Pequea Valley School District 2018 Audit December 4, 2018 - PowerPoint PPT Presentation

Pequea Valley School District 2018 Audit December 4, 2018

Introduction • Independent Auditors’ Report for the year ended June 30, 2018 • Management’s Discussion and Analysis. Unaudited information prepared by John Bowden, Chief of Finance and Operations. • Government Wide Statements - Full accrual basis statements. For Management Use Only 2

Governmental Activities Highlights Capital asset additions of $1.46M included Apple iPads • (leased), the planetarium project, the High School auditorium upgrade, and the Salisbury Elementary systems automation. Disposal of various capital assets in current year • included the old Paradise Elementary School Building. $3.79M of principal payments made during the year. • Ending balance of outstanding debt at June 30, 2018 is $10.48M. Implementation of new OPEB accounting standard • resulted in a $2.90M increase in noncurrent liabilities. Net position increased by $1.84M as of June 30, 2018. • 3 For Management Use Only

GASBS No. 75, OPEB Effects the full-accrual financial statements • – Government-Wide – Enterprise Fund (Food Service) Additional footnote disclosures and required • supplementary information Summary of effects ($000) • PV Plan PSERS Plan OPEB Liability 1,251 1,883 OPEB Expense 123 95 Prior Period Adjustment 1,908 1,145 For Management Use Only 4

PSERS • Pension Reform • As of 6/30/17, PSERS plan was approximately 52% funded (about $49 billion unfunded liability) – PV’s proportionate share .0924% • Normal Cost 7.70 • Unfunded Liability 31.74 Premium Assistance .83 32.57% • Net pension liability at 6/30/18 - $45.6M For Management Use Only 5

Governmental Activities Historical Analysis June 30, 2016 June 30, 2017 June 30, 2018 Current Assets 20,369,217 16,747,960 18,789,686 Noncurrent Assets 42,382,105 40,826,953 39,614,303 Total Assets 62,751,322 57,574,913 58,403,989 Deferred Outflow 3,276,470 9,153,453 9,489,310 of Resources Current Liabilities 9,322,192 6,865,240 8,438,368 Noncurrent Liabilities 52,820,831 55,921,363 56,668,158 Total Liabilities 62,143,023 62,786,603 65,106,526 Deferred Inflow 1,118,000 1,031,000 740,000 of Resources Total Net Position 2,766,769 2,910,763 2,046,773 6 For Management Use Only

General Fund Results 2016 2017 2018 - Actual 2018 – Final Budget Local Revenues 25,122,858 26,401,750 27,736,091 26,687,045 State Revenues 6,972,240 8,495,424 8,487,247 8,149,454 Federal Revenues 1,329,446 1,378,277 1,094,343 1,097,058 Total Revenues 33,424,271 36,275,451 37,317,681 35,933,557 % Increase 1.1% 8.5% 2.9% Instructional Services 16,779,069 18,034,360 19,132,698 19,613,675 Instructional Student Support 3,732,352 3,853,601 3,710,573 3,489,152 Admin & Financial Support 2,855,517 3,022,198 3,258,967 3,312,693 Operation & Maintenance 2,657,185 2,836,370 2,398,950 2,552,602 Student Transportation 2,376,574 2,295,373 2,395,086 2,398,632 Student Activities 599,550 646,693 649,781 657,530 Community Services 32,447 35,435 33,774 33,755 Debt Service Principal 65,930 65,930 65,930 -0- Total Expenditures 29,098,624 30,789,960 31,645,759 32,058,039 % Increase 5.3% 5.8% 2.8% Excess of Revenues over 4,325,647 5,485,491 5,671,922 3,875,518 Expenditures For Management Use Only 7

General Fund Results 2018 2018 2016 2017 Final Actual Budget Excess of Revenues 4,325,647 5,485,491 5,671,922 3,875,518 over Expenditures Fund Transfers 3,957,773 6,127,523 4,630,542 4,203,053 Other Uses (Sources) (278,140) (4,463) (314,553) 400,000 Total Net Other 3,679,633 6,123,060 4,315,989 4,603,053 Financing Uses Change in Fund (646,014) (637,569) 1,355,933 (727,535) Balance Ending Fund 11,872,593 11,235,024 12,590,957 Balance For Management Use Only 8

General Fund – Expense Analysis $35,000,000 0.21% 0.21% 0.11% 2.05% 0.12% 0.23% 2.10% 7.57% 0.11% 7.45% $30,000,000 2.06% Debt Service Principal 7.58% 8.17% 9.21% Community Services 9.13% 10.30% $25,000,000 9.82% Student Activities 9.81% 11.73% 12.52% Student Transportation $20,000,000 12.83% Operation & Maintenance Admin & Financial $15,000,000 Support Instructional Student Support 60.46% Instructional Services 58.57% $10,000,000 57.66% $5,000,000 $- 2016 2017 2018 For Management Use Only 9

Capital Projects Fund Ending Fund Fiscal Year Fund Additions Expenditures Balance 2017-18 18,078 1,158,541 931,275 2016-17 2,123,991 1,573,685 2,071,738 2015-16 9,519 1,307,794 1,521,432 For Management Use Only 10

GASB No. 54 – Fund Balance Reporting and Governmental Type Definitions Capital Project General Fund Fund Nonspendable Prepaid Expenses 9,955 -0- Committed (Board) for Future 5,300,000 -0- Retirement Contributions Committed (Board) for Future Health 2,900,000 -0- Care Costs Assigned for Future Capital Outlays -0- 931,275 Unassigned (Residual general fund 4,381,002 -0- balance) Total 12,590,957 931,275 For Management Use Only 11

Food Service Fund 2015-16 2016-17 2017-18 Operating Revenues 85,141 202,964 210,794 Non-operating Revenues 609,363 543,970 570,146 Revenues 694,504 746,934 780,940 Salaries and Benefits 177,228 214,170 238,274 Purchased Services 261,293 221,234 192,062 Supplies 403,746 291,573 298,050 Depreciation 38,865 28,527 19,194 Total Expenses 881,132 755,504 747,580 Change in Net Position (186,628) (8,570) 33,360 13 For Management Use Only

Internal Service Fund 2015-16 2016-17 2017-18 Charges for Services 2,796,034 3,416,245 2,910,942 Employee Benefits 3,719,233 3,872,246 2,910,942 Non Operating Revenues 2,560 2,013 3,377 Interfund Transfers -0- -0- 500,000 Change in Net Position (920,639) (453,988) 503,377 For Management Use Only 13

Other Financial Statement Components Notes to Financial Statements • – Note 1 – Summary of Significant Accounting Policies – Note 10 – Long-Term Debt – Note 15 – Defined Benefit Pension Plan – Note 16 – Other Postemployment Benefits (OPEB) – Note 21 – Change in Accounting Principle Supplemental Schedules provide additional detail to • basic financial statements Single Audit (Compliance Audit of the School District’s • Federal Grants) and Related Reports For Management Use Only 14

Single Audit • Compliance audit of federal awards • Major program tested was Title I • No questioned costs For Management Use Only 15

Thank You & Staff Recognition John Bowden and Britney Hevner Thanks to John, Britney, and the rest of the Business Office staff for helping us during our audit. Pequea Valley School District We value our relationship with you and thank you for your business. For Management Use Only 16

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