ROOSEVELT SCHOOL DISTRICT. Roosevelt, New Jersey County of Monmouth COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014

Transcription

1 ROOSEVELT SCHOOL DISTRICT Roosevelt, New Jersey County of Monmouth COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014

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3 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE ROOSEVELT SCHOOL DISTRICT ROOSEVELT, NEW JERSEY FOR THE FISCAL YEAR ENDED JUNE 30, 2014 Prepared by Business Office Bernard Biesiada, Business Administrator/Board Secretary

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5 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Letter of Transmittal 1 Organizational Chart 2 Roster of Officials 3 Consultants and Advisors 4 FINANCIAL SECTION Independent Auditor's Report 7 REQUIRED SUPPLEMENTARY INFORMATION - PART I Management's Discussion & Analysis 13 BASIC FINANCIAL STATEMENTS A. District-Wide Financial Statements: A-1 Statement of Net Position 25 A-2 Statement of Activities 26 B. Fund Financial Statements: Governmental Funds: B-1 Balance Sheet 31 B-2 Statement of Revenues, Expenditures & Changes in Fund Balance 32 B-3 Reconciliation of the Statement of Revenues, Expenditures & Changes in Fund Balance of Governmental Funds to the Statement of Activities 33 Proprietary Funds: B-4 Statement of Net Position 37 B-5 Statement of Revenues, Expenditures & Changes in Fund Net Position 38 B-6 Statement of Cash Flows 39 Fiduciary Funds: B-7 Statement of Fiduciary Net Position 43 B-8 Statement of Changes in Fiduciary Net Position N/A Notes to Financial Statements 47 REQUIRED SUPPLEMENTARY INFORMATION - PART II C. Budgetary Comparison Schedules: C-1 Budgetary Comparison Schedule - General Fund 71 C-1a Combining Schedule of Revenue, Expenditures & Changes in Fund Balance - Budget & Actual N/A C-1b Education Jobs Fund Program - Budget & Actual N/A C-2 Budgetary Comparison Schedule - Special Revenue Fund 76 Notes to the Required Supplementary Information: C-3 Budget-to-GAAP Reconciliation 79

6 TABLE OF CONTENTS PAGE D. School Based Budget Schedules Fund: D-1 Combining Balance Sheet N/A D-2 Blended Resource Fund - Schedule of Expenditures Allocated by Resource Type - Actual N/A D-3 Blended Resource Fund - Schedule of Blended Expenditures - Budget & Actual N/A E. Special Revenue Fund: E-1 Combining Schedule of Revenues & Expenditures - Special Revenue Fund - 87 Budgetary Basis E-2 Preschool Education Aid Schedule(s) of Expenditures - Budgetary Basis N/A F. Capital Projects Fund: F-1 Summary Statement of Project Expenditures N/A F-2 Summary Schedule of Revenues, Expenditures and Changes in Fund Balance - Budgetary Basis N/A F-2a Schedule of Revenues, Expenditures, Project Balance & Project Status - Budgetary Basis N/A G. Proprietary Funds: Enterprise Funds: G-1 Combining Statement of Net Position N/A G-2 Combining Statement of Revenues, Expenses & Changes in Fund Net Position N/A G-3 Combining Statement of Cash Flows N/A Internal Service Funds: G-4 Combining Statement of Net Position N/A G-5 Combining Statement of Revenues, Expenses & Changes in Fund Net Position N/A G-6 Combining Statement of Cash Flows N/A H. Fiduciary Funds: H-1 Combining Statement of Fiduciary Net Position 97 H-2 Combining Statement of Changes in Fiduciary Net Position N/A H-3 Student Activity Agency Fund Schedule of Receipts & Disbursements 98 H-4 Payroll Agency Fund Schedule of Receipts & Disbursements 99 I. Long-Term Debt: I-1 Schedule of Serial Bonds 103 I-2 Schedule of Obligations Under Capital Leases 104 I-3 Debt Service Fund Budgetary Comparison Schedule 105 STATISTICAL SECTION (unaudited) Financial Trends: J-1 Net Position by Component 109 J-2 Changes in Net Position 110 J-3 Fund Balances - Governmental Funds 112 J-4 Changes in Fund Balance - Governmental Funds 113 J-5 Other Local Revenue by Source - General Fund 114

7 TABLE OF CONTENTS PAGE Revenue Capacity: J-6 Assessed Value & Estimated Actual Value of Taxable Property 115 J-7 Direct & Overlapping Property Tax Rates 116 J-8 Principal Property Taxpayers 117 J-9 Property Tax Levies & Collections 118 Debt Capacity: J-10 Ratios of Outstanding Debt by Type 119 J-11 Ratios of General Bonded Debt Outstanding 120 J-12 Direct & Overlapping Governmental Activities Debt 121 J-13 Legal Debt Margin Information 122 Demographic & Economic Information: J-14 Demographic & Economic Statistics 123 J-15 Principal Employers 124 Operating Information: J-16 Full-Time Equivalent District Employees by Function/Program 125 J-17 Operating Statistics 126 J-18 School Building Information 127 J-19 Schedule of Required Maintenance 128 J-20 Insurance Schedule 129 SINGLE AUDIT SECTION K-1 Independent Auditors' Report on Compliance and on Internal Control Over Financial Reporting and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 133 K-2 Independent Auditors' Report on Compliance for Each Major State Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of State Financial Assistance Required by New Jersey OMB Circular K-3 Schedule of Expenditures of Federal Awards, Schedule A N/A K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 139 K-5 Notes to Schedules of Awards and Financial Assistance 141 K-6 Schedule of Findings & Questioned Costs 143 K-7 Summary Schedule of Prior Audit Findings 145

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9 INTRODUCTORY SECTION

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12 ROOSEVELT BOARD OF EDUCATION ORGANIZATIONAL CHART ROOSEVELT BOARD OF EDUCATION SUPERINTENDENT SCHOOL BUSINESS ADMINISTRATOR/ BOARD SECRETARY PRINCIPAL INSTRUCTIONAL STAFF BUSINESS STAFF 2

13 ROOSEVELT SCHOOL DISTRICT Roosevelt, New Jersey ROSTER OF OFFICIALS JUNE 30, 2014 MEMBERS OF THE BOARD OF EDUCATION TERM EXPIRES Natalie Warner, President 2015 Assenka Oksiloff, Vice President 2014 Gabrielle Balon 2016 Richard Pressler 2016 Kelly Yang 2016 Leo Gordon 2015 Stacey O'Donnell 2015 Kenneth LeCompte 2014 Seth Ditchik 2014 OTHER OFFICIALS Mrs. Theresa Hamilton, Interim Superintendent of Schools/Principal (07/01/13-10/31/13) Mrs. Mary Robinson Cohen, Superintendent of Schools/Principal (11/01/13-06/30/14) Bernard Biesiada, School Business Administrator/Board Secretary George Lang, Treasurer of School Monies David Rubin, Solicitor 3

14 ROOSEVELT SCHOOL DISTRICT ROOSEVELT, NEW JERSEY CONSULTANTS AND ADVISORS June 30, 2014 AUDITOR/AUDIT FIRM Robert W. Allison, CPA, RMA, PSA Holman Frenia Allison, P. C. 912 Highway 33, Suite 2 Freehold, New Jersey ATTORNEY David Rubin, P.C. Attorney at Law 44 Bridge Street, P.O. Box 4579 Metuchen, NJ New Jersey OFFICIAL DEPOSITORY TD Bank 2059 Springdale Raod Cherry Hill, New Jersey

15 FINANCIAL SECTION 5

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17 INDEPENDENT AUDITOR S REPORT Honorable President and Members of the Board of Education Roosevelt School District Roosevelt, New Jersey Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the Roosevelt School District, County of Monmouth, State of New Jersey, as of and for the fiscal year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the District s basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud 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 of America; the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States; and audit requirements as prescribed by the Office of School Finance, Department of Education, State of New Jersey. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from 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 District 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 District 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. 7

18 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Roosevelt School District, County of Monmouth, State of New Jersey, as of June 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management s discussion and analysis and budgetary comparison information as presented in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic 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 Roosevelt School District s basic financial statements. The accompanying introductory section, comparative totals for June 30, 2013, and other supplementary information such as the combining and individual fund financial statements, long-term debt schedules and statistical information are presented for purposes of additional analysis and are not a required part of the financial statements. The accompanying Schedule of State Financial Assistance are presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and New Jersey OMB s Circular 04-04, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid respectively, and is also not a required part of the financial statements. The combining and individual fund financial statements, long-term debt schedules and the accompanying Schedule of Financial Assistance 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. 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 other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements, long-term debt schedules and the accompanying Schedule of State 8

19 Financial Assistance are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section, comparative totals for June 30, 2013, and statistical information have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 01, 2014 on our consideration of the Roosevelt School District s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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 Roosevelt School District s internal control over financial reporting and compliance. Respectfully Submitted, HOLMAN FRENIA ALLISON, P.C. Robert W. Allison Certified Public Accountant Public School Accountant, No. 897 Freehold, New Jersey December 01,

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21 REQUIRED SUPPLEMENTARY INFORMATION - PART I Management's Discussion and Analysis 11

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23 ROOSEVELT SCHOOL DISTRICT ROOSEVELT, NEW JERSEY MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 UNAUDITED The discussion and analysis of Roosevelt School District s financial performance provides an overall review of the School District s financial activities for the fiscal year ended June 30, The intent of this discussion and analysis is to look at the School District s financial performance as a whole; readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District s financial performance. Financial Highlights Key financial highlights for 2014 are as follows: General revenues accounted for $2,689,664 in revenue or percent of all revenues. Program specific revenues in the form of charges for services and operating grants and contributions accounted for $79,694 or 2.88 percent of total revenues of $2,769,358. Total assets of governmental activities increased by $222,534. The School District had $2,487, in expenses; only $79,694 of these expenses were offset by program specific charges for services, grants or contributions. General revenues (primarily property taxes) of $2,689,664 were adequate to provide for these programs. The General Fund had $2,642,101 in revenues and $2,395,405 in expenditures and transfers. The General Fund s balance increased $246,696 over Using this Comprehensive Annual Financial Report (CAFR) This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand Roosevelt School District 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 Statement of Activities provide information about the activities of the whole School District, presenting both an aggregate view of the School District s finances and a longerterm 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. In the case of Roosevelt School District, the General Fund is by far the most significant fund. 13

24 Reporting the School 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 School District to provide programs and activities, the view of the School District as a whole looks at all financial transactions and asks the question, How did we do financially during 2014? The Statement of Net Position and the Statement of Activities helps 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 School District s Net Position and changes in those assets. This change in Net Position is important because it tells the reader that, for the School District as a whole, the financial positions of the School District has improved or diminished. The causes of this change may be the result of many factors, some financial, and some not. Non-financial factors include the School District s property tax base, current laws in New Jersey restricting revenue growth, facility condition, required educational programs and other factors. In the Statement of Net Position and the Statement of Activities, the School District is divided into two distinct kinds of activities: Governmental Activities All of the School District s programs and services are reported here including, but not limited to, instruction, support services, operation and maintenance of plant facilities, pupil transportation and extracurricular activities. Business-Type Activities This service is provided on a charge for goods or services basis to recover all the expense of the goods or services provided. The Food Service enterprise fund is reported as a business activity. Reporting the School District s Most Significant Funds Fund Financial Statements The analysis of the School District s major (all) funds is included in the Comprehensive Annual Financial Report as presented by the School District. Fund financial reports provide detailed information about the School District s major funds. The School District uses many funds to account for a multitude of financial transactions. However, these fund financial statements focus on the School District s most significant funds. The School District s major governmental funds are the General Fund, Special Revenue Fund, Capital Projects Fund and Debt Service Fund. Governmental Funds The School 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 years. 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 School District s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the financial statements. 14

25 Enterprise Fund The Enterprise Fund uses the same basis of accounting as business-type activities; therefore, these statements are essentially the same. The School District as a Whole Recall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary comparison of the School District s Net Position for 2013 and Table 1 Net Position Assets: Cash and Cash Equivalents $ 268, $ 42, Receivables, Net 60, , Restricted Assets: Cash and Cash Equivalents 63, , Capital Assets, Net 867, , Total Assets 1,260, ,038, Liabilities: Accounts Payable 63, , Cash Deficit Unearned Revenue Noncurrent Liabilities: Due Within One Year 5, , Due Beyond One Year 27, , Total Liabilities 97, , Net Position: Net Investment in Capital Assets 847, , Restricted for: Debt Service Other Purposes 120, , General Fund 41, Unrestricted 153, (9,234.51) Total Net Position $ 1,163, $ 881,

26 Table 2 provides a comparison analysis of District-wide changes in Net Position from fiscal years 2013 and Table 2 Changes in Net Position Revenues Program Revenues: Charges for Services $ 34,497 $ 64,077 Operating Grants and Contributions 47, ,821 General Revenues: Property Taxes 1,559,624 1,502,653 Grants and Entitlements 1,100, ,762 Other 29,160 70,039 Total Revenues 2,771,770 2,561,352 Program Expenses Instruction 809, ,317 Support Services: Pupils and Instructional Staff 801, ,182 General Administration, School Administration, Business Operations and Maintenance of Facilities 337, ,572 Pupil Transportation 130, ,884 Employee Benefits 354, ,215 Unallocated Depreciation and Amortization 51,085 46,972 Interest on Debt 1,132 4,882 Loss on Disposal of Asset 3,094 Food Service 2,981 5,907 Total Expenses 2,490,012 2,737,931 Increase/(Decrease) in Net Position $ 281,758 $ (176,579) Governmental Activities Property taxes made up percent of revenues for governmental activities for the Roosevelt School District for fiscal year The School District s total revenues were $2,769,645 for the fiscal year ended June 30, Federal, state and local grants accounted for another percent. The total cost of all program and services was $2,522,663. Instruction comprises percent of School District expenses. 16

27 Revenues for the School District s business-type activities (food service program) were comprised of charges for services. The District did not participate in a child nutrition program during the year. Food service expenses exceeded revenues by $856. Charges for services represent $2,125 of revenue. This represents amount paid by patrons for daily food services. Governmental Activities The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. The net cost shows the financial burden that was placed on the School District s taxpayers by each of these functions. Table 3 Governmental Activities Total Cost of Net Cost of Total Cost of Net Cost of Services Services Services Services Instruction $ 809,069 $ 729,374 $ 840,317 $ 737,162 Support Services: Pupils & Instructional Staff 801, , , ,182 General Administration, School Administration, Business Operations and Maintenance of Facilities 337, , , ,572 Pupil Transportation 130, , , ,220 Employee Benefits 354, , , ,215 Unallocated Depreciation and Amortization 51,085 51,085 46,972 46,972 Interest and Other Fiscal Charges 4,227 4,227 4,882 4,882 Total Expenses $ 2,487,032 $ 2,407,337 $ 2,732,024 $ 2,562,205 Instruction expenses include activities directly dealing with the teaching of pupils and the interaction between teacher and student, including extracurricular activities. Pupils and instructional staff include the activities involved with assisting staff with the content and process of teaching to students, including curriculum and staff development. General administration, school administration and business include expenses associated with administrative and financial supervision of the School District. Operation and maintenance of facilities activities involve keeping the school grounds, buildings and equipment in an effective working condition. Curriculum and staff development includes expenses related to planning, research, development and evaluation of support services, as well as the reporting of this information internally and to the public. 17

28 Pupil transportation includes activities involved with the conveyance of students to and from school, as well as to and from school activities, as provided by state law. Extracurricular activities includes expenses related to student activities provided by the School District which are designed to provide opportunities for students to participate in school events, public events, or a combination of these for the purposes of motivation, enjoyment and skill improvement. Interest and fiscal charges involve the transactions associated with the payment of interest and other related charges to debt of the School District. Other includes unallocated depreciation and amortization. The School District s Funds Information about the School District s major funds is included in the Comprehensive Annual Financial Report as presented by the School District. These funds are accounted for using the modified accrual basis of accounting. All governmental funds (i.e., General Fund, Special Revenue Fund, Capital Projects and Debt Service Fund presented in the fund-based statements) had total revenues and of $2,769,645 and expenditures of $2,522,950. The net positive/(negative) change in fund balance for the year was most significant in the General Fund, an increase of $246,695. As demonstrated by the various statements and schedules included in the financial section of this report, the School District continues to meet its responsibility for sound financial management. The following schedule presents a summary of the revenues of the governmental funds (excluding capital projects) for the fiscal year ended June 30, 2014, and the amount and percentage of increases and decreases in relation to prior-year revenues. Increase/ Percent of Percent of (Decrease) Increase/ Revenue Amount Total From 2012/13 (Decrease) Local Sources $ 1,621, % $ (12,210) -0.75% State Sources 1,100, % 218, % Federal Sources 47, % 5, % Total $ 2,769, % $ 211, % The decrease in Local Sources is attributed to a decrease in tuition revenue. The increase in State Sources is due to an increase in State aid. The increase in Federal Sources is due to a slight increase in grant funding. 18

29 The following schedule presents a summary of General Fund, Special Revenue Fund and Debt Service Fund expenditures for the fiscal year ended June 30, Increase/ Percent Percent (Decrease) Increase/ Exependitures Amount of Total From 2012/13 (Decrease) Current: Instruction $ 809, % $ (31,248) -3.72% Undistributed Expenditures 1,622, % (220,476) % Captial Outlay 10, % (52,116) % Debt Service: Principal 78, % 3, % Interest 2, % (4,361) % Total $ 2,522, % $ (305,201) % The decrease in Current - Instruction is attributed to a decrease in staffing. The decrease in Current - Undistributed Expenditures is attributed to a shared service agreement with Millstone Township School District for business and grounds oversight. The decrease in Capital Outlay is attributed to a mold remediation project in FY General Fund Budgeting Highlights The School District s budget is prepared according to New Jersey law, and is based on accounting for certain transactions on a basis of modified accrual and encumbrance accounting. The most significant budgeted fund is the General Fund. During the course of the fiscal year 2014, the School District amended its General Fund budget as needed. The School District uses program-based budgeting and the budgeting systems are designed to tightly control total program budgets but provide flexibility for program management. Staffing changes based on student needs. Additional costs for student transportation both in regular education and special education. Accounting changes in maintenance and operations. Changes in appropriations to prevent budget overruns. While the School District s final budget for the General Fund anticipated that revenues and expenditures would roughly equal, the actual results for the year show a $246, increase in surplus funds for a total unrestricted free balance (GAAP) of $153, at June 30,

30 Capital Assets At the end of the fiscal year 2014, the School District had $867,271 invested in land, buildings, and machinery and equipment. Table 4 Capital Assets (Net of Depreciation) at June 30, 2014 and Land $ 57,843 $ 57,843 Site Improvements 10,187 8,340 Buidling and Improvements 741, ,152 Machinery and Equipment 58,174 64,315 Total $ 867,271 $ 911,650 Debt Administration At June 30, 2014, the School District had $32,727 as outstanding debt. Of this amount, $13,076 is for compensated absences, and $19,651 is for Capital Leases. For the Future The Roosevelt Public School District is committed to providing an excellent academic program in a safe, well-maintained building and grounds. The future plans that need to be addressed are: Capital projects for roof, stucco and drainage repair. The area of technology will continued to be explored in order to meet the needs of students needs as well as projected standardized assessment via the internet. Declining enrollment. These areas will be consistently considered as the district proceeds for optimal education with upgrades to the building and grounds when appropriate and fiscally possible. Contacting the School District s Financial Management This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District s finances and to show the School District s accountability for the money it receives. If you have questions about this report or need additional information, please contact the School Business Administrator/Board Secretary at Roosevelt Board of Education, School Lane, PO Box 160, Roosevelt, NJ

31 BASIC FINANCIAL STATEMENTS 21

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33 A. District-Wide Financial Statements 23

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35 ROOSEVELT SCHOOL DISTRICT STATEMENT OF NET POSITION June 30, 2014 EXHIBIT A-1 Total Governmental Business -Type June 30, Activities Activities 2014 Assets: Cash and Cash Equivalents $ 268, $ - $ 268, Receivables, Net 60, , Interfund Receivable (287.81) Restricted Assets: Cash and Cash Equivalents 63, , Capital Assets, Net (Note 5) 867, , Total Assets 1,260, ,260, Liabilities: Cash Deficit Accounts Payable 63, , Payable to State Government Unearned Revenue Noncurrent Liabilities (Note 6): Due Within One Year 5, , Due Beyond One Year 27, , Total Liabilities 97, , Net Position: Net Investment in Capital Assets 847, , Restricted for: Debt Service Other Purposes 120, , General Fund 41, , Unrestricted 153, , Total Net Position $ 1,163, $ - $ 1,163, The accompanying Notes to Basic Financial Statements are an integral part of this statement. 25

36 ROOSEVELT SCHOOL DISTRICT STATEMENT OF ACTIVITIES For the fiscal year ended June 30, 2014 EXHIBIT A-2 Net (Expense) Revenue Program Revenues and Changes in Net Position Operating Total Charges for Grants and Governmental Business-Type June 30, Functions/Programs Expenses Services Contributions Activities Activities 2014 GOVERNMENTAL ACTIVITIES Instruction: Regular $ 736, $ 32, $ 47, $ (657,086.31) $ - $ (657,086.31) Special Education 72, (72,288.51) - (72,288.51) Other Instruction Support Services: Tuition 618, (618,575.68) - (618,575.68) Student and Instruction Related Services 182, (182,932.50) - (182,932.50) General Administrative Services 52, (52,317.93) - (52,317.93) School Administrative Services 15, (15,968.00) - (15,968.00) Central Services 83, (83,531.97) - (83,531.97) Administrative Information Technology Plant Operations and Maintenance 185, (185,297.47) - (185,297.47) Pupil Transportation 130, (130,012.73) - (130,012.73) Employee Benefits 354, (354,015.43) - (354,015.43) Long-Term Debt Expense 1, (1,132.32) - (1,132.32) Loss on Disposal of Assets 3, (3,093.44) - (3,093.44) Unallocated Depreciation and Amortization 51, (51,085.00) - (51,085.00) Total Government Activities 2,487, , , (2,407,337.29) - (2,407,337.29) BUSINESS-TYPE ACTIVITIES Food Service 2, , (568.23) (568.23) Total Business-Type Activities 2, , (568.23) (568.23) Total Primary Government $ 2,490, $ 34, $ 47, $ (2,407,337.29) $ (568.23) $ (2,407,905.52) GENERAL REVENUES Property Taxes Levied for: General Purposes $ 1,501, $ - $ 1,501, Debt Service 57, , Federal and State Aid Not Restricted 1,100, ,100, Investment Earnings - - Miscellaneous Income 29, , Total General Revenues 2,689, ,689, Change in Net Position 282, (568.23) 281, Net Position - Beginning 880, , Net Position - Ending $ 1,163, $ - $ 1,163, The accompanying Notes to Basic Financial Statements are an integral part of this statement. 26

37 B. Fund Financial Statements 27

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39 Governmental Funds 29

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41 ROOSEVELT SCHOOL DISTRICT BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2014 (With Comparative Totals for June 30, 2013) EXHIBIT B-1 Totals Special Debt (Memorandum Only) General Revenue Service June 30, June 30, Fund Fund Fund Assets: Cash and Cash Equivalents $ 306, $ - $ 1.00 $ 306, $ 59, Due From Other Funds 22, , , Intergovernmental Receivables , , , Restricted Cash 63, , , Total Assets 392, , , , Liabilities and Fund Balances: Liabilities: Cash Deficit - 37, , , Interfunds Payable , , , Accounts Payable 63, , , Unearned Revenue Total Liabilities 64, , , , Fund Balances: Restricted: Reserved Excess Surplus: Current Excess Surplus 41, , Capital Reserve 81, , , Maintenance Reserve 32, , , Debt Service Assigned: Other Purpose - Year-end Encumbrances 20, , , Unassigned 153, , Total Fund Balances 328, , , Total Liabilities and Fund Balances $ 392, $ 60, $ 1.00 Amounts reported for governmental activities in the statement of Net Position (A-1) are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. The cost of the assets is $1,943, and the accumulated depreciation is $1,076, (Note 5). $ 867, , Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the fund (Note 9). Serial Bonds Payable - (78,000.00) Compensated Absences (13,075.67) (8,275.00) PA System Lease (19,651.13) (24,528.41) Accrued interest on long-term liabilities are not reported as liabilities in the Fund. - (1,932.68) Net Position of Governmental Activities $ 1,163, $ 880, The accompanying Notes to Basic Financial Statements are an integral part of this statement. 31

42 ROOSEVELT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the fiscal year ended June 30, 2014 (With Comparative Totals for June 30, 2013) EXHIBIT B-2 Totals Special Debt (Memorandum Only) General Revenue Service June 30, June 30, Fund Fund Fund Revenues: Local Sources: Local Tax Levy $ 1,501, $ - $ 57, $ 1,559, $ 1,502, Tuition Charges 32, , , Miscellaneous 29, , , Total - Local Sources 1,563, , ,621, ,633, State Sources 1,078, , ,100, , Federal Sources 47, , , Total Revenues 2,642, , , ,769, ,558, Expenditures: Current: Regular Instruction 691, , , , Special Education Instruction 72, , , Other Instruction , Support Services and Undistributed Costs: Tuition 618, , , Student and Instruction Related Services 181, , , , General Administration 52, , , School Administrative Services 15, , , Central Services 83, , , Administrative Information Technology Plant Operations and Maintenance 190, , , Pupil Transportation 130, , , Employee Benefits 349, , , Debt Service: Principal , , , Interest and Other Charges - - 2, , , Capital Outlay 10, , , Total Expenditures 2,395, , , ,522, ,827, Other Financing Sources/(Uses): Transfer To Food Services - Board Contribution (287.81) - - (287.81) - Total Other Financing Sources/(Uses) (287.81) - - (287.81) - Excess/(Deficiency) of Revenues Over/(Under) Expenditures 246, (1.00) 246, (269,589.04) Fund Balance - July 1 81, , , Fund Balance - June 30 $ 328, $ - $ 1.00 $ 328, $ 81, The accompanying Notes to Basic Financial Statements are an integral part of this statement. 32

43 ROOSEVELT SCHOOL DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the fiscal year ended June 30, 2014 EXHIBIT B-3 Total Net Change in Fund Balances - Governmental Funds (from B-2) $ 246, Amounts reported for governmental activities in the Statement of Activities (A-2) are different because: Capital outlays are reported in governmental funds as expenditures. However, on 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 in the current fiscal year. Depreciation Expense $ (51,085.00) Deletions (3,093.44) Capital Outlay 9, (44,378.44) In the Statement of Activities, certain operating expenses, e.g., compensated absences (vacation and sick pay) are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are reported in the amount of financial resources used (paid). When the earned amount exceeds the paid amount, the difference is a reduction in the reconciliation; when the paid amount exceeds the earned amount, the difference is an addition to the reconciliation. Current Year (13,075.67) Prior Year 8, (4,800.67) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position and is not reported in the Statement of Activities. 78, Repayment of capital leases is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position and is not reported in the Statement of Activities. 4, In the Statement of Activities, interest on long-term debt is accrued, regardless of when due. In the governmental funds, interest is reported when due. The decrease in accrued interest over the previous year is an increase in the reconciliation. 1, Change in Net Position of Governmental Activities $ 282, The accompanying Notes to Basic Financial Statements are an integral part of this statement. 33

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45 Proprietary Funds 35

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47 ROOSEVELT SCHOOL DISTRICT STATEMENT OF FUND NET POSITION PROPRIETARY FUNDS June 30, 2014 (With Comparative Totals for June 30, 2013) EXHIBIT B-4 Totals Business-Type (Memorandum Only) Activities - June 30, June 30, Enterprise Funds Assets: Current Assets: Cash and Cash Equivalents $ - $ - $ Interfund Receivable Intergovernmental Receivables Total Assets $ $ $ Liabilities: Current Liabilities: Cash Deficit Total Liabilities $ $ $ - Net Position: Unrestricted $ - $ - $ Total Net Position $ - $ - $ The accompanying Notes to Basic Financial Statements are an integral part of this statement. 37

48 EXHIBIT B-5 ROOSEVELT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the fiscal year ended June 30, 2014 (With Comparative Totals for June 30, 2013) Business-Type Activities - Totals (Memorandum Only) Enterprise Funds June 30, June 30, Food Service Operating Revenues: Charges for Services: Daily Sales - Non-Reimbursable Programs $ 2, $ 2, $ 3, Total Operating Revenues 2, , , Operating Expenses: Cost of Sales 2, , , Total Operating Expenses 2, , , Operating Loss (856.04) (856.04) (2,791.57) Nonoperating Revenues: Federal Sources/(Uses): Board Contribution Special Milk Program - - 1, Special Milk Prior Year - - (36.08) Total Nonoperating Revenues , Change in Net Position (568.23) (568.23) (1,373.70) Total Net Position - Beginning , Total Net Position - Ending $ - $ - $ The accompanying Notes to Basic Financial Statements are an integral part of this statement. 38

49 ROOSEVELT SCHOOL DISTRICT STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the fiscal year ended June 30, 2014 (With Comparative Totals for June 30, 2013) EXHIBIT B-6 Business-Type Activities - Totals (Memorandum Only) Enterprise Funds June 30, June 30, Food Service Cash Flows From Operating Activities: Receipts From Customers $ 2, $ 2, $ 3, Payments To Suppliers (2,980.63) (2,980.63) (5,906.99) Net Cash Used For Operating Activities (856.04) (856.04) (2,791.57) Cash Flows From Noncapital Financing Activities: Federal Sources , Net Cash Provided By Noncapital Financing Activities , Net Decrease in Cash and Cash Equivalents (618.69) (618.69) (1,603.87) Balance - Beginning of Year , Balance - End of Year $ (287.81) $ (287.81) $ Reconciliation of Operating Loss To Net Cash Used for Operating Activities: Operating Loss $ (856.04) $ (856.04) $ (2,791.57) Net Cash Used for Operating Activities $ (856.04) $ (856.04) $ (2,791.57) The accompanying Notes to Basic Financial Statements are an integral part of this statement. 39

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51 Fiduciary Fund 41

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53 ROOSEVELT SCHOOL DISTRICT STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS June 30, 2014 (With Comparative Totals for June 30, 2013) EXHIBIT B-7 Totals (Memorandum Only) Agency June 30, June 30, Fund Assets: Cash and Cash Equivalents $ 34, $ 34, $ 44, Total Assets $ 34, $ 34, $ 44, Liabilities: Payable To Student Groups $ 6, $ 6, $ 5, Payroll Deductions and Withholdings 27, , , Total Liabilities $ 34, $ 34, $ 44, Total Liabilities and Net Position $ 34, $ 34, $ 44, The accompanying Notes to Basic Financial Statements are an integral part of this statement. 43

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55 ROOSEVELT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS June 30,

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57 ROOSEVELT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2014 Note 1. Summary of Significant Accounting Policies The financial statements of the Roosevelt School District (the District ) have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). The following is a summary of more significant accounting policies. A. Reporting Entity The Roosevelt School District is a Type II district located in the County of Monmouth, State of New Jersey. As a Type II district, the School District functions independently through a Board of Education. The Board is comprised of nine members appointed to three-year terms. These terms are staggered so that three members terms expire each year. The District provides a full range of educational services appropriate to grade levels PreK through 6. These include regular, vocational, as well as special education for handicapped youngsters. The Roosevelt School District has an approximate enrollment at June 30, 2014 of 94 students B. Component Units The primary criterion for including activities within the District s reporting entity as a component unit, as set forth in Section 2100 of the GASB Codification of Governmental Accounting and Financial Reporting Standards, is whether: the organization is legally separate (can sue or be sued in their own name) the District holds the corporate powers of the organization the District appoints a voting majority of the organization s board the District is able to impose its will on the organization the organization has the potential to impose a financial benefit/burden on the District there is a fiscal dependency by the organization on the District Based on the aforementioned criteria, the District has no component units. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation District-Wide Financial Statements The governmental fund 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. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental Fund Financial Statements The 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 year-end. Principal revenue sources considered susceptible to accrual include federal and state grants, interest on investments, tuition and 47

58 ROOSEVELT SCHOOL DISTRICT NOTES TO THE FINANCIAL STATEMENTS (continued): FOR THE YEAR ENDED JUNE 30, 2014 Note 1. Summary of Significant Accounting Policies (continued) transportation. Other revenues are considered to be measurable and available only when cash is received by the state. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. D. District-Wide and Fund Financial Statements The district-wide financial statements (the statement of net position and the statement of activities) report information of all of the non-fiduciary activities of the District. For the most part, the effect of interfund activity has been removed from these district-wide statements. District activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function, segment or component unit are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function, segment, or component unit. Program revenues include charges to customers who purchase, use or directly benefit from goods or services provided by a given function, segment or component unit. Program revenues also include grants and contributions that are restricted to meeting the operational or capital requirements of a particular function, segment, or component unit. Taxes and other items not properly included among program revenues are reported instead as general revenues. The District does not allocate general government (indirect) expenses to other functions. Net position is restricted when constraints placed on them are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally it is the District s policy to use restricted resources first, and then unrestricted resources as they are needed. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds. However, the fiduciary funds are not included in the district-wide statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. E. Fund Accounting The accounts of the Roosevelt School District are maintained in accordance with the principles of fund accounting to ensure observance of limitations and restrictions on the resources available. The principles of fund accounting require that resources be classified for accounting and reporting purposes into funds or account groups in accordance with activities or objectives specified for the resources. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. The various funds and accounts are grouped, in the financial statements in this report, into seven fund types within three broad fund categories and two account groups as follows: 48