professional‐Technical Vocational Education ‐Basic Grants to States 84.048 V048A190012 132,711 Total U.S. Department of Education 8,927,151 6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Bonneville Joint School District #93 Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2021 Federal Grantor / Pass‐Through Grantor / Program Title Federal AL Number Pass‐Through Entity Identifying Number Expenditures United States Department of Agriculture Passed Through the Idaho State Department of Education: Child Nutrition Cluster Cash Assistance School Breakfast Program COVID‐19 ‐School Breakfast Program National School Lunch Program COVID‐19 – National School Lunch Program COVID‐19 – Emergency Food Service Grant Summer Food Service Program for Children Non‐Cash Assistance (Commodities) National School Lunch Program 10.553 10.555 10.559 10.555 202121N109947 202020N850347 202121N109947 202020N850347 202020N109947 485,750 45,965 2,373,027 274,943 11,327 122,552 3,313,563 255,612 Total Child Nutrition Cluster 3,569,176 Fruit and Vegetable Program Discretionary Grants 10.582 10.579 202020L160347 201616L180330 32,760 27,338 Total U.S. Department of Agriculture 3,629,274 United States Department of Treasury Passed Through the Idaho State Department of Education: COVID‐19 – Coronavirus Relief Fund 21.019 4,866,459 Total U.S. Department of Treasury 4,866,459 United States Department of Health and Welfare Passed Through the Idaho State Department of Health and Welfare: Block Grant for Prevention & Treatment of Substance Abuse 93.959 20,002 Total U.S. Department of Health and Welfare 20,002 Total expenditures of federal awards 17,442,886 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Bonneville Joint School District #93 Notes to Schedule of Expenditures of Federal Awards Fiscal Year Ended June 30, 2021 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, 2021. 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 accrual basis of accounting as described in Note A to the District’s financial statements. Such expenditures are recognized following the cost principles contained in 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, 2021. 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. 8                                                                         Bonneville Joint School District #93 Summary Schedule of Prior Year Audit Findings Fiscal Year Ended June 30, 2021 The following summarizes the prior audit findings and corrective action taken: None 9