COMPREHENSIVE ANNUAL FINANCIAL REPORT OF UPPER … · Upper Deerfield Township School District...

COMPREHENSIVE ANNUAL

FINANCIAL REPORT

OF

UPPER DEERFIELD TOWNSHIP

BOARD OF EDUCATION

UPPER DEERFIELD TOWNSHIP, NEW JERSEY

FOR THE FISCAL YEAR ENDED JUNE 30, 2016

Prepared by

Township of Upper Deerfield Township Board of Education

Finance Department

UPPER DEERFIELD TOWNSHIP SCHOOL DISTRICT

OUTLINE OF CAFR

INTRODUCTORY SECTION

Page

Letter of Transmittal

Roster of Officials

Consultants and Advisors

Organizational Chart

FINANCIAL SECTION

Independent Auditor’s Report 1-3

Required Supplementary Information - Part 1

Management’s Discussion and Analysis

Basic Financial Statements

A. District/Charter School-Wide Financial Statements:

A-1 Statement of Net Position 4

A-2 Statement of Activities 5

B. Fund Financial Statements:

Governmental Funds:

B-1 Balance Sheet 6

B-2 Statement of Revenues, Expenditures and Changes in Fund Balances 7

B-3 Reconciliation of the Statement of Revenues, Expenditures and Changes

In Fund Balances of Governmental Funds to the Statement of

Activities 8

Proprietary Funds:

B-4 Statement of Net Position 9

B-5 Statement of Revenues, Expenses and Changes in Fund Net Position 10

B-6 Statement of Cash Flows 11

Fiduciary Funds:

B-7 Statement of Fiduciary Net Position

12

B-8 Statement of Changes in Fiduciary Net Position 13

Notes to Financial Statements 14-37

Required Supplementary Information – Part II

C. Budgetary Comparison Schedules:

C-1 Budgetary Comparison Schedule – General Fund 38-46

C-1a Combining Schedule of Revenues, Expenditures, and Changes in Fund

Balance – Budget and Actual N/A

C-1b Education Jobs Fund Program – Budget and Actual N/A

C-2 Budgetary Comparison Schedule – Special Revenue Fund 47


OUTLINE OF CAFR

(Continued)

Page

Notes to the Required Supplementary Information – Part II

C-3 Budget-to-GAAP Reconciliations 48

Required Supplementary Information – Part III

L. Schedules Related to Accounting and Reporting for Pensions (GASB 68)

L-1 Schedule of the District’s Proportionate Share of the Net Pension 49

Liability – PERS

L-2 Schedule of District Contribution – PERS & TPAF 50

L-3 Schedule of the District’s Proportionate Share of the Net Pension

Liability – TPAF 51

Note to the Required Supplementary Information – Part III 52

Other Supplementary Information

D. School Based Budget Schedules:

D-1 Combining Balance Sheet N/A

D-2 Blended Resource Fund – Schedule of Expenditures Allocated

By Resource Type – Actual N/A

D-3 Blended Resource Fund – Schedule of Blended Expenditures –

Budget and Actual N/A

E. Special Revenue Fund:

E-1 Combining Schedule of Program Revenues and Expenditures Special

Revenue Fund – Budgetary Basis 53

E-2 Pre-School Education Aid Schedule(s) of Expenditures – Budgetary Basis 54

F. Capital Projects Fund:

F-1 Summary Schedule of Project Expenditures 55

F-2 Summary Schedule of Revenues, Expenditures, and Changes in Fund Balance –

Budgetary Basis 56

F-2a Schedule of Project Revenues, Expenditures, Project Balance, and Project

Status – Budgetary Basis – Charles F. Seabrook Elementary School: HVAC,

Roof, Security 57

F-2b Schedule of Project Revenues, Expenditures, Project Balance and Project

Status – Budgetary Basis – Elizabeth F. Moore School: HVAC, Roof,

Security 58

F-2c Schedule of Project Revenues, Expenditures, Project Balance, and Project

Status - Budgetary Basis – Woodruff Elementary School: HVAC, Roof,

Door/Window Replacement 59

G. Proprietary Funds:

Enterprise Fund:

G-1 Combining Schedule of Net Position 60

G-2 Combining Schedule of Revenues, Expenses and Changes in Fund Net Position 61

G-3 Combining Schedule of Cash Flows 62


OUTLINE OF CAFR

(Continued)

Page

H. Internal Service Fund:

G-4 Combining Schedule of Net Position 63

G-5 Combining Schedule of Revenues, Expenses and Changes in Fund Net Position 64

G-6 Combining Schedule of Cash Flows 65

I. Fiduciary Fund:

H-1 Combining Statement of Fiduciary Net Position 66

H-2 Combining Statement of Changes in Fiduciary Net Position 67

H-3 Student Activity Agency Fund Schedule of Receipts and Disbursements 68

H-4 Payroll Agency Fund Schedule of Receipts and Disbursements 69

J. Long-Term Debt:

I-1 Schedule of Serial Bonds 70

I-2 Schedule of Obligations Under Capital Leases N/A

I-3 Debt Service Fund Budgetary Comparison Schedule 71

Statistical Section

Financial Trends

J-1 Net Position by Component 72

J-2 Changes in Net Position 73-74

J-3 Fund Balances – Governmental Funds 75

J-4 Changes in Fund Balances – Governmental Funds 76-77

J-5 General Fund Other Local Revenue by Source 78

Revenue Capacity

J-6 Assessed Value and Estimated Actual Value of Taxable Property 79

J-7 Direct and Overlapping Property Tax Rates 80

J-8 Principal Property Taxpayers* 81

J-9 Property Tax Levies and Collections 82

Debt Capacity

J-10 Ratios of Outstanding Debt by Type 83

J-11 Ratios of Net General Bonded Debt Outstanding 84

J-12 Direct and Overlapping Governmental Activities Debt 85

J-13 Legal Debt Margin Information 86

Demographic and Economic Information

J-14 Demographic and Economic Statistics 87

J-15 Principal Employers 88

Operating Information

J-16 Full-Time Equivalent District/Charter School Employees by

Function/Program 89

J-17 Operating Statistics 90

J-18 School Building Information 91

J-19 Schedule of Required Maintenance Expenditures by School Facility 92

J-20 Insurance Schedule 93-94


OUTLINE OF CAFR

(Continued)

SINGLE AUDIT SECTION

K-1 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 95-96

K-2 Report on Compliance For Each Major Program; Report on Internal Control

Over Compliance 97-99

K-3 Schedule of Expenditures of Federal Awards, Schedule A 100-101

K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 102-103

K-5 Notes to the Schedules of Awards and Financial Assistance 104-105

K-6 Schedule of Findings and Questioned Costs 106-109

K-7 Summary Schedule of Prior Audit Findings 110

INTRODUCTORY SECTION

November 18, 2016

Honorable President and

Members of the Board of Education

Upper Deerfield Township School District

Seabrook, NJ 08302

Dear Board Members:

The comprehensive annual financial report of the Upper Deerfield Township School District for

the fiscal year ended June 30, 2016, is hereby submitted. Responsibility for both the accuracy of the data

and completeness and fairness of the presentation, including all disclosures, rests with the management of

the Upper Deerfield Township Board of Education. To the best of our knowledge and belief, the data

presented in this report is accurate in all material respects and is reported in a manner designated to

present fairly the financial position and results of operations of the various funds and account groups of

the District. All disclosures necessary to enable the reader to gain an understanding of the District’s

financial activities have been included.

The comprehensive annual financial report is presented in four sections: introductory, financial,

statistical and single audit. The introductory section includes this transmittal letter, the District’s

organizational chart and a list of principal officials. The financial section includes the general-purpose

financial statements and schedules, as well as the auditor’s report thereon. The statistical section includes

selected financial and demographic information, generally presented on a multi-year basis. The District is

required to undergo an annual single audit in conformity with the provisions of the Single Audit Act

Revisions of 1996 and the U.S. Office of Management and Budget, the Uniform Administrative

Requirements for Federal Awards 2 CFR 200 and NJ Treasury Circular OMB 15-08 OMB, “Single Audit

Policy for Recipients of Federal Grants, State Grants and State Aid Payments”. Information related to

this single audit, including the auditor’s report on the internal control structure and compliance with

applicable laws and regulations and findings and recommendations, are included in the single audit

section of this report.

1) REPORTING ENTITY AND ITS SERVICES: Upper Deerfield Township School District is an

independent reporting entity within the criteria adopted by the GASB as established by GASB

Statement No. 14. All funds and account groups of the District are included in this report. The

Upper Deerfield Township Board of Education and all its schools constitute the District’s reporting

entity.

The district provides a full range of educational services appropriate to grade levels Pre-K through 8.

These include regular as well as special education for handicapped youngsters. The District

completed the 2015-16 fiscal year with an average enrollment of 906 students, which is 4 students

more than the previous year’s enrollment. The following details the changes in the student

enrollment of the District over the last ten years.

Average Daily Enrollment

Fiscal Student Percent

Year Enrollment Change

2015-16 906 -0.88%

2014-15 914 +1.44%

2013-14 901 +0.89%

2012-13 897 +4.3%

2011-12 859 -4.3%

2010-11 898 -3.5%

2009-10 943 +2.74%

2008-09 888 0%

2007-08 889 -2.7%

2006-07 913 +2.8%

2. ECONOMIC CONDITION AND OUTLOOK: Upper Deerfield Township’s new development is

slow. The economic condition of the community is anticipated to be steady. Existing businesses and

industries appear stable.

3. MAJOR INITIATIVES:

Upper Deerfield Township Schools utilize a systems approach to achieve the vision established by the

Board of Education. Our staff members set high academic and behavioral expectations for all students.

Teachers engage in collaborative planning to create high student engagement and connect classroom

learning and lessons to daily life. In our district's vision, the focus is on the students being at the core of

our business to promote the development of the whole student while providing them with the knowledge,

skills, and integrity to meet life's challenges, fulfill their needs and enable them to become productive in

both the school and the community. All three schools of the Upper Deerfield Township School District

are committed to creating a community of tolerance and acceptance that provides children the opportunity

for extraordinary educational experiences. An inclusive environment is promoted in our district as we find

a fitting place for every child.

The Upper Deerfield Township Board of Education and the professional staff are committed to promoting

and achieving quality education for all. The district continues to implement many new curriculum

initiatives as part of an overall curriculum evaluation plan. We are striving to close achievement gaps

while increasing opportunities for student and parent involvement.

Our staff of highly qualified teachers is committed to providing students with a developmentally

appropriate program of instruction utilizing best practices in education. Each of our three schools'

curricula is aligned to the Common Core State Standards in order to provide a better opportunity for

improved student achievement. All three schools have their own Report Card. A review of previous

Report Cards shows an increasing enrollment, moving our total student population to approximately 980

students. District students in Grades 9 through 12 can attend either Cumberland Regional High School or

Cumberland County Technical Education Center for the high school education.

Once again in the classrooms this year there is an across-the-board initiative to enhance student

engagement and responsibility for learning. The staff is committed to finding ways to continue to improve

student learning as evidenced by the work of several Professional Learning Communities (PLC) focusing

on this topic. The Common Core has been embraced and is being implemented on all levels, supported by

our ever expanding technology initiatives.

In grades three through eight students have individual chromebooks while the pre-k through grade two

students are working with iPads in the classroom which will be expanded for individual iPads in the next

year. There is access to computers in each building in a personal computer lab. The Common Core is

supplemented by an opportunity to participate in Spanish in grades four through eight and all students are

exposed to a rich experience in visual and performing arts and vocal and instrumental music.

Our community of Upper Deerfield has much to be proud of because of our three schools. The entire

School District "family" maintains a great sense of pride in all that has been and continues to be

accomplished in our district and our three schools both individually and collectively. Each school

collaborates with all of its stakeholders to continue a tradition of providing our students with an excellent,

challenging education in an environment promoting and cultivating lifelong skills. Our faculty, staff, and

parents dedicate their time and energy to our schools in order to provide each student with a rewarding

and enriching educational experience. The PTO is very involved in the successful operation of the District

as they work tirelessly not only to support, but also enhance the District both financially and in helping

provide assistance to staff in a variety of activities. The Board of Education continues to provide support

of the District leadership and staff through support of programs, policy and governance.

The educational programs are designed to ensure all students are provided with opportunities to prepare

themselves for the future of their choice. We recognize that not all children learn at the same rate.

Accordingly, our three schools are structured to provide diverse learning environments which actively

engage students in critical thinking, strategic planning, hands-on learning and problem solving. All

students are active partners in their learning experience and equally accepting of their responsibility to

challenge themselves to meet with success.

Upper Deerfield Township School District is reaching out into the community and continues to develop

partnerships with various businesses and other districts to share services. This provides additional

positive support in various ways and strengthens the educational effort of the school district.

4) INTERNAL ACCOUNTING CONTROLS: Management of the District is responsible for

establishing and maintaining an internal control structure designed to ensure that the assets of the District

are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow

for the preparation of financial statements in conformity with generally accepted accounting principles

(GAAP). The internal control structure is designed to provide reasonable, but not absolute, assurance that

these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control

should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires

estimates and judgments by management.

As a recipient of federal and state financial assistance, the District also is responsible for ensuring that an

adequate internal control structure is in place to ensure compliance with applicable laws and regulations

related to those programs. This internal control structure is also subject to periodic evaluation by the

District management.

As part of the District’s single audit described earlier, tests are made to determine the adequacy of the

internal control structure, including that portion related to federal and state financial assistance programs,

as well as to determine that the District has complied with applicable laws and regulations.

5)_ BUDGETARY CONTROLS: In addition to internal accounting controls, the District maintains

budgetary controls. The objective of these budgetary controls is to ensure compliance with legal

provisions embodied in the annual appropriation budget approved by the voters of the municipality.

Annual appropriation budgets are adopted for the general fund, the special revenue fund, and the debt

service fund. Project-length budgets are approved for the capital improvements accounted for in the

capital projects fund. The final budget amount as amended for the fiscal year is reflected in the financial

section.

An encumbrance accounting system is used to record outstanding purchase commitments on a line item

basis. Open encumbrances at year-end are either canceled or are included as reappropriation of fund

balance in the subsequent year. Those amounts to be reappropriated are reported as reservations of fund

balances at June 30, 2016.

6) ACCOUNTING SYSTEM AND REPORTS: The District’s accounting records reflect generally

accepted accounting principles, as promulgated by the Governmental Accounting Standards Board

(GASB). The accounting system of the District is organized on the basis of funds and account groups.

These funds and account groups are explained in “Notes to the Financial Statements”, Note 1.

7) FINANCIAL INFORMATION AT FISCAL YEAR-END: As demonstrated by the various

statements and schedules included in the financial section of this report, the District continues to meet its

responsibility for sound financial management. The following schedule presents a summary of the

general fund, special revenue fund and debt service fund revenues for the fiscal year ended June 30, 2016

and the amount and percentage of increases in relation to prior year revenues.

PERCENT INCREASE PERCENT OF

OF (DECREASE) INCREASE

REVENUE AMOUNT TOTAL FROM 2015 (DECREASE)

Local Sources $ 7,320,632. 44.37% $ 26,285. 0.36%

State Sources 7,964,013. 47.72% 119,282. 1.50%

Federal Sources 1,155,012. 4.75% 374,854. 32.45%

Total $ 16,439,657. 100.00% $ 520,421. 2.73%

The following schedule presents a summary of general fund, special revenue fund and debt service fund

expenditures for the fiscal year ended June 30, 2016 and the percentage of increases and decreases in

relation to prior year amounts.

PERCENT INCREASE PERCENT OF

OF (DECREASE) INCREASE

EXPENDITURES AMOUNT TOTAL FROM 2015 (DECREASE)

Current Expense:

Instruction $6,383,580. 39.16% $ 252,288. 3.95%

Undistributed

Expenditures: 9,072,729. 55.65% 769,787. 8.48%

Capital Outlay 326,682. 2.00% 156,156. 47.80%

Debt Service 518,976. 3.18% (16,072.) (3.10%)

Total $16,301,967. 100.00% $ 1,162,159. 7.13%

UPPER DEERFIELD TOWNSHIP BOARD OF EDUCATION

SEABROOK, NEW JERSEY

ROSTER OF OFFICIALS

JUNE 30, 2016

Members of the Board of Education Term Expires

Greg Peterson, President 2017

Mark Evans, Vice President 2015

Robert Atha 2015

Peter Ballinger 2016

Samuel Elwell 2017

Joseph Lee 2016

Anthony Buono 2015

Other Officials

Dr. Peter L. Koza, Superintendent

Cherie Ludy, School Business Administrator

Susan Robostello, Treasurer

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT

The Honorable President and



County of Cumberland, New Jersey

Report on Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type

activities, each major fund and the aggregate remaining fund information of the Board of Education of the

Upper Deerfield Township School District in the County of Cumberland, in the State of New Jersey, as of

and for the fiscal year ended June 30, 2016, and the related notes to the financial statements, which

collectively comprise the Board of Education’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; and audit requirements as prescribed by the Office of School

Finance, Department of Education, State of New Jersey. Those standards require that we plan and perform

the audit to obtain reasonable assurance about whether the financial statements are free from material

misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial statements. The procedures selected depend on the auditor’s judgment, including the assessment

of the risks of material misstatement of the financial statements, whether due to fraud or error. In making

those risk assessments, the auditor considers internal control relevant to the 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.

1


(Continued)

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the

respective financial position of the governmental activities, the business-type activities, each major fund

and the aggregate remaining fund information of the Upper Deerfield Township Board of Education in the

County of Cumberland, State of New Jersey, as of June 30, 2016, and the respective changes in financial

position and, where applicable, cash flows thereof for the year then ended in accordance with accounting

principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’s

Discussion and Analysis, Budgetary Comparison Information, Schedules Related to Accounting and

Reporting for Pension, and Notes to the Required Supplemental Information on pages 38 through 51 and

52 be presented to supplement the basic financial statements. Such information, although not 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 response to our inquiries, the basic financial

statements, and other knowledge we obtained during our audit of the basic financial statements. We do not

express an opinion or provide any assurance on the information because the limited procedures do not

provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively

comprise the Upper Deerfield Township Board of Education’s basic financial statements The

accompanying schedule of expenditures of federal awards as required by Title 2 U.S Code of Federal

Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements

for Federal Awards, (Uniform Guidance), and schedule of expenditures of state awards as required by

New Jersey OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants,

and State Aid are presented for purposes of additional analysis and are not a required part of the basic

financial statements. The accompanying introductory information, statistical sections, combining and

individual non-major fund financial statements are also presented for purposes of additional analysis and

are not a required part of the basic financial statements.

The accompanying combining and individual non-major fund financial statements, schedule of expenditures

of federal awards, and schedule of expenditure of state awards are the responsibility of management and

were derived from and relate directly to the underlying accounting and other records used to prepare the

basic financial statements. Such information has been subjected to the auditing procedures applied in the

audit of the basic financial statements and certain additional procedures, including comparing and

reconciling such information directly to the underlying accounting and other records used to prepare the

basic financial statements or to the basic financial statements themselves, and other additional procedures

in accordance with auditing standards generally accepted in the United States of America. In our opinion,

the accompanying combining and individual non-major fund financial statements, schedule of expenditures

of federal awards, and schedule expenditures of state awards are fairly stated, in all material respects, in

relation to the basic financial statements as a whole.

2


(Continued)

The introductory informational and statistical 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 November 18,

2016 on our consideration of the Upper Deerfield Township Board of Education’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 Upper Deerfield

Township Board of Education’s internal control over financial reporting and compliance.

Respectfully submitted,

Samuel A. Delp, Jr.

Public School Accountant, #745

Triantos & Delp

Certified Public Accountants, LLC

November 18, 2016

3

REQUIRED SUPPLEMENTARY INFORMATION–PART I

MANAGEMENT’S DECISION AND ANALYSIS

Management Discussion and Analysis

This section of the Upper Deerfield Township School District’s Comprehensive Annual Financial

Report presents our discussion and analysis of the District’s financial performance during the fiscal

year ending on June 30, 2016. Please read it in conjunction with the transmittal letter at the front of this

report and the District’s financial statements, which immediately follow this section.

Overview of the Financial Statements

This annual report consists of three parts: management’s discussion and analysis (this section), the

basic financial statements, and required supplementary information. The basic financial statements

include two kinds of statements that present different views of the District:

The first two statements are district-wide financial statements that provide both short-term and

long-term information about the District’s overall financial status.

The remaining statements are fund financial statements that focus on individual parts of the

District, reporting the District’s operations in more detail than the District-wide statements.

The governmental funds statements tell how basic services such as regular and special

education were financed in the short term as well as what remains for future spending.

Proprietary funds statements offer short- and long-term financial information about activities

the District operates like businesses.

Fiduciary funds statements provide information about the financial relationships in which the

District acts solely as a trustee or agent for the benefit of others.

The financial statements also include notes that explain some of the information in the statements and

provide more detailed data. The statements are followed by a section of required supplementary

information that further explains and supports the financial statements with a comparison of the

District’s budget for the year.

Figure A-1 below summarizes the major features of the District’s financial statements, including the

portion of the District’s activities that cover and the types of information they contain. The remainder

of this overview section of management’s discussion and analysis highlights the structure and contents

of each of the statements.

Figure A-1: Major Features of the District wide and Fund Financial Statements

Fund Financial Statements

District-wide

Statements

Governmental Funds

Proprietary Funds

Fiduciary Funds

Scope Entire district

(except fiduciary

funds)

The activities of the

district that are not

proprietary or fiduciary,

such as special education and building

maintenance

Activities the district

operates similar to private

businesses: food services

is included here

Instances in which

the district

administers resources

on behalf of someone else, such as

scholarship programs

and student activities monies

Required

Financial

Statements

Statement

of net assets

Statement

of activities

Balance Sheet

Statement of

revenues,

expenditures,

and changes in fund balances

Statement of net

assets

Statement of

revenues,

expenses, and changes in fund

net assets

Statement of cash

flows

Statement of

fiduciary net

assets

Statement of

changes in fiduciary net

assets

Accounting

Basis and

Measurement

Focus

Accrual accounting

and economic

resources focus

Modified accrual

accounting and current

financial focus

Accrual accounting and

economic resources focus

Accrual accounting

and economic

resources focus

Type of

Asset/Liability

All assets and liabilities, both

financial and capital,

short-term and long-term

Generally assets expected to be used up

and liabilities that come

due during the year or soon thereafter; no

capital assets or long-

term liabilities included

All assets and liabilities, both financial and capital,

and short-term and long-

term

All assets and liabilities, both short-

term and long-term;

funds do not currently contain

capital assets,

although they can

Type of

Inflow/Outflow

Information

All revenues and expenses during the

year, regardless

of when cash is received or paid

Revenues for which cash is received during

or soon after the end of

the year; expenditures when goods or services

have been received and

the related liability is due and payable

All revenues and expenses during the year,

regardless of when cash

is received or paid

All additions and deductions during the

year, regardless of

when cash is received or paid

District-wide Financial Statements

The district-wide statements report information about the District as a whole using accounting methods

similar to those used by private sector companies. The statement of net position includes all of the

District’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the

statement of activities regardless of when cash is received or paid.

The two district-wide statements report the District’s net position and how it has changed. Net position

- the difference between the District’s assets and deferred outflows and liabilities and deferred inflows -

is one way to measure the District’s overall financial health or position.

Over time, increases or decreases in the District’s net position is an indicator of whether its

financial position is improving or deteriorating, respectively.

To assess the overall financial condition of the District additional non-financial factors, such as

changes in the District’s property tax base and the condition of school buildings and other

facilities should be considered.

In the District-wide financial statements, the District’s activities are divided into two categories:

Governmental activities: Most of the District’s basic services are included here, such as regular

and special education, transportation and administration. Property taxes and state aid finance

most of these activities.

Business-type activities: The District charges fees to help it cover the costs of certain services it

provides. The District’s food service program would be included here.

Fund Financial Statements

The fund financial statements provide more detailed information about the District’s funds, focusing on

its most significant or “major” funds – not the District as a whole. Funds are accounting devices the

District uses to keep track of specific sources of funding and spending on particular programs:

Some funds are required by state law and by bond covenants.

The District establishes other funds to control and manage money for particular purposes, (such

as repaying its long-term debts or completing approved capital projects) or to show that it is

properly using certain revenues (such as federal grants).

The District has four kinds of funds:

Governmental funds: Most of the District’s basic services are included in governmental funds,

which generally focus on (1) how cash and other financial assets that can readily be converted

to cash flow in and out and (2) the balances left at year-end that are available for spending.

Consequently, the governmental funds statements provide a detailed short-term view that helps

the reader determine whether there are more or fewer financial resources that can be spent in the

near future to finance the District’s programs. Because this information does not encompass the

additional long-term focus of the district-wide statements, additional information at the bottom

of the governmental funds statements explains the relationship (or differences) between them.

Proprietary funds: Services for which the District charges a fee are generally reported in

proprietary funds. Proprietary funds are reported in the same way as the district-wide

statements.

In fact, the District’s enterprise funds (one type of proprietary fund) are the same as its

business-type activities, but provide more detail and additional information, such as cash flow.

Internal service funds: (the other kind of proprietary fund) are optional and utilized to report

activities that provide supplies and services for other District programs and activities.

Fiduciary funds: The District is the trustee, or fiduciary, for assets that belong to others, such as

the student activity fund. The District is responsible for ensuring that the assets reported in

these funds are used only for their intended purposes and by those to whom the assets belong.

The District excludes these activities from the district-wide financial statements because the

District cannot use these assets to finance its operations.

Financial Analysis of the District as a Whole

(in thousands)

Net assets. The District’s combined net assets are $9,852 on June 30, 2016 (see Table A-1). Less than

3% of the total net assets are from business-type activities. The balance of the total net assets, which is

in excess of 97%, attributable to governmental activities.

Changes in net assets. The District’s total revenues are $21,185 for the fiscal period ended June 30,

2016 (see Table A-2). Property taxes and state formula aid accounted for 72% of the District’s

revenue. 15% is derived from state and federal aid for specific programs, and the remainder, 13% from

fees charged for services and miscellaneous resources.

The District’s predominant expenses are related to educating and caring for students 44%. The purely

administrative activities of the District accounted for 6% of total costs. Salary increases due to

contractual agreements for teachers and other educational staff are included in the instruction-related

costs. Total revenues surpassed expenses increasing net assets approximately $159 last year, primarily

in governmental activities.

Governmental Activities.

Revenues for governmental activities were $20,492. Total expenses amounted to $20,400. The

increase in net position in governmental activities of $92 for 2016.

Business-Type Activities.

Revenues of the District’s business-type activities amounted to $693 and expenses were $626. Factors

contributing to these results included:

The community school had revenue in excess of expenses of approximately $35.

Food service revenue in excess of expenses of approximately $33.

Financial Analysis of the District’s Funds

(in thousands)

The strong financial performance of the District as a whole is primarily reflected in its governmental funds.

As the district completed the year, its governmental funds reported combined balances of $2,359 of which

$26 was reserved per capital improvements in the capital project fund. Miscellaneous revenue exceeded the

amounts anticipated in the 2016 budget.

General Fund Budgetary Highlights

Over the course of the year, the District revised the annual operating budget several times. These

budget amendments were due to:

Transfers between budgetary line accounts to prevent overruns.

The District’s final budget anticipated utilizing $680 in fund balance and $205 of prior year

encumbrances to fund the appropriation plan for this fiscal period. The actual result of operations was

an increase in the general fund balance of $135.

Actual expenditures for capital outlay amounted to $327 in the Operating Fund and $119 in the Capital

Projects Fund.

Capital Asset and Debt Administration

(in thousands)

Capital Assets

By the end of 2016, the District had invested $22,843 in a broad range of capital assets, including

school buildings, athletic facilities, computer and audiovisual equipment, and administrative offices.

(See Table A-3) (More detailed information about capital assets can be found in Note 5 to the financial

statements.) Total depreciation expenses for the year was $565 while building improvements and

additions to equipment and furniture and land amounted to $342.

Long-Term Debt

The state limits the amount of general obligation debt the District can issue to 3 percent of the

equalized valuation of all taxable property within the District. The current limit is $18,708 of which

$16,338 is available for the issuance of debt.

Factors Bearing on the District’s Future

At the time these financial statements were prepared and audited, the District was aware of the

following existing circumstances that could significantly affect its financial health in the future:

State Formula Aid for the fiscal year 2015-2016 was flat funded to the previous year. It is the

District’s hope the State will apply the CEIFA formula resulting in the distribution of aid on the

formula’s enrollment basis. By including the District in the litigation regarding the effect of not

being funded by the SFRA, the District hopes to obtain financial award in the future. The

District’s special revenue is an unpredictable revenue source. The District avails itself of every

grant opportunity to increase educational opportunities for the students.

Contacting the District’s Financial Management

This financial report is designed to provide the District’s citizens, taxpayers, customers, investors and

creditors with a general overview of the District’s finances and to demonstrate the District’s

accountability of the money it receives. If you have questions about this report or need additional

financial information, contact Cherie Bratty Assistant Superintendent for Business/Board Secretary,

Upper Deerfield Township School District, 1385 Highway 77, Seabrook, NJ 08302.

To

tal

Per

cen

tage

Ch

ange

2015

2016

2015

2016

2015

2016

2015-2

016

Curr

ent

and O

ther

Ass

ets

2,6

66.

$

2,7

16.

$

197.

$

368.

$

2

,86

3.

$

3

,08

4.

$

7

.7%

Cap

ital

Ass

ets

14,9

38.

14,7

15.

89.

81.

15

,02

7.

14

,79

6.

-1.5

%

To

tal A

ssets

17,6

04.

$

17,4

31.

$

286.

$

449.

$

1

7,8

90

.$

1

7,8

80

.$

-0

.1%

Defe

rred

Ou

tflo

ws o

f R

eso

urc

es

560.

$

1,5

72.

$

0.

$

0.

$

0

.$

1,5

72

.$

0.0

%

Curr

ent

Lia

bil

itie

s1,0

71.

$

1,0

35.

$

33.

$

28.

$

1,1

04

.$

1,0

63

.$

-3.7

%

Noncu

rren

t L

iab

ilit

ies

7,2

30.

8,2

14.

0.

0.

7

,23

0.

8

,21

4.

1

3.6

%

To

tal L

iab

ilit

ies

8,3

01.

$

9,2

49.

$

33.

$

28.

$

8,3

34

.$

9,2

77

.$

11

.3%

Defe

rred

In

flo

ws o

f R

eso

urc

es

424.

$

223.

$

0.

$

0.

$

0

.$

22

3.

$

0

.0%

Net P

ositio

n

Inves

ted i

n C

apit

al A

sset

s

Net

of

Rel

ated

Deb

t12,1

13.

$

12,3

45.

$

89.

$

81.

$

12

,20

2.

$

12

,42

6.

$

1.8

%

Res

tric

ted

2,4

19.

2,7

16.

0.

0.

2

,41

9.

2

,71

6.

1

2.3

%

Unre

stri

cted

(5,0

93.)

(5,5

30.)

164.

240.

(4

,92

9.)

(5,2

90

.)

7.3

%

To

tal N

et

Po

sit

ion

9,4

39.

$

9,5

31.

$

253.

$

321.

$

9

,69

2.

$

9

,85

2.

$

0

.$

To

tal

Sch

oo

l D

istr

ict

Tab

le A

-1

Upper

Deerf

ield

Tow

nship

Board

of

Education's

Net P

ositio

n

(in

thousa

nds

of

doll

ars)

Gover

nm

enta

l

Act

ivit

ies

Busi

nes

s-ty

pe

Act

ivit

ies

To

tal

Per

cen

tage

Ch

ange

2015

2016

2015

2016

2015

2016

2015-2

016

Rev

en

ues

Pro

gra

m R

evenues

Charg

es f

or

Serv

ices

2,1

00.

$

2,0

93.

$

318.

$

324.

$

2,4

18

.$

2,4

17

.$

0

.0%

Federa

l &

Sta

te C

ate

gorical G

rants

2,7

21.

2,9

11.

365.

369.

3,0

86

.

3,2

80

.

6

.3%

Genera

l R

evenues

Pro

pert

y T

axes

7,0

48.

7,1

62.

0.

0.

7

,04

8.

7

,16

2.

1

.6%

Sta

te F

orm

ula

Aid

7,4

03.

8,1

68.

0.

0.

7

,40

3.

8

,16

8.

1

0.3

%

Oth

er

285.

158.

0.

0.

2

85

.

15

8.

-44

.6%

To

tal R

ev

en

ues

19,5

57.

$

20,4

92.

$

683.

$

693.

$

20

,24

0.

$

21

,18

5.

$

4.7

%

Exp

en

ses

Instr

uction -

Rela

ted

6,4

94.

$

6,7

51.

$

60.

$

65.

$

6,5

54

.$

6,8

16

.$

4

.0%

Stu

dent S

upport

Serv

ices

1,4

62.

1,8

19.

576.

561.

2,0

38

.

2,3

80

.

1

6.8

%

Main

tenance &

Opera

tions

1,3

15.

1,4

75.

0.

0.

1

,31

5.

1

,47

5.

1

2.2

%

Tra

nsport

ation

861.

776.

0.

0.

8

61

.

77

6.

-9.9

%

Adm

inis

tration

1,1

65.

1,1

87.

0.

0.

1

,16

5.

1

,18

7.

1

.9%

Oth

er

7,5

99.

8,3

92.

0.

0.

7

,59

9.

8

,39

2.

1

0.4

%

To

tal E

xp

en

ses

18,8

96.

$

20,4

00.

$

636.

$

626.

$

19

,53

2.

$

21

,02

6.

$

0.

$

Inc

rease/

(de

cre

ase)

in N

et

Po

sit

ion

661.

$

92.

$

47.

$

67.

$

70

8.

$

15

9.

$

(0.)

$

Tab

le A

-2

To

tal

Sch

oo

l D

istr

ict

Changes in N

et P

ositio

n

Upper

Deerf

ield

Tow

nship

Board

of

Education's

(in

thousa

nds

of

doll

ars)

Gover

nm

enta

l

Act

ivit

ies

Busi

nes

s-ty

pe

Act

ivit

ies

To

tal

Per

cen

tage

Ch

ange

2015

2016

2015

2016

2015

2016

2015-2

016

Land

312.

$

312.

$

0.

$

0.

$

3

12

.$

3

12

.$

0

.0%

Constr

uction in P

rogre

ss

12.

0.

0.

0.

1

2.

0

.

0

.0%

Site Im

pro

vem

ents

60.

55.

0.

0.

6

0.

5

5.

-8.3

%

Build

ings &

Im

pro

vem

ents

14,3

07.

14,1

33.

0.

0.

14,3

07

.

14

,13

3.

-1.2

%

Machin

ery

& E

quip

ment

247.

215.

81.

81.

32

8.

29

6.

-9

.8%

To

tal

14,9

38.

$

14,7

15.

$

81.

$

81.

$

15,0

19

.$

14

,79

6.

$

-1.5

%

Tab

le A

-3

To

tal

Sch

oo

l D

istr

ict

Upper

Deerf

ield

Tow

nship

Board

of

Education's

Capital A

ssets

(in t

housa

nds

of

doll

ars)

Gover

nm

enta

l

Act

ivit

ies

Busi

nes

s-ty

pe

Act

ivit

ies

(Net

of

Dep

reci

atio

n)

BASIC FINANCIAL STATEMENTS

DISTRICT-WIDE FINANCIAL STATEMENTS

EXHIBIT A-1

Governmental

Activities

Business-Type

Activities Total

ASSETS:

Cash and Cash Equivalents 2,482,162.$ 212,832.$ 2,694,994.$

Receivables, net 233,956. 44,890. 278,846.

Inventory 0. 10,861. 10,861.

Capital assets, net 14,715,098. 80,765. 14,795,863.

Total Assets 17,431,216. 349,348. 17,780,564.

DEFERRED OUTFLOWS OF RESOURCES: 1,572,572. 0. 1,572,572.

LIABILITIES:

Accounts Payable 277,985. 25,553. 303,538.

Accounts Payable -Pension 224,761. 0. 224,761.

Interfund Payable (2,566.) 2,566. 0.

Unearned Revenue 73,237. 0. 73,237.

Accrued interest 38,711. 0. 38,711.

Noncurrent Liabilities:

Due within one year 422,827. 0. 422,827.

Due in more than one year 2,368,639. 0. 2,368,639.

Net pension liability 5,845,193. 0. 5,845,193.

Total Liabilities - 9,248,787. 28,119. 9,276,906.

DEFERRED INFLOWS OF RESOURCES: 223,152. 0. 223,152.

NET POSITION:

Invested in Capital Assets, net of related debt 12,345,098. 80,765. 12,425,863.

Restricted for:

Debt Service 670. 0. 670.

Capital Projects 634,999. 0. 634,999.

Other Purposes 2,080,393. 0. 2,080,393.

Unrestricted (5,529,312.) 240,464. (5,288,848.)

Total Net Position 9,531,848.$ 321,229.$ 9,853,077.$

JUNE 30, 2016

STATEMENT OF NET POSITION


See Accompanying Notes to the Basic Financial Statements

4

EX

HIB

IT A

-2

Ne

t (E

xpe

nse

) R

eve

nue

S a

nd

Cha

nge

s in N

et A

sse

ts

Cha

rge

s f

or

Ope

rating G

rants

C

apita

l G

rants

G

ove

rnm

enta

lB

usin

ess-t

ype

Functio

ns/P

rogra

ms

Expe

nse

sS

erv

ice

sa

nd

Co

ntr

ibutio

ns

and

Co

ntr

ibutio

ns

Activitie

sA

ctivitie

sT

ota

l

G

ove

rnm

enta

l a

ctivitie

s:

In

str

uctio

n:

R

egula

r4

,22

2,2

25

.$

0.

$

0.

$

0.

$

(4,2

22

,22

5.)

$

0.

$

(4,2

22

,22

5.)

$

S

pe

cia

l ed

uca

tion

2,3

54

,41

6.

(2,3

54

,41

6.)

(2,3

54

,41

6.)

O

the

r spe

cia

l in

str

uction

17

4,0

65

.

(17

4,0

65

.)

(17

4,0

65

.)

S

uppo

rt s

erv

ice

s:

T

uitio

n2

03

,94

9.

(20

3,9

49

.)

(20

3,9

49

.)

S

tud

ent &

instr

uction r

ela

ted

se

rvic

es

1,6

14

,57

4.

(1,6

14

,57

4.)

(1,6

14

,57

4.)

S

cho

ol ad

min

istr

ative

se

rvic

es

50

7,4

46

.

(50

7,4

46

.)

(50

7,4

46

.)

G

ene

ral and

busin

ess a

dm

inis

tra

tive

se

rvic

es

31

5,9

93

.

(31

5,9

93

.)

(31

5,9

93

.)

C

entr

al se

rvic

es

25

0,0

54

.

(25

0,0

54

.)

(25

0,0

54

.)

A

dm

in info

te

chce

s1

13

,72

0.

(11

3,7

20

.)

(11

3,7

20

.)

P

lant o

pe

rations a

nd

ma

inte

na

nce

1,4

74

,66

1.

(1,4

74

,66

1.)

(1,4

74

,66

1.)

P

upil

tra

nspo

rta

tion

77

5,6

24

.

(77

5,6

24

.)

(77

5,6

24

.)

E

mplo

ye

e b

ene

fits

6,0

72

,73

7.

2,9

10

,86

5.

(3,1

61

,87

2.)

(3,1

61

,87

2.)

In

tere

st o

n lo

ng-t

erm

de

bt

10

2,2

80

.

(10

2,2

80

.)

(10

2,2

80

.)

T

ransfe

r to

cha

rte

r scho

ol

20

,54

9.

(20

,54

9.)

(20

,54

9.)

In

tern

al se

rvic

e f

und

2,0

93

,93

9.

2,0

92

,87

8.

(1,0

61

.)

(1,0

61

.)

S

tate

de

bt se

rvic

e a

sse

ssm

ent

10

4,6

18

.

(10

4,6

18

.)

(10

4,6

18

.)

T

ota

l go

ve

rnm

enta

l activitie

s2

0,4

00

,85

0.

2,0

92

,87

8.

2,9

10

,86

5.

0.

(15

,39

7,1

07

.)

0.

(15

,39

7,1

07

.)

B

usin

ess-t

ype

activitie

s:

F

oo

d S

erv

ice

56

0,9

45

.

22

6,2

78

.

36

9,2

15

.

0.

0.

34

,54

8.

34

,54

8.

C

ER

64

,52

8.

97

,39

0.

0.

0.

0.

32

,86

2.

32

,86

2.

T

ota

l busin

ess-t

ype

activitie

s6

25

,47

3.

32

3,6

68

.

36

9,2

15

.

0.

0.

67

,41

0.

67

,41

0.

To

tal prim

ary

go

ve

rnm

ent

21

,02

6,3

23

.$

2,4

16

,54

6.

$

3,2

80

,08

0.

$

0.

$

(15

,39

7,1

07

.)$

67

,41

0.

$

(15

,32

9,6

97

.)$

Ge

ne

ral re

ve

nue

s:

Ta

xe

s:

P

rope

rty ta

xe

s, le

vie

d f

or

ge

ne

ral purp

ose

s,n

et

6,6

44

,24

8.

$

0.

$

6,6

44

,24

8.

$

T

axe

s le

vie

d f

or

de

bt se

rvic

e5

17

,95

2.

51

7,9

52

.

Fe

de

ral a

nd

Sta

te a

id n

ot re

str

icte

d

6,7

89

,15

3.

6,7

89

,15

3.

Fe

de

ral a

nd

Sta

te a

id r

estr

icte

d

1,3

79

,45

7.

1,3

79

,45

7.

Tuitio

n r

ece

ive

d7

9,2

06

.

79

,20

6.

Inve

stm

ent e

arn

ings

4,9

91

.

25

1.

5,2

42

.

Mis

ce

llane

ous inco

me

74

,48

8.

74

,48

8.

To

tal ge

ne

ral re

ve

nue

s, spe

cia

l ite

ms, e

xtr

ao

rdin

ary

ite

ms a

nd

tra

nsfe

rs1

5,4

89

,49

5.

25

1.

15

,48

9,7

46

.

C

ha

nge

in N

et P

ositio

n9

2,3

88

.

67

,66

1.

16

0,0

49

.

Ne

t P

ositio

n—

be

gin

nin

g9

,43

9,4

60

.

25

3,5

68

.

9,6

93

,02

8.

Ne

t P

ositio

n—

end

ing

9,5

31

,84

8.

$

32

1,2

29

.$

9,8

53

,07

7.

$

UP

PE

R D

EE

RF

IEL

D T

OW

NS

HIP

SC

HO

OL

DIS

TR

ICT

ST

AT

EM

EN

T O

F A

CT

IVIT

IES

FO

R T

HE

YE

AR

EN

DE

D J

UN

E 3

0, 2

01

6

Pro

gra

m R

eve

nue

s

See

Acc

om

pan

yin

g N

ote

s to

the

Bas

ic F

inan

cial

Sta

tem

ents

5

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS

EXHIBIT B-1

Special Capital Debt Total

General Revenue Projects Service Permanent Governmental

Fund Fund Fund Fund Fund Funds

Assets:

Cash and cash equivalents 2,280,032.$ 0.$ 24,349.$ 1.$ 0.$ 2,304,382.$

Due from other funds 111,173. 0. 0. 670. 0. 111,843.

Receivables from other governments 42,579. 73,126. 88,086. 0. 0. 203,791.

Total assets 2,433,784.$ 73,126.$ 112,435.$ 671.$ 0.$ 2,620,016.$

Liabilities and Fund Balances:

Liabilities:

Accounts payable 79,191.$ 0.$ 0.$ 0.$ 0.$ 79,191.$

Interfund payable 0. 22,149. 86,443. 0. 0. 108,592.

Unearned revenue 0. 73,237. 0. 0. 0. 73,237.

Total liabilities 79,191. 95,386. 86,443. 0. 0. 261,020.

Fund Balances:

Restricted for:

Excess surplus-current year 760,937. 0. 0. 0. 0. 760,937.

Excess surplus -- designated for

Subsequent year's expenditures 578,289. 0. 0. 0. 0. 578,289.

Maintenance reserve 715,963. 0. 0. 0. 0. 715,963.

Capital reserve 609,007. 0. 0. 0. 609,007.

Committed to:

Other purposes 16,298. 0. 0. 0. 0. 16,298.

Assigned to:

Designated by BOE for

subsequent year's expenditures 8,906. 0. 0. 633. 0. 9,539.

Capital projects 0. 0. 25,992. 0. 0. 25,992.

Unassigned:

General fund (334,807.) 0. 0. 0. 0. (334,807.)

Special revenue fund 0. (22,260.) 0. 37. 0. (22,223.)

Total Fund balances 2,354,593. (22,260.) 25,992. 670. 0. 2,358,995.

Total liabilities and fund balances 2,433,784.$ 73,126.$ 112,435.$ 670.$ 0.$

Amounts reported for governmental activities in the statement of

net assets (A-1) are different because:

Capital assets used in governmental activities are not financial

resources and therefore are not reported in the funds. The cost

of the assets is $ 23,155,154. and the accumulated depreciation

is $ 8,440,056. (See Note 6). 14,715,098.$

Long-term liabilities, including bonds payable, are not due and

payable in the current period and therefore are not reported as

liabilities in the funds (see Note 8). (2,830,177.)

Internal service net assets (155,389.)

Pension related items in governmental funds:

Deferred outflows of resources 1,517,700.

Deferred inflows of resources (215,469.)

Pension account payable (216,962.)

Net pension liability (5,641,948.)

Total pension related items in governmental funds (4,556,679.)

Net assets of governmental activities 9,531,848.$


BALANCE SHEET

GOVERNMENTAL FUNDS

June 30, 2016

6

EXHIBIT B-2

Special Capital Debt Total

General Revenue Projects Service Permanent Governmental

Fund Fund Fund Fund Fund Funds

REVENUES:

Local sources:

Local tax levy 6,644,248.$ 0.$ 0.$ 517,952.$ 0.$ 7,162,200.$

Tuition charges 79,206. 0. 0. 0. 0. 79,206.

Interest Earned 4,738. 0. 37. 0. 0. 4,775.

Miscellaneous 74,488. 0. 0. 0. 0. 74,488.

Total - Local Sources 6,802,680. 0. 37. 517,952. 0. 7,320,669.

State sources 7,738,445. 225,568. 59,786. 0. 0. 8,023,799.

Federal sources 60,909. 1,094,103. 0. 0. 1,155,012.

Total revenues 14,602,034. 1,319,671. 59,823. 517,952. 0. 16,499,480.

EXPENDITURES:

Current:

Regular instruction 3,911,579. 0. 0. 0. 0. 3,911,579.

Special education instruction 1,061,740. 1,236,196. 0. 0. 0. 2,297,936.

Other special instruction 174,065. 0. 0. 0. 0. 174,065.

Support services:

Tuition 203,949. 0. 0. 0. 0. 203,949.

Student & instruction related services 1,427,039. 131,055. 0. 0. 0. 1,558,094.

School administrative services 445,317. 0. 0. 0. 0. 445,317.

Other administrative services 253,864. 0. 0. 0. 0. 253,864.

Central services 250,054. 0. 0. 0. 0. 250,054.

Admin info tech 113,720. 0. 0. 0. 0. 113,720.

Plant operations and maintenance 1,457,718. 0. 0. 0. 0. 1,457,718.

Pupil transportation 775,624. 0. 0. 0. 0. 775,624.

Employee benefits 3,743,912. 249,928. 0. 0. 0. 3,993,840.

Debt service:

Principal 0. 0. 0. 410,000. 0. 410,000.

Interest and other charges 0. 0. 0. 108,976. 0. 108,976.

Capital outlay 326,682. 0. 119,497. 0. 0. 446,179.

Transfer to charter schools schools 20,549. 0. 0. 0. 0. 20,549.

Total expenditures 14,165,812. 1,617,179. 119,497. 518,976. 0. 16,421,464.

Excess (deficiency) of revenues over exp. 436,222. (297,508.) (59,674.) (1,024.) 0. 78,016.

OTHER FINANCING SOURCES (USES):

Transfers in 0. 300,476. 0. 37. 0. 300,513.

Transfers out (300,476.) 0. (37.) 0. 0. (300,513.)

Total other financing sources and uses (300,476.) 300,476. (37.) 37. 0. 0.

Net change in fund balance 135,746. 2,968. (59,711.) (987.) 0. 78,016.

Fund balance—July 1 2,218,847. (25,228.) 85,703. 1,657. 0. 2,280,979.

Fund balance—June 30 2,354,593.$ (22,260.)$ 25,992.$ 670.$ 0.$ 2,358,995.$


STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS

FOR THE YEAR ENDED JUNE 30, 2016

See Accompanying Notes to the Financial Statements

7

EXHIBIT B-3


RECONCILATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF ACTIVITIES


Total net changes in fund balances - governmental funds (from B-2) 78,016.$

Amounts reported for governmental activities in the statement of activities (A-2)

are different because:

Capital outlays are reported in governmental funds as expenditures. However, in the statement of

activities, the cost of those assets is allocated over their estimated useful lives as depreciation

expense.

This is the amount by which capital outlays exceeded depreciation in the period.

Depreciation expense (564,807.)

Capital outlays 341,561. (223,246.)

Adjustment to fixed assets

Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces

long-term liabilities in the statement of net assets and is not reported in the statement of activities.

Principal paid on bonds 410,000.

Principal paid on lease purchase 0. 410,000.

Decrease in accrued interest 6,696.

Proceeds from debt issues are a financing source in the governmental funds. They are not revenue

in the statement of activities; issuing debt increases long-term liabilities in the statement of net assets.

Proceeds of long-term debt 0.

Capital lease proceeds 0. 0.

In the statement of activities, certain operating expenses, e.g., compensated absences (vacations) are

measured by the amounts earned during the year. In the governmental funds, however, expenditures

for these items are reported in the amount of financial resources used (paid). When the earned amount

exceeds the paid amount, the difference is reduction in the reconciliation (-); when the paid amount

exceeds the earned amount the difference is an addition to the reconciliation (+). (6,111.)

Increase in pension expense (2,072,786.)

Increase in on-behalf pension payments 1,900,664.

Increase/(decrease) in internal service fund (845.)

Change in net position of governmental activities 92,388.$

See Accompanying Notes to the Financial Statements

8

PROPRIETARY FUNDS

EXHIBIT B-4

Governmental

Activities

Food Community Education Internal

Service and Recreation Fund Total Service Funds

ASSETS:

Current Assets:

Cash and cash equivalents 110,754.$ 102,078.$ 212,832.$ 177,780.$

Accounts receivable:

State 165. 0. 165. 0.

Federal 11,590. 0. 11,590. 0.

Other 33,124. 11. 33,135. 30,165.

Inventories 10,861. 0. 10,861. 0.

Total current assets 166,494. 102,089. 268,583. 207,945.

Noncurrent assets:

Furniture, machinery & equipment 219,216. 2,810. 222,026. 2,572.

Less accumulated depreciation (138,451.) (2,810.) (141,261.) (2,572.)

Total noncurrent assets 80,765. 0. 80,765. 0.

Total assets 247,259.$ 102,089.$ 349,348.$ 207,945.$

DEFERRED OUTFLOW OF RESOURCES: 0.$ 0.$ 0.$ 54,872.$

LIABILITIES:

Current Liabilities:

Accounts payable 25,553.$ 0.$ 25,553.$ 198,794.$

Interfund payable 2,566. 0. 2,566. 685.

Pension account payable 0. 0. 0. 7,799.

Total current liabilities 28,119.$ 0.$ 28,119.$ 207,278.$

Noncurrent liabilities:

Net pension liability 0. 0. 0. 203,245.

Total liabilities 28,119.$ 0.$ 28,119.$ 410,523.$

DEFERRED INFLOW OF RESOURCES: 0.$ 0.$ 0.$ 7,683.$

NET ASSETS:

Invested in capital assets net of

related debt 80,765. 0. 80,765. 0.

Unrestricted 138,375. 102,089. 240,464. (155,389.)

Total net assets 219,140.$ 102,089.$ 321,229.$ (155,389.)$



STATEMENT OF NET POSITION

PROPRIETARY FUND

JUNE 30, 2016

Business-Type Activities

Enterprise Fund

9

EXHIBIT B-5

Governmental

Activities -

Food Service Community Education Internal

Fund and Recreation Fund Total Service Fund

Operating revenues:

Changes for services:

Daily sales-reimbursable programs 70,596.$ 0.$ 70,596.$ 0.$

Daily sales-nonreimbursable pgms 40,557. 0. 40,557. 0.

Child care fees 0. 97,390. 97,390. 0.

Miscellaneous Income 76. 0. 76. 0.

Charges for services 115,049. 0. 115,049. 2,092,878.

Total operating revenues 226,278. 97,390. 323,668. 2,092,878.

Operating expenses

Cost of sales - reimbursable 181,366. 0. 181,366. 0.

Cost of sales - nonreimbursable 50,402. 0. 50,402. 0.

Salaries 188,726. 52,062. 240,788. 69,973.

Payroll taxes and fringe benefits 32,984. 3,983. 36,967. 22,733.

Pension expense 0. 0. 0. 6,242.

Supplies 21,099. 8,233. 29,332. 0.

Insurance 7,270. 0. 7,270. 0.

Office expense 1,247. 250. 1,497. 2,255.

Management fees 48,000. 0. 48,000. 0.

Depreciation 12,013. 0. 12,013. 0.

Miscellaneous 8,761. 0. 8,761. 4,789.

Repair and maintenance 9,077. 0. 9,077. 0.

Transportation costs 0. 0. 0. 1,987,947.

Total operating expenses 560,945. 64,528. 625,473. 2,093,939.

Operating income/(loss) (334,667.) 32,862. (301,805.) (1,061.)

Nonoperating revenues (expenses):

State sources:

State school lunch program 5,263. 0. 5,263. 0.

Federal sources:

National school breakfast program 82,065. 0. 82,065. 0.

National school lunch program 241,503. 0. 241,503. 0.

Food distribution program 40,384. 0. 40,384. 0.

Interest revenue 115. 136. 251. 216.

Total nonoperation revenues (expenses) 369,330. 136. 369,466. 216.

Change in net position 34,663. 32,998. 67,661. (845.)

Net position - beginning 184,477. 69,091. 253,568. (154,544.)

Net position - ending 219,140.$ 102,089.$ 321,229.$ (155,389.)$



STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

PROPRIETARY FUND

JUNE 30, 2016


Enterprise Fund

10

EXHIBIT B-6

Governmental

Activities -

Food Service Community Education Internal

Fund and Recreation Fund Total Service Fund

CASH FLOWS FROM OPERATING ACT.

Receipts from customers 111,221.$ 97,379.$ 208,600.$ 2,092,681.$

Payments to employees 0. (56,045.) (56,045.) (69,973.)

Payment for employee benefits 0. 0. 0. (22,732.)

Payments to suppliers (510,168.) (8,483.) (518,651.) (1,995,908.)

Other receipts/(payments) 112,323. 0. 112,323. 0.

Net cash provided by (used for) operating activities (286,624.) 32,851. (253,773.) 4,068.

CASH FLOWS FROM NONCAPITAL FINANCING ACT.

State Sources 5,286. 0. 5,286. 0.

Federal Sources 326,577. 0. 326,577. 0.

Net cash provided by (used for) non-

capital financing activities 331,863. 0. 331,863. 0.

CASH FLOWS FROM FINANCING ACTIVITIES:

Purchase of equipment (3,843.) 0. (3,843.) 0.

Interest of investments 115. 136. 251. 216.

Net cash provided by investing activites (3,728.) 136. (3,592.) 216.

Net increase (decrease) in cash and cash equilvalents 41,511. 32,987. 74,498. 4,284.

Balances - beginning of year 69,243. 69,091. 138,334. 173,496.

Balances - end of year 110,754.$ 102,078.$ 212,832.$ 177,780.$

Reconciliation of operating income (loss)

to net cash provided (used) by operating

activities:

Operating income (loss) (334,667)$ 32,862.$ (301,805.)$ (1,061)$

Adjust to reconcile operating income

(loss) to net cash provided by (used for)

operating activities

Depreciation and net amortization 12,013. 0. 12,013. 0.

Federal commodities 40,384. 0. 40,384. 0.

(Increase)/decrease in accts receivables, net (2,801.) (11.) (2,812.) (197.)

(Increase)/decrease in inventories 2,956. 0. 2,956. 0.

Increase/(decrease) in accounts payable (4,577.) 0. (4,577.) (916.)

Increase/(decrease) in pension accounts payable 0. 0. 0. 31.

Increase/(decrease) in interfund payable 68. 0. 68. 0.

(Increase)/decrease in deferred inflow 0. 0. 0. (35,437.)

Increase/(decrease) in deferred outflow 0. 0. 0. (7,021.)

Increase/(decrease) in net pension liability 0. 0. 0. 48,669.

Total adjustments 48,043. (11.) 48,032. 5,129.

Net cash provided by (used for) oper activities (286,624)$ 32,851.$ (253,773)$ 4,068.$



STATEMENT OF CASH FLOWS

PROPRIETARY FUND

FOR YEAR ENDED JUNE 30, 2016


Enterprise Funds

11

FIDUCIARY FUNDS

EXHIBIT B-7

Unemployment CF Seabrook

Compensation Will Expendable Payroll/Agency Student

Trust Trust Fund Fund Activity

ASSETS:

Cash & Cash Equivalents 154,970.$ 1,027,243.$ 0.$ 40,755.$

Total Assets 154,970.$ 1,027,243.$ 0.$ 40,755.$

LIABILITIES:

Due to Student Groups 0.$ 0.$ 0.$ 40,755.$

Due to Payroll Withholdings 0. 0. 0. 0.

Total Liabilities 0. 0. 0.$ 40,755.$

NET POSITION:

Held in trust for unemployment claims 154,970.$

Unreserved 1,027,243.$


STATEMENT OF FIDUCIARY NET POSITION

AS OF JUNE 30, 2016


FIDUCIARY FUNDS

12

EXHIBIT B-8


Compensation Will Expendable

ADDITIONS:

Contributions:

Plan Member 25,766.$ 0.$

Other 0. 88,581.

Total Contributions 25,766. 88,581.

Interest 218. 1,501.

Net Investment Earnings 218. 1,501.

DEDUCTIONS:

Unemployment Claims 1,480. 0.

Other Expenses 10,309. 111,200.

Total Deductions 11,789. 111,200.

Change in Net Position 14,195. (21,118.)

NET POSITION, JULY 1 140,775. 1,048,361.

NET POSITION, JUNE 30 154,970.$ 1,027,243.$



FOR FISCAL YEAR ENDED JUNE 30, 2016

FIDUCIARY FUND

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

13

NOTES TO FINANCIAL STATEMENTS


NOTES TO BASIC FINANCIAL STATEMENTS


NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Upper Deerfield Township School District is an instrumentality of the State of New Jersey, established to

function as an educational institution. The Board consists of elected officials and is responsible for the fiscal control

of the District. A chief school administrator is appointed by the Board and is responsible for the administrative

control of the District.

The financial statements of the Board of Education (Board) of the Upper Deerfield Township School District

(District) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to

governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body

for establishing governmental accounting and financial reporting principles. In its accounting and financial

reporting, the District follows the pronouncements of the Governmental Accounting Standards Board (GASB). The

more significant accounting policies established in GAAP and used by the District are discussed below.

A. Reporting Entity

The Upper Deerfield Township School District is a Type II district located in the County of Cumberland, State of

New Jersey. As a Type II District, the School District functions independently through a Board of Education. The

board is comprised of nine (7) members elected to three (3) year terms. The purpose of the district is to educate

students in grades K-8. The Upper Deerfield Township School District had an enrollment at June 30, 2016 of 906

students.

The primary criterion for including activities within the District’s reporting entity, as set forth in Section 2100 of the

GASB Codification of Governmental Accounting and Financial Reporting Standards, is whether:

the organization is legally separate (can sue or be sued in their own name)

the District holds the corporate powers of the organization

the District appoints a voting majority of the organization’s board

the District is able to impose its will on the organization

the organization has the potential to impose a financial benefit/burden on the District

there is a fiscal dependency by the organization on the District

Based on the aforementioned criteria, the District had no component units.

B. Basic Financial Statements – Governmental Wide Financial Statements

The District’s basic financial statements include both government-wide (reporting the District as a whole) and fund

financial statements (reporting the District’s major funds). Both the government-wide and fund financial statements

categorize primary activities as either governmental or business type. The District’s general, special revenue, capital

projects, and debt service activities are classified as governmental activities. The District’s food service and

community education and recreation (CER) programs are classified as business-type activities.

In the governmental-wide Statement of Net Position, both the governmental and business-type activities column (a)

are presented on a consolidated basis by column, (b) and are reported on a full accrual, economic resource basis,

which recognizes all long-term assets and receivables as well as long-term debt and obligations. The District’s net

position are reported in three parts-invested in capital assets, net of related debt; restricted net position; and

unrestricted net position. The District first utilizes restricted resources to finance qualifying activities.

The government-wide Statement of Activities reports both the gross and net cost of each of the District’s functions

and business-type activities. The functions are also supported by general government revenues (property taxes,

tuition, certain intergovernmental revenues, etc.). The Statement of Activities reduces gross expenses (including

depreciation) by related program revenues, operating and capital grants. Program revenues must be directly

associated with the function (regular instruction, vocational programs, student & instruction related services, etc.) or

a business-type activity. Operating grants include operating-specific and discretionary (either operating or capital)

grants while the capital grants column reflects capital-specific grants.

14




NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (Continued)

B. Basic Financial Statements – Governmental Wide Financial Statements – (Continued)

The net costs (by function or business-type activity) are normally covered by general revenue (property taxes, federal

and state aid, interest income, etc.).

The government-wide focus is more on the sustainability of the District as an entity and the change in the District’s

net position resulting from the current year’s activities. Fiduciary funds are not included in the government-wide

statements.

C. Basic Financial Statements – Fund Financial Statements

The financial transactions of the District are reported in individual funds in the fund financial statements. Each fund

is accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, reserves,

fund equity, revenues and expenditures/expenses. The various funds are reported by generic classification within the

financial statements.

The emphasis in fund financial statements is on the major funds in either the governmental or business-type activities

categories. Nonmajor funds by a category are summarized into a single column. GASBS No. 34 sets forth minimum

criteria (percentage of the assets, liabilities, revenues or expenditures/expenses of either fund category of the

governmental and enterprise combined) for the determination of major funds. The nonmajor funds are combined in a

column in the fund financial statements. The State of New Jersey Department of Education has mandated that all

New Jersey School Districts must report all governmental funds as major, regardless of the fund meeting the GASB

definition of a major fund. However, the criteria are applied to proprietary funds.

The following fund types are used by the District:

1. Governmental Funds:

The focus of the governmental funds’ measurement (in the fund statements) is upon determination of financial

position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net

income. The following is a description of the governmental funds of the District:

a. General Fund: The general fund is the general operating fund of the District. It is used to account for all

financial resources except those required to be accounted for in another fund. Included are certain

expenditures for vehicles and movable instructional or non-instructional equipment which are classified in

the Capital Outlay sub-fund.

As required by the New Jersey State Department of Education, the District includes budgeted Capital Outlay

in this fund. Generally accepted accounting principles as they pertain to governmental entities state that

General Fund resources may be used to directly finance capital outlays for long-lived improvements as long

as the resources in such cases are derived exclusively from unrestricted revenues.

Resources for budgeted capital outlay purposes are normally derived from State of New Jersey Aid, district

taxes and appropriated fund balance. Expenditures are those that result in the acquisition of or additions to

capital assets for land, existing buildings, improvements of grounds, construction of buildings, additions to

or remodeling of buildings and the purchase of built-in equipment. These resources can be transferred from

and to Current Expense by board resolution.

b. Special Revenue Fund: The Special Revenue Fund is used to account for the proceeds of specific revenue

from State and Federal Government, (other than major capital projects, Debt Service or the Enterprise

Funds) and local appropriations that are legally restricted to expenditures for specified purposes.

15





C. Basic Financial Statements – Fund Financial Statements – (Continued)

c. Capital Projects Fund: The capital projects fund is used to account for all financial resources to be used for

the acquisition or construction of major capital facilities (other than those financed by proprietary funds).

The financial resources are derived from temporary notes or serial bonds that are specifically authorized by

the voters as a separate question on the ballot either during the annual election or at a special election.

d. Debt Service Fund: The debt service fund is used to account for the accumulation of resources for, and the

payment of, principal and interest on bonds issued to finance major property acquisition, construction, and

improvement programs.

Fund Balances – Governmental Funds

In the fund financial statements, governmental funds report the following classifications of fund balance:

Nonspendable – includes amounts that cannot be spent because they are either not spendable in form

or are legally or contractually required to be maintained intact.

Restricted – includes amounts restricted by external sources (creditors, laws of other governments,

etc.) or by constitutional provision or enabling legislation.

Committed – includes amounts that can only be used for specific purposes. Committed fund balance

is reported pursuant to resolutions passed be the Board of Education, the District’s highest level of

decision making authority. Commitments may be modified or rescinded only through resolutions

approved by the Board of Education.

Assigned – includes amounts that the District intends to use for a specific purpose, but do not meet

the definition of restricted or committed fund balance. Under the District’s policy, amounts may be

assigned by the Business Administrator.

Unassigned – includes amounts that have not been assigned to other funds or restricted, committed

or assigned to a specific purpose within the General Fund. The District reports all amounts that meet

the unrestricted General Fund Balance Policy described below as unassigned:

The details of the fund balances are included in the Governmental Funds Balance Sheet. When an expenditure is

incurred for purposes for which both restricted or unrestricted fund balance is available, the District considers

restricted funds to been spent first. When an expenditure is incurred for which committed, assigned or unassigned

fund balance are available, the District considers amounts to have been spent first out of committed, then assigned

funds and finally unassigned funds as needed.

2. Proprietary Funds:

The focus of proprietary fund measurement is upon determination of operating income, changes in net position,

financial position, and cash flows. The generally accepted accounting principles applicable are those similar to

businesses in the private sector. The following is a description of the proprietary funds of the District:

a. Enterprise Funds are required to be used to account for operations for which a fee is charged to external

users of goods or services and the activity (a) is financed with debt that is solely secured by a pledge of the

net revenues, (b) has third party requirements that the cost of providing services, including capital costs, be

recovered with fees and charges or (c) establishes fees and charges based on a pricing policy designated to

recover similar costs. The District operates a food service fund to provide a child nutrition program for the

students of the district. The District also operates a CER program to provide educational and recreational

activities to the community.

16





C. Basic Financial Statements – Fund Financial Statements – (Continued)

b. Internal Service Fund are used to charge costs for certain activities to individual funds or other governmental

entities. The District’s internal service fund comprised of the Joint Pupil Transportation Program.

3. Fiduciary Funds:

Fiduciary Funds are used to report assets held in a trustee or agency capacity for others and therefore are not available

to support District programs. The reporting focus is on net position and changes in net position, and is reported using

accounting principles similar to proprietary funds.

The District’s fiduciary funds are presented in the fiduciary fund financial statements by type (pension, private

purpose and agency). Since by definition these assets are being held for the benefit of a third party (other local

governments, private parties, pension participants, etc.), and cannot be used to address activities or obligations of the

government, these funds are not incorporated into the entity-wide statements.

All fund internal activity is eliminated when carried to the Government-wide statements.

D. Basis of Accounting

Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in the accounts and

reported in the financial statements. It relates to the timing of the measurements made regardless of the measurement

focus applied.

1. Accrual:

Both governmental and business-type activities in the government-wide financial statements and the proprietary and

fiduciary fund financial statements are presented on the accrual basis of accounting. Revenues are recognized when

earned and expenses are recognized when incurred.

2. Modified Accrual:

The governmental fund financial statements are presented on the modified accrual basis of accounting. Under the

modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e., both measurable and

available. “Available” means collectible within the current period or within 60 days after year end. Expenditures are

generally recognized under the modified accrual basis of accounting when the related liability is incurred. The

exception to this general rule is that principal and interest on general obligation long-term debt, if any, is recognized

when due.

E. Financial Statement Amounts

1. Cash and Cash Equivalents:

Cash and cash equivalents include petty cash, change funds, cash in banks and all highly liquid investments with a

maturity of three months or less at the time of purchase and are stated at cost plus accrued interest. U.S. Treasury

and agency obligations and certificates of deposit with maturities of one year or less when purchased are stated at

cost. All other investments are stated at fair value.

New Jersey school districts are limited as to the types of investments and types of financial institutions they may

invest in. New Jersey statute 18A:20-37 provides a list of permissible investments that may be purchased by New

Jersey school districts.

17





E. Financial Statement Amounts – (Continued)

Additionally, the District has adopted a cash management plan that requires it to deposit public funds in public

depositories protected from loss under the provisions of the Government Unit Deposit Protection Act (“GUDPA”).

GUDPA was enacted in 1970 to protect Governmental Units from a loss of funds on deposit with a failed banking

institution in New Jersey.

NJSA 17:9-41 et. seq. establishes the requirements for the security of deposits of governmental units. The statute

requires that no governmental unit shall deposit public funds in a public depository unless such funds are secured in

accordance with the Act. Public depositories include Savings and Loan institutions, banks (both state and national

banks) and savings banks the deposits of which are federally insured. All public depositories must pledge collateral,

having a market value at least equal to five percent of the average daily balance of collected public funds, to secure

the deposits of Governmental Units. If a pubic depository fails, the collateral it has pledged, plus the collateral of all

other public depositories, is available to pay the full amount of their deposits to the Governmental units.

2. Investments:

Investments, including deferred compensation and pension funds, are stated at fair value, (quoted market price or the

best available estimate). Interest earned on investments in the Capital Projects Fund is transferred to the general or

debt service fund.

3. Inventories:

Inventories and prepaid expenses, which benefit future periods, other than those recorded in the enterprise fund are

recorded as an expenditure during the year of purchase.

On district-wide financial statements and in the enterprise fund inventories are valued at cost, which approximates

market, using the first-in-first-out (FIFO) method. Prepaid expenses in the Enterprise Fund represent payments made

to vendors for services that will benefit periods beyond June 30, 2016.

4. Capital Assets:

Capital assets purchased or acquired with an original cost of $2,000 or more are reported at historical cost or

estimated historical cost. Contributed assets are reported at fair market value as of the date received. Additions,

improvements and other capital outlays that significantly extended the useful life of an asset are capitalized. Other

costs incurred for repairs and maintenance are expensed as incurred. Depreciation on all assets is provided on the

straight-line basis over the following estimated useful lives:

Buildings 20-50 years

Machinery and equipment 5-10 years

Improvements 10-20 years

Infrastructure Assets 50-65 years

Infrastructure assets include roads, parking lots, underground pipe, etc. The District includes all infrastructure assets

as depreciable assets in the financial statements.

18






5. Revenues:

Substantially all governmental fund revenues are accrued. Property taxes are susceptible to accrual and under New

Jersey State Statutes a municipality is required to remit to its school district the entire balance of taxes in the amount

certified, prior to the end of the school year. The District records the entire approved tax levy as revenue (accrued) at

the start of the fiscal year, since the revenue is both measurable and available. Subsidies and grants to proprietary

funds, which finance either capital or current operations are reported as non-operating revenue. In respect to grant

revenues, the provider recognizes liabilities and expenses and the recipient recognizes receivables and revenue when

the applicable eligibility requirements, including time requirements are met. Resources transmitted before the

eligibility requirements are met are reported as advances by the provider and unearned revenue by the recipient.

Program revenues are reported as reductions to expenses in the statement of activities.

6. Expenditures:

Expenses are recognized when the related fund liability is incurred. Inventory costs other than those reported in the

enterprise fund are reported in the period when inventory items are purchased, rather than in the period used.

7. Compensated Absences:

Compensated absences are those absences for which employees will be paid, such as vacation, sick leave, and

sabbatical leave. A liability for compensated absences that are attributable to services already rendered, and that are

not contingent on a specific event that is outside the control of the District and its employees, is accrued as the

employees earn the rights to the benefits. Compensated absences that relate to future services, or that are contingent

on a specific event that is outside the control of the District and its employees, are accounted for in the period in

which such services are rendered or in which such events take place.

In governmental and similar trust funds, compensated absences that are expected to be liquidated with expendable

available financial resources are reported as both an expenditure and a fund liability in the fund that will pay for the

compensated absences. The remainder of the compensated absences liability is reported in the District-wide Financial

Statements as a Governmental Activity.

In proprietary and similar trust funds, compensated absences are recorded as an expense and liability of the fund that

will pay for them.

8. Interfund Activity:

Interfund activity is reported as loans, services provided, reimbursements or transfers. Loans are reported as

interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services

provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses.

Reimbursements are when one fund incurs a cost, charges the appropriate benefitting fund and reduces its related

costs as reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or

proprietary funds are netted as part of the reconciliation to the government-wide financial statements.

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9. Budgets/Budgetary Control:

Annual appropriation budgets are prepared in the spring of each year for the general, special revenue, and debt

service funds. The budgets are submitted to the county office for approval and, as long as the District budget is

within State mandated CAPs, there is no public vote on the budget. If the budget exceeds State mandated CAPs, the

voters have an opportunity to approve or reject the budget at the regular election held in November. Budgets are

prepared using the modified accrual basis of accounting, except for the special revenue fund as described later. The

legal level of budgetary control is established at line item accounts within each fund. Line item accounts are defined

as the lowest (most specific) level of detail as established pursuant to the minimum chart of accounts referenced in

N.J.A.C. 6:23-2(g). Transfers of appropriations may be made by School Board resolution at any time during the

fiscal year and are subject to two-thirds majority vote by the School Board and under certain circumstances require

approval by the County Superintendent of Schools.

Formal budgetary integration into the accounting system is employed as a management control device during the

year. For governmental funds there are no substantial differences between the budgetary basis of accounting and

generally accepted accounting principles with the exception of the legally mandated revenue recognition of the last

state aid payment for budgetary purposes only and the special revenue fund as noted below. Encumbrance accounting

is also employed as an extension of formal budgetary integration in the governmental fund types. Unencumbered

appropriations lapse at fiscal year end.

The accounting records of the special revenue fund are maintained on the grant accounting budgetary basis. The

grant accounting budgetary basis differs from GAAP in that the grant accounting budgetary basis recognizes

encumbrances as expenditures and also recognizes the related revenues, whereas the GAAP basis does not. Sufficient

supplemental records are maintained to allow for the presentation of GAAP basis financial reports.

10. Tuition Receivables:

Tuition charges were established by the Boards of Education based on estimated costs. The nonresident tuition

charge for fiscal years 2015/16 was $79,206.

11. Tuition Payable:

Tuition charges for the fiscal years 15/16 were based on rates established by the receiving district. These rates are

subjected to change when the actual costs have been determined.

12. 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 results.

13. Allocation of Costs:

In the government-wide statement of activities, the District has not allocated unallocated benefits to various

programs.

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14. 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 Teachers’ Pension and

Annuity Fund (TPAF) and Public Employee Retirement System (PERS) and additions to/deductions from the

fiduciary net position have been determined on the same basis as they are reported by the TPAF and PERS. For this

purpose, benefits payments (including refunds of employee contributions) are recognized when due and payable in

accordance with the benefits terms. Investments are reported at fair value.

F. RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE

In February 2015, the Governmental Accounting Standards Board (GASB) issued Statement No. 72, “Fair Value

Measurement and Application”. This statement is effective for fiscal periods beginning after June 15, 2015 will not

have any effect on the District’s financial reporting.

In June 2015, the Governmental Accounting Standards Board (GASB) issued Statement No, 73, “Accounting and

Financial Reporting for Pension and Related Assets That Are Not Within the Scope of GASB Statement 68, and

Amendments to Certain Provisions of GASB Statement 67 and 68”. This statement is effective for fiscal periods

beginning after June 30, 2016, will not have any effect on the District’s financial reporting.

In June 2015, the Governmental Accounting Standards Board (GASB) issued Statement No. 74, “Financial Reporting

for Postemployment Benefit Plans Other Than Pension Plans”. This statement is effective for fiscal periods

beginning after June 30, 2016 establishes new accounting and financial reporting requirements for OPEB plans. It is

anticipated that this statement will not have any effect on the District’s financial reporting.

In June 2015, the Governmental Accounting Standards Board (GASB) issued Statement No. 75, “Accounting and

Financial Reporting for Postemployment Benefits Plans Other Than Pensions”. This statement is effective for fiscal

periods beginning after June 30, 2017. Although not determinable, the impact of this statement on the net position of

the entity is anticipated to be significant.

In June 2015, the Governmental Accounting Standards Board (GASB) issued Statement No. 76, “The Hierarchy of

General Accepted Accounting Principles for State and Local Governments.” This statement is effective for fiscal

periods beginning June 30, 2015, will not have any effect on the District’s financial reporting.

NOTE 2 - CASH AND CASH EQUIVALENTS AND INVESTMENTS

Cash and cash equivalents includes petty cash, change funds, cash in banks and highly liquid investments with a

maturity of three months or less at the time of purchase and are stated at cost plus accrued interest.

Investments are stated at cost, or amortized cost, which approximates market. The Board classifies U.S. Treasury

with Agency obligations and certificates of deposit, which have original maturity dates of more than three months but

less than twelve months from the date of purchase, as investments stated at cost. All other investments are stated at

fair value.

New Jersey school districts are limited as to the types of investments and types of financial institutions in which they

may invest. N.J.S.A. 18A:20-37 provides a list of permissible investments that may be purchased by New Jersey

school districts as follows:

a.) Bonds or other obligations of the United States or obligations guaranteed by the United States.

b.) Bonds or any Federal Intermediate Credit Bank, Federal Home Loan Bank, Federal National Mortgage

Agency or of any United States Bank for Cooperatives which have a maturity date not greater than

twelve months from the date of purchase.

21




NOTE 2 - CASH AND CASH EQUIVALENTS AND INVESTMENTS – (Continued)

c.) Bonds or other obligations of the school district.

School districts are also permitted to deposit public funds in the State of New Jersey Cash Management Fund. As of

June 30, 2016, the District had no funds on deposit with the New Jersey Cash Management.

Deposits:

N.J.S.A. 17:9-41, et seq, establish requirements for the security of deposits of governmental units. The statutes

require that school districts deposit public funds in public depositories secured in accordance with the Governmental

Unit Deposit Protection Act, which is a multiple financial institution collateral pool enacted in 1970 to protect

governmental units from a loss of funds on deposit with a failed banking institution located in New Jersey, which are

insured by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation, or by

any other agency of the United States that insures deposits made in public depositories.

Public depositories include State or federally chartered banks, savings banks or associations located in or having a

branch office in the State of New Jersey, the deposits of which are federally insured.

All public depositories must pledge collateral, having a market value at least equal to 5% of the average daily balance

of collected public funds on deposit, to secure the deposits of Governmental Units. If a public depository fails, the

collateral it has pledged, plus the collateral of all other public depositories, is available to pay the full amount of their

deposits to Governmental Units.

All collateral must be deposited with the Federal Reserve Bank of New York, the Federal Reserve Bank of

Philadelphia, the Federal Home Loan Bank of New Jersey, or a banking institution that is a member of the Federal

Reserve System and has capital funds of not less than $25,000,000.

The school district has adopted a cash management plan that requires it to deposit public funds in public depositories

protected from loss under the Governmental Unit Deposit Protection Act and approves a list of authorized depository

institutions based on an evaluation of solicited responses and presentation of GUDPA certifications provided by the

financial institutions.

As of June 30, 2016, cash and cash equivalents in the fund financial statements of the District consisted of the

following:

Cash and Cash

Equivalents

Checking account $ 3,917,962.

TOTAL $ 3,917,962.

Custodial Credit Risk:

Custodial credit presents a risk that in the event of a bank failure, the School District’s deposits may not be returned

to it. The School District’s formal policy regarding custodial credit risk is in compliance with N.J.S.A. 17:9-41 et

seq. that the School District deposit all public funds in public depositories protected from loss under the provisions of

GUDPA Act as previously described.

The District does not place a limit on the amount that may be invested in any one issuer. As of June 30, 2016, the

District’s bank balance of $4,107,041 was insured or collateralized as follows:

Insured by Depository Insurance $ 250,000.

Collateralized under GUDPA 3,857,041.

TOTAL $4,107,041.

Interest Rate Risk

Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment.

22




NOTE 2 - CASH AND CASH EQUIVALENTS AND INVESTMENTS – (Continued)

Credit Risk

Credit risk is the risk that an issuer of an investment will not fulfill its obligations. The District does not have a

policy that restricts investment choices beyond Title 18A:20-37.

NOTE 3 - CAPITAL RESERVE ACCOUNT

A capital reserve account was established by New Jersey school districts for the accumulation of funds for capital

outlay expenditures in subsequent fiscal years. The Capital Reserve Account is maintained in the General Fund and

its activity is included in the General Fund annual budget. Funds placed in the capital reserve account are restricted

to capital projects in the district’s approved Long Range Facilities Plan (LRFP). Upon submission of the LRFP to the

department, a district may deposit funds into the capital reserve at any time upon board resolution through the

transfer of undesignated, unreserved general fund balance that is anticipated in the budget certified for taxes. Post-

April, 2005 transfers must be in compliance with P.L.2005, C73(S1701). Pursuant to N.J.A.C. 6A:23A-14.1(g) the

balance in the account cannot at any time exceed the local support cost of uncompleted capital projects of $1,496,466

as shown in the approved LRFP.

The activity of the capital reserve for the July 1, 2015 to June 30, 2016 fiscal year is as follows:

Beginning Balance, July 1, 2015 $607,791.

Interest earnings 1,216.

Deposits

Approved in 2015/2016 Budget 0.

Board Resolution 0.

Withdrawals

Approved in 2015/2016 Budget 0.

Board Resolution 0.

Ending balance, June 30, 2016 $609,007.

NOTE 4 - MAINTENANCE RESERVE

The Maintenance reserve account is used to accumulate funds for the required maintenance of a facility in accordance

with the EFCFA (N.J.S.A. 18A:7G-9) as amended by P.L. 2004, c. 73 (S1701). Districts may increase the balance in

the maintenance reserve account by appropriating funds in the annual general fund budget certified for taxes

(N.J.A.C. 6A:23-2.14) or by transfer by board resolution at year end of any anticipated revenue or unexpended line

item appropriations, or both.

The activity of the maintenance reserve for the July 1, 2015 to June 30, 2016 year is as follows:

Beginning Balance July 1, 2015 $ 865,963.

2015-2016 Budget (400,000.)

Deposits – Board Resolution 250,000.

Withdrawals – Board Resolution 0.

Ending balance June 30, 2016 $ 715,963.

The June 30, 2016 maximum maintenance reserve amount is $1,049,963.

23




NOTE 5 - FIXED ASSETS

Capital asset activity for the year ended June 30, 2016 was as follows:

Beginning

Balance

Additions

Retirements

Adjustments

Ending Balance

Governmental Activities:

Capital Assets that are not

Being Depreciated:

Land $ 312,269. $ 0. $ 0. $ 0. $ 312,269.

Construction in progress 11,687. 0. (11,687.) 0. 0.

Total Capital Assets not

being Depreciated

323,956.

0.

0.

0.

312,269.

Bldg & Bldg Improvements 21,280,352. 334,880. 0. 0. 21,615,232.

Site Improvements 696,155. 0. 0. 0. 696,155.

Machinery & Equipment 513,130. 18,368. 0. 0. 531,498.

Totals at Historical Cost 22,489,637. 353,248. 0. 0. 22,842,885.

Less: Accum. Deprec. for:

Bldg & Bldg Improvements (6,973,783.) (508,858.) 0. 0. (7,482,641.)

Site Improvements (635,905.) (4,820.) 0. 0. (640,725.)

Machinery & Equipment (265,561.) (51,129.) 0. 0. (316,690.)

Total Accum. Depreciation (7,875,249.) (564,807.) 0. 0. (8,440,056.)

Total Capital Assets

being depreciated net of

Accum. Depreciation

14,614,388.

(211,559.)

0.

0.

14,402,829.

Government Activities

Capital Assets, net

$ 14,938,344.

$ (211,559.)

$ (11,687.)

$ 0.

$ 14,715,098.

Business-type Activities:

Equipment $ 215,373. $ 3,843. $ 0. $ 0. $ 219,216.

Less Accum. Dep for:

Equipment (126,437.) (12,013.) 0. 0. (138,450.)

Business-type Activities

Capital Assets, net

$ 88,936.

$ (8,107.)

$ 0.

$ 0.

$ 80,766.

*Depreciation Expense was Charged to Governmental Functions as Follows: Instruction:

Special Education $ (310,645.)

Other Instruction (56,480.)

Support Services:

Student & Instruction Related Services (56,480.)

School Administration (62,129.)

General and Business Administrative Services (62,129.)

Plant Operations and Maintenance (16,943.)

Total Depreciation Expense $ (564,807.)

NOTE 6 - OPERATING LEASES

The District had operating leases for copying equipment during the year ended June 30, 2016. The total operating

lease payments made during the year were $20,187. The leases expire on various dates. Future minimum payments

due on the leases are as follows:

Year Amount

June 30, 2017 $15,880.

June 30, 2018 11,409.

June 30, 2019 7,957.

June 30, 2020 4,609.

June 30, 2021 3,457.

TOTAL $43,312.

24




NOTE 7 - GENERAL LONG-TERM DEBT

During the fiscal year ended June 30, 2016, the following changes occurred in liabilities reported in the general long-

term debt account group:

Type of Debt

Balance at

06/30/15

Issued

Retired

Balance at

06/30/16

Amounts Due

Within 1 Year

Governmental Activities: Compensated Absences Payable $ 415,355. $ 6,111. $ 0. $ 421,466. $ 17,827. Bonds Payable 2,780,000. 0. (410,000.) 2,370,000. 405,000. Accrued Interest on Bonds 45,407. 0. (6,696.) 38,711. 38,711.

Total $ 3,240,762. $ 6,111. $ (416,696.) $ 2,830,177. $ 461,538.

The District has no long-term debt to be repaid from business-type activities.

A. Bonds Payable:

Bonds are authorized in accordance with State laws by the voters of the municipality through referendums. All bonds

are retired in serial installments within the statutory period of usefulness. Bonds issued by the Board are general

obligation bonds.

Principal and interest due on serial bonds outstanding is as follows:

Principal Interest Total

Year Ending June 30,

2017 $ 405,000. $ 92,904. $ 497,904.

2018 400,000. 77,028. 477,028.

2019 400,000. 61,348. 461,348.

2020 395,000. 45,668. 440,668.

2021 390,000. 30,184. 420,184.

2022 380,000. 14,896. 394,896.

$ 2,370,000. $ 322,028. $ 2,692,028.

B. Bonds Payable:

As of June 30, 2016, the Board had no authorized but not issued bonds.

C. Capital Leases Payable:

The District had no capital leases in force during the 2015-2016 year.

NOTE 8 – PENSION PLANS

Description of Plans - All required employees of the District are covered by either the Public Employees' Retirement

System or the Teachers' Pension and Annuity Fund which have been established by state statute and are administered

by the New Jersey Division of Pension and Benefits (Division). According to the State of New Jersey Administrative

Code, all obligations of both Systems will be assumed by the State of New Jersey should the Systems terminate. The

Division issues a publicly available financial report that includes the financial statements and required supplementary

information for the Public Employees Retirement System and the Teachers' Pension and Annuity Fund. These reports

may be obtained by writing to the Division of Pension and Benefits, PO Box 295, Trenton, New Jersey, 08625 or the

reports can be accessed on the internet at http://www.state.nj.us/treasury/pensions/annrptsachive.htm.

25




NOTE 8 – PENSION PLANS – (Continued)

Teachers' Pension and Annuity Fund (TPAF)

The Teachers' Pension and Annuity Fund was established as of January 1, 1955, under the provisions of N.J.S.A.

18A:66 to provide retirement benefits, death, disability and medical benefits to certain qualified members. The

Teachers' Pension and Annuity Fund is considered a cost-sharing multiple-employer plan with a special funding

situation, as under current statute, all employer contributions are made by the State of New Jersey on behalf of the

District and the system's other related non-contributing employers. Membership is mandatory for substantially all

teachers or members of the professional staff certified by the State Board of Examiners, and employees of the

Department of Education who have titles that are unclassified, professional and certified.

Public Employees' Retirement System (PERS)

The Public Employees' Retirement System (PERS) was established as of January 1, 1955 under the provisions of

N.J.S.A. 43:15A to provide retirement, death, disability and medical benefits to certain qualified members. The

Public Employees' Retirement System is a cost-sharing multiple-employer plan. Membership is mandatory for

substantially all full-time employees of the State of New Jersey or any county, municipality, school district, or public

agency, provided the employee is not required to be a member of another state-administered retirement system or

other state or local jurisdiction.

Defined Contribution Retirement Program (DCRP)

The Defined Contribution Retirement Program (DCRP) was established as of July 1, 2007 under the provisions of

Chapter 92, P.L. 2007 and Chapter 103, P.L. 2007 (N.J.S.A. 43:15C-1 et seq.). The DCRP is a cost-sharing multiple-

employer defined contribution pension fund. The DCRP provides eligible members, and their beneficiaries with a tax-

sheltered, defined contribution retirement benefit, along with life insurance and disability coverage. Vesting and

benefit provisions are established by N. J.S.A. 43:15C-1 et. seq.

The contribution requirements of plan members are determined by state statute. In accordance with Chapter 92, P.L.

2007 and Chapter 103, P.L. 2007, plan members are required to contribute 5.5% of their annual covered salary. The

State Treasurer has the right under current law to make temporary reductions in member rates based on the existence

of surplus plan assets in the retirement system; however statute also requires the return to the normal rate when such

surplus pension assets no longer exist. In addition to the employee contributions, the School District’s contribution

amounts for each pay period are required to be transmitted to Prudential Financial not later than the fifth business day

after the date on which the employee is paid for that pay period.

Funding Policy

The contribution policy is set by N.J.S.A. 43:15A, Chapter 62, P.L. of 1994, Chapter 115, P.L. of 1997 and N.J.S.A.

18:66, and requires contributions by active members and contributing employers. Plan member and employer

contributions may be amended by State of New Jersey legislation. TPAF and PERS provide for employee

contributions of 5.5% of employees’ annual compensation, as defined. Employers are required to contribute at an

actuarially determined rate in both TPAF and PERS. The current TPAF rate is 6.92% and the PERS rate is 6.92% of

covered payroll. The School District’s contributions to TPAF for the years ending June 30, 2016, 2015 and 2014 are

shown below and paid by the State of New Jersey on behalf of the board, equal to the required contributions for each

year. The School District’s contributions to PERS for the years ending June 30, 2016, 2015 and 2014 are shown

below.

Three-Year Trend Information for PERS

Year

Funding

Annual

Pension

Cost (APC)

Percentage

Of APC

Contributed

June 30, 2016 $223,864. 100%

June 30, 2015 196,144. 100%

June 30, 2014 186,660. 100%

26





Three-Year Trend Information for TPAF

(Paid on Behalf of the District)

Year

Funding

Pension

Contribution

Post-Retirement

Medical (PRM)

Contribution

Total

Contribution

June 30, 2016 $461,127. $549,074. $1,010,201.

June 30, 2015 330,865. 525,248. 856,113.

June 30, 2014 259,974. 426,260. 686,234.

During the fiscal years ended June 30, 2016, 2015 and 2014, in accordance with NJSA 18A:66-66 the State of New

Jersey reimbursed the Board $439,556; $428,161; and $431,726; during the same fiscal years for the employer’s

share of social security contributions for TPAF members as calculated on their base salaries. These amounts, which

are not required to be budgeted, have been included in the financial statements, and the combining and individual

fund and account group statements and schedules as revenues and expenditures in accordance in GASB 27.

Vesting and Benefit Provisions - The vesting and benefit provisions for PERS are set by N.J.S.A. 43:15A and 43.3B,

and N.J.S.A. 18A:6C for TPAF. All benefits vest after eight to ten years of service, except for medical benefits that

vest after 25 years of service. Retirement benefits for age and service are available at age 60 and are generally

determined to be 1/60 of the final average salary for each year of service credit, as defined. Final average salary

equals the average salary for the final three years of service prior to retirement (or highest three years' compensation

if other than the final three years). Members may seek early retirement after achieving 25 years of service credit or

they may elect deferred retirement after achieving eight to ten years of service in which case benefits would begin the

first day of the month after the member attains normal retirement age. The TPAF and PERS provides for specified

medical benefits for members who retire after achieving 25 years of qualified service, as defined, or under the

disability provisions of the System. Members are always fully vested for their own contributions and, after three years

of service credit, become vested for 2% of related interest earned on the contributions. In the case of death before

retirement, members' beneficiaries are entitled to full interest credited to the members' accounts.

Significant Legislation Chapter 78, P.L. 2011, effective June 28, 2011 made various changes to the manner in which

the Public Employees’ Retirement System (PERS) and the Police and Firemen’s Retirement System (PFRS) operate

and to the benefit provisions of those systems.

Chapter 78’s provisions impacting employee pension and health benefits include:

New members of the PERS hired on or after June 28, 2011 (Tier 5 members) will need 30 years of creditable

service and age 65 for receipt of the early retirement benefit without a reduction of ¼ of 1% for each month

that the member is under age 65.

The eligibility age to qualify for a service retirement in the PERS is increased from age 63 to 65 for Tier 5

members.

The annual benefit under special retirement for new PFRS members enrolled after June 28, 2011 (Tier 3

members), will be 60% instead of 65% of the member’s final compensation plus 1% for each year of

creditable service over 25 years but not to exceed 30 years.

Increases in active member contribution rates. PERS active member rates increase from 5.5% of annual

compensation to 6.5% plus an additional 1% phased-in over 7 years; PFRS active member rate increase from

8.5% to 10%. For fiscal year 2012, the member contribution rates increased in October 2011. The phase-in

of the additional incremental member contribution rates for PES members will take place in July of each

subsequent fiscal year.

The payment of automatic cost-of-living adjustment (COLA) additional increases to current and future

retirees and beneficiaries is suspended until reactivated as permitted by this law.

27





New employee contribution requirements towards the cost of employer-provided health benefit coverage.

Employees are required to contribute a certain percentage of the cost of coverage. The rate of contribution is

determined based on the employee’s annual salary and the selected level of coverage. The increased

employee contributions will be phased in over a 4-year period for those employed prior to Chapter 78’s

effective date with a minimum contribution required to be at least 1.5% of salary.

In addition, this new legislation changes the method for amortizing the pension systems’ unfunded accrued

liability (from a level percent of pay method to a level dollar of pay).

Chapter 1, P.L. 2010, effective May 21, 2010, made a number of changes to the State-administered retirement

systems concerning eligibility, the retirement allowance formula, the definition of compensation, the positions eligible

for service credit, the non-forfeitable right to a pension, the prosecutor’s part of the PERS, special retirement under

the PFRS, and employer contributions to the retirement systems. Also, Chapter 1, P.L. 2010 changed the membership

eligibility criteria for new members of PERS from the amount of annual compensation to the number of hours worked

weekly. Also, it returned the benefit multiplier for new members of PERS to 1/60th from 1/55th, and it provided that

new members of PERS have the retirement allowance calculated using the average annual compensation for the last

five years of service instead of the last three years of service. New members of PERS will no longer receive pension

service credit from more than one employer. Pension service credit will be earned for the highest paid position only.

For new members of the PFRS, the law capped the maximum compensation that can be used to calculate a pension

from these plans at the annual wage contribution base for social security, and requires the pension to be calculated

using a three year average annual compensation instead of the last year’s salary. This law also closed the Prosecutors

Part of the PERS to new members and repealed the law for new members that provided a non-forfeitable right to

receive a pension based on the laws of the retirement system in place at the time 5 years of pension service credit is

attained. The law also requires the State to make its full pension contribution, defined a 1/7th of the required amount,

beginning in fiscal years 2012.

Chapter 3, P.L. 2010, effective May 21, 2010, replaced the accidental and ordinary disability retirement for new

members of the PERS with disability insurance coverage similar to that provided by the State to individuals enrolled

in the State’s Defined Contribution Retirement Program.

Chapter 92, P.L. 2007 implemented certain recommendations contained in the December 1, 2006 report of the Joint

Legislative Committee on Public Employee Benefits Reform; established a DCRP for elected and certain appointed

officials, effective July 1, 2007; the new pension loan interest rate became 4.69% per year, and an $8.00 processing

fee per loan was charged, effective January 1, 2008. The legislation also removed language from existing law that

permits the State Treasurer to reduce employer pension contributions needed to fund the Funds and Systems when

excess assets are available.

NOTE 9 – PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS)

At June 30, 2016, the District reported a liability of $5,845,193 for its proportionate share of the net pension liability.

The net pension liability was measured as of June 30, 2015, 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 net pension

liability was based on a projection of the District’s long-term share of contributions to the pension plan relative to the

projected contributions of all participating employers, actuarially determined. At June 30, 2015, the District’s

proportion was 0.0260388180%, which was an increase of 9.44% from its proportion measured as of June 30, 2014.

For the year ended June 30, 2016, the District recognized pension expense of $402,228. At June 30, 2016, the District

reported deferred outflows of resources and deferred inflows of resources related to PERS from the following sources:

28




NOTE 9 – PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) – (Continued)

Deferred Outflows

of Resources

Deferred Inflows

of Resources

Differences between expended and actual experience $ 139,446.

Changes of assumptions 627,727.

Net difference between projected and actual earnings

on pension plan investments

$ 223,152.

Changes in proportion and difference between District

contributions and proportionate share of contributions 356,774.

District contributions subsequent to the measurement date 448,625.

Total $ 1,572,572.

$ 223,152.

$448,625 reported as deferred outflows of resources related to pensions resulting from school district contributions

subsequent to the measurement date (June 30, 2015) will be recognized as a reduction of the net pension liability in

the year ended June 30, 2016. 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,

2017 $ 163,945.

2018 163,945.

2019 163,945.

2020 261,230.

2021 147,730.

Total $ 900,795.

Actuarial Assumptions

The collective total pension liability for the June 30, 2015 measurement date was determined by an actuarial

valuation as of July 1, 2014, which was rolled forward to June 30, 2015. This actuarial valuation used the following

actuarial assumptions:

Inflation rate

3.04 %

Salary increases:

2012-2021

2.15 – 4.40% based on age

Thereafter 3.15 – 5.40% based on age

Investment rate of return 7.90%

Mortality rates were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback 1 year for

males and females) for service retirement and beneficiaries of former members with adjustments for mortality

improvements from the base year of 2012 based on Projection Scale AA. The RP-2000 Disabled Mortality Tables

(setback 3 years for males and setback 1 year for females) are used to value disabled retirees.

The actuarial assumptions used in the July 1, 2014 valuation were based on the results of an actuarial experience

study for the period July 1, 2008 to June 30, 2011. It is likely that future experience will not exactly conform to these

assumptions. To the extent that actual experience deviates from these assumptions, the emerging liabilities may be

higher or lower than anticipated. The more the experience deviates, the larger the impact on future financial

statements.

29





In accordance with State statute, the long-term expected rate of return on plan investments (7.90% at June 30, 2015)

is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division

of Pensions and Benefits, the board of trustees and the actuaries. The long-term expected rate of return was

determined using a building block method in which best-estimate ranges of expected future real rates of return

(expected returns, net of pension plan investment expense and inflation) are developed for each major assets class.

These ranges are combined to produce the long-term expected rate of return by weighting the expected future real

rates of return by the target asset allocation percentage and be adding expected inflation. Best estimates of arithmetic

rates of return for each major asset class included in PERS’s target asset allocation as of June 30, 2015 are

summarized in the following table:

Asset Class

Target

Allocation

Long-Term

Expected Real

Rate of

Return

Cash 5.00% 1.04%

U.S. Treasuries 1.75% 1.64%

Investment Grade Credit 10.00% 1.79%

Mortgages 2.10% 1.62%

High Yield Bonds 2.00% 4.03%

Inflation-Indexed Bonds 1.50% 3.25%

Broad US Equities 27.25% 8.52%

Developed Foreign Equities 12.00% 6.88%

Emerging Market Equities 6.40% 10.00%

Private Equity 9.25% 12.41%

Hedge Funds/Absolute Return 12.00% 4.72%

Real Estate (Property) 2.00% 6.83%

Commodities 1.00% 5.32%

Global Debt ex US 3.50% -.0.40%

REIT 4.25% 5.12%

Discount Rate

The discount rate used to measure the total pension liability was 4.90% as of June 30, 2015. This single blended

discount rate was based on the long-term expected rate of return on pension plan investments of 7.90%, and a

municipal bond rate of 3.80% as of June 30, 2015, based on the Bond Buyer Go 20-Bond Municipal Bond Index

which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The

projection of cash flows used to determine the discount rate assumed that contributions from plan members will be

made at the current member contribution rates and that contributions from employers will be made based on the

average of the last five years of contributions made in relation to the last five years of actuarially contributions. Based

on those assumptions, the play’s fiduciary net position was projected to be available to make projected future benefit

payments of current plan members through 2033. Therefore, the long-term expected rate of return on plan

investments was applied to projected benefits payments through 2033, and the municipal bond rate was applied to

projected benefits payments after that date in determining the total pension liability.

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 4.90%, 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 (3.90%) or 1-percentage point higher (5.90%) than the current

rate:

30





1%

Decrease

(3.90%)

Current Discount

Rate

(4.90%)

1%

Increase

(5.90%)

District’s proportionate share of

the net pension liability

$ 7,264,860. $ 5,845,193. $ 4,654,955.

Pension plan fiduciary net position.

Detailed information about the pension plan’s fiduciary net position is available in the separately issued PERS

financial report.

NOTE 10 – TEACHERS’ PENSION AND ANNUITY FUND (TPAF)

At June 30, 2016, the District reported a liability for its proportionate share of the net pension liability that reflected a

reduction for State pension support provided to the District. The amount recognized by the District as its

proportionate share of the net pension liability, the related State support, and the total portion of the net pension

liability that was associated with the District were as follows:

District's proportionate share of the net pension liability

$ 0.

State's proportionate share of the net position liability

associated with the District

38,680,476.

Total

$ 38,680,476.

The net pension liability was measured as of June 30, 2015 and the total pension liability to calculate the net pension

liability was determined by an actuarial valuation as of that date. The District’s proportion of the net pension liability

was based on a projection of the District’s long-term share of contributions to the pension plan relative to the

projected contributions of all participating school districts and the State, actuarially determined. At June 30, 2015, the

District’s proportion was 0.00%, which was no change from its proportion measured as of June 30, 2014.

For the year ended June 30, 2016, the District recognized pension expense of $2,361,791 and revenue of $2,361,791

for support provided by the State.

Although the district does not report net pension liability or deferred outflows or inflows related to the TPAF, the

following schedule illustrates the collective net pension liability and deferred items and the State’s portion of the net

pension liability associated with the district. The collective amounts are the total of all New Jersey local governments

participating in the TPAF plan.

06/30/2015 0630/2014

Collective deferred outflows of resources

$ 7,522,890,856. $ 2,306,623,861.

Collective deferred inflows of resources

623,365,110. 1,763,205,593.

Collective net pension liability (nonemployer-

State of New Jersey

63,204,270,305.

53,446,745,367.

State’s portion of the net pension liability that

was associated with the district

38,680,476. 32,845,085.

State’s portion of the net pension liability that

was associated with the district as a percentage

of the collective net pension liability 0.0611991492%

0.061454%

31




NOTE 10 – TEACHERS’ PENSION AND ANNUITY FUND (TPAF) – (Continued)

Actuarial assumptions

The total pension liability in the June 30, 2015 measurement date was determined by an actuarial valuation as of July

1, 2014, which was rolled forward to June 30, 2015. This actuarial valuation used the following actuarial

assumptions, applied to all periods in the measurement:

Inflation rate

2.50%

Salary increases:

2012-2021

Varied based on experience

Thereafter Varied based on experience

Investment rate of return 7.90%

Mortality rates were based on the RP-2000 Health Annuitant Mortality Table for Males or Females, as appropriate,

with adjustments for mortality improvements based on Scale AA. Pre-retirement mortality improvements for active

members are projected using Scale AA from the base year of 2000 until the valuation date plus 15 years to account for

future mortality improvement. Post-retirement mortality improvements for non-disabled annuitants are projected

using Scale AA from the base year of 2000 for males and 2003 for females until the valuation date plus 7 years to

account for future mortality improvement.

The actuarial assumptions used in the July 1, 2014 valuation were based on the results of an actuarial experience

study for the period July 1, 2009 to June 30, 2012.

Long-Term Expected Rate of Return

In accordance with State statute, the long-term expected rate of return on plan investments (7.90% at June 30, 2015)

is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division

of Pensions and Benefits, the board of trustees and the actuaries. The long-term expected rate of return was

determined using a building block method in which best-estimates ranges of expected future real rates of return

(expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rate

of return by target asset allocation percentage and by adding expected inflation. Best estimate of arithmetic real rates

of return for each major asset class included in TPAF’s target asset allocation as of June 30, 2015 are summarized in

the following table:

32




NOTE 10 – TEACHERS’ PENSION AND ANNUITY FUND (TPAF) – (Continued)

Asset Class

Target

Allocation

Long-Term

Expected Real

Rate of

Return

U,S, Cash 5.00% 0.53%

U.S. Government Bonds 1.75% 1.39%

U.S. Credit Bonds 13.50% 2.72%

U.S. Mortgages 2.10% 2.54%

U.S. Inflation-Indexed Bonds 1.50% 1,47%

U.S. High Yield Bonds 2.00% 4.57%

U.S. Equity Market 27.25% 5.63%

Foreign-Developed Equity 12.00% 6.22%

Emerging Market Equity 6.40% 8.46%

Private Real Estate Property 4.25% 3.97%

Timber 1.00% 4.09%

Farmland 1.00% 4.61%

Private Equity 9.25% 9.15%

Commodities 1.00% 3,58%

Hedge Funds - MultiStrategy 4.00% 4.59%

Hedge Funds – Equity Hedge 4.00% 5.68%

Hedge Funds - Distressed 4.00% 4.30%

Discount rate

The discount rate used to measure the total pension liability was 4.13% as of June 30, 2015. This single blended

discount rate was based on the long-term expected rate of return on pension plan investments of 7.90%, and a

municipal bond rate of 3.29% and 4.63% as of June 30, 2014 and 2013, respectively, based on the Bond Buyer Go 20-

Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of

AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from

plan members will be made at the current member contribution rates and that contributions from employers will be

made based on the average of the last five years of employers’ contribution. Based on those assumptions, the plan’s

fiduciary net position was projected to be available to make projected future benefit payments of current plan

members through 2027. Therefore, the long-term expected rate of return on plan investments was applied to projected

benefit payments through 2027, and the municipal bond rate was applied to projected benefit payments after that date

in determining the total pension liability.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liability of the State as of June 30, 2015 calculated using the discount rate as

disclosed above as well as what the State’s net pension liability would be if it was calculated using a discount rate that

is 1-percentage point lower or 1-percentage-point higher than the current rate:

At 1%

Decrease (3.13%)

At current

discount

rate (4.13%)

At 1%

Increase (5.13%)

$ 75,559,915,440 63,577,864,440 53,254,610,440

Pension plan fiduciary net position.

Detailed information about the pension plan’s fiduciary net position is available in the separately issued TPAF

financial report.

33




NOTE 11- POST RETIREMENT BENEFITS

P.L. 1987, c. 384 and P.L. 1990, c.6 required Teachers’ Pensions and Annuity Fund (TPAF) and the Public

Employees’ Retirement System (PERS), respectively, to fund post-retirement medical benefits for those State

employees who retire after accumulating 25 years of credited service or on a disability retirement. P.L. 2007, c.103

amended the law to eliminate the funding of post-retirement medical benefits through the TPAF and PERS. It

created separate funds outside of the pension plans for the funding and payment of post-retirement medical benefits

for retired state employees and retired educational employees. As of June 30, 2015, there were 107,314 retirees

receiving post-retirement medical benefits, and the State contributed $1.25 billion on their behalf. The cost of these

benefits is funded through contributions by the State in accordance with P.L. 1994, c.62. Funding of post-retirement

medical benefits changed from a pre-funding basis to a pay-as-you-go basis beginning in Fiscal Year 1994.

The State is also responsible for the cost attributable to P.L. 1992, c.126, which provides employer paid health

benefits to members of PERS, and the Alternate Benefit Program who retired from a board of education or county

college with 25 years of service. The State paid $214.1 million toward Chapter 126 benefits for 19,056 eligible

retired members in Fiscal Year 2015.

GASB statement #45 requires certain disclosures relating to governmental entities obligations for other post-

employment benefits (OPEB), which are post-employment benefits other than pensions. The District does not provide

post-employment benefits other than pension. Healthcare provided to eligible TPAF and PERS board of education

retirees through the NJ State Health Benefits Program are paid by the State of New Jersey and as such, no district

OPEB liability exists.

The School Employees Health Benefits Program (SEHBP) Act is found in New Jersey Statutes Annotated, Title 52,

article 17.25 et.seq. Rules governing the operation and administration of the program are found in Title 17, Chapter

9 of the New Jersey Administrative Code. The State of New Jersey Division of Pensions and Benefits issues a

publicly available financial report that includes financial statements and required supplementary information for

SEHBP. That report may be obtained from the Treasury website at:

http://www.nj.gov/treasury/pensions/pdf/financial/2015divisioncombined.pdf

NOTE 12 - COMPENSATED ABSENCES

The District accounts for compensated absences (e.g., unused vacation, sick leave) as directed by Government

Accounting Standards Board Statement No. 16 (GASB 16), “Accounting for Compensated Absences”. A liability for

compensated absences attributable to services already rendered and not contingent on a specific event that is outside

the control of the employer and employee is accrued as employees earn the rights to the benefits.

District employees are granted varying amounts of vacation and sick leave in accordance with the District’s personnel

policy. Upon termination, employees are paid for accrued vacation. The District’s policy permits employees to

accumulate unused sick leave and carry forward the full amount to subsequent years. Upon retirement employees

shall be paid by the District for the unused sick leave in accordance with the District’s agreements with the various

employee unions.

The liability for vested compensated absences of the governmental activities is recorded as long-term debt in the

district-wide statements. The current portion of the compensated absences balance is not considered material to the

applicable funds total liabilities, and therefore, is not shown separately from the long-term liability balance of

compensated absences.

The liability for vested compensated absences of the proprietary fund types is recorded within those funds as the

benefits accrue to employees. As of June 30, 2016, a liability existed for compensated absences in the Food Service

Fund in the amount of $0.

34




NOTE 13 - DEFERRED COMPENSATION

The Board offers its employees a choice of the following deferred compensation plans created in accordance with

Internal Revenue Code Section 403(b). The plans, which are administered by the entities listed below, permits

participants to defer a portion of their salary until future years. Amounts deferred under the plans are not available to

employees until termination, retirement, death or unforeseeable emergency. The plan administrators are as follows:

GWN Marketing

NOTE 14 - RISK MANAGEMENT

The District is exposed to various types of loss related to torts; theft of, damage to, and destruction of assets; errors

and omissions; injuries to employees; and natural disasters.

Property and Liability Insurance – The District maintains commercial insurance coverage for property, liability,

student accident, and surety bonds. A complete schedule of insurance coverage can be found in the Statistical Section

of this Comprehensive Annual Financial Report.

New Jersey Unemployment Compensation Insurance – The District has elected to fund its New Jersey

Unemployment Compensation Insurance under the “Benefit Reimbursement Method”. Under this plan, the District is

required to reimburse the New Jersey Unemployment Trust Fund for benefits paid to its former employees and

charged to its account with the State. The District is billed quarterly for amounts due to the State. The following is a

summary of District contributions, employee contributions, reimbursements to the State for benefits paid and the

ending balance of the District’s expendable trust fund for the current and previous two years:

District Employee Interest Amount Ending

Fiscal Year Contributions Contributions Income Reimbursed Balance

2015-2016 $0. $25,766. $218. $11,789. $154,970.

2014-2015 0. 24,792. 554. 34,150. 140,775.

2013-2014 0. 25,255. 673. 40,789. 149,579.

NOTE 15 - INTERFUND RECEIVABLES AND PAYABLES

The following interfund balances remained on the balance sheet at June 30, 2016.

Interfund Interfund

Fund Receivable Payable

General Fund $ 111,173. $ 0.

Special Revenue Fund 0. 22,149.

Capital Projects Fund 0. 86,433.

Debt Service Fund 670. 0.

Enterprise Fund 0. 2,566.

Internal Service Fund 0. 685.

$111,843. $111,843.

The balances resulted from the time lag between the dates that:

1. Interfund goods and services are provided or reimbursable expenditures occur;

2. Transactions are recorded in the accounting system, and;

3. Payments between funds are made.

The amount due from the Special Revenue Fund to the General Fund is the result of grant expenditures being paid in

advance of the receipt of grant funds.

The amount due from the Capital Projects Fund to the Debt Service Fund is a result of transferring the interest earned

in the Capital Projects Fund.

35




NOTE 16 - CONTINGENT LIABILITIES

The Board is involved in several claims and lawsuits incidental to its operation. In the opinion of the administration

and legal counsel, the ultimate resolution of these matters will not have a material adverse effect on the financial

position of the District.

NOTE 17 - CALCULATION OF EXCESS SURPLUS

In accordance with N.J.S.A. 18A:7F-7, as amended by P.L. 2004, c.73 (S1701), the designation for Reserved Fund

Balance – Excess Surplus is a required calculation pursuant to the New Jersey Comprehensive Educational

Improvement and Financing Act of 1996 (CEIFA). New Jersey school districts are required to reserve General Fund

fund balance at the fiscal year end of June 30, if they did not appropriate a required minimum amount as budgeted

fund balance in their subsequent years’ budget. The excess fund balance at June 30, 2016 is $1,339,226.

NOTE 18 - DEFICIT FUND BALANCES

The District has a deficit fund balances of $0 in the General Fund and $(22,260) in the Special Revenue Fund as of

June 30, 2016 as reported in the fund statements (modified accrual basis). N.J.S.A. 18A:22-44.2 provides that in the

event a state school aid payment is not made until the following school budget year, districts must record the delayed

one or more June state aid payment as revenue, for budget purposes only, in the current school budget year. The bill

provides legal authority for school districts to recognize this revenue in the current budget year. For

intergovernmental transactions, GASB Statement No. 33 requires that recognition (revenue, expenditure, asset,

liability) should be in symmetry, i.e., if one government recognizes an asset, the other government recognizes a

liability. Since the State is recording the June state aid payment(s) in the subsequent fiscal year, the school district

can not recognize the June state aid payment(s) on the GAAP financial statements until the year the State records the

payable. Due to the timing difference of recording the June state aid payment(s), the General and Special Revenue

Fund balance deficit does not alone indicate the district is facing financial difficulties.

Pursuant to N.J.S.A. 18A:22-44.2 any negative unreserved, undesignated general fund balance that is reported as a

direct result from a delay in the June payment(s) of state aid until the following fiscal year, is not considered in

violation of New Jersey statute and regulation nor in need of corrective action. The District deficit in the GAAP

funds statements of $(22,260) is equal to (or) is less than the last state aid payments.

NOTE 19 - FUND BALANCE

NONSPENDABLE

As stated in Note 1, the nonspendable fund balance classification includes amounts that cannot be spent because they

are either not in spendable form or are legally or contractually required to be maintained intact. There are no

nonspendable fund balances of the School district as of June 30, 2016.

RESTRICTED

As stated in Note 1, the restricted fund balance classification includes amounts that are restricted to specific purposes.

Such restrictions, or constraints, are placed on the use of resources by either of the following: (1) externally imposed

by creditors, grantors, contributors, or laws or regulations of other governments; or (2) imposed by law through

constitutional provisions or enabling legislation. Specific restrictions of the School District’s fund balance are

summarized as follows:

General Fund:

Excess Surplus: In accordance with N.J.S.A. 18A:7F-7, as amended, the designation of restricted fund

balance – excess surplus is the result of a required calculation pursuant to the New Jersey Comprehensive

Educational Improvement and Financing Act of 1996 (CEIFA). New Jersey school districts are required to

reserve general fund balance at the fiscal year end of June 30 if they did not appropriate a required minimum

amount as budgeted fund balance in their subsequent years’ budget. The excess fund balance at June 30,

2016 is $1,339,226; $578,289 has been restricted and designated for utilization in the 2016-2017 budget.

Capital Reserve Account: As of June 30, 2016, the balance in the capital reserve account is $609,007.

These funds are restricted for the future approved capital projects of school facilities.

36




NOTE 19 - FUND BALANCE – (Continued)

For Maintenance Reserve Account: As of June 30, 2016, the balance in the maintenance reserve account is

$715,963. These funds are restricted for the required maintenance of school facilities in accordance with

Educational Facilities Construction and Financing Act (EFCFA) (N.J.S.A. 18A:7G-9) as amended by P.L.

2004, c.73 (S1701).

COMMITTED

As stated in Note 1, the committed fund balance classification includes amounts that can only be used for specific

purposes pursuant to constraints imposed by formal action of the School District’s highest level of decision making

authority, which, for the School District, is the Board of Education. Such formal action consists of an affirmative

vote by the Board of Education, memorialized by the adoption of a resolution. Once committed, amounts cannot be

used for any other purpose unless the Board of Education removes, or changes, the specified use by taking the same

type of action (resolution) it employed to previously commit those amounts.

Other Purposes: As of June 30, 2016, the School District had $16,298 of encumbrances outstanding for

purchase orders and contracts signed by the School District but not completed as of the close of the fiscal

year.

ASSIGNED

As stated in Note 1, the assigned fund balance classification includes amounts that are constrained by the School

District’s intent to be used for specific purposes, but are neither restricted nor committed. Specific assignments of the

School District’s fund balance are summarized as follows:

For Subsequent Year’s Expenditures: The School District has appropriated and included as an anticipated

revenue for the fiscal year ending June 30, 2017, $8,906 of general fund balance, $25,992 of capital project

fund balance, and $633 of the debt service fund balance at June 30, 2016.

UNASSIGNED

As stated in Note 1, the unassigned fund balance classification represents fund balance that has not been restricted,

committed, or assigned to specific purposes. The School District’s unassigned fund balance is summarized as

follows:

General Fund:

As of June 30, 2016, the unassigned fund balance of the general fund was $(334,807).

Debt Service Fund:

Of the $670 Debt Service balance at June 30, 2016; $633 has been appropriated and included as anticipated

revenue for the year ending June 30, 2017 and $37 is unreserved and undesignated.

NOTE 20 - SUBSEQUENT EVENTS

Management has reviewed and evaluated all events and transactions that occurred from June 30, 2016 through

November 18, 2016, the date that the financial statements were available to be issued for possible disclosure and

recognition in the financial statements, and no items have come to the attention of the District that would require

disclosure.

37

REQUIRED SUPPLEMENTARY INFORMATION–PART II

BUDGETARY COMPARISON SCHEDULES

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R D

EE

RF

IEL

D T

OW

NS

HIP

SC

HO

OL

DIS

TR

ICT

BU

DG

ET

AR

Y C

OM

PA

RIS

ON

SC

HE

DU

LE

GE

NE

RA

L F

UN

D

FIS

CA

L Y

EA

R E

ND

ED

JU

NE

30

, 2

01

6

Ed

uca

tio

na

l M

ed

ia S

erv

ice

s -

Sch

oo

l L

ibra

ry

Sa

larie

s1

01

,69

8.

$

1,5

58

.$

10

3,2

56

.$

10

3,0

72

.$

18

4.

$

Pu

rch

ase

d P

rofe

ssio

na

l a

nd

Te

ch

nic

al S

erv

ice

s7

,50

0.

0

.

7,5

00

.

1,1

47

.

6,3

53

.

Oth

er

Pu

rch

ase

d S

erv

ice

s4

00

.

0

.

40

0.

0.

4

00

.

Su

pp

lies a

nd

Ma

teri

als

13

,08

0.

(1,5

58

.)

11

,52

2.

9,1

77

.

2,3

45

.

Oth

er

Ob

jects

50

.

0.

5

0.

0

.

50

.

To

tal e

du

ca

tio

na

l m

ed

ia s

erv

ice

s -

sch

oo

l lib

rary

12

2,7

28

.

0.

1

22

,72

8.

1

13

,39

6.

9

,33

2.

Instr

uctio

na

l S

taff

Tra

inin

g S

erv

ice

s:

Pu

rch

ase

d P

rofe

ssio

na

l-E

du

ca

tio

na

l S

erv

ice

s2

5,0

00

.

(3

,00

0.)

2

2,0

00

.

1

8,5

75

.

3

,42

5.

Oth

er

Pu

rch

ase

d S

erv

ice

s6

,50

0.

0

.

6,5

00

.

1,1

31

.

5,3

69

.

Su

pp

lies a

nd

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teri

als

50

0.

0.

5

00

.

0

.

50

0.

Oth

er

Ob

jects

35

0.

0.

3

50

.

0

.

35

0.

To

tal in

str

uctio

na

l stu

ff t

rain

ing

se

rvic

es

32

,35

0.

(3,0

00

.)

29

,35

0.

19

,70

6.

9,6

44

.

Su

pp

ort

Se

rvic

es -

Ge

ne

ral A

dm

inis

tra

tio

n:

Sa

larie

s1

17

,64

9.

1

1,5

29

.

12

9,1

78

.

12

4,1

40

.

5,0

38

.

Le

ga

l S

erv

ice

s1

0,0

00

.

(3

,24

5.)

6

,75

5.

1

,45

9.

5

,29

6.

Au

dit F

ee

s2

7,0

00

.

0

.

27

,00

0.

19

,65

0.

7,3

50

.

Arc

hite

ctu

ral/E

ng

ine

eri

ng

Se

rvic

es

11

,00

0.

(7,8

54

.)

3,1

46

.

1,0

00

.

2,1

46

.

Oth

er

Pu

rch

ase

d P

rofe

ssio

na

l S

erv

ice

s8

,00

0.

(2

,44

0.)

5

,56

0.

4

,52

8.

1

,03

2.

Co

mm

un

ica

tio

ns/T

ele

ph

on

e4

8,0

00

.

4

0.

48

,04

0.

37

,28

8.

10

,75

2.

BO

E O

the

r P

urc

ha

se

d S

erv

ice

s4

,00

0.

4

,36

9.

8,3

69

.

7,9

80

.

38

9.

Oth

er

Pu

rch

ase

d S

erv

ice

s5

0,0

00

.

(1

,00

0.)

4

9,0

00

.

4

4,4

38

.

4

,56

2.

Ge

ne

ral S

up

plie

s7

,12

3.

(2

,65

0.)

4

,47

3.

2

,63

4.

1

,83

9.

BO

E I

n H

ou

se

Tra

inin

g /

Me

etin

g S

up

plie

s7

50

.

0

.

75

0.

27

5.

4

75

.

Mis

ce

llan

eo

us E

xp

en

ditu

res

4,5

00

.

0.

4

,50

0.

3

,79

5.

7

05

.

BO

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em

be

rsh

ip D

ue

s &

Fe

es

8,0

00

.

0.

8

,00

0.

6

,67

7.

1

,32

3.

To

tal su

pp

ort

se

rvic

es -

ge

ne

ral a

dm

inis

tra

tio

n2

96

,02

2.

(1

,25

1.)

2

94

,77

1.

2

53

,86

4.

4

0,9

07

.

42

EX

HIB

IT C

- 61

Va

ria

nce

Ori

gin

al

Bu

dg

et

Fin

al

Fa

vo

rab

le

Bu

dg

et

Tra

nsfe

rsB

ud

ge

tA

ctu

al

(U

nfa

vo

rab

le)

UP

PE

R D

EE

RF

IEL

D T

OW

NS

HIP

SC

HO

OL

DIS

TR

ICT

BU

DG

ET

AR

Y C

OM

PA

RIS

ON

SC

HE

DU

LE

GE

NE

RA

L F

UN

D

FIS

CA

L Y

EA

R E

ND

ED

JU

NE

30

, 2

01

6

Su

pp

ort

Se

rvic

es -

Sch

oo

l A

dm

inis

tra

tio

n:

Sa

larie

s o

f P

rin

cip

als

/Assis

tan

t P

rin

cip

als

22

0,5

27

.$

4,6

60

.$

22

5,1

87

.$

22

5,1

84

.$

3.

$

Sa

larie

s o

f S

ecre

tari

al a

nd

Cle

rica

l A

ssis

tan

ts1

75

,80

9.

2

,44

1.

17

8,2

50

.

17

6,8

25

.

1,4

25

.

Oth

er

Pu

rch

ase

d S

erv

ice

s3

3,0

00

.

0

.

33

,00

0.

24

,46

0.

8,5

40

.

Su

pp

lies a

nd

Ma

teri

als

22

,00

0.

0.

2

2,0

00

.

1

6,8

04

.

5

,19

6.

Oth

er

Ob

jects

7,0

00

.

0.

7

,00

0.

2

,04

4.

4

,95

6.

To

tal su

pp

ort

se

rvic

es -

sch

oo

l a

dm

inis

tra

tio

n4

58

,33

6.

7

,10

1.

46

5,4

37

.

44

5,3

17

.

20

,12

0.

Un

dis

trib

ute

d E

xp

en

ditu

res -

Ce

ntr

al S

erv

ice

s:

Sa

larie

s2

05

,74

3.

9

,85

5.

21

5,5

98

.

21

5,5

98

.

0.

Pu

rch

ase

d T

ech

nic

al S

erv

ice

s1

8,0

00

.

8

25

.

18

,82

5.

18

,82

5.

0.

Mis

c P

urc

ha

se

d S

erv

ice

s

( 4

00

-50

0 S

erie

s)

7,0

00

.

85

3.

7

,85

3.

7

,85

3.

0

.

Su

pp

lies a

nd

Ma

teri

als

7,5

00

.

(1,9

28

.)

5,5

72

.

5,1

89

.

38

3.

Inte

rest

on

Bo

nd

An

ticip

atio

n N

ote

s

0.

0.

0

.

0

.

0.

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ce

llan

eo

us E

xp

en

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res

2,5

00

.

25

0.

2

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0.

2

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9.

1

61

.

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tal u

nd

istr

ibu

ted

exp

en

ditu

re -

ce

ntr

al se

rvic

es

24

0,7

43

.

9,8

55

.

2

50

,59

8.

2

50

,05

4.

5

44

.

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dis

trib

ute

d E

xp

en

ditu

res -

Ad

min

In

fo T

ech

:

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larie

s2

6,3

05

.

8

8.

26

,39

3.

26

,39

3.

0.

Pu

rch

ase

d P

rofe

ssio

na

l S

erv

ice

s8

5,4

79

.

(1

8,3

58

.)

6

7,1

21

.

6

6,1

70

.

9

51

.

Oth

er

Pu

rch

ase

d S

erv

ice

s5

,00

0.

0

.

5,0

00

.

36

0.

4

,64

0.

Su

pp

lies a

nd

Ma

teri

als

20

,00

0.

4,2

12

.

2

4,2

12

.

2

0,7

97

.

3

,41

5.

Oth

er

Ob

jects

10

0.

0.

1

00

.

0

.

10

0.

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tal u

nd

istr

ibu

ted

exp

en

ditu

res -

ad

min

in

fo t

ech

13

6,8

84

.

(14

,05

8.)

12

2,8

26

.

11

3,7

20

.

9,1

06

.

Allo

wa

ble

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inte

na

nce

fo

r S

ch

oo

l F

acili

tie

s

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larie

s7

3,1

85

.

0

.

73

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5.

61

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3.

11

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2.

Cle

an

ing

, R

ep

air

an

d M

ain

ten

an

ce

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rvic

es

40

0,0

00

.

(11

1,3

70

.)

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8,6

30

.

26

8,7

99

.

19

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1.

Ge

ne

ral S

up

plie

s1

5,0

00

.

8

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0.

23

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0.

22

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1.

21

9.

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tal a

llow

ab

le m

ain

ten

an

ce

fo

r sch

oo

l fa

cili

tie

s4

88

,18

5.

(1

03

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0.)

3

84

,91

5.

3

53

,42

3.

3

1,4

92

.

43

EX

HIB

IT C

- 71

Va

ria

nce

Ori

gin

al

Bu

dg

et

Fin

al

Fa

vo

rab

le

Bu

dg

et

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ge

tA

ctu

al

(U

nfa

vo

rab

le)

UP

PE

R D

EE

RF

IEL

D T

OW

NS

HIP

SC

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TR

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ET

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Y C

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RA

L F

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D

FIS

CA

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ED

JU

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01

6

Oth

er

Op

era

tio

n a

nd

Ma

inte

na

nce

of

Pla

nt

Se

rvic

es:

Sa

larie

s5

02

,74

4.

$

7,3

22

.$

51

0,0

66

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47

7,4

51

.$

32

,61

5.

$

Sa

larie

s o

f N

on

-In

str

uctio

na

l A

ide

s

78

,52

0.

5,9

69

.

8

4,4

89

.

8

4,4

89

.

0

.

Pu

rch

ase

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rofe

ssio

na

l a

nd

Te

ch

nic

al S

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ice

s9

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0.

0

.

9,0

00

.

6,1

26

.

2,8

74

.

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an

ing

, R

ep

air

an

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ain

ten

an

ce

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rvic

es

36

,00

0.

(6,0

26

.)

29

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4.

17

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1.

12

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3.

Oth

er

Pu

rch

ase

d P

rop

ert

y S

erv

ice

s1

3,0

00

.

0

.

13

,00

0.

9,9

18

.

3,0

82

.

Insu

ran

ce

65

,00

0.

0.

6

5,0

00

.

6

4,8

71

.

1

29

.

Ge

ne

ral S

up

plie

s6

5,0

00

.

(2

0.)

64

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0.

50

,05

6.

14

,92

4.

En

erg

y (

Na

tura

l G

as)

85

,00

0.

(11

,35

6.)

73

,64

4.

53

,29

5.

20

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9.

En

erg

y (

Ele

ctr

icity)

30

0,0

00

.

53

4.

3

00

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4.

3

00

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4.

0

.

En

erg

y (

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00

.

0.

7

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0.

8

70

.

6,1

30

.

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erg

y (

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so

line

)5

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0.

0

.

5,0

00

.

4,7

94

.

20

6.

Oth

er

Ob

jects

75

0.

77

.

8

27

.

8

25

.

2.

To

tal o

the

r o

pe

ratio

n a

nd

ma

inte

na

nce

of

pla

nt

se

rvic

es

1,1

67

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4.

(3

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0.)

1

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3,5

14

.

1,0

70

,30

0.

93

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4.

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re a

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ep

of

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un

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larie

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0,6

42

.

2

0,0

00

.

60

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33

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5.

26

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7.

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nd

up

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ep

of

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ds

40

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2.

20

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0.

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42

.

3

3,9

95

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2

6,6

47

.

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pe

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nce

of

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nt

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es

1,6

95

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1.

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6,7

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.)

1

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9,0

71

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1,4

57

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8.

15

1,3

53

.

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de

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nsp

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na

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nt

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00

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1

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41

.

45

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31

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0.

13

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Co

ntr

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s -

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in

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u o

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en

ts -

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n P

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00

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2

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40

.

58

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0.

36

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2.

22

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8.

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ntr

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in

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en

ts -

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e

10

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.)

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80

.

4,8

62

.

3,7

18

.

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ntr

acte

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s (

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me

/Sch

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l) -

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nd

ors

50

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59

.

0.

7

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9.

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ntr

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s (

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t H

om

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ch

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l) -

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nd

ors

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0.

5

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0.

4

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9

51

.

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s -

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om

e/S

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l) J

oin

t A

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em

en

t4

35

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0.

0

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43

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00

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43

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30

.

2,7

70

.

Co

ntr

acte

d S

erv

ice

s (

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g.

Stu

de

nts

) -

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Cs

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00

.

2,5

40

.

6

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0.

6

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0.

0

.

Co

ntr

acte

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ice

s (

Sp

ecia

l E

d.)

- E

SC

s1

40

,00

0.

1

20

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1.

26

0,5

41

.

26

0,5

41

.

0.

To

tal stu

de

nt

tra

nsp

ort

atio

n s

erv

ice

s7

07

,00

0.

1

20

,20

1.

82

7,2

01

.

77

5,6

24

.

51

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7.

44

EX

HIB

IT C

- 81

Va

ria

nce

Ori

gin

al

Bu

dg

et

Fin

al

Fa

vo

rab

le

Bu

dg

et

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ge

tA

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al

(U

nfa

vo

rab

le)

UP

PE

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EE

RF

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D T

OW

NS

HIP

SC

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DIS

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ET

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Y C

OM

PA

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LE

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NE

RA

L F

UN

D

FIS

CA

L Y

EA

R E

ND

ED

JU

NE

30

, 2

01

6

Un

allo

ca

ted

Be

ne

fits

:

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cia

l S

ecu

rity

Co

ntr

ibu

tio

ns

16

0,0

00

.$

41

,31

0.

$

20

1,3

10

.$

20

1,3

10

.$

0.

$

Oth

er

Re

tire

me

nt

Co

ntr

ibu

tio

ns -

Re

gu

lar

22

2,0

60

.

3,9

00

.

2

25

,96

0.

2

25

,15

5.

8

05

.

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em

plo

ym

en

t C

om

pe

nsa

tio

n3

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0.

0

.

3,0

00

.

0.

3

,00

0.

Wo

rkm

en

's C

om

pe

nsa

tio

n9

8,0

00

.

0

.

98

,00

0.

92

,96

7.

5,0

33

.

He

alth

Be

ne

fits

1,9

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47

NOTES TO REQUIRED SUPPLEMENTARY

INFORMATION – PART II

EXHIBIT C-3

Explanation of Differences between Budgetary Inflows and Outflows and GAAP Revenues and Expenditures.

General Fund

Special

Revenue Fund

Capital Projects

Fund

Sources/inflows of resources:

Actual amounts (budgetary) "revenues" from the budgetary

comparison schedules 14,601,410.$ 1,685,487.$ 37.$

Differences - Budget to GAAP:

Add: Prior Year Encumbrance 4,929

Less: Current Year Encumbrance (73,237.)

601,504. 25,228. 59,786

(600,880.) (22,260.)

14,602,034.$ 1,620,147.$ 59,823.$

Uses/Outflow of resources:

14,165,812.$ 1,685,487.$ 119,497.$

Differences - Budget to GAAP:

Prior Year Encumbrance Paid 4,929.

Current Year Encumbrance (73,237.)

14,165,812.$ 1,617,179.$ 119,497.$


Total Expenditures as reported on the statement of

revenues, expenditures, and changes in fund balances -

governmental funds.

State aid payment recognized for GAAP statement in

the current year, previously recognized for budgetary

purposes.

State aid payment recognized for budgetary purposes

not recognized for GAAP statements until the

subsequent year.

Total revenues as reported in the statement of revenues,

expenditures and changes in fund balances - governmental

funds.

Actual amounts (budgetary basis) "total outflows" from the

budgetary comparison schedule.

Grant accounting budgetary basis differs from

GAAP in that encumbrances are recognized as

expenditures, and the related revenue is recognized.

Encumbrances for supplies and equipment ordered but

not received are reported in the year the order is placed

for budgetary purposes, but in the year the supplies are

received for financial reporting purposes.


BUDGETARY COMPARISON SCHEDULE

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

48

REQUIRED SUPPLEMENTARY INFORMATION–PART III

Schedules Related to Accounting and Reporting for Pensions

(GASB 68)

EXHIBIT L-1

2015 2014 2013

District's proportion of the net pension

liability (asset) 0.02603882% 0.02379300% 0.02477300%

District's proportionate share of the net

pension liabiltiy (asset) 5,845,193.$ 4,454,654.$ 4,734,625.$

District's covered-employee payroll 1,776,658.$ 1,939,516.$ N/A

District 's proportionate share of the net

pension liability (asset) as a percentage

of its covered-employee payroll 329.00% 229.68% N/A

Plan fiduciary net position as a

percentage of the total pension liability 47.93% 52.08% 48.72%

SOURCE: GASB 68 report on Public Employee's Retirement System; District Records

NOTE: This schedule is required by GASB 68 to be show information for a 10 year period.

Additional years will be presented as they become available.


PERS

Measurement Date

Ending June 30,

Last Three Fiscal Years

SCHEDULES OF DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

49

EXHIBIT L-2

2016 2015 2014

Contractually required contribution 223,864.$ 196,144.$ 186,660.$

Contributions in relation to the

contractually required contribution (223,864.) (196,144.) (186,660.)

Contribution deficiency (excess) 0. 0. 0.

District's covered-employee payroll $1,776,658 1,939,516.$ N/A

Contributions as a percentage of

covered-employee payroll 12.60% 10.11% N/A

2016 2015 2014

Contractually required contribution N/A N/A N/A

Contributions in relation to the

contractually required contribution N/A N/A N/A

Contribution deficiency (excess) N/A N/A N/A

District's covered-employee payroll $6,126,013 5,799,078.$ N/A

Contributions as a percentage of

covered-employee payroll N/A N/A N/A

SOURCE: GASB 68 report on Public Employee's Retirement System/Teachers' Pension and Annuity Fund;

District Records



Fiscal Year Ending June 30,

TPAF


SCHEDULE OF DISTRICT CONTRIBUTIONS

PERS


Fiscal Year Ending June 30,

50

EXHIBIT L-3

2015 2014 2013

District's proportion of the net pension liability

(asset) N/A N/A N/A

District's proportionate share of the net N/A N/A N/A

pension liabiltiy (asset)

State's proportionate share of the net pension

liability (asset) associated with the District 38,680,476.$ 32,845,085.$ 32,243,472.$

Total 38,680,476.$ 32,845,085.$ 32,243,472.$

District's covered-employee payroll 6,126,013.$ 5,799,078.$ N/A

District 's proportionate share of the net

pension liability (asset) as a percentage

of its covered-employee payroll N/A N/A N/A

Plan fiduciary net position as a

percentage of the total pension liability 28.71% 33.64% 33.76%

SOURCE: GASB 68 report on Teachers' Pension and Annuity Fund; District Records




SCHEDULES OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

TPAF


Measurement Date

Ending June 30,

51

NOTES TO REQUIRED SUPPLEMENTARY

INFORMATION – PART III

EXHIBIT L-4


NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

PENSION SCHEDULES

JUNE 30, 2016

Note 1: Teachers’ Pension and Annuity Fund (TPAF)

Changes of benefits terms. The vesting and benefits provisions are set by N.J.S.A. 18A:66. TPAF provides

retirement, death, and disability benefits. All benefits vest after years of service, except for medical benefits,

which vest after 25 years of service or under the disability provisions of TPAF. Members are always fully

vested for their own contributions and, after three years of service credit, become vented for 2% of related

interest earned on the contributions. In the case of death before retirement, members’ beneficiaries are

entitled to full interest credited to the member’s accounts.

Changes of assumptions. Mortality rates were based on the RP-2000 Health Annuitant Mortality for Males

or Females, as appropriate, with adjustments for mortality improvements based on Scale AA. Pre-retirement

mortality improvements for active member are projected using Scale AA from the base year of 2000 until

the valuation date plus 15 years to account for future mortality improvement. Post-retirement mortality

improvement for non-disabled annuitants are projected using Scale AA from the base year of 2000 for males

and 2003 for females until the valuation date plus 7 years to account for future mortality improvement.

Note 2: Public Employees’ Retirement System (PERS)

Changes of benefits terms. The vesting and benefits provisions are set by N.J.S.A. 43:15A. PERS provides

retirement, death, and disability benefits. All benefits vest after ten years of service, except for medical

benefits, which vest after 25 years of service or under the disability provisions of PERS.

Changes of assumptions. Mortality rates were based on the RP-2000 Combined Healthy Male and Female

Mortality Tables (setback 1 year for females) with adjustments for mortality improvements from the base

year of 2012 Based on Projection Scale AA.

Note 3: Schedule of School District’s Proportionate Share of the Net Pension Liability – PERS/TPAF

and Schedule of Employer’s Contribution for PERS/TPAF

The information presented in these required supplementary schedules was determined as part of the audit of

the State of New Jersey Division of Pension and Benefits. Additional information for the pension schedules

can be found in the notes to the financial statements.

52

OTHER SUPPLEMENTARY INFORMATION

SCHOOL BASED BUDGET SCHEDULES

N/A

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53

EXHIBIT E-2

Budgeted Actual Variance

Expenditures:

Instruction:

Salaries - Teachers 273,059.$ 273,059.$ 0.$

Other Salaries for Instruction 78,767. 78,767. 0.

Supplies 0. 0. 0.

Total Instruction 351,826. 351,826. 0.

Support Services:

Salaries - Principal/Assistant 0. 0. 0.

Salaries - Other Professional 0. 0. 0.

Salaries - Secretarial/Clerical 0. 0. 0.

Other Salaries 0. 0. 0.

Personal Services - Employee Benefits 171,250. 171,250. 0.

Contracted Services 0. 0. 0.

Supplies 0. 0. 0.

Total Support Services 171,250. 171,250. 0.

Total Expenditures 523,076.$ 523,076.$ 0.$

Total revised 2015-2016 Pre-School Education Aid Allocation 222,600.$

Add: Actual Preschool Education Aid carryover (June 30, 2015) 0.

Add: Budgeted Transfer from General Fund 2015-2016 300,476.

Total Pre-School Education Aid Funds Available for 2015-2016 Budget 523,076.

Less: 2015-2016 Budgeted Pre-School Education Aid Including Prior Year Budget Carryover 523,076.

Available and Unbudgeted Pre-School Education Aid Funds as of June 30, 2016 0.

Add: June 30, 2016 Unexpended Pre-School Education Aid 0.

2015-2016 Carryover - Pre-School Education Aid/Pre-School 0.$

2015-2016 Pre-School Education Aid Carryover Budgeted for Pre-School Programs 2016-2017 0.$

BUDGETARY BASIS


Total


SPECIAL REVENUE FUND

SCHEDULE OF PRE-SCHOOL EDUCATION PROGRAM

54

CAPITAL PROJECTS FUND

EX

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Expenditure

s

55

EXHIBIT F-2



SUMMARY SCHEDULE OF REVENUES, EXPENDITURES AND


Revenues and other financing sources:

State sources - SCC Grant 0.$

Bond proceeds 0.

Transfer from capital reserve 0.

Interest 37.

Total revenues 37.

Expenditures and Other Financing Uses:

Purchased professional and technical services 0.

Construction services 119,497.

Other 0.

Total expenditures 119,497.

Other financing uses:

Interest transfer to Debt Service Fund 37.

Excess (deficiency) or revenues over (under)

expenditures (119,497.)

Fund balance-beginning 171,509.$

Fund balance-ending 52,012.$

56

EXHIBIT F-2a



SCHEDULE OF PROJECT REVENUES, EXPENDITURES, PROJECT BALANCE


WOODRUFF ELEMENTARY SCHOOL ELECTRICAL, COMMUNICATIONS,SAFETY PROJECT

FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2016

Revised

Authorized

Prior Periods Current Year Totals Cost


State sources - SCC Grant 23,565.$ 0.$ 23,565.$ 23,565.$

Bond proceeds 0. 0. 0. 0.

Transfer from capital reserve 23,527. 0. 23,527. 23,527.

Total revenues 47,092. 0. 47,092. 47,092.


Purchased professional and technical services 0. 0. 0. 5,969.

Construction services 36,477. 0. 36,477. 41,123.

Total expenditures 36,477. 0. 36,477. 47,092.


expenditures 10,615.$ 0.$ 10,615.$ 0.$

Additional project information:

DOE Project Number 5300-070-14-1002

SDA Project Number 5300-070-14-G3FJ

Grant Date 07/17/14

Grant Date 23,565.$

Bond Authorization Date N/A

Bonds Authorized N/A

Bonds Issued N/A

Original Authorized Cost 47,092.$

Additional Authorized Cost 0.$

Revised Authorized Cost 47,092.$

Percentage Increase Over Original Authorized Cost 0.00%

Percentage Completion 77.46%

57

EXHIBIT F-2b

UPPER DEERFIELD TOWNSHIPL SCHOOL DISTRICT




ELIZABETH F MOORE ELEMENTARY SCHOOL PROJECT-EXTERIOR CLOSURE, COMMUNICATIONS,SAFETY


Revised

Authorized






Total revenues 185,052. 0. 185,052. 185,052.


Purchased professional and technical services 10,760. 0. 10,760. 21,980.

Construction services 27,914. 119,497. 147,411. 163,072.

Other 927. 0. 927. 0.

Total expenditures 39,601. 119,497. 159,098. 185,052.


expenditures 145,451.$ (119,497.)$ 25,954.$ 0.$



SDA Project Number 5300-060-14-G3FI

Grant Date 07/17/14

Grant Amount 92,601.$



Bonds Issued N/A






58

EXHIBIT F-2c





CF SEABROOK ELEMENTARY SCHOOL-ELECTRICAL, COMMUNICATIONS,SAFETY PROJECT


Revised

Authorized






Total revenues 63,277. 0. 63,277. 63,277.

0.


Construction services 47,834. 0. 47,834. 56,064.

Other 0. 0. 0. 7,213.

Total expenditures 47,834. 0. 47,834. 63,277.


expenditures 15,443.$ 0.$ 15,443.$ 0.$



SDA Project Number 5300-070-14-G3Fh

Grant Date 07/17/14

Grant Date 31,664.$



Bonds Issued N/A






59

PROPRIETARY FUNDS

ENTERPRISE FUND

EXHIBIT G-1

Community

Food Service Education and

Fund Recreation Fund Total

ASSETS:

Current Assets:

Cash and cash equivalents 110,754.$ 102,078.$ 212,832.$

Accounts receivable:

State 165. 0. 165.

Federal 11,590. 0. 11,590.

Other 33,124. 11. 33,135.

Inventories 10,861. 0. 10,861.

Total current assets 166,494. 102,089. 268,583.

Fixed assets:

Equipment 219,216. 2,810. 222,026.

Accumulated depreciation (138,451.) (2,810.) (141,261.)

Total fixed assets 80,765. 0. 80,765.

Total assets 247,259.$ 102,089.$ 349,348.$

DEFERRED OUTFLOW OF RESOURCES:

LIABILITIES:


Interfund payable 2,566.$ 0.$ 2,566.$

Accounts payable 25,553. 0. 25,553.

Total current liabilities 28,119. 0. 28,119.

DEFERRED INFLOW OF RESOURCES:

NET POSITION:

Invested in capital assets net of

related debt 80,765. 0. 80,765.

Unrestricted 138,375. 102,089. 240,464.

Total net position 219,140.$ 102,089.$ 321,229.$


ENTERPRISE FUNDS

COMBINING STATEMENT OF NET POSITION

AS OF JUNE 30, 2016

60

EXHIBIT G-2

Community


Fund Recreation Fund Totals

OPERATING REVENUES:

Local sources:

Daily sales-reimbursable programs 70,596.$ 0.$ 70,596.$

Daily sales non-reimbursable programs 40,557. 0. 40,557.

Child care fees 0. 97,390. 97,390.

Miscellaneous Income 76. 0. 76.

Charges for service 115,049. 0. 115,049.

Total local sources 226,278. 97,390. 323,668.

Total operating revenues 226,278. 97,390. 323,668.

OPERATING EXPENSES:

Cost of sales - reimbursable 181,366. 0. 181,366.

Cost of sales - nonreimbursable 50,402. 0. 50,402.

Salaries 188,726. 52,062. 240,788.

Payroll taxes and fringe benefits 32,984. 3,983. 36,967.

Supplies 21,099. 8,233. 29,332.

Insurance 7,270. 0. 7,270.

Office expense 1,247. 250. 1,497.

Management fees 48,000. 0. 48,000.

Depreciation 12,013. 0. 12,013.

Miscellaneous 8,761. 0. 8,761.

Repair and maintenance 9,077. 0. 9,077.

Total operating expenses 560,945. 64,528. 625,473.

Operating income/(loss) (334,667.) 32,862. (301,805.)

Nonoperating revenues (expenses):

State sources:

State school lunch program 5,263. 0. 5,263.

Federal sources:

National school breakfast program 82,065. 0. 82,065.

National school lunch program 241,503. 0. 241,503.

Food distribution program 40,384. 0. 40,384.

Interest revenue 115. 136. 251.

Total nonoperation revenues 369,330. 136. 369,466.

Change in net position 34,663. 32,998. 67,661.

Net position - July 1 184,477. 69,091. 253,568.

Net position - June 30 219,140.$ 102,089.$ 321,229.$


COMBINING STATEMENT OF REVENUES, EXPENSES,

AND CHANGES IN FUND NET POSITION


61

EXHIBIT G-3

Community


Fund Recreation Fund Totals

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customer 111,221.$ 97,379.$ 208,600.$

Payment to employees 0. (56,045.) (56,045.)

Cash payments to suppliers (510,168.) (8,483.) (518,651.)

Other receipts (payment) 112,323. 0. 112,323.

Net cash provided (used) by operating

activities (286,624.) 32,851. (253,773.)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

State sources 5,286. 0. 5,286.

Federal sources 326,577. 0. 326,577.

Net cash provided by non-capital financing activities 331,863. 0. 331,863.

CASH FLOW FROM FINANCING ACTIVITIES

Purchase of equipment (3,843.) 0. (3,843.)

Interest on investments 115. 136. 251.

Net cash provided by investing activities (3,728.) 136. (3,592.)

Net increase/(decrease) in cash and cash equilvalents 41,511. 32,987. 74,498.

Cash and cash equivalents - July 1 69,243. 69,091. 138,334.

Cash and cash equivalents - June 30 110,754.$ 102,078.$ 212,832.$

Reconciliation of operating income/(loss) to

net cash provided/(used) by operating activities:

Operating income/(loss) (334,667.) 32,862. (301,805.)

Adjustments to reconcile operating loss to

cash provided (used) by operating activities:

Depreciation 12,013. 0. 12,013.

Federal commodities 40,384. 0. 40,384.

Change in assets and liabilities:

(Increase)/decrease in accounts receivable (2,801.) (11.) (2,812.)

(Increase)/decrease in inventory 2,956. 0. 2,956.

Increase/(decrease) in accounts payable (4,577.) 0. (4,577.)

Increase/(decrease) in interfund payable 68. 0. 68.

Net cash provided by (used) by operating activities (286,624.)$ 32,851.$ (253,773.)$


ENTERPRISE FUNDS

COMBINING STATEMENT OF CASH FLOWS


62

INTERNAL SERVICE FUND

EXHIBIT G-4

Joint Pupil

Transportation Internal

Service Fund Total

ASSETS:

Current assets:

Cash and cash equivalents 177,780.$ 177,780.$

Accounts receivable 30,165. 30,165.

Interfund receivable 0. 0.

Total current assets 207,945. 207,945.

Fixed assets

Equipment 2,572. 2,572.

Accumulated depreciation (2,572.) (2,572.)

Total fixed assets 0. 0.

Total assets 207,945.$ 207,945.$

DEFERRED OUTFLOW OF RESOURCES: 54,872.$ 54,872.$

LIABILITIES:


Accounts payable 198,794.$ 198,794.$

Interfund payable 685. 685.

Pension account payable 7,799. 7,799.$

Total current liabilities 207,278. 207,278.

Noncurrent liabilities:

Net pension liability 203,245. 203,245.$

Total liabilities 410,523. 410,523.

DEFERRED INFLOW OF RESOURCES: 7,683. 7,683.$

NET POSITION:

Unrestricted (155,389.) (155,389.)

Total net position (155,389.)$ (155,389.)$


INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITON

AS OF JUNE 30, 2016

63

EXHIBIT G-5

Joint Pupil


Service Fund Total

OPERATING REVENUES:

Charges for services 2,092,878.$ 2,092,878.$

Total operating revenues 2,092,878. 2,092,878.

OPERATING EXPENSES:

Transportation costs 1,987,947. 1,987,947.

Salaries 69,973. 69,973.

Payroll taxes and fringe benefits 22,733. 22,733.

Pension expense 6,242. 6,242.

Office expense 2,255. 2,255.

Miscellaneous 4,789. 4,789.

Total operating expenses 2,093,939. 2,093,939.

Operating income/(loss) (1,061.) (1,061.)

Nonoperating revenue:

Interest revenue 216. 216.

Total nonoperating revenues 216. 216.

Change in net position (845.) (845.)

NET POSITION - JULY 1 (154,544.) (154,544.)

NET POSTION - JUNE 30 (155,389.)$ (155,389.)$


COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES

IN FUND NET POSITION



64

EXHIBIT G-6

Joint Pupil


Service Fund Total

CASH FLOW FROM OPERATING ACTIVITIES:

Receipts from customers and users 2,092,681.$ 2,092,681.$

Payments to employees (69,973.) (69,973.)

Payments to employees' benefits (22,732.) (22,732.)

Payment to suppliers (1,995,908.) (1,995,908.)

Net cash provided (used) by operating activities 4,068. 4,068.

CASH FLOWS FOR INVESTING ACTIVITIES:

Interest on investments 216. 216.

Net cash provided (used) by financing activities 216. 216.

Net increase/decrease in cash and cash equivalents 4,284. 4,284.

Cash and cash equivalents - July 1 173,496. 173,496.

Cash and cash equivalents - June 30 177,780.$ 177,780.$

Reconciliation of operating income/(loss) to net cash provided/

(used) by operating activities:

Operating income (loss) (1,061.)$ (1,061.)$

Adjustments to reconcile operating income to net cash

provided by operating activities:

(Increase)/decrease in accounts receivable (197.) (197.)

Increase/(decrease) in accounts payables (916.) (916.)

Increase/(decrease) in pension accounts payables 31. 31.

(Increase)/decrease in deferred inflow (35,437.) (35,437.)

Increase/(decrease) in deferred outflow (7,021.) (7,021.)

Increase/(decrease) in net pension liability 48,669. 48,669.

Net cash provided (used in) operating activities 4,068.$ 4,068.$




COMBINING STATEMENT OF CASH FLOWS

65

FIDUCIARY FUND

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66

EXHIBIT H-2


Compensation Will Expendable

Trust Trust Fund Total

ADDITIONS:

Contributions:

Plan Member 25,766.$ 0.$ 25,766.$

Other 88,581. 88,581.

Total Contributions 25,766. 88,581. 114,347.

Investment Earnings:

Interest 218. 1,501. 1,719.

Net Investment Earnings 218. 1,501. 1,719.

Total Additions 25,984. 90,082. 116,066.

DEDUCTIONS:

Unemployment Claims 1,480. 0. 1,480.

Other Expenses 10,309. 111,200. 121,509.

Total Deductions 11,789. 111,200. 122,989.

Change in Net Position 14,195. (21,118.) (6,923.)

NET POSITION, JULY 1 140,775. 1,048,361. 1,189,136.

NET POSITION, JUNE 30 154,970.$ 1,027,243.$ 1,182,213.$



COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUND

67

EXHIBIT H-3

Cash Cash

Balance Cash Cash Balance

July 1, 2015 Receipts Disbursements June 30,2016

Elementary Schools 33,236.$ 125,782.$ 118,263.$ 40,755.$

Total 33,236.$ 125,782.$ 118,263.$ 40,755.$



STUDENT ACTIVITY AGENCY FUND SCHEDULE

OF RECEIPTS AND DISBURSEMENTS

FIDUCIARY FUND

68

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22

38

0,0

00

.

3.9

20

%

2,7

80

,00

0.

$

0

.$

4

10

,00

0.

$

2,3

70

,00

0.

$

Re

tire

d

Ba

lan

ce

Ju

ne

30

, 2

01

6

UP

PE

R D

EE

RF

IEL

D T

OW

NS

HIP

BO

AR

D O

F E

DU

CA

TIO

N

DE

BT

SE

RV

ICE

FU

ND

SC

HE

DU

LE

OF

SE

RIA

L B

ON

DS

JU

NE

30

, 2

01

6

Date

of

Issu

e

Am

ou

nt

of

Issu

e

An

nu

al M

atu

ritie

s

Inte

rest

Rate

Ba

lan

ce

Ju

ne

30

, 2

01

5Is

su

ed

70

EXHIBIT I-3

Original

Budget

Budget

Transfer

Final

Budget Actual

Variance

Final to

Actual

REVENUES:

Local Sources:

Local tax levy 517,952.$ 0.$ 517,952.$ 517,952.$ 0.$

State Sources:

Debt Service Aid - Type II 0. 0. 0. 0. 0.

Total Revenues 517,952. 0. 517,952. 517,952. 0.

EXPENDITURES:

Regular Debt Service:

Interest 108,976. 0. 108,976. 108,976. 0.

Redemption of Principal 410,000. 0. 410,000. 410,000. 0.

Total Regular Debt Service 518,976. 0. 518,976. 518,976. 0.

Total Expenditures 518,976. 0. 518,976. 518,976. 0.

Excess (deficiency) of revenues

(over)/under expenditures (1,024.) 0. (1,024.) (1,024.) 0.

Other Financing Sources

Transfers from Capital Project Fund 0. 0. 0. 37. 37.

Fund Balance, July 1 1,657. 0. 1,657. 1,657. 0.

Fund Balance, June 30 633.$ 0.$ 633.$ 670.$ 37.$

UPPER DEERFIELD TOWNSHIP BOARD OF EDUCATION

DEBT SERVICE FUND

BUDGETARY COMPARISON SCHEDULE


71

STATISTICAL SECTION

FINANCIAL TRENDS

EX

HIB

IT J

-1

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Govern

menta

l activitie

s

Investe

d in c

apital assets

, net of re

late

d d

ebt

10,0

99,2

45.

$

9,9

76,8

56.

$

10,1

22,4

96.

$

11,6

91,9

00.

$

12,6

45,9

03.

$

12,3

36,5

73.

$

12,2

54,9

81.

$

12,0

79,0

35.

$

12,1

12,9

37.

$

12,3

45,0

98.

$

Re

str

icte

d1,5

50,8

26.

2,4

86,8

77.

2,6

46,4

18.

1,7

04,2

22.

1,2

78,0

28.

1,3

14,6

58.

1,5

39,2

20.

1,8

86,4

04.

2,4

19,6

87.

2,7

16,0

62.

Un

restr

icte

d(6

5,1

60.)

(229,6

02.)

(530,0

06.)

(541,2

93.)

(518,5

48.)

(363,1

57.)

(537,7

89.)

(648,8

88.)

(5,0

93,1

64.)

1,3

08.

Tota

l govern

menta

l activitie

s n

et positio

n11,5

84,9

11.

$

12,2

34,1

31.

$

12,2

38,9

08.

$

12,8

54,8

29.

$

13,4

05,3

83.

$

13,2

88,0

74.

$

13,2

56,4

12.

$

13,3

16,5

51.

$

9,4

39,4

60.

$

15,0

62,4

68.

$

Busin

ess-t

ype a

ctivitie

s

Investe

d in c

apital assets

, net of re

late

d d

ebt

13,7

16.

$

18,7

79.

$

14,1

86.

$

14,9

72.

$

26,1

26.

$

98,4

60.

$

92,0

94.

$

81,1

65.

$

88,9

36.

$

80,7

65.

$

Un

restr

icte

d157,6

77.

146,6

49.

141,8

37.

168,4

42.

104,7

30.

39,4

67.

62,3

28.

125,2

25.

164,6

32.

240,4

64.

Tota

l busin

ess-t

ype a

ctivitie

s n

et positio

n171,3

93.

$

165,4

28.

$

156,0

23.

$

183,4

14.

$

130,8

56.

$

137,9

27.

$

154,4

22.

$

206,3

90.

$

253,5

68.

$

321,2

29.

$

Dis

tric

t-w

ide

Investe

d in c

apital assets

, net of re

late

d d

ebt

10,1

12,9

61.

$

9,9

95,6

35.

$

10,1

36,6

82.

$

11,7

06,8

72.

$

12,6

72,0

29.

$

12,4

35,0

33.

$

12,3

47,0

75.

$

12,1

60,2

00.

$

12,2

01,8

73.

$

12,4

25,8

63.

$

Re

str

icte

d1,5

50,8

26.

2,4

86,8

77.

2,6

46,4

18.

1,7

04,2

22.

1,2

78,0

28.

1,3

14,6

58.

1,5

39,2

20.

1,8

86,4

04.

2,4

19,6

87.

2,7

16,0

62.

Un

restr

icte

d92,5

17.

(82,9

53.)

(388,1

69.)

(372,8

51.)

(413,8

18.)

(323,6

90.)

(475,4

61.)

(523,6

63.)

(4,9

28,5

32.)

241,7

72.

Tota

l dis

tric

t net positio

n11,7

56,3

04.

$

12,3

99,5

59.

$

12,3

94,9

31.

$

13,0

38,2

43.

$

13,5

36,2

39.

$

13,4

26,0

01.

$

13,4

10,8

34.

$

13,5

22,9

41.

$

9,6

93,0

28.

$

15,3

83,6

97.

$

Fis

ca

l Y

ear

Endin

g J

une 3

0,

(Accru

al B

asis

of A

ccounting)

LA

ST

TE

N F

ISC

AL Y

EA

RS

NE

T P

OS

ITIO

N B

Y C

OM

PO

NE

NT

UP

PE

R D

EE

RF

IELD

TO

WN

SH

IP S

CH

OO

L D

IST

RIC

T

72

EX

HIB

IT J

-2

Page 1

of 2

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Expenses

Govern

menta

l activitie

s

Instr

uction

Re

gula

r4,5

44,9

35.

$

4,8

84,2

88.

$

4,7

94,9

18.

$

5,1

29,8

76.

$

4,6

69,4

08.

$

3,8

37,3

22.

$

3,7

52,6

39.

$

3,7

75,6

53.

$

4,0

13,4

64.

$

4,2

22,2

25.

$

Specia

l education

1,0

65,9

48.

1,0

78,4

17.

1,3

13,5

21.

1,2

97,2

96.

1,3

50,1

51.

2,2

03,2

38.

2,4

44,6

97.

2,4

90,1

51.

2,2

29,4

85.

2,3

54,4

16.

Oth

er

specia

l education

166,5

87.

108,8

12.

112,7

40.

110,4

40.

62,1

84.

141,6

66.

254,0

91.

228,3

49.

178,0

89.

174,0

65.

Oth

er

instr

uction

49,6

74.

52,5

35.

56,9

29.

68,9

46.

73,0

57.

64,6

29.

121,2

06.

128,4

79.

72,7

76.

0.

Adult/c

ontinuin

g e

ducation p

rogra

ms

Support

Serv

ice

s:

Tuitio

n203,6

02.

293,4

82.

316,3

05.

484,7

64.

292,2

83.

120,9

54.

167,6

81.

221,2

28.

134,3

08.

203,9

49.

Stu

dent &

instr

uction r

ela

ted s

erv

ice

s1,1

30,0

13.

1,1

79,9

86.

1,1

73,1

86.

1,2

72,4

12.

1,1

78,6

41.

1,1

31,3

17.

1,2

37,5

49.

1,1

99,8

96.

1,3

27,5

89.

1,6

14,5

74.

Genera

l adm

inis

tration

699,8

41.

708,7

77.

701,8

55.

698,1

65.

713,2

08.

680,8

55.

684,1

16.

688,9

50.

642,8

62.

679,7

67.

School A

dm

inis

trative S

erv

ice

s593,2

71.

607,1

81.

619,6

96.

587,8

64.

693,1

22.

709,5

32.

637,1

11.

720,1

97.

521,9

10.

507,4

46.

Pla

nt O

pera

tions a

nd M

ain

tenance

1,4

40,4

94.

1,4

42,6

34.

1,5

36,7

56.

1,5

08,9

52.

1,4

13,2

56.

1,3

65,4

84.

1,4

31,8

18.

1,4

43,6

99.

1,3

15,4

19.

1,4

74,6

61.

Pupil

transport

ation

482,2

91.

523,2

68.

609,6

72.

715,4

93.

547,5

57.

558,3

00.

585,1

68.

617,5

31.

860,5

10.

775,6

24.

Em

plo

yee B

enefits

3,0

63,6

10.

3,2

09,7

34.

2,9

73,7

45.

2,9

02,1

65.

3,3

41,0

06.

3,3

70,3

80.

3,7

33,2

45.

3,5

80,5

01.

5,2

46,0

53.

6,0

72,7

37.

Inte

rest on long-t

erm

debt

242,4

23.

217,1

16.

204,9

28.

191,0

52.

183,3

41.

163,4

98.

148,6

56.

133,0

43.

118,3

52.

102,2

80.

Tra

nsfe

r to

Chart

er

School

0.

0.

0.

0.

0.

22,9

84.

24,2

93.

10,3

68.

29,1

59.

20,5

49.

Inte

rnal S

erv

ice

Fund

1,6

30,9

09.

1,6

97,3

93.

1,7

27,6

84.

1,7

85,4

07.

1,7

86,1

35.

1,8

09,0

16.

1,8

69,7

29.

2,0

26,0

56.

2,1

00,4

53.

2,0

93,9

39.

Ne

w J

ers

ey

Debt S

erv

ice

Assessm

ent

0.

0.

0.

0.

71,6

32.

46,5

22.

67,8

49.

104,6

18.

104,6

18.

104,6

18.

Am

ort

ization o

f D

ebt Is

suance C

ost

3,9

34.

7,8

67.

7,8

67.

7,8

67.

7,8

67.

7,8

67.

7,8

67.

0.

0.

0.

Tota

l govern

menta

l activitie

s e

xpenses

15,3

17,5

32.

16,0

11,4

90.

16,1

49,8

02.

16,7

60,6

99.

16,3

82,8

48.

16,2

33,5

64.

17,1

67,7

15.

17,3

68,7

19.

18,8

95,0

47.

20,4

00,8

50.

Busin

ess-t

ype a

ctivitie

s:

Food s

erv

ice

484,8

30.

486,3

60.

473,3

46.

470,7

66.

502,4

97.

565,8

69.

546,8

45.

565,4

38.

576,1

15.

560,9

45.

Ch

ild C

are

106,1

64.

110,5

72.

117,5

99.

113,0

26.

97,4

92.

76,6

73.

44,7

02.

51,9

01.

59,9

10.

64,5

28.

Tota

l busin

ess-t

ype a

ctivitie

s e

xpense

590,9

94.

596,9

32.

590,9

45.

583,7

92.

599,9

89.

642,5

42.

591,5

47.

617,3

39.

636,0

25.

625,4

73.

Tota

l dis

tric

t expenses

15,9

08,5

26.

$

16,6

08,4

22.

$

16,7

40,7

47.

$

17,3

44,4

91.

$

16,9

82,8

37.

$

16,8

76,1

06.

$

17,7

59,2

62.

$

17,9

86,0

58.

$

19,5

31,0

72.

$

21,0

26,3

23.

$

Pro

gra

m R

evenues

Govern

menta

l activitie

s:

Ch

arg

es for

serv

ice

s:

Pupil

transport

ation

1,6

36,4

92.

$

1,7

01,7

03.

$

1,7

29,9

42.

$

1,7

64,0

02.

$

1,7

65,9

51.

$

1,7

91,5

89.

$

1,8

65,6

28.

$

2,0

28,9

32.

$

2,1

00,0

70.

$

2,0

92,8

78.

$

Opera

ting g

rants

and c

ontr

ibutions

1,3

27,0

19.

1,4

05,0

88.

851,2

05.

897,7

62.

915,2

65.

1,0

66,7

87.

1,3

31,1

39.

1,1

17,9

60.

2,7

20,7

83.

2,9

10,8

65.

Tota

l govern

menta

l activitie

s p

rogra

m r

evenues

2,9

63,5

11.

3,1

06,7

91.

2,5

81,1

47.

2,6

61,7

64.

2,6

81,2

16.

2,8

58,3

76.

3,1

96,7

67.

3,1

46,8

92.

4,8

20,8

53.

5,0

03,7

43.

Busin

ess-t

ype a

ctivitie

s:

Ch

arg

es for

serv

ice

s

Food s

erv

ice

229,2

02.

206,5

92.

207,7

95.

215,1

43.

199,1

08.

246,0

14.

242,7

93.

233,5

05.

230,1

34.

226,2

78.

Co

mm

unity

education &

recre

ation

97,8

50.

95,7

69.

86,6

85.

75,8

72.

46,5

49.

65,7

98.

49,8

50.

78,8

35.

88,0

54.

97,3

90.

Opera

ting g

rants

and c

ontr

ibutions

253,4

03.

281,5

10.

285,6

80.

319,1

10.

300,6

30.

301,5

97.

314,8

57.

356,5

08.

364,4

97.

369,2

15.

Tota

l busin

ess typ

e a

ctivitie

s p

rogra

m r

evenues

580,4

55.

583,8

71.

580,1

60.

610,1

25.

546,2

87.

613,4

09.

607,5

00.

668,8

48.

682,6

85.

692,8

83.

Tota

l dis

tric

t pro

gra

m r

evenues

3,5

43,9

66.

$

3,6

90,6

62.

$

3,1

61,3

07.

$

3,2

71,8

89.

$

3,2

27,5

03.

$

3,4

71,7

85.

$

3,8

04,2

67.

$

3,8

15,7

40.

$

5,5

03,5

38.

$

5,6

96,6

26.

$

Fis

ca

l Y

ear

Endin

g J

une 3

0,

(Accru

al B

asis

of A

ccounting)

LA

ST

TE

N F

ISC

AL Y

EA

RS

CH

AN

GE

S IN

NE

T P

OS

ITIO

N

UP

PE

R D

EE

RF

IELD

SC

HO

OL D

IST

RIC

T

73

EX

HIB

IT J

-2

Page 2

of 2

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Ne

t (E

xpense)/

Revenue

Govern

menta

l activitie

s(1

2,3

54,0

21.)

$

(12,9

04,6

99.)

$

(13,5

68,6

55.)

$

(14,0

98,9

35.)

$

(13,7

01,6

32.)

$

(13,3

75,1

88.)

$

(13,9

70,9

48.)

$

(14,2

21,8

27.)

$

(14,0

74,1

94.)

$

(15,3

97,1

07.)

$

Busin

ess-t

ype a

ctivitie

s(1

0,5

39.)

(13,0

61.)

(10,7

85.)

26,3

33.

(53,7

02.)

(29,1

33.)

15,9

53.

51,5

09.

46,6

60.

67,4

10.

Tota

l dis

tric

t-w

ide n

et expense

(12,3

64,5

60)

$

(12,9

17,7

60)

$

(13,5

79,4

40)

$

(14,0

72,6

02)

$

(13,7

55,3

34)

$

(13,4

04,3

21)

$

(13,9

54,9

95)

$

(14,1

70,3

18)

$

(14,0

27,5

34)

$

(15,3

29,6

97)

$

Genera

l R

evenues a

nd O

ther

Changes in N

et P

ositio

n

Govern

menta

l activitie

s:

Pro

pert

y ta

xes levie

d for

genera

l purp

oses, net

5,3

03,1

26.

$

5,6

29,2

86.

$

5,8

76,6

34.

$

5,9

68,4

00.

$

5,9

72,6

96.

$

6,1

33,8

50.

$

6,2

61,0

24.

$

6,3

86,2

44.

$

6,5

13,9

69.

$

6,6

44,2

48.

$

Taxes levie

d for

debt serv

ice

474,1

26.

489,0

82.

496,4

64.

505,5

84.

502,7

67.

508,8

90.

510,7

51.

518,7

70.

534,4

83.

517,9

52.

Gra

nts

and c

ontr

ibutions

6,7

38,1

58.

7,1

96,8

28.

7,0

46,6

36.

8,1

23,5

86.

7,5

36,3

37.

7,0

82,9

98.

6,9

74,4

91.

7,2

66,6

92.

7,4

02,6

39.

8,1

68,6

10.

Tuitio

n R

eceiv

ed

100,4

18.

106,7

11.

112,1

74.

36,8

36.

123,6

10.

79,8

99.

133,9

12.

130,1

81.

144,2

84.

79,2

06.

Investm

ent earn

ings

128,3

17.

100,5

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661,3

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27,3

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497,9

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463,0

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178,9

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708,5

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Exhib

it J

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2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Genera

l F

und

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ed

1,5

44,1

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2,4

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Unre

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197,5

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0

.

0.

0

.

Tra

nsfe

rs in

0.

0

.

1,3

85

,76

7.

2,1

24

.

26

2,7

49

.

1,6

24

.

56

4.

8

9,1

26

.

1

48

,22

4.

3

00

,51

3.

Tra

nsfe

rs o

ut

0.

0

.

(1,3

85

,76

7.)

(2

,12

4.)

(2

62

,74

9.)

(1

,62

4.)

(5

64

.)

(1

,02

3.)

(1

48

,22

4.)

(3

00

,51

3.)

To

tal O

the

r F

ina

ncin

g s

ou

rce

s (

use

s)

0.

$

0

.$

50

,00

0.

$

0.

$

0

.$

0.

$

0

.$

(22

,83

9.)

$

0.

$

0

.$

Ne

t C

ha

ng

e in

fu

nd

ba

lan

ce

43

6,9

30

.$

72

8,2

55

.$

(42

,23

6.)

$

(1,0

13

,17

1.)

$

(4

14

,34

4.)

$

2

38

,72

0.

$

7

2,3

08

.$

2

97

,28

3.

$

7

18

,17

3.

$

7

8,0

16

.$

De

bt

se

rvic

e a

s a

pe

rce

nta

ge

of

no

nca

pita

l e

xp

en

ditu

res

3.9

7%

3.6

6%

3.6

9%

3.5

6%

3.6

9%

3.7

4%

3.5

5%

3.5

9%

3.5

7%

3.2

5%

77

Exh

ibit J

-5

Fis

cal Y

ea

r

En

de

d

Ju

ne

30

,T

uitio

n

Inte

rest

on

Inve

stm

en

ts

Ren

t

Refu

nd

of

Prior

Ye

ar's

Exp

en

ditu

res

Te

lep

ho

ne

/

En

erg

y

Reb

ate

s

Mis

c.

To

tal

20

07

10

0,4

18

.$

11

8,0

64

.$

0.

$

0

.$

0.

$

3

2,5

90

.$

2

51

,07

2.

$

20

08

10

6,7

11

.

94

,22

3.

4,0

30

.

6,3

16

.

0.

2

1,1

48

.

2

32

,42

8.

20

09

11

2,1

74

.

22

,43

7.

4,3

47

.

3,8

24

.

0.

9

,84

3.

1

52

,62

5.

20

10

36

,83

6.

12

,65

5.

4,5

95

.

35

,15

3.

22

,67

7.

1,5

33

.

11

3,4

49

.

20

11

12

3,6

10

.

16

,47

4.

5,3

93

.

78

9.

2

6,5

48

.

1

8,8

80

.

1

91

,69

4.

20

12

79

,89

9.

16

,72

4.

6,8

65

.

19

,90

7.

6,7

58

.

9,1

45

.

13

9,2

98

.

20

13

13

3,9

12

.

15

,82

2.

8,9

51

.

14

,55

3.

6,4

96

.

12

,72

2.

19

2,4

56

.

20

15

13

0,1

81

.

8,6

91

.

9,1

18

.

12

,99

6.

17

,61

0.

14

,54

3.

19

3,1

39

.

20

15

14

4,2

84

.

11

,46

1.

12

,83

1.

18

,86

7.

17

,02

1.

41

,18

8.

24

5,6

52

.

20

16

79

,20

6.

4,7

38

.

18

,43

1.

33

,41

7.

14

,36

9.

8,2

71

.

15

8,4

32

.

So

urc

e:

Dis

tric

t re

co

rds

Un

au

dite

d

LA

ST

TE

N F

ISC

AL Y

EA

RS

GE

NE

RA

L F

UN

D -

OT

HE

R L

OC

AL R

EV

EN

UE

BY

SO

UR

CE

UP

PE

R D

EE

RF

IEL

D T

OW

NS

HIP

SC

HO

OL

DIS

TR

ICT

78

REVENUE CAPACITY

EXHIBIT J-6

Year Estimated

Ended Net Assessed Full Cash

Dec. 31 Valuations Valuations

2006 414,074,483. 528,714,356.

2007 421,881,678. 588,207,884.

2008 433,113,262. 728,773,880.

2009 434,564,399. 757,247,096.

2010 419,994,185. 683,593,123.

2011 424,194,653. 696,056,777.

2012 630,201,916. 631,326,018.

2013 628,117,666. 618,417,150.

2014 634,807,543. 630,327,118.

2015 631,661,246. 640,884,881.

Source: Abstract of Ratables, County Board of Taxation

98.56%

101.57%

100.71%


ASSESSED AND ESTIMATED ACTUAL VALUE

LAST TEN YEARS

UNAUDITED

OF TAXABLE PROPERTY

57.39%

61.44%

60.94%

99.82%

59.43%

71.72%

Percentage of Net

Assessed to Estimated

Full Cash Valuations

78.32%

79

EX

HIB

IT J

-7

Fis

cal

Tota

l

Year

Genera

l (F

rom

J-6

)C

um

berland

Upper

Direct and

Ended

Basic

O

blig

ation

Tota

l D

irect

Regio

nal S

chool

Deerf

ield

Cum

berland

Overlappin

g

June 3

0,

Rate

(a)

Debt S

erv

ice (

b)

School T

ax R

ate

Dis

tric

tT

ow

nship

County

Tax R

ate

2006

1.2

56

$

0.1

29

$

1.3

85

0.7

14

$

N/A

1.3

26

$

3.4

25

2007

1.2

97

0.1

13

1.4

10

0.7

46

N/A

1.3

76

3.5

32

2008

1.3

29

0.1

14

1.4

43

0.7

39

N/A

1.6

01

3.7

83

2009

1.3

63

0.1

16

1.4

79

0.7

35

N/A

1.5

66

3.7

80

2010

1.4

19

0.1

23

1.5

42

0.7

07

N/A

1.4

67

3.7

16

2011

1.4

28

0.1

19

1.5

47

0.6

70

N/A

1.5

70

3.7

87

2012

0.9

84

0.0

81

1.0

65

0.4

55

0.0

30

0.9

47

2.4

97

2013

1.0

07

0.0

82

1.0

89

0.4

45

0.0

45

0.9

69

2.5

48

2014

1.0

17

0.0

82

1.0

99

0.4

50

0.0

61

1.0

35

2.6

45

2015

1.0

41

0.0

84

1.1

25

0.5

10

0.0

87

1.1

19

2.8

41

Sourc

e: M

unic

ipal T

ax C

olle

cto

r

Note

: N

JS

A 1

8A

:7F

-5d lim

its the a

mount th

at th

e d

istr

ict can s

ubm

it f

or

a g

enera

l fu

nd tax levy.

T

he levy w

hen a

dded to o

ther

com

ponents

of

the d

istr

ict's

net budget m

ay n

ot exceed the

p

re-b

udget year

net budget by m

ore

than the s

pendin

g g

row

th lim

itation c

alc

ula

ted a

s

f

ollo

ws: th

e p

re-b

udget year

net budget in

cre

ased b

y th

e c

ost of

livin

g o

r 2.5

perc

ent,

w

hic

hever

is g

reate

r, p

lus a

ny

spendin

g g

row

th a

dju

stm

ents

.

a T

he d

istr

ict's

basic

tax r

ate

is c

alc

ula

ted f

rom

the A

4F

form

whic

h is s

ubm

itte

d w

ith the

b

udget and the N

et valu

ation taxable

b R

ate

s f

or

debt serv

ice a

re b

ased o

n e

ach y

ear's r

equirem

ents

Upper

Deerf

ield

Tow

nship

School D

irect R

ate

Overlappin

g R

ate

s

UP

PE

R D

EE

RF

IELD

TO

WN

SH

IP S

CH

OO

L D

IST

RIC

T

DIR

EC

T A

ND

OV

ER

LA

PP

ING

PR

OP

ER

TY

TA

X R

AT

ES

LA

ST

TE

N F

ISC

AL Y

EA

RS

(Rate

per

$100 o

f A

ssessed V

alu

e)

80

EX

HIB

IT J

-8

% o

f T

ota

l%

of

Tota

l

Taxable

Dis

tric

t N

et

Taxable

Dis

tric

t N

et

Assessed

Rank

Assessed

Assessed

Rank

Assessed

Taxpayer

Valu

e(O

ptional)

Valu

eV

alu

e(O

ptional)

Valu

e

Walm

art

TR

S L

LC

13,9

54,9

00.

$

2.2

1%

Cedar-

Carll's

Corn

er

LLC

10,7

55,6

00.

1.7

0%

KM

T P

ropert

ies L

LC

9,3

35,7

00.

1.4

8%

Seabro

ok B

ros. &

Sons

7,1

37,9

00.

1.1

3%

Cle

ment P

apas C

o., Inc.

6,8

64,0

00.

1.0

9%

Upper

Deerf

ield

Sta

tion L

P6,6

29,7

00.

1.0

5%

Founders

Realty

III

6,1

53,4

00.

0.9

7%

Upper

Deerf

ield

Adult L

ivin

g, LLC

4,6

00,0

00.

0.7

3%

Bridgeto

n R

ealty A

ssoc., L

LC

3,6

16,4

00.

0.5

7%

AtlanticC

ity

Ele

ctr

ic C

o.

3,2

03,3

00.

0.5

1%

Tota

l72,2

50,9

00.

$

11.4

4%

0.

$

0.0

0%

Sourc

e: M

unic

ipal T

ax A

ssessor

Seabro

ok H

ousin

g C

orp

.

Info

rmation N

ot A

vaila

ble

2015

2006

UP

PE

R D

EE

RF

IELD

TO

WN

SH

IP S

CH

OO

L D

IST

RIC

T

PR

INC

IPA

L P

RO

PE

RT

Y T

AX

PA

YE

RS

,

CU

RR

EN

T Y

EA

R A

ND

NIN

E Y

EA

RS

AG

O

81

EXHIBIT J-9

Fiscal Taxes Collection

Year Levies For in

Ended and Percentage Subsequent

June 30, Collections Amount of Levy Year

2007 5,777,252.$ 5,777,252.$ 100.00%

2008 5,947,810. 5,947,810. 100.00%

2009 6,373,098. 6,373,098. 100.00%

2010 6,423,541. 6,423,541. 100.00%

2011 6,475,463. 6,475,463. 100.00%

2012 6,642,740. 6,642,740. 100.00%

2013 6,771,775. 6,771,775. 100.00%

2014 6,905,014. 6,905,014. 100.00%

2015 7,048,452. 7,048,452. 100.00%

2016 7,162,200. 7,162,200. 100.00%

Source: District records including the Certificate and Report of School

Taxes (A4F Form)

a School taxes are collected by the Municipal Tax Collector.

Under New Jersey State Statue, a municipal is required to

remit to the school district the entire property tax balance,

in the amount voted upon or certified prior to the end of the

the school year.

Collected Within the Fiscal

Year of the Levy (a)


PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS

82

DEBT CAPACITY

EX

HIB

IT J

-10

Busin

ess-

Fis

cal

Bond

Type

Perc

enta

ge

Year

Genera

l C

ert

ific

ate

sA

nticip

ation

Activitie

sof

Ended

Oblig

ation

of

Capital

Note

sC

apital

Tota

l P

ers

onal

June 3

0,

Bonds (

b)

Part

icip

ation

Leases

(BA

Ns)

Leases

Dis

tric

tIn

com

e (

a)

Per

Capita (

a)

2007

5,6

24,3

57.

$

21,8

93.

$

5,6

46,2

50.

$

2.4

7%

712.

$

2008

5,3

18,5

45.

7,3

31.

5,3

25,8

76

2.2

4%

662.

2009

5,0

06,2

48.

38,7

74.

5,0

45,0

22

1.9

3%

611.

2010

4,6

72,4

43.

25,9

01.

4,6

98,3

44

1.7

7%

565.

2011

4,3

32,0

16.

14,0

41.

4,3

46,0

57

1.6

7%

567.

2012

3,9

69,8

79.

3,9

69,8

79

1.4

7%

518.

2013

3,5

90,9

04.

3,5

90,9

04

1.2

8%

468.

2014

3,1

90,0

00.

3,1

90,0

00

1.1

7%

419.

2015

2,7

80,0

00.

2,7

80,0

00

1.0

3%

365.

2016

2,3

70,0

00.

2,3

70,0

00

N/A

312.

Note

: D

eta

ils r

egard

ing the d

istr

ict's

outs

tandin

g d

ebt can b

e f

ound in the n

ote

s to the f

inancia

l sta

tem

ents

.

aS

ee E

xhib

it N

J J

-14 f

or

pers

onal in

com

e a

nd p

opula

tion d

ata

. T

hese r

atios a

re c

alc

ula

ted u

sin

g

pers

onal in

com

e a

nd p

opula

tion f

or

the p

rior

cale

ndar

year.

bIn

clu

des E

arly

Retire

ment In

centive P

lan (

ER

IP)

refu

ndin

g

Govern

menta

l A

ctivitie

s

UP

PE

R D

EE

RF

IELD

TO

WN

SH

IP S

CH

OO

L D

IST

RIC

T

RA

TIO

S O

F O

UT

ST

AN

DIN

G D

EB

T T

YP

E

LA

ST

TE

N F

ISC

AL Y

EA

RS

83

EX

HIB

IT J

-11

Net

Perc

enta

ge

Fis

cal

Genera

lof

Actu

al

Year

Genera

l B

onded

Taxable

Ended

Oblig

ation

Debt

Valu

e (

a)

of

June 3

0,

Bonds

Deductions

Outs

tandin

gP

ropert

yP

er

Capita (

b)

2007

5,6

24,3

57

5,6

24,3

57

1.3

6%

699

2008

5,3

18,5

45

5,3

18,5

45

1.2

6%

644

2009

5,0

06,2

48

5,0

06,2

48

1.1

6%

602

2010

4,6

72,4

43

4,6

72,4

43

1.0

8%

609

2011

4,3

32,0

16

4,3

32,0

16

1.0

3%

565

2012

3,9

69,8

79

3,9

69,8

79

0.9

4%

518

2013

3,5

90,9

04

3,5

90,9

04

0.5

7%

471

2014

3,1

90,0

00

3,1

90,0

00

0.5

1%

419

2015

2,7

80,0

00

2,7

80,0

00

0.4

4%

366

2016

2,3

70,0

00

2,3

70,0

00

N/A

N/A

Note

s:

Deta

ils r

egard

ing the d

istr

ict's o

uts

tandin

g d

ebt can b

e f

ound in the n

ote

s

to the f

inancia

l sta

tem

ents

.

aS

ee E

xhib

it N

J J

-6 f

or

pro

pert

y tax d

ata

.

bP

opula

tion d

ata

can b

e f

oung in E

xhib

it N

J J

-14

Genera

l B

onded D

ebt O

uts

tandin

g

UP

PE

R D

EE

RF

IELD

TO

WN

SH

IP S

CH

OO

L D

IST

RIC

T

RA

TIO

S O

F N

ET

GE

NE

RA

L B

ON

DE

D D

EB

T O

UT

ST

AN

DIN

G

LA

ST

TE

N F

ISC

AL Y

EA

RS

84

EX

HIB

IT J

-12

Estim

ate

d

Estim

ate

d S

ha

re

De

bt

Pe

rce

nta

ge

of

Ove

rla

pp

ing

Go

ve

rnm

en

tal U

nit

Ou

tsta

nd

ing

Ap

plic

ab

le (

a)

De

bt

De

bt R

ep

aid

With

Pro

pe

rty T

axe

s:

U

pp

er

De

erf

ield

To

wn

sh

ip1

,20

5,2

50

.$

10

0.0

00

%1

,20

5,2

50

.$

C

ou

nty

of

Cu

mb

erl

an

d -

To

wn

sh

ip's

Sh

are

86

,58

1,1

51

.

7.3

75

%6

,38

5,3

60

.

Oth

er

De

bt

C

um

be

rla

nd

Re

gio

na

l S

ch

oo

l D

istr

ict -

To

wn

sh

ip's

Sh

are

3,2

20

,94

2.

10

0.0

00

%3

,22

0,9

42

.

Su

bto

tal, O

ve

rla

pp

ing

De

bt

10

,81

1,5

52

.

Up

pe

r D

ee

rfie

ld T

ow

nsh

ip S

ch

oo

l D

istr

ict D

ire

ct D

eb

t2

,37

0,0

00

.

To

tal D

ire

ct &

Ove

rla

pp

ing

De

bt

13

,18

1,5

52

.$

So

urc

es:

Asse

sse

d v

alu

e d

ata

use

d to

estim

ate

ap

plic

ab

le p

erc

en

tag

es p

rovid

ed

by C

ou

nty

Bo

ard

of

Ta

xa

tio

n.

De

bt o

uts

tan

din

g d

ata

pro

vid

ed

by e

ach

go

ve

rnm

en

t u

nit.

No

te:

Ove

rla

pp

ing

go

ve

rnm

en

ts a

re th

ose

th

at co

nin

cid

e, a

t le

ast in

pa

rt, w

ith

th

e g

eo

gra

ph

ic b

ou

nd

ari

es o

f th

e

Dis

tric

t. T

his

sch

ed

ule

estim

ate

s th

e p

ort

ion

of

the

ou

tsta

nd

ing

de

bt o

f th

ose

ove

rla

pp

ing

go

ve

rnm

en

ts th

at

is b

orn

e b

y th

e r

esid

en

ts a

nd

bu

sin

esse

s o

f U

pp

er

De

erf

ield

To

wn

sh

ip. T

his

pro

ce

ss r

eco

gn

ize

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at w

he

n

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e D

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ility

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ntire

de

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en

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r, th

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oe

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ply

th

at e

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ry ta

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le f

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id w

ith

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rty ta

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e o

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lica

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stim

ate

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sse

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ert

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ble

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rce

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ge

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ate

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rmin

ing

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ort

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of

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oth

er

go

ve

rnm

en

tal u

nit's

ta

xa

ble

va

lue

th

at is

with

in th

e d

istr

ict's

bo

un

da

rie

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div

idin

g it b

y e

ach

un

it's

to

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lue

.

UP

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ICT

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OF

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30

, 2

01

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85

Exh

ibit J

-13

20

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bt L

imit

15

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.$

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.$

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.$

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et D

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t A

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to

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it5

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of A

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e E

qu

aliz

atio

n V

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e)

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e: E

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n b

ase

s w

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tain

ed

fro

m th

e A

nn

ua

l R

ep

ort

of th

e S

tate

of N

ew

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rse

y, D

ep

art

me

nt o

f T

rea

su

ry, D

ivis

ion

of T

axa

tio

n

(a)

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it s

et b

y N

JS

A 1

8A

:24

-19

fo

r a

K th

rou

gh

12

dis

tric

t; o

the

r %

lim

its w

ou

ld b

e a

pp

lica

ble

fo

r o

the

r d

istr

ict ty

pe

s.

FIS

CA

L Y

EA

R

UP

PE

R D

EE

RF

IEL

D T

OW

NS

HIP

SC

HO

OL

DIS

TR

ICT

LE

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L D

EB

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GIN

IN

FO

RM

AT

ION

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ST

TE

N F

ISC

AL

YE

AR

S

86

DEMOGRAPHIC AND ECONOMIC

INFORMATION

EXHIBIT J-14

Per Capita

Personal Personal Unemployment

Year Population (a) Income (b) Income ( c ) Rate (d)

2006 7,934 228,768,956.$ 28,834.$ 5.10%

2007 8,045 238,123,955. 29,599. 4.60%

2008 8,259 261,983,739. 31,721. 5.60%

2009 8,317 265,121,009. 31,877. 9.70%

2010 7,668 259,998,876. 33,907. 10.40%

2011 7,668 270,465,696. 35,272. 12.00%

2012 7,668 280,273,068. 36,551. 13.50%

2013 7,619 272,950,675. 35,825. 7.40%

2014 7,618 270,195,224. 35,468. 7.50%

2015 7,586 N/A N/A 6.20%

Source:

a Population information provided by the NJ Dept of Labor and

Workforce Development

b Personal income has been estimated based upon the municipal

population and per capita personal income presented

c Per capita personal income by county estimated based upon

the 2000 Census published by the US Bureau of Economic Analysis

d Unemployment data provided by the N.J. Dept. of Labor and

Workforce Development


DEMOGRAPHIC AND ECONOMIC STATISTICS


87

EX

HIB

IT J

-15

% o

f T

ota

l

Perc

enta

ge o

f P

erc

enta

ge o

f

Tota

l M

unic

ipal

Tota

l M

unic

ipal

Em

plo

yer

Em

plo

yees

Rank

Em

plo

ym

ent

Em

plo

yees

Rank

Em

plo

ym

ent

00

.00

%

Sourc

e: T

op E

mplo

yeer

of

Cum

berl

and C

ounty

Info

rmation N

ot

Availa

ble

20

15

20

06

UP

PE

R D

EE

RF

IELD

TO

WN

SH

IP S

CH

OO

L D

IST

RIC

T

PR

INC

IPA

L E

MP

LO

YE

RS

CU

RR

EN

T Y

EA

R A

ND

NIN

E Y

EA

RS

AG

O

88

OPERATING INFORMATION

EX

HIB

IT J

-16

Function/P

rogra

m2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Instr

uction:

Regula

r81

83

83

80

79

79

76

76

76

76

Specia

l E

ducation

14

14

14

24

24

24

27

26

27

27

Oth

er

Specia

l E

ducation

12

12

12

51

11

11

1

Support

Serv

ices:

Stu

dent

& I

nstr

uction R

ela

ted S

erv

ices

18

18

19

17

15

15

15

15

15

15

Genera

l A

dm

inis

trative S

erv

ices

44

42

22

22

22

School A

dm

inis

trative S

erv

ices

33

36

55

55

55

Oth

er

Adm

inis

trative S

erv

ices

33

30

00

00

00

Centr

al S

erv

ices

00

03

33

33

33

Adm

inis

trative I

nfo

rmation T

echnolo

gy

00

01

11

11

11

Pla

nt

Opera

tions &

Main

tenance

15

15

15

14

12

12

12

12

12

12

Pupil

Tra

nsport

ation

00

00

00

00

00

Oth

er

support

serv

ices

22

22

22

22

22

Tota

l152

154

155

154

144

144

144

143

144

144

Sourc

e:

Dis

tric

t P

ers

onnel R

ecord

s

UP

PE

R D

EE

RF

IELD

TO

WN

SH

IP S

CH

OO

L D

IST

RIC

T

FU

LL-T

IME

EQ

UIV

ALE

NT

DIS

TR

ICT

EM

PLO

YE

ES

BY

FU

NC

TIO

N/P

RO

GR

AM

LA

ST

TE

N F

ISC

AL Y

EA

RS

89

EX

HIB

IT J

-17

Avera

ge

Avera

ge

% C

hange In

Daily

Daily

Avera

ge

Stu

dent

Fis

cal

Opera

ting

Cost

Perc

enta

ge

Teachin

gM

iddle

Enro

llment

Attendance

Daily

Attendance

Year

Enro

llment

Expenditure

s (

a)

Per

Pupil

Change

Sta

ff (

b)

Ele

menta

ryS

chool

(AD

E)

(c)

(AD

A)

(c)

Enro

llment

Perc

enta

ge

2007

833

$12,9

70,6

32.

$15,5

71.

2.7

2%

90

8:9

9:6

912

861

2.7

0%

94.4

1%

2008

889

13,6

67,7

91.

15,3

74.

(1.2

6)%

92

10:1

8:7

893

843

(2.0

8)%

94.4

0%

2009

874

13,6

54,4

54.

15,6

23.

1.6

2%

92

10:4

8:7

888

840

(0.5

6)%

94.5

9%

2010

935

14,4

17,7

08.

15,4

20.

(1.3

0)%

94

9:5

8:6

931

877

4.8

4%

94.2

0%

2011

891

13,8

41,6

23.

15,5

35.

0.7

5%

87

10:3

10:1

898

852

(3.5

4)%

94.8

8%

2012

859

13,6

70,7

93.

15,9

15.

2.4

5%

87

10:3

10:1

856

817

(4.6

8)%

95.4

4%

2013

897

14,5

15,8

91.

16,1

83.

1.6

8%

88

10:3

10:1

898

850

4.9

1%

94.6

5%

2014

906

14,5

15,6

93.

16,0

22.

(0.9

9)%

87

10:3

10:1

906

862

0.8

9%

95.1

4%

2015

906

14,4

34,2

34.

15,9

32.

(0.5

6)%

88

10:3

10:1

914

868

0.8

8%

94.9

7%

2016

906

15,4

56,3

09.

17,0

60.

7.0

8%

87

10:3

10:1

906

859

(0.8

8)%

94.8

1%

Sourc

es:

Dis

tric

t re

cord

s

Note

:E

nro

llment based o

n a

nnual O

cto

ber

dis

tric

t count.

aO

pera

ting e

xpenditure

s e

qual to

tal expenditure

s less d

ebt serv

ice a

nd c

apital outlay.

bT

eachin

g s

taff

inclu

des o

nly

full-

tim

e e

quiv

ale

nts

of

cert

ific

ate

d s

taff

.

cA

vera

ge d

aily

enro

llment and a

vera

ge d

aily

attendance a

re o

bta

ined f

rom

the S

chool R

egis

ter

Sum

mary

(S

RS

).

UP

PE

R D

EE

RF

IELD

TO

WN

SH

IP S

CH

OO

L D

IST

RIC

T

OP

ER

AT

ING

ST

AT

IST

ICS

LA

ST

TE

N F

ISC

AL Y

EA

RS

Pupil/

Teacher

Ratio

90

EX

HIB

IT J

-18

Dis

tric

t B

uild

ing

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

Ele

me

nta

ry:

C.F

. S

ea

bro

ok E

lem

en

tary

Sch

oo

l (1

95

7)

Sq

ua

re F

ee

t 7

0,6

66

70

,66

67

0,6

66

70

,66

67

0,6

66

70

,66

67

0,6

66

70

,66

67

0,6

66

70

,66

6

Ca

pa

city (

Stu

de

nts

)4

37

43

74

37

43

74

37

43

74

37

43

74

37

43

7

En

rollm

en

t4

49

44

94

43

43

84

16

41

24

51

45

24

52

45

2

Eliz

ab

eth

Mo

ore

Ele

me

nta

ry S

ch

oo

l (1

92

3)

Sq

ua

re F

ee

t4

8,8

94

48

,89

44

8,8

94

48

,89

44

8,8

94

48

,89

44

8,8

94

48

,89

44

8,8

94

48

,89

4

Ca

pa

city (

Stu

de

nts

)2

97

29

72

97

29

72

97

29

72

97

29

72

97

29

7

En

rollm

en

t 1

96

19

61

79

19

71

81

16

01

69

17

01

70

17

0

Mid

dle

Sch

oo

l:

Wo

od

ruff

Mid

dle

Sch

oo

l (1

97

5)

Sq

ua

re F

ee

t6

4,0

00

64

,00

06

4,0

00

64

,00

06

4,0

00

64

,00

06

4,0

00

64

,00

06

4,0

00

64

,00

0

Ca

pa

city (

Stu

de

nts

)2

59

25

92

59

25

92

59

25

92

59

25

92

59

25

9

En

rollm

en

t2

74

27

42

78

28

32

93

28

72

84

28

42

84

28

4

Oth

er:

Ce

ntr

al A

dm

inis

tra

tio

n (

19

36

)

Sq

ua

re F

ee

t1

,20

01

,20

01

,20

01

,20

01

,20

01

,20

01

,20

01

,20

01

,20

01

,20

0

Fa

cili

ty B

uild

ing

(2

00

6)

Sq

ua

re F

ee

t5

,00

05

,00

05

,00

05

,00

05

,00

05

,00

05

,00

05

,00

05

,00

05

,00

0

Nu

mb

er

of

Sch

oo

ls a

t Ju

ne

30

, 2

01

6:

Ele

me

nta

ry =

2

Mid

dle

Sch

oo

l =

1

Oth

er

= 2

So

urc

e:

Dis

tric

t F

acili

tie

s O

ffic

e

No

te:

Ye

ar

of

orig

ina

l co

nstr

uctio

n is s

ho

wn

in

pa

ren

the

se

s.

In

cre

ase

s in

sq

ua

re f

oo

tag

e a

nd

ca

pa

city a

re t

he

re

su

lt o

f a

dd

itio

ns.

En

rollm

en

t is

ba

se

d o

n t

he

an

nu

al O

cto

be

r d

istr

ict

co

un

t.

UP

PE

R D

EE

RF

IEL

D T

OW

NS

HIP

SC

HO

OL

DIS

TR

ICT

SC

HO

OL

BU

ILD

ING

IN

FO

RM

AT

ION

LA

ST

TE

N F

ISC

AL

YE

AR

S

91

EXHIBIT J-19


SCHEDULE OF REQUIRED MAINTENANCE


UNDISTRIBUTED EXPENDITURES - REQUIRED

MAINTENANCE FOR SCHOOL FACILITIES

11-000-261-xxx

*School Facilities

Project #(s) Administration Seabrook Moore Woodruff Total

2007 $30,540. $129,146. $61,013. $57,051. $277,750.

2008 33,239. 156,573. 73,893. 56,305. 320,010.

2009 38,756. 139,502. 74,587. 69,711. 322,556.

2010 41,383. 90,749. 48,650. 58,029. 238,811.

2011 26,000. 48,490. 39,637. 36,892. 151,019.

2012 37,343. 77,143. 24,573. 91,197. 230,256.

2013 66,896. 79,260. 59,099. 107,047. 312,302.

2014 5,162. 67,090. 49,027. 136,760. 258,039.

2015 61,894. 22,541. 21,033. 26,625. 132,093.

2016 167,418. 75,553. 72,753. 37,699. 353,423.

.

Total School Facilities $ 508,631. $ 886,047. $ 524,265. $ 677,316. $ 2,596,259.

* School facilities as defined under EFCFA.

(N.J.A.C. 6A:26-1.2 and N.J.A.C. 6A:26A-1.3)

Source: District records

92

EXHIBIT J-20

Page 1 of 2


INSURANCE SCHEDULE

JUNE 30, 2016

UNAUDITED

The Board of Education of the Township of Upper Deerfield is a member of the Gloucester Cumberland Salem

School Districts Joint Insurance Fund (GCSSDJIF)

The GCSSDJIF is a Joint Insurance Fund as defined under the Provisions of NJSA 18A:18B 1-10. The Fund

was formed by its member districts on July 1, 1998 to provide a long-term alternative to the conventional insurance

market as a means of stabilizing the otherwise cyclical nature of insurance expenditures. It achieves this goal

by pooling together member district resources, deciding on what insurance coverage it will offer and/or purchase

and at what retention, and by hiring professionals to run the Fund.

The Fund's underwriting includes workers' compensation, property, general liability, automobile liability, crime,

educator's legal liability, boiler and machinery and pollution legal liability insurances.

The coverages provided to members of the GCSSDJIF for the period of July 1, 2015 to June 30, 2016

are as follows:

2015-2016

I. Property, Inland Marine and Automobile Physical Damages

A. Limits of Liability: $150,000,000. Per Occurrence

1. GCSSDJIF Self Insured Retention $250,000. Per Occurrence

2. Member District Deductible $500. Per Occurrence

3. Perils Included "All Risk"

B. Property Valuation

1. Buildings and Contents Replacement Cost

2. Contractors Equipment Actual Cash Value

3. Automobiles Actual Cash Value

II. Boiler and Machinery

A. Limits of Liability $125,000,000.

1. GCSSDJIF Self Insured Retention None

2. Member District Deductible $1,000.

III. Crime

A. Limits of Liability $500,000.

1. GCSSDJIF Self Insured Retention $250,000.

2. Member District Deductible $500.

IV. Automobile Liability

A. Limits of Liability: $15,000,000.

1. GCSSDJIF Self Insured Retention (SIR) $250,000.

2. Member District Deductible None

V. Workers' Compensation

A. Limits of Liability: Statutory



VI. Educator's Legal Liability




93

EXHIBIT J-20

Page 2 of 2


INSURANCE SCHEDULE

JUNE 30, 2015

UNAUDITED

VII. Pollution Legal Liability




VIII. Cyber Liability:




IX. Cyber Liability:




Excess and Reinsurance Carriers Involved

Property and Crime SPELLJIF, Selective Ins. Co. of America

General Liability and Employee Benefits SPELLJIF, Selective Ins. Co. of America

Workers Compensation SPELLJIF, Selective Ins. Co. of America

Educators Legal Liability SPELLJIF, Selective Ins. Co. of America

Group Purchase of Primary Insurance Coverage Carrier Array

Boiler and Machinery Travelers Insurance Company

Pollution Legal Liabiality AIG/Commerce and Industry Insurance Company

Cyber Liability AIG/Lexington Insurance Company

Violent Malicious Acts Lloyd's of London

Surety Bonds

Board Secretary - Cherie Bratty $ 50,000.

Treasurer - Susan Robostello $ 250,000.

Storage Tank Insurance Zurich Insurance Company


1. Deductible $5,000.

Student Accident Insurance Arthur J. Gallagher


Other Insurance:

Molestation $5,000,000.

Earthquake (Annual Aggregate) $75,000,000.

Flood (Annual Aggregate) $50,000,000.

Underground Property $1,000,000.

Unnamed Locations $10,000,000.

Automatic Builder's Risk $5,000,000.

94

SINGLE AUDIT SECTION

K-1

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





We have audited, 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; and audit requirements as prescribed by the Office of School Finance, Department of

Education, State of New Jersey, the financial statements of the governmental activities, the business-type activities,

each major fund, and the aggregate remaining fund information of the Board of Education of the Upper Deerfield

Township School District in the County of Cumberland, State of New Jersey, as of and for the fiscal year ended June

30, 2016, and the related notes to the financial statements, which collectively comprise Upper Deerfield Township

Board of Education’s basic financial statements, and have issued our report thereon dated November 18, 2016.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Upper Deerfield Township

Board of Education’s internal control over financial reporting (internal control) to determine the audit procedures

that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but

not for the purpose of expressing an opinion on the effectiveness of the Upper Deerfield Township Board of

Education’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Upper Deerfield

Township Board of Education’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or

employees, in the normal course of performing their assigned functions, to prevent, or detect and correct

misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal

control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will

not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a

combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to

merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and

was not designed to identify all deficiencies in internal control that might be material weakness or significant

deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that

we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

95

K-1

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Upper Deerfield Township Board of Education’s

financial statements are free from material misstatement, we performed tests of its compliance with certain

provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and

material effect on the determination of financial statement amounts. However, providing an opinion on compliance

with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The

results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under

Government Auditing Standards and audit requirements as prescribed by the Office of School Finance, Department

of Education, State of New Jersey.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the

results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on

compliance. This report is an integral part of an audit performed in accordance with Government Auditing

Standards, in considering the entity’s internal control and compliance. Accordingly, this communication is not

suitable for any other purpose.


Samuel A. Delp, Jr.


Triantos & Delp


November 18, 2016

96

K-2

REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL

CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF EXPENDITURES OF

FEDERAL AWARDS, AND REPORT ON SCHEDULE OF EXPENDITURES OF STATE

AWARDS, REQUIRED BY UNIFORM GUIDANCE AND NEW JERSEY OMB CIRCULAR 15-08

Independent Auditor’s Report





Report on Compliance for Each Major Federal and State Program

We have audited the Board of Education of the Upper Deerfield Township School District, in the County

of Cumberland, State of New Jersey, compliance with the types of compliance requirements described in

the OMB Compliance Supplement and the New Jersey State Aid/Grant Compliance Supplement that

could have a direct and material effect on each of Upper Deerfield Township Board of Education’s major

federal and state programs for the year ended June 30, 2016. Upper Deerfield Township Board of

Education’s major federal and state programs are identified in the summary of auditor’s results section of

the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts and

grants applicable to each of its federal and state programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of Upper Deerfield Township Board

of Education’s major federal and state programs based on our audit of the types of compliance

requirements referred to above. We conducted our audit of compliance in accordance with auditing

standards generally accepted in the United States of America; the standards applicable to financial audits

contained in Government Auditing Standards, issued by the Comptroller General of the United States;

and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative

Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and the

audit requirements as prescribed by the Office of School Finance, Department of Education, State of

New Jersey; and New Jersey OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal

Grants, State Grants and State Aid. Those standards, the Uniform Guidance and New Jersey OMB’s

Circular 15-08, require that we plan and perform the audit to obtain reasonable assurance about whether

noncompliance with the types of compliance requirements referred to above that could have a direct and

material effect on a major federal or state program occurred. An audit includes examining, on a test

basis, evidence about the Upper Deerfield Township Board of Education’s compliance with those

requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major

federal and state program. However, our audit does not provide a legal determination of the Upper

Deerfield Township Board of Education’s compliance.

97

K-2

Opinion on Each Major Federal and State Program

In our opinion, the Board of Education of the Upper Deerfield Township School District, in the County

of Cumberland, State of New Jersey, complied, in all material respects, with the types of compliance

requirements referred to above that could have a direct and material effect on its major federal and state

programs for the fiscal year ended June 30, 2016.

Other Matters

The results of our auditing procedures disclosed instances on noncompliance, which are required to be

reported in accordance with the Uniform Guidance and which are described in the accompanying

schedule of findings and questioned costs as item 2016-01. Our opinion on each major federal program

is not modified with respect to these matters.

Report on Internal Control Over Compliance

Management of the Upper Deerfield Township Board of Education is responsible for establishing and

maintaining effective internal control over compliance with the types of compliance requirements

referred to above. In planning and performing our audit of compliance, we considered Upper Deerfield

Township Board of Education’s internal control over compliance with the types of requirements that

could have a direct and material effect on each major federal or state program to determine the auditing

procedures that are appropriate in the circumstances for the purpose of expressing an opinion on

compliance for each major federal and state program and to test and report on internal control over

compliance in accordance with Uniform Guidance, and the New Jersey State Aid/Grant Compliance

Supplement, but not for the purpose of expressing an opinion on the effectiveness of internal control over

compliance. Accordingly, we do not express an opinion on the effectiveness of Upper Deerfield

Township Board of Education’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over

compliance does not allow management or employees, in the normal course of performing their assigned

functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a

federal or state program on a timely basis. A material weakness in internal control over compliance is a

deficiency, or combination of deficiencies, in internal control over compliance, such that there is a

reasonable possibility that material noncompliance with a type of compliance requirement of a federal or

state program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency

in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control

over compliance with a type of compliance requirement of a federal or state program that is less severe

than a material weakness in internal control over compliance, yet important enough to merit attention by

those charged with governance.

Our consideration of the internal control over compliance was for the limited purpose described in the

first paragraph of this section and was not designed to identify all deficiencies in internal control over

compliance that might be material weaknesses or significant deficiencies. We did not identify any

deficiencies in internal control over compliance that we consider to be material weaknesses. However,

material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our

testing of internal control over compliance and the results of that testing based on the requirements of

Uniform Guidance and NJ OMB Circular 15-08. Accordingly, this report is not suitable for any other

purpose.

98

K-2

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance and Schedule

of Expenditure of State Awards Required by the New Jersey OMB’s Circular 15-08

We have audited the financial statements of Board of Education of Upper Deerfield Township School

District in the County of Cumberland, State of New Jersey as of and for the year ended June 30, 2016,

and have issued our report thereon dated November 18, 2016, which contained an unmodified opinion on

those financial statements. Our audit was conducted for the purpose of forming an opinion on the

financial statements as the whole. The accompanying schedule of expenditures of federal awards and

schedule of expenditures of state awards, are presented for purposes of additional analysis as required by

the Uniform Guidance and New Jersey OMB’s Circular 15-08 and are not a required part of the financial

statements. Such information is the responsibility of management and was derived from and relates

directly to the underlying accounting and other records used to prepare the financial statements. The

information has been subjected to the auditing procedures applied in the audit of the financial statements

and certain additional procedures, including comparing and reconciling such information directly to the

underlying accounting and other records used to prepare the financial statements or to the financial

statements themselves, and other additional procedures in accordance with auditing standards generally

accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards

and schedule of expenditures of state awards are fairly stated in all material respects in relation to the

financial statements as a whole.


Samuel A. Delp, Jr.


Triantos & Delp


November 18, 2016

99

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Page 1 of 2


NOTE TO THE SCHEDULES OF EXPENDITURES OF AWARD

AND FINANCIAL ASSISTANCE

JUNE 30, 2016

NOTE 1. GENERAL

The accompanying schedules of expenditures of federal awards and state financial assistance include

federal and state award activity of the Board of Education, Upper Deerfield Township School District.

The Board of Education is defined in Note 1 to the Board’s basic financial statements. All federal and

state awards received directly from federal and state agencies, as well as federal awards and state financial

assistance passed through other government agencies is included on the schedule of expenditures of

federal awards and state financial assistance.

NOTE 2. BASIS OF ACCOUNTING

The accompanying schedules of expenditures of awards and financial assistance are presented on the

budgetary basis of accounting with the exception of programs recorded in the food service fund, which are

presented using the accrual basis of accounting.. These bases of accounting are described in Note 1 to the

Board’s basic financial statements. The information in this schedule is presented in accordance with the

requirements of 2 CFS 200-Uniform Administrative Requirements, Cost Principles, and Audit

Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from

amounts presented in, or used in the preparation of, the basic financial statements.

NOTE 3. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS

The basic financial statements present the general fund and special revenue fund on a GAAP basis.

Budgetary comparison statements or schedules (RSI) are presented for the general fund and special

revenue fund to demonstrate finance-related legal compliance in which certain revenue is permitted by

law or grant agreement to be recognized in the audit year, whereas for GAAP reporting, revenue is not

recognized until the subsequent year or when expenditures have been made.

The general fund is presented in the accompanying schedules on the modified accrual basis with the

exception of the revenue recognition of the last state aid payment in the current budget year, which is

mandated pursuant to N.J.S.A. 18A:22-4.2. For GAAP purposes, that payment is not recognized until the

subsequent budget year due to the state deferral and recording of the last state aid payment in the

subsequent year. The special revenue fund is presented in the accompanying schedules on the grant

accounting budgetary basis which recognizes encumbrances as expenditures and also recognizes the

related revenues, whereas the GAAP basis does not. The special revenue fund also recognizes the last

state aid payment in the current budget year, consistent with N.J.S.A., 18A:22-4.2.

The net adjustment to reconcile from the budgetary basis to the GAAP basis is $624 for the general fund

and $(65,340) for the special revenue fund. See Exhibit C-3 for a reconciliation of the budgetary basis to

the modified accrual basis of accounting for the general and special revenue funds. Awards and financial

assistance revenues are reported in the Board’s basic financial statements on a GAAP basis as follows:

Federal State Total

General Fund $ 60,909. $ 7,738,445. $ 7,799,354.

Capital Project Fund 1,094,103. 225,568. 1,319,671.

Debt Service Fund 0. 59,786. 59,786.

Food Service Fund 363,952. 5,263. 369,215.

Total Financial Assis. $ 1,518,964. $ 8,029,062. $ 9,548,026.

104

K-5

Page 2 of 2


NOTE TO THE SCHEDULES OF EXPENDITURES OF AWARD

AND FINANCIAL ASSISTANCE

JUNE 30, 2016

NOTE 4. RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS

Amounts reported in the accompanying schedules agree with the amounts reported in the related federal

and state financial reports.

NOTE 5. OTHER

Revenues and expenditures reported under the Food Distribution Program represent current year value

received and current year distributions respectively. The amount reported as TPAF Pension Contributions

represents the amount paid by the state on behalf of the District for the year ended June 30, 2016. TPAF

Social Security Contributions represents the amount reimbursed by the state for the employer’s share of

social security contributions for TPAF members for the year ended June 30, 2016.

NOTE 6. SUBRECIPIENTS

The District had no expenditures to subrecipients during the year ended June 30, 2016

NOTE 7. INDIRECT COSTS

The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform

Guidance.

105

K-6


SCHEDULE OF FINDINGS AND QUESTIONED COSTS


Section I – Summary of Auditor’s Results

Financial Statements

Type of auditor’s report issued: Unmodified

Internal control over financial reporting:

1. Material weakness(es) identified? Yes x No

2. Significant Deficiencies identified

that are not considered to be material

weaknesses? Yes x No

Noncompliance material to general purpose financial

statements noticed? Yes x No

Federal Awards

Internal Control over major programs:


2. Significant Deficiencies identified that

are not considered to be material

weaknesses? Yes x No

Type of auditor’s report issued on compliance for

major programs: Unmodiified

Any audit findings disclosed that are required to be

reported in accordance with section .516(a) of

2 CFR? Yes x No

Identification of major programs:

CFDA Number(s) Name of Federal Program or Cluster

84.419B Race to the Top – Preschool Expansion

Dollar threshold used to distinguish between Type A and Type B programs: $750,000.

Auditee qualified as low-risk auditee? x Yes No

106

K-6




(Continued)

Section I – Summary of Auditor’s Results

(Continued)

State Awards

Dollar threshold used to distinguish between type A and

type B programs: $750,000.

Auditee qualified as low risk auditee? x Yes No

Type of auditor’s report issued on compliance for

major programs: Unmodified

Internal Control over major programs:


2. Significant Deficiencies identified

that are not considered to be

material weaknesses? Yes x No

Any audit findings disclosed that are required to be reported

in accordance with NJ OMB Circular Letter 15-08? Yes x No

Identification of major programs:

GMIS Number(s) Name of State Program

495-034-5120-078 Equalization Aid

495-034-5120-084 Security Aid

495-034-5120-089 Special Education Aid

495-034-5120-098 PARCC Readiness Aid

495-034-5120-097 Per Pupil Growth Aid

Section II – Financial Statement Findings

None Reported

.

107

K-6




(Continued)

Section III – Federal Awards and State Financial Assistance Findings and Questioned Costs

FEDERAL AWARDS

Finding: 2016-001

Information on the federal program:

U.S. Department of Education

Passed through NJ Department of Education

Race to the Top – Preschool Expansion CFDA No. 84.419B

Criteria or specific requirement:

OMB Circular A-87, Attachment B requires that salaries charged to a federal program be supported by

periodic certifications that the employees worked on the program. The certifications should include

personal activity reports documenting actual after-the-fact activities.

Condition:

The salaries being charged to the federal Preschool Expansion program were not supported by periodic

certifications as required.

Questioned Costs:

None

Context:

The salary of the employees charged to the program were not supported by periodic certifications.

Effect:

The required documentation to support the salaries of the employee charged to the program were not

complete.

Cause:

District officials were not aware of the documentation requirements pertaining to the Preschool Expansion

program.

Recommendation:

That all salaries charged to all federal programs be supported by periodic certifications and personal

activity reports as required.

Views of responsible officials and planned corrective action:

The district officials concur with the finding and will make the necessary corrections to provide the

required supporting documentation.

Finding: 2016-002

Information on the federal program:

U.S. Department of Education

Passed through NJ Department of Education

Race to the Top – Preschool Expansion CFDA No. 84.419B

108

K-6




(Continued)

Section III – Federal Awards and State Financial Assistance Findings and Questioned Costs

(Continued)

Criteria or specific requirement:

OMB Circular A-87, Attachment B requires that salaries charged to a federal program be supported by

periodic certifications that the employees worked on the program. The certifications should include

personal activity reports documenting actual after-the-fact activities.

Condition:

The grant requires that periodic reports be filed to report the total number of children enrolled in the

preschool program and also the number of children funded by the grant.

Questioned Costs:

Unknown

Context:

The grant attendance report filed for October 15, 2015 reported total preschool enrollment of 78 including

grant funded enrollment of 18. The NJ Attendance Register list total preschool enrollment of 70.

Effect:

The grant report was not supported by the attendance record.

Cause:

Error in preparing report.

Recommendation:

That grant attendance reports agree with school records. That eligibility for grant funding be supported

by necessary income verification and funded children be identified.

Views of responsible officials and planned corrective action:

Management agrees with finding.

STATE AWARDS

None Reported

109

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SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS

AND QUESTIONED COSTS AS PREPARED BY MANAGEMENT


STATUS OF PRIOR YEAR FINDINGS

Finding:

2015-01

Condition:

The District’s expenditure records by location did not adequately break down the total amount spent for

intervention at the targeted assistance school.

Current Status:

The District made the necessary corrections to adequately track the amount spent for intervention at the

targeted assistance school.

Finding:

2015-02

Condition:

The salaries being charged to the federal Title III program were not supported by periodic certifications as

required.

Current Status:

The salary charged to the federal Title III program was properly supported by periodic certifications.

However, salaries charged to the federal Preschool Expansion program were not properly supported by

periodic certifications. See Findings 2016-01.

110

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