PERSHING COUNTY SCHOOL DISTRICT, NEVADA

Transcription

1 PERSHING COUNTY SCHOOL DISTRICT, NEVADA FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2017

2 June 30, 2017 FINANCIAL SECTION TABLE OF CONTENTS Page Independent Auditor's Report 1-3 Management s Discussion and Analysis 4-14 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 15 Statement of Activities 16 Fund Financial Statements Governmental Funds: Balance Sheet 17 Reconciliation of the Governmental Funds Balance Sheet To the Statement of Net Position 18 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds 19 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Government Funds to the Statement of Activities 20 Statements of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General and Major Special Revenue Funds: General Fund Special Education Fund 26 Federal Grants Fund State Grants Fund Fiduciary Funds: Statement of Fiduciary Net Position 34 Statement of Changes in Fiduciary Net Position 35 Notes to Financial Statements Required Supplementary Information Schedules of Other Post-Employment Benefits Funding Progress and Employer Contributions 62 Schedule of The District s Proportionate Share of The Net Pension Liability Nevada Public Employees Retirement System 63

3 June 30, 2017 Supplementary Information TABLE OF CONTENTS Page Combining and Individual Fund Financial Statements and Schedules Major Capital and Debt Service Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance Budget and Actual: Debt Service Fund 64 Capital Bonds Fund Non-Major Governmental Funds: Combining Balance Sheet 67 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 68 Schedules of Revenues, Expenditures and Changes in Fund Balance Budget and Actual: Class Size Reduction Fund 69 Adult Education Fund 70 Federal School Lunch Program Fund 71 Fiduciary Fund Detail Information: Student Scholarship Payment Fund: Schedule of Revenues, Expenditures and Changes in Net Assets Budget and Actual 72 Associated Student Activity Funds: Schedule of Changes in Assets and Liabilities 73 Combining and Individual Grants Funds Financial Schedules Federal Grants Fund: Combining Schedule of Revenues, Expenditures and Changes in Fund Balances By Grant Schedules of Revenues, Expenditures and Changes in Balance Budget and Actual: Small Rural Schools Grant 76 School Climate Transformation Grant 77 Carl Perkins Basic Grant 78 Fresh Fruit and Vegetables Grant 79 Gear-Up Program Grant 80 Title I, Part A - Basic Education Grant 81 Title I - Focus Schools Grant 82 Title I, Part C - Migrant Education Grant 83 Now is the Time Project Aware Grant 84 Title IIA Teacher/Principal Training Grant 85 IDEA Part B - Local Plan Grant 86 IDEA Part B - Early Childhood Flow-through Grant 87 IDEA Part B Special Projects Grant 88

4 June 30, 2017 TABLE OF CONTENTS Page Library Services and Technology Grant 89 Child Nutrition Discretionary Grant 90 Nevada School Emergency Management Grant 91 Program for Neglected and Delinquent Youth Grant 92 State Grants Fund: Combining Schedule of Revenues, Expenditures and Changes in Fund Balances By Grant Schedules of Revenues, Expenditures and Changes in Fund Balance Budget and Actual: Career and Technical Education Allocation Grant 95 Teacher Supplies Reimbursement Grant 96 Family Resource Center Grant 97 Full-Day Kindergarten Program Grant 98 Gifted and Talented Grant 99 Early Childhood Preschool Grant 100 Elementary English Language Learners Grant 101 Library Books Grant 102 Substance Abuse Prevention Grant 103 School Lunch Program Matching Grant 104 Education Technology Nevada Ready Grant 105 School Counselor 5% Extra Grant 106 Nevada Humanities Grant 107 Read by Grade 3 Grant 108 Elementary Counselor Grant 109 Safe and Healthy Students Grant 110 Turn Around Grant 111 Breakfast After the Bell Grant 112 Other Information Section (Unaudited) Ten Year Trend Schedules: Government-Wide Net Positions (Four year s information available) 113 General Fund - Budget Basis - Fund Balances 114 General Fund - Budget Basis - Revenues, Expenditures, and Fund Balances 115 Special Education Fund - Expenditures 116 Debt Service Fund - Fund Balances 117 Statewide Average and Overlapping Tax Rates 118 Student Population 119 Assessed Valuation 120 Statutory Debt Capacity 121 General Fund: Major Revenue Sources 122 Expenditures by Function 123 Expenditures by Object 124

5 June 30, 2017 TABLE OF CONTENTS Page COMPLIANCE SECTION 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 Independent Auditor s Report on Compliance That Could Have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards 131 Schedule of Findings and Questioned Costs Status of Prior Year Findings and Questioned Costs 134 Independent Accountant s Report on Nevada Revised Statutes Chapter INDEPENDENT AUDITOR'S COMMENTS Prior Year Recommendations 136 Current Year Recommendations 136

6 A Professional Corporation INDEPENDENT AUDITOR'S REPORT To the Honorable Board of Trustees Pershing County School District, Nevada 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 Pershing County School District, Nevada, as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the District s basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of 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 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 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 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. 513 W. Bridge St., Ste. G, Yerington, NV (o) (f) Sciarani.com -1-

7 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 the Pershing County School District, Nevada, as of June 30, 2017, and the respective changes in financial position and, the respective budgetary comparison for the General Fund, Special Education Fund, Federal Grants Fund, and State Grants Fund 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 schedules presenting information relating to other post-employment benefits and the District s proportionate share of the net pension liability, on pages 4-14 and 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. Prior-Year Comparative Information We have previously audited the District s 2016 financial statements, and we expressed unmodified audit opinions on the respective financial statements of the governmental activities, each major fund, and the aggregate remaining fund information in our report dated October 26, In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2016, is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Pershing County School District, Nevada s basic financial statements. The budgetary comparison financial statements for major capital and debt service funds, combining and individual nonmajor fund financial statements, and combining and individual grant financial statements, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. The budgetary comparison schedules for major capital and debt service funds, combining and individual nonmajor fund financial statements and schedules, combining and individual grant financial schedules and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic -2-

8 financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, budgetary comparison schedules for major capital and debt service funds, combining and individual nonmajor fund financial statements and schedules, combining and individual grant financial schedules and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. The schedules and other information listed in the Other Information Section of the table of contents and the Status of Prior Year Findings and Questioned Costs included in the Compliance Section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an 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 October 20, 2017, on our consideration of the Pershing County School District, Nevada 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 Pershing County School District, Nevada s internal control over financial reporting and compliance. Yerington, Nevada October 20,

9 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 As financial management of Pershing County School District (the District ), we offer the readers of these financial statements this narrative overview and analysis of the financial activities of the District for fiscal year ended June 30, This discussion and analysis is designed to assist the reader in focusing on the significant financial issues, provide an overview of the District s financial activities, identity any significant changes in financial position, and to identify individual issues and concerns. We encourage readers to consider the information presented herein in conjunction with the financial statements and notes to gain a more complete picture of the information presented. Financial Highlights Net position increased by $29,578 to $3,536,070 from $3,506,492 at the beginning of the year. This increase in net position includes depreciation expense of $642,837. Capital assets before depreciation increased $510,685 during the year. There were additions of $673,908 offset by disposals of fully depreciated vehicles with original costs totaling $163,223. The primary additions were paving projects, transportation s pole barn, a fiber optics connection, and several vehicles and other equipment. Engineering costs associated with a major track and field project in the amount of $44,613 is reported as construction in progress at year end. Governmental fund revenues totaled $12,465,622 in year 2017, a decrease of $673,648 from fiscal year 2016 revenues of $13,139,270. The $559,035 reduction in net proceeds of mines in the General Fund and Debt Service Fund accounts for most of the decrease. The private grants and donations associated with the library improvements recognized in 2016 accounted for the balance. Federal and state sources accounted for 65.3% of total revenues, up from 64.04% in The District s primary revenue sources are ad valorem taxes, local school support tax, net proceeds of minerals, state basic student support (DSA), and federal and state grants. These revenue sources comprise the majority of total revenues. Ad valorem taxes, excluding net proceeds of mines, in the General Fund were $1,743,998 and increased 7.3% from the preceding year. As mentioned above, the General Fund s net proceeds of mines revenue dropped from $369,447 in 2016 to just $4,848 in The net proceeds of mines revenue are very volatile as demonstrated by deficit revenues in 2015 of $57,206 (refund of prior years taxes), preceded by revenues of $362,777 in 2014 and $1,494,124 in Federal and state funding comprised $4,214,971 or 57.2% of total general fund revenues. It also provides $3,925,263 in categorical funding accounted for in the District s special revenue funds and provides funding for programs the District would not have the resources to fund locally. -4-

10 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 The District s total governmental expenditures increased $308,538 to $12,651,890 for fiscal year 2017 compared to $12,343,352 in Most increases were related to programs funded with state categorical grants which increased $289,214. The cost of capital projects referred to previously also accounted for some of the increase. The District had a decrease in debt service expenditures as a lease-purchase contract matured in The General Fund is the largest individual fund and had expenditures of $7,091,269 compared to $7,425,581 in fiscal year 2016 and 56% of total District expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the District s financial statements, which are comprised of the basic financial statements and the notes to the financial statements. The notes provide additional information that is essential to full understanding the data provided in the basic financial statements. Government-Wide Financial Statements Government-wide financial statements are designed to provide an overview of the District s financial position by governmental activities, as well as the government as a whole. The Statement of Net Position combines and consolidates all of the District s current financial resources with deferred inflows and outflows of resources, capital assets and long-term obligations. The end result is net position, which is segregated into three components: invested in capital assets, net of related debt; restricted and unrestricted net position. The Statement of Activities is focused on both the gross and net cost of governmental activities. Program revenue, which directly offsets the costs of specific functions, is allocated to those functions, resulting in net expenses for governmental activities. The District s general revenues offset remaining costs resulting in the annual increase or decrease in net position. This statement is intended to summarize for the user s analysis the net cost of various governmental services that are supported by general revenues. Governmental activities reflect the District s basic services on a functional basis. Departments and programs included within those functions are identified in the fund financial statements. Revenue from ad valorem, local school support (sales) tax, net proceeds of minerals, state basic student support (DSA) and federal and state grants support the majority of these services. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objects. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance -5-

11 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 with finance-related legal requirements. Fund financial statements provide detailed information about the District s major funds. Based on restrictions placed on the use of monies, the District has established several funds that account for related revenue sources and expenses. The District s major governmental funds are the General Fund, Special Education Fund, Federal Grants Fund, State Grants Fund, Debt Service Fund, and the Capital Bonds Fund. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities on the governmental-wide financial statements. Most of the District s basic services are reported in these funds that focus on how money flows into and out of the funds and the year-end balances available for spending. These funds are reported on the modified accrual basis of accounting that measures cash and all other financial assets that can be readily converted to cash. The governmental fund statements provide a detailed short-term view of the District s general government operations and the basic services being provided, along with the financial resources available. Because the focus of the governmental funds is narrower than that of the governmentwide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities on the government-wide financial statements. By doing so, readers may better understand the long-term effect of the government s short-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities. The District maintains a number of individual governmental funds. Information is presented separately on the governmental fund balance sheet and on the governmental fund statement of revenues, expenditures, and changes in fund balances for the major funds, which were identified earlier. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data of each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report, thereafter followed by individual fund schedules. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided on the government-wide and fund financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report includes supplementary information which presents combining and individual fund statements and schedules. The District adopts an annual budget for all of its governmental and individual funds. Budgetary comparison schedules have been provided for the General Fund and each -6-

12 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 major special revenue fund to demonstrate compliance with the budget and are presented within the basic financial statements. Budgetary comparison schedules for the debt service and capital projects funds along with each non-major fund are presented as supplementary information. Financial Analysis of the District One of the most important questions asked about the District s finances Is the District as a whole better or worse off as a result of this year s activities? The Statement of Net Position and the Statement of Activities report information about the District s activities in a way that will help answer this question. These two statements report the net position of the District and the changes. One can think of the District s net position the difference between assets, deferred inflow and outflow of resources, and liabilities as one way to measure financial health or financial position. Over time, increases and decreases in the District s net position are one indicator of whether its financial health is improving or deteriorating. However, one will need to consider other non-financial factors such as changes in economic conditions, population growth, and new or changed government legislation. Net Position As noted earlier, net position may serve over time as a useful indicator of a government s financial position. In the case of the District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $3,536,070 as of June 30, A significant component of the District s net position ($9,140,636) is its investment in capital assets (e.g. land, buildings, equipment and vehicles less any related debt used to acquire those assets that are still outstanding). A portion of net position ($3,785,118) is restricted by statute and not available for normal operating costs. Consequently, the resulting unrestricted net position is a deficit $9,389,684. To begin our analysis, a summary of the District s Statement of Net Position is presented in Table 1. Current assets decreased $250,334 while current liabilities decreased $78,487. The resulting $171,847 reduction in net current assets correlates to the $183,558 reduction in total fund balances reported in the statement of revenues, expenditures and changes in fund balances. The two most significant components of this reduction are the deficit spending in the General Fund offset by accumulation of resources in the Capital Bonds Fund. The noncurrent liabilities for employee benefits increased $2,325,692. These benefits include accrued employee leave, liability for retiree health benefits, and the District s proportionate share of Nevada Public Employees Retirement System s net pension liability. The District s net pension liability increased $2,263,219 to $13,228,850 at June 30,

13 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 Table 1 Condensed Statements of Net Position Dollar Percent FY 2017 FY 2016 Change Change Current assets $ 7,102,551 $ 7,352,885 $ (250,334) -3.4% Other assets Capital assets 13,030,636 12,999,565 31, % Total Assets 20,133,187 20,352,450 (219,263) -1.1% Deferred outflows of resources 3,670,169 2,018,735 1,651, % Current Liablities 1,172,404 1,250,891 (78,487) -6.3% Long-term debt 3,890,000 4,184,047 (294,047) -7.0% Noncurrent liabilities for employee benefits 14,238,850 11,913,158 2,325, % Total Liabilities 19,301,254 17,348,096 1,953, % Deferred inflows of resources 966,032 1,516,597 (550,565) -36.3% - Invested in Capital Assets 9,140,636 8,815, , % Restricted Net Position 3,785,118 4,033,225 (248,107) -6.2% Unrestricted Net Position (9,389,684) (9,342,251) (47,433) 0.5% Total Net Position $ 3,536,070 $ 3,506,492 $ 29, % Table 2 Condensed Statements of Activities FY 2017 FY 2016 Revenues: Program Revenues: Charges for services $ 60,986 52,631 Dollar Change Percent Change $ $ 8, % Operating grants 3,111,883 2,743, , % Capital grants 100, ,978 (33,076) -24.7% General revenues: Property taxes 2,690,704 3,052,834 (362,130) -11.9% Local school support taxes 750, ,816 78, % Other taxes & fees 786, ,414 42, % Interest earnings 32,716 11,651 21, % Other local sources 10,094 5,136 4, % Total Local Sources 7,543,858 7,414, , % State aid not restricted for specific purpose 4,777,419 5,631,488 (854,069) -15.2% Federal aid not restricted for specific purpose 160,225 86,775 73, % Total Revenues 12,481,502 13,133,137 (651,635) -5.0% -8-

14 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 Table 2 (Continued) Condensed Statements of Activities Dollar Percent FY 2017 FY 2016 Change Change Expenses: Regular instruction 4,763,877 4,738,997 24, % Special instruction 1,435,113 1,401,877 33, % Vocational instruction 208, ,189 29, % Other programs 156, ,968 4, % Adult education 1,132, , , % Supports Services: Student support 359, ,026 94, % Instructional staff 125, ,622 n/a General administration 230, ,116 1, % School administration 649, ,074 70, % Business administration 680, ,711 54, % Operations & maintenance of plant 1,133,073 1,311,780 (178,707) -13.6% Student transportation 724, ,452 56, % Food services 338, ,701 1, % Interest long-term debt 194, ,086 (12,449) -6.0% Deprection, unallocated 319, ,536 8, % Total Expenses 12,451,924 11,958, , % - Increase in Net Position 29,578 1,174,502 (1,144,924) -97.5% Net Position, Beginnng 3,506,492 2,331,990 1,174, % Net Position, End $ 3,536,070 $ 3,506,492 $ 29, % Governmental Activities While the Statement of Net Position shows the change in financial position, the Statement of Activities provides answers as to the nature and scope of these changes. As seen in Table 2 above, net position increased by $29,578 or.8% for governmental activities in fiscal year The most noteworthy changes in revenues are the increase in operating grants, decrease in property (net proceeds of minerals) taxes, and unrestricted state aid. The change in property taxes has been previously addressed. Increased full-day kindergarten and federal Project Aware grant funding, along with the new Read by Grade 3 state grant, account for much of the increase in operating grant revenue. The most significant change in revenue is the reduction is unrestricted state aid which decreased $854,069. This is attributable to a decrease in per pupil guarantee support from the state distributive school account (DSA) that is explained in Note 12 of this report. The reduction is due to several factors. First, the District received $450,721 more revenue in 2016 than the formula provided due to a hold harmless provision that was not available in Second, the amount of the per pupil guarantee decreased -9-

15 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 from $9,229 in 2016 to $9,079 in Third, actual enrollment decreased students which compounded the impact of the loss of the hold harmless enrollment. Finally, local sales and property tax revenues increased which resulted in a reduction of $191,323 in state support. Changes in expenses are often related to programs for which categorical grant funds are received. Such is the case with student and instructional staff support, which both saw significant increases. Adult education is also funded with categorical state funding which increased in The decrease in operations and maintenance of plant was due to expenditures for non-capital improvements in the Capital Bond Fund in Financial Analysis of the District s Funds As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The focus of the District s governmental funds is to provide information on the near-term inflow, outflow, and balances of spendable resources. Such information is useful in assessing the District s financial requirements. In particular, unreserved fund balance may serve as a useful measure of the District s net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the District s governmental funds reported a combined ending fund balance of $5,908,471 compared to $6,092,029 from the previous year. The General Fund is the chief operating fund of the District and the following is information specific to that fund: General Fund revenues totaled $7,366,859 for 2017 which represented 59.1% of the total revenue for all governmental funds. General Fund revenues decreased 12.6% or $1,061,717 during the 2017 fiscal year. As discussed previously, the change in net proceeds of minerals taxes, prior year library grants/donations, and a significant reduction in state per-pupil funding were primary factors. The following chart presents the primary revenue sources of the District s General Fund. The total year-end fund balance was $2,116,271 and consisted of $4,848 restricted, $1,364,985 assigned, and $746,438 unassigned. The amount represents approximately 27.5% of the total General Fund s expenditures and other financing uses. The District s General Fund s fund balance decreased by $328,700 during the 2017 fiscal year compared to a $298,012 increase for

16 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 The District s General Fund expenditures and transfers out decreased 5.3% from Actual expenditures and transfers decreased by $432,295 to $7,698,269 compared to $8,130,564 in The increase was realized in the regular education program. The following chart presents the primary expenditure categories of all the District s governmental funds. -11-

17 Budgetary Highlights MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 The District s budget is prepared according to Nevada law and is based on generally accepted accounting principles. The District adopts an annual budget following budget workshops and a public hearing. The budget provides proposed expenditures and the means of financing them. The most significant budgeted fund is the General Fund. In summary, the noted differences and explanations are as follows: The General Fund s actual revenues of $7,366,859 exceeded anticipated resources of $7,243,864 by $122,995. The federal impact aid revenue was the major contributor. The General Fund s expenditure appropriations of $8,519,586 exceeded actual expenditures of $7,089,507 by $1,335,715 or 16.8%. All programs and functions came in under budget. Although $720,225 was appropriated as transfers from the General Fund in support other fund operations, actual required transfers were $608,480. The General Fund s budget was amended once during the year. The Debt Service Fund s ending fund balance increased by $33,588 to arrive at a yearend balance of $586,312, and $35,252 under the budgeted amount. $515,563 was appropriated and transferred from the Debt Service Fund to the Capital Bonds Fund for future capital acquisitions and construction. In accordance with NRS , $373,317 of the June 30, 2017 fund balance may be transferred to the Capital Bonds Fund for capital acquisitions or improvements. The Capital Bonds Fund's ending fund balance was $3,193,958 and $308,287 over the anticipated ending fund balance of $2,885,671. Capital Assets and Debt Administration Capital Assets The District s investment in capital assets for its governmental activities as of June 30, 2017 was $13,030,636 net of accumulated depreciation of $16,209,719. This investment in capital assets includes land, buildings, equipment, and transportation vehicles. As noted above, capital assets before deprecation increased $510,685 during the year, while incurring depreciation expense of $642,837. Note 3 (Capital Assets) to the financial statements provides capital asset activity during

18 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 Long-Term Debt - Governmental-Type Activities: Note 4 to the financial statements provides a complete detail listing of all longterm obligations. No new debt was incurred while $294,047 and $197,173 were paid in principal and interest, respectively, during fiscal year 2017 from the General Fund and Debt Service Fund. Economic Factors and Next Year s Budget The Board of Trustees and management of the District consider many factors when setting the fiscal year 2018 budget and school debt tax rate. Some of those factors take into account the local economy and projected student enrollment. Pershing County School District began the school year with 655 students enrolled compared to average daily enrollment for on which state funding is based. The District s enrollment reflects the economic challenges faced throughout the County. A concerted effort is being made by local government entities to entice new business into the county; however, a positive shift in Pershing County s economy is not expected within the next year. Many local jobs are filled by persons commuting from neighboring counties which does not provide local families and enrolled students. Declining student enrollment is a major concern. Although mining operations exist within the District, the net proceeds of minerals tax generated is difficult to predict or rely on as a stable revenue source as described previously. To address the instability of this revenue, the State requires districts not to include estimates of current year tax revenues as resources available for current year appropriations. The District received net proceeds of minerals tax revenue of only $4,848 during 2017 for appropriation in All of these factors were considered in the preparation of the 2018 budget. In conjunction with the current economic factors, the District limited its anticipated spending for 2018, and asked administrators and department heads to limit spending and capital outlay. The District has maintained a standard of limiting appropriations to those anticipated expenditures for the period. This approach has allowed the District to maintain an adequate unreserved fund balance, which will carry resources to benefit necessary services and programs with a goal of minimizing additional burdens to its educational programs. -13-

19 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 Requests for Information This financial report is designed to provide the public with a general overview of the District s finances and to demonstrate the District s accountability for the money it receives. Questions concerning any of the information provided in this report or request for additional financial information should be directed to the Pershing County School District, P.O. Box 389, Lovelock, NV

20 PERSHING COUNTY SCHOOL DISTRICT STATEMENT OF NET POSITION JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2016) Assets Current Assets: Cash and investments - Note 2 $ 6,103,177 $ 6,372,470 Accounts receivable 8,979 1,981 Due from other governments 928, ,834 Taxes receivable 62,065 61,600 Total Current Assets 7,102,551 7,352,885 Noncurrent Assets: Capital assets - Note 3 13,030,636 12,999,565 Total Assets 20,133,187 20,352,450 Deferred Outflows of Resources Deferred pension outflows - Note 7 1,750, ,319 Post measurement date pension contributions 1,919,854 1,857,416 Total Deferred Outflow of Resources 3,670,169 2,018,735

21 Liabilities Current Liabilities: Accounts payable $ 73,103 62,369 Accrued salaries and benefits 1,051,906 1,051,975 Accrued interest payable 38,721 41,257 Due to other governments 7,611 93,360 Private support of future project 1,063 1,930 Current portion of long-term debt 240, ,047 Total Current Liabilities 1,412,404 1,544,938 Noncurrent Liabilities: Long-term debt obligations payable - Note 4 & 5 3,890,000 4,184,047 Accrued employee leave - Note 5 316, ,201 Accrued OPEB liability - Note 8 693, ,326 Net pension liability - Note 7 13,228,850 10,965,631 Less: current portion of long-term obligations (240,000) (294,047) Total Noncurrent Liabilities 17,888,850 15,803,158 Total Liabilities 19,301,254 17,348,096 Deferred Inflows of Resources Deferred pension inflows - Note 7 966,032 1,516,597 Net Position Invested in capital assets, net of related debt 9,140,636 8,815,518 Restricted - Note 11 3,785,118 4,033,225 Unrestricted (deficit) (9,389,684) (9,342,251) Total Net Position $ 3,536,070 $ 3,506,492 The accompanying notes are an integral part of these financial statements. -15-

22 PERSHING COUNTY SCHOOL DISTRICT STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) PROGRAM REVENUE OPERATING CAPITAL CHARGES FOR GRANTS AND GRANTS AND EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS Educational Programs: Regular programs $ 4,763,877 $ - $ 1,067,534 $ - Special programs 1,435, ,531 - Vocational programs 208,323-28,902 - Adult programs 1,132,827-1,196,999 8,017 Other programs 156, Total Programs 7,696,671-2,503,089 8,017 Undistributed: Support Services: Student support 359, ,792 - Instructional staff support 125, ,293 21,092 General administration 230, School administration 649, Central services 680,379-14,183 61,362 Operation and maintenance 1,133,073-4,451 - Student transportation 724, Food services 338,630 60, ,518 10,431 Interest on long-term debt 194,637-32,557 - Depreciation, unallocated 319, Total School District $ 12,451,924 $ 60,986 $ 3,111,883 $ 100,902 Property taxes, levied for general purposes Property taxes, levied for debt services Local school support taxes Taxes for capital acquisition Other taxes and fees Interest earnings Other local sources Gain on property sales State aid not restricted to specific purpose Federal aid not restricted to specific purpose Total General Revenues Change in Net Position Net Position, July 1 Net Position, June 30

23 NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION $ (3,696,343) $ (3,554,669) (1,225,582) (1,220,111) (179,421) (153,005) 72,189 87,870 (156,408) (151,968) (5,185,565) (4,991,883) (103,217) (96,663) 13,763 - (230,964) (229,116) (649,462) (579,074) (604,834) (578,931) (1,128,622) (1,292,266) (724,451) (667,452) (83,695) (108,092) (162,080) (174,599) (319,026) (310,536) (9,178,153) (9,028,612) 1,754,832 1,991, ,872 1,061, , , , , , ,744 32,716 11,651 7,384 5,136 2,710-4,777,419 5,631, ,225 86,775 9,207,731 10,203,114 29,578 1,174,502 3,506,492 2,331,990 $ 3,536,070 $ 3,506,492 The accompanying notes are an integral part of these financial statements. -16-

24 BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2016) SPECIAL FEDERAL STATE GENERAL EDUCATION GRANTS GRANTS FUND FUND FUND FUND Assets Cash and investments - Note 2 $ 2,081,556 $ 207,445 $ - $ 300 Accounts receivable 6, Due from other governments 300, , ,309 Due from other funds - Note 9 409, Taxes receivable, delinquent 40, Total Assets $ 2,838,646 $ 207,445 $ 296,695 $ 281,609 Liabilities Accounts payable $ 53,777 $ 7,818 $ 7,636 $ 2,628 Accrued wages and benefits 629, ,268 63,663 93,912 Due to other governments Due to other funds - Note , ,769 Total Liabilities 682, , , ,609 Deferred Inflow of Resources Unearned grant revenue - - 1,063 - Unavailable taxes receivable 39, Total Deferred Inflows of Resources 39,392-1,063 - Fund Balance - Note 11 Restricted 4, Committed - 9, Assigned 1,364, Unassigned 746, Total Fund Balance 2,116,271 9, Total Liabilities, Deferred Inflow of Resources and Fund Balance $ 2,838,646 $ 207,445 $ 296,695 $ 281,609

25 DEBT CAPITAL OTHER SERVICE BONDS GOVERNMENTAL TOTALS FUND FUND FUNDS $ 575,645 $ 3,175,446 $ 62,785 $ 6,103,177 $ 6,372,470 1, ,979 1,981 8,308 19,830 21, , , , ,128 21, ,065 61,600 $ 607,317 $ 3,195,276 $ 84,665 $ 7,511,653 $ 7,592,013 $ - $ - $ 1,244 $ 73,103 $ 62,369-1,318 73,539 1,051,906 1,051, ,311 7,611 93, , ,128-1,318 82,094 1,541,722 1,446, ,063 1,930 21, ,397 51,222 21, ,460 53, ,312 3,193,958-3,785,118 4,033, ,571 11,930 7, ,364,985 1,399, , , ,312 3,193,958 2,571 5,908,471 6,092,029 $ 607,317 $ 3,195,276 $ 84,665 $ 7,511,653 $ 7,590,083 The accompanying notes are an integral part of these financial statements. -17-

26 This page is intentionally blank.

27 PERSHING COUNTY SCHOOL DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2016) Total Fund Balance - Governmental Funds $ 5,908,471 $ 6,092,029 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental funds are not current financial resources and therefore not reported in the governmental fund financial statements. 29,240,355 28,729,670 Accumulated depreciation has not been included in the governmental fund financial statements. (16,209,719) (15,730,105) Revenue reported as deferred inflow of resources in the governmental fund financial statements is recorded as revenue in the government-wide financial statements. 60,397 51,222 Long-term debt obligations, including bonds payable, are not due and payable in the current period and therefore not reported in the governmental funds. (3,890,000) (4,184,047) Compensated absences are not due and payable in the current period and therefore not reported in the governmental funds. (316,245) (293,201) Post-employment health insurance costs are not due and payable in the current period and therefore not reported in the governmental funds. (693,755) (654,326) Net Pension Liability is not due and payable in the current period and therefore not reported in the governmental funds. (13,228,850) (10,965,631) Deferred pension inflows and outflows of resources represent changes in the net pension liability that are to be amortized over future periods. They will not require current financial resources and are therefore not reported in the governmental funds. 2,704, ,138 Interest is accrued on outstanding debt in the government-wide financial statements, whereas in the governmental fund financial statements an interest expenditure is reported when due. (38,721) (41,257) Net Position of Governmental Activities $ 3,536,070 $ 3,506,492 The accompanying notes are an integral part of these financial statements. -18-

28 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) SPECIAL FEDERAL STATE GENERAL EDUCATION GRANTS GRANTS FUND FUND FUND FUND Revenues Revenues from local sources $ 3,151,888 $ - $ - $ - Revenues from state sources 4,050, , ,475 Revenues from federal sources 164, ,235 - Total Revenues 7,366, , , ,475 Expenditures Regular programs 3,426, , ,945 Special programs - 1,196, , Vocational programs 166,615-9,944 18,958 Adult programs ,937 - Other programs 148, Undistributed Support services Student support 109, ,792 - Instructional staff support , ,287 General administration 226, School administration 597, Central services 603,538-14,183 54,000 Operations and maintenance of plant 1,060,310-1,011 - Student transportation 691,617 43, Operation of non-instructional services Food services , Facilities acquisition/construction Debt service 60, Total Expenditures 7,091,269 1,239, , ,475 Excess (Deficiency) of Revenues over Expenditures 275,590 (512,429) - - Other Financing Sources (Uses) Sale of property 2, Transfers in - Note , Transfers out - Note 10 (607,000) Total Other Financing Sources (Uses) (604,290) 517, Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures and Other Uses (328,700) 4, Fund Balance, July 1 2,444,971 4, Fund Balance, June 30 $ 2,116,271 $ 9,359 $ - $ -

29 DEBT CAPITAL OTHER SERVICE BONDS GOVERNMENTAL TOTALS FUND FUND FUNDS $ 949,283 $ 163,231 $ 60,986 $ 4,325,388 $ 4,730, ,335,027 6,899,921 7,363,017 32, ,694 1,240,313 1,045, , ,231 1,561,707 12,465,622 13,139,270-35, ,230 4,531,126 4,829, ,406,159 1,459, , , ,157,084 1,201,021 1,042, , , , , ,385-1,800 7, , , , ,739-3, , , ,061,321 1,142, , , , , , , , , , , , , ,137 1,651,381 12,651,890 12,343, ,151 (408,906) (89,674) (186,268) 795, , ,563 90,000 1,122,563 1,234,983 (515,563) - - (1,122,563) (1,234,983) (515,563) 515,563 90,000 2,710-33, , (183,558) 795, ,724 3,087,301 2,245 6,092,029 5,296,111 $ 586,312 $ 3,193,958 $ 2,571 $ 5,908,471 $ 6,092,029 The accompanying notes are an integral part of these financial statements. -19-

30 PERSHING COUNTY SCHOOL DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) Net Change in Fund Balances - Total Governmental Funds $ (183,558) $ 795,918 Amounts reported for governmental activities in the statement of activities are different because: Current year capital outlays are expenditures in the governmental fund financial statements, but they are shown as increases in capital assets in the government-wide financial statements. 673, ,365 Depreciation is not recognized as an expense in governmental funds, since it does not require the use of current financial resources. The effect on the current year's deprecation is to decrease net assets. (642,837) (612,047) Revenue from property taxes is deferred in the fund financial statements until they are considered available to finance current expenditures, but such revenues are recognized when assessed in the government-wide financial statements. 9,175 (6,133) Compensated absences are not due and payable in the current period and therefore are not reported in the governmental fund financial statements. (23,044) (62,091) Future health insurance post-employment benefits are reported as expenses in the statement of activities but do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. (39,429) (26,606) Changes in net pension liability resulting from differences in actual and projected earnings, experience and changes in proportionate share do not affect current financial resources and not reported in governmental funds. (61,220) 436,669 Current year long-term debt principal payments are reported as expenditures in the governmental fund financial statements, but are shown as a reduction in long-term debt in the government-wide financial statements. 294, ,861 Interest is accrued on outstanding debt in the government-wide financial statements, whereas in the governmental fund financial statements an interest expenditure is reported when due. 2,536 4,566 Change in Net Position of Governmental Activities $ 29,578 $ 1,174,502 The accompanying notes are an integral part of these financial statements. -20-

31 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) ACTUAL - BUDGETED AMOUNT BUDGETARY ORIGINAL FINAL BASIS VARIANCE 2016 Revenues Revenues from local sources Ad valorem taxes $ 1,840,263 $ 1,840,263 $ 1,743,998 $ (96,265) $ 1,625,567 Net proceeds minerals - - 4,848 4, ,447 Local school support taxes 676, , ,564 73, ,816 Franchise taxes 8,000 8,000 26,745 18,745 27,765 Motor vehicle privilege tax 612, , ,473 (12,928) 564,979 Interest income 3,000 3,000 16,116 13,116 5,423 Private grants and donations - - 2,760 2, ,455 Other revenues Environmental fines ,585 Rent Boat permits - - 1,985 1,985 1,695 Miscellaneous - - 4,799 4, ,140,437 3,140,437 3,151,888 11,451 3,437,588 Revenues from state sources Distributive School Account 4,208,665 4,043,427 4,050,144 6,717 4,904,213 Revenues from federal sources E-rate cost share - - 4,602 4,602 - Impact Aid, P.L ,000 60, , ,225 86,775 60,000 60, , ,827 86,775 Total Revenues 7,409,102 7,243,864 7,366, ,995 8,428,576 Expenditures Regular Programs Instruction Salaries 2,218,000 2,228,000 2,068, ,393 2,120,023 Benefits 1,102,650 1,107, , ,439 1,019,642 Purchased services 162, ,500 8, ,325 5,298 Inter-district tuition ,127 (46,127) 45,644 Supplies 137, ,500 76,669 60, ,087 Other 8,000 8,000 3,977 4,023 4,028 Total Instruction 3,628,650 3,643,650 3,116, ,884 3,298,

32 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) ACTUAL - BUDGETED AMOUNT BUDGETARY ORIGINAL FINAL BASIS VARIANCE 2016 Direct Support - Guidance Salaries $ 82,000 $ 82,000 $ 80,298 $ 1,702 $ 90,540 Benefits 65,000 65,000 57,607 7,393 40,725 Purchased Services 1,000 1,000-1,000 - Supplies 2,000 2,000-2,000 - Total Direct Support - Guidance 150, , ,905 12, ,265 Direct Support - Library Salaries 117, , ,979 6, ,910 Benefits 66,800 66,800 51,575 15,225 50,116 Purchased Services 10,200 10,200-10,200 9,674 Supplies 12,000 12,000 9,047 2,953 19,596 Property ,880 Total Direct Support - Library 206, , ,601 34, ,176 Total Regular Programs 3,985,150 4,000,150 3,426, ,878 3,761,163 Vocational Programs Instruction Salaries 115, , ,269 2,731 97,734 Benefits 66,000 66,000 52,351 13,649 44,199 Purchased Services 1,600 1,600-1,600 - Supplies 2,000 2,000 1, ,268 Total Vocational Programs 184, , ,615 17, ,201 Other Programs Athletics Instrustion Salaries 90,000 90,000 93,598 (3,598) 91,355 Benefits 4,600 4,600 4,723 (123) 4,603 Purchased Services 55,300 55,300 39,403 15,897 33,029 Supplies 5,000 5,000 2,448 2,552 1,662 Other 10,000 10,000 8,730 1,270 9,360 Total Instruction 164, , ,902 15, ,009 Direct Support - Transportation Purchased Services 5,500 5,500-5,500 4,438 Total Other Programs 170, , ,902 21, ,

33 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) ACTUAL - BUDGETED AMOUNT BUDGETARY ORIGINAL FINAL BASIS VARIANCE 2016 Undistributed expenditures: Support Services Student Support Salaries $ 77,000 $ 77,000 $ 74,492 $ 2,508 $ 72,735 Benefits 33,025 33,025 30,627 2,398 30,090 Purchased services 2,490 2,490 1,490 1,000 1,441 Supplies 2,500 2,500 2,773 (273) 4,301 Other Total Student Support 115, , ,402 5, ,567 General Administration Salaries 155, , ,000 15, ,000 Benefits 64,420 64,420 57,639 6,781 54,346 Purchased services 21,000 21,000 19,139 1,861 24,831 Supplies 4,050 4, ,836 5,300 Property 30,000 30,000-30,000 - Other 12,500 12,500 9,317 3,183 11,477 Total General Administration 286, , ,309 60, ,954 School Administration Salaries 437, , ,517 22, ,306 Benefits 197, , ,332 15, ,313 Purchases services 6,000 6, , Supplies 2,500 2, ,391 - Other 1,100 1, Total School Administration 644, , ,973 46, ,739 Central Services Salaries 187, , ,465 38, ,220 Benefits 230, , ,521 54, ,175 Purchases services 319, , ,822 54, ,008 Supplies 81,450 66,450 32,209 34,241 25,415 Property - 15,000 8,631 6,369 - Other 2,500 2,500 5,310 (2,810) 4,114 Inter-fund administration charges - - (48,000) (48,000) - Indirect cost reimbursements (50,000) (15,000) (14,182) 818 (48,633) Total Business Administration 771, , , , ,

34 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) ACTUAL - BUDGETED AMOUNT BUDGETARY ORIGINAL FINAL BASIS VARIANCE 2016 Operation and Maintenance of Plant Salaries $ 425,050 $ 425,050 $ 386,709 $ 38,341 $ 386,236 Benefits 263, , ,166 46, ,610 Purchased Services 284, , ,406 78, ,114 Supplies 351, , , , ,209 Property 5,000 5,000 5,900 (900) - Total Operation and Maintenance of Plant 1,329,350 1,339,350 1,060, ,040 1,105,169 Student Transportation Salaries 328, , ,082 22, ,482 Benefits 159, , ,156 22, ,366 Purchased services 86,500 86,500 55,235 31,265 50,517 Supplies 144, , ,350 38,350 82,829 Property 125, ,000 87,773 37,227 - Other (21) - Total Student Transportation 844, , , , ,194 Total Support Services 3,991,605 4,064,105 3,287, ,354 3,155,922 Facilities Acquisition and Construction: Land Acquisition Property 20,000 20,000-20,000 - Building Acquisition Property 20,000 20,000-20,000 - Total Facilities Acquisition and Construction 40,000 40,000-40,000 - Debt Service Principal 60,331 60,331 59,047 1, ,861 Interest - - 1,284 (1,284) 8,851 Total Debt Service 60,331 60,331 60, ,712 Total Undistributive Expenditures 4,091,936 4,164,436 3,347, ,354 3,376,634 Total Expenditures 8,432,086 8,519,586 7,089,507 1,335,715 7,425,

35 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) ACTUAL - BUDGETED AMOUNT BUDGETARY ORIGINAL FINAL BASIS VARIANCE 2016 Excess (Deficiency) of Revenues over Expenditures $ (1,022,984) $ (1,275,722) $ 277,352 $ 1,553,074 $ 1,003,131 Other Financing Sources (Uses) Sale of property - - 2,710 2,710 - Transfers out: Special Education Fund (606,445) (606,445) (517,000) 89,445 (595,000) School Lunch Fund (109,300) (119,300) (90,000) 29,300 (109,983) Unemployment Fund (5,000) (1,480) (1,480) - - Total Other Financing Sources (Uses) (720,745) (727,225) (605,770) 121,455 (704,983) Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures and Other Financing Uses (1,743,729) (2,002,947) (328,418) 1,674, ,148 Fund Balance, July 1 2,277,547 2,396,451 2,396,451-2,098,303 Fund Balance, June 30 $ 533,818 $ 393,504 2,068,033 $ 1,674,529 2,396,451 RECONCILIATION TO GAAP BASIS The Unemployment Compensation Fund is included within the General Fund for GAAP basis reporting. The following are balances and transactions of that fund. Fund Balance, July 1 45,000 48,520 48,520-48,656 Claims expense (5,000) (1,480) (1,762) (282) (136) Transfers from General Fund 5,000 1,480 1, Fund Balance, June 30 $ 45,000 $ 48,520 48,238 $ (282) 48,520 Fund Balance, June 30 - GAAP Basis $ 2,116,271 $ 2,444,971 The accompanying notes are an integral part of these financial statements. -25-

36 SPECIAL EDUCATION FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Distributive School Fund $ 727,280 $ 727,280 $ 727,275 $ (5) $ 727,275 Total Revenues 727, , ,275 (5) 727,275 Expenditures Special Programs Instruction Salaries 744, , ,391 32, ,804 Benefits 383, , ,597 43, ,252 Purchased services 147, , ,878 12, ,994 Supplies 11,900 11,900 5,762 6,138 8,756 Total Instruction 1,286,425 1,291,213 1,196,628 94,585 1,277,806 Other Direct Support Transportation Salaries 22,000 22,000 21, ,991 Benefits 16,800 16,800 15,560 1,240 16,135 Purchased services 6,500 6,500-6,500 1,146 Inter-district contract services - - 6,120 (6,120) 6,120 Supplies 2,000 2,000-2,000 - Total Direct Support 47,300 47,300 43,076 4,224 44,392 Total Expenditures 1,333,725 1,338,513 1,239,704 98,809 1,322,198 Excess (Deficiency) of Revenues over Expenditures (606,445) (611,233) (512,429) 98,804 (594,923) Other Financing Sources Transfer in from General Fund 606, , ,000 (89,445) 595,000 Excess (Deficiency) of Revenues and Other Sources over Expenditures - (4,788) 4,571 9, Fund Balance, July 1-4,788 4,788-4,711 Fund Balance, June 30 $ - $ - $ 9,359 $ 9,359 $ 4,788 The accompanying notes are an integral part of these financial statements. -26-

37 FEDERAL GRANTS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Revenues Revenues from federal sources Small Rural Schools $ - $ 27,031 $ 27,031 $ - $ 27,031 School Climate Transformation 24,662 16,272 13,399 (2,873) 25,662 Carl Perkins Basic 11,293 9,944 9,944-11,722 Fresh Fruits and Vegetables 17,394 16,601 16,517 (84) 17,023 Gear-Up Program - 60,000 48,920 (11,080) 64,508 Title I, Part A, Basic Education 164, , ,482 (2,533) 173,944 Title I, Focus Schools ,034 Title I, Part C, Migrant Education 9,000 7,000 7,000-9,000 Title I, Part D, Delinquent Education - 53,663 46,182 (7,481) - Project Aware 314, , ,651 (229,461) 167,956 Title IIA, Teacher/Principal Training 47,545 57,489 33,545 (23,944) 22,673 I.D.E.A., Part B 189, , ,024 (23,523) 181,350 LSTA, Library - 19,098 19, National School Lunch, Equipment - 10,449 10,431 (18) - State Emergency - 1,970 1,011 (959) - Total Revenues 779,058 1,179, ,235 (301,956) 723,903 Expenditures Regular Programs Instruction Salaries 123, , ,873 6, ,359 Benefits 73,250 66,821 69,063 (2,242) 74,409 Purchased services 7,485 29,785 22,664 7,121 40,577 Supplies 46, ,537 82,863 22,674 97,962 Property Other 10,443 5,460-5, Indirect costs ,549 Total Instruction 260, , ,463 39, ,786 Direct Support - Students Salaries 1,080 42,101 8,011 34,090 10,458 Benefits - 14, , Purchased services 1,291 7, ,154 1,807 Supplies - 13, ,557 - Total Direct Support - Student 2,371 77,429 9,101 68,328 12,

38 FEDERAL GRANTS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Regular Programs (continued) Direct Support - School Administration Salaries $ - $ 2,877 $ 2,488 $ 389 $ 717 Benefits Purchased services 2, ,051 Supplies - 2,362 1,148 1, Total Direct Support - School Administration 2,582 5,437 3,734 1,703 4,978 Total Regular Programs 265, , , , ,445 Special Programs Instruction Salaries 106, , ,225 22, ,612 Benefits 74,249 78,541 80,110 (1,569) 70,266 Purchased Services 2,945 3,245 2, ,887 Supplies 4,915 5,491 4,243 1,248 4,585 Total Instruction 188, , ,024 23, ,350 Direct Support - Transportation Salaries Benefits Total Direct Support Total Special Programs 189, , ,024 23, ,350 Vocational Programs Instruction Supplies 11,293 9,944 9,944-11,722 Total Vocational Programs 11,293 9,944 9,944-11,

39 FEDERAL GRANTS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Adult Programs Instruction Salaries $ - $ 27,625 $ 27,625 $ - $ - Benefits - 20,483 13,312 7,171 - Supplies - 3,000 3, Total Adult Programs - 51,108 43,937 7,171 - Undistributed expenditures: Support Services Student Support Salaries 150, , ,405 69,012 96,266 Benefits 74,427 81,651 58,454 23,197 39,700 Purchased services 42,556 85,671 43,724 41,947 19,258 Supplies 9,300 32,002 21,209 10,793 10,539 Other 17, Indirect costs ,600 Total Student Support 294, , , , ,363 Instructional Staff Support Supplies - 3,807 3, Other - 15,291 15, Total Instructional Staff Support - 19,098 19, Central Services Indirect cost reimbursements - 30,229 14,183 16,046 - Total Central Services - 30,229 14,183 16,046 - Operation and Maintenance of Plant Purchased Services - 1,970 1, Total Operation and Maintenance of Plant - 1,970 1, Total Support Services 294, , , , ,

40 FEDERAL GRANTS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Operation of Non-instructional Services: Food Pervice Program Salaries $ 1,600 $ 550 $ 516 $ 34 $ 738 Supplies 15,794 16,051 16, ,285 Property - 10,449 10, Total Food Service Program 17,394 27,050 26, ,023 Total Expenditures 779,058 1,179, , , ,903 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $ - $ - The accompanying notes are an integral part of these financial statements. -30-

41 STATE GRANTS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Revenues Revenues from state sources Career and Technical Education $ 14,462 $ 18,958 $ 18,958 $ - $ 14,462 Teacher Supplies Reimbursement - 7,143 3,549 (3,594) 5,856 Family Resource Center ,459 Full-Day Kindergarten 245, , , ,373 Gifted and Talented (300) 416 Early Childhood Preschool 120, , , ,336 Elementary English Language Learners 31,051 32,668 32,257 (411) 31,025 Library Books Substance Abuse Prevention ,000 Education Technology - Nevada Ready - 54,000 54, School Counselor 5% Extra - 1,679 1,679-1,604 Nevada Humanities - 1, (267) - Read by Grade 3 201, , ,433 (13,954) - Elementary Counselor 50,000 50,000 50,000-50,000 Safe and Healthy Students ,877 Turn Around - 14,936 13,396 (1,540) 5,478 State Match, School Lunch Breakfast Before the Bell ,567 Total Revenues 663, , ,475 (20,066) 498,261 Expenditures Regular Programs Instruction Salaries 245, , ,672 7, ,756 Benefits 137, , , ,927 Purchased services 400 4,280 3, ,706 Supplies 69,880 82,365 74,511 7,854 17,900 Other 2, ,770 Indirect costs ,867 Total Instruction 456, , ,841 15, ,926 Direct Support - Guidance Salaries 50,000 53,179 53,179-36,604 Benefits (4) 15,000 Purchased Services - 4,251 3,094 1,157 5,088 Supplies Total Direct Support - Guidance 50,000 57,455 56,302 1,153 57,

42 STATE GRANTS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Regular Programs (continued) Direct Support - Library Supplies $ - $ 802 $ 802 $ - $ 808 Total Direct Support - Library Total Regular Programs 506, , ,945 16, ,816 Special Programs Instruction Supplies Other Total Special Programs Vocational Programs Instruction Supplies 8,885 13,160 13, ,585 Property 5,577 5,799 5,800 (1) 5,877 Total Vocational Programs 14,462 18,959 18, ,462 Adult Programs Instrustion Supplies Total Adult Programs Undistributed expenditures: Support Services Instructional Staff Support Salaries 85,000 82,921 82, Benefits 45,000 34,422 34, Purchased services Supplies 11,387 5,000 3,247 1,753 - Total Instructional Staff Support 141, , ,287 2,

43 STATE GRANTS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Undistributed expenditures (continued): Support Services Central Services Purchases services $ - $ 54,000 $ 54,000 $ - $ - Total Business Administration - 54,000 54, Total Support Services 141, , ,287 2,556 - Operation of non-instructional services Food service program Supplies ,567 Total Expenditures 663, , ,475 20, ,261 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $ - $ - The accompanying notes are an integral part of these financial statements. -33-

44 STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2016) PRIVATE STUDENTS PURPOSE AGENCY TOTALS TRUST FUNDS Assets Cash and investments $ 23,661 $ 241,158 $ 264,819 $ 241,377 Accrued interest receivable Total Assets 23, , , ,377 Liabilities Accounts payable 1,250-1,250 - Due to student groups - 241, , ,449 Total Liabilities 1, , , ,449 Net Position Restricted Expendable 22,438-22,438 30,928 Net Position $ 22,438 $ - $ 22,438 $ 30,928 The accompanying notes are an integral part of these financial statements. -34-

45 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2016) PRIVATE-PURPOSE TRUST Additions Interest earnings $ 260 $ 111 Total Additions Deductions Scholarships awarded 8,750 1,500 Change in Net Position (8,490) (1,389) Net Position, July 1 30,928 32,317 Net Position, June 30 $ 22,438 $ 30,928 The accompanying notes are an integral part of these financial statements. -35-

46 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 1 - Summary of Significant Account Policies: The Pershing County School District (the District ) is a public educational district operated under the applicable laws and regulations of the State of Nevada. It is governed by a five member Board of Trustees elected by registered voters of the District. The financial statements of the Pershing County School District have been prepared in accordance with generally accepted accounting principles in the United States of America ( GAAP ) as applied to governmental units. The Governmental Accounting Standards Board ( GASB ) is the standard-setting body for governmental accounting and financial reporting. The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting Standards, which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units in addition to other authoritative sources found in the various Statements of Auditing Standards of the American Institute of Certified Public Accountants. Reporting Entity: The District is recognized by State constitution as a corporate body and is governed by a separately-elected five-member Board of Trustees. The District is legally separate and fiscally independent of all other governmental entities with decision making authority, authority to levy taxes, the power to designate management, the ability to significantly influence operations and is primarily accountable for fiscal matters. Therefore, the District is a primary government and is not included in any other governmental reporting entity as defined by the GASB pronouncements, nor is the Board accountable for any other entity required to be included in the District s financial statements. Basic Financial Statements: The basic financial statements include both government-wide (based on the District as a whole) and fund financial statements. The focus of the reporting model is on either the District as a whole, or major individual funds (within the fund financial statements). Governmental 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 services. Since the District, currently, has no business-type activities, all activities are reported as governmental. In the government-wide Statement of Net Position, the governmental activities are reflected, on a full accrual, economic resource basis, which incorporate long-term assets and receivables as well as long-term debt and obligations. 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 of directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting operational or capital requirements of a particular function. Taxes and other items not meeting this defined classification as program revenues are reported instead as general revenues. The program revenues must be directly associated with the function. The operating grants include operating- -36-

47 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 specific and discretionary (either operating or capital) grants while a capital grants column reflects capital-specific grants whenever such grants are received. This government-wide focus is more on the substantiality of the District as an entity and the change in aggregate financial position resulting from the activities of the fiscal period. For the most part, the effect of interfund activity has been removed from the government-wide statements. Interfund activities relating to services provided and used between functions are not eliminated. The fund financial statements are presented with an emphasis on the major funds of the governmental categories. Non-major funds (by category) or fund type are summarized into a single column. The governmental funds major fund statements in the fund financial statements are presented on a current financial resource and modified accrual basis of accounting. This is the manner in which these funds are normally budgeted. This presentation is deemed most appropriate to (a) demonstrate legal and covenant compliance, (b) demonstrate the source and use of liquid resources, and (c) demonstrate how the District s actual experience conforms to the budget or fiscal plan. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statement s governmental column, a reconciliation is presented on the page following each statement which briefly explains the adjustments necessary to transform the fund based financial statements into the governmental column of the government-wide presentation. The District s fiduciary funds are presented in the fund financial statements by type (private purpose and agency). Since by definition these assets are being held for the benefit of a third party (other local governments, private parties, etc.) and cannot be used to finance activities or obligations of the government, these funds are not incorporated into the government-wide statements. The focus of the model is on the District as a whole and the fund financial statements, including the major individual funds of the governmental, as well as the fiduciary funds, (by category). Each presentation provides valuable information that can be analyzed and compared (between years and between governments) to enhance the usefulness of the information. Basis of Presentation The governmental-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as is the fiduciary fund. Under this method, revenues are recognized at the time they are earned and expenses are recognized when the related liabilities are incurred, regardless of the timing of the related cash flow. Property taxes are recognized as revenues in the year in which they are levied. 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 use the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current -37-

48 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 assets, current liabilities, and fund balances are included on the balance sheet. Operating statements of these funds present net increases and decreased in current assets (i.e. revenues, other financing sources, expenditures and other financing uses). The modified accrual basis of accounting recognizes revenues in the accounting period in which they become measurable and available and it recognized expenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest and principal on long-term debt, which is recognized when due. The expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. The District considers all revenues available if they are collected within 60 days after year end. Revenues from local sources consist primarily of property taxes. Other revenues received from the State of Nevada are recognized when susceptible to accrual. Miscellaneous revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned since they are measurable and available. Grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant and, accordingly, when such funds are received they are recorded as deferred revenues until earned. The accounts of the District are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, net position, revenues, and expenditures (or expenses, as appropriate). 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. The various funds are reported by generic classification within the financial statements. The model as defined in GASB Statement No. 34 establishes criteria (percentage of the assets, liabilities, revenues or expenditures of either fund category or the governmental activities) for the determination of major funds. Management may also elect to designate a fund, which does not meet the criteria, as a major fund. The nonmajor funds are combined in a single column in the fund financial statements. The District reports the following major funds. Governmental Major Funds (1) General Fund The 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 other funds. (2) Special Education Fund The fund accounts for all costs, other than those paid by grants, directly related to providing instructional and support services to students with special needs. -38-

49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 (3) Federal Grants Fund The fund accounts for costs applicable to federal grant awards, other than any that may be accounted for within the general fund. (4) State Grants Fund The fund accounts for costs applicable to grants awarded by the State of Nevada. (5) Debt Service Fund - The fund accounts for all resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds. (5) Capital Bond Fund The fund accounts for all expenditures related to acquiring and constructing major capital facilities. It was initially associated with the issuance of the 2009 and 2010 series bonds but is now funded by a portion of the governmental services tax. Voter approved ad valorem taxes, levied for debt service and capital improvements, are also transferred from the debt service fund as permitted by state law. Fiduciary Funds: The private-purpose trust fund is used to account for the resources legally held in trust for the purpose of awarding future student scholarships. Agency Funds are used to report resources held by the District in a purely custodial capacity (assets equal liabilities). The District s Agency Fund is the Student Activity Funds. Non-Current Governmental Assets/Liabilities: These records are maintained and the information incorporated into the Governmental column in the government-wide Statement of Net Position. Expenditure Line Item Titles The Statement of Revenues, Expenditures, and Changes in Fund Balance for all Governmental Funds contain expenditures summarized by major program classifications pursuant to the provisions of Handbook II Nevada Financial Accounting Handbook for Local Education Agencies as established by the Nevada Department of Education. Below is a description of these expenditures program classifications. Regular programs consist of activities designed to provide elementary and secondary students with learning experiences to prepare them for activities as citizens, family members, and non-vocational workers. -39-

50 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Special programs consist of activities designed primarily to deal with students having special needs. The special programs include kindergarten, elementary and secondary services for the gifted and talented, mentally retarded, physically handicapped, emotionally disturbed, culturally different, students with learning disabilities, bilingual students, and special programs for other types of students. Vocational programs consist of learning experiences, which will provide individuals with the opportunity to develop the necessary knowledge, skills, and attitudes needed for employment in an occupational area. Adult programs consist of expenditures to fund adult education programs. Other programs consist of expenditures to fund athletic, co-curricular and other programs. Undistributed expenditures represent all charges, which are not readily assignable directly to a program. Included within this category are support services, Operation of noninstructional service, facilities acquisition and construction, and debt service. Support services are student and instruction staff support, the overall general, administrative, and business costs, costs of operating and maintaining the District's physical facilities, and providing transportation for students. Non-instructional services consist of the District's food services operations. Budgets and Budgetary Accounting The District adheres to the Local Government Budget Act incorporated within state statutes, which includes the following major procedures to establish the budgetary data, which is reflected in these financial statements. 1. On or before April 15, the Pershing County School District Board of Trustees files a tentative budget with the Nevada Department of Taxation and the Nevada Department of Education for all funds. 2. Public budget hearings on the tentative budget are held on the third Wednesday in May. 3. Prior to June 1, at a public hearing, the Board indicates changes, if any, to be made to the tentative budget and adopts a final budget by the favorable vote of a majority of the members of the Board. The final budget must then be forwarded to the Nevada Tax Commission to approve the requested ad valorem tax rate. 4. Formal budgetary integration in the financial records of all governmental funds is employed to enhance management control during the year. 5. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP), and appropriations lapse at year-end. -40-

51 NOTES TO FINANCIAL STATEMENTS JUNE 30, Once a budget is approved, it can be amended at the Function and Fund level only by approval of a majority of the members of the Board of Trustees. Amendments are presented to the Board at their regular meetings. Each amendment must have Board approval. Such amendments are made before the fact, are reflected in the official minutes of the Board, and are not made after fiscal year-end as dictated by law. Budgeted amounts within funds, and between funds, may be transferred if amounts do not exceed the amounts originally budgeted. Such transfers are to be approved by the Budget Officer and/or the Board of Trustees, depending on established criteria. Budget augmentations in excess of original budgetary amounts may be made only with prior approval of the Pershing County School District Board of Trustees, following a scheduled and noticed public hearing. The Board amended the budget once during the year. In accordance with State statute, actual expenditures may not exceed budgetary appropriations of the various governmental programs of the General Fund, or total appropriations of the individual Special Revenue and Capital Project Funds, except for bond repayments, shortterm financing repayments, and any other long-term contracts expressly authorized by law or construction of public works from funds provided by the proceeds of a sale of bonds or shortterm financing. The District accounts and budgets for unemployment claims in a separate fund. GASB Statement 54 requires this fund to be reported within the General Fund. Accordingly, a reconciliation of the General Fund's budgetary comparison statement includes a reconciliation to GAAP basis information reported in the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds. Property Taxes All real property in Pershing County is assigned a parcel number, in accordance with state law, and each parcel being subject to physical reappraisal every five years. Annual adjustments are made to the assessed valuation to reflect general changes in property values. The assessed valuation of the property and its improvements is computed at 35% of taxable value as defined by statute. The amount of tax levied is developed by multiplying the assessed value by the tax rate applicable to the area in which the property is located. As a result of the 1979 legislative session, the tax rate was further limited to $3.64 per hundred dollars of assessed valuation unless an additional rate was approved by the electorate. 1. Each board of county commissioners shall levy a tax of $.75 on each $100 of assessed valuation of taxable property within the county for support of the public schools within the county school district. 2. In additional to any tax levied in accordance with subsection 1, each board of county commissioners shall levy a tax for the payment of interest and redemption of outstanding bonds of the county school district. -41-

52 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 The District s tax rate for was $.75 for general operations and $.40 for debt service requirements for a total rate of $1.15 per $100 of assessed valuation. When combined with other entities with overlapping tax rates, the total combined rate is less than the maximum of $3.64 per $100 of assessed valuation. Pershing County bills and collects the property tax for the School District. The tax rates are levied by the County Commissioners immediately after the combined tax rate has been certified by the Nevada Tax Commission. No later than June 15 of each year the individual tax is to be determined and submitted to the Treasurer for collection. The tax rate levied is for the current fiscal year, July 1 to June 30, and the taxes are considered a lien against real property that attaches on July 1. The tax is due and payable on the third Monday in August. Taxes may be paid in four equal installments payable on the third Monday in August, the first Mondays in October, January and March. Penalties are assessed if a taxpayer fails to pay an installment within ten days of the installment due date. After a two-year waiting period, if the taxes remain unpaid, a tax deed is issued conveying the property to the County with a lien for back taxes and accumulated penalties, interest and costs before sale. Redemption may be made by the owner and such persons as described by statute by paying all back taxes and accumulated penalties, interest and costs before sale. Taxes on personal property are collected currently. Personal property declarations are mailed out annually and the tax is computed using percentages of taxable values established by the Department of Taxation and tax rates described above. Encumbrances Encumbrance accounting, under which purchase orders, contracts and commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed. Cash and Investments Cash balances from all funds are combined and, to the extent practicable, invested as permitted by NRS Investments are stated at cost, which materially approximates market value. Pursuant to NRS , the District may only invest in the following types of securities: United States bonds and debentures maturing within ten (10) years from the date of purchase. Certain farm loan bonds. Securities of the United States Postal Service of the Federal National Mortgage Association maturing within ten (10) years from the date of purchase. Negotiable certificates of deposit from commercial banks and insured savings and loan associations within the State of Nevada. Certain securities issued by the local governments of the State of Nevada. -42-

53 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Other securities expressly provided by other statutes, including repurchase agreements. Certain short-term commercial paper issued by U. S. corporations. Certain "AAA" rated mutual funds that invest in Federal securities. Interest receivable Interest on investments and certain receivables are recorded as revenue in the year the interest is earned and is available to pay liabilities of the current period. Inventories Expenditures for consumable supplies held for future consumption are charged against appropriations at the time of purchase. Any inventories of such supplies at June 30 are not material to the individual funds and are not recognized in these financial statements. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the applicable governmental activities column in the district-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost of $5,000 or more and on estimated useful life in excess of one year. Such assets are recorded at historically cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of the donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset lives are not capitalized. Land improvements, buildings, furniture and equipment of the District are depreciated using the straight line method over the following estimated useful lives: Long-Term Debt Buildings 50 Site improvements 30 Infrastructure 20 Furniture and desks 20 Athletic equipment 15 Kitchen and large equipment 20 Vehicles 10 Other small equipment 10 Computer and related equipment 5 In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities column in the Statement of Net Position. -43-

54 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of the debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance cost, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Vacation Time and Sick Leave Benefits The estimated cost of vacation time and sick leave benefits are accrued as earned and recorded in the government-wide financial statements against applicable programs. In governmental fund financial statements, the cost of vacation and sick leave benefits are not accrued as earned but are recorded as payroll costs when time is actually used. Sick Leave: The majority of the employees of the District are licensed personnel who have contracts providing for the accumulation of 15 days per year of sick leave up to 180 days. Upon voluntary termination of employment from the District, they shall be paid $30 per day up to 180 accumulated days providing they have ten consecutive years of contracted certificated employment at the District. The classified personnel also accumulate sick leave of 15 days per year for a maximum accumulation of 145 days. Upon their leaving the employment of the District, they are paid 25% of their current daily rate per day up to 145 accumulated days provided they have ten years of continuous employment at the District. Vacation Leave: No vacation time is provided for licensed employees. Classified employees earn vacation leave from time of employment and may use accumulated leave upon the completion of six months of employment. Accrual rates for various lengths of service are as follows: 1 to 5 years of service, 10 days per year 6 to 10 years of service, 15 days per year Over 10 years of service, 18 days per year Management determines a probable estimate for employees who will ultimately vest in sick leave based on prior District experience. This estimate is used to record the liability for "accrued vacation and sick leave" in the government-wide financial statements. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Nevada Public Employees Retirement System (PERS) and additions to/deductions from PERS s fiduciary net position have been determined on the same basis as they are reported by PERS. 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. -44-

55 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Deferred Inflows and Outflows of Resources Transactions that result in the consumption or acquisition of net assets in one period that are applicable to future periods are reported as either a deferred inflow of resources or deferred outflow of resources in the statement of net position. Net Position Net position represents the difference between assets and deferred outflows of resources, and liabilities and deferred inflows of resources. Net position comprise of various net earnings from operating and non-operating revenues, expenses and contributions of capital. Net position are classified in the following three components: invested in capital assets, net of related liabilities; restricted for capital activity and debt service; and unrestricted net position. Invested in capital assets, net of related debt, consist of all capital assets, net of accumulated depreciation and reduced by outstanding debt that is attributable to the acquisition, construction and improvement of those assets; debt related to unspent proceeds or other restricted cash and investments is excluded from that determination. Restricted for capital activity and debt service consists of net position for which constraints are placed thereon by external parties, such as lenders, grantors, contributors, regulations and enabling legislation, including self-imposed legal mandates, less any related liabilities. Unrestricted consists of all other net position not included in the above categories. The District applies restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted net position are available. Fund Balance In the governmental fund financial statements, governmental funds report up to five components of fund balance, as applicable. These five classifications are: nonspendable, restricted, committed, assigned, and unassigned. Nonspendable fund balance is reserved for portions of net resources that cannot be spent because of their form, such as inventories or prepaid items, or that cannot be spent because they must be kept intact. Restricted fund balance is reserved for the portion of net resources that have externally enforceable limitation on use, such as those imposed by creditors, grantors, contributors, or laws enacted by external entities. Committed fund balance is reserved for the portion of net resources that have had self-imposed limitations set in place by formal action of the governing board. Assigned fund balance is reserved for the portion of net resources that have an intended use established by the governing board or a designated official. Unassigned fund balance is for that portion of net resources that does not meet the criteria to be placed in any of the other four components of fund balance. Restricted amounts are considered to be spent prior to unrestricted amounts when an expenditure is incurred. Unrestricted amounts are considered to be spent in the following order: committed, assigned, and then unassigned. -45-

56 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Prior-Year Data The basic financial statements include certain prior-year summarized comparative information in total but not at the level of detail required for a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the District s financial statements for the year ended June 30, 2016, from which the summarized information was derived. Post-Employment Health Care Benefits Retirees may elect to continue health insurance coverage. The District pays the health insurance premium and is reimbursed directly by the employee or by the state retirement system that deducts the premium from the retirees retirement check. Due to and Due from Other Funds Interfund receivables and payables arise from interfund transactions and are recorded by all funds affected in the period in which transactions are executed. Allowance for Uncollectible Receivables The District has not established an allowance for uncollectible receivables since prior experience has shown that uncollectible receivables are not material in amount. Interest Capitalization Policy The District does not capitalize interest on construction projects. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Note 2 Cash and Investments: Cash includes not only currency on hand but demand deposits with banks or other financial institutions. Cash also includes other kinds of accounts that have the general characteristics of demand deposits in that the customer may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. The District s bank accounts are fully covered by FDIC insurance and collateral pledged to the accounts. The collateral pledged consists of obligations insured or guaranteed by the U.S. Government and its agencies. To the greatest extent possible, the District invests excess cash balances in the Nevada State Investment Pool under the Pershing County School District s name. The following schedule summarizes cash and investments for the Pershing County School District at June 30, 2017: -46-

57 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 2 Cash and Investments: (continued) Cash and Investment Balances Held By: Governmental Funds $ 6,103,177 Fiduciary Fund 264,819 Total Cash and Investments $ 6,367,996 Balance Classified by Depository: Cash: Wells Fargo Bank $ 2,297,727 Investments: Nevada State Investment Pool 4,070,269 Total Cash and Investments $ 6,367,996 The following is a list of cash and deposits indicating collateral or insurance on these deposits: Carrying Bank Amount Balance Insured (FDIC) $ 250,000 $ 250,000 Uninsured but collateralized by securities held in the name of Pershing County School District by the bank s agent or trust department 2,047,727 2,190,347 Investment $ 2,297,727 $2,440,347 At June 30, 2017, the average weighted maturity of the Nevada Local Government Investment Pool was 310 days. The fair value of $4,070,269 is determined according to the following hierarchy determined by availability of market pricing used to determine the fair value. Level I Based on quoted prices in active market for identical assets $ 415,981 Level II Based on significant other observable inputs 3,654,288 Interest Rate Risk: The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk: State law limits types of allowable investments under Nevada Revised Statutes as listed in the accompanying Note 1. The Nevada Local Government Investment Pool is not rated by a nationally recognized statistical rating organization. The fair value of the Local Government Investment Pool is materially the same as the book value of the pool shares. Concentration of Credit Risk: The District places no limit on the amount the District may invest in any one issuer. -47-

58 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 3 Capital Assets: The following table summarizes the changes in components of the Capital Assets for the year ended June 30, 2017: Balance Balance June 30, 2016 Additions Deletions June 30, 2017 Not subject to depreciation: Land $ 743,892 $ - $ - $ 743,892 Construction in progress 8,926 44,613 8,926 44, ,818 44,613 8, ,505 Subject to deprecation: Buildings and improvements 22,556, ,464-22,963,926 Equipment and vehicles 5,420, , ,223 5,487,924 27,976, , ,223 28,451,850 Less accumulated depreciation: Buildings and improvements 11,253, ,680-11,718,826 Equipment and vehicles 4,476, , ,223 4,490,893 15,730, , ,223 16,209,719 Depreciable assets, net 12,246,747 (4,616) - 12,242,131 Governmental activities capital assets, net $12,999,565 $ 39,997 $ 8,926 $13,030,636 Depreciation expense was charged to programs and function as follows: Regular program $ 174,161 Special program 242 Vocational program 20,651 Adult program 267 Other programs 7,506 Instructional staff support 1,529 General administration 569 Central services 22,143 Operation and maintenance 16,967 Student transportation 77,724 Food services 2,052 Unallocated 319,026 Total Depreciation Expense $ 642,

59 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 4 General Long-Term Obligations: The District s General Long-Term Obligation consists of general obligation bonds, revenue bonds, installment purchase agreement, capital lease, and accrued compensated absences. General Obligation Bonds Long-term obligation bonds payable at June 30, 2017, are comprised of the following individual issues: $3,000,000 in bonds series 2009, due in annual principal installments ranging from $110,000 to $250,000 from February 11, 2009 through April 1, 2029, interest rate is variable from 3.0% to 4.2%. $2,265,000 $1,725,000 in bonds series 2010A, (taxable, Build America Bonds) due in annual principal installments ranging from $100,000 to $155,000 from May 20, 2010 through April 1, 2030, interest rate is variable from 3.25% to %. First principal payment is due on April 1, ,625,000 Obligation bonds payable June 30, 2017 $3,890,000 The annual debt service requirements to maturity for all bond obligations outstanding as of June 30, 2017 are as follows: Year Ended Total Interest June 30 Principal Interest Requirement Subsidy (a) 2018 $ 240,000 $ 185,989 $ 425,989 $ 33, , , ,588 31, , , ,789 29, , , ,594 28, , , ,054 25, ,650, ,371 2,140,371 91, ,000 87,745 1,022,745 19,906 a) Subject to Federal sequestration reductions $3,890,000 $1,399,130 $5,289,130 $260,209 The lawful School District general obligation debt limit at June 30, 2017 was $45,169,291 (NRS ). Bonded debt outstanding at June 30, 2017 was $3,890,000 resulting in unused bonding capacity of $41,279,

60 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 5 Changes in Long-Term Obligations: Balance Balance Current June 30, 2016 Additions Deletions June 30, 2017 Portion General obligation bonds 2009 Series $ 2,400,000 $ - $ 135,000 $ 2,265,000 $ 140, A Series 1,725, ,000 1,625, ,000 Installment purchase agreement 59,047-59, Other post-employment benefits Note 8 654, , , ,755 - Accrued vacation and sick pay 293,201 23, ,245 - Net pension liability Note 7 10,965,631 3,930,159 1,666,940 13,228,850 - Total Long-Term Obligations Payable $16,097,205 $4,139,981 $2,108,336 $18,128,850 $ 240,000 Note 7 Defined Benefits Pension Plan: General Information about the Pension Plan Plan description: All permanent full time employees are provided pensions through the Public Employees Retirement Plan (PERS). The plan is a multiple-employer defined benefit pension plan administered by the Public Employees Retirement System of Nevada. Chapter 286 of the Nevada Revised Statutes (NRS) establishes a governing board, appointed by the Governor that is responsible for managing the System, including arranging for a biennial actuarial valuation and adoption of actuarial tables and formulas prepared and recommended by the actuary. Benefits provided: Benefits, as required by the Nevada Revised Statutes (NRS or statute), are determined by the number of years of accredited service at time of retirement and the member s highest average compensation in any 36 consecutive months with special provisions for members entering the System on or after January 1, Benefit payments to which participants or their beneficiaries may be entitled under the plan include pension benefits, disability benefits, and survivor benefits. Monthly benefit allowances for members are computed at 2.5% of average compensation for each accredited year of service prior to July 1, For service earned on and after July 1, 2001, this multiplier is 2.67% of average compensation. For members entering the System on or after January 1, 2010, there is a 2.5% multiplier. The System offers several alternatives to the unmodified service retirement allowance which, in general, allow the retired employee to accept a reduced service retirement allowance payable monthly during his or her lifetime and various optional monthly payments to a named beneficiary after his or her death. -50-

61 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 7 Defined Benefits Pension Plan: (continued) Post-retirement increases are provided by authority of NRS Regular members are eligible for retirement at age 65 with five years of service, at age 60 with ten years of service, or at any age with thirty years of service. Regular members entering the System on or after January 1, 2010, are eligible for retirement at age 65 with five years of service, or age 62 with ten years of service, or any age with thirty years of service. Police/Fire members are eligible for retirement at age 65 with five years of service, at age 55 with ten years of service, at age 50 with twenty years of service, or at any age with twentyfive years of service. Police/Fire members entering the System on or after January 1, 2010, are eligible for retirement at age 65 with five years of service, or age 60 with ten years of service, or age 50 with twenty years of service, or at any age with thirty years of service. Only service performed in a position as a police officer or firefighter may be counted towards eligibility for retirement as Police/Fire accredited service. The normal ceiling limitation on monthly benefit allowances is 75% of average compensation. However, a member who has an effective date of membership before July 1, 1985, is entitled to a benefit of up to 90% of average compensation. Both Regular and Police/Fire members become fully vested as to benefits upon completion of five years of service. Contributions: The authority for establishing and amending the obligation to make contributions, and member contribution rates, is set by statute. The contribution rates are based on biennial actuarial valuations and expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. New hires, in agencies which did not elect the Employer-Pay Contribution (EPC) plan prior to July 1, 1983 have the option of selecting one of two contribution plans. One plan provides for matching employee and employer contributions, while the other plan provides for employer-pay contributions only. Under the matching Employee/Employer Contribution plan a member may, upon termination of service for which contribution is required, withdraw employee contributions which have been credited to their account. All membership rights and active service credit in the System are canceled upon withdrawal of contributions from the member s account. If EPC was elected, the member cannot convert to the Employee/Employer Contribution plan. Pershing County School District has elected the EPC plan for all employees. The District s contributions to the plan totaled $1,727,681 for the year ended June 30, 2017, based on a rate of 28% of covered compensation. -51-

62 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 7 Defined Benefits Pension Plan: (continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2017, the District reported a liability of $13,228,850 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The District s proportion of the plan s net pension liability was based on the District s combined employer and member contributions to the pension plan relative to the contributions of all participating entities for the year ended June 30, At June 30, 2016, the District s proportion was.09830%, which was a.00261% increase from its proportion measured as of June 30, For the year ended June 30, 2017, the District recognized pension expense of $1,790,659. At June 30, 2017, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual Experience $ - $ 885,838 Net difference between projected and actual earnings on pension plan investments 1,229,786 - Changes in proportion and differences between District contributions and proportionate share of contributions 520,529 80,194 $ 1,750,315 $ 966,032 Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30: 2018 $ 11, , (516,663) 2021 (289,367) ,806 Thereafter (14,727) $ (784,283) -52-

63 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 7 Defined Benefits Pension Plan: (continued) In addition, $1,919,854 is reported as deferred outflows of resources related to pensions and represents District contributions subsequent to the measurement date. The amount will be recognized as a reduction of the net pension liability in the year ended June 30, Actuarial assumptions: The actuarial assumptions were based on the results of an experience study for the period from July 1, 2006, through June 30, When measuring the total pension liability, GASB uses the same actuarial cost method, all actuarial assumptions, and the same type of discount rate as PERS uses for funding. The total pension liability in the June 30, 2016 actuarial valuation was determined using the following actuarial assumptions applied to all periods included in the measurement: Inflation rate 3.5% Payroll growth 5%, including inflation Investment rate of return 8.0% Productivity pay increases: 0.75% Plus Projected salary increases Regular: 4.6% to 9.75%, depending on service Police/Fire 5.25% to 14.5%, depending on service Rates include inflation and productivity increases Consumer Price Index: 3.50% Other assumptions Same as those used in the June 30, 2015 funding actuarial valuation The Board evaluates and establishes expected real rates of return (expected returns, net of investment expenses and inflation) for each asset class. The Board reviews these capital market expectations annually. The PERS s current long-term geometric expected real rates of return for each asset class included in the plan s investment portfolio as of June 30, 2016, are included in the following table: Long-Term Geometric Asset Class Expected Real Rate of Return* Domestic Equity 5.50% International Equity 5.75% Domestic Fixed Income 0.25% Private Markets 6.80% *As of June 30, 2016, PERS long-term inflation assumption was 3.5%. -53-

64 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 7 Defined Benefits Pension Plan (continued): Discount Rate: The discount rate used to measure the total pension liability was 8.00% as of June 30, The projection of cash flows used to determine the discount rate assumed plan contributions will be made in amounts consistent with statutory provisions and recognizing the plan s current funding policy and cost-sharing mechanism between employers and members. For this purpose, all contributions that are intended to fund benefits for all plan members and their beneficiaries are included, except that projected contributions that are intended to fund the service costs for future plan members and their beneficiaries are not included. Sensitivity of the District s proportionate share of the net pension liability to changes in the discount rate: The following presents the District s proportionate share of the net pension liability calculated using the discount rate of 8.00 percent, as well as what the District s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (7.00%) or 1-percentage-point higher (9.00%) than the current rate: Current 1% Decrease Discount Rate 1% Increase (7.00%) (8.00%) (9.00%) $19,390,910 $13,228,850 $8,102,092 Additional Information: Additional information supporting the Schedule of Employer Allocations and the Schedule of Pension Amounts by Employer is located in the PERS Comprehensive Annual Financial Report (CAFR) available on the PER s website at under Quick Links Publications. Note 8 Postemployment Benefits Other Than Pensions (OPEB): The District offers post-employment health benefits to its retirees under two plans on the pay-as-you-go basis. Accordingly, the District has implemented GASB No. 45 prospectively, beginning with the year ended June 30, Actuarial studies are done periodically to determine the OPEB liability. The most recent valuation was performed for June 30, Plan Information Nevada Public Employees' Benefits Program: The District contributes to an agent multiple-employer defined healthcare plan, Nevada Public Employees Benefits Program (PEBP). PEBP is administered by the State of Nevada pursuant to NRS 287. District retirees previously had the option to join the PEBP offered by the State of Nevada. Local Governments are required to pay the same portion of cost of coverage for their retirees joining PEBP that the State of Nevada pays for those persons retired from state service. As of June 30, 2017, 54 District retirees were covered by this benefit plan. The PEBP issues a publicly available report that includes financial statements and required supplementary information. That report may be obtained by writing -54-

65 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 to Public Employees' Benefit Program, 901 South Stewart Street, Suite 1001, Carson City, Nevada The information is also available on their website at or by calling (800) Pershing County School District Health Care Plan: The District administers a single-employer defined benefit healthcare plan for eligible employees, retirees and their dependents. The program provides health, vision, dental, and life insurance benefits. Any retiree eligible to receive benefits from the Nevada Public Employees Retirement System is eligible to participate. Funding Policy: Nevada Public Employees' Benefits Program: The contributions to Nevada Public Employees' Benefits Program are established and may be amended by the Board of the Public Employee's Benefits Program. The amount of subsidy for District retirees is billed monthly. The explicit subsidy paid directly to PEPB by the District for the year ended June 30, 2017 was $107,128. Amounts contributed by retirees are paid directly to the State of Nevada and, as such, are not available. The required contribution is based on projected pay-as-you-go financing requirements. The District has not elected the option to pay additional amounts into a qualified trust to prefund benefits. Pershing County School District Health Care Plan: The District pays the full cost of active employee coverage. Employees pay the full cost of any optional dependent coverage and retirees pay the full cost of their personal and dependent coverage. Claims experience of employees and retirees are pooled when determining premiums and retiree and active employees pay the same rates resulting in an "implicit" subsidy of retirees cost by active employees. There were 111 active employees and 4 retirees enrolled in the plan at June 30, A separate report is not issued for the plan. Annual OPEP Cost and OPEB Liability: As of June 30, 2016, the effective date of the OPEB valuation, the number of retiree participants in the PEBP and District plans was 55 and 4 respectively, with 125 total participants in the District's program. Because of the sunsetting of the PEBP's enrollment, effective November 29, 2008, the number of retirees participating in that plan will decrease. The annual OPEB cost is calculated based on the annual required contribution to the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortized any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The District s annual OPEB cost for the current year and the related information for both plans are as follows: -55-

66 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 8 Postemployment Benefits Other Than Pensions: (continued) PEBP District Total Annual required contribution $ 104,429 $ 92,074 $ 196,503 Interest on Net OPEB obligations 7,153 19,021 26,174 Adjustments to annual required contributions (12,036) (23,863) (35,899) Annual OPEB cost 99,546 87, ,778 Contributions made (107,128) (40,221) (147,349) Increase in net OPEB obligation (7,582) 47,011 39,429 Net OPEB obligation, beginning of the year 178, , ,326 Net OPEB obligation, end of the year $ 171,231 $ 522,524 $ 693,755 The District s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligations (assets) by the plan, for the fiscal year 2017 were as follows: Annual OPEB Cost $ 99,546 $ 87,232 $ 186,778 Employer contributions (107,128) (40,221) (147,349) Net OPEB Contributions $ (7,582) $ 47,011 $ 39,429 Percentage of annual OPEB cost contributed 107.6% 46.1% 78.9% Funding Status and Funding Progress Actuarial accrued liability (a) $1,613,548 $ 807,160 $2,420,708 Actuarial value of plan assets (b) Unfunded actuarial accrued liability (a) (b) $1,613,548 $ 807,160 $2,420,708 Funding ratio (b)/(a) 0% 0% 0% Covered payroll (c) - $6,248,919 $6,248,919 Unfunded actuarial accrued liability as a Percentage of covered payroll (a) (b)/(c) n/a 12.9% 38.7% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision and actual results are compared to past expectations and new estimates are made about the future. The required schedule of funding progress presented as required supplementary information will provide multi-year trend information that will show, in future years, whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. -56-

67 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 8 Postemployment Benefits Other Than Pensions: (continued) Actuarial Methods and Assumptions Projections of benefits are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits in force at the valuation date and the pattern of sharing benefit costs between the District and the plan members to that point. Projections of benefits for financial reported purposes do not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. Significant methods and assumptions are as follows: Actuarial valuation date June 30, 2016 Actuarial cost method Entry Age Normal Cost, closed group, level percent of pay Amortization method - PEBP Level dollar Amortization method - District Level % of payroll Amortization period (in years) 30 Asset valuation method N/A - No trust established Discount rate 4.0% (unfunded) Participants valued Only current active employees and covered spouses are valued. No future entrants are considered Actuarial assumptions: Investment rate of return 4.0% Projected salary increases 4.0% Assumed wage inflation 3.0% General inflation rate 2.75% -57-

68 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 9 Interfund Receivables and Payables: Many grants are funded on a reimbursement basis. Consequently expenses are paid with cash advanced from the General Fund until the subsequent reimbursement is received. The following interfund receivable and payables represent the advances outstanding at year end. Due from Other Funds Due to Other Funds General Fund $ 410,784 $ - Federal Grant Fund - 226,015 State Grant Fund - 184,769 Totals $ 410,784 $ 410,784 Note 10 Interfund Transfers: The General Fund annually transfers resources to the Special Education Fund and Federal School Lunch Fund. This is required because the resources dedicated to these funds are insufficient to cover the costs of operating the respective programs. The electorate approved an ad valorem tax rate to fund general obligation bond debt service requirements and provide resources for capital acquisitions and improvements. All tax proceeds are credited to the debt service fund and transfers are made to the Capital Bonds Fund as permitted by law. Transfers In Transfers Out General Fund $ - $ 607,000 Special Education Fund 517,000 - Federal School Lunch Fund 90,000 - Debt Service Fund 515,563 - Capital Bonds Fund - 515,563 Totals $1,122,563 $1,122,

69 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 11 Fund Balance: Restricted NRS stipulates the tax on net proceeds of minerals credited to the General Fund is not available for current year expenditures and becomes available the subsequent year of collection. State law (NRS ) permits the District to transfer property tax proceeds approved by the electorate from the Debt Service Fund to the Capital Bonds Fund where it must be expended for capital projects. The amount that may be transferred cannot result in a debt service reserve which is the lessor of 10% of all outstanding general obligation debt or 50% of the subsequent year s debt service requirement. At June 30, 2017, the governmental funds had the following restricted fund balance. General Fund Tax on NPM restricted for subsequent year expenditures $ 4,848 Debt Service Fund Restricted for debt service $ 212,995 Restricted for debt service or capital projects 373, ,312 Capital Bonds Fund Restricted for capital projects 3,193,958 Committed $3,785,118 Unrestricted fund balances in governmental funds, other than the General Fund, are reported as committed for the purposes for which the respective funds were created as follows. Special Education Fund $ 9,359 Federal School Lunch Program Fund 2,571 Assigned $ 11,930 The General Fund has an assigned fund balance representing the $1,316,747 appropriated for the subsequent year to offset the excess of appropriated expenditures over estimated revenues and $48,238 assigned for future unemployment claims. $1,364,

70 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 12 - "NEVADA PLAN" For Financing Local Education Agencies: The "Nevada Plan" is the current means used to finance elementary and secondary education in Nevada's public schools. The process is one in which the state provides a guaranteed amount of funding to a local school district. The guarantee is made up of state support paid through the Distributive School Account and resources collected locally through a $.0225 local school support sales tax and $.75 ad valorem tax. Local school districts receive monthly apportionments of State support based on the average daily enrollment of children within the district. Each local school district is guaranteed a specific amount per pupil, which is developed through a formula that considers the demographic and geographic characteristics of the district. Transportation is included in the amount per pupil at the rate of 85% of actual historical cost to the District with an increase for inflation based on the Consumer Price Index. A wealth adjustment is made to the support per pupil based on the local school district's ability to generate revenues that are outside of the guaranteed level. Districts are protected financially from significant decreases in enrollment through "hold harmless" statutory provisions, which guarantee a district payment on a prior year enrollment if the current year enrollment is less. Note 13 Risk Management: The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters as are all entities. The District has joined together with similar public entities (cities, counties, school districts, and special districts) throughout the State of Nevada to create a pool under the Nevada Interlocal Cooperation Act. The Nevada Public Agency Insurance Pool (Pool) is a public-entity risk pool currently operating as a common-risk management and insurance program for its members. The District pays an annual premium and specific deductibles, as necessary, to the Pool for its general insurance coverage. The Pool is considered a self-sustaining risk pool that will provide property loss coverage for its members up to $200,000 per insured event. The Pool obtains independent coverage for insured events in excess of the $200,000 limit. The Pool also is considered a self-sustaining risk pool that will provide coverage for its members up to $500,000 per casualty insured event. The Pool obtains independent coverage for insured events in excess of the $500,000 limit. The District has joined together with similar public entities (cities, counties, school districts, and special districts) throughout the State of Nevada to create a pool under the Public Agency Compensation Trust (PACT) for workers compensation liabilities. The District pays an annual premium and there are no deductibles. The PACT is considered a self-sustaining risk pool that will provide coverage for its members based on established statutory limits. -60-

71 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 Note 13 Risk Management (continued): The District continues to carry commercial insurance for other risks of loss such as employee health and accident insurance. Settled claims from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. Note 14 - Subsequent Events: Management has evaluated subsequent events through October 20, 2017 which is the date the financial statements were available to be issued. Note 15 Contingencies: Federal and State Grants In the normal course of operations, the District receives grant funds both from federal and state agencies. These grants may be subject to compliance audits by the grantor agencies and ultimate retention of these monies is contingent upon satisfying the grantors that proper procedures were followed and that the resources were spent in accordance with grant requirements. Management does not anticipate any adjustments to these financial statements if compliance audits were conducted by these agencies. Note 16 - Compliance with Nevada Revised Statutes: The District conformed to all significant statutory constraints on its financial administration during the year as detailed in the Independent Auditor s Nevada Revised Statutes 354 Compliance Examination Report found on page

72 PERSHING COUNTY SCHOOL DISTRICT REQUIRED SUPPLEMENTARY INFORMATION OTHER POST-EMPLOYMENT BENEFITS - SCHEDULES OF OPEB FUNDING PROGRESS AND EMPLOYER CONTRIBUTIONS LAST SEVEN YEARS Schedule of OPEB Funding Progress Unfunded Actuarial Actuarial UAAL as a Fiscal Year Actuarial Actuarial Accrued Accrued Percentage Ended Valuation Value of Liability Liability Funded Covered of Covered Plan Name June 30, Date Plan Assets (AAL) (UAAL) Ratio Payroll Payroll Nevada /30/ $ 4,001,087 $ 4,001,087 - $ - N/A Public Employees /30/2011-3,948,442 3,948, N/A Benefits Program /30/2013-2,077,991 2,077, N/A /30/2013-2,034,156 2,034, N/A /30/2013-1,993,618 1,993, N/A /30/2016-1,665,916 1,665, N/A /30/2016-1,613,548 1,613, N/A Pershing County /30/ $ 612,443 $ 612,443 - $ 6,089, % School District /30/ , ,650-5,556, % Health Plan /30/ , ,607-5,568, % /30/ , ,688-5,791, % /30/2013-1,070,174 1,070,174-5,866, % /30/ , ,843-5,677, % /30/ , ,160-6,248, % Schedule of Employer Contributions Fiscal Year Annual Ended OPEB Actual Percentage Net OPEB June 30, Cost Contribution Contributed Obligation Nevada 2011 $ 231,383 $ 187, % $ 92,794 Public Employees , , % 200,262 Benefits Program , , % 191, , , % 189, , , % 197, , , % 178, , , % 171,231 Pershing County 2011 $ 74,482 $ - 0.0% $ 148,964 School District ,753 23, % 216,790 Health Plan ,202 28, % 291, ,717 39, % 361, ,233 48, % 429, ,854 37, % 475, ,232 40, % 522,

73 PERSHING COUNTY SCHOOL DISTRICT SCHEDULES OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND CONTRIBUTIONS NEVADA PUBLIC EMPLOYEES RETIREMENT SYSTEM LAST FOUR FISCAL YEARS* Schedule of District's Proportionate Share of the Net Pension Liability District's proportion of the net pension liability % % % % District's proportionate share of the net pension liability $ 12,698,979 $ 10,064,656 $ 10,965,631 $ 13,228,850 District's covered-employee payroll $ 5,528,217 $ 5,832,742 $ 5,738,431 $ 5,960,563 District's proportionate share of the net pension liability as a percentage of its covered-employee payroll 229.7% 172.6% 191.1% 221.9% Plan fiduciary net position as a percentage of the total pension liability 76.3% 76.3% 75.1% 72.2% * The above amounts presented for each fiscal year have a measurement date of June 30 of the preceding year. Schedule of District Contributions Statutorily required employer contribution $ 1,454,776 $ 1,501,931 $ 1,667,070 $ 1,727,581 Contributions in relation to the statutorily required contribution 1,454,776 1,501,931 1,667,070 1,727,581 Contribution deficiency $ - $ - $ - $ - District's covered-employee payroll $ 5,832,742 $ 5,738,431 $ 5,960,563 $ 6,169,676 Contributions as a percentage of covered payroll 24.9% 26.2% 28.0% 28.0% -63-

74 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Revenues Revenues from local sources Ad valorem taxes $ 981,475 $ 981,475 $ 930,098 $ (51,377) $ 866,932 Ad valorem taxes, net proceeds - - 2,585 2, ,021 Earnings on investments 4,000 4,000 16,600 12,600 6, , , ,283 (36,192) 1,070,181 Revenues from federal sources Interest subsidy 32,417 32,417 32, ,487 Total Revenues 1,017,892 1,017, ,840 (36,052) 1,102,668 Expenditures Undistributed expenditures: Support services: General administration Purchased services 2,600 2,600 1, ,800 Debt Service: Bonds: Principal retirement 235, , , ,000 Interest expense 195, , , ,801 Total Debt Service 430, , , ,801 Total Expenditures 433, , , ,601 Excess (Deficiency) of Revenues over Expenditures 584, , ,151 (35,252) 673,067 Other Financing Uses Transfer out to Capital Bond Fund 590, , , ,000 Excess (Deficiency) of Revenues over Expenditures and Other Uses (6,325) 68,840 33,588 (35,252) 143,067 Fund Balance, July 1 627, , , ,657 Fund Balance, June 30 $ 621,564 $ 621,564 $ 586,312 $ (35,252) $ 552,

75 CAPITAL BONDS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Revenues Revenues from local sources Motor vehicle privilege tax $ 163,307 $ 163,307 $ 159,791 $ (3,516) $ 150,670 Private grants - - 3,440 3,440 19, , , ,231 (76) 170,184 Revenues from federal sources Schools and Libraries E-rate program ,780 Total Revenues 163, , ,231 (76) 216,964 Expenditures Regular Programs Instruction Supplies ,381 (35,381) 1,673 Property 74,000 52,500-52,500 51,401 74,000 52,500 35,381 17,119 53,074 Undistributed Expenditures Support Services General Administration Supplies - - 2,155 (2,155) - Property - - 5,697 (5,697) ,852 (7,852) - Central Services Purchased services - - 3,440 (3,440) - Supplies 75,000 25,000-25,000 15,267 Property 68, , ,158 25,000 3,440 21,560 83,425 Operation and Maintenance of Plant Property ,206 Total Undistributed Expenditures 143,158 25,000 11,292 21, ,

76 CAPITAL BONDS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Facilities Acquisition and Construction Site Improvements Salaries $ - $ - $ 6,145 $ (6,145) $ - Benefits (613) - Purchased services 10, ,625 Supplies ,875 10,000-6,758 (6,758) 32,500 Building improvements Purchased services 663, , , , ,507 Supplies ,544 (12,544) 21,971 Property 130, ,000 96,867 33,133 51,658 Other - - 2,244 (2,244) - 793, , , , ,136 Total Facilities Acquisition and Construction 803, , , , ,636 Total Expenditures 1,020, , , , ,341 Excess (Deficiency) of Revenues over Expenditures (857,501) (717,193) (408,906) 308,287 (174,377) Other Financing Sources Transfer in from Debt Service Fund 590, , , ,000 Excess of Revenues and Other Sources over Expenditures (266,773) (201,630) 106, , ,623 Fund Balance, July 1 2,957,504 3,087,301 3,087,301-2,731,678 Fund Balance, June 30 $ 2,690,731 $ 2,885,671 $ 3,193,958 $ 308,287 $ 3,087,

77 COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2016) FEDERAL CLASS SIZE ADULT SCHOOL REDUCTION EDUCATION LUNCH TOTALS FUND FUND FUND Assets Cash and investments $ 35,758 $ 24,154 $ 2,873 $ 62,785 $ 82,043 Accounts receivable Due from other governments ,611 21,611 3,348 Total Assets $ 35,758 $ 24,154 $ 24,753 $ 84,665 $ 85,511 Liabilities Accounts payable $ $ 999 $ 1,244 $ 555 Accrued salaries and benefits 35,758 16,598 21,183 73,539 82,711 Due to other governments - 7,311-7,311 - Total Liabilities 35,758 24,154 22,182 82,094 83,266 Fund Balance Committed - - 2,571 2,571 2,245 Total Fund Balance - - 2,571 2,571 2,245 Total Liabilities and Fund Balance $ 35,758 $ 24,154 $ 24,753 $ 84,665 $ 85,

78 COMBINING STATEMENT OF REVENUES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) FEDERAL SCHOOL CLASS SIZE ADULT LUNCH REDUCTION EDUCATION PROGRAM TOTALS FUND FUND FUND Revenues Revenues from local sources $ - $ - $ 60,986 $ 60,986 $ 52,631 Revenues from state sources 177,291 1,157, ,335,027 1,233,268 Revenues from federal sources , , ,724 Total Revenues 177,291 1,157, ,332 1,561,707 1,441,623 Expenditures Regular programs 179, , ,673 Adult education programs - 1,157,084-1,157,084 1,042,992 Undistributed Operation of non-instructional services Food service program , , ,802 Total Expenditures 179,230 1,157, ,067 1,651,381 1,552,467 Excess (deficiency) of Revenues over Expenditures (1,939) - (87,735) (89,674) (110,844) Other Financing Sources (Uses) Transfers In ,000 90, ,983 Excess (Deficiency) of Revenues and Other Sources over Expenditures (1,939) - 2, (861) Fund Balance, July 1 1, ,245 3,106 Fund Balance, June 30 $ - $ - $ 2,571 $ 2,571 $ 2,

79 CLASS SIZE REDUCTION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 179,230 $ 177,291 $ 177,291 $ - $ 189,612 Total Revenues 179, , , ,612 Expenditures Regular Programs Instruction Salaries 117, , , ,071 Benefits 61,477 61,477 61,477-60,602 Total Instruction, Other Elementary 179, , , ,673 Total Expenditures 179, , , ,673 Excess (Deficiency) of Revenues over Expenditures - (1,939) (1,939) - 1,939 Fund Balance, July 1-1,939 1, Fund Balance, June 30 $ - $ - $ - $ - $ 1,

80 ADULT EDUCATION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Regular adult program $ - $ - $ 58,065 $ 58,065 $ 50,237 Adult program, corrections facility 1,164,396 1,164,396 1,099,019 (65,377) 992,755 Total Revenues 1,164,396 1,164,396 1,157,084 (7,312) 1,042,992 Expenditures Regular Adult Program Instruction Salaries 36,736 36,736 36,736-37,768 Benefits 21,329 21,329 21,329-12,469 Total Regular Adult Program 58,065 58,065 58,065-50,237 Corrections Facility Adult Program Instruction Salaries 566, , ,221 11, ,944 Benefits 237, , ,867 12, ,870 Purchased services 24,580 24,580 21,026 3,554 17,777 Supplies 45,824 45,824 52,869 (7,045) 56,385 Property - - 6,369 (6,369) - Other Total Instruction 874, , ,592 14, ,976 Direct Support Salaries 133, , ,685 (1,685) 130,987 Benefits 48,754 48,754 48,760 (6) 48,135 Purchased services 1,200 1,200 6,982 (5,782) - Other ,040 Intra-district services 48,443 48,443 48, ,617 Total Direct Support 231, , ,427 (7,030) 222,779 Total Correction Facility Adult Program 1,106,331 1,106,331 1,099,019 7, ,755 Total Expenditures 1,164,396 1,164,396 1,157,084 7,312 1,042,992 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $ - $

81 FEDERAL SCHOOL LUNCH PROGRAM FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Revenues Revenues from Local Sources Daily sales, lunch $ 52,100 $ 52,100 $ 31,732 $ (20,368) $ 36,893 Daily sales, breakfast ,563 24,563 14,206 Daily sales, staff and guests - - 3,113 3,113 - Daily sales, alacarte and vending - - 1,078 1,078 1,532 Donations ,100 52,100 60,986 8,886 52,631 Revenues from State Sources State food assistance program (159) 664 Revenues from Federal Sources Lunch reimbursement program 105, ,000 92,689 (12,311) 106,039 Breakfast reimbursement program 35,000 35,000 58,979 23,979 40,419 Commodity foods value 10,000 10,000 14,026 4,026 9, , , ,694 15, ,724 Total Revenues 202, , ,332 24, ,019 Expenditures Food Services Salaries 106, ,000 91,554 14,446 98,832 Benefits 59,700 59,700 51,492 8,208 53,560 Purchased services 2,150 2,150 2,600 (450) 1,485 Supplies 144, , ,355 19, ,547 Supplies - commodity food ,330 (32,330) 23,769 Other ,736 (1,486) 609 Total Expenditures 312, , ,067 7, ,802 Excess (Deficiency) of Revenues over Expenditures (109,300) (119,606) (87,735) 31,871 (112,783) Other Financing Sources Transfer in from General Fund 109, ,300 90,000 (29,300) 109,983 Excess (Deficiency) of Revenues & Other Sources over Expenditures - (306) 2,265 2,571 (2,800) Fund Balance, July ,106 Fund Balance, June 30 $ - $ - $ 2,571 $ 2,571 $

82 STUDENT SCHOLARSHIP PAYMENT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGETED AMOUNT ORIGINAL FINAL ACTUAL VARIANCE 2016 Additions Local Sources Earnings on investments $ 81 $ 81 $ 260 $ 179 $ 111 Deductions Undistributed Expenditures Student scholarship payments 15,000 15,000 8,750 6,250 1,500 Change in Net Assets (14,919) (14,919) (8,490) 6,429 (1,389) Net Assets, July 1 17,397 17,397 30,928 13,531 32,317 Net Assets, June 30 $ 2,478 $ 2,478 $ 22,438 $ 19,960 $ 30,

83 ASSOCIATED STUDENT ACTIVITY FUNDS SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2017 BALANCE BALANCE JULY 1, JUNE 30, 2016 ADDITIONS DEDUCTIONS 2017 HIGH SCHOOL STUDENT ACTIVITY FUND Assets Cash and investments $ 130,770 $ 236,613 $ 219,604 $ 147,779 Liabilities Due to student groups $ 130,770 $ 236,613 $ 219,604 $ 147,779 MIDDLE SCHOOL STUDENT ACTIVITY FUND Assets Cash and investments $ 25,196 $ 26,184 $ 28,941 $ 22,439 Liabilities Due to student groups $ 25,196 $ 26,184 $ 28,941 $ 22,439 ELEMENTARY SCHOOL STUDENT ACTIVITY FUND Assets Cash and investments $ 25,587 $ 37,056 $ 31,251 $ 31,392 Liabilities Due to student groups $ 25,587 $ 37,056 $ 31,251 $ 31,392 DISTRICT STUDENT ACTIVITY FUND Assets Cash and investments $ 28,896 $ 15,566 $ 4,914 $ 39,548 Liabilities Due to student groups $ 28,896 $ 15,566 $ 4,914 $ 39,548 TOTAL STUDENT ACTIVITY FUNDS Assets Cash and investments $ 210,449 $ 315,419 $ 284,710 $ 241,158 Liabilities Due to student groups $ 210,449 $ 315,419 $ 284,710 $ 241,

84 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BY GRANT FEDERAL GRANTS FUND FOR THE YEAR ENDED JUNE 30, 2017 (PAGE 1 OF 2) SCHOOL SMALL CLIMATE CARL FRESH RURAL TRANS- PERKINS FRUIT AND GEAR-UP SCHOOLS FORMATION BASIC VEGETABLES PROGRAM GRANT GRANT GRANT GRANT GRANT Revenues Revenues from federal sources $ 27,031 $ 13,399 $ 9,944 $ 16,517 $ 48,920 Total Revenues 27,031 13,399 9,944 16,517 48,920 Expenditures Regular programs 27,031 12, ,659 Special programs Vocational programs - - 9, Adult programs Undistributed Support services Student support Instructional staff support Central services - 1, Operations and maintenance of plant Operation of non-instructional services Food service program ,517 - Total Expenditures 27,031 13,399 9,944 16,517 48,920 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $ - $ -

85 TITLE IIA TITLE 1, PART A TITLE I TITLE 1, PART C TIME IS NOW TEACHER/ BASIC FOCUS MIGRANT - PROJECT PRINCIPAL EDUCATION SCHOOLS EDUCATION AWARE TRAINING GRANT GRANT GRANT GRANT GRANT $ 162,482 $ - $ 7,000 $ 272,651 $ 33, ,482-7, ,651 33, ,482-7,000 6,207 33, , , ,482-7, ,651 33, $ - $ - $ - $ - $

86 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BY GRANT FEDERAL GRANTS FUND FOR THE YEAR ENDED JUNE 30, 2017 (PAGE 2 OF 2) IDEA, PART B IDEA, PART B EARLY IDEA, PART B LIBARARY LOCAL CHILDHOOD SPECIAL SERVICES AND PLAN FLOW-THROUGH PROJECTS TECHNOLOGY GRANT GRANT GRANT GRANT Revenues Revenues from federal sources $ 190,709 $ 9,161 $ 9,154 $ 19,098 Total Revenues 190,709 9,161 9,154 19,098 Expenditures Regular programs Special programs 190,709 9,161 9,154 - Vocational programs Adult programs Undistributed Support services Student support Instructional staff support ,098 Central services Operations and maintenance of plant Operation of non-instructional services Food service program Total Expenditures 190,709 9,161 9,154 19,098 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $ -

87 CHILD NEVADA SCOOL PROGRAM FOR NUTRITION EMERGENCY NEGLECTED AND DISCRETIONARY MANAGEMENT DELINQUENT YOUTH GRANT GRANT GRANT TOTAL $ 10,431 $ 1,011 $ 46,182 $ 877,235 10,431 1,011 46, , , , , ,937 43, , , ,245 14,183-1,011-1,011 10, ,948 10,431 1,011 46, , $ - $ - $ - $

88 SMALL RURAL SCHOOL GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources Small Rural Schools $ 27,031 $ 27,031 $ - $ 27,031 Total Revenues 27,031 27,031-27,031 Expenditures Regular Programs Instruction Supplies 27,031 27,031-27,031 Total Expenditures 27,031 27,031-27,031 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

89 SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES - SCHOOL CLIMATE TRANSFORMATION GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources Positive Behavioral Interventions and Supports $ 16,272 $ 13,399 $ (2,873) $ 25,662 Total Revenues 16,272 13,399 (2,873) 25,662 Expenditures Regular Programs Instruction Salaries ,400 Benefits Purchased services ,910 Supplies 9,090 8,090 1,000 10,604 Other Indirect costs 802 1,025 (223) 668 Total Instruction 10,461 9, ,352 Direct Support - Guidance Salaries Purchased services Total Direct Support - Guidance Direct Support - School Administration Salaries 2,877 2, Benefits Purchased services ,051 Supplies 2,362 1,148 1, Other Total Direct Support - School Administration 5,811 3,734 2,077 4,978 Total Expenditures 16,272 13,399 2,873 25,662 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

90 P.L CARL PERKINS BASIC GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources Vocational Education $ 9,944 $ 9,944 $ - $ 11,722 Total Revenues 9,944 9,944-11,722 Expenditures Vocational Programs Instruction Supplies 9,944 9,944-11,722 Total Expenditures 9,944 9,944-11,722 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

91 FRESH FRUIT AND VEGETABLES GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources Fresh Fruit and Vegetables $ 16,601 $ 16,517 $ (84) $ 17,023 Total Revenues 16,601 16,517 (84) 17,023 Expenditures Operation of Non-Instructional Services Food Services Salaries Supplies 16,051 16, ,285 Total Expenditures 16,601 16, ,023 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

92 GEAR-UP PROGRAM GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources Gear-Up Program $ 60,000 $ 48,920 $ (11,080) $ 64,508 Total Revenues 60,000 48,920 (11,080) 64,508 Expenditures Regular Programs Instruction Salaries 4,700 4,871 (171) 5,610 Benefits Purchased services 25,609 22,404 3,205 23,574 Supplies 12,698 12, ,783 Other 5,460-5,460 - Indirect costs (261) ,217 39,819 9,398 52,159 Student Support Salaries 9,000 8, ,358 Benefits Purchased services 1, ,225 1,575 Supplies (698) - 10,713 9,101 1,612 12,349 School Administration Purchased services Total Expenditures 60,000 48,920 11,080 64,508 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

93 TITLE I, PART A - BASIC EDUCATION GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources Title I-A, Basic Education $ 165,015 $ 162,482 $ (2,533) $ 173,944 Total Revenues 165, ,482 (2,533) 173,944 Expenditures Regular Programs Instruction Salaries 88,376 85,057 3,319 83,157 Benefits 65,230 67,869 (2,639) 73,284 Purchased services Supplies 11,409 9,556 1,853 16,823 Total Expenditures 165, ,482 2, ,944 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

94 TITLE I - FOCUS SCHOOLS GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources Title I-A, Basic Education $ - $ - $ - $ 23,034 Total Revenues ,034 Expenditures Regular Programs Instruction Salaries ,374 Benefits Purchased services ,413 Supplies ,615 Other Indirect costs ,124 Total Expenditures ,034 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

95 TITLE I, PART C - MIGRANT EDUCATION GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources Title I-C, Migrant Education $ 7,000 $ 7,000 $ - $ 9,000 Total Revenues 7,000 7,000-9,000 Expenditures Regular Programs Instruction Salaries 7,000 7,000-9,000 Total Expenditures 7,000 7,000-9,000 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

96 NOW IS THE TIME - PROJECT AWARE GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources School Climate Implementation $ 502,112 $ 272,651 $ (229,461) $ 167,956 Total Revenues 502, ,651 (229,461) 167,956 Expenditures Regular Programs Instruction Salaries 2,400 3,207 (807) 539 Benefits (172) 54 Supplies 5,708 2,708 3,000 - Total Instruction 8,228 6,207 2, Undistributed expenditures: Support Services Student Support Salaries 234, , ,113 96,266 Benefits 96,082 58,454 37,628 39,700 Purchased services 91,600 43,724 47,876 19,258 Supplies 45,257 21,209 24,048 10,539 Total Student Support 467, , , ,763 Central Services Indirect costs 26,427 10,652 15,775 1,600 Total Central Services 26,427 10,652 15,775 1,600 Total Support Services 493, , , ,363 Total Expenditures 502, , , ,956 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

97 TITLE IIA - TEACHER/PRINCIPAL TRAINING GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources Title IIA - Teacher/Principal Training $ 57,489 $ 33,545 $ (23,944) $ 22,673 Total Revenues 57,489 33,545 (23,944) 22,673 Expenditures Regular Programs Instruction Salaries 13,060 9,238 3,822 7,279 Benefits Purchased services 4, ,916 - Supplies 39,600 23,419 16,181 15,106 Total Expenditures 57,489 33,545 23,944 22,673 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

98 IDEA, PART B - LOCAL PLAN GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources IDEA Part B - Local Plan $ 206,703 $ 190,709 $ (15,994) $ 168,249 Total Revenues 206, ,709 (15,994) 168,249 Expenditures Special Programs Instruction Salaries 129, ,551 18,146 98,111 Benefits 77,006 79,158 (2,152) 70,138 Total Expenditures 206, ,709 15, ,249 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

99 IDEA, PART B - EARLY CHILDHOOD FLOW-THROUGH GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources IDEA Part B - Flow Through $ 16,136 $ 9,161 $ (6,975) $ 8,931 Total Revenues 16,136 9,161 (6,975) 8,931 Expenditures Special Programs Instruction Salaries 6,700 2,327 4,373 2,501 Benefits Purchased services 3,245 2, ,717 Supplies 5,491 4,243 1,248 4,585 Total Expenditures 16,136 9,161 6,975 8,931 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

100 IDEA, PART B - SPECIAL PROJECTS GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources IDEA, Part B - Special Projects $ 9,708 $ 9,154 $ (554) $ 4,170 Total Revenues 9,708 9,154 (554) 4,170 Expenditures Special Programs Instruction Salaries 8,807 8, Benefits Purchased services ,170 Total Expenditures 9,708 9, ,170 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

101 LIBRARY SERVICES AND TECHNOGOLY GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources Library services and technology $ 19,098 $ 19,098 $ - $ - Total Revenues 19,098 19, Expenditures Undistributed expenditures: Support Services Instructional Staff Support Supplies 3,807 3, Property 15,291 15, Total Expenditures 19,098 19, Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

102 CHILD NUTRITION DISCRETIONARY GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources Equipment Assistance $ 10,449 $ 10,431 $ (18) $ - Total Revenues 10,449 10,431 (18) - Expenditures Food Services Property 10,449 10, Total Expenditures 10,449 10, Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

103 SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES - NEVADA SCHOOL EMERGENCY MANAGEMENT GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources Nv School Emergency Management $ 1,970 $ 1,011 $ (959) $ - Total Revenues 1,970 1,011 (959) - Expenditures Undistributed expenditures: Support Services Operation and Maintenance of Plant Purchased services 1,970 1, Total Expenditures 1,970 1, Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

104 This page is intentionally blank.

105 TITLE I, PART D - PROGRAM FOR NEGLECTED AND DELINQUENT YOUTH GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from Federal Sources Title I-D, Program for Neglected and Delinquent Youth $ 53,663 $ 46,182 $ (7,481) $ - Total Revenues 53,663 46,182 (7,481) - Expenditures Adult Programs Instruction Salaries 27,625 27, Benefits 20,483 13,312 7,171 - Supplies 3,000 3, Indirect costs 2,555 2, Total Expenditures 53,663 46,182 7,481 - Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

106 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BY GRANT STATE GRANTS FUND FOR THE YEAR ENDED JUNE 30, 2017 (PAGE 1 OF 2) CAREER AND TECHNICAL TEACHER FAMILY FULL-DAY EDUCATION SUPPLIES RESOURCE KINDERGARTEN ALLOCATION REIMBURSEMENT CENTER PROGRAM GRANT GRANT GRANT GRANT Revenues Revenues from state sources $ 18,958 $ 3,549 $ - $ 302,842 Total Revenues 18,958 3, ,842 Expenditures Regular programs - 3, ,842 Special programs Vocational programs 18, Adult programs Undistributed Support services Instructional staff support Central services Operation of non-instructional services Food service program Total Expenditures 18,958 3, ,842 Excess (deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $ -

107 ELEMENTARY GIFTED EARLY ENGLISH SUBSTANCE AND CHILDHOOD LANGUAGE LIBRARY ABUSE TALENTED PRESCHOOL LEARNERS BOOKS PREVENTION GRANT GRANT GRANT GRANT GRANT $ 507 $ 120,664 $ 32,257 $ 802 $ ,664 32, ,664 32, ,664 32, $ - $ - $ - $ - $

108 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BY GRANT STATE GRANTS FUND FOR THE YEAR ENDED JUNE 30, 2017 (PAGE 2 OF 2) SCHOOL LUNCH EDUCATION SCHOOL PROGRAM TECHNOLOGY - COUNSELOR NEVADA MATCHING NEVADA READY 5% EXTRA HUMANITIES GRANT GRANT GRANT GRANT Revenues Revenues from state sources $ 655 $ 54,000 $ 1,679 $ 733 Total Revenues ,000 1, Expenditures Regular programs - - 1, Special programs Vocational program Adult programs Undistributed Support services Instructional staff support Central services - 54, Operation of non-instructional services Food service program Total Expenditures ,000 1,679 - Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $ 733

109 SAFE AND BREAKFAST READ BY ELEMENTARY HEALTHY TURN AFTER GRADE 3 COUNSELOR STUDENTS AROUND THE BELL GRANT GRANT GRANT GRANT GRANT TOTAL $ 187,433 $ 50,000 $ - $ 13,396 $ - $ 787, ,433 50,000-13, ,475 67,146 50,000-13, , , , , , ,433 50,000-13, , $ - $ - $ - $ - $ - $

110 CAREER AND TECHNICAL EDUCATION ALLOCATION GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 18,958 $ 18,958 $ - $ 14,462 Total Revenues 18,958 18,958-14,462 Expenditures Vocational Programs Instruction Supplies 13,158 13,158-8,585 Property 5,800 5,800-5,877 Total Expenditures 18,958 18,958-14,462 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

111 TEACHER SUPPLIES REIMBURSEMENT GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 7,143 $ 3,549 $ (3,594) $ 5,856 Total Revenues 7,143 3,549 (3,594) 5,856 Expenditures Regular Programs Instruction Supplies 6,404 3,426 2,978 5,856 Total Regular Programs 6,404 3,426 2,978 5,856 Adult Programs Instruction Supplies Total Adult Programs Total Expenditures 7,143 3,549 3,594 5,856 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

112 FAMILY RESOURCE CENTER GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ - $ - $ - $ 18,459 Total Revenues ,459 Expenditures Regular Programs Instruction Salaries ,575 Benefits Purchased services Supplies ,601 Indirect cost allocation ,367 Total Expenditures ,459 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

113 FULL-DAY KINDERGARTEN PROGRAM GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 302,842 $ 302,842 $ - $ 240,373 Total Revenues 302, , ,373 Expenditures Regular Programs Instruction Salaries 202, , ,854 Benefits 100, ,103-74,519 Total Expenditures 302, , ,373 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

114 GIFTED AND TALENTED GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 807 $ 507 $ (300) $ 416 Total Revenues (300) 416 Expenditures Special Programs Instruction Supplies Total Expenditures Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

115 EARLY CHILDHOOD PRESCHOOL GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 120,664 $ 120,664 $ - $ 119,336 Total Revenues 120, , ,336 Expenditures Regular Programs Instruction Salaries 80,902 81,105 (203) 73,784 Benefits 39,762 39, ,424 Supplies ,128 Total Expenditures 120, , ,336 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

116 ELEMENTARY ENGLISH LANGUAGE LEARNERS GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 32,668 $ 32,257 $ (411) $ 31,025 Total Revenues 32,668 32,257 (411) 31,025 Expenditures Regular Programs Instruction Salaries 23,726 25,334 (1,608) 21,221 Benefits Purchased services 1,490 1,490-2,010 Supplies 6,867 4,865 2,002 4,815 Other ,270 Indirect costs ,500 Total Expenditures 32,668 32, ,025 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

117 LIBRARY BOOKS GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 802 $ 802 $ - $ 808 Total Revenues Expenditures Regular Programs Direct Support - Library Supplies Total Expenditures Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

118 SUBSTANCE ABUSE PREVENTION GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ - $ - $ - $ 6,000 Total Revenues ,000 Expenditures Regular Programs Instruction Supplies ,500 Indirect costs ,500 Total Expenditures ,000 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

119 SCHOOL LUNCH PROGRAM MATCHING GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 655 $ 655 $ - $ - Total Revenues Expenditures Operation of Non-instructional Services Food service program Supplies Total Expenditures Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

120 EDUCATION TECHNOLOGY NEVADA READY GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 54,000 $ 54,000 $ - $ - Total Revenues 54,000 54, Expenditures Support Services Central Services Purchases services, network 54,000 54, Total Expenditures 54,000 54, Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

121 SCHOOL COUNSELOR 5% EXTRA GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 1,679 $ 1,679 $ - $ 1,604 Total Revenues 1,679 1,679-1,604 Expenditures Regular Programs Direct Support - Guidance Salaries 1,679 1,679-1,604 Total Expenditures 1,679 1,679-1,604 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

122 NEVADA HUMANITIES GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 1,000 $ 733 $ (267) $ - Total Revenues 1, (267) - Expenditures Regular Programs Instruction Supplies 1, Total Expenditures 1, Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

123 READ BY GRADE 3 GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 201,387 $ 187,433 $ (13,954) $ - Total Revenues 201, ,433 (13,954) - Expenditures Regular Programs Instruction Salaries 10,400 1,572 8,828 - Benefits (37) - Supplies 68,094 65,487 2,607 - Total Instruction 78,544 67,146 11,398 - Direct Support - Instructional Staff Salaries 82,921 82, Benefits 34,422 34, Purchased services Supplies 5,000 3,247 1,753 - Total Direct Support - Instructional Staff 122, ,287 2,556 - Total Expenditures 201, ,433 13,954 - Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

124 ELEMENTARY COUNSELOR GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 50,000 $ 50,000 $ - $ 50,000 Total Revenues 50,000 50,000-50,000 Expenditures Regular Programs Direct Support - Guidance Salaries 50,000 50,000-35,000 Benefits ,000 Total Expenditures 50,000 50,000-50,000 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

125 SAFE AND HEALTHY STUDENTS GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ - $ - $ - $ 1,877 Total Revenues ,877 Expenditures Regular Programs Instruction Salaries Benefits Purchased services ,523 Total Expenditures ,877 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

126 TURN AROUND GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ 14,936 $ 13,396 $ (1,540) $ 5,478 Total Revenues 14,936 13,396 (1,540) 5,478 Expenditures Regular Programs Instruction Salaries 5,920 5,922 (2) - Benefits Purchased services 2,790 2, ,160 8, Direct Support - Guidance Salaries 1,500 1, Benefits (4) - Purchased services 3,951 2,883 1,068 5,088 Supplies ,476 4,412 1,064 5,478 Direct Support - School Administration Purchased services Total Expenditures 14,936 13,396 1,540 5,478 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

127 BREAKFAST AFTER THE BELL GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2016) BUDGET ACTUAL VARIANCE 2016 Revenues Revenues from State Sources Special appropriations $ - $ - $ - $ 2,567 Total Revenues ,567 Expenditures Food services Supplies ,567 Total Expenditures ,567 Excess (Deficiency) of Revenues over Expenditures Fund Balance, July Fund Balance, June 30 $ - $ - $ - $

128 This page is intentionally blank.

129 PERSHING COUNTY SCHOOL DISTRICT GOVERNMENT-WIDE NET POSITION LAST FOUR YEARS (Unaudited) 4,000,000 $3,506,492 $3,536,070 3,500,000 3,000,000 $2,331,990 $2,227,056 2,500,000 Dollars 2,000,000 1,500,000 1,000, ,

130 PERSHING COUNTY SCHOOL DISTRICT GENERAL FUND ENDING FUND BALANCES LAST TEN YEARS (Unaudited) 3,000,000 $2,469,628 $2,444,971 2,500,000 $1,989,765 $2,033,187 $2,040,234 $2,146,959 $2,116,271 2,000,000 $1,464,995 $1,587,238 Dollars 1,500,000 $1,151,463 1,000, ,

131 PERSHING COUNTY SCHOOL DISTRICT GENERAL FUND REVENUES AND OTHER SOURCES, EXPENDITURES AND OTHER USES, AND FUND BALANCES LAST TEN YEARS (Unaudited) 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 Dollars 4,000,000 3,000,000 2,000,000 1,000, Revenues & Other Sources 8,382,698 8,568,396 8,096,801 7,768,478 8,206,105 8,393,065 7,517,644 7,724,670 8,428,576 7,369,569 Expenditures & Other Uses 8,422,784 8,254,864 7,974,558 7,365,951 8,162,683 7,956,624 7,732,341 7,832,642 8,130,564 7,698,269 Fund Balance 1,151,463 1,464,995 1,587,238 1,989,765 2,033,187 2,469,628 2,254,931 2,146,959 2,444,971 2,116,271 Revenues & Other Sources Expenditures & Other Uses Fund Balance -115-

132 PERSHING COUNTY SCHOOL DISTRICT SPECIAL EDUCATION FUND EXPENDITURES LAST TEN YEARS (Unaudited) 1,500,000 1,300,000 $1,230,262 $1,235,307 $1,307,027 $1,272,964 $1,289,303 $1,301,937 $1,183,078 $1,308,238 $1,322,198 $1,239,704 1,100, ,000 Dollars 700, , , ,000 (100,000)

133 PERSHING COUNTY SCHOOL DISTRICT DEBT SERVICE FUND ENDING FUND BALANCES LAST TEN YEARS (Unaudited) 1,800,000 $1,544,700 1,600,000 $1,461,062 $1,429,115 1,400,000 1,200,000 Dollars 1,000,000 $776,632 $901, ,000 $558,992 $552,724 $586, ,000 $444,200 $409, , ,

134 PERSHING COUNTY SCHOOL DISTRICT STATEWIDE AVERAGE AND OVERLAPPING TAX RATES (USING HIGHEST OVERLAPPING TAX RATE IN DISTRICT) LAST TEN YEARS (Unaudited) Average Statewide Rate $ $ $ $ $ $ $ $ $ $ Lovelock $ $ $ $ $ $ $ $ $ $ Pershing County Pershing County School District Pershing County Hospital District State of Nevada Totals $ $ $ $ $ $ $ $ $ $ Source: Nevada Department of Taxation annual publication; Property Tax Rates for Nevada Local Governments -118-

135 PERSHING COUNTY SCHOOL DISTRICT STUDENT POPULATION LAST TEN YEARS (Unaudited) Fiscal Year Student Population Percentage Decrease % % % % % % % % * % * -2.10% * Beginning in 2016, the State of Nevada began funding school districts based on average daily enrollment. Prior to 2016, funding was based on the number of students enrolled on the last day of the first school month. Source: Pershing County School District -119-

136 PERSHING COUNTY SCHOOL DISTRICT ASSESSED VALUATION LAST TEN YEARS (Unaudited) Total Percent Fiscal Assessed Net Proceeds Assessed of Year Valuation of Mines Valuation Change 2008 $ 161,199,951 $ 30,000,000 $ 191,199, % ,359,144 30,000, ,359, % ,302,037 18,434, ,736, % ,026,824 16,734, ,761, % ,990,446 12,425, ,416, % ,993,948 32,442, ,436, % ,495, ,006, ,501, % ,536,706 36,187, ,724, % ,516,076 18,036, ,552, % ,772,314 44,356, ,128, % Source: Nevada Department of Taxation, Property Tax Rates for Nevada Local Goernments for fiscal years

137 PERSHING COUNTY SCHOOL DISTRICT STATUTORY DEBT CAPACITY LAST TEN YEARS (Unaudited) Outstanding Additional General Statutory Fiscal Assessed Debt Obligation Debt Year Valuation Limit Debt Capacity 2008 $ 191,199,951 $ 28,679,993 $ 2,382,000 $ 26,297, ,359,144 30,653,872 4,613,000 26,040, ,736,183 31,160,427 5,819,000 25,341, ,761,093 30,864,164 5,000,000 25,864, ,416,225 30,962,434 4,890,000 26,072, ,436,666 35,465,500 4,775,000 30,690, ,501,979 48,825,297 4,565,000 44,260, ,724,599 42,558,690 4,350,000 38,208, ,552,819 38,032,923 4,125,000 33,907, ,128,604 45,169,291 3,890,000 41,279,291 Source: Nevada Department of Taxation, Property Tax Rates for Nevada Local Governments for fiscal years and the Pershing County School District -121-

138 PERSHING COUNTY SCHOOL DISTRICT GENERAL FUND REVENUES BY MAJOR SOURCE (Unaudited) Federal Revenues 2.2% Motor Vehicle Tax 8.1% Ad valorem Taxes 23.7% Net Proceeds of Mines 0.1% Local School Support 10.2% State Revenues 55.0% Private Grants & Donations 0.0% Other Local Revenues 0.7% -122-

139 PERSHING COUNTY SCHOOL DISTRICT GENERAL FUND EXPENDITURES BY FUNCTION (Unaudited) Transfers to other funds 7.9% Student Transportation 9.0% Regular Programs 44.5% Operations and Maintenance of Plant 13% Business Office 7.8% School Administration 7.8% General Administration 2.9% Vocational Programs 2.2% Debt Service Student Support 0.8% 1.4% Other Programs 1.9% -123-

140 PERSHING COUNTY SCHOOL DISTRICT GENERAL FUND EXPENDITUES BY OBJECT AND OPERATING TRANSFERS (Unaudited) Purchased services 8.4% Operating transfers Debt service 7.9% 0.8% Supplies 6.1% Other 0.4% Property 1.3% Salaries 50.5% Employee benefits 24.6% -124-