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COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2016

GUILFORD COUNTY BOARD OF EDUCATION GREENSBORO, NORTH CAROLINA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

of the

GUILFORD COUNTY BOARD OF EDUCATION

Greensboro, North Carolina

For the Fiscal Year Ended June 30, 2016

Prepared by:

Angela Henry, Chief Financial Officer

Daphna Schwartz, Assistant Financial Officer

Guilford County Board of Education

TABLE OF CONTENTS INTRODUCTORY SECTION Page No. Letter of Transmittal ................................................................................................. i Guilford County Board of Education - Board Members and Principal

Officials ................................................................................................................. xi Guilford County Schools - Organizational Chart ..................................................... xii Certificate of Excellence in Financial Reporting Award - ASBO ............................ xiii Certificate of Excellence in Financial Reporting Award - GFOA ............................ xiv FINANCIAL SECTION Independent Auditors’ Report .................................................................................. 1 Management’s Discussion and Analysis ................................................................ 4 Exhibit Basic Financial Statements Government-Wide Financial Statements: 1 Statement of Net Position .................................................................................... 14 2 Statement of Activities .......................................................................................... 15 Fund Financial Statements: 3 Balance Sheet - Governmental Funds ................................................................ 17 4 Statement of Revenues, Expenditures and Changes in Fund Balances

- Governmental Funds ...................................................................................... 18 4 Reconciliation of the Statement of Revenues, Expenditures and

Changes in Fund Balances to the Statement of Activities............................... 19 5 Statement of Revenues, Expenditures and Changes in Fund Balances

- Budget and Actual - General and State Public School Funds ...................... 20 6 Statement of Net Position - Proprietary Funds .................................................... 22 7 Statement of Revenues, Expenses and Changes in Net Position -

Proprietary Funds.............................................................................................. 23 8 Statement of Cash Flows - Proprietary Funds .................................................... 24 9 Statement of Fiduciary Net Position .................................................................... 26 10 Statement of Changes in Fiduciary Net Position................................................. 27 Notes to Financial Statements ............................................................................. 28


TABLE OF CONTENTS Schedule FINANCIAL SECTION (CONTINUED) Page No.

Combining and Individual Fund Statements and Schedules

Required Supplementary Information (“RSI”)

RSI-1 Schedule of Board’s Proportionate Share of the Net Pension Liability… 54

RSI-2 Schedule of Board Contributions……………………………………………. 55

Individual Fund Statements and Schedules 1 Schedule of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual – General Fund .................................................................. 56 2 Schedule of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual – Capital Outlay Fund ........................................................ 58 3 Combining Balance Sheet – Nonmajor Governmental Funds ............................ 59 4 Combining Statement of Revenue, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds .......................................... 60 5 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Nonmajor Governmental Funds ................... 62 6 Detailed Schedule of Revenues, Expenditures and Changes in Fund

Balances – Individual Schools Fund ................................................................ 63 7 Schedule of Revenues and Expenditures – Budget and Actual (Non-

GAAP Modified Accrual Basis) – School Food Service Fund ......................... 67 8 Schedule of Revenues and Expenditures – Budget and Actual (Non–

GAAP Modified Accrual Basis) – After School Care Enrichment Services Fund ................................................................................................... 68

Fiduciary Funds 9 Combining Statement of Fiduciary Net Position .................................................. 69 10 Combining Statement of Changes in Fiduciary Net Position .............................. 71 Table STATISTICAL SECTION 1 Net Position by Component – Last Ten Fiscal Years ............................................. 73 2 Changes in Net Position – Last Ten Fiscal Years .................................................. 75 3 Governmental Funds – Fund Balances – Last Ten Fiscal Years .......................... 79 4 Governmental Funds – Changes in Fund Balances – Last Ten Fiscal

Years ..................................................................................................................... 81 5 Governmental Fund Revenues by Source – Last Ten Fiscal Years ...................... 83 6 Governmental Fund Expenditures by Function – Last Ten Fiscal Years .............. 85 7 Property Tax Levies and Collections for Guilford County – Last Ten

Fiscal Years .......................................................................................................... 87 8 Assessed and Estimated Actual Value of Taxable Property for Guilford

County – Last Ten Fiscal Years ........................................................................... 89


TABLE OF CONTENTS

Table STATISTICAL SECTION (CONTINUED) Page No. 9 Property Tax Rates – All Direct and Overlapping Governments for

Guilford County (Per $100 of Assessed Value) – Last Ten Fiscal Years ........... 91 10 Ratio of Outstanding Debt by Type for Guilford County – Last Ten Fiscal

Years ..................................................................................................................... 93 11 Direct and Overlapping Governmental Activities Debt for Guilford County

– June 30, 2016 .................................................................................................... 94 12 Principal Taxpayers in Guilford County – Current Year and Nine Years

Ago ........................................................................................................................ 95 13 Legal Debt Margin Information – Guilford County – Last Ten Fiscal Years .......... 96 14 Demographic Statistics for Guilford County – Last Ten Fiscal Years .................... 98 15 Principal Employers – Current Year and Nine Years Ago ..................................... 99 16 Full–Time Equivalent Employees by Function – Last Ten Fiscal Years ................ 100 17 Comparative Average Daily Membership – School and Special

Programs – Last Ten Fiscal Years ...................................................................... 101 18 Operating Statistics – Last Ten Fiscal Years .......................................................... 109 19 Instructional Personnel – Last Ten Fiscal Years .................................................... 111 20 School Building Data – Elementary, Middle, High School and Special

Use Facilities – Year Ended June 30, 2016 ........................................................ 112 21 Capital Lease and Installment Purchase Payments – Last Ten Fiscal

Years ..................................................................................................................... 118 COMPLIANCE SECTION Report on Internal Control Over Financial Reporting and on Compliance

and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....................... 119

Report on Compliance with Requirements Applicable to Each Major Federal Program and Internal Control Over Compliance in Accordance with Uniform Guidance and the State Single Audit Implementation Act ............ 121

Report on Compliance with Requirements Applicable to Each Major State Program and Internal Control Over Compliance in Accordance with Uniform Guidance and the State Single Audit Implementation Act ............ 123

Schedule 11 Schedule of Findings and Questioned Costs ......................................................... 125 12 Summary Schedule of Prior Audit Findings ............................................................ 127 13 Schedule of Expenditures of Federal and State Awards ........................................ 128

INTRODUCTORY SECTION

This section of Guilford County Board of Education’s (the “Board”) comprehensive annual financial report presents general information on the Board’s structure and the environment in which it operates.

LETTER OF TRANSMITTAL

November 22, 2016

Members of the Guilford County Board of Education and Citizens of Guilford County, North Carolina:

In compliance with North Carolina General Statute 115C-447, the Comprehensive Annual Financial Report (the “Report”) of the Guilford County Board of Education, operating as “Guilford County Schools,” for the fiscal year ended June 30, 2016 is herewith submitted.

MANAGEMENT RESPONSIBILITY

Responsibility for the accuracy, completeness, and clarity of the Report rests with the Superintendent and the Finance Officer. The Report has been prepared by the Chief Financial Officer and the Assistant Financial Officer in accordance with the requirements and guidelines promulgated by the Governmental Accounting Standards Board. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner that presents fairly the financial position and results of operations of the various funds of the district. All disclosures necessary to enable the reader to gain the maximum understanding of the district’s financial activity have been included.

REPORTING ENTITY

Guilford County Schools (“GCS”) is the third largest school district in North Carolina and among the 50 largest districts in the country serving more than 70,000 students at 127 schools as of the twentieth day of the 2015-16 school year. GCS is one comprehensive school district serving the entire county. Ten municipalities reside in Guilford County: Gibsonville, Jamestown, Oak Ridge, Pleasant Garden, Sedalia, Stokesdale, Summerfield, Whitsett and two of the state’s nine largest cities, Greensboro and High Point. The district was formed as a result of a merger of the former Greensboro City School, Guilford County School and High Point City School Systems in July 1993. This merger gives the district a robust mix of urban, suburban and county schools. Of the district’s 127 schools, 69 are elementary schools; 22 middle schools; 28 high schools; four special education schools; two SCALE schools, which provide an alternative to long-term suspensions; Doris Henderson Newcomer School, designed for students in grades five through 12 who have recently arrived in the United States and are considered novices on the North Carolina language test; and High School Ahead Academy, an innovative program for over-aged middle school students. The Board consists of eleven citizens elected for staggered terms of four years. The Superintendent serves as secretary to the Board. The Board has no tax levying authority and is required to maintain accounting records according to a uniform state format. The Board receives funding from Guilford County, the state of North Carolina, and the United States Government, and must comply with the legal requirements of each funding entity. North Carolina General Statute 115C-40 empowers the Guilford County Board of Education with general control and supervision of all matters pertaining to the schools in the system. In evaluating how to define the district for financial reporting purposes, management has considered all potential component units. The decision to include or exclude a potential component unit in the reporting entity is made by applying the criteria established by the Governmental Accounting Standards Board (GASB). The definition of a component unit is a legally separate organization for which the district is financially accountable and other organizations for which the nature and significance of their relationship with the district are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. The district is financially accountable if it appoints a voting majority of the organization’s governing body and (1) it is able to impose its will on that organization or (2) there is a

GUILFORD COUNTY BOARD OF EDUCATION LETTER OF TRANSMITTAL

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potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the district. The district may also be financially accountable if an organization is fiscally dependent on the district, regardless of whether the organization has (1) a separately elected governing board, (2) a governing board appointed by a higher level of government or (3) a jointly appointed board.

Using the GASB criteria, management has determined that the district has no component units, nor is it a component unit of any other organization.

ECONOMIC CONDITION AND OUTLOOK

GCS serves the diverse needs of the entire county, a 651 square mile area with an approximate population of 517,600. Our enrollment of approximately 70,600 students (our Average Daily Membership for 2015-16 was 70,922 per North Carolina Department of Public Instruction) mirrors the diversity of the community, representing some 95 countries and speaking 105 languages. Guilford County generally enjoys a favorable economic environment, which until the recent recession has enjoyed consistent stable growth. While gross retail sales information is unavailable due to the national streamlined sales tax initiative, comparable State taxable sales figures are available to approximate retail sales growth. State taxable sales for Guilford County increased 3.98% in fiscal year 2016 after increases of 9.85%, 4.0% and 0.1% in fiscal years 2015, 2014 and 2013, respectively. Taxable sales are $6.71 billion for fiscal year 2016 as compared to $6.45 billion for fiscal year 2015. Guilford County has a labor force of approximately 280,000. During the recent economic downturn, the Piedmont Triad region was affected more strongly than in the past due to the strong negative impact on traditional manufacturing industries. Guilford County’s unemployment rate has historically been below both state and national averages; however, during 2009 this changed as the unemployment rate began to exceed those averages. Guilford County’s unemployment rate is trending downward but still lags slightly behind the State and National levels. The County, State, and U.S. unemployment rates as of June 30, 2016 are 5.4%, 5.1%, and 5.1%, respectively. Guilford County’s economy has continued to change and diversify. In December 2015, manufacturing accounted for 12% of the County’s jobs compared to 28.6% in 1980. Manufacturing jobs have declined significantly in furniture and textiles but have shown growth in computer and electronic products and electrical equipment. Major employers with headquarters or divisions within Guilford County include semiconductor, communications, chemical, bus, truck, pharmaceutical, insurance, aircraft manufacturing and maintenance, healthcare, real estate development, and distribution services. The County is home to two state universities, four private colleges, a private school of law, and a community college with a cumulative enrollment exceeding 50,000 students. Site Selection magazine has ranked the Greensboro-High Point Metropolitan Statistical Area (MSA) No. 6 in the nation during 2015 for attracting new and expanded corporate facilities amount similar-sized areas (metros with populations of 200,000-1 million). While down from last year’s first-place ranking, this is the ninth year in a row that the MSA, composed of Guilford, Randolph, and Rockingham counties, has earned a Top 10 national ranking. Honda Aircraft received final type certification from the Federal Aviation Administration (FAA) and delivered its first $4.5 million HondaJet in December 2015; since then the company has delivered 13 HondaJets. In July 2016, the company earned its production certificate from the FAA. The type certificate is the FAA’s stamp of approval on the design of an aircraft and the production certificate allows the company to ramp up production of the aircraft. Since 2007 the company has grown its workforce to more than 1,700 and invested about $160 million into its world headquarters campus near the Piedmont Triad International Airport (PTIA). The company occupies more than 680,000 square-feet and its headquarters and manufacturing campus on a 130-acre site, which includes a customer service center, a research and development center and a productions facility.


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A $176.5 million road and taxiway bridge project designed to open up close to 1,000 acres for economic development at PTIA is underway. The work includes a 9.4 mile, four-lane section of the future Interstate 73 that will extend from Bryan Boulevard to just south of U.S. 220 near Haw River. The entire project is expected to be finished in 2017. HAECO Americas, an aircraft maintenance and overhaul company, announced in August 2016 that the construction of its fifth hangar is underway at the PTIA. The cost to build the nearly 250,000 square foot structure will total $60 million and add up to 500 jobs at full capacity. The project is slated for completion in the fourth quarter of 2017. The company employs 1,400 at PTIA currently. HAECO Cabin Solutions, a unit of HAECO Americas, expanded its design engineering and interiors product manufacturing capacity in its new $11.3 million, 259,000 square foot facility in High Point, which opened in the first half of 2016. The company plans to create 147 jobs over five years. Qorvo, formed in early 2015 from the merger of RF Micro Devices and TriQuint Semiconductor, announced in December its plans to add 100 new jobs over the next three years and make an investment of $25 million. In June, the company announced it had hired the majority of those positions with plans to add several more in the coming months and complete its new 150,000 square-foot facility by next summer. In August 2016, the company announced that it will make Greensboro its sole headquarters; its headquarters had previously been split between Greensboro and Oregon. Cone Health received approval from State regulators in February 2016 for two projects totaling $173 million. The system plans to spend $134.5 million to build a new five-story, 118,000 square-foot women’s health addition to Moses Cone Hospital for a replacement of the 40-year-old Women’s Hospital. Construction of the new facility could begin in the fall of 2017 with completion scheduled for mid-2020. In addition, Cone Health is planning a $38.5 million project to be ready for use in early 2018 that will modernize and expand its operating suites at Wesley Long Hospital. In 2012, Self-Help Ventures Fund began a $100 million renovation of the 45-acre Revolution Mill site, located just north of downtown Greensboro. When the current redevelopment phase is complete in 2017, the mixed-use campus will include more than 240,000 square-feet of office space and artist studios, 142 residential apartments, multiple dining options, fitness and yoga facilities, as well as event venues and public exhibits The Gateway Materials Test Center of the Joint School of Nanoscience and Nanoengineering, which works with aerospace companies, reported in January 2016 that it had received accreditation by the ANSI-ASQ National Accreditation Board. The accreditation is expected to help it attract more business from existing and new aerospace customers. CH Living, an upholstery brand of California-based Castle Home Furnishings, opened a 180,000 square-foot East Coast manufacturing facility in Greensboro in the first half of 2016, with plans to employ 200 workers by the end of 2017. Union Square Campus opened its $34 million nursing education facility in downtown Greensboro in August 2016. The three-story, 84,000 square-foot building will house a nursing collaboration between Cone Health, UNC-Greensboro, NC A&T State University, and GTCC. Construction is underway on a $60 million hotel/apartment complex, Carroll at Bellemeade, at the corner of Eugene and Bellemeade streets. The complex is located in the north end of downtown Greensboro and is expected to be finished at the end of 2017.


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Public and private funds are constructing a $78 million Steven Tanger Center for the Performing Arts in Downtown Greensboro; an opening is scheduled for early 2018. Across the street from the planned performing arts center, Greensboro’s newest park, Carolyn and Maurice LeBauer Park, officially opened in August 2016. The 3.5-acre park was built with a $10 million gift to the Community Foundation of Greater Greensboro. Daimler’s Thomas Built Buses, the leading school bus manufacturer in North America, reported in July 2016 the addition of 200 jobs at its Fairfield Road operation, which sits on the border – partly in the Guilford County part of High Point and partly in Randolph County. The additional positions came on top of an $11.8 million expansion completed in 2015 that created 236 full-time jobs. Heritage Home Group moved its corporate headquarters from out of state to its newly up-fitted building in High Point in March 2016. The furniture company is adding approximately 300 jobs to the local workforce. Ralph Lauren Corporation, High Point’s largest employer with 2,843 full time equivalent employees, completed construction on its 843,000 square-foot $36.14 million distribution facility in the fall of 2015 and it’s expected to be fully operational in the third quarter of 2016. The building is in the I-74 Corporate Park, which is located in Forsyth County and annexed to the City of High Point. In April 2016, High Point University announced $160 million in three new building projects that are expected to take the next several years to complete. Construction is underway on the 224,000 square-foot School of Health Sciences and School of Pharmacy, a $120 million project which is scheduled to be complete in 2017. High Point Regional Health completed the first phase of its $78 million comprehensive expansion and renovation project in the spring of 2016. The project is expected to be completed in March 2019. Creative Snacks Co., a Greensboro based snack manufacturer, is building a $3 million, 92,130 square-foot facility in High Point that will add up to 100 jobs over the next five years. The project was underway as of June 2016.

BUDGET PROCESS

The North Carolina School Budget and Fiscal Control Act mandates a uniform budget format and the adoption of an annual balanced budget resolution for the State Public School Fund, the Local Current Expense Fund, the Federal Grants Fund, the Capital Outlay Fund and the Special Revenue Fund. The district’s budget resolution also includes the Child Nutrition or School Food Service Fund and the ACES (After-School Care Enrichment Services) fund. Budget development is a year-round process that begins in the fall of each year and continues until a budget resolution is adopted by the Guilford County Board of Education on or before July 1. Participation at all levels of the school system is evident in this ongoing process. Schools and central office departments review their budget needs and submit their requests. The superintendent, chief financial officer and division chiefs develop the superintendent's budget request prioritizing all requests based on the vision, mission, goals, objectives and strategies outlined in the District’s strategic plan, Achieving Educational Excellence: Personalizing Learning. Initial state fund and federal fund budget calculations are based on budget information provided by the North Carolina Department of Public Instruction.


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Previous years’ budgets and development processes were reviewed in order to identify the major budgetary assumptions/variables of federal, state and local origin impacting the school district’s budget development/adoption. The assumptions/variables identified as a result of that review include:

salary increase percentage for teachers/licensed staff; salary increase percentage for principals/assistant principals; salary increase percentage for classified employees; changes in employee benefit rates/amounts (social security, retirement, hospitalization, workers’

compensation, unemployment, life insurance); percentage of increase for annual utility/energy and gas/diesel fuel costs; percentage of increase for various risk management areas (i.e., liability/fleet/property/pupil scholastic

accident insurance lines of coverage); additional energy costs for newly constructed and or air conditioned square footage associated with the

district’s Capital Improvement Plan (CIP) Program; additional maintenance/staffing costs associated with newly constructed and/or renovated square

footage associated with the CIP Program; and increase in funding associated with projected growth in student enrollment. Other factors impacting the budget development process can include:

strategic plan initiatives; funds to address accountability/achievement goals/requirements; or funds to offset anticipated state/federal budget cuts. A final consideration concerns the funds needed to maintain an aging infrastructure. Half of the school district’s buildings are 50 years old or more, with at least 60% built before 1969. The school district maintains over 12 million square feet of school building space. These items are funded from the increase in funding associated with projected growth in student enrollment, if available, and/or from the redirection of existing state/local/federal dollars and/or from additional funding requested from the county commission. GCS has two proprietary (enterprise) funds - the Child Nutrition or School Food Service Fund and the After School Care Enrichment Services (ACES) Fund. Budgets for these funds are developed based on historical revenue, expenditure and participation data as well as anticipated legislated salary increases and/or changes in employee benefit rates/amounts and/or inflationary increases for food or supplies and/or student enrollment projections and/or changes in child nutrition meal costs or weekly ACES fees. Nearly $100 billion in federal stimulus or American Recovery and Reinvestment Act of 2009 (ARRA) funds were dedicated to education. The U.S. Department of Education distributed ARRA funds to states to save and create jobs while advancing reforms and improvements that will create long-lasting results for K-12 students. GCS benefited from these dollars in several programs as evidenced in recent years by an increase in the federal fund budget as a percentage of the total budget. The district continues to receive ARRA funds for very specific programs in the form of various direct federal grants.


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Monitoring of budgets and funds: Budget management includes three separate areas:

1. pre-audit of disbursements and encumbrances

2. amendments to the budget resolution

a. accounts for transfers of funds from one account to another within guidelines of the respective funding source(s)

b. tracks increases (new funds added to budget) or decreases (funds removed from budget)

c. budget resolution specifies transfer authority and reporting requirements

3. meeting applicable reporting requirements (local, state and federal)

Some of the tools/mechanisms used to evaluate budgets include:

internal audits; external audits; program audits; analyzing expenditures and revenues; analyzing staffing patterns.

The district incorporates the following practices in budget development and implementation: establishing measures for continuous performance monitoring; obtaining citizen and other stakeholder involvement early in the budget process; communicating goals, objectives, strategies and desired outcomes; promoting a sense of ownership and empowerment to budget managers to implement effective practices

and achieve goals; incorporating realistic revenue and expenditure forecasts; reviewing budget-to-actual or budget-to-projected comparisons of revenues, expenditures, cash flow, and

fund balance periodically during budget development; providing monthly summary and detail expenditure reports to budget managers; using the district’s accounts payable, general ledger, payroll and purchasing systems to monitor available

funds before encumbering/spending occurs; and preparing a comprehensive annual financial report of the district’s operations.

MAJOR INITIATIVES, SERVICE EFFORTS AND ACCOMPLISHMENTS

Our vision (what we will become), our mission and thematic goals (how we will get there), and our core values (what we believe) solidify the underlying foundation for all Guilford County Schools’ decisions and actions. Our vision is to become the top performing academic metropolitan school district in America. The mission of the district is that Guilford County students will graduate as responsible citizens prepared to succeed in higher education, or in the career of their choice. The Board in partnership with parents and community members wants to share these district core values in order to strengthen our schools and improve the quality of life for all of our citizens.

Diversity. We are committed to creating an educational organization where a variety of persons and perspectives are welcome. We are committed to providing an environment where students and staff from all cultures and backgrounds may succeed.


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Empathy. We are committed to developing a culture where our employees identify with and understand the feelings of our students and parents and their colleagues.

Equality. We are committed to creating a school system where everyone is appreciated and judged based solely on their contributions and performance. Through the work of this institution, we will create awareness of and develop strategies to understand and eradicate prejudice, discrimination and racism on the individual and organizational level.

Innovativeness. We are committed to fostering a work environment where the goal is not to manage innovations, but to become innovative. Problems are identified, ownership of those problems is assumed by the adults in the district, and everyone works together as agents of the solution until the problems are solved. We will not stop until obstacles are removed, solutions found and clear and compelling goals are established.

Integrity. We are committed to creating a school district that acts with honesty and forthrightness, holding ourselves to high academic and ethical standards, and dealing with everyone with respect.

The Guilford County Schools (GCS) Strategic Plan 2016: Achieving Educational Excellence: Personalizing Learning serves as the district’s road map for achieving educational excellence. The plan includes strategies designed to boost student achievement, increase family and community involvement, improve district service, increase the teacher retention rate and improve school safety and discipline. The plan is divided into four key areas:

personalizing learning; character, service and safety; parent, family and community; and educator and organizational excellence.

ACHIEVING EDUCATIONAL EXCELLENCE

HONORS

Say Yes to Education Community

National District of Character

North Carolina District of Character

Profiles in Courage Award from the Council of the Great City Schools

2013, 2014, 2015 and 2016 United Way Spirit of North Carolina Award-Winner for outstanding commitment and support to North Carolina communities through local United Way involvement

During the past six years, state championships in football, basketball, men’s and women’s indoor and outdoor track, tennis, golf, wrestling, lacrosse and swimming

STANDOUT SCHOOLS

In 2016, GCS’ graduation rate reached an all-time high of 89.4%

Eleven high schools achieved 100% graduation rates. An additional 11 schools, including seven traditional high schools, had graduation rates above 90%

14 high schools on the 2016 Washington Post’s America’s Most Challenging High Schools list. GCS schools also took 3 of the top 10 spots in the state; The Early College at Guilford made the paper’s Public Elite list.


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Three high schools among the top 10 in the state on the U.S. News and World Report 2016 Best High Schools list and 12 schools recognized overall

The Early College at Guilford was named the best high school in North Carolina by Niche, a research company. Nine other GCS schools made the top 100.

10 State Schools of Character since 2014 and one National School of Character

The state’s first Advanced Placement Capstone program

One school named 2015 Magnet School of Excellence by Magnet Schools of America

Two schools named Title I Reward Schools by the state Board of Education

TOP EDUCATORS

2013 North Carolina Teacher of the Year

2012 North Carolina Principal of the Year

782 National Board Certified Teachers – ranking ninth in the country

One educator who was named a Global Learning Fellow and who received the NEA Foundation Award for Teaching Excellence

One of only 11 districts nationally to partner with 100Kin10, a commitment to preparing and licensing 150 STEM teachers by 2020

SUPERIOR STUDENTS

16 semi-finalists for the 2015-16 National Merit Scholarship; at least two winners

29 students selected for 2016 Governor’s School of North Carolina, the nation’s oldest statewide summer residential program for academically gifted students

Six student-athletes received the Heart of a Champion award in 2016

Members of the Class of 2016 received the Morehead-Cain scholarship, Duke Trinity Scholarship, Parks Scholarship and Gates-Millennium Scholarship

INTERNAL CONTROLS

Management of GCS is responsible for establishing and maintaining internal controls 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 the preparation of financial statements in conformity with generally accepted accounting principles. The internal controls are 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 evaluation of costs and benefits requires estimates and judgments by management. We believe the Board’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. As a recipient of federal, state and county financial assistance, the district also is responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to those programs. The internal controls are subject to periodic evaluation by management and the external


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auditor for the district. The program administrators for school accounting monitor the activity funds of the individual schools for compliance with applicable federal, state, and local laws/regulations/policies/procedures. As a part of the district’s single audit, tests are made to determine the adequacy of the internal controls, including that portion related to state and federal financial assistance programs, as well as to determine that the district has complied with applicable laws and regulations. The district’s single audit for the fiscal year ended June 30, 2016 resulted in no instances of material weaknesses in internal controls, material violations of applicable laws and regulations or questioned costs. INDEPENDENT AUDIT North Carolina General Statutes require an annual audit by independent certified public accountants. The financial records and transactions of the Guilford County Board of Education for the year ended June 30, 2016 have been audited by Dixon Hughes Goodman LLP, a firm of independent certified public accountants. Their audit of the basic financial statements and accompanying combining and individual fund statements and schedules was performed in accordance with generally accepted auditing standards and, accordingly, included a review of the Board’s system of budgetary and accounting controls. In addition to meeting the requirements set forth by the statutes, the audit also was designed to meet the federal and state single audit requirements. Guilford County Schools received an unmodified opinion on the basic financial statements. The auditors’ report on the basic financial statements and the combining and individual fund statements and schedules are included in the financial section of this Report. Management’s Discussion and Analysis provides an overview of the Board’s financial activities and condition for the fiscal year ended June 30, 2016. The analysis focuses on school district financial performance as a whole. Please read it in conjunction with this transmittal letter and the school district’s financial statements. AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting and the Association of School Business Officials International (ASBO) awarded a Certificate of Excellence in Financial Reporting to the Guilford County Board of Education for its comprehensive annual financial report for the fiscal year ended June 30, 2015. These are prestigious awards recognizing conformance with the highest standards for preparation of state and local government financial reports. These awards are made only to governmental units that publish a comprehensive annual financial report that is easily readable, efficiently organized, and conforms to program standards as well as satisfies generally accepted accounting principles and applicable legal requirements. The awards are valid for a period of one year only. We believe the accompanying Report continues to conform to GFOA and ASBO program requirements; therefore, we will submit it to these respective organizations for consideration of renewed certificate eligibility and award. In addition, the GFOA presented a Distinguished Budget Presentation Award to the Guilford County Board of Education for its annual budget document for the fiscal year beginning July 1, 2015. The Board has received this award for fourteen consecutive years. In order to receive this award, the district must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device.


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ACKNOWLEDGEMENTS The preparation of this Report could not have been accomplished without the efforts and dedication of the Financial Services staff of Guilford County Schools and the independent audit firm. We would like to express our appreciation to all of the employees who contributed in the development of this Report and to the Guilford County government for providing statistical data. Also, we would like to thank members of the Guilford County Board of Education for supporting the financial operation of the school system in a dedicated and responsible manner.

Respectfully submitted,

Sharon L. Contreras, Ph. D. Angela C. Henry Superintendent Chief Financial Officer

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BOARD MEMBERS AND

PRINCIPAL OFFICIALS

BOARD OF EDUCATION

Alan W. Duncan, Chairperson

Amos Quick, III, Vice Chairperson

Dr. Sandra Alexander

Jeff Belton

Rebecca Buffington

Darlene Garrett

Deena A. Hayes

Dr. A. Keith McCullough

Ed Price

Dr. Nancy R. Routh

Linda Welborn

SUPERINTENDENT

Sharon L. Contreras

SUPERINTENDENT’S CABINET

Dr. Nora Carr, Chief of Staff

Dr. Nakia Hardy, Chief Academic Officer

Dr. Alicia Tate, Executive Director Exceptional Children

Dr. Meg Sheehan, Western Regional Superintendent

Dr. Phyllis W. Martin, Southeastern Regional Superintendent

Dr. Randy Shaver, Northern Regional Superintendent

Dr. Shirley D. Morrison, Chief Human Resources Office

Angela C. Henry, Chief Financial Officer

Vacant, Chief Student Services Officer

Dr. Tony Watlington, Central Regional Superintendent

Dr. Terrence O. Young, Chief Technology Officer

Dr. Judith Penny, Executive Director Accountability and Research

Dr. Jocelyn Becoats, Chief Curriculum and Organizational Development Officer

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The Certificate of Excellence in Financial Reporting Award

is presented to


for its Comprehensive Annual Financial Report (CAFR) for the Fiscal Year Ended June 30, 2015.

The CAFR has been reviewed and met or exceeded

ASBO International’s Certificate of Excellence standards.

Brenda R. Burkett, CPA, CSBA, SFO John D. Musso, CAE, RSBA President Executive Director

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FINANCIAL SECTION

This section of the Guildford County Board of Education’s (the “Board”) comprehensive annual financial report presents the basic financial statements and Required Supplementary Information (including Management’s Discussion and Analysis), as well as the Independent Auditors’ Report. In addition, the financial section contains combining statements for fund types, budgetary schedules and other supplemental information.

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INDEPENDENT AUDITORS’ REPORT

Guilford County Board of Education Greensboro, North Carolina

Report On The Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Guilford County Board of Education (the “Board”) as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the Board’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.

Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ 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.

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Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the Board as of June 30, 2016, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the General Fund and State Public School Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters Required Supplementary Information

Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis on pages 4 through 13 and the Schedule of Board’s Proportionate Share of the Net Pension Liability and the Schedule of Board Contributions on pages 54 and 55, respectively be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us will sufficient evident to express and opinion or provide any assurance.

Supplementary and Other Information

Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Board’s basic financial statements. The introductory section, combining and individual non-major fund financial statements and schedules, budgetary schedules and statistical section, as well as the accompanying Schedule of Expenditures of Federal and State Awards as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and State Single Audit Implementation Act, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual non-major fund financial statements, budgetary schedules, other schedules and the accompanying Schedule of Expenditures of Federal and 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 combining and individual non-major fund financial statements, budgetary schedules and the accompanying Schedule of Expenditures of Federal and State Awards are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

The introductory and statistical sections 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.

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Other Reporting Required By Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 22, 2016 on our consideration of the Board’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Board’s internal control over financial reporting and compliance.

Asheville, North Carolina November 22, 2016

GUILDFORD COUNTY BOARD OF EDUCAITON MANAGEMENT’S DISCUSSION AND ANALYSIS

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This section of the Guilford County Board of Education’s (the “Board”) financial report represents our discussion and analysis of the financial performance of the Board for the year ended June 30, 2016. This information should be read in conjunction with the audited financial statements included in this report.

Financial Highlights The Board’s average daily membership (ADM) decreased by 73 students (or .1%) from the previous year. [ADM

is calculated by dividing the number of students enrolled each school day (whether in attendance or not) by the number of school days.] In the past decade our student enrollment has increased by more than 1,500 students.

The Board’s governmental activities net position increased 3.2% and the business-type activities net position increased 15.8% during the year. This is due to the change in the School Board’s proportionate share of the State pension plan.

Total fund balance in the Board’s General Fund increased from $13.1 million at June 30, 2015 to $13.8 million at June 30, 2016. The increase in the total fund balance was due primarily to expenditures less than the amounts budgeted.

Unassigned fund balance is $2,229,326 as of June 30, 2016. This figure represents 1.2% of our FY16 general fund final budget; .33% of our FY16 final operating budget and .34% of our FY17 original operating budget. While the unassigned fund balance is not constrained in any way or earmarked for any specific use or purpose, these funds provide some additional financial stability to the district and the resources necessary to meet unexpected expenditures and/or revenue shortfalls in future budget cycles.

The 2015-16 county appropriation to the capital outlay fund was $5 million – these are dollars that are used to make needed repairs to more than 12 million square feet of facilities across the district.

In 2009-10 the Board established a special revenue fund to account for reimbursements, including but not

limited to, indirect costs, fees for actual costs, tuition, sales tax refunds, gifts and grants restricted as to use, federal appropriations made directly to local school administrative units, funds received for prekindergarten programs, and special programs.

The Board received a three-year $30 million U.S. Department of Education's Race to the Top-District grant in December 2012. The grant is being used to support the Personalized Achievement, Curriculum and Environment (PACE) Schools Project. In January 2013, the district was awarded an additional $5.2 million in optional grant funding, including $1,995,065 for Guilford Parent Academy, $1,656,307 for the African-American Male Achievement Initiative and $1,570,646 for a Guilford County Schools Virtual Public Middle School. This brings the total RttT-D grant funding to $35,222,003. These dollars are included in the special revenue fund.

On May 6, 2008, Guilford County (County) residents approved $412 million in school bonds. The package

contains 27 projects, which include five new schools and 6,571 new student seats. Thirteen schools will receive major renovations and additions. Projects included in the bond are prioritized with 93.5 percent of the request relieving overcrowding, 3.5 percent targeting repairs and renovations and 3 percent improving heating and air conditioning systems district wide. Projects included in the May 2008 $412 million school bonds are:

Jamestown Middle School - Funding for new 1,112 student replacement school on new site (site has been purchased)

Ragsdale High School - Combine existing Jamestown MS with Ragsdale HS and add new gym and media center

Ragsdale Autism Wing - Autism wing at Ragsdale High School for 48 students Special Education Center West - Additional funding to be added to current funding Southeast High School - New classrooms, media center and gymnasium addition Alamance Elementary School - Addition, demolition and renovations to convert to 700 student

elementary school


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Summerfield Elementary School - New classrooms and media center addition including expansion of the dining room

Southwest High School - New classrooms, media center and gymnasium addition Southeast Area Elementary School - New 700 student school in Southeast area Southeast Area Autism Wing - Autism Wing at Southeast Area Elementary School for 48 students Allen Middle School - New classrooms and auxiliary gym addition Southeast Middle School - New media center, auxiliary gym and dining room expansion. Convert

existing media center to classrooms North Greensboro Area Elementary School - New 700 student school to help relieve Jesse Wharton

and Brightwood areas Grimsley High School - New cafeteria addition, renovate main gym and Jameson Stadium; convert

existing cafeteria to classrooms Airport Area High School - New high school facilities in airport area for 1,200 students Airport Area Autism Wing - Autism wing at Airport Area High School for 48 students Airport Middle School Land - Purchase land for future airport area middle school Northwest Middle School - New auxiliary gym and classrooms addition Allen Jay Middle School - Renovation of existing facility for use as a small middle school Dudley High School - Renovation of existing English building for use as additional classrooms Dudley High School (athletics) - Funding to improve athletic facilities including football stadium Mobile Classrooms - Relocation costs for mobile classrooms at construction projects High Point Central High School - Lighting system/technology upgrades and renovations to main gym McLeansville Elementary School - Classrooms addition and media center expansion Northwest High School (site & athletics) - Site improvements for traffic control and improvements to

athletic facilities Simeon Stadium - Funding to improve athletic facilities including new lighting Tracks - Systemwide improvements to high school running tracks Tennis Courts - Systemwide improvements and additions to high school tennis courts HVAC - Systemwide improvements to heating and air conditioning systems Page HS (athletics) - Funding to improve athletic facilities

On January 8, 2013 the Board voted to not spend approximately $75M in bond dollars to build the airport area high school or buy the land for the airport area middle school and to discuss the decision with the board of county commissioners. On November 5, 2013, the Board of Education approved the following list of priority projects totaling $79,024,123:

Guilford Middle School – replacement school ($30,263,459); Hunter Elementary School – replacement school ($14,812,285); High Point Central High School – addition/renovation ($12,338,890); Smith High School – athletic renovation ($5,282,476); Western High School – addition/renovation ($6,001,437); Bluford Elementary School – renovation ($7,780,151); Northwood Elementary School – kitchen renovation/expansion ($639,225); Dudley High School – new traffic pattern ($750,000); and Northwest High School – new traffic pattern ($1,156,200).

On April 3, 2014, the Guilford County Board of County Commissioners approved a funding amount equal to the design and pre-construction cost for each of the nine priority projects. On March 19, 2015, the Guilford County Board of County Commissioners approved funding six of the nine priority projects totaling $42,571,153:

Hunter Elementary School – replacement school ($19,273,675 revised budget); High Point Central High School – addition/renovation ($12,457,591 revised budget); Bluford Elementary School – renovation ($8,294,462 revised budget); Northwood Elementary School – kitchen renovation/expansion ($639,225);


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Dudley High School – new traffic pattern ($750,000); and Northwest High School – new traffic pattern ($1,156,200).

It is important to note that the Board of Education has no tax levying authority; therefore, bond debt is issued and reported by the County while the capital assets and associated depreciation are reported by the Board. Overview of the Financial Section The audited financial statements of the Board consist of five components. They are as follows:

Independent Auditors’ Report; Management's Discussion and Analysis (required supplementary information); Basic Financial Statements; Required supplementary information that presents information about the Board’s participation in the state’s

retirement system; and Supplemental information that presents combining and budgetary statements for non-major governmental

funds and budgetary statements for major governmental and enterprise funds. The Basic Financial Statements include two types of statements that present different views of the Board’s finances. The first is the government-wide statements. The government-wide statements are presented on the full accrual basis of accounting and include the statement of net position and the Statement of Activities. The Statement of Net Position includes all of the Board’s assets and liabilities. Assets and liabilities are classified in the order of relative liquidity for assets and due date for liabilities. This statement provides a summary of the Board's investment in assets and obligations to creditors. Liquidity and financial flexibility can be evaluated using the information contained in this statement. The Statement of Activities summarizes the Board’s revenues and expenses for the current year. A net (expense) revenue format is used to indicate to what extent each function is self-sufficient. The second set of statements included in the basic financial statements is the fund financial statements, which is presented for the Board’s governmental funds, proprietary funds, and fiduciary funds. These statements present the governmental funds on the modified accrual basis of accounting, measuring the near term inflows and outflows of financial resources and what is available at year end to spend in the next fiscal year. The proprietary and fiduciary funds are presented on the full accrual basis of accounting. The fund financial statements focus on the Board’s most significant funds. Because a different basis of accounting is used in the government wide statements, reconciliation from the governmental fund financial statements to the government-wide statements is required. The government-wide statements provide information about the Board as an economic unit while the fund financial statements provide information on the financial resources of each of the Board’s major funds. Government-Wide Statements The government-wide statements report information about the unit as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the Board’s assets and liabilities, except for fiduciary fund 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 government-wide statements report the Board’s net position and how they have changed. Net position – the difference between the board’s assets and the total of liabilities – is one way to measure the unit’s financial health or position.

Over time, increases or decreases in the Board’s net position are an indicator of whether its financial position is improving or deteriorating.

To assess the district’s overall health, factors such as the condition of its school buildings and other physical assets must also be considered.


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The Board’s activities are divided into two categories in the government-wide statements:

Governmental activities: Most of the Board’s basic services are included here, such as regular and special education, transportation, and administration. County funding and state and federal aid finance most of these activities.

Business-type activities: The Board charges fees to help it cover the costs of certain services it provides. School Food Service and After-School Care Enrichment Services are included here.

The government-wide statements are shown as Exhibits 1 and 2 of this report. Fund Financial Statements The fund financial statements provide more detailed information about the Board’s funds, focusing on its most significant or “major” funds – not the unit as a whole. Funds are accounting devices the Board uses to keep track of specific sources of funding and spending on particular programs.

Some funds are required by state law, such as the State Public School Fund.

The Board has established other funds to control and manage money for a particular purpose or to show that it is properly using certain revenues, such as in the Federal Grants fund.

The Board has three types of funds: governmental funds, proprietary funds, and fiduciary funds. Governmental funds: Most of the Board’s basic services are included in the governmental funds, which generally focus on two things – how cash and other assets can readily be converted to cash flow in and out, and the balances left at year end that are available for spending. As a result of this focus, 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 coming year to finance the Board’s programs. Because this information does not encompass the additional long-term focus of the government-wide statements, additional information at the bottom of the governmental funds statements, in the form of a reconciliation, explains the relationship (or differences) between the government-side and the fund financial statements. The district has several governmental funds: the General Fund, the State Public School Fund, the Capital Outlay Fund, the Federal Grants Fund, the Special Revenue Fund, and the Individual Schools Fund. The governmental fund statements are shown as Exhibits 3, 4 and 5 of this report. Proprietary funds: Services for which the Board charges a fee are generally reported in the proprietary funds. The proprietary fund statements are reported on the same full accrual basis of accounting as the government-wide statements. The Board has two proprietary funds – both enterprise funds – the School Food Service Fund and the After School Care Enrichment Services Fund. The proprietary fund statements are shown as Exhibits 6, 7, and 8 of this report. Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The Board serves as a trustee, or fiduciary, for ten scholarships. All of the Board’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position and a separate Statement of Changes in Fiduciary Net Position. We exclude these activities from the Board’s other financial statements because the Board cannot use these assets to finance its operations. The Board is responsible for ensuring that the assets reported in these funds are used for their intended purposes and by those to whom the assets belong. This is accounted for as a private purpose trust fund. The fiduciary fund statements are shown as Exhibits 9 and 10 of this report.


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Financial Analysis of the Board as a Whole Net position is an indicator of the fiscal health of the Board. Total assets exceeded total liabilities by $783,288,181 as of June 30, 2016. The largest component of net position is the net investment in capital assets of $893,018,468. While assets for governmental activities exceeded liabilities by $772,367,655 as of June 30, 2016, the information regarding net position that is contained in the following two tables conveys a couple of important points about the financial condition of the district. The first point is related to the impact of fund balance levels on net position and the second point is related to the effect of school construction and major renovation projects on net position. Table 1 is a Condensed Statement of Net Position as of June 30, 2016 and Table 2 is a Condensed Statement of Activities for the year ended June 30, 2016.

Table 1 Condensed Statements of Net Position

as of June 30, 2016 and 2015

Governmental Activities Business-Type Activities Government-wide

6/30/2016 6/30/2015 6/30/2016 6/30/2015 6/30/2016 6/30/2015

ASSETS:

Current assets $ 43,575,921 $ 37,695,609 $ 12,261,276 $ 11,171,659 $ 55,837,197 $ 48,867,268

Non-current assets 3,062,590 3,246,027 - - 3,062,590 3,246,027

Capital assets 890,782,072 894,951,653 3,313,200 3,317,995 894,095,272 898,269,648

Total assets 937,420,583 935,893,289 15,574,476 14,489,654 952,995,059 950,382,943 DEFERRED OUTFLOW OF RESOURCES 35,114,035 36,147,344 946,872 929,066 36,060,907 37,076,410

LIABILITIES:

Current liabilities 29,277,516 26,926,104 1,132,235 1,155,561 30,409,751 28,081,665

Long-term liabilities 144,763,600 70,640,525 3,764,088 1,591,478 148,527,688 72,232,003

Total liabilities 174,041,116 97,566,629 4,896,323 2,747,039 178,937,439 100,313,668

DEFERRED INFLOW OF RESOURCES 26,125,847 125,978,941 704,499 3,237,936 26,830,346 129,216,877

NET POSITION: Net investment in capital assets 889,705,268 894,910,542 3,313,200 3,317,995 893,018,468 898,228,537

Restricted net position 9,827,322 7,247,544 - - 9,827,322 7,247,544

Unrestricted net position (127,164,935) (153,663,023) 7,607,326 6,115,750 (119,557,609) (147,547,273)

Total net position $ 772,367,655 $ 748,495,063 $ 10,920,526 $ 9,433,745 $ 783,288,181 $ 757,928,808

Note the increase in total assets in the Governmental Activities column when comparing the June 30, 2016 and June 30, 2015 financial snapshots. This increase is due, in part, to an increase in the cash balance of the capital outlay fund due the sale of property in the 2015-16 year. Also, note the negative amount of $127,164,935 as reflected in the unrestricted net position line-item in the Governmental Activities column in Table 1 (Condensed Statement of Net Position). The total governmental liabilities include $36,210,739 in accumulated vacation and bonus vacation leave as well as $109,233,355 in net pension liability. These liabilities, along with the net amount of deferred inflows of resources and deferred outflows of resources account for more than the unrestricted net position. This issue of negative governmental unrestricted net position reinforces the district’s need to maintain an unassigned fund balance. Readers desiring more detailed information on long-term debt/obligation activity should see Note III.B.10. to the financial statements. The change


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in the June 30, 2016 negative unrestricted net position of governmental activities when compared to the June 30, 2015, is a result of the change in the actuarial valuations of the net pension liability.

Table 2

Condensed Statements of Activities

Years ended June 30, 2016 and 2015


6/30/2016 6/30/2015 6/30/2016 6/30/2015 6/30/2016 6/30/2015

REVENUES:

Program revenues:

Charges for services $ 8,981,290 $ 8,183,692 $ 12,982,356 $ 12,815,448 $ 21,963,646 $ 20,999,140

Operating grants and

contributions 450,782,340 461,132,986 35,788,254 33,364,767 486,570,594 494,497,753

Capital grants and

contributions 1,120,332 1,918,004 19,000 390,041 1,139,332 2,308,045

General revenues:

Unrestricted county

appropriations 208,335,936 211,276,819 - - 208,335,936 211,276,819

Investment earnings, net 58,585 38,889 12,689 1,097 71,274 39,986

Other revenues 4,527,980 3,862,581 47,899 126,340 4,575,879 3,988,921

Total Revenues 673,806,463 686,412,971 48,850,198 46,697,693 722,656,661 733,110,664

EXPENSES:

Instructional programs 478,098,740 496,672,358 - - 478,098,740 496,672,358

Supporting services 131,281,385 131,013,635 - - 131,281,385 131,013,635

Ancillary services 158,689 132,925 - - 158,689 132,925

Non-program charges 13,851,504 11,833,107 - - 13,851,504 11,833,107

Depreciation expense 26,511,087 26,055,250 - - 26,511,087 26,055,250

Business-type activities

School food services - - 41,074,138 39,699,163 41,074,138 39,699,163

After school child care - - 6,321,745 6,065,517 6,321,745 6,065,517

Total expenses 649,901,405 665,707,275 47,395,883 45,764,680 697,297,288 711,471,955

Revenues over expenses 23,905,058 649,901,406 1,454,315 933,013 25,359,373 21,638,709

TRANSFERS (32,466) (33,199) 32,466 33,199 - -

Change in net position 23,872,592 20,672,497 1,486,781 966,212 25,359,373 21,638,709

NET POSITION:

Beginning of year 748,495,063 727,822,566 9,433,745 8,467,533 757,928,808 736,290,099

End of year $ 772,367,655 $ 748,495,063 $ 10,920,526 $ 9,433,745 $ 783,288,181 $ 757,928,808


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Table 2 (Condensed Statement of Activities) reflects an increase in net position of $23,872,592 for governmental activities (or 3.2%). This increase was due largely to a reduction in total liabilities due to the change in the actuarial valuations of the net pension liability. Total net position in the business-type activities increased by $1,486,781 in 2015-16. Also, note that the Board carries capital assets for which Guilford County carries the offsetting debt. Total governmental activities generated revenues of $673 million while expenses in this category totaled $649 million for the year ended June 30, 2016. Comparatively, revenues were $686 million and expenses totaled $665 million for the year ended June 30, 2015. The increase in net position for total governmental activities stands at $23.9 million at June 30, 2016, compared to $20.7 million in 2015. Instructional expenses comprised 73.6% of total governmental-type expenses while support services made up 20.2% of those expenses for 2016. County funding comprised 30.9% and 30.8% of total governmental revenue in 2016 and 2015, respectively. Much of the remaining 69% of total governmental revenue for 2016 consists of restricted state and federal money. The increase in net position for business-type activities stands at approximately $1,486,781 at June 30, 2016, compared to a decrease in net position of nearly $966,212 in 2015 (see the Financial Analysis of the Board’s Funds below for an explanation of the factors/conditions prompting this change). Financial Analysis of the Board’s Funds Governmental Funds: The focus of the Board’s governmental funds is to provide information on near-term inflows, outflows, and balances of usable resources. Such information is useful in assessing the Board’s financing requirements. The Board’s governmental funds (general, state, federal, capital outlay and individual school funds) reported a combined fund balance of $20.8 million, an increase of approximately $3.2 million from last year. More than one-half of this increase was due to proceeds of the sale of property reflected in the Capital Outlay Fund. Proprietary Funds: As mentioned previously, the Board has two proprietary funds – both enterprise funds – the School Food Service Fund and the After School Care Enrichment Services Fund. The activity in these two funds is categorized as business-type activity because the Board charges fees to help it cover the costs of services provided.

For the year ended June 30, 2016, revenues exceeded expenses in the School Food Service Fund by $1,252,919 despite a challenging year which saw new meal patterns dictated by the Healthy, Hunger-Free Kids Act of 2010 and an increase in lunch prices.

New meal patterns went into effect for lunch in the 2012-13 school year. The changes include:

ensure students are offered both fruits and vegetables every day of the week;

require all grain products to be whole grain rich;

allow only fat-free or low fat milk (flavored milk must be fat free);

limit calories based on the grade of the student; and

increase efforts to reduce sodium, saturated fat and trans fat. As part of the Healthy, Hunger-Free Kids Act, all districts must comply with a meal price equity requirement compelling all districts to annually increase the price of lunches served to paying students until such time as the cost of the paid lunch is, on average, equal to the difference between the free meal reimbursement and the paid meal reimbursement. Districts may choose to cover the difference in revenue with non-Federal funds (local dollars) instead of raising meal prices. The maximum annual increase required is $0.10; however, districts may establish a higher increase at their discretion. The Board of Education approved a 2015-16 lunch price increase of six cents at all schools.


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On June 28, 2012, Board approved a process to address charged meals in elementary and middle schools that includes:

establishing a cap as to the number of meals to be charged, and serving an alternative meal once the cap is met/exceeded.

Following implementation of the charged meal plan the district has realized a $451,839 or 93.3% reduction in the balance of charged meals at June 30, 2016 when compared to the balance of charged meals at June 30, 2012 and a 63.5% decrease when compared to the balance of charged meals at June 30, 2013. After School Care Enrichment Services (“ACES”) was provided to an average enrollment of 3,656 students at 57 elementary school sites in the district during the 2015-16 academic year. The weekly program fee continued to be $46 in 2015-16 and all ACES programs were licensed by the North Carolina Division of Child Development and Early Education and each was eligible to accept Department of Social Services child care vouchers. For the year ended June 30, 2016, revenues exceeded expenses in the After School Care Enrichment Services Fund by $233,862. General Fund Budgetary Highlights During the year, the Board revised its original budget ordinance. Budget amendments reflected changes in programs and related funding. The difference between the original budget and the final amended budget was an decrease of $405,477 or -0.22% in total general fund budgeted expenditures. This decrease was primarily attributable to an adjustment to fund balance appropriations for encumbrances that were outstanding at June 30, 2016. A review of Exhibit 5 (Statement of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual-General and State Public School Funds) reflects a negative variance in the General Fund final budgeted versus actual revenues. Resources available for appropriations were $1,021,742 less than the final budgeted amount because fine and forfeiture receipts and the sales tax refund were lower than anticipated. Exhibit 5 also reflects a $2.32 million positive variance in the General Fund’s final budget versus actual expenditures. This was primarily made up of $1.5 million in instructional services, $113,000 million in ancillary services, and $905,000 in non-program charges; however expenditures exceeded budgeted amounts for system-wide support services by $196,000.

Categorization of General Fund Expenditures

$ 105,780,387 , 57%$ 66,905,071 , 36%

$ 41,702 , 0%$ 12,601,602 , 7%

2016

Instructional services System‐wide support services Ancillary services Non‐program charges


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Categorization of General Fund Expenditures

(Expenditures presented on modified accrual basis of accounting.) Capital Assets Capital assets decreased by $4,146,380 (or .46%) from the previous year. This was largely due to current year depreciation. The following is a summary of the capital assets, net of depreciation at year end.

Additional information on the Board’s capital assets can be found in Note III.A.5. to the financial statements. Debt Outstanding The Board is limited by North Carolina General Statutes with regards to the types of debt it can issue and for what purpose that debt can be used. The County holds virtually all debt issued for school capital construction. Readers desiring more detailed information on the district’s long-term debt/obligation activity associated with school bus installment purchases should see Note III.B.10 to the financial statements.

$104,678,497, 57%$68,325712, 37%

$31,408, 0% $10,586,928, 6%

2015

Instructional services System‐wide support services Ancillary services Non‐program charges

6/30/2016 6/30/2015 6/30/2016 6/30/2015 6/30/2016 6/30/2015

Land 26,082,299$ 26,242,571$ -$ -$ 26,082,299$ 26,242,571$ Construction in progress 24,152,477 14,736,914 - - 24,152,477 14,736,914 Land improvements 17,367,501 18,206,203 - - 17,367,501 18,206,203 Buildings 794,656,699 813,204,444 92,874 95,716 794,749,573 813,300,160 Furniture and equipment 8,568,724 6,352,354 3,090,186 3,099,422 11,658,910 9,451,776 Vehicles 19,954,372 16,209,167 130,140 122,857 20,084,512 16,332,024

Total 890,782,072$ 894,951,653$ 3,313,200$ 3,317,995$ 894,095,272$ 898,269,648$


Table 3Summary of Capital Assets

as of June 30, 2016 and 2015


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Requests for Information

This report is intended to provide a summary of the financial condition of Guilford County Board of Education. Questions or requests for additional information should be addressed to:

Angela C. Henry, Chief Financial Officer or

Daphna Schwartz, Assistant Financial Officer Guilford County Board of Education

712 North Eugene Street P. O. Box 880

Greensboro, NC 27402-0880

BASIC FINANCIAL STATEMENTS

The basic financial statements for Guilford County Board of Education (the “Board”) consist of both government-wide and fund financial statements of the Board. The Board has elected to include budgetary comparisons for the General Fund and annually adopted major special revenue funds as part of the fund financial statements.

Exhibit 1

Governmental Business-TypeActivities Activities Total

ASSETSCurrent assets:

Cash and cash equivalents 25,267,766$ 10,779,160$ 36,046,926$ Receivables:

Due from other governments 16,017,484 1,477,585 17,495,069 Other 1,557,126 45,354 1,602,480

Internal balances 732,577 (732,577) - Inventories 968 691,754 692,722

Total current assets 43,575,921 12,261,276 55,837,197

Non-current assets:Deposits 3,062,590 - 3,062,590

Capital assets:Land and construction in progress 50,234,776 - 50,234,776 Other capital assets, net 840,547,296 3,313,200 843,860,496

Total non-current assets 893,844,662 3,313,200 897,157,862

Total assets 937,420,583 15,574,476 952,995,059

DEFERRED OUTFLOWS OF RESOURCESPension related deferrals 35,114,035 946,872 36,060,907

LIABILITIESCurrent liabilities:

Accounts payable 8,201,646 192,304 8,393,950 Accrued salaries and related payables 16,003,804 328,298 16,332,102 Unearned revenues 1,676,673 324,816 2,001,489 Current portion of long-term obligations 3,395,393 286,817 3,682,210

Total current liabilities 29,277,516 1,132,235 30,409,751

Non-current liabilities:Non-current portion of long-term obligations 35,530,245 818,542 36,348,787 Net pension liability 109,233,355 2,945,546 112,178,901

Total liabilities 174,041,116 4,896,323 178,937,439

DEFERRED INFLOWS OF RESOURCESPension related deferrals 26,125,847 704,499 26,830,346

NET POSITIONNet investment in capital assets 889,705,268 3,313,200 893,018,468 Restricted:

Stabilization by State Statute 3,459,799 - 3,459,799 Capital projects 2,962,932 - 2,962,932 Individual schools 3,404,591 - 3,404,591

Unrestricted (deficit) (127,164,935) 7,607,326 (119,557,609)

Total net position 772,367,655$ 10,920,526$ 783,288,181$

GUILFORD COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITIONJune 30, 2016

The accompanying notes are an integral part of this statement.

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Operating CapitalCharges Grants and Grants and

Activities/Functions Expenses for Services Contributions Contributions

GOVERNMENTAL ACTIVITIESInstructional services:

Regular instructional 275,067,525$ 165,630$ 229,282,605$ -$ Special populations 79,953,989 - 71,791,985 - Alternative programs 37,311,479 - 35,445,663 - School leadership 34,690,394 - 21,857,139 - Co-curricular 14,238,056 5,083,465 5,266,229 - School-based support 36,837,297 - 24,865,653 -

Total instructional services 478,098,740 5,249,095 388,509,274 - System-wide support services:

Support and development 7,146,676 - 3,966,727 - Special population support and development 5,122,599 - 3,309,686 - Alternative programs and services support and development 5,606,372 - 5,537,578 - Technology support 8,409,397 - 397,919 - Operational support 87,199,057 - 43,621,471 1,120,332 Financial and human resource 9,352,070 - 1,271,842 - Accountability 1,735,933 - 418,860 - System-wide pupil support 1,049,651 - 76,202 - Policy, leadership and public relations 5,659,630 - 2,325,106 -

Ancillary services 158,689 - 121,341 - Non-program charges 13,851,504 3,732,195 1,226,334 - Unallocated depreciation expense 26,511,087 - - -

Total system-wide support services 171,802,665 3,732,195 62,273,066 1,120,332

Total governmental activities 649,901,405 8,981,290 450,782,340 1,120,332

BUSINESS-TYPE ACTIVITIESSchool Food Service 41,074,138 6,426,749 35,788,254 19,000 After School Care Enrichment Services 6,321,745 6,555,607 - -

Total business-type activities 47,395,883 12,982,356 35,788,254 19,000

Total government-wide 697,297,288$ 21,963,646$ 486,570,594$ 1,139,332$

GENERAL REVENUESUnrestricted county appropriations - operatingUnrestricted county appropriations - capitalInvestment earnings, unrestrictedMiscellaneous, unrestricted

TRANSFERS

Total general revenues and tranfsers

Change in net position

NET POSITIONBeginning of year

End of year

Program Revenues

GUILFORD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES Year Ended June 30, 2016


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Exhibit 2

Governmental Business-Type Activities Activities Total

(45,619,290)$ -$ (45,619,290)$ (8,162,004) - (8,162,004) (1,865,816) - (1,865,816)

(12,833,255) - (12,833,255) (3,888,362) - (3,888,362)

(11,971,644) - (11,971,644)

(84,340,371) - (84,340,371)

(3,179,949) - (3,179,949) (1,812,913) - (1,812,913)

(68,794) - (68,794) (8,011,478) - (8,011,478)

(42,457,254) - (42,457,254) (8,080,228) - (8,080,228) (1,317,073) - (1,317,073)

(973,449) - (973,449) (3,334,524) - (3,334,524)

(37,348) - (37,348) (8,892,975) - (8,892,975)

(26,511,087) - (26,511,087)

(104,677,072) - (104,677,072)

(189,017,443) - (189,017,443)

- 1,159,865 1,159,865 - 233,862 233,862

- 1,393,727 1,393,727

(189,017,443) 1,393,727 (187,623,716)

183,360,398 - 183,360,398 24,975,538 - 24,975,538

58,585 12,689 71,274 4,527,980 47,899 4,575,879

(32,466) 32,466 -

212,890,035 93,054 212,983,089

23,872,592 1,486,781 25,359,373

748,495,063 9,433,745 757,928,808

772,367,655$ 10,920,526$ 783,288,181$

and Changes in Net PositionNet (Expenses) Revenues

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Exhibit 3

Capital Non-major TotalGeneral State Public Individual Outlay Governmental Governmental

Fund School Fund Schools Fund Fund Funds Funds

ASSETS Cash and cash equivalents 18,021,198$ -$ 3,516,383$ 3,026,508$ 703,677$ 25,267,766$ Receivables:

Due from other governments 855,081 8,475,277 - 5,683,167 1,003,959 16,017,484 Other - - 286,801 4,634 1,265,691 1,557,126

Due from other funds 855,229 - - - 308,882 1,164,111 Inventories 968 - - - - 968 Self-funded insurance deposits 3,062,590 - - - - 3,062,590

Total assets 22,795,066$ 8,475,277$ 3,803,184$ 8,714,309$ 3,282,209$ 47,070,045$

LIABILITIESAccounts payable 2,450,269$ -$ -$ 5,751,377$ -$ 8,201,646$ Accrued salaries and related payables 6,510,837 8,459,821 - - 1,033,146 16,003,804 Unearned revenues - 15,456 - - 1,661,217 1,676,673 Due to other funds 32,466 - 398,593 - 475 431,534

Total liabilities 8,993,572 8,475,277 398,593 5,751,377 2,694,838 26,313,657

FUND BALANCES Nonspendable:

Inventories 968 - - - - 968 Self-insurance deposits 3,062,590 - - - - 3,062,590

Restricted:Stabilization by State Statute 3,459,799 - - - - 3,459,799 Capital projects - - - 2,962,932 - 2,962,932 Individual schools - - 3,404,591 - - 3,404,591

Committed: Red Light Camera Program 3,752,693 - - - - 3,752,693 Buses 88,877 - - - - 88,877 PACE Project - - - - 587,371 587,371

Assigned:Subsequent year's budget 1,207,241 - - - - 1,207,241

Unassigned 2,229,326 - - - - 2,229,326

Total fund balances 13,801,494 - 3,404,591 2,962,932 587,371 20,756,388

Total liabilities and fund balances 22,795,066$ 8,475,277$ 3,803,184$ 8,714,309$ 3,282,209$ 47,070,045$

Reconciliation of the Balance Sheet to the Statement of Net Position

Amounts reported for governmental activities in The Statement of Net Position are different because:Total fund balances - governmental funds 20,756,388$

Net capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. 890,782,072

Deferred outflows of resources related to pensions 35,114,035

Long-term liabilities are not due and payable in the current period and therefore are not reported asliabilities in the funds. Long-term liabilities at year end consist of the following:

Installment purchases (1,076,804) Compensated absences payable (36,210,739) Net pension liability (109,233,355) Deferred inflows of resources related to pensions (26,125,847) Claims liabilities for retained risks (1,638,095)

Total net position - governmental activities 772,367,655$

GUILFORD COUNTY BOARD OF EDUCATION BALANCE SHEET - GOVERNMENTAL FUNDS June 30, 2016

Major Funds


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Exhibit 4Page 1 of 2

Capital Non-major TotalGeneral State Public Individual Outlay Governmental Governmental

Fund School Fund Schools Fund Fund Funds Funds

REVENUESState of North Carolina -$ 385,703,682$ -$ 1,123,526$ 3,848,806$ 390,676,014$ Guilford County 183,360,398 - - 24,975,538 - 208,335,936 U. S. Government agencies - - - - 50,219,358 50,219,358 Other 2,857,001 - 10,345,850 1,892,000 9,480,305 24,575,156

Total revenues 186,217,399 385,703,682 10,345,850 27,991,064 63,548,469 673,806,464

EXPENDITURESCurrent:

Instructional services 105,780,387 337,955,203 9,949,692 - 45,291,681 498,976,963 System-wide support services 66,905,071 47,629,406 - - 17,004,618 131,539,095 Ancillary services 41,702 119,073 - - 2,268 163,043 Non-program charges 12,601,602 - - - 1,249,902 13,851,504

Debt service:Principal - - - 1,120,332 - 1,120,332

Capital outlay - - - 27,268,255 - 27,268,255

Total expenditures 185,328,762 385,703,682 9,949,692 28,388,587 63,548,469 672,919,192

Revenues over (under) expenditures 888,637 - 396,158 (397,523) - 887,272

OTHER FINANCING SOURCES (USES)Installment purchase obligations issued - - - 2,156,025 - 2,156,025 Transfer from (to) other funds (111,835) - - 79,369 - (32,466)

Net change in fund balances 776,802 - 396,158 1,837,871 - 3,010,831

FUND BALANCESBeginning of year 13,055,202 - 3,008,433 1,125,061 587,371 17,776,067 Decrease in reserve for inventories (30,510) - - - - (30,510)

End of year 13,801,494$ -$ 3,404,591$ 2,962,932$ 587,371$ 20,756,388$

Major Funds


IN FUND BALANCES - GOVERNMENTAL FUNDS Year Ended June 30, 2016

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

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Reconciliation of the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances to the government-wide Statement of Activities:

Net change in fund balances - governmental funds 3,010,831$

Amounts reported for governmental activities in the Statement of Activities are different because:

Capital outlays to purchase or build capital assets are reported in governmentalfunds as expenditures. However, for governmental activities those costs areshown in the Statement of Net Position and allocated over their estimated usefullives as annual depreciation expense in the Statement of Activities. This is theamount by which depreciation exceeded capital outlays for the year:

Depreciation expense (30,062,853)$ Capital outlays 27,733,719 (2,329,134)

Loss on disposal of capital assets (1,840,448)

Principal payments on installment purchase net of issuances (1,035,693)

Decrease in compensated absences payable 1,835,831

Increase in estimated liabilities for retained risks (205,223)

Contributions to the pension plan in the current fiscal year are notincluded on the Statement of Activities 34,589,917

Pension expense (10,122,979)

Decrease in reserve for inventories (30,510)

Change in net position of governmental activities 23,872,592$

GUILFORD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGESIN FUND BALANCES - GOVERNMENTAL FUNDS Year Ended June 30, 2016


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Final to ActualOriginal Final Actual Original to Final

REVENUESGuilford County 183,360,398$ 183,360,398$ 183,360,398$ -$ -$ Other 3,878,743 3,878,743 2,857,001 - (1,021,742)

Total revenues 187,239,141 187,239,141 186,217,399 - (1,021,742)


Instructional services 103,874,905 107,274,356 105,780,387 (3,399,451) 1,493,969 System-wide support services 72,397,234 66,708,928 66,905,071 5,688,306 (196,143) Ancillary services 25,024 154,238 41,702 (129,214) 112,536 Non-program charges 10,941,978 13,507,096 12,601,602 (2,565,118) 905,494

Total expenditures 187,239,141 187,644,618 185,328,762 (405,477) 2,315,856

Revenues over (under) expenditures - (405,477) 888,637 (405,477) 1,294,114

OTHER FINANCING USESTransfers to other funds - - (111,835) - (111,835)

APPROPRIATED FUND BALANCE - 405,477 - 405,477 (405,477)

Net change in fund balance -$ -$ 776,802 -$ 776,802$

FUND BALANCEBeginning of year 13,055,202 Decrease in reserve for inventories (30,510)

End of year 13,801,494$

Variances


GENERAL AND STATE PUBLIC SCHOOL FUNDS Year Ended June 30, 2016

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -

General Fund

Budgeted Amounts


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Exhibit 5 Page 2 of 2

Final to ActualOriginal Final Actual Original to Final

REVENUESState of North Carolina 380,230,099$ 399,906,423$ 385,703,682$ 19,676,324$ (14,202,741)$

Total revenues 380,230,099 399,906,423 385,703,682 19,676,324 (14,202,741)


Instructional services 339,303,454 351,123,496 337,955,203 (11,820,042) 13,168,293 System-wide support services 40,861,617 48,655,790 47,629,406 (7,794,173) 1,026,384 Ancillary services 65,028 127,137 119,073 (62,109) 8,064

Total expenditures 380,230,099 399,906,423 385,703,682 (19,676,324) 14,202,741

Net change in fund balance -$ -$ - -$ -$

FUND BALANCEBeginning of year -

End of year -$

Variances


GENERAL AND STATE PUBLIC SCHOOL FUNDS Year Ended June 30, 2016

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -

State Public School Fund

Budgeted Amounts


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Exhibit 6

School Food Non-majorService Fund Fund Total

ASSETS Current assets

Cash and cash equivalents 9,503,099$ 1,276,061$ 10,779,160$

ReceivablesFederal government 1,442,379 - 1,442,379 State of North Carolina 29,508 5,698 35,206 Due from other funds 32,466 - 32,466 Other 8,458 36,896 45,354

Total receivables 1,512,811 42,594 1,555,405

Inventories 691,754 - 691,754

Total current assets 11,707,664 1,318,655 13,026,319

Noncurrent assetsCapital assets 10,789,361 64,607 10,853,968 Accumulated depreciation (7,476,161) (64,607) (7,540,768)

Net capital assets 3,313,200 - 3,313,200

Total assets 15,020,864 1,318,655 16,339,519

DEFERRED OUTFLOWS OF RESOURCESPension related deferrals 728,601 218,271 946,872

LIABILITIESCurrent liabilities

Accounts payable 192,304 - 192,304 Accrued payroll and related liabilities 237,926 90,372 328,298 Unearned revenues 282,121 42,695 324,816 Due to other funds 711,718 53,325 765,043 Current portion of long-term obligations 258,217 28,600 286,817

Total current liabilities 1,682,286 214,992 1,897,278

Noncurrent liabilitiesNet pension liability 2,266,545 679,001 2,945,546 Noncurrent portion of long-term obligations 619,202 199,340 818,542

Total noncurrent liabilities 2,885,747 878,341 3,764,088


DEFERRED INFLOWS OF RESOURCESPension related deferrals 542,100 162,399 704,499

NET POSITIONInvestment in capital assets 3,313,200 - 3,313,200 Unrestricted 7,326,132 281,194 7,607,326

Total net position 10,639,332$ 281,194$ 10,920,526$

GUILFORD COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION - PROPRIETARY FUNDS June 30, 2016


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Exhibit 7


OPERATING REVENUESFood sales 6,426,749$ -$ 6,426,749$ After school enrichment fees - 6,510,245 6,510,245 Other - 45,362 45,362

Total operating revenues 6,426,749 6,555,607 12,982,356

OPERATING EXPENSESFood costs:

Purchased food 17,558,297 193,487 17,751,784 Donated commodities 2,396,871 - 2,396,871

Salaries and benefits 16,992,911 5,545,853 22,538,764 Materials and supplies 174,784 267,835 442,619 Depreciation 526,278 - 526,278 Contracted services 427,028 63,814 490,842 Indirect costs 2,236,606 174,932 2,411,538 Other 761,363 75,824 837,187

Total operating expenses 41,074,138 6,321,745 47,395,883

Operating income (loss) (34,647,389) 233,862 (34,413,527)

NONOPERATING REVENUES (EXPENSES)Federal reimbursements 33,392,018 - 33,392,018 Federal commodities 2,396,871 - 2,396,871 Other 47,899 - 47,899 Loss on disposal of equipment (635) - (635) Interest revenue 12,689 - 12,689

Total nonoperating revenues 35,848,842 - 35,848,842

Net income before transfers andcapital contributions 1,201,453 233,862 1,435,315

Transfer from other fund 32,466 - 32,466 Capital contributions 19,000 - 19,000

Change in net position 1,252,919 233,862 1,486,781

NET POSITIONBeginning of year 9,386,413 47,332 9,433,745

End of year 10,639,332$ 281,194$ 10,920,526$

GUILFORD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUNDS Year Ended June 30, 2016


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CASH FLOWS FROM OPERATING ACTIVITIESCash received from customers 6,520,993$ 6,599,331$ 13,120,324$ Cash paid for goods and services (20,876,987) (722,567) (21,599,554) Cash paid to employees for services (17,386,582) (5,615,568) (23,002,150)

Net cash provided (used) by operating activities (31,742,576) 261,196 (31,481,380)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

Federal reimbursements 33,717,950 - 33,717,950

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Acquisition of equipment (503,753) - (503,753)

CASH FLOWS FROM INVESTING ACTIVITIESInterest on investments 12,689 - 12,689

Net increase in cash and cash equivalents 1,484,310 261,196 1,745,506

CASH AND CASH EQUIVALENTS Beginning of year 8,018,789 1,014,865 9,033,654

End of year 9,503,099$ 1,276,061$ 10,779,160$

GUILFORD COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS Year Ended June 30, 2016


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RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH PROVIDED (USED) BY OPERATINGACTIVITIES:

Operating income (loss) (34,647,389)$ 233,862$ (34,413,527)$ Adjustments to reconcile operating income (loss) to net cashprovided (used) by operating activities:

Depreciation 526,278 - 526,278 Other revenue 47,899 - 47,899 Pension expense 334,903 95,633 430,536 Loss on disposal of equipment 635 - 635 Transfer from other fund 32,466 - 32,466 Donated commodities consumed 2,396,871 - 2,396,871 Change in assets, liabilities, deferred outflows and inflows:

Decrease in accounts receivable 1,152 24,984 26,136 Decrease in inventories 8,113 - 8,113 Deferred outflows - current year pension contributions (717,726) (215,013) (932,739) Increase in accounts payable 64,397 - 64,397 Increase (decrease) in accrued payroll and related liabilities (4,391) 20,140 15,749 Increase in unearned revenues 11,994 18,740 30,734 Increase in due to other funds 241,650 53,325 294,975 Increase in due from other funds 733 - 733 Increase (decrease) in compensated absences payable (6,457) 17,206 10,749 Increase (decrease) in claims liabilities for retained risks (33,704) 12,319 (21,385)

Net cash provided (used) by operating activities (31,742,576)$ 261,196$ (31,481,380)$

NONCASH OPERATING AND NONCAPITAL FINANCINGACTIVITIES

Capital assets of $19,000 were donated to the School Food Service Fund.

Year Ended June 30, 2016

GUILFORD COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS

The School Food Service Fund consumed donated commodities with a value of $2,396,871 during the fiscal year. Theuse of these commodities is reflected as a nonoperating revenue and an operating expense on Exhibit 7.


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Exhibit 9

Private-PurposeTrusts

ASSETS

Cash and cash equivalents 965,829$

Total assets 965,829$

NET POSITION

Restricted:Expendable for scholarships 411,495$ Nonexpendable 554,334

Total net position 965,829$

GUILFORD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITIONJune 30, 2016


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Exhibit 10

Private-PurposeTrusts

ADDITIONSDonations 720$ Interest 2,073

Total additions 2,793

DEDUCTIONSScholarships and other 11,594

Change in net position (8,801)

NET POSITIONBeginning of year 974,630

End of year 965,829$

GUILFORD COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION Year Ended June 30, 2016


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GUILFORD COUNTY BOARD OF EDUCATION NOTES TO FINANCIAL STATEMENTS June 30, 2016

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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the Guilford County Board of Education conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant accounting policies:

A. Reporting Entity The Guilford County Board of Education (the “Board”) is a Local Education Agency empowered by Chapter

115C of the North Carolina General Statutes (“NCGS” or “G.S.”) with the responsibility to oversee and control all activities related to public school education in Guilford County, North Carolina. The Board receives local, state, and federal government funding and must adhere to the legal requirements of each funding entity.

The Board is governed by an eleven-member governing body elected by the citizens of Guilford County

(the “County”). The County provides approximately 31% of the total funding for the Board and has the authority to control how its funding is spent. However, beyond this, the County does not have legal authority over the Board’s budget. Accordingly, the Board is not considered to be a component unit of the County.

Government-Wide Statements: The Statement of Net Position and the Statement of Activities display

information about the Board. These statements include the financial activities of the overall government, except for fiduciary activities. Interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business-type activities of the Board. Governmental activities generally are financed through intergovernmental revenues and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for the

different business-type activities of the Board and for each function of the Board’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expense allocations that have been made in the funds have been reversed for the Statement of Activities. Program revenues include (a) fees and charges paid by the recipients of goods or services offered by the programs, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues.

Fund Financial Statements: The fund financial statements provide information about the Board’s funds, including its fiduciary funds. Separate statements for each fund category - governmental, proprietary and fiduciary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. The fiduciary funds are presented separately.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions

associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities. Operating expenses for the proprietary funds include all costs of operations such as costs of sales, salaries and benefits, materials and supplies, depreciation, contracted services, indirect costs, loss on disposal of capital assets and other miscellaneous operating expenses. Any expenses not meeting this definition are reported as nonoperating expenses.


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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation The Board reports the following major governmental funds: General Fund - The General Fund is the general operating fund of the Board. The General Fund

accounts for all financial resources except those that are required to be accounted for in another fund. This fund is the “Local Current Expense Fund,” which is mandated by state law [G. S. 115C-426].

State Public School Fund - The State Public School Fund includes appropriations from the Department

of Public Instruction for the current operating expenditures of the public school system. Individual Schools Fund - The Individual Schools Fund includes revenues and expenditures of the

activity funds of the individual schools. The primary revenue sources include funds held on behalf of various clubs and organizations, receipts from athletic events, and proceeds from various fund raising activities. The primary expenditures are for athletic teams, club programs, activity buses and instructional needs.

Capital Outlay Fund - The Capital Outlay Fund accounts for financial resources to be used for the

acquisition and construction of major capital facilities (other than those financed by proprietary funds and trust funds). It is mandated by state law [G. S. 115C-426]. Capital projects are funded by County appropriations, restricted sales tax monies, proceeds from the County bonds issued for public school construction, lottery proceeds, as well as certain state assistance.

The Board reports the following major enterprise fund: School Food Service Fund - The School Food Service Fund is used to account for the food service

program within the school system. The Board reports the following fiduciary funds: Private-Purpose Trusts - Private-Purpose Trust Funds are accounted for in a manner similar to proprietary

funds. The Board has eleven such funds: the E. P. Pearce, Jr. Scholarship Trust Fund, the Elizabeth Hanner Holt Scholarship Trust Fund, the Bill Vielkanowitz Scholarship Fund, the Southeast High School Scholarship Fund, the A. B. Hunter Scholarship Fund, the Nathanael Greene Scholarship Fund, the Ora Sublett Scholarship Fund, the Hanner Scholarship Fund, the Ben L. Smith Scholarship Fund, the Dr. Randall S. Brooks, Sr. Preschool Handicapped Fund, and the Violet G. Hutchens Music Fund. The Ben L. Smith Scholarship Fund, funded by private contributions, was established by the Board to recognize and honor professional staff members and to help make possible further study for worthy staff members. The Dr. Randall S. Brooks, Sr. Preschool Handicapped Fund is funded by private contributions and is to be used to purchase items and provide services that are not covered by federal and state monies for students in the preschool handicapped program. The Violet G. Hutchens Music Fund, funded by private contributions, is to be used for musical training and the purchase of musical instruments and supplies at Johnson Street Elementary, Oak Hill Elementary, Ferndale Middle, and High Point Central High School. Nonexpendable principal assets in the eight remaining Scholarship Funds of $10,190, $61,000, $18,870, $6,000, $10,000, $8,106, $220,000 and $220,168, respectively, are maintained in these funds, the earnings of which are used to fund scholarship grants for graduating seniors.


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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus and Basis of Accounting Government-Wide, Proprietary and Fiduciary Fund Financial Statements. The government-wide,

proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Non-exchange transactions, in which the Board gives (or receives) value without directly receiving (or giving) equal value in exchange, include grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

Governmental Fund Financial Statements. Governmental funds are reported using the current

financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The Board considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year end. These could include federal, state, and county grants, and some charges for services. Expenditures are recorded when the related fund liability is incurred, except for claims and judgments and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Acquisitions under capital leases are reported as other financing sources. Payments made under capital leases are also reported as expenditures.

Under the terms of grant agreements, the Board funds certain programs by a combination of specific cost-reimbursement grants and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net position available to finance the program. It is the Board’s policy to first apply cost-reimbursement grant resources to such programs and then general revenues.

All governmental and business-type activities and enterprise funds of the Board follow FASB Statements and Interpretations issued on or before November 30, 1989, Accounting Principles Board Opinions, and Accounting Research Bulletins, unless those pronouncements conflict with GASB pronouncements.

D. Budgetary Data

The Board’s budgets are adopted as required by the North Carolina General Statutes. Annual budgets are adopted for all funds, except for the individual schools’ special revenue funds and trust funds, as required by North Carolina General Statutes. Per State law no budget is required for individual school funds. All appropriations lapse at fiscal year-end. All budgets are prepared using the modified accrual basis of accounting. Expenditures may not legally exceed appropriations at the purpose level for all annually budgeted funds. The Finance Officer, with the approval of the Superintendent, is authorized by the governing board to transfer monies not to exceed 10% between functions of the same fund. Such transfers must be reported to the governing board at its next regular meeting. Transfers in excess of this amount or transfers between funds require governing board approval. Amendments which alter the county appropriation or transfer monies to or from the Capital Outlay Fund also require the approval of the Guilford County Board of Commissioners.

A budget calendar is included in G. S. 115C, Article 31, and prescribes the last day on which certain steps of the budget procedure are to be performed. The following schedule lists the tasks to be performed and the date each is required to be completed.


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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. Budgetary Data

May 1 The Superintendent must submit the budget request along with a copy of the budget message to the Board of Education not later than May 1.

May 15 The Board of Education should make changes, if necessary, to the budget request as submitted by the Superintendent and forward an approved budget request to the Board of County Commissioners not later than May 15, unless the County Commissioners have established a later date.

July 1 The Board of County Commissioners must complete its actions on the school budget not later than July 1, unless a later date is agreed upon between the Board of Education and the County Commissioners.

Month of July The Board of Education must adopt its balanced budget resolution after the Board of County

Commissioners has decided upon the amount of appropriations to be provided by the County or after the appeal procedures as set forth in state law [G.S. 115C-431].

E. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position/Fund Balances

1. Deposits and Investments

All deposits of the Board are made in board-designated official depositories and are secured as required by state law [G. S. 115C-444]. The Board may designate, as an official depository, any bank or savings association whose principal office is located in North Carolina. Also, the Board may establish time deposit accounts such as NOW and SuperNOW accounts, money market accounts, and certificates of deposit. The Board also has money credited in its name with the State Treasurer and may issue state warrants against these funds.

State law [G. S. 115C-443] authorizes the Board to invest in obligations of the United States or obligations fully guaranteed both as to principal and interest by the United States; obligations of the state of North Carolina; bonds and notes of any North Carolina local government or public authority; obligations of certain non-guaranteed federal agencies; certain high quality issues of commercial paper and bankers’ acceptances; the North Carolina Capital Management Trust (NCCMT), an SEC-registered (2a-7) money market mutual fund; and the North Carolina State Treasurer’s Short-Term Investment Fund (STIF).

The STIF is managed by the staff of the Department of State Treasurer and operated in accordance with state laws and regulations. It is not registered with the SEC. It consists of an internal portion and an external portion in which the Board participates. Investments are restricted by state law to those enumerated in G. S. 147-69.1.

The Board’s investments are reported at amortized cost or at fair value determined by either quoted market prices or a matrix pricing model. Bank deposits and the NCCMT are measured at amortized cost, which is the NCCMT’s share price. The STIF securities are reported at cost and maintain a constant $1 per share value. Under the authority of G. S. 147-69.3, no unrealized gains or losses of the STIF are distributed to external participants of the fund.


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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position/Fund balances

2. Cash and Cash Equivalents

The Board pools money from several funds to facilitate disbursement and investment and to maximize investment income. Therefore, all cash and investments are essentially demand deposits and are considered cash and cash equivalents.

3. Inventories Inventories are valued at cost using the first-in, first-out (FIFO) flow assumption. The inventories of the

Board’s General Fund consist of expendable supplies. Expendable supplies are recorded as expenditures when purchased. These inventories do not reflect current appropriable resources; therefore, an equivalent portion of fund balance is nonspendable.

Proprietary fund inventories consist of food and supplies and are recorded as expenses when

consumed. 4. Capital Assets Donated assets received prior to June 15, 2015 are recorded at their estimated fair value at the date of

donation or forfeiture. Donated capital assets received after June 15, 2015 are recorded at acquisition value. All other capital assets are recorded at original cost. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets.

It is the policy of the Board to capitalize all capital assets costing more than $5,000 with an estimated

useful life of two or more years. In addition, other items which are purchased and used in large quantities such as student desks and library books are capitalized. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives is not capitalized.

Capital assets are depreciated using the straight-line method over the following estimated useful

lives: Land improvements 15 to 20 years Buildings 20 to 45 years Equipment and furniture 10 to 15 years Vehicles 6 to 14 years Computer equipment 3 years Depreciation for buildings and equipment that serve multiple purposes cannot be allocated ratably

and is, therefore, reported separately as “depreciation expense” on the Statement of Activities.


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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position/Fund Balances

5. Deferred Outflows and Inflows of Resources In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflow of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The Board has two items that meet this criterion – a pension related deferral and contributions made to the pension plan in the current fiscal year. The Statement of Net Position also reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. The Board has pension related deferrals that meet this criterion.

6. Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are

reported as liabilities in the applicable governmental activities. 7. Compensated Absences The Board follows the state’s policy for vacation and sick leave. Employees may accumulate up to thirty

(30) days earned vacation leave with such leave being fully vested when earned. The Board’s liability for accumulated earned vacation and the salary-related payments as of June 30, 2016 is recorded in the government-wide and proprietary fund financial statements on the FIFO basis. An estimate has been made based on prior years’ records, of the current portion of compensated absences.

The sick leave policy of the Board provides for an unlimited accumulation of earned sick leave. Sick

leave does not vest, but unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit purposes. Since the Board has no obligation for accumulated sick leave until it is actually taken, no accrual for sick leave has been made.

8. Net Position/Fund Balances Net Position Net position in the government-wide and proprietary fund financial statements are classified as net

investment in capital assets; restricted; and unrestricted. Restricted net position represents constraints on resources that are either externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments, or imposed by law through state statute.

Fund Balances In the governmental fund financial statements, fund balances are composed of five classifications

designed to disclose the hierarchy of constraints placed on how each fund’s fund balance can be spent.

The governmental fund types classify fund balances as follows:

Nonspendable Fund Balance – This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Inventories - portion of fund balance that is not an available resource because it represents the year-end balance or ending inventories, which are not spendable resources


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8. Net Position/Fund Balances

Nonspendable Fund Balance Self-insurance deposits - portion of fund balance that is not an available resource because it represents the year-end balance of deposits on hand with the Local Government Excess Liability Fund, Inc. and the Local Government Property Insurance Deductible Fund, Inc. to provide reserves for the Board’s retained risks.

Restricted Fund Balance – This classification includes amounts that are restricted to specific purposes externally imposed by creditors or imposed by law.

Restricted for Stabilization by State Statute - portion of fund balance that is restricted by State Statute [G.S. 115C-425(a)].

Restricted for Capital Projects - portion of fund balance that is restricted by State Statute for the construction or purchase of certain capital assets [G.S. 159-18 through 22]. Restricted for Individual Schools - revenue sources restricted for expenditures for the various clubs and organizations, athletic events, and various fund raising activities for which they were collected.

Committed Fund Balance – portion of fund balance that can only be used for specific purposes imposed by majority vote by quorum of the Board’s governing body (highest level of decision making authority) and in certain instances approval by the County’s governing body is required. Any changes or removal of specific purpose requires majority action by the governing bodies that approved the original action.

Red Light Camera Program - portion of fund balance that the Board has approved to use for capital outlay purposes.

Buses - portion of fund balance that the Board has approved to use for activity bus purchases. PACE Project - portion of fund balance that the Board has approved to use to sustain the PACE project for an additional year beyond the federal grant funding.

Assigned Fund Balance – portion of fund balance that the Board intends to use for specific purposes.

Subsequent year’s budget - portion of fund balance that is appropriated in the next year’s budget. The governing body approves the appropriation.

Unassigned Fund Balance – the portion of fund balance that has not been restricted, committed, or assigned to specific purposes or other funds. The General Fund is the only fund that can report a positive unassigned fund balance.


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9. Reconciliation of Government-wide and Fund Financial Statements

a. Explanation of certain differences between the governmental-type Balance Sheet and the government-wide Statement of Net Position.

The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government-wide Statement of Net Position. The net adjustment of $751,611,267 consists of the following elements:

Description Amount

Capital assets used in governmental activities are not financial resources and are therefore not reported in the funds (total capital assets on government-wide statement in governmental activities column) $ 1,306,126,333

Less accumulated depreciation 415,344,261 Net capital assets 890,782,072 Pension related deferred outflows of resources Contributions made to the pension plan in current fiscal year 34,589,917 Differences between contributions and proportional share Of contributions and changes in proportion 524,118

Liabilities that are not due and payable in the current period, and therefore do not require current resources to pay, are not recorded in the funds (long-term liabilities on government-wide statements in governmental activities column)

Installment purchases (1,076,804) Compensated absences (36,210,739) Net pension liability (109,233,355) Claims liabilities for retained risks (1,638,095)

Deferred inflows of resources related to pensions Differences between expected and actual experience (12,419,812) Changes in proportion and difference between employer contributions and proportionate share of contributions (1,871,523)

Difference between projected and actual earnings on plan investments (11,834,512)

Net adjustment $ 751,611,267


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9. Reconciliation of Government-wide and Fund Financial Statements

b. Explanation of certain differences between the governmental-type Statement of Revenues, Expenditures and Changes in Fund Balances and the government-wide Statement of Activities.

The governmental fund statement of revenues, expenditures and changes in fund balance includes a reconciliation between net changes in fund balances – total governmental funds and changes in net position – governmental activities as reported in the government-wide Statement of Activities. The net adjustment of $20,861,761 consists of the following elements:

Description Amount

Capital expenditures recorded in the fund statements but capitalized as assets in the Statement of Activities $ 27,733,719

Depreciation expense, the allocation of those assets over

their useful lives, is recorded on the Statement of Activities but not in the fund statements (30,062,853)

Loss on disposal of capital assets (1,840,448)

Increase in estimated liabilities for retained risks (205,223)

Decrease in reserve for inventories (30,510) New debt issued during the year is recorded as a source of

funds on the fund statements; it has no effect on the Statement of Activities – it affects only the government-wide Statement of Net Position (2,156,025)

Principal payments on debt owed are recorded as a use of

funds on the fund statements but again affect only the Statement of Net Position in the government-wide statements 1,120,332

Contributions to the pension plan in the current fiscal year

are not included on the Statement of Activities 34,589,917

Expenses reported in the Statement of Activities that do not require the use of current resources to pay are not recorded as expenditures in the fund statements

Pension expense (10,122,979)

Compensated absences 1,835,831

Net adjustment $ 20,861,761


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E. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position/Fund Balances 10. Defined Benefit Pension Plans

For purposes of measuring the net pension asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Teachers’ and State Employees’ Retirement System (TSERS) and additions to/deductions from TSERS’ fiduciary net position have been determined on the same basis as they are reported by TSERS. For this purpose, plan member contributions are recognized in the period in which the contributions are due. The Board’s employer contributions are recognized when due and the Board has a legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of TSERS. Investments are reported at fair value.

II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

A. Excess of Expenditures over Appropriations

During the fiscal year ended June 30, 2016, the Board reported expenditures in excess of the final amended budget in the amount of $196,143 at the function level for System-wide support services and transfers to other funds in the amount of $111,835. These amounts were not anticipated in the final budget amendment.

III. DETAIL NOTES ON ALL FUNDS

A. Assets

1. Deposits

All of the Board’s deposits are either insured or collateralized by using one of two methods. Under the Dedicated Method, all deposits exceeding the federal depository insurance coverage level are collateralized with securities held by the Board’s agent in the unit’s name. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the State Treasurer’s agent in the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the Board, these deposits are considered to be held by the agent in the entity’s name. The amount of the pledged collateral is based on an approved averaging method for non-interest-bearing deposits and the actual current balance for interest-bearing deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the Board or the escrow agent. Because of the inability to measure the exact amount of collateral pledged for the Board under the Pooling Method, the potential exists for undercollateralization, and this risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method. The Board has no policy regarding custodial credit risk for deposits.

At June 30, 2016, the Board had deposits with banks with a carrying amount of $26,288,294. The bank balances with financial institutions and the State Treasurer were $33,405,871 and $1,728,547, respectively. Of the bank balance, $3,662,042 was covered by federal depository insurance and $31,472,376 was covered by collateral held by authorized escrow agents in the name of the State Treasurer.


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III. DETAIL NOTES ON ALL FUNDS (Continued)

A. Assets 2. Investments

Investment balances on June 30, 2016 were as follows:

Valuation Measurement Fair Investment Type Method Value Maturity Rating

NC Capital Management Amortized Trust – Cash Portfolio Cost $ 6,394,865 N/A AAAm Department of State Treasurer Short Term Fair Value Duration of 1.5 Investment Fund Level 2 $ 4,329,596 years Unrated

$ 10,724,461 3. General Fund Inventories

General Fund inventories on June 30, 2016 consist of expendable supplies in the amount of $968.

4. Accounts Receivable

Receivables at the government-wide level on June 30, 2016 were as follows: Due from Other Governments Other Governmental activities: General $ 855,081 $ - Other 15,162,403 1,557,126

$ 16,017,484 $ 1,557,126 Business-type activities: School Food Service Program $ 1,471,887 $ 8,458 After School Care Enrichment Services Program 5,698 36,896

$ 1,477,585 $ 45,354 Due from other governments consists of the following: Governmental activities: General Fund $ 855,081 Sales tax; fines and forfeitures Capital Outlay Fund 5,683,167 Appropriations from county, sales tax

State Public School Fund 8,475,277 Longevity from NCDPI; sales tax Federal Grants Fund 1,003,959 Federal funds through NCDPI; sales tax

$ 16,017,484 Business-type activities: School Food Service Program $ 1,471,887 USDA reimbursements; sales tax After School Care Program 5,698 Sales tax

$ 1,477,585


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III. DETAIL NOTES ON ALL FUNDS (CONTINUED)

A. Assets

5. Capital Assets

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

Beginning Ending Balances Increases Decreases Balances

Governmental activities: Capital assets not being depreciated: Land $ 26,242,571 $ - $ (160,272) $ 26,082,299 Construction in progress 14,736,914 23,435,592 (14,020,029) 24,152,477

Total capital assets not being depreciated 40,979,485 $ 23,435,592 $ (14,180,301) 50,234,776

Capital assets being depreciated: Land improvements 37,537,869 $ 776,853 $ - 38,314,722 Buildings 1,133,363,833 7,909,193 (1,818,756) 1,139,454,270 Equipment and furniture 19,197,800 3,427,914 (1,384,226) 21,241,488 Vehicles 51,782,364 6,204,196 (1,105,483) 56,881,077

Total capital assets being depreciated 1,241,881,866 $ 18,318,156 $ (4,308,465) 1,255,891,557

Less accumulated depreciation for: Land improvements 19,331,665 $ 1,615,556 $ - 20,947,221 Buildings 320,159,390 24,895,531 (257,350) 344,797,571 Equipment and furniture 12,845,446 1,092,774 (1,265,456) 12,672,764 Vehicles 35,573,197 2,458,992 (1,105,484) 36,926,705

Total accumulated depreciation 387,909,698 $ 30,062,853 $ (2,628,290) $ 415,344,261

Total capital assets being depreciated, net 853,972,168 840,547,296

Governmental activity capital assets, net $ 894,951,653 $ 890,782,072

Business-type activities: School Food Service Fund: Capital assets being depreciated: Buildings $ 127,859 $ - $ - $ 127,859 Equipment and furniture 10,235,552 481,138 (360,090) 10,356,600 Vehicles 263,922 40,980 - 304,902

Total capital assets being depreciated 10,627,333 $ 522,118 $ (360,090) 10,789,361

Less accumulated depreciation for: Buildings 32,143 $ 2,842 $ - 34,985 Equipment and furniture 7,136,130 489,739 (359,455) 7,266,414 Vehicles 141,065 33,697 - 174,762

Total accumulated depreciation 7,309,338 $ 526,278 $ (359,455) 7,476,161

School Food Service capital assets, net 3,317,995 3,313,200


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III. DETAIL NOTES ON ALL FUNDS (CONTINUED) A. Assets 5. Capital Assets Beginning Ending Balances Increases Decreases Balances Business-type activities (continued): Other programs: Capital assets being depreciated: Vehicles $ 64,607 $ - $ - $ 64,607 Less accumulated depreciation for: Vehicles 64,607 - - 64,607 Other enterprise funds capital assets, net - $ - $ - - Business-type activities capital assets, net $ 3,317,995 $ 3,313,200 Depreciation was charged to governmental functions as follows: Unallocated $ 26,511,087 Operation support 2,458,992 Financial and human resource 1,092,774 $ 30,062,853 B. Liabilities

1. Pension Plan and Other Postemployment Obligations

a. Teachers' and State Employees' Retirement System

Plan Description. The Board is a participating employer in the statewide Teachers’ and State Employees’ Retirement System (TSERS), a cost-sharing multiple-employer defined benefit pension plan administered by the state of North Carolina. TSERS membership is comprised of employees of the state (state agencies and institutions), universities, community colleges, and certain proprietary component units along with the employees of Local Education Agencies and charter schools. Article 1 of G.S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management of the plan is vested in the TSERS Board of Trustees, which consists of 13 members – nine appointed by the Governor, one appointed by the State Senate, one appointed by the State House of Representatives, and the State Treasurer and State Superintendent, who serve as ex-officio members. The Teachers’ and State Employees’ Retirement System is included in the Comprehensive Annual Financial Report (CAFR) for the state of North Carolina. The state’s CAFR includes financial statements and required supplementary information for TSERS. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, by calling (919) 981-5454, or at www.osc.nc.gov.


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III. DETAIL NOTES ON ALL FUNDS (CONTINUED) B. Liabilities



Benefits Provided. TSERS provides retirement and survivor benefits. Retirement benefits are determined as 1.82% of the member’s average final compensation times the member’s years of creditable service. A member’s average final compensation is calculated as the average of a member’s four highest consecutive years of compensation. General employee plan members are eligible to retire with full retirement benefits at age 65 with five years of creditable service (or 10 years of creditable service for members joining TSERS on or after August 1, 2011), at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. General employee plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service (or 10 years of creditable service for members joining TSERS on or after August 1, 2011). Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last day of service and who have either completed 20 years of creditable service regardless of age or have completed five years of service and have reached age 60 (10 years for members joining on or after August 1, 2011). Eligible beneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the member’s contributions. The plan does not provide for automatic post-retirement benefit increases. Increases are contingent upon actuarial gains of the plan. TSERS plan members who are LEOs are eligible to retire with full retirement benefits at age 55 with five years of creditable service as an officer (or 10 years of creditable service for members joining TSERS on or after August 1, 2011), or at any age with 30 years of creditable service. LEO plan members are eligible to retire with partial retirement benefits at age 50 with 15 years of creditable service as an officer. Survivor benefits are available to eligible beneficiaries of LEO members who die while in active service or within 180 days of their last day of service and who also have either completed 20 years of creditable service regardless of age, or have completed 15 years of service as a LEO and have reached age 50, or have completed five years of creditable service as a LEO and have reached age 55, or have completed 15 years of creditable service as a LEO if killed in the line of duty. Eligible beneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the member’s contributions. Contributions. Contribution provisions are established by General Statute 135-8 and may be amended only by the North Carolina General Assembly. Board employees are required to contribute 6% of their compensation. Employer contributions are actuarially determined and set annually by the TSERS Board of Trustees. The Board’s contractually required contribution rate for the year ended June 30, 2016, was 9.15% of covered payroll, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year. Contributions to the pension plan from the Board were $35,522,657 for the year ended June 30, 2016. Refunds of Contributions. Board employees who have terminated service as a contributing member of TSERS, may file an application for a refund of their contributions. By state law, refunds to members with at least five years of service include 4% interest. State law requires a 60 day waiting period after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual’s right to employer contributions or any other benefit provided by TSERS.


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1. Pension Plan and Other Postemployment Obligations a. Teachers' and State Employees' Retirement System Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions. At June 30, 2016, the Board reported a liability of $112,178,901 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2015. The total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of December 31, 2014. The total pension liability was then rolled forward to the measurement date of June 30, 2015 utilizing update procedures incorporating the actuarial assumptions. The Board’s proportion of the net pension liability was based on a projection of the Board’s long-term share of future payroll covered by the pension plan, relative to the projected future payroll covered by the pension plan of all participating TSERS employers, actuarially determined. At June 30, 2015 and at June 30, 2014, the Board’s proportion was 3.044% and 3.052%, respectively. For the year ended June 30, 2016, the Board recognized pension expense of $10,122,980. At June 30, 2016, the Board reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Outflows of Inflows of Resources Resources Change in proportion and differences between Board contributions and proportionate share of contributions $ 538,250 $ 1,921,990 Board contributions subsequent to the measurement date 35,522,657 - Differences between expected and actual experience - 12,754,720 Net difference between projected and actual earnings on pension plan investments - 12,153,636 Totals $ 36,060,907 $ 26,830,346

$35,522,657 reported as deferred outflows of resources related to pensions resulting from Board contributions subsequent to the measurement date will be recognized as a decrease of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year ending June 30:

2017 $ (14,945,895) 2018 (14,945,895) 2019 (14,525,467) 2020 18,125,123


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Actuarial Assumptions. The total pension liability in the December 31, 2014 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation 3.0 percent Salary increases 4.25 to 9.10 percent, including inflation and productivity factor Investment rate of return 7.25 percent, net of pension plan investment expense, including inflation

The plan currently uses mortality tables that vary by age, gender, employee group (i.e. general, law enforcement officer) and health status (i.e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a provision to reflect future mortality improvements. The actuarial assumptions used in the December 31, 2014 valuation were based on the results of an actuarial experience study for the period January 1, 2005 through December 31, 2009. Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not included in the measurement. The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections reflect current yields across the U.S. Treasury yield curve and market expectations of forward yields projected and interpolated for multiple tenors and over multiple year horizons. Global public equity return projections are established through analysis of the equity risk premium and the fixed income return projections. Other asset categories and strategies’ return projections reflect the foregoing and historical data analysis. These projections 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 by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 2015 are summarized in the following table:

Long-Term Target Expected Real Asset Class Allocation Rate of Return Fixed Income 29.0% 2.2% Global Equity 42.0% 5.8% Real Estate 8.0% 5.2% Alternatives 8.0% 9.8% Credit 7.0% 6.8% Inflation Protection 6.0% 3.4%

Total 100.0%


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1. Pension Plan and Other Postemployment Obligations a. Teachers' and State Employees' Retirement System

The information above is based on 30 year expectations developed with the consulting actuary for the 2014 asset liability and investment policy study for the North Carolina Retirement Systems, including TSERS. The long-term nominal rates of return underlying the real rates of return are arithmetic annualized figures. The real rates of return are calculated from nominal rates by multiplicatively subtracting a long-term inflation assumption of 3.19%. All rates of return and inflation are annualized. Discount Rate. The discount rate used to measure the total pension liability was 7.25%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Board’s Proportionate Share of the Net Pension Asset to Changes in the Discount Rate. The following presents the Board’s proportionate share of the net pension liability calculated using the discount rate of 7.25%, as well as what the Board’s proportionate share of the net pension asset or net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25%) or 1-percentage-point higher (8.25%) than the current rate:

1% Discount 1% Decrease Rate Increase (6.25%) (7.25%) (8.25%) Board’s proportionate share of the net pension liability (asset) $ 337,627,535 $ 112,178,901 $ (79,140,261)

Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued Comprehensive Annual Financial Report (CAFR) for the state of North Carolina.


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III. DETAIL NOTES ON ALL FUNDS (CONTINUED) B. Liabilities 2. Other Postemployment Benefits

a. Healthcare Benefits Plan Description. The postemployment healthcare benefits are provided through a cost-sharing multiple-employer defined benefit plan administered by the Executive Administrator and the Board of Trustees of the Comprehensive Major Medical Plan (the Plan). The Executive Administrator and the Board of Trustees of the Plan establishes premium rates except as may be established by the General Assembly in an appropriation act. The Plan's benefit and contribution provisions are established by Chapter 135-7, Article 1, and Chapter 135, Article 3 of the General Statutes and may be amended only by the North Carolina General Assembly. By General Statute, the Plan accumulates contributions from employers and any earnings on those contributions in the Retiree Health Benefit Fund. These assets shall be used to provide health benefits to retired and disabled employees and their applicable beneficiaries. These contributions are irrevocable. Also by law, these assets are not subject to the claims of creditors of the employers making contributions to the Plan.

The state of North Carolina issues a publicly available financial report that includes financial statements and required supplementary information for the State's Comprehensive Major Medical Plan (also, referred to as the State Health Plan). An electronic version of this report is available by accessing the North Carolina Office of the State Controller's Internet home page http://www.ncosc.net/ and clicking on "Financial Reports," or by calling the State Controller's Financial Reporting Section at (919) 981-5454. Funding Policy. The Comprehensive Major Medical Plan is administered by the Executive Administrator and Board of Trustees of the Plan, which establish premium rates except as may be established by the General Assembly in an appropriation act. The healthcare benefits for retired and disabled employees are the same as for active employees, except that the coverage becomes secondary when former employees become eligible for Medicare. For employees first hired on and after October 1, 2006, future coverage as retired employees is subject to the requirement that future retirees have 20 or more years of retirement service credit in order to receive coverage on a noncontributory basis. Employees first hired on and after October 1, 2006 with 10, but less than 20, years of retirement service credit are eligible for coverage on a partially contributory basis. For such retirees, the state will pay 50% of the State Health Plan's total noncontributory premium. For employees hired before October 1, 2006, healthcare benefits are provided to retirees (at no charge to the retirees) who have at least five years of contributing retirement membership prior to disability or retirement. In addition, persons who became surviving spouses of retirees prior to October 1, 1986, receive the same coverage as retirees at the state's expense.

Contributions are determined as a percentage of covered monthly payroll. Annually, the monthly contribution rates to the Plan, which are intended to finance benefits and administrative expenses on a pay-as-you-go basis, are determined by the General Assembly in the Appropriations Bill. For the fiscal years ended June 30, 2016, 2015 and 2014, the Board paid all annual required contributions to the Plan for postemployment healthcare benefits of $21,740,642, $21,807,136 and $21,042,536, respectively. These contributions represented 5.60%, 5.49% and 5.40% of covered payroll, respectively.


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III. DETAIL NOTES ON ALL FUNDS (CONTINUED) 2. Other Postemployment Benefits b. Long-Term Disability Benefits

Plan Description. Short-term and long-term disability benefits are provided through the Disability Income Plan of North Carolina (DIPNC), a cost-sharing, multiple-employer defined benefit plan. The DIPNC is administered by the Board of Trustees of the Teachers' and State Employees' Retirement System. Long-term disability benefits are payable as an other postemployment benefit from DIPNC after the conclusion of the short-term disability period or after salary continuation payments cease, whichever is later, for as long as an employee is disabled. Benefit and contribution provision are established by Chapter 135, Article 6, of the General Statutes and may be amended only by the North Carolina General Assembly. The Plan accumulates contributions from employees and any earnings on those contributions in the Disability Income Plan Trust Fund. The Plan does not provide for automatic post-retirement benefit increases. The state of North Carolina issues a publicly available financial report that includes financial statements and required supplementary information for the DIPNC. An electronic version of this report is available by accessing the North Carolina Office of the State Controller's Internet home page http://www.ncosc.net/ and clicking on "Financial Reports," or by calling the State Controller's Financial Reporting Section at (919) 981-5454.

Funding Policy. An employee is eligible to receive long-term disability benefits provided the following requirements are met: (1) the employee has five or more years of contributing membership service in the Teachers' and State Employees' Retirement System of North Carolina, earned within 96 months prior to the end of the short-term disability period or cessation of salary continuation payments, whichever is later; (2) the employee must make application to receive long-term benefits within 180 days after the conclusion of the short-term disability period or after salary continuation payments cease or after monthly payments for Workers' Compensation cease (excluding monthly payments for permanent partial benefits), whichever is later; (3) the employee must be certified by the Medical Board to be mentally or physically disabled for the further performance of his/her usual occupation; (4) the disability must have been continuous, likely to be permanent, and incurred at the time of active employment; (5) the employee must not be eligible to receive an unreduced retirement benefit from the Retirement System; and (6) the employee must terminate employment as a permanent, full-time employee. An employee is eligible to receive an unreduced retirement benefit from the Retirement System after (1) reaching the age of 65 and completing five years of creditable service, or (2) reaching the age of 60 and completing 25 years of creditable service, or (3) completing 30 years of creditable service, at any age. For members with five or more years of membership service as of July 31, 2007, the monthly long-term disability benefit is equal to 65% of one-twelfth of an employee's annual base rate of compensation last payable to the participant or beneficiary prior to the beginning of the short-term disability period, plus the like percentage of one-twelfth of the annual longevity payment to which the participant or beneficiary would be eligible. The monthly benefits are subject to a maximum of $3,900, per month reduced by any primary Social Security disability benefits and by monthly payments for Workers' Compensation to which the participant or beneficiary may be entitled. The monthly benefit shall be further reduced by the amount of any monthly payments from the Department of Veterans Affairs, any other federal agency or any payments made under the provisions of G.S.127A-108, to which the participant or beneficiary may be entitled on account of the same disability. Provided in any event, the benefits payable shall be no less than $10 a month. When an employee qualifies for an unreduced service retirement allowance from the Retirement System, the benefits payable from DIPNC will cease, and the employee will commence retirement under the TSERS.


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III. DETAIL NOTES ON ALL FUNDS (CONTINUED) B. Liabilities 2. Other Postemployment Benefits b. Long-Term Disability Benefits

For members who obtain five years of membership service on or after August 1, 2007, the monthly long-term disability benefit is reduced by the primary Social Security retirement benefit to which you might be entitled should you become age 62 during the first 36 months. After 36 months of long-term disability, there will be no further payments from the DIPNC unless the member is approved for and are in receipt of primary Social Security disability benefits. It is payable so long as the member remains disabled and is in receipt of a primary Social Security disability benefit until eligible for an unreduced service retirement benefit. When an employee qualifies for an unreduced service retirement allowance from the Retirement System, the benefits payable from DIPNC will cease, and the employee will commence retirement under the TSERS.

The Board's contributions are established in the Appropriations Bill by the General Assembly. Benefit and contribution provisions are established by Chapter 135, Article 6, of the General Statutes and may be amended only by the North Carolina General Assembly. The contributions cannot be separated between the amounts that relate to other postemployment benefits and employment benefits for active employees. Those individuals who are receiving extended short-term disability benefit payments cannot be separated from the number of members currently eligible to receive disability benefits as another postemployment benefit. For the fiscal years ended June 30, 2016, 2015 and 2014, the Board paid all annual required contributions to the DIPNC for disability benefits of $1,591,726, $1,628,584 and $1,714,577, respectively. These contributions represented .41%, .41% and .44% of covered payroll, respectively.

3. Other Employment Benefits

a. Death Benefits Plan Description. The Board provides disability benefits and death benefits, in accordance with state statutes, to certain employees. Death benefits are provided through the Benefit Plan for members of the Teachers’ and State Employees’ Retirement System (Death Benefit Plan). Funding Policy. A multiple-employer state-administered cost-sharing plan funded on a one-year term cost basis. Employees who die in active service after one year of contributing membership service in the System, or who die within 180 days after retirement or termination of service and have at least one year of contributing membership service in the System at the time of death are eligible for death benefits. Lump sum death benefit payments to beneficiaries are equal to the employee’s highest 12 months salary in a row during the 24 months prior to his/her death, with a minimum benefit of $25,000 and a maximum of $50,000.


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III. DETAIL NOTES ON ALL FUNDS (CONTINUED) B. Liabilities 4. Accounts Payable and Accrued Salaries and Related Payable

The balances in accounts payable and accrued salaries and related payables at year-end is composed of the following:

Salaries Vendors and Benefits

Governmental activities: General $ 2,450,269 $ 6,510,837 Other governmental 5,751,377 9,492,967

Total - governmental activities $ 8,201,646 $ 16,003,804

Business-type activities: School Food Service $ 192,304 $ 237,926 After School Care Enrichment Services - 90,372

Total - business-type activities $ 192,304 $ 382,298 5. Deferred Outflows and Inflows of Resources

The balance in deferred outflows and inflows of resources at year-end is composed of the following:

Deferred Deferred Outflows of Inflows of Resources Resources Change in proportion and differences between employer contributions and proportionate share of contributions $ 538,250 $ 1,921,990 Board contributions subsequent to the measurement date 35,522,657 - Differences between expected and actual experience - 12,754,720 Difference between projected and actual earnings on plan investments - 12,153,636 Totals $ 36,060,907 $ 26,830,346


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6. Unearned Revenues

The balance in unearned revenues at June 30, 2016 is composed of the following elements:

Sales tax refund receivable (Federal Grants and State Public School Fund) $ 117,582

Grants not yet earned (Special Revenue Fund) 1,559,091

Total - governmental activities $ 1,676,673

Prepaid meal charges (School Food Service) $ 282,121

Prepaid enrollment fees (After School Care Enrichment) 42,695

Total - business-type activities $ 324,816

7. Risk Management

The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Board protects itself from potential loss through a combination of the purchase of commercial insurance for primary and/or excess liability coverage and self-funded risk retention. Self-funded risks are primarily for employee workers’ compensation.

The Board maintains general liability insurance coverage of $1 million per occurrence with a $3 million annual aggregate, and errors and omissions coverage of $2 million per occurrence including defense cost. The Board also maintains property insurance with a combined blanket limit of $2 billion. Flood and earthquake occurrence limit is $10 million each with a $10 million each aggregate. The property catastrophe limit is $450 million arising under one or more coverage’s in any one occurrence.

The Board also participates in the Teachers’ and State Employees’ Comprehensive Major Medical Plan (the Plan), a self-funded risk financing pool of the state administered by Blue Cross and Blue Shield of North Carolina. The Board pays the full cost of coverage for employees enrolled in the Comprehensive Major Medical Plan.

The Board is self-insured for workers’ compensation claims for employees paid from local and federal funds and carries excess workers’ compensation coverage for claims over $400,000. The state of North Carolina provides workers’ compensation coverage for employees to the extent they are paid from state funds.

In accordance with NCGS 115C-442, the Board’s employees who have custody of the Board’s monies at any given time are performance bonded through a commercial surety bond. The finance officer and superintendent are each bonded for $250,000. Remaining employees that have access to funds are bonded under a blanket bond for $100,000 with an additional $25,000 for forgery.


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7. Risk Management

The Board is a member of the Local Government Excess Liability Fund, Inc. and the Local Government Property Insurance Deductible Fund, Inc., which are nonprofit corporations established by units of local government in Guilford County to administer the self-funding of liability coverage for certain retained risks that are not otherwise covered by purchased insurance. These nonprofit corporations administer various risk financing funds on behalf of its member governments.

Participation in these funds does not transfer risk of loss from the member government to the Fund. Fund balances are segregated by member and, in the event of loss, are available for claims payment by the respective member, on either a loan or withdrawal basis, depending on the provisions of the specific fund. As of June 30, 2016, the Board’s combined balance in the risk financing funds amounted to $3,062,590, which is recorded in the General Fund as self-funded insurance deposits. Of this balance, $692,366 is in discretionary funds that do not require the Board to reimburse the fund for claims paid. The remainder of the deposits is in revolving funds that require the Board to repay the Fund in subsequent years for claims paid by the Fund.

Changes in the claims liability for retained risks in 2015 and 2016 were as follows:

Beginning Current Claims Ending Balances Year Claims Payments Balances

Governmental activities 2014 - 2015 $ 2,706,004 $ - $ 1,273,177 $ 1,432,827 2015 - 2016 1,432,872 966,852 761,629 1,638,095

Business-type activities 2014 - 2015 136,647 471,707 364,838 243,516 2015 - 2016 243,516 354,405 375,790 222,131

The Board also carries commercial coverage for all other risks of loss. There have been no significant reductions in insurance coverage in the prior year, and settled claims have not exceeded coverage in any of the last three fiscal years.

8. Construction Commitments

The Board had entered into several planned projects for school construction and improvements as of June 30, 2016. Outstanding commitments as of June 30, 2016 amounted to $85,595,749. The projects are commitments of the Capital Outlay Fund, which will be funded from the proceeds of county-issued bonds, restricted local option sales taxes, as well as other general county revenues and various state revenues.

9. Contingencies

At June 30, 2016, the Board was a defendant to various lawsuits and claims. In the opinion of the Board’s management and the Board’s legal counsel, the ultimate effect of these other lawsuits and claims will not have a material adverse effect on the Board’s financial position.


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III. DETAIL NOTES ON ALL FUNDS (CONTINUED) B. Liabilities 10. Long-Term Obligations a. Installment Purchase The Board is authorized to finance the purchase of school buses under G. S. 115C-528(a). Session

Law 2003-284, section 7.25 authorized the State Board of Education to allot monies for the payments on financing contracts entered into pursuant to G. S. 115C-528. The State has accepted the bid to purchase Thomas Built Buses through a special third party financing arrangements by Banc of America Public Capital Corp. In October 2014, the Board entered into an installment purchase contract to finance the purchase of one school bus. The financing contract requires only principal payment of $20,556 due at the beginning of each contract year and will be paid in full in 2017. In April 2015, the Board entered into an installment purchase contract to finance the purchase of 26 school buses. The financing contract requires two principal payments of $539,006 and $517,242.

The future minimum payments of the installment purchases as of June 30, 2016 are as follows:

Year Ending June 30:

2017 $ 559,562

2018 $ 517,242

b. Long-Term Obligation Activity

The following is a summary of changes in the Board’s long-term obligations for the fiscal year ended June 30, 2016:

Balance Balance Due Within July 1, 2015 Increases Decreases June 30, 2016 One Year

Governmental activities: Installment purchases $ 41,111 $ 2,156,025 $ 1,120,332 $ 1,076,804 $ 559,562 Net pension liability 34,880,507 109,824,080 35,471,232 109,233,355 - Compensated absences 38,046,570 - 1,835,831 36,210,739 1,835,831 Claims liability for retained risk 1,432,872 966,852 761,629 1,638,095 1,000,000

$ 74,401,060 $ 112,946,957 $ 39,189,024 $ 148,158,993 $ 3,395,393

Business-type activities: Net pension liability $ 896,506 $ 2,960,729 $ 911,689 $ 2,945,546 $ - Compensated absences 872,479 75,435 64,686 883,228 64,686 Claims liability for retained risks 243,516 354,405 375,790 222,131 222,131 $ 2,012,501 $ 3,390,569 $ 1,352,165 $ 4,050,905 $ 286,817

Compensated absences for governmental activities are generally liquidated by the general and other governmental funds.


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C. Internal Balances and Activity

Transfers to/from other funds for the year ended June 30, 2016 consist of the following:

From the General Fund to the School Food Service Fund for charged meals $ 32,466

From the General Fund to the Capital Outlay Fund for various capital requests $ 79,369

Interfund balances between funds at June 30, 2016 consist of the following:

Receivable Fund Payable Fund Amount Purpose

General Fund Individual Schools Fund $ 398,593 Operating costs

Special Revenue Fund School Food Service Fund $ 308,882 Operating costs

General Fund School Food Service Fund $ 402,836 Operating costs

General Fund Nonmajor Enterprise Fund $ 53,325 Operating costs

General Fund Special Revenue Fund $ 475 Operating costs

School Food Service Fund General Fund $ 32,466 Charged meals

D. Fund Balance

The Board has a revenue spending policy that provides policy for programs with multiple revenue sources. The Finance Officer will use resources in the following hierarchy: federal funds, state funds, local non-Board funds, Board funds. For purposes of fund balance classification expenditures are to be spent from restricted fund balance first, followed in-order by committed fund balance, assigned fund balance and lastly unassigned fund balance. The Finance Officer has the authority to deviate from this policy if it is in the best interest of the Board.

The following information provides management and citizens with information on the portion of the General Fund’s fund balance that is available for appropriation.

Total fund balance – General Fund $ 13,801,494 Less: Non-spendable portion 3,063,558 Restricted portion 3,459,799 Fund balance available for appropriation $ 7,278,137


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E. Encumbrances

Encumbrances are amounts needed to pay any commitments related to purchase orders and contracts that remain unperformed at year-end. General Fund $ 1,749,489

Capital Outlay Fund $ 95,060,526 IV. SUMMARY DISCLOSURE OF SIGNIFICANT CONTINGENCIES

Federal- and State-Assisted Programs

The Board has received proceeds from several federal and state grants. Periodic audits of these grants are required and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant monies to the grantor agencies. Management believes that any required refunds will be immaterial. No provision has been made in the accompanying financial statements for the refund of grant monies.

REQUIRED SUPPLEMENTARTY INFORMATION

Required Supplementary Information (“RSI”) is not a required part of the basic financial statements but is information required by the Governmental Accounting Standards Board. This section includes the following RSI regarding the Board’s participation in the North Carolina Teachers’ and State Employees’ Retirement System (“TSERS”):

Schedule of the Board’s Proportionate Share of the Net Pension Liability

Schedule of the Board’s Contributions

Management’s Discussion and Analysis is also RSI. It is presented immediately before the basic financial statements.

RSI-1

GUILFORD COUNTY BOARD OF EDUCATIONREQUIRED SUPPLEMENTARY INFORMATION - SCHEDULE OF THEBOARD'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITYTEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEMLast Three Fiscal Years *

2016 2015 2014

Board's proportion of the net pension liability 3.044% 3.052% 3.006%Board's proportionate share of the net pension liability 112,178,901$ 35,777,013$ 182,494,831$ Board's covered-employee payroll 398,154,674$ 388,478,717$ 384,490,511$ Board's proportionate share of the net pension liability

as a percentage of its covered-employee payroll 28.17% 9.21% 47.46%Plan fiduciary net position as a percentage of the total

pension liability 94.64% 98.24% 90.60%

* The amounts presented for each fiscal year were determined as of the prior fiscal year ending June 30.This schedule will build to a 10 year schedule as information becomes available.

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RSI-2

GUILFORD COUNTY BOARD OF EDUCATIONSCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF BOARD CONTRIBUTIONSTEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEMLast Three Fiscal Years *

2016 2015 2014

Contractually required contribution 35,522,657$ 36,345,227$ 33,739,436$ Contributions in relation to the contractually

required contribution 35,522,657 36,345,227 33,739,436

Contribution deficiency (excess) -$ -$ -$

Board's covered-employee payroll 386,903,501$ 398,154,674$ 388,478,717$

Contributions as a percentage of thecovered-employee payroll 9.18% 9.13% 8.69%

* This schedule will build to a 10 year schedule as information becomes available.

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COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

The following section contains combining statements for the Board’s non-major governmental funds and fiduciary funds. Budgetary schedules are presented to demonstrate legal compliance with all funds required (by state law) to adopt an annual budget. A schedule of the Board’s individual schools shows details of each schools revenues and expenditures.

THE GENERAL FUND

The General Fund is the main operating fund of Guildford County Board of Education (the “Board”). The General Fund accounts for all financial resources except those that are required to be accounted for in another fund. This fund is also referred to as the “Local Current Expense Fund,” which is mandated by state law [G. S. 115C-426].

Schedule 1 Page 1 of 2

FinalBudget Actual Variance

REVENUESGuilford County:

Appropriation from general revenues 183,360,398$ 183,360,398$ -$

Total Guilford County 183,360,398 183,360,398 -

Other:Fines and forfeitures 3,000,000 2,196,512 (803,488) Interest earned on investments 303,424 58,585 (244,839) Tuition and fees 37,126 67,103 29,977 Other 538,193 534,801 (3,392)

Total other 3,878,743 2,857,001 (1,021,742)

Total revenues 187,239,141 186,217,399 (1,021,742)


Instructional services:Regular instructional 55,684,383 57,474,250 (1,789,867) Special populations 11,465,015 12,124,013 (658,998) Alternative programs 4,612,036 3,423,530 1,188,506 School leadership 16,901,992 14,703,751 2,198,241 Co-curricular 4,536,936 4,449,355 87,581 School-based support 14,073,994 13,605,488 468,506

Total instructional services 107,274,356 105,780,387 1,493,969

System-wide support services:Support and development 3,634,942 3,572,108 62,834 Special population support and development 2,093,338 2,078,265 15,073 Alternative programs and services support

and development 274,721 223,645 51,076 Technology support 8,351,747 8,284,599 67,148 Operational support 39,009,402 41,333,077 (2,323,675) Financial and human resources 7,008,436 5,436,652 1,571,784 Accountability 1,432,503 1,378,381 54,122 System-wide pupil support 1,089,308 1,041,777 47,531 Policy, leadership, and public relations 3,814,531 3,556,567 257,964

Total system-wide support services 66,708,928 66,905,071 (196,143)

GUILFORD COUNTY BOARD OF EDUCATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND Year Ended June 30, 2016

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Schedule 1Page 2 of 2



Ancillary services 154,238$ 41,702$ 112,536$ Non-program charges 13,507,096 12,601,602 905,494

Total expenditures 187,644,618 185,328,762 2,315,856

Revenues over (under) expenditures (405,477) 888,637 1,294,114

OTHER FINANCING USESTransfers to other funds - (111,835) (111,835)

Revenues over (under) expenditures and other financing uses (405,477) 776,802 1,182,279

APPROPRIATED FUND BALANCE 405,477 - (405,477)

Net change in fund balance -$ 776,802 776,802$

FUND BALANCEBeginning of year 13,055,202Decrease in reserve for inventories (30,510)

End of year 13,801,494$

GUILFORD COUNTY BOARD OF EDUCATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND Year Ended June 30, 2016

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THE CAPITAL OUTLAY FUND

The Capital Outlay Fund accounts for financial resources to be used for the acquisition and construction of major capital facilities (other than those financed by proprietary funds and trust funds). It is mandated by state law [G. S. 115C-426]. Capital projects are funded by county appropriations, restricted sales tax monies, proceeds from county bonds issued for public school construction as well as certain other state assistance.

Schedule 2

GUILFORD COUNTY BOARD OF EDUCATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE - BUDGET AND ACTUAL - CAPITAL OUTLAY FUND Year Ended June 30, 2016


REVENUESState of North Carolina:

Public School Building Capital Fund 566,850$ 3,194$ (563,656)$ Education Lottery 60,064 - (60,064) State appropriations - school buses 1,202,554 1,120,332 (82,222)

Total state of North Carolina 1,829,468 1,123,526 (705,942)

Guilford County:Appropriation 12,116,022 5,321,461 (6,794,561) Bond proceeds 118,923,542 19,654,077 (99,269,465)

Total Guilford County 131,039,564 24,975,538 (106,064,026)

Other 30,000 1,892,000 1,862,000

Total revenues 132,899,032 27,991,064 (104,907,968)

EXPENDITURESDebt service:

Principal 1,120,332

Capital outlay:Category I projects 23,468,986Category II projects 449,279 Category III projects 3,349,990

Total capital outlay 27,268,255


Revenues under expenditures (2,235,394) (397,523) 1,837,871

OTHER FINANCING SOURCESInstallment purchase obligations issued 2,156,025 2,156,025 - Transfers from other funds 79,369 79,369 -

Total other financing sources 2,235,394 2,235,394 -

Net change in fund balance -$ 1,837,871 1,837,871$

FUND BALANCEBeginning of year 1,125,061

End of year 2,962,932$

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NON-MAJOR GOVERNMENTAL FUNDS

Non-major governmental funds are combined and presented in the aggregate as “non-major” or “other” governmental funds. The following section contains the following other governmental funds:

The Federal Grants Fund – This special revenue fund accounts for appropriations for the expenditures of federal categorical grants made available through the North Carolina Department of Public Instruction.

The Other Special Revenue Fund – This special revenue fund accounts for specific revenue

sources made directly to the Board and restricted for special programs that are not accounted for in the General Fund or other special revenue funds pursuant to state law (G.S. 115C-426(c)).

Schedule 3

SpecialFederal RevenueGrants Fund Total

ASSETS

Cash -$ 703,677$ 703,677$

Receivables:Federal government 1,003,959 - 1,003,959 Other - 1,265,691 1,265,691

Due from other funds - 308,882 308,882

Total receivables 1,003,959 1,574,573 2,578,532

Total assets 1,003,959$ 2,278,250$ 3,282,209$

LIABILITIES

Accrued salaries and related payables 901,833$ 131,313$ 1,033,146$ Unearned revenues 102,126 1,559,091 1,661,217 Due to other funds - 475 475


FUND BALANCES

Restricted:PACE Project - 587,371 587,371

Total liabilities and fund balances 1,003,959$ 2,278,250$ 3,282,209$

GUILFORD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS Year Ended June 30, 2016

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REVENUESState of North Carolina:

NC Pre-Kindergarten Program -$ 3,742,608$ 3,742,608$ School Impact - 106,198 106,198

Total State of North Carolina - 3,848,806 3,848,806

U. S. Government:ROTC Grant - 446,015 446,015 Indian Education Grant - 52,191 52,191 PACE Project - 4,139,011 4,139,011 Teacher Incentive Program - 2,381,889 2,381,889 Transition to Teaching - 408,556 408,556 Summer Instruction Grant - 6,049 6,049 Other 42,785,647 - 42,785,647

Total U.S. Government 42,785,647 7,433,711 50,219,358

Other:Medicaid - 3,890,349 3,890,349 Indirect cost - 3,732,195 3,732,195 Other - 1,857,761 1,857,761

Total other - 9,480,305 9,480,305

Total revenues 42,785,647 20,762,822 63,548,469

GUILFORD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS Year Ended June 30, 2016

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Instructional services:Regular instructional 1,075,612$ 5,426,450$ 6,502,062$ Special populations 11,390,559 1,046,008 12,436,567 Alternative programs 18,427,668 4,325,555 22,753,223 School leadership 15,816 783,842 799,658 Co-curricular - 3,844 3,844 School-based support 1,831,596 964,731 2,796,327

Total instructional services 32,741,251 12,550,430 45,291,681

System-wide support services:Support and development 1,475,852 1,818,533 3,294,385 Special population support and development 3,205,886 - 3,205,886 Alternative programs and services

support and development 4,199,928 266,843 4,466,771 Operational support 57,821 2,690,316 2,748,137 Financial and human resources - 2,999,421 2,999,421 Accountability services - 76,715 76,715 System-wide support services - 76,201 76,201 Policy, leadership, and public relations - 137,102 137,102

Total system-wide support services 8,939,487 8,065,131 17,004,618

Ancillary services 2,268 - 2,268 Non-program charges 1,102,641 147,261 1,249,902


Revenues over expenditures - - -

FUND BALANCES:Beginning of year - 587,371 587,371

End of year -$ 587,371$ 587,371$

GUILFORD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS Year Ended June 30, 2016

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Schedule 5

Final FinalBudget Actual Variance Budget Actual Variance

REVENUESState of North Carolina -$ -$ -$ 3,860,011$ 3,848,806$ (11,205)$ U. S. Government agencies 63,741,978 42,785,647 (20,956,331) 17,586,695 7,433,711 (10,152,984) Other - - - 11,182,775 9,480,305 (1,702,470)

Total revenues 63,741,978 42,785,647 (20,956,331) 32,629,481 20,762,822 (11,866,659)


Instructional servicesRegular instructional 1,088,978 1,075,612 13,366 14,868,133 5,426,450 9,441,683 Special populations 15,024,980 11,390,559 3,634,421 1,393,309 1,046,008 347,301 Alternative programs 23,354,603 18,427,668 4,926,935 4,646,844 4,325,555 321,289 School leadership 16,892 15,816 1,076 784,092 783,842 250 Co-curricular - - - 4,480 3,844 636 School-based support 2,547,692 1,831,596 716,096 1,648,309 964,731 683,578

System-wide support servicesSupport and development 1,699,618 1,475,852 223,766 1,974,047 1,818,533 155,514 Special population support and

development 3,343,340 3,205,886 137,454 - - - Alternative program and service

support and development 4,991,821 4,199,928 791,893 268,358 266,843 1,515 Technology support - - - 113,579 - 113,579 Operational support 77,136 57,821 19,315 2,968,840 2,690,316 278,524 Financial and human resource - - - 3,167,226 2,999,421 167,805 Accountability services - - - 121,294 76,715 44,579 System-wide support services - - - 85,478 76,201 9,277 Policy, leadership, and public

relations - - - 237,638 137,102 100,536 Ancillary services 48,593 2,268 46,325 - - - Non-program charges 11,548,325 1,102,641 10,445,684 347,854 147,261 200,593

Total expenditures 63,741,978 42,785,647 20,956,331 32,629,481 20,762,822 11,866,659

Revenues over expenditures -$ - -$ -$ - -$

FUND BALANCESBeginning of year - 587,371

End of year -$ 587,371$

ACTUAL - NONMAJOR GOVERNMENTAL FUNDS Year Ended June 30, 2016

SPECIAL REVENUE FUNDFEDERAL FUND

GUILFORD COUNTY BOARD OF EDUCATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND

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THE INDIVIDUAL SCHOOLS FUND

The Individual Schools Fund is a special revenue fund that reports the revenues and expenditures of the activities at each school in the system. The primary revenue sources include funds held on behalf of various clubs and organizations, receipts from athletic events, and proceeds from various fund raising activities. The primary expenditures are for athletic teams, club programs, activity buses and instructional needs.

FundraisingActivities, Clubs and Contributions

Net of Cost Athletics Organizations and Other TotalELEMENTARY SCHOOLS

Alamance Elementary 18,312$ -$ 5,940$ 49,763$ 74,015$ Alderman Elementary 12,562 75 - 19,393 32,030 Allen Jay Elementary 5,387 - - 17,088 22,475 Archer Elementary 2,116 - - 36,176 38,292 Bessemer Elementary 12,170 - - 66,584 78,754 Bluford Elementary 1,816 - - 10,597 12,413 Brightwood Elementary 5,515 - 1,922 35,053 42,490 Brooks Global Elementary 7,752 - - 55,303 63,055 Claxton Elementary 4,475 - 2,215 90,295 96,985 Colfax Elementary 2,526 - - 82,527 85,053 Cone Elementary 4,891 - - 17,074 21,965 Erwin Elementary 8,809 - 199 33,219 42,227 Fairview Elementary 976 - - 17,160 18,136 Falkener Elementary 3,259 - - 32,322 35,581 Florence Elementary 7,197 - 1,072 55,558 63,827 Foust Elementary 2,054 - 1,000 22,510 25,564 Frazier Elementary 3,619 - - 12,194 15,813 Gibsonville Elementary 2,042 - - 32,646 34,688 Gillespie Park Elementary 3,202 - 235 11,692 15,129 General Greene Elementary 5,435 - - 79,836 85,271 Guilford Elementary 16,509 - 30 33,870 50,409 Hampton Elementary 783 - - 21,864 22,647 Hunter Elementary 5,565 - - 39,009 44,574 Irving Park Elementary 2,467 - - 21,988 24,455 Jamestown Elementary 3,599 - - 15,188 18,787 Jefferson Elementary 5,128 - - 61,046 66,174 Jesse Wharton Elementary 6,590 - - 53,208 59,798 Johnson Street Elementary 2,544 - - 17,416 19,960 Jones Elementary 20,571 - - 52,684 73,255 Joyner Elementary 8,550 - - 10,945 19,495 Kirkman Park Elementary 1,478 200 - 48,842 50,520 Lindley Elementary 3,057 - - 20,676 23,733 Madison Elementary 12,275 - - 35,664 47,939 McLeansville Elementary 6,957 - - 33,812 40,769 McNair Elementary 9,119 - - 31,536 40,655 Millis Road Elementary 3,435 - - 77,922 81,357 Monticello-Brown Summit Elementary 26,411 - - 22,178 48,589 Montlieu Avenue Elementary 1,230 - 440 26,063 27,733 Morehead Elementary 14,066 - - 37,837 51,903 Murphey Elementary 1,254 - - 70,229 71,483 Nathanael Greene Elementary 10,645 - 3,742 45,886 60,273 Northern Elementary 20,520 - - 110,512 131,032 Northwood Elementary 2,680 - 795 23,068 26,543 Oak Hill Elementary 1,260 - 11,850 16,520 29,630 Oak Ridge Elementary 9,582 - - 75,483 85,065 Oak View Elementary 1,723 - - 18,305 20,028 Parkview Elementary 4,097 - - 19,496 23,593 Pearce Elementary 13,826 - 7,110 101,071 122,007 Peck Elementary 4,923 - - 8,853 13,776 Peeler Elementary 1,349 - 15 14,582 15,946 Pilot Elementary 4,752 - - 36,717 41,469 Pleasant Garden Elementary 8,440 - 999 56,745 66,184 Rankin Elementary 4,011 - - 22,676 26,687 Reedy Fork Elementary 3,634 - - 20,157 23,791 Sedalia Elementary 5,234 - - 17,927 23,161 Sedgefield Elementary 8,412 - - 24,351 32,763 Shadybrook Elementary 9,675 - 235 20,994 30,904 Simkins Elementary 12,303 - 1,071 52,924 66,298 Southern Elementary 3,058 - 779 16,495 20,332 Southwest Elementary 8,984 - 296 71,641 80,921 Sternberger Elementary 9,305 - 400 31,719 41,424 Stokesdale Elementary 7,639 - - 109,777 117,416 Summerfield Elementary 17,231 50 200 69,065 86,546 Sumner Elementary 3,374 - - 26,262 29,636 Triangle Lake Montessori 3,096 - 964 28,777 32,837 Union Hill Elementary 21,593 - - 30,070 51,663 Vandalia Elementary 3,195 - - 17,672 20,867 Washington Elementary 1,932 - - 23,986 25,918 Wiley Elementary 647 - - 20,150 20,797

Total Elementary Schools 472,823 325 41,509 2,640,848 3,155,505

Revenues


GUILFORD COUNTY BOARD OF EDUCATION DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - INDIVIDUAL SCHOOLS FUND

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Schedule 6Page 1 and 2

Excess(Deficiency) of

Instructional Clubs and Revenues Over Beginning EndCosts Athletics Organizations Other Total Expenditures of Year of Year

6,342$ -$ 8,745$ 63,302$ 78,389$ (4,374)$ 22,581$ 18,207$ 5,129 125 1,129 25,356 31,739 291 12,197 12,488 5,922 - - 8,629 14,551 7,924 17,724 25,648 9,674 - 67 26,314 36,055 2,237 6,013 8,250 4,370 - 234 75,716 80,320 (1,566) 4,864 3,298

635 - 302 9,477 10,414 1,999 7,230 9,229 772 - 164 36,201 37,137 5,353 23,782 29,135 625 - - 57,831 58,456 4,599 15,567 20,166

6,291 - 2,221 81,997 90,509 6,476 8,200 14,676 1,248 - - 62,427 63,675 21,378 56,221 77,599

725 - - 15,480 16,205 5,760 24,324 30,084 8,318 - 199 33,967 42,484 (257) 5,697 5,440 5,685 - - 11,187 16,872 1,264 8,361 9,625

350 - - 33,740 34,090 1,491 3,974 5,465 3,029 - 1,242 55,889 60,160 3,667 25,631 29,298 2,728 - 1,000 22,519 26,247 (683) 5,598 4,915 6,808 - - 12,901 19,709 (3,896) 7,882 3,986 2,076 - - 30,312 32,388 2,300 22,456 24,756 5,577 - 586 6,723 12,886 2,243 5,942 8,185

403 - - 92,190 92,593 (7,322) 41,680 34,358 2,192 - - 41,267 43,459 6,950 15,141 22,091 9,718 - - 10,123 19,841 2,806 7,288 10,094

25,716 - - 25,781 51,497 (6,923) 32,962 26,039 - - - 22,140 22,140 2,315 49,765 52,080

245 - - 16,466 16,711 2,076 12,631 14,707 1,000 - - 65,176 66,176 (2) 25,687 25,685 3,881 - - 52,662 56,543 3,255 37,877 41,132 2,477 - - 14,446 16,923 3,037 12,479 15,516 6,265 - - 67,852 74,117 (862) 29,707 28,845 1,100 - - 15,856 16,956 2,539 19,723 22,262

31,505 200 - 13,207 44,912 5,608 12,923 18,531 5,019 - - 21,479 26,498 (2,765) 21,329 18,564 6,302 - - 41,790 48,092 (153) 18,243 18,090 7,819 - 35 29,927 37,781 2,988 9,983 12,971

924 - - 41,248 42,172 (1,517) 7,756 6,239 3,324 - - 76,650 79,974 1,383 21,522 22,905 1,922 - - 50,751 52,673 (4,084) 68,462 64,378 7,324 - 221 22,188 29,733 (2,000) 24,590 22,590

821 - - 52,787 53,608 (1,705) 14,920 13,215 42,438 - - 27,941 70,379 1,104 13,684 14,788

4,184 - 3,724 51,467 59,375 898 13,408 14,306 1,100 - 173 115,693 116,966 14,066 61,238 75,304 5,308 - 826 19,081 25,215 1,328 20,383 21,711 5,354 - 8,089 14,054 27,497 2,133 21,934 24,067 1,612 - - 77,704 79,316 5,749 54,798 60,547

13,793 - - 7,182 20,975 (947) 7,106 6,159 677 - 212 12,820 13,709 9,884 7,550 17,434

3,212 - 5,885 107,494 116,591 5,416 31,172 36,588 5,613 - - 10,529 16,142 (2,366) 11,809 9,443

- - 15 14,380 14,395 1,551 1,845 3,396 1,330 - - 38,843 40,173 1,296 4,143 5,439

16,269 - 880 50,436 67,585 (1,401) 48,231 46,830 8,240 - - 18,705 26,945 (258) 46,056 45,798 7,079 - - 15,960 23,039 752 (17,293) (16,541) 4,524 - 27 19,273 23,824 (663) 12,672 12,009

12,715 - 35 15,097 27,847 4,916 20,385 25,301 824 - 393 26,898 28,115 2,789 22,013 24,802

23,744 - 1,222 28,704 53,670 12,628 3,223 15,851 2,016 - 291 17,868 20,175 157 6,431 6,588

27,549 - 35 42,777 70,361 10,560 12,433 22,993 652 - - 36,136 36,788 4,636 28,934 33,570

2,185 - - 117,963 120,148 (2,732) 3,711 979 4,432 50 - 80,793 85,275 1,271 27,362 28,633 7,531 - - 16,565 24,096 5,540 8,192 13,732 1,247 - 746 29,804 31,797 1,040 15,055 16,095

10,531 - - 39,368 49,899 1,764 9,609 11,373 3,779 - - 18,527 22,306 (1,439) 5,163 3,724 4,881 - - 19,771 24,652 1,266 14,285 15,551 4,299 - - 12,609 16,908 3,889 4,547 8,436

421,379 375 38,698 2,548,396 3,008,848 146,657 1,288,991 1,435,648

Expenditures Fund Balance

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FundraisingActivities, Clubs and Contributions

Net of Cost Athletics Organizations and Other Total

MIDDLE SCHOOLS Allen Jay Middle 1,754$ 8,041$ -$ 110,702$ 120,497$

Allen Middle 3,639 11,198 329 37,509 52,675 Aycock Middle 1,429 13,992 2,788 22,377 40,586 Brown Summitt Middle 1,434 - 95 37,160 38,689 Eastern Middle 6,037 13,229 2,367 18,456 40,089 Ferndale Middle 5,753 11,258 6,183 5,766 28,960 Guilford Middle 18,978 17,333 323 73,930 110,564 Hairston Middle 1,469 9,775 5,858 48,624 65,726 High School Ahead Academy 592 - - 693 1,285 Jackson Middle 2,428 13,705 510 11,793 28,436 Jamestown Middle 2,250 11,781 1,650 29,263 44,944 Kernodle Middle 44,328 25,167 20,650 69,693 159,838 Kiser Middle 7,367 22,122 9,287 102,994 141,770 Lincoln Academy 16,149 11,579 10,793 170,517 209,038 Mendenhall Middle 22,122 16,659 2,496 95,429 136,706 Newcomer School 1,050 - - 14,151 15,201 Northeast Middle 6,062 17,911 32 40,468 64,473 Northern Middle 10,726 34,519 12,084 216,156 273,485 Northwest Middle 39,111 9,664 3,742 227,645 280,162 Penn-Griffin Middle 2,196 9,530 16,792 82,455 110,973 Southeast Middle 11,515 33,734 16,670 52,250 114,169 Southern Middle 5,593 13,882 2,426 37,769 59,670 Southwest Middle 30,280 27,706 788 74,342 133,116 Welborn Middle 2,010 10,346 1,934 9,440 23,730

Total Middle Schools 244,272 343,131 117,797 1,589,582 2,294,782

SENIOR HIGH SCHOOLSAndrews High 15,568 120,024 23,502 37,680 196,774 A&T Middle College - - 2,935 12,131 15,066 Bennett Middle College 55 - 7,819 20,198 28,072 Dudley High 17,059 246,633 70,440 71,296 405,428 Eastern High 15,196 147,318 32,475 18,972 213,961 Greensboro Middle College 1,252 - 1,785 8,110 11,147 Grimsley High 86,562 201,586 69,132 54,906 412,186 Guilford Early College 965 - 8,667 20,269 29,901 GTCC MC Greensboro 1,670 - 1,200 3,858 6,728 GTCC MC High Point 27 - 1,970 7,017 9,014 GTCC MC Jamestown 520 - - 4,638 5,158 High Point Central Academy 3,656 - 4,173 5,841 13,670 High Point Central High 36,463 97,268 50,926 52,252 236,909 Northeast High 22,483 86,806 32,184 24,479 165,952 Northern High 6,061 250,315 54,472 35,663 346,511 Northwest High 59,225 259,276 103,232 85,858 507,591 Page High 49,083 324,843 87,908 53,067 514,901 Ragsdale High 12,356 143,529 47,512 32,004 235,401 Smith Academy 595 - 11,986 6,715 19,296 Smith High 1,759 123,590 11,971 23,789 161,109 Southeast High 41,693 153,424 39,650 35,769 270,536 Southern High 11,613 89,668 82,605 77,043 260,929 Southwest High 34,219 183,901 30,591 73,461 322,172 STEM Early College @ NC A&T 2,276 - 9,087 20,297 31,660 UNCG MC 3,126 - 3,327 12,676 19,129 Western High 15,183 125,439 24,239 41,023 205,884

Total High Schools 438,665 2,553,620 813,788 839,012 4,645,085

SPECIAL SCHOOLSGateway Education Center 596 - - 10,877 11,473 Greene Education Center - - - 9,461 9,461 Haynes-Inman Education Center 1,068 - - 103,961 105,029 Herbin-Metz Education Center 245 - - 3,578 3,823 Weaver Education Center 4,971 - 50,655 65,066 120,692

Total Special Schools 6,880 - 50,655 192,943 250,478

TOTAL 1,162,640$ 2,897,076$ 1,023,749$ 5,262,385$ 10,345,850$

Revenues


GUILFORD COUNTY BOARD OF EDUCATION DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - INDIVIDUAL SCHOOLS FUND

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Schedule 6Page 2 and 2

Excess(Deficiency) of

Instructional Clubs and Revenues Over Beginning EndCosts Athletics Organizations Other Total Expenditures of Year of Year

3,729$ 5,857$ 88$ 106,470$ 116,144$ 4,353$ 6,146$ 10,499$ 3,784 12,469 551 36,210 53,014 (339) 33,078 32,739

14,722 14,142 5,096 5,119 39,079 1,507 5,204 6,711 1,842 - 40 33,879 35,761 2,928 9,715 12,643 7,749 14,676 3,333 13,622 39,380 709 20,890 21,599 1,487 12,896 6,567 14,021 34,971 (6,011) 12,952 6,941

17,529 17,259 1,835 62,829 99,452 11,112 34,842 45,954 5,784 8,123 5,099 45,010 64,016 1,710 8,065 9,775

227 - - 1,036 1,263 22 1,800 1,822 4,948 13,780 309 6,437 25,474 2,962 12,958 15,920 2,267 12,875 2,458 24,684 42,284 2,660 17,215 19,875

11,928 25,523 24,209 98,145 159,805 33 36,552 36,585 26,644 23,966 9,703 80,630 140,943 827 34,279 35,106 18,715 11,840 10,552 155,908 197,015 12,023 10,196 22,219

5,079 16,927 1,893 114,371 138,270 (1,564) 43,584 42,020 4,993 - - 8,589 13,582 1,619 17,265 18,884

948 16,126 - 49,327 66,401 (1,928) 26,143 24,215 49,377 35,740 8,711 172,690 266,518 6,967 71,664 78,631 29,869 12,263 4,890 220,983 268,005 12,157 61,430 73,587 23,401 10,968 20,523 67,037 121,929 (10,956) 51,655 40,699 23,811 29,437 9,308 47,918 110,474 3,695 47,852 51,547

3,412 11,826 3,274 39,023 57,535 2,135 49,391 51,526 28,214 27,181 149 71,333 126,877 6,239 16,178 22,417

4,943 12,950 1,624 8,518 28,035 (4,305) 11,127 6,822

295,402 346,824 120,212 1,483,789 2,246,227 48,555 640,181 688,736

18,308 105,437 19,886 34,868 178,499 18,275 37,561 55,836 107 - 1,349 14,364 15,820 (754) 3,485 2,731

1,150 - 7,328 20,404 28,882 (810) 6,426 5,616 4,860 258,457 88,447 21,568 373,332 32,096 17,542 49,638

14,963 143,819 32,000 17,610 208,392 5,569 34,519 40,088 235 - 1,638 10,930 12,803 (1,656) 4,409 2,753

27,324 236,185 59,274 85,153 407,936 4,250 139,713 143,963 3,379 - 12,274 14,237 29,890 11 75,564 75,575 2,082 - 852 2,473 5,407 1,321 5,054 6,375 2,529 - 1,510 3,648 7,687 1,327 11,915 13,242

- - - 6,173 6,173 (1,015) 16,833 15,818 5,852 - 2,673 3,508 12,033 1,637 3,189 4,826 5,358 116,051 57,690 59,827 238,926 (2,017) 3,260 1,243 3,667 86,146 30,891 22,144 142,848 23,104 14,725 37,829 5,907 256,060 51,130 43,353 356,450 (9,939) 66,755 56,816

12,620 269,489 135,938 64,999 483,046 24,545 51,086 75,631 13,358 315,089 73,925 87,067 489,439 25,462 53,230 78,692

4,979 152,413 47,147 23,369 227,908 7,493 16,843 24,336 3,226 - 11,234 11,793 26,253 (6,957) 24,035 17,078

20,671 119,259 13,618 3,826 157,374 3,735 83,761 87,496 9,273 147,502 39,699 96,165 292,639 (22,103) 111,224 89,121

21,051 83,621 84,248 23,398 212,318 48,611 68,042 116,653 20,328 163,769 25,610 87,068 296,775 25,397 67,837 93,234

3,751 - 6,993 11,324 22,068 9,592 7,084 16,676 71 - 4,251 16,101 20,423 (1,294) 8,612 7,318

7,922 137,233 18,340 48,715 212,210 (6,326) 31,181 24,855

212,971 2,590,530 827,945 834,085 4,465,531 179,554 963,885 1,143,439

335 - - 5,481 5,816 5,657 12,578 18,235 3,164 - 383 1,703 5,250 4,211 16,358 20,569

43,355 - - 62,293 105,648 (619) 7,446 6,827 - - - 5,415 5,415 (1,592) 8,684 7,092

40,006 - 46,786 20,165 106,957 13,735 70,310 84,045

86,860 - 47,169 95,057 229,086 21,392 115,376 136,768

1,016,612$ 2,937,729$ 1,034,024$ 4,961,327$ 9,949,692$ 396,158$ 3,008,433$ 3,404,591$

Expenditures Fund Balance

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ENTERPRISE FUNDS

Enterprise funds may be used to report any activity for which a fee is charged to external users for goods or services. Enterprise fund accounting is designed to highlight the extent to which fees and charges are sufficient to cover the costs of providing goods and services. It is often used for subsidized activities to highlight the cost of the subsidy. The Guilford County Board of Education (the “Board”) has two Enterprise Funds. The following section contains budgetary schedules for these funds to demonstrate legal compliance with state law (G.S. 115C-425 and 115C-450). MAJOR ENTERPRISE FUND School Food Service Fund – This fund accounts for the Board’s school food service program within the school system. It is subsidized by cash assistance and non-cash commodities provided by the U.S. Department of Agriculture. NON-MAJOR ENTERPRISE FUND After-School Care Enrichment Services Fund (“ACES”) – This fund accounts for the Board’s After School Care Enrichment Program which provides services at fifty-five of the Board’s elementary schools. All ACES programs were licensed by the North Carolina Division of Child Development and Early Education (“NC-DCDEE”) and all but one was eligible to accept Department of Social Services child care vouchers.

Schedule 7


OPERATING REVENUESFood sales 6,857,000$ 6,426,749$ (430,251)$

OPERATING EXPENDITURESFood costs:

Purchased food 17,550,184Donated commodities 2,396,871

Salaries and benefits 17,503,101 Materials and supplies 174,784Equipment acquisitions 503,753 Contracted services 427,028Indirect costs 2,236,606Other 761,363

Total operating expenditures 41,839,599 41,553,690 285,909

Operating loss (34,982,599) (35,126,941) (144,342)

NONOPERATING REVENUES Federal reimbursements 32,656,733 33,392,018 735,285 Federal commodities 2,291,988 2,396,871 104,883 Other 33,028 47,899 14,871 Interest revenue 850 12,689 11,839

Total nonoperating revenues 34,982,599 35,849,477 866,878

Transfer from other fund - 32,466 32,466

Net change (modified accrual) -$ 755,002 755,002$

Reconciliation of modified accrual to full accrual basis:

Contributions to the pension plan in current fiscal year 717,726 Depreciation (526,278) Equipment acquisitions 503,753 Loss on disposal of equipment (635) Decrease in compensated absences payable 6,457 Decrease in inventories (8,113) Capital contributions 19,000 Pension expense (213,993)

Change in net position (full accrual) 1,252,919$


GUILFORD COUNTY BOARD OF EDUCATION SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (NON-GAAP MODIFIED ACCRUAL BASIS) - SCHOOL FOOD SERVICE FUND

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Schedule 8


OPERATING REVENUESAfter school enrichment fees 6,311,568$ 6,510,245$ 198,677$ Other 60,500 45,362 (15,138)

Total operating revenues 6,372,068 6,555,607 183,539

OPERATING EXPENDITURESPurchased food 193,487 Salaries and benefits 5,679,553 Materials and supplies 267,835 Contracted services 63,814 Indirect costs 174,932 Other 75,824

Total operating expenditures 6,661,863 6,455,445 206,418

Operating income (loss) (289,795) 100,162 389,957

APPROPRIATED FUND BALANCE 289,795 - (289,795)

Net change (modified accrual) -$ 100,162 100,162$

Reconciliation of modified accrual to full accrual basis:

Contributions to the pension plan in current fiscal year 215,013 Pension expense (64,107) Increase in compensated absences payable (17,206)

Change in net position (full accrual) 233,862$


GUILFORD COUNTY BOARD OF EDUCATION SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (NON-GAAP MODIFIED ACCRUAL BASIS) - AFTER SCHOOL CARE ENRICHMENT SERVICES FUND

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THE FIDUCIARY FUNDS

The Guilford County Board of Education (the “Board”) has fiduciary responsibilities for various scholarships and programs that benefit the students attending the individual schools. These activities are reported in private-purpose trust funds. The following section reports the combining statements for all the Board’s private-purpose trust funds.

E. P. Elizabeth Bill Southeast A. B.Pearce, Jr. Hanner Holt Vielkanowitz High School Hunter

Scholarship Scholarship Scholarship Scholarship ScholarshipASSETS

Cash and cash equivalents 15,071$ 105,744$ 37,233$ 11,298$ 21,010$

Total assets 15,071$ 105,744$ 37,233$ 11,298$ 21,010$

NET POSITION

Restricted:Expendable for scholarships 4,881$ 44,744$ 18,363$ 5,298$ 11,010$ Nonexpendable 10,190 61,000 18,870 6,000 10,000

Total net position 15,071$ 105,744$ 37,233$ 11,298$ 21,010$

GUILFORD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF FIDUCIARY NET POSITIONJune 30, 2016

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Schedule 9

Dr. RandallNathanael Ora Ben L. S. Brooks, Sr. Violet G.

Greene Sublett Hanner Smith Preschool HutchensScholarship Scholarship Scholarship Scholarship Handicapped Music Fund Total

22,157$ 307,889$ 300,220$ 30,122$ 802$ 114,283$ 965,829$

22,157$ 307,889$ 300,220$ 30,122$ 802$ 114,283$ 965,829$

14,051$ 87,889$ 80,052$ 30,122$ 802$ 114,283$ 411,495$ 8,106 220,000 220,168 - - - 554,334

22,157$ 307,889$ 300,220$ 30,122$ 802$ 114,283$ 965,829$

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E. P. Elizabeth Bill Southeast A. B.Pearce, Jr. Hanner Holt Vielkanowitz High School Hunter

Scholarship Scholarship Scholarship Scholarship Scholarship

ADDITIONSDonations -$ -$ -$ -$ -$ Interest 33 232 81 25 46

Total additions 33 232 81 25 46

DEDUCTIONSScholarships and other - - - - -

Change in net position 33 232 81 25 46

NET POSITIONBeginning of year 15,038 105,512 37,152 11,273 20,964

End of year 15,071$ 105,744$ 37,233$ 11,298$ 21,010$

GUILFORD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONYear Ended June 30, 2016

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Schedule 10

Dr. RandallNathanael Ora Ben L. S. Brooks, Sr. Violet G.

Greene Sublett Hanner Smith Preschool HutchinsScholarship Scholarship Scholarship Scholarship Handicapped Music Fund Total

720$ -$ -$ -$ -$ -$ 720$ 48 684 668 3 2 251 2,073

768 684 668 3 2 251 2,793

- 5,000 5,000 - - 1,594 11,594

768 (4,316) (4,332) 3 2 (1,343) (8,801)

21,389 312,205 304,552 30,119 800 115,626 974,630

22,157$ 307,889$ 300,220$ 30,122$ 802$ 114,283$ 965,829$

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STATISTICAL SECTION

This section of Guilford County Board of Education’s (the “Board”) Comprehensive Annual Financial Report (“CAFR”) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the Board’s over all financial outlook.

Financial Trends

These schedules contain trend information, for the past ten fiscal years, to help the reader understand how the Board’s financial performance and operations have changed over time.

Revenue Capacity

These schedules contain information, for the past ten fiscal years, to help the reader assess the Board’s significant revenue sources. Since the Board has no tax-levying authority, Guilford County (the “County”) provides significant funding to the Board. Selected fiscal data from the County have been included to help the reader better understand and factors affecting the County’s ability to generate ad valorem (property) tax revenues.

Debt Capacity

Since the Board has no debt-issuing authority, the County provides significant funding to the Board. Selected fiscal data from the County have been included to help the reader assess the affordability of the County’s current levels of outstanding debt and the County’s ability to issue additional debt in the future.

Demographic and Economic Information

These schedules offer demographic and economic indicators in the County to help the reader understand the environment within which the Board’s financial activities take place.

Operating Information

These schedules contain service data to help the reader understand how the information in the Board’s CAFR relates to the services the Board provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports from both the County and the Board for the relevant year.

GUILFORD COUNTY BOARD OF EDUCATIONNET POSITION BY COMPONENTLast Ten Fiscal Years

2016 2015 2014 2013

Governmental activities

Net investment in capital assets 889,705,268$ 894,910,542$ 894,779,291$ 880,129,243$ Restricted 9,827,322 7,247,544 5,855,683 5,502,128 Unrestricted (127,164,935) (153,663,023) (27,784,547) (23,389,504)

772,367,655$ 748,495,063$ 872,850,427$ 862,241,867$

Business-type activities

Net investment in capital assets 3,313,200$ 3,317,995$ 3,033,588$ 2,987,060$ Restricted - - - - Unrestricted 7,607,326 6,115,750 9,161,480 9,487,042

10,920,526$ 9,433,745$ 12,195,068$ 12,474,102$

Government-wide

Net investment in capital assets 893,018,468$ 898,228,537$ 897,812,879$ 883,116,303$ Restricted 9,827,322 7,247,544 5,855,683 5,502,128 Unrestricted (119,557,609) (147,547,273) (18,623,067) (13,902,462)

783,288,181$ 757,928,808$ 885,045,495$ 874,715,969$

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Table 1

2012 2011 2010 2009 2008 2007

861,541,546$ 801,712,783$ 760,962,579$ 742,493,625$ 706,810,235$ 652,635,106$ 6,007,255 7,095,131 3,578,836 3,484,716 3,536,662 3,541,421

(11,368,157) (18,429,063) (13,868,529) (17,447,832) (19,187,349) (14,494,598)

856,180,644$ 790,378,851$ 750,672,886$ 728,530,509$ 691,159,548$ 641,681,929$

2,523,934$ 2,688,754$ 2,725,278$ 3,009,745$ 2,840,687$ 2,445,890$ - - - - - -

8,317,426 4,903,097 1,639,179 (626,492) (505,967) 2,245,539

10,841,360$ 7,591,851$ 4,364,457$ 2,383,253$ 2,334,720$ 4,691,429$

864,065,480$ 804,401,537$ 763,687,857$ 745,503,370$ 709,650,922$ 655,080,996$ 6,007,255 7,095,131 3,578,836 3,484,716 3,536,662 3,541,421

(3,050,731) (13,525,966) (12,229,350) (18,074,324) (19,693,316) (12,249,059)

867,022,004$ 797,970,702$ 755,037,343$ 730,913,762$ 693,494,268$ 646,373,358$

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GUILFORD COUNTY BOARD OF EDUCATIONCHANGES IN NET POSITIONLast Ten Fiscal Years

2016 2015 2014 2013ExpensesGovernmental activities:

Instructional programs 478,098,740$ 496,672,358$ 514,570,607$ 522,772,758$ Support services 131,281,385 131,013,635 132,531,215 133,818,636 Community services - - - - Ancillary services 158,689 132,925 117,742 125,219 Non-program charges 13,851,504 11,833,107 9,553,904 7,585,497 Depreciation expense 26,511,087 26,055,250 25,077,703 23,659,131


Business-type activities:School food service 41,074,138 39,699,163 37,899,050 36,116,868 After School Care Enrichment Program 6,321,745 6,065,517 6,248,183 6,134,773

Total business-type activities 47,395,883 45,764,680 44,147,233 42,251,641

Total government-wide expenses 697,297,288$ 711,471,955$ 725,998,404$ 730,212,882$

Program RevenuesGovernmental activities:

Charges for services:Athletics 2,897,076$ 2,480,372$ 2,624,895$ 2,515,459$ Other 6,084,214 5,703,320 5,788,493 1,583,067

Operating grants and contributions 450,782,340 461,132,986 452,751,632 453,237,883 Capital grants and contributions 1,120,332 1,918,004 - -

Total governmental activities program revenues 460,883,962 471,234,682 461,165,020 457,336,409

Business-type activities:Charges for services:

School Food Services 6,426,749 6,687,428 8,518,064 9,062,468 After School Care Enrichment Services 6,555,607 6,128,020 5,933,253 6,160,145

Operating grants and contributions 35,788,254 33,364,767 29,168,263 27,676,203 Capital grants and contributions 19,000 390,041 73,047 545,903

Total business-type activities program revenues 48,789,610 46,570,256 43,692,627 43,444,719

Total government-wide revenues 509,673,572$ 517,804,938$ 504,857,647$ 500,781,128$

Net (expenses) revenuesGovernmental activities (189,017,443)$ (194,472,593)$ (220,686,151)$ (230,624,832)$ Business-type activities 1,393,727 805,576 (454,606) 1,193,078

Government-wide net expense (187,623,716)$ (193,667,017)$ (221,140,757)$ (229,431,754)$

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Table 2Page 1 of 2

2012 2011 2010 2009 2008 2007

507,339,721$ 496,257,925$ 495,000,385$ 500,295,334$ 500,063,627$ 411,417,515$ 129,427,911 129,385,347 130,103,201 132,947,980 129,096,228 159,166,983

- - - - - 457,818 130,491 110,984 248,331 127,852 129,367 -

5,861,299 6,530,094 7,865,127 5,905,810 4,510,602 2,421,575 22,064,683 20,656,556 20,141,569 18,763,312 17,102,208 17,278,832

664,824,105 652,940,906 653,358,613 658,040,288 650,902,032 590,742,723

32,326,822 31,245,461 30,701,147 33,521,249 33,580,512 30,580,879

5,809,138 5,798,215 6,091,434 6,580,507 7,052,197 6,396,847

38,135,960 37,043,676 36,792,581 40,101,756 40,632,709 36,977,726

702,960,065$ 689,984,582$ 690,151,194$ 698,142,044$ 691,534,741$ 627,720,449$

2,424,246$ 2,376,717$ 2,403,771$ 2,217,240$ 2,282,236$ 2,278,015$ 1,649,028 1,517,024 1,608,667 1,458,233 1,608,807 1,719,822

452,428,067 414,477,405 427,772,583 442,394,490 431,928,491 391,086,812 - - - - - 2,486,417

456,501,341 418,371,146 431,785,021 446,069,963 435,819,534 397,571,066

9,302,859 9,719,536 9,930,699 10,429,704 10,737,784 10,535,386

6,138,061 6,214,786 6,313,825 6,580,507 7,166,703 6,241,338 25,714,852 23,913,577 22,352,473 22,518,803 19,651,581 18,718,750

203,390 399,107 176,678 613,970 676,176 333,106

41,359,162 40,247,006 38,773,675 40,142,984 38,232,244 35,828,580

497,860,503$ 458,618,152$ 470,558,696$ 486,212,947$ 474,051,778$ 433,399,646$

(208,322,764)$ (234,569,760)$ (221,573,592)$ (211,970,325)$ (215,082,498)$ (193,171,657)$ 3,223,202 3,203,330 1,981,094 41,228 (2,400,465) (1,149,146)

(205,099,562)$ (231,366,430)$ (219,592,498)$ (211,929,097)$ (217,482,963)$ (194,320,803)$

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GUILFORD COUNTY BOARD OF EDUCATIONCHANGES IN NET POSITIONLast Ten Fiscal Years

2016 2015 2014 2013

General RevenuesGovernmental activities:

Unrestricted county appropriations - operating 183,360,398$ 179,360,398$ 177,130,398$ 175,630,398$

Unrestricted county appropriations - capital 24,975,538 31,916,421 49,249,098 50,280,592

Unrestricted state appropriations - operating - - - -

Unrestricted other state revenues - capital - - 2,092,865 6,400,042

Unrestricted federal aidInvestment earnings, unrestricted 58,585 38,889 59,864 138,289

Insurance recoveries - - - - Miscellaneous, unrestricted 4,527,980 3,862,581 2,820,250 4,325,608


Business-type activities:Investment earnings, unrestricted 12,689 1,097 626 - Miscellaneous, unrestricted 47,899 126,340 117,182 350,790

Total business-type activities 60,588 127,437 117,808 350,790


Transfers Governmental activities (32,466) (33,199) (57,764) (88,874) Business-type activities 32,466 33,199 57,764 88,874

Total government-wide -$ -$ -$ -$

Changes in Net PositionGovernmental activities 23,872,592$ 20,672,497$ 10,608,560$ 6,061,223$ Business-type activities 1,486,781 966,212 (279,034) 1,632,742


Note:This amount includes Indirect Cost Revenue. In prior years, Indirect Cost Revenue was accounted

for in Operating Grants and Contributions.

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Table 2Page 2 of 2

2012 2011 2010 2009 2008 2007

175,165,521$ 175,165,521$ 175,165,521$ 178,188,290$ 170,690,524$ 159,884,204$

92,522,410 70,323,031 56,070,853 58,028,992 73,471,580 123,468,066

- - - 146,514 206,426 203,591

1,214,787 5,002,844 2,722,642 8,054,296 7,126,064 8,594,201 - 19,296,607 - - - -

221,641 303,560 423,112 753,739 1,714,229 1,145,923 - - - 2,178,000 7,057,250 10,250,000

5,000,198 4,184,162 9,333,841 1,991,455 4,294,044 133,702

274,124,557 274,275,725 243,715,969 249,341,286 264,560,117 303,679,687

1,624 729 110 7,305 43,756 144,291 24,683 23,335 - - - -

26,307 24,064 110 7,305 43,756 144,291

274,150,864$ 274,299,789$ 243,716,079$ 249,348,591$ 264,603,873$ 303,823,978$

- - - - - - - - - - - -

-$ -$ -$ -$ -$ -$

65,801,793$ 39,705,965$ 22,142,377$ 37,370,961$ 49,477,619$ 110,508,030$ 3,249,509 3,227,394 1,981,204 48,533 (2,356,709) (1,004,855)

69,051,302$ 42,933,359$ 24,123,581$ 37,419,494$ 47,120,910$ 109,503,175$

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GUILFORD COUNTY BOARD OF EDUCATIONGOVERNMENTAL FUNDS - FUND BALANCESLast Ten Fiscal Years

2016 2015 2014 2013General Fund:

ReservedUnreserved

Total general fund

All other governmental funds:ReservedUnreserved, reported in

Special Revenue FundsCapital Projects Fund

Total all governmental funds

General Fund:Nonspendable:

Inventories 968$ 31,478$ 34,539$ 28,347$ Self insurance deposits 3,062,590 3,246,027 4,101,429 4,745,671

Restricted:Stabilization by state statute 3,459,799 3,114,050 2,015,649 1,749,216

Committed:Capital outlay 3,752,693 3,752,693 3,752,693 3,752,693 Activity buses 88,877 79,369 90,404 89,025

Assigned:Subsequent year's expenditures 1,207,241 - 1,000,000 4,255,166

Unassigned 2,229,326 2,831,585 3,076,418 2,127,313

Total general fund 13,801,494$ 13,055,202$ 14,071,132$ 16,747,431$

All other governmental funds:Restricted:

Capital outlay 2,962,932$ 1,125,061$ 725,061$ 636,036$ Individual schools 3,404,591 3,008,433 3,114,973 3,116,876 Committed:PACE Project 587,371 587,371 - -

Total all governmental funds 20,756,388$ 17,776,067$ 17,911,166$ 20,500,343$

Note:

GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions , is required

to be implemented for financial statements for periods beginning after June 15, 2010.

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Table 3

2012 2011 2010 2009 2008 2007

9,005,601$ 9,989,982$ 7,607,436$ 9,611,715$ 5,206,910 1,686,668 2,929,522 555,307

14,212,511$ 11,676,650$ 10,536,958$ 10,167,022$

44,496,834$ 45,371,219$ 21,699,326$ 51,684,271$

3,578,836 3,484,716 3,536,662 3,541,421 (39,543,707) (42,465,135) (20,972,814) (49,433,535)

22,744,474$ 18,067,450$ 14,800,132$ 15,959,179$

31,277$ 40,097$ 4,708,516 5,175,159

3,006,120 3,189,511

3,140,468 2,528,243 636,036 545,094

10,848,978 3,677,810 3,518,809 6,930,413

25,890,204$ 22,086,327$

-$ 716,546$ 3,001,135 3,189,074

- -

28,891,339$ 25,991,947$

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GUILFORD COUNTY BOARD OF EDUCATIONGOVERNMENTAL FUNDS - CHANGES IN FUND BALANCESLast Ten Fiscal Years

2016 2015 2014 2013Revenues

State of North Carolina 390,676,014$ 391,403,934$ 380,012,997$ 384,338,416$ Guilford County 208,335,936 211,276,819 226,379,496 225,910,991 U.S. Government 50,219,358 59,970,609 64,004,786 60,978,591 Other 24,575,156 23,761,609 22,120,216 22,247,305

Total revenues 673,806,464 686,412,971 692,517,495 693,475,303

ExpendituresCurrent:

Instructional services 498,976,963 510,274,422 505,182,789 508,714,726 System-wide support services 131,539,095 130,450,999 128,858,702 128,903,079 Ancillary services 163,043 135,870 117,742 125,219 Non-program charges 13,851,504 11,833,107 9,553,904 6,949,461 Intergovernmental - - - -

Capital outlay 27,268,255 31,981,636 49,276,741 59,870,671 Debt service - principal 1,120,332 1,918,004 2,065,222 4,718,906 Debt service - interest - - - -

Total expenditures 672,919,192 686,594,038 695,055,100 709,282,062

Revenues over (under) expenditures 887,272 (181,067) (2,537,605) (15,806,759)

Other financing sources (uses)Transfers in (out) (32,466) (33,199) (57,764) (88,874) Insurance recoveries - - - - Installment purchase obligations 2,156,025 82,229 - - Proceeds from capital lease - - - 7,507,567

Net other financing sources (uses) 2,123,559 49,030 (57,764) 7,418,693

Other changes in fund balancesChange in inventories (30,510) (3,062) 6,192 (2,930)

Net change in fund balances 2,980,321$ (135,099)$ (2,589,177)$ (8,390,996)$

Ratio of total debt service tononcapital expenditures 0.18% 0.30% 0.31% 0.74%

Note:The above governmental funds includes General, Special Revenue and Capital Project Funds.

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Table 4

2012 2011 2010 2009 2008 2007

367,695,516$ 355,559,320$ 349,355,142$ 389,494,015$ 384,492,875$ 358,653,073$ 267,687,931 245,488,552 231,236,374 233,194,513 245,656,849 290,133,587 72,099,211 70,739,323 75,363,218 52,846,340 47,398,674 37,215,328 23,207,727 20,859,676 19,546,256 17,698,381 22,793,751 19,196,640

730,690,385 692,646,871 675,500,990 693,233,249 700,342,149 705,198,628

496,287,990 481,523,032 478,797,870 491,306,413 482,779,955 408,555,811 125,252,740 125,013,893 125,973,811 128,644,820 124,988,245 149,223,101

130,491 110,984 248,331 127,852 129,367 463,643 5,861,299 6,558,164 7,865,127 5,905,810 4,498,529 3,937,071

- - - - 7,019,750 10,000,000 95,418,384 81,158,334 56,314,630 66,973,091 87,143,622 141,206,446 1,153,459 2,571,228 1,601,011 3,971,287 4,146,454 2,362,560

- - - - 12,072 1,029

724,104,363 696,935,635 670,800,780 696,929,273 710,717,994 715,749,661

6,586,022 (4,288,764) 4,700,210 (3,696,024) (10,375,845) (10,551,033)

- - - - - - - - - 2,178,000 7,057,250 10,250,000 - - - 4,803,027 2,123,032 - - 3,860,506 - - - -

- 3,860,506 - 6,981,027 9,180,282 10,250,000

(8,820) (2,079) (23,186) (17,685) 36,516 (17,656)

6,577,202$ (430,337)$ 4,677,024$ 3,267,318$ (1,159,047)$ (318,689)$

0.18% 0.40% 0.24% 0.65% 0.74% 0.39%

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GUILFORD COUNTY BOARD OF EDUCATIONGOVERNMENTAL FUNDS - REVENUES BY SOURCELast Ten Fiscal Years

2016 2015 2014 2013Source:

State Public School Fund 388,534,225$ 387,974,989$ 375,870,761$ 379,013,882$ Textbooks 181,789 18,945 269,427 154,849 Other state allocations 3,848,806 3,792,986 3,845,166 3,889,924 Federal Grant Programs Fund 42,785,647 46,735,027 51,361,289 52,041,222 Other federal grants 11,324,060 17,656,274 15,581,171 11,541,142 County funding:

General appropriation 188,681,859 192,598,471 184,018,461 190,104,317 Debt proceeds 19,654,077 18,678,348 42,361,035 35,806,674

Public School Building Capital Fund 3,194 - 27,643 1,681,136 Tuition and fees 67,103 85,379 61,834 49,063 Fines and forfeitures 2,196,512 2,380,595 2,296,397 2,706,862 Interest earned on investments 58,585 38,889 59,864 138,289 Indirect cost allocated 3,732,195 3,413,732 3,590,114 3,295,624 Other local funds 12,738,412 13,039,336 13,174,333 13,052,319

Total revenues 673,806,464$ 686,412,971$ 692,517,495$ 693,475,303$


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Table 5

2012 2011 2010 2009 2008 2007

364,815,519$ 347,940,133$ 342,146,633$ 377,066,394$ 372,645,008$ 343,391,155$ 1,048,545 121,161 996,920 2,784,073 4,783,331 4,576,436 3,888,224 5,066,410 5,089,957 5,436,634 3,966,911 2,091,281

65,496,662 64,922,532 66,858,227 43,899,298 41,935,682 34,785,033 9,837,414 7,658,350 8,504,991 8,947,042 5,462,992 2,430,295

189,347,670 179,998,029 179,798,825 181,686,368 186,927,838 167,361,666 78,340,261 65,490,523 51,437,549 51,508,145 58,729,011 122,771,921

61,328 2,431,616 1,121,632 4,206,914 3,097,625 8,594,201 56,921 57,724 56,390 38,939 38,387 60,943

2,938,756 3,697,723 3,703,364 3,635,194 5,525,003 3,218,683 221,641 303,560 423,112 753,739 1,714,229 1,145,923

3,066,176 3,716,864 3,590,716 1,746,849 3,737,065 3,172,662 11,571,268 11,242,246 11,772,674 11,523,660 11,779,067 11,598,429

730,690,385$ 692,646,871$ 675,500,990$ 693,233,249$ 700,342,149$ 705,198,628$

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GUILFORD COUNTY BOARD OF EDUCATIONGOVERNMENTAL FUNDS - EXPENDITURES BY FUNCTIONLast Ten Fiscal Years

Function Description 2016 2015 2014 2013

INSTRUCTIONAL SERVICES5100 Regular instructional 286,756,895$ 290,437,534$ 287,060,488$ 293,012,974$ 5200 Special populations 83,915,996 83,015,604 79,924,515 80,205,114 5300 Alternative programs 38,869,176 43,832,590 44,571,749 41,110,452 5400 School leadership 46,510,577 46,276,758 45,619,644 46,082,456 5500 Co-curricular 4,453,199 4,257,965 4,305,062 4,405,545 5800 School-based support 38,471,139 42,453,971 43,701,331 43,898,183 5900 Other instructional - - - -

SYSTEM-WIDE SUPPORT SERVICES6100 Support and development 7,538,828 7,873,017 5,836,857 6,145,930 6200 Special population support and

development 5,387,948 5,064,537 4,050,836 3,905,811 6300 Alternative programs and services

support and development 5,761,222 2,542,847 1,343,400 1,327,232 6400 Technology support 8,682,519 8,481,863 9,164,692 8,094,994 6500 Operational support 86,835,782 88,755,793 91,726,489 91,854,178 6600 Financial and human resources 8,559,454 9,050,526 8,393,785 8,219,263 6700 Accountability 1,797,240 1,617,382 1,614,342 1,563,734 6800 System-wide pupil support 1,117,976 1,029,447 962,770 976,886 6900 Policy, leadership, and public

relations 5,881,671 6,055,025 5,765,532 6,815,052

ANCILLARY SERVICES7100 Ancillary Services 4,833 11,697 7,343 11,969 7200 Nutrition services 158,210 124,173 110,399 113,249 7900 Other ancillary services - - - -

NON-PROGRAM CHARGES8100 Payments to other governmental

units and transfers of funds 13,827,940 11,813,669 9,553,903 6,949,462

CAPITAL OUTLAY9100 Category I Projects 23,468,986 25,835,262 46,515,656 44,634,324 9200 Category II Projects 449,279 2,695,556 2,687,315 2,966,796 9300 Category III Projects 4,470,322 5,368,822 2,138,992 16,988,456

Total expenditures 672,919,192$ 686,594,038$ 695,055,100$ 709,282,060$


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Table 6

2012 2011 2010 2009 2008 2007

285,353,955$ 275,716,314$ 270,803,551$ 284,351,755$ 285,334,205$ 197,701,246$ 79,011,082 77,467,046 77,546,031 80,199,487 72,857,620 58,535,529 44,134,739 42,177,745 44,187,784 39,277,080 38,219,436 - 44,351,202 44,000,165 42,996,306 43,604,877 34,157,924 11,958,625 4,415,872 4,189,747 4,225,155 4,119,570 13,219,390 -

39,021,140 37,972,014 39,039,043 39,753,646 38,991,380 36,080,041 - - - - - 104,280,347

5,356,801 6,009,916 6,760,935 9,366,313 8,457,018 592,490

3,836,737 3,742,477 4,007,289 4,203,222 4,233,261 8,058,237

1,767,597 1,185,247 1,313,262 1,059,916 1,016,653 2,703,901 8,145,245 8,230,532 8,269,821 9,640,889 8,468,667 29,527,038

88,297,030 89,004,026 89,394,671 89,925,822 88,034,732 74,771,328 8,533,630 7,616,618 7,292,738 7,346,982 7,400,485 12,056,081 1,611,185 1,812,053 1,925,799 2,074,900 2,181,146 -

965,610 964,620 853,584 720,349 1,014,510 -

6,738,905 6,476,475 6,155,712 4,306,427 4,181,773 21,514,050

51,856 16,540 16,562 18,657 129,367 396,292 78,635 94,444 - - - -

- - 231,769 109,196 - 67,350

5,861,299 6,530,094 7,865,127 5,905,808 11,518,279 13,937,070

87,830,797 73,276,856 52,056,536 55,524,796 70,801,597 131,953,953 7,544,194 4,035,851 4,232,094 6,273,530 13,626,913 9,033,072 1,196,852 6,416,855 1,627,011 9,146,052 6,873,638 2,583,011

724,104,363$ 696,935,635$ 670,800,780$ 696,929,274$ 710,717,994$ 715,749,661$

- 86 -

GUILFORD COUNTY BOARD OF EDUCATIONPROPERTY TAX LEVIES AND COLLECTIONS FOR GUILFORD COUNTYLast Ten Fiscal Years

Taxes Levied Subsequent TotalFiscal for the Years' Adjusted Percent of

Year Fiscal Year1 Adjustments Levy Amount Original Levy

2007 287,334,796$ (2,215,600)$ 285,119,196$ 283,471,941$ 98.66%

2008 308,030,341$ (378,374)$ 307,651,967$ 303,163,588$ 98.42%

2009 336,841,767$ (294,068)$ 336,547,699$ 330,670,794$ 98.17%

2010 339,838,448$ (295,199)$ 339,543,249$ 333,596,483$ 98.16%

2011 339,943,072$ (266,513)$ 339,676,559$ 333,063,607$ 97.98%

2012 363,248,000$ (361,887)$ 362,886,113$ 355,095,355$ 97.76%

2013 2 365,428,942$ (1,272,965)$ 364,155,977$ 356,582,243$ 97.58%

2014 372,017,706$ (498,285)$ 371,519,421$ 366,529,630$ 98.52%

2015 371,794,827$ (661,096)$ 371,133,731$ 368,321,489$ 99.07%

2016 373,904,683$ -$ 373,904,683$ 370,755,116$ 99.16%

Notes: 1

2

Source:

Original levy adjusted for discoveries, penalties, discounts allowed and releases as of fiscalyear end of the levy.

A revaluation of real property is required by the North Carolina General Statutes at leastevery eight years. The latest revaluation is reflected in the increased real property values infiscal year 2013 which generally result in appeals of these revalued amounts and thus,larger adjustments due to releases based on these appeals.

Guilford County, North Carolina, Comprehensive Annual Financial Report for the YearEnded June 30, 2016.

Collected within theFiscal Year of the Levy

- 87 -

Table 7

Collections in Percent ofSubsequent Adjusted

Years Amount Tax Levy

1,082,943$ 284,554,884$ 99.80%

3,714,566$ 306,878,154$ 99.75%

4,909,326$ 335,580,120$ 99.71%

5,005,171$ 338,601,654$ 99.72%

5,549,063$ 338,612,670$ 99.69%

6,162,981$ 361,258,336$ 99.55%

5,343,949$ 361,926,192$ 99.39%

2,529,708$ 369,059,338$ 99.34%

1,246,524$ 369,568,013$ 99.58%

-$ 370,755,116$ 99.16%

Collected within theFiscal Year of the Levy

- 88 -

GUILFORD COUNTY BOARD OF EDUCATIONASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYFOR GUILFORD COUNTYLast Ten Fiscal Years

PublicService

Personal Companies'Property2 Property2

EstimatedAssessed Actual Assessed Assessed

Fiscal Taxable Taxable Taxable Taxable

Year Value Value Value Value

2007 33,648,245,400$ 35,006,497,503$ 7,548,094,997$ 1,079,835,566$

2008 34,819,671,635$ 37,553,571,651$ 7,476,297,491$ 1,101,662,076$

2009 35,994,252,248$ 39,295,035,205$ 7,459,633,640$ 1,134,193,063$

2010 36,596,181,356$ 40,193,499,567$ 7,223,197,327$ 1,072,382,177$

2011 36,814,403,214$ 38,743,846,784$ 7,017,828,595$ 1,034,274,005$

2012 37,039,761,422$ 35,711,301,024$ 7,304,372,150$ 1,013,624,243$

20133 36,867,575,947$ 37,030,510,192$ 7,610,406,089$ 1,067,428,654$

2014 36,986,215,133$ 37,224,451,623$ 8,246,115,049$ 1,065,598,325$

2015 37,288,572,740$ 38,185,942,386$ 8,207,816,947$ 1,103,440,544$

2016 37,661,151,234$ 39,365,685,412$ 8,497,141,229$ 1,226,988,869$

Notes: 1

2

3

4

Source:

Estimated actual taxable value of real property is calculated by dividing taxable assessed value by areal estate assessment sales ratio study percentage by county obtained from the North CarolinaDepartment of Revenue Tax Research Division.

Personal property is appraised each year and assessed at 100% of appraised value. Public servicecompanies' property includes real and personal property of utilities, railroads and airlines, etc. Theseassessments are made by the North Carolina Department of Revenue with no distinction between realand personal property.

A revaluation of real property is required by the North Carolina General Statutes at least every eightyears. The latest revaluation is reflected in the decreased real property values in fiscal year 2013 froma down market.

Per $100 of assess value. See Table 9 for details of the County's total direct rate, a weighted averagerate.

Guilford County, North Carolina, Comprehensive Annual Financial Report for the Year EndedJune 30, 2016.

Total Real Property1

- 89 -

Table 8

Ratio ofTotal

AssessedTo Total

Estimated EstimatedAssessed Actual ActualTaxable Taxable Taxable Total DirectValue Value Value Tax Rate4

42,276,175,963$ 43,634,428,066$ 96.9% 0.6829

43,397,631,202$ 46,131,531,218$ 94.1% 0.7130

44,588,078,951$ 47,888,861,908$ 93.1% 0.7575

44,891,760,860$ 48,489,079,071$ 92.6% 0.7590

44,866,505,814$ 46,795,949,384$ 95.9% 0.7592

45,357,757,815$ 44,029,297,417$ 103.0% 0.8040

45,545,410,690$ 45,708,344,935$ 99.6% 0.8042

46,297,928,507$ 46,536,164,997$ 99.5% 0.7938

46,599,830,231$ 47,497,199,877$ 98.1% 0.7981

47,385,281,332$ 49,089,815,510$ 96.5% 0.7896

Total

- 90 -

GUILFORD COUNTY BOARD OF EDUCATIONPROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTSFOR GUILFORD COUNTY (PER $100 OF ASSESSED VALUE)Last Ten Fiscal Years

2007 2008 2009 2010County Direct Rates:

General Levy1:Property taxed at current year's

rate 0.6367 0.6693 0.7148 0.7164 Registered motor vehicles at

prior year's rate 0.0241 0.0211 0.0212 0.0210 Total general direct rate 0.6608 0.6904 0.7360 0.7374

Fire Protection Districts2 0.0221 0.0226 0.0215 0.0216

Total direct rate 0.6829 0.7130 0.7575 0.7590

City Rates:Burlington3 0.6247 0.6250 0.6250 0.5904 Greensboro 0.6158 0.6369 0.6374 0.6375 High Point 0.6075 0.6323 0.6330 0.6330 Kernersville3 N/A N/A 0.5500 0.4975

Town Rates:Archdale4 0.2600 0.2900 0.2900 0.2900 Gibsonville4 0.5150 0.5150 0.5150 0.5100 Jamestown 0.3500 0.3500 0.3693 0.3700 Oak Ridge 0.0863 0.0863 0.0863 0.0863 Pleasant Garden 0.0500 0.0500 0.0260 0.0250 Sedalia 0.2000 0.2000 0.2000 0.2000 Summerfield5 0.0395 0.0390 0.0351 0.0018 Whitsett None None 0.0500 0.0500

Sedgefield Sanitary District 0.0257 0.0298 0.0300 0.0300

Notes:

1

2

3

4

5

Source:

The difference between the Archdale and Gibsonville total direct rates and the reported city-wide rates areconsidered insignificant.

For FY 2011, city-wide rates are reported, as data to compute total direct rates is not available.

Guilford County, North Carolina, Comprehensive Annual Financial Report for the Year Ended June 30, 2016.

Fiscal Year Taxes are Payable

All taxable property is subject to a county-wide tax. The general County direct rate differs from the county-widerate approved by the Board of Commissioners each fiscal year because direct rates are a weighted averagerate. The most significant differences are from certain registered motor vehicles levied at prior year tax rates inaccordance with North Carolina General Statutes.

Most property in unincorporated areas is subject to one of twenty-nine special fire district taxes. The fireprotections districts' direct rate is a combined rate as the impact of each individual fire district is consideredinsignificant. The direct rate is much lower than the individual rates approved by the Board of Commissionerseach fiscal year because direct rates are a weighted average rate and are impacted by assessed taxable valuesoutside the fire protection districts' boundaries.

Burlington's and Kernersville's total direct rates are computed only with regard to assessed taxable value inGuilford County.

- 91 -

Table 9

2011 2012 2013 2014 2015 2016

0.7182 0.7609 0.7580 0.7471 0.7700 0.7600

0.0192 0.0203 0.0225 0.0229 - - 0.7374 0.7812 0.7805 0.7700 0.7700 0.7600 0.0218 0.0228 0.0237 0.0238 0.0281 0.0296

0.7592 0.8040 0.8042 0.7938 0.7981 0.7896

0.5900 0.5801 0.5800 0.5800 0.5800 0.5800 0.6352 0.6349 0.6351 0.6350 0.6350 0.6350 0.6330 0.6613 0.6746 0.6750 0.6646 0.6500 0.4975 0.4975 0.4975 0.5273 0.5424 0.5425

0.2900 0.2900 0.2900 0.2900 0.2900 0.2900 0.5100 0.5100 0.5100 0.5100 0.5100 0.5100 0.3895 0.3900 0.3948 0.4434 0.4544 0.4550 0.0863 0.0863 0.0863 0.0863 0.0863 0.0863 0.0250 0.0250 0.0250 0.0250 0.0250 0.0250 0.2729 0.2750 0.2750 0.2750 0.2750 0.2750 0.0350 0.0350 0.0350 0.0350 0.0279 0.0275 0.0500 0.0500 0.0500 0.0500 0.1438 0.1500

0.0300 0.0300 0.0358 0.0360 0.0360 0.0360

- 92 -

Table 10

GUILFORD COUNTY BOARD OF EDUCATIONRATIO OF OUTSTANDING DEBT BY TYPE FOR GUILFORD COUNTYLast Ten Fiscal Years

Other Percentage Governmental

General of Estimated Activities Debt PercentageObligation Actual Capital Leases Total of

Fiscal Bonds Taxable Value Per and Installment Primary Personal PerYear Outstanding1 of Property2 Capita Financings1 Government1 Income3 Capita3

2007 592,036,829$ 1.36% 1,290.43 571,479$ 592,608,308$ 3.45% 1,291.67

2008 563,189,520$ 1.22% 1,202.20 5,422,364$ 568,611,884$ 3.19% 1,213.77

2009 709,758,171$ 1.48% 1,485.44 4,783,962$ 714,542,133$ 3.99% 1,495.46

2010 846,091,651$ 1.74% 1,747.47 4,147,088$ 850,238,739$ 4.80% 1,756.04

2011 806,334,450$ 1.72% 1,646.67 3,571,400$ 809,905,850$ 4.49% 1,654.03

2012 932,027,810$ 2.12% 1,882.26 24,498,508$ 956,526,318$ 5.11% 1,931.73

2013 879,076,323$ 1.92% 1,754.58 23,222,923$ 902,299,246$ 4.57% 1,800.93

2014 824,376,111$ 1.77% 1,627.24 21,947,338$ 846,323,449$ 4.24% 1,670.56

2015 769,783,196$ 1.62% 1,503.13 20,671,754$ 790,454,950$ 3.82% 1,543.50

2016 736,321,847$ 1.50% 1,422.57 19,396,169$ 755,718,016$ 3.56% 1,460.04

Notes:

Source:Guilford County, North Carolina, Comprehensive Annual Financial Report for the Year EndedJune 30, 2016.

1 Details regarding the County's outstanding debt can be found in the notes to the Guilford Countyfinancial statements and includes unamortized bond issuance premiums less unamortized swaptermination fees. Amounts for fiscal year 2011 and prior do not include bond refunding charges as aresult of GASB 63.

2 See Table 8 for estimated actual taxable value of property data.

3 See Table 14 for personal income and population data. These ratios are calculated using personalincome and population for the prior calendar year.

- 93 -

Table 11

GUILFORD COUNTY BOARD OF EDUCATIONDIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBTFOR GUILFORD COUNTYLast Ten Fiscal Years

EstimatedShare of

Estimated Direct andDebt Percentage Overlapping

Outstanding1 Applicable1,2 Debt

Direct:760,593,956$ 100.00% 760,593,956$

Overlapping:217,803,844 100.00% 217,803,844

69,040,058 94.72% 65,394,743

Town of Jamestown 896,295 100.00% 896,295

12,659,485 4.00% 506,379

Town of Gibsonville 564,225 48.61% 274,270

City of Burlington 7,231,145 1.74% 125,822

1,622,807 2.70% 43,816

Total overlapping debt 285,045,169

Total direct and overlapping debt 1,045,639,125$

Notes:

1

2

Source:

Debt and assessed valuation information were obtained from each municipality. Debt includes all bondeddebt and installment purchase obligations for governmental activities.

The percentage of overlap is based on assessed property values.

Guilford County, North Carolina, Comprehensive Annual Financial Report for the Year Ended June30, 2016.

Jurisdiction

Guilford County

City of Greensboro

City of High Point

Town of Kernersville

City of Archdale

- 94 -

Table 12

GUILFORD COUNTY BOARD OF EDUCATIONPRINCIPAL TAXPAYERS IN GUILFORD COUNTYCurrent Year and Nine Years Ago

Percentage Percentageof Total of Total

Assessed Assessed Assessed AssessedValue Rank Valuation Value Rank Valuation

Duke Energy Corporation 429,018,935$ 1 0.91% 337,353,781$ 1 0.80%

Lorillard Tobacco Company 324,602,826 2 0.69% 272,938,416 2 0.65%

Procter & Gamble ManufacturingCompany 323,744,339 3 0.68%

Koury Corporation 241,264,415 4 0.51% 249,093,944 3 0.59%

American Express Travel RelatedServices Co. 226,306,504 5 0.48%

CBL LLC 171,123,700 6 0.36%

Lincoln National Life Insurance(formerly Jefferson-Pilot) 157,869,609 7 0.33%

International Home FurnishingsCenter 144,321,300 8 0.30% 182,030,139 4 0.43%

Highwoods Forsyth LTD 137,584,338 9 0.29% 154,942,200 9 0.37%

Piedmont Natural Gas 137,108,189 10 0.29%

BellSouth 175,604,569 6 0.41%

Starmount Company 165,815,808 7 0.39%

RF Micro Devices, Inc. 181,864,823 5 0.43%

TYCO Electronics 157,197,364 8 0.37%

Liberty Properties Limited Partnership 151,108,835 10 0.36%

2,292,944,155$ 4.84% 2,027,949,879$ 4.80%

Source:Guilford County, North Carolina, Comprehensive Annual Financial Report for the Year EndedJune 30, 2016.

Fiscal Year 2007Fiscal Year 2016

Taxpayer

- 95 -

GUILFORD COUNTY BOARD OF EDUCATIONLEGAL DEBT MARGIN INFORMATIONFOR GUILFORD COUNTY (IN THOUSANDS)Last Ten Fiscal Years

2007 2008 2009 2010

3,382,094$ 3,471,810$ 3,567,046$ 3,591,341$ 603,424 1,232,525 1,204,916 1,158,903

2,778,670$ 2,239,285$ 2,362,130$ 2,432,438$

17.84% 35.50% 33.78% 32.27%

Source:Guilford County, North Carolina, Comprehensive Annual Financial Report for the Year Ended June 30, 2016.

Debt limitTotal net debt applicable to limit

Legal debt margin

Total net debt applicable to limit as apercentage of debt limit

- 96 -

Table 13

2011 2012 2013 2014 2015 2016

3,589,320$ 3,628,621$ 3,643,633$ 3,703,834$ 3,727,986$ 3,790,823$ 1,185,811 1,167,675 1,118,988 1,068,470 979,518 916,160

2,403,509$ 2,460,946$ 2,524,645$ 2,635,364$ 2,748,468$ 2,874,663$

33.04% 32.18% 30.71% 28.85% 26.27% 24.17%

Legal Debt Margin Calculation for Fiscal Year 2016

Assessed value of taxable property 47,385,281,332$

Debt limit (8% of total assessed value) 3,790,822,507$

Debt applicable to limit:Bonded debt 687,935,000 Bonds authorized, unissued 210,220,000 Limited obligation bonds and obligations

under purchase money installment contracts 19,396,169

Gross debt 917,551,169 Less statutory deductions:

1,391,750

Net amount of debt applicable to debt limit 916,159,419

Legal debt margin 2,874,663,088$

Bonds issued and outstanding for water purposes

- 97 -

Table 14

GUILFORD COUNTY BOARD OF EDUCATIONDEMOGRAPHIC STATISTICS FOR GUILFORD COUNTYLast Ten Fiscal Years

Personal Per PublicFiscal Income2 Capita Median School Unemployment

Year Population1 (in thousands) Income3 Age4 Enrollment5 Rate6

2007 458,792 17,194,148$ 37,477$ 36.25 69,677 4.7%

2008 468,466 17,850,428$ 38,104$ 36.29 70,707 6.0%

2009 477,809 17,899,203$ 37,461$ 36.33 70,968 10.6%

2010 484,180 17,717,115$ 36,592$ 36.39 70,710 11.1%

2011 489,657 18,023,785$ 36,809$ 36.52 71,227 10.4%

2012 495,165 18,717,732$ 37,801$ 36.54 71,587 9.5%

2013 501,018 19,726,081$ 39,372$ 36.62 71,885 8.2%

2014 506,610 19,941,183$ 39,362$ 36.73 71,787 6.4%

2015 512,119 20,698,826$ 40,418$ 36.89 71,502 5.8%

2016 517,600 21,220,565$ 40,998$ 37.05 71,429 5.4%

Notes:Calendar years 2007 through 2015: Bureau of Economic Analysis, U.S. Department of CommerceCalendar year 2016: United States Census Bureau estimates.

Computed as a factor of population times per capita income.

Calendar years 2007 through 2015: Bureau of Economic Analysis, U.S. Department of CommerceCalendar year 2016: Piedmont Triad Council of Governments estimate.

Fiscal years 2007 through 2016: North Carolina Office of State Planning estimates.

Source:

Average daily membership of Guilford County Schools as compiled by North CarolinaDepartment of Public Instruction.

6 North Carolina Employment Security Commission-Calendar year annual average except for2016 which is the average adjusted monthly rate for January through June.

Guilford County, North Carolina, Comprehensive Annual Financial Report for the YearEnded June 30, 2016.

4

5

1

2

3

- 98 -

Table 15

GUILFORD COUNTY BOARD OF EDUCATIONPRINCIPAL EMPLOYERS IN GUILFORD COUNTYCurrent Year and Nine Years Ago

Percentage Percentageof Total of TotalCounty County

Employees Rank Employment Employees Rank Employment

Guilford County School System 10,105 1 4.19% 9,011 1 3.83%

Cone Health 9,287 2 3.85% 7,440 2 3.16%

City of Greensboro 2,945 3 1.22% 2,881 3 1.22%

Ralph Lauren Corporation 2,853 4 1.18%

Guilford County Government 2,603 5 1.08% 2,659 5 1.13%

High Point Regional Health System 2,500 6 1.04% 2,390 7 1.02%

University of North Carolina at Greensboro 2,391 7 0.99% 2,500 6 1.06%

United States Postal Service 2,300 8 0.95% 2,800 4 1.19%

The Volvo Group 2,200 9 0.91% 1,600 10 0.68%

Bank of America 1,800 10 0.75% 2,200 8 0.94%

North Carolina A & T State University 1,710 9 0.73%

Total County Employment 2 241,032 235,261

Notes:

Source:

1

2

Principal employer data is from the Greensboro Economic Development Alliance, the High PointEconomic Development Corporation and individual employers.

Total County employment is for calendar years 2007 and 2016 from the North Carolina EmploymentSecurity Commission civilian labor force estimates.

Fiscal Year 2016 Fiscal Year 2007

Employers1

Guilford County, North Carolina, Comprehensive Annual Financial Report for the Year EndedJune 30, 2016.

- 99 -

Table 16

GUILFORD COUNTY BOARD OF EDUCATIONFULL-TIME EQUIVALENT EMPLOYEES BY FUNCTIONLast Ten Fiscal Years

Fiscal Instructional SupportYear Programs Services Total

2007 6,325 2,686 9,011

2008 6,534 2,852 9,386

2009 6,662 3,005 9,667

2010 6,437 3,088 9,525

2011 6,494 3,051 9,545

2012 6,494 3,046 9,540

2013 6,537 2,949 9,486

2014 6,518 2,986 9,504

2015 6,377 3,013 9,390

2016 6,296 2,932 9,228

Source:Statistical Profile published by the State Board of Education, NorthCarolina Department of Public Instruction.

- 100 -

GUILFORD COUNTY BOARD OF EDUCATIONCOMPARATIVE AVERAGE DAILY MEMBERSHIP - SCHOOLS ANDSPECIAL PROGRAMSLast Ten Fiscal Years

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

ELEMENTARY SCHOOLSAlamance Elementary 488 477 824 836 809 800 789 829 836 843 Alderman Elementary 396 374 395 366 377 343 331 351 361 364 Allen Jay Elementary 408 423 424 428 432 429 466 487 493 463 Archer Elementary 407 435 429 448 453 436 399 390 419 394 Bessemer Elementary 479 457 462 408 384 396 373 406 439 425 Bluford Elementary 293 285 290 302 347 331 335 358 345 390 Brightwood Elementary 590 569 573 574 717 718 703 722 704 808 Brooks Global 409 402 406 405 409 393 397 393 400 397 Claxton Elementary 607 578 614 611 626 624 613 681 638 616 Colfax Elementary 603 591 613 704 624 635 650 641 593 1,019 Cone Elementary 488 462 435 384 402 395 420 480 469 482 Erwin Elementary 290 292 310 300 299 311 299 282 254 263 Fairview Elementary 392 389 401 441 431 410 384 455 478 609 Falkener Elementary 546 543 588 602 552 591 594 573 580 583 Florence Elementary 683 688 704 740 776 856 817 835 750 725 Foust Elementary 345 366 376 377 323 313 339 326 328 338 Frazier Elementary 296 263 282 291 300 334 372 348 353 346 Gibsonville Elementary 463 447 448 459 462 458 437 462 439 419 Gillespie Park Elementary 258 254 240 223 218 226 231 266 267 256 Greene Elementary 504 509 485 502 509 521 465 480 467 454

Guilford Middle1 0 177 Guilford Elementary 589 590 609 560 577 548 523 569 578 356 Hampton Elementary 300 253 259 243 264 249 252 265 300 332 Hunter Elementary 468 471 466 434 438 424 408 434 447 441 Irving Park Elementary 626 648 626 629 640 666 710 691 671 681 Jamestown Elementary 408 431 436 495 507 500 528 558 636 527 Jefferson Elementary 624 625 637 686 718 750 713 748 718 764 Jesse Wharton Element. 490 471 510 540 763 808 876 883 967 963 Johnson Street Global

Studies 291 267 249 223 236 243 248 272 255 371 Jones Elementary 676 706 705 688 716 699 690 682 706 702 Joyner Elementary 286 299 326 339 352 374 401 382 405 398 Kirkman Park Elementary 289 275 281 240 252 249 205 175 184 183 Laughlin Elementary 0 350

Lincoln Academy2 169 170 179 185 136 131 121 101 99 112 Lindley Elementary 491 493 457 421 391 408 443 403 400 343 Madison Elementary 224 199 207 216 243 255 271 252 284 582 McLeansville Elementary 369 364 439 421 409 416 389 416 389 365 McNair Elementary 581 598 561 480Millis Road Elementary 477 490 490 479 492 493 465 465 467 455 Monticello-Brown Summit

Elementary 371 359 367 393 416 440 435 506 542 741 Montlieu Avenue Element. 669 638 622 524 445 406 418 458 467 434 Morehead Elementary 621 594 572 548 533 521 479 478 466 454 Murphey Elementary 314 293 311 318 338 339 350 377 391 380 Nathanael Greene

Elementary 253 247 273 296 326 366 364 377 402 404 Northern Elementary 599 581 598 672 860 838 836 834 715 Northwood Elementary 605 585 573 640 595 544 540 503 530 509 Oak Hill Elementary 462 458 420 426 431 415 389 377 382 371 Oak Ridge Elementary 745 708 667 685 682 685 659 740 736 769

Average Daily Membership ("ADM")

- 101 -

Table 17Page 1 of 4

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

467 453 791 799 781 768 755 795 803 809 381 359 375 350 363 329 318 337 348 349 387 397 404 406 414 410 442 464 468 440 389 414 412 431 435 419 382 376 401 380 449 435 438 380 362 373 351 384 418 399 279 270 276 287 333 317 321 342 332 374 564 537 546 545 686 682 666 696 671 766 400 395 398 394 399 383 385 382 390 387 581 553 588 584 603 596 585 653 614 595 579 565 586 673 601 605 620 615 563 976 462 433 407 358 380 370 395 450 442 452 280 281 300 288 289 299 286 270 243 252 372 367 376 415 408 388 366 435 455 572 512 508 554 566 525 562 563 542 551 553 656 659 676 707 748 820 783 802 721 698 328 347 358 356 309 299 321 311 313 320 284 250 270 277 286 319 353 337 338 332 445 425 430 440 446 438 418 439 420 402 242 236 224 210 211 215 218 253 250 241 486 490 471 484 494 501 446 462 448 434

167 565 563 581 534 554 524 499 548 551 339 288 239 248 232 251 241 242 255 288 316 444 447 444 413 419 405 390 415 426 423 599 615 596 599 613 634 672 658 639 647 389 408 416 472 492 480 504 536 607 504 597 591 609 653 687 713 680 715 686 732 471 454 490 521 738 774 836 845 923 917

277 256 238 214 226 230 239 265 247 357 645 674 675 659 690 670 657 655 674 667 275 287 313 325 341 356 383 365 387 376 273 260 265 227 241 236 193 168 176 174

334 163 166 173 176 115 126 116 98 95 107 467 465 436 400 375 389 419 383 380 324 215 190 197 206 235 244 260 243 273 555 353 346 420 398 392 395 370 398 368 347 557 572 540 460 458 470 470 459 474 473 448 448 450 438

350 341 351 374 397 418 415 485 517 706 638 611 595 500 427 391 399 438 445 414 596 573 553 526 518 503 459 462 449 439 302 280 298 305 327 327 338 365 378 368

240 233 261 284 313 348 347 360 381 383 577 556 574 645 831 807 800 802 690 570 548 542 603 568 518 511 480 501 481 442 437 400 404 412 394 368 360 361 354 721 684 643 660 660 657 629 710 708 740

Average Daily Attendance ("ADA")

- 102 -


2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

ELEMENTARY SCHOOLS (CONTINUED)Oak View Elementary 496 495 477 478 480 493 495 516 595 628 Parkview Elementary 348 354 332 345 337 390 420 473 479 450 Pearce Elementary 700 681 660 659 732 726 757 754 777 - Peck Elementary 330 343 338 301 344 367 365 372 344 353 Peeler Elementary 345 339 364 378 376 357 348 337 339 350 Pilot Elementary 702 724 786 882 869 832 859 879 894 921 Pleasant Garden Element. 473 486 502 521 514 518 525 552 570 573 Rankin Elementary 768 760 736 759 715 668 617 635 590 609 Reedy Fork Elementary 412 424 439 480 522 521 482 442 389 - Sedalia Elementary 453 426 430 407 474 452 485 460 424 363 Sedgefield Elementary 522 542 500 498 445 444 441 475 471 418 Shadybrook Elementary 458 495 531 590 594 606 615 622 581 624 Southern Elementary 305 306 325 327 328 287 249 285 270 261 Southwest Elementary 808 722 681 715 796 837 814 798 784 849 Sternberger Elementary 361 356 364 353 379 383 346 331 332 423 Stokesdale Elementary 470 461 464 505 525 536 564 566 554 512 Summerfield Elementary 627 565 594 664 691 660 698 678 726 761 Sumner Elementary 639 655 593 575 531 576 553 570 573 574 Triangle Lake Elementary 469 457 476 470 433 405 392 371 388 405 Union Hill Elementary 493 468 484 459 483 456 441 307 288 412 Vandalia Elementary 252 248 264 264 267 264 253 252 268 218 Washington Elementary 343 341 358 354 321 272 258 234 193 153 Wiley Acceleration/

Enrichment 308 297 291 249 238 238 244 270 232 236

Total element. schools 32,024 31,562 32,128 32,415 32,604 32,575 32,348 32,890 32,811 32,451

MIDDLE SCHOOLSAllen Jay Preparatory

Academy 3 294 189 100 0 - - - - - - Allen Middle 652 705 703 704 692 686 660 700 750 778 Aycock Middle 611 608 598 620 588 635 618 655 681 677 Brown Summit Middle 240 237 242 245 243 236 233 224 200 211 Eastern Middle 887 902 894 972 983 943 913 887 892 892 Ferndale Middle 740 797 856 881 867 833 757 708 658 592

Guilford Middle3 645 708 719 750 747 726 738 725 725 738 Hairston Middle 660 727 740 684 626 571 544 598 648 649 High School Ahead

Academy 98 84 95 96 100 98 98 97 91 - Jackson Middle 497 511 479 440 440 431 418 434 486 530 Jamestown Middle 1,035 1,097 1,182 1,154 1,135 1,083 1,032 1,052 1,089 1,177 Johnson Street Global

Studies3 150 138 128 115 114 104 95 91 112 - Kernodle Middle 753 829 855 971 956 961 989 970 1,002 962 Kiser Middle 757 784 823 875 947 824 758 704 752 889

Lincoln Academy3 507 511 536 577 599 567 580 592 591 635 Mendenhall Middle 731 820 862 930 930 983 965 933 962 958 Northeast Middle 731 768 845 828 864 835 829 841 911 969 Northern Middle 863 889 953 949 934 990 1,029 1,012 846 223 Northwest Middle 976 1,010 988 992 963 971 974 917 868 1,098 Penn-Griffin School for

the Arts3 437 474 478 444 390 434 443 426 432 510


- 103 -

Table 17Page 2 of 4

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

469 468 454 457 461 471 472 493 568 594 328 334 314 328 320 369 395 447 453 428 674 653 637 632 707 694 723 726 747 - 313 324 323 286 329 347 340 353 324 334 329 324 352 364 361 343 333 323 325 337 671 690 749 839 837 796 819 844 857 878 450 461 479 496 493 492 498 525 542 540 731 721 700 718 685 639 585 604 559 572 394 400 418 457 500 496 457 423 371 - 431 402 412 388 458 431 462 441 408 348 496 512 476 470 427 423 419 451 448 399 441 471 509 568 575 582 589 595 556 597 290 288 311 312 312 273 238 270 259 249 779 695 654 688 769 805 782 768 757 818 349 341 351 338 366 369 331 321 320 405 452 440 446 485 507 517 543 541 534 490 606 539 569 638 669 635 669 651 697 731 611 624 563 546 509 550 523 546 550 547 450 438 457 447 418 385 370 353 369 383 471 441 459 435 461 435 416 292 275 392 240 236 252 251 257 255 243 244 254 208 328 326 345 334 307 258 241 220 183 146

285 277 269 234 224 223 228 251 215 220

30,603 30,045 30,707 28,868 31,321 31,134 30,824 31,484 31,360 30,956

284 184 96 - - - - - - - 619 668 668 672 657 649 624 662 706 740 582 578 569 589 565 609 588 628 645 638 232 228 235 237 237 228 224 217 193 204 846 854 849 918 925 881 851 826 825 824 695 744 809 823 812 774 704 663 608 543 614 673 684 716 713 689 699 690 687 700 609 675 693 639 590 536 509 559 600 605

94 80 88 91 95 91 91 87 81 - 459 470 447 410 416 402 391 408 452 485 978 1,031 1,127 1,109 1,086 1,040 981 1,009 1,041 1,129

143 132 124 110 113 104 92 88 108 - 721 790 820 928 920 919 946 932 963 925 712 729 780 826 898 774 711 662 701 829 490 497 518 557 592 545 555 574 569 609 693 766 811 880 884 927 909 880 906 904 688 723 797 782 821 786 782 798 856 906 823 842 907 906 901 953 986 975 814 216 934 958 944 947 924 927 928 875 829 1,048

417 463 458 423 392 416 423 405 408 482


- 104 -


2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

MIDDLE SCHOOLS (CONTINUED)Southeast Middle 939 982 1,017 983 1,033 1,018 1,024 1,004 982 1,036 Southern Middle 720 713 766 797 845 783 798 763 735 720 Southwest Middle 1,083 1,132 1,160 1,146 1,103 1,087 1,104 1,088 1,093 1,097 Welborn Middle 387 428 465 486 508 522 543 576 561 563

Total middle schools 15,393 16,043 16,484 16,639 16,607 16,321 16,142 15,997 16,067 15,904

HIGH SCHOOLSAndrews High 841 844 834 744 789 860 870 860 886 945 Bennett Middle College

High 104 108 112 101 112 114 103 102 105 89 Dudley High 1,351 1,324 1,310 1,340 1,373 1,449 1,493 1,479 1,415 1,473 Eastern High 1,134 1,130 1,163 1,177 1,186 1,215 1,199 1,138 1,037 1,015 Greensboro College Middle

College High 119 128 129 120 123 121 118 118 119 112 Grimsley High 1,689 1,676 1,735 1,759 1,700 1,699 1,715 1,785 1,820 1,772 GTCC East Middle College

High 120 130 135 137 129 128 125 124 129 118 GTCC Middle College High 176 180 179 168 149 160 158 148 136 135 Guilford Early College High 196 196 193 194 199 194 193 193 193 192 High Point Central High 1,402 1,393 1,354 1,371 1,367 1,294 1,287 1,255 1,193 1,208 High Point Central

Academy 141 136 130 137 133 135 124 97 94 94 High Point GTCC Middle

College High 121 125 123 125 128 127 126 125 129 126 NC A&T Middle College

High 112 103 104 124 109 101 96 94 89 78 Northeast High 1,031 1,010 1,013 1,003 1,060 1,097 1,122 1,151 1,231 1,206 Northern High 1,340 1,355 1,343 1,316 1,294 1,245 1,158 848 467 - Northwest High 2,024 1,978 1,995 1,924 1,889 1,882 1,909 2,081 2,188 2,397 Page High 1,935 2,015 1,962 1,872 1,804 1,806 1,764 1,756 1,780 1,728 Penn-Griffin School for

the Arts 196 214 215 196 174 156 107 88 63 - Ragsdale High 1,495 1,423 1,389 1,367 1,311 1,365 1,386 1,469 1,520 1,484 Smith High 1,220 1,219 1,225 1,205 1,185 1,133 1,160 1,176 1,222 1,347 Smith Academy 210 221 205 203 221 233 200 199 208 155 Southeast High 1,366 1,361 1,407 1,416 1,337 1,287 1,285 1,281 1,310 1,304 Southern High 1,096 1,103 1,155 1,154 1,094 1,051 980 962 1,006 985 Southwest High 1,514 1,494 1,431 1,420 1,395 1,359 1,364 1,395 1,349 1,354 STEM Early College at

NC A&T 190 150 102 49 - - - - - - UNCG Middle College

High 200 199 149 100 49 - - - - - Western High 1,291 1,293 1,226 1,225 1,241 1,287 1,344 1,339 1,390 1,460

Total high schools 22,614 22,508 22,318 21,947 21,551 21,498 21,386 21,263 21,079 20,777

SPECIAL SCHOOLSChristine Joyner Greene 77 73 65 Gateway Education Center 58 54 57 70 59 67 132 134 131 120 Guilford Newcomers

School 285 302 245 246 215 231 256 239 192 - Haynes Inman Education

Center 76 74 80 72 62 54 - - - -


- 105 -

Table 17Page 3 of 4

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

895 934 970 934 987 965 967 950 928 982 678 672 725 754 803 737 753 722 687 674

1,031 1,069 1,104 1,094 1,051 1,032 1,046 1,034 1,036 1,041 364 401 439 458 479 492 508 541 526 528

14,601 15,161 15,662 15,803 15,861 15,476 15,268 15,185 15,169 15,012

783 781 768 683 726 789 799 803 813 874

102 105 107 98 106 107 98 99 96 80 1,218 1,190 1,156 1,212 1,257 1,335 1,387 1,404 1,302 1,335 1,065 1,066 1,094 1,107 1,109 1,127 1,115 1,076 962 951

116 126 124 118 120 119 115 116 113 106 1,587 1,576 1,640 1,659 1,617 1,598 1,605 1,691 1,706 1,658

117 124 131 130 125 126 122 121 124 108 171 176 175 164 146 155 155 143 132 129 195 193 190 192 197 191 193 191 190 188

1,297 1,297 1,243 1,293 1,289 1,204 1,208 1,186 1,103 1,122

136 130 125 132 130 127 119 95 84 78

117 120 117 116 122 121 120 117 119 115

109 102 102 123 107 99 93 92 84 70 942 930 911 946 996 1,027 1,055 1,085 1,140 1,120

1,285 1,295 1,290 1,270 1,250 1,195 1,110 829 450 - 1,934 1,874 1,848 1,849 1,821 1,806 1,831 1,995 2,092 2,292 1,809 1,892 1,791 1,768 1,695 1,695 1,657 1,668 1,649 1,606

188 208 206 190 151 146 102 84 60 - 1,416 1,355 1,251 1,296 1,250 1,295 1,317 1,400 1,423 1,398 1,104 1,105 1,098 1,110 1,098 1,047 1,068 1,095 1,134 1,221

203 216 201 198 215 227 193 191 196 145 1,282 1,276 1,274 1,338 1,268 1,219 1,217 1,228 1,235 1,231 1,030 1,035 1,082 1,097 1,042 1,001 920 913 946 923 1,451 1,428 1,365 1,356 1,332 1,291 1,292 1,334 1,265 1,269

188 148 101 48 - - - - - -

197 194 146 97 47 - - - - - 1,209 1,200 1,132 1,150 1,166 1,206 1,255 1,271 1,314 1,384

21,251 21,142 20,668 20,740 20,382 20,253 20,146 20,227 19,732 19,403

74 69 65 52 47 51 63 54 60 115 120 118 109

269 282 231 232 203 220 240 225 183 -

70 68 69 66 58 49 - - - -


- 106 -


2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

SPECIAL SCHOOLS (CONTINUED)Herbin-Metz Education

Center 4 67 70 72 128 128 127 128 131 126 114 SCALE 44 48 36 36 34 45 46 44 71 52 Dean B. Pruette SCALE 33 27 18 32 31 35 37 44 - - Weaver Education Center 251 265 284 300 296 274 235 226 230 259

Total special schools 891 913 857 884 825 833 834 818 750 545

Total ADM 70,922 71,026 71,787 71,885 71,587 71,227 70,710 70,968 70,707 69,677

Total ADA

ADA/ADM

Notes:Grades three through five.

Grades four and five.

Grades six through eight.

Formerly Haynes Inman Education Center.4


1

2

3

- 107 -

Table 17Page 4 of 4

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

64 65 67 121 124 123 124 126 120 109 36 39 30 30 27 36 36 32 52 42 27 23 16 29 28 28 29 36 - -

236 252 271 291 287 264 227 220 220 251

828 845 800 832 781 780 771 759 693 511

67,283 67,193 67,837 66,243 68,345 67,643 67,009 67,655 66,954 65,882

94.9% 94.6% 94.5% 92.2% 95.5% 95.0% 94.8% 95.3% 94.7% 94.6%


- 108 -

GUILFORD COUNTY BOARD OF EDUCATIONOPERATING STATISTICSLast Ten Fiscal Years

Student Percentage Average Change in

Fiscal Daily Cost Per Per Pupil

Year Expenses2 Membership Pupil Cost

2007 583,951,165$ 69,677 8,381$ 7.0%

2008 637,185,591$ 70,707 9,012$ 7.5%

2009 646,414,267$ 70,968 9,109$ 1.1%

2010 629,411,147$ 70,710 8,901$ -2.3%

2011 628,164,361$ 71,227 8,819$ -0.9%

2012 649,737,830$ 71,587 9,076$ 2.9%

2013 2 662,302,351$ 71,885 9,213$ 1.5%

2014 625,146,612$ 71,787 8,708$ -5.5%

2015 670,108,220$ 71,502 9,372$ 7.6%

2016 666,210,926$ 71,429 9,327$ -0.5%

Notes: 1

2

Source:Statistical Profile published by the State Board of Education, NorthCarolina Department of Public Instruction.

In 2014-15, Guilford County Schools elected to participate in the Community Eligibility Provision

(CEP). CEP is a provision from the Healthy, Hunger-Free Kids Act of 2010 that allows schools and

local educational agencies (LEAs) with high poverty rates to provide free breakfast and lunch to all

students. CEP eliminates the burden of collecting household applications to determine eligibility for

school meals, relying instead on information from other means-tested programs such as the

Supplemental Nutrition Assistance Program and Temporary Assistance for Needy Families.

Calculation of the Free and Reduced Lunch Percentage under the CEP model is as follows: (Number

of low income students per CEP data X 1.6%)/Total Student Enrollment.

Expenses do not include unallocated depreciation expense, After School CareEnrichment Services, or individual school funds.

- 109 -

Table 18

Students Receiving

Pupil/ Student Free/Reduced

Teaching Teacher Attendance Meals

Staff Ratio Percentage Percentage

4,528 15.4 94.6% 48.6%

4,844 14.6 94.7% 48.6%

4,976 14.3 95.3% 49.4%

4,897 14.4 94.8% 53.0%

4,920 14.5 95.0% 53.6%

4,943 14.5 95.5% 56.6%

4,994 14.4 92.2% 57.5%

4,982 14.4 94.5% 59.4%

4,881 14.6 94.6% 66.8% 1

4,796 14.9 94.9% 66.8%

- 110 -

Table 19

GUILFORD COUNTY BOARD OF EDUCATIONINSTRUCTIONAL PERSONNELLast Ten Fiscal Years

Fiscal Bachelors Masters

Year Minimum Maximum Average Degree Degree Doctorate Other

2016 39,350$ 80,046$ 47,487$

2015 37,350$ 71,490$ 47,054$ 69.2% 29.3% 0.2% 1.3%

2014 35,150$ 76,100$ 44,870$ 67.9% 30.6% 0.2% 1.3%

2013 35,150$ 76,100$ 43,025$ 71.5% 26.9% 0.1% 1.5%

2012 34,730$ 75,250$ 44,095$ 72.9% 25.5% 0.2% 1.4%

2011 34,730$ 75,250$ 44,031$ 74.5% 22.8% 0.3% 2.4%

2010 34,730$ 75,250$ 45,344$ 74.0% 24.2% 0.2% 1.6%

2009 34,730$ 75,250$ 42,880$ 74.5% 22.8% 0.3% 2.4%

2008 33,980$ 74,580$ 43,460$ 63.0% 33.0% 1.2% 2.8%

2007 32,710$ 70,070$ 43,956$ 63.2% 32.7% 1.2% 2.9%

Teacher Salaries Education

- 111 -

GUILFORD COUNTY BOARD OF EDUCATIONSCHOOL BUILDING DATA - ELEMENTARY, MIDDLE,HIGH SCHOOLS AND SPECIAL USE FACILITIESLast Ten Fiscal Years

Building

Loc. Site Square Building

No. Acreage Footage Capacity

ELEMENTARY SCHOOLSAlamance Elementary 304 33.49 95,437 854 Alderman Elementary 307 10.18 55,692 540 Allen Jay Elementary 310 21.46 49,744 542 Archer Elementary 322 8 47,056 454 Bessemer Elementary 328 * 68,893 664 Bluford Elementary 331 * 59,451 515 Brightwood Elementary 334 31.98 85,277 790 Brooks Global Studies 337 * 47,572 491 Monticello-Brown Summit Element. 340 53.72 88,500 853 Claxton Elementary 343 10 56,724 611 Colfax Elementary 346 30.941 107,636 812 Cone Elementary 349 * 66,277 497 Erwin Montessori 361 9 53,800 452 Fairview Elementary 364 4.25 76,058 710 Falkener Elementary 366 30.1 85,277 790 Florence Elementary 370 14.9 78,712 800 Foust Elementary 373 9.44 50,246 478 Frazier Elementary 376 * 52,084 504 General Greene Elementary 388 12.07 41,242 558 Gibsonville Elem. (new bldg & gym) 382 33.1 98,133 588 Gillespie Park Elementary 385 16.4 75,744 513 Guilford Elementary 400 33.264 89,639 829 Hampton Elementary 403 16 48,448 482 Hunter Elementary 409 29.48 38,630 374 Irving Park Elementary 412 11.8 58,701 842 Jamestown Elementary 418 15.01 61,724 670 Jefferson Elementary 423 25.744 87,256 853 Jesse Wharton Elementary 424 26.5 88,500 853 Johnson Street Elementary 427 8.81 72,120 288 Jones Elementary 430 9 73,545 820 Joyner Elementary 436 15.08 44,320 581 Kirkman Park Elementary 439 8.85 42,589 403 Lindley Elementary 451 18.71 69,693 517 Madison Elementary 454 32.01 44,434 416 McLeansville Elementary 461 11.47 68,409 588 Millis Road Elementary 466 * 44,899 489 Montlieu Elementary 469 23.23 65,741 791 Morehead Elementary 472 7.82 44,914 384 Murphey Elementary 478 * 53,028 494 Nathanael Greene Elementary 481 12.78 52,652 462 Northern Elementary 486 60.5 79,633 824 Northwood Elementary 496 25.26 67,972 635 Oak Hill Elementary 499 7.16 60,820 446 Oak Ridge Elementary 502 31.84 103,891 836 Oak View Elementary 505 12.47 68,554 737

School Name

- 112 -

Table 20Page 1 of 3

2015-2016 Percentage

20th Day Over (Under) Year Years Renovations/

Enrollment Capacity Constructed Additions

483 57% 1946 1955, 59, 75, 2011397 74% 1968 1975, 2002415 77% 1955 1962, 71, 2002410 90% 1962 1964491 74% 1952 1960, 75, 84, 2002297 58% 1956 1961, 63, 77, 2016575 73% 2002410 84% 1951 1952, 76, 2004368 43% 2000600 98% 1960 1962, 65, 74597 74% 1955 1983, 99, 2002475 96% 1935 1943, 61, 67, 69, 2002299 66% 1949 1950, 52, 68, 72, 2002381 54% 1956 1963, 66, 1999555 70% 2002679 85% 1955 1958, 60, 73, 83, 2002, 2006343 72% 1965 1966293 58% 1971 2002501 90% 1956 1957, 62, 2002459 78% 2006, 1950262 51% 1949 1959, 65, 74, 2003595 72% 2007295 61% 1964 1965483 129% 1929 1952, 56,61,63, 83629 75% 1952 1958, 60, 61, 68, 2006397 59% 1930 1940, 59, 61, 82618 72% 1999496 58% 1998440 153% 1955 1958, 78684 83% 1954 1958, 61, 63, 82, 2000283 49% 1955 1958, 62, 89299 74% 1961 1973481 93% 1928 1937, 58, 61, 75, 2003218 52% 1977 2006373 63% 1935 1951, 55, 56, 88, 2005, 2012476 97% 1959 1961, 2002666 84% 1956 1958, 61, 2002622 162% 1968 2006316 64% 1956 1958, 62, 63, 83251 54% 1923 1935, 37, 41, 55, 56, 60, 77594 72% 2007614 97% 1956 1958, 59, 61, 91, 2002456 102% 1955 1975735 88% 1923 1924, 74, 2006496 67% 1953 1956, 60, 76, 2007

- 113 -


Building



ELEMENTARY SCHOOLS (CONTINUED)Parkview Elementary 511 15.93 80,512 541 Pearce Elementary 491 21.96 89,207 812 Peck Elementary 514 26.13 62,220 491 Peeler Elementary 517 14 49,376 510 Pilot Elementary 522 45 88,500 853 Pleasant Garden Elementary 523 23.36 114,703 848 Rankin Elementary 532 21 91,968 728 Reedy Fork Elementary 530 18.356 86,847 870 McNair Elementary 462 43.97 92,039 712 Sedalia Elementary 535 20.18 65,451 635 Sedgefield Elementary 538 9.67 52,592 406 Shadybrook Elementary 541 25.14 62,210 535 Simkins Elementary 542 30.1 92,812 801 Southern Elementary 553 * 39,052 404 Southwest Elementary 559 * 98,523 948 Sternberger Elementary 568 9.8 50,690 484 Stokesdale Elementary 571 22.19 88,464 576 Summerfield Elementary 574 26.18 96,616 806 Sumner Elementary 577 25 84,920 828 Triangle Lake Montessori 578 24.751 85,277 870 Union Hill Elementary 580 15 92,931 778 Vandalia Elementary 583 10 34,820 316 Washington Elementary 586 7.39 49,723 543 Wiley Elementary 598 8.43 60,198 404

Total Elementary Schools 1,235.36 4,779,318 43,329

MIDDLE SCHOOLSAllen Jay Middle - A Preparatory

Academy 311 18 90,064 609 Allen Middle 316 41.46 124,909 1,143 Aycock Middle 325 16.53 133,348 986 Brown Summit Middle 341 8.38 33,937 290 Eastern Middle 460 * 137,550 1,155 Ferndale Middle 367 * 149,372 1,213 Penn-Griffin Middle 391 35 168,696 900 Guilford Middle 397 32 107,322 807 Hairston Middle 402 79.85 141,332 1,155 Jackson Middle 415 34.675 112,459 998 Jamestown Middle 421 69.1 162,154 1,387 Kernodle Middle 437 38.969 141,332 1,155 Kiser Middle 442 * 136,435 1,155 Lincoln Academy 448 * 95,409 899 Mendenhall Middle 463 40.04 122,540 1,015 Northern Middle 488 * 141,084 1,114 Northeast Middle 487 * 131,034 1,073 Northwest Middle 493 * 144,210 870

School Name

- 114 -

Table 20Page 2 of 3




349 65% 1958 1961, 2008697 86% 2007331 67% 1929 1949, 52, 82, 84, 2006348 68% 1968 1972, 2006708 83% 1996479 56% 1940 1952, 59, 82, 90, 2008781 107% 1924 1952, 56, 83, 99414 48% 2007587 82% 2013443 70% 1947 1955, 58, 63, 83, 2002, 2006514 127% 1953 1955, 56, 64, 83, 2002460 86% 1970499 62% 2013307 76% 1975 1976797 84% 1979 2000367 76% 1949 1953, 56, 58, 61, 76472 82% 1953 1955, 56, 60, 79, 82, 2007610 76% 1936 1950, 52, 55, 59, 83, 2011 631 76% 1930 1935, 49, 56, 61, 62, 64, 78480 55% 2003479 62% 2009253 80% 1958 1966, 74346 64% 1951 1958, 60, 63311 77% 1954 1956, 61, 2002

32,470

300 49% 1950 1950, 60, 69, 76, 83, 2014653 57% 1968 2011599 61% 1922 1954, 57, 59, 61, 75, 82242 83% 1954 58, 61877 76% 1999749 62% 1931 1937, 48, 82, 2007646 72% 1930 1940, 49, 52, 55, 56, 59, 79, 84, 2004655 81% 1941 1949, 52, 55, 58, 59, 63, 74, 82677 59% 2002515 52% 1959 1961, 65

1,029 74% 2010755 65% 2000762 66% 1957 1966, 2002678 75% 1945 1949, 54, 61, 62, 63, 76, 82, 2002 737 73% 1968 2002860 77% 2007730 68% 1967 2006964 111% 1970 2012

- 115 -


Building



MIDDLE SCHOOLS (CONTINUED)Southeast Middle 550 * 138,341 940Southern Middle 313 73.995 143,877 1,155Southwest Middle 565 * 138,143 1,230Welborn Middle 592 * 139188 1114

Total Middle Schools 488.00 2,832,736 22,363

HIGH SCHOOLSAndrews High 319 52.04 230,224 1,238Dudley High 355 63.58 282,310 1,872Eastern High 358 103.57 284,569 1,346

Grimsley High 394 105 228,045 1,973High Point Central High 406 41.23 253,163 1,392Academy at Central 407 * 42,336 252High School Ahead (housed at Old

McIver Site) 396 12.5 81,630 290Northeast High 484 58.64 179,092 1,071Northern High 489 99.89 270,000 1,359Northwest High 490 82.98 231,110 1,734Page High 508 54.45 220,174 2,099Ragsdale High 529 72.06 367,837 1,483Smith High 544 55 259,120 1,607Smith Academy 545 4.3 39,248 335Southeast High 547 73.65 232,609 1,607Southern High 556 58.68 195,544 1,032Southwest High 562 106.19 278,430 1,597Weaver Education Center 589 11.75 110,970 320Western High 595 62.22 215763 1620

Total High Schools 1,117.73 4,002,174 24,227

SPECIAL USE FACILITIESGateway Education Center 379 14 98,782 372Haynes-Inman Education Center 464 * 62,495 264Herbin-Metz Education Center 457 * 51,385 204Greene Education Center 458 * 57,266 204Guilford Newcomers School 398 9.2 29,654 435Pisgah Church Rd. SCALE Program 533 5.98 18,668 192Dean B. Pruette SCALE School 534 1.89 27,475 192Twilight High School * 8309 175

Total Special Use Facilities 31.07 354,034 2,038

Total All Facilities 2,872.16 11,968,262 91,957

Notes: * Site shared with other school(s).1 Does not include square footage for any mobile units or any square footage leased by Guilford County Schools.

School Name

- 116 -

Table 20Page 3 of 3




940 100% 1969 2011715 62% 2007 2010

1,081 88% 1992383 34% 1958 1961, 2001

15,547

865 70% 1967 1973, 2001, 20111,384 74% 1928 1935, 57, 59, 61, 63, 82, 2005, 20121,169 87% 1976/2009 1976/2009

1,734 88% 19291933, 40, 54, 56, 58, 65, 76, 78, 2002,

2011, 20141,454 104% 1926 1941, 53, 56, 62, 98, 2013

142 56% 1950 1953, 2003

100 34% 1929 1948, 54, 55, 611,054 98% 1961 1962, 69, 85, 20071,357 100% 20082,041 118% 1962 1965, 85, 2003, 20122,007 96% 1958 1962, 64, 76, 2004, 20111,533 103% 1959 1965, 66, 67, 69, 70, 2002, 2012, 20131,299 81% 1963 1965, 68, 75, 2001

210 63% 1973 1984, 20071,410 88% 1962 1975, 76, 80, 2005, 2010, 20121,142 111% 1970 1973, 84, 20061,527 96% 1979 1988, 2007, 2011

254 79% 19801,345 83% 1968 1973, 77, 2001

22,027

56 15% 1983 199175 28% 201068 33% 201376 37% 2013

221 51% 197214 7% 1955 19716 3% 19470 0% 1955

516

70,560

- 117 -

Table 21

GUILFORD COUNTY BOARD OF EDUCATIONCAPITAL LEASE AND INSTALLMENT PURCHASE PAYMENTSLast Ten Fiscal Years

FiscalYear Department Asset Description Amount

2007 Transportation School Buses 2,363,589$

2008 Transportation School Buses 4,158,526







2015 Transportation School Buses 41,111


- 118 -

COMPLIANCE SECTION

This section of Guilford County Board of Education’s (the “Board”) Comprehensive Annual Financial Report (CAFR) presents various reports and schedules 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 the State Single Audit Implementation Act. It also contains the Independent Auditors’ Reports on compliance and controls as required by the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

- 119 -

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 Auditors’ Report


We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, 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 Guilford County Board of Education (the “Board”), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprises the Board’s basic financial statements, and have issued our report thereon dated November 22, 2016.

Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Board’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 Board’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Board’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 a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the 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 weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider material weaknesses. However, material weaknesses may exist that have not been identified.

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Compliance and Other Matters As part of obtaining reasonable assurance about whether the financial statements of the Board are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, 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.

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 Board’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 Board’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


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Report on Compliance with Requirements Applicable to Each Major Federal Program and Internal Control Over Compliance in Accordance with Uniform Guidance and the State Single Audit Implementation Act



Report on Compliance for Each Major Federal Program We have audited the Guilford County Board of Education’s (the “Board”) compliance with the types of compliance requirements described in the OMB Compliance Supplement and the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission, that could have a direct and material effect on each of the Board’s major federal programs for the year ended June 30, 2016. The Board’s major federal programs are identified in the summary of auditors’ 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 its federal programs.

Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of the Board’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States 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 Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and the State Single Audit Implementation Act. Those standards, Uniform Guidance, and the State Single Audit Implementation Act require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Board’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 program. However, our audit does not provide a legal determination on the Board’s compliance.

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Opinion on Each Major Federal Program In our opinion, the Board complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2016.

Report on Internal Control over Compliance Management of the Board 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 the Board’s internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Board’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.


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Report on Compliance with Requirements Applicable to Each Major State Program and Internal Control Over Compliance in Accordance with Uniform Guidance and the State Single Audit Implementation Act



Report on Compliance for Each Major State Program We have audited the Board’s compliance with the types of compliance requirements described in the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission that could have a direct and material effect on each of its major state programs for the year ended June 30, 2016.the Board’s major 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 its state programs.

Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of the Board’s major 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; applicable sections of the audit requirements of Title 2 U.S Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Implementation Act. Those standards, Uniform Guidance, and the State Single Audit Implementation Act 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 state program occurred. An audit includes examining, on a test basis, evidence about the Board’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 state program. However, our audit does not provide a legal determination on the Board’s compliance.

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Opinion on Each Major State Program In our opinion, the Board complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major state programs for the year ended June 30, 2016.

Report on Internal Control over Compliance Management of the Board 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, we considered the Board’s internal control over compliance with the requirements that could have a direct and material effect on a major state program in order to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with applicable sections of the Uniform Guidance and the State Single Audit Implementation Act, 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 the Board’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 state program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a 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 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 combination of deficiencies, in internal control over compliance with a type of compliance requirement of a 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 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 deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.


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GUILFORD COUNTY BOARD OF EDUCATION Schedule 11 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Page 1 of 2 Year Ended June 30, 2016

SECTION I – SUMMARY OF AUDITORS’ RESULTS

Financial Statements Type of auditors’ report issued on whether the financial

statements audited were prepared in accordance with accounting principles generally accepted in the United

States of America: Unmodified

Internal control over financial reporting:

Material weaknesses identified? Yes X No

Significant deficiencies identified that are not considered to be material weaknesses? Yes X None reported

Noncompliance material to financial statements noted? Yes X No

Federal Awards

Internal control over major federal programs:



Type of auditors’ report issued on compliance for major federal programs: Unmodified

Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes X No

Identification of major federal programs:

CFDA Numbers Names of Federal Program or Cluster

Child Nutrition Cluster: 10.555 National School Lunch Program (non-cash) 10.555 National School Lunch Program 10.553 School Breakfast Program

84.385 Teacher Incentive Fund

84.416 ARRA – PACE Project

Dollar threshold used to distinguish between Type A and Type B Programs: $ 2,580,247

Auditee qualified as low-risk auditee? X Yes No

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GUILFORD COUNTY BOARD OF EDUCATION Schedule 11 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Page 2 of 2 Year Ended June 30, 2016

SECTION I – SUMMARY OF AUDITORS’ RESULTS (CONTINUED)

State Awards

Internal control over major state programs:



Type of auditors’ report issued on compliance for major state programs: Unmodified

Any findings disclosed that are required to be reported in accordance with the State Single Audit Implementation Act? Yes X No

Identification of major state programs:

Program Name

State Public School Fund

SECTION II – FINANCIAL STATEMENT FINDINGS No findings reported.

SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No findings reported.

SECTION IV – STATE AWARD FINDINGS AND QUESTIONED COSTS No findings reported.

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GUILFORD COUNTY BOARD OF EDUCATION Schedule 12 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS Year Ended June 30, 2016

No findings were reported in 2015. Finding 2014-001 Description: The Board did not submit the reporting package related to the audit for the year ended June 30, 2013 to the federal government by the required due date.

Status: Corrected.


State/Federal Pass-throughCFDA Grantor's

Grantor/Pass Through Grantor/Program Title Number Number Expenditures

Federal Grants:

U. S. Department of EducationDirect Programs:

Indian Education Grant 84.060 PRC 310 52,191$ Transition to Teaching 84.350 PRC 347, 350 408,556ARRA - PACE Project 84.416 PRC 345 4,139,011Teacher Incentive Fund 84.374 PRC 641 2,381,889

6,981,647

Passed through the N. C. Department ofPublic Instruction:

Special Education Cluster: PRC 060, 082 Grants to the States 84.027 114, 118 14,340,542 Preschool Grants 84.173 PRC 049, 119 341,417

Total Special Education Cluster 14,681,959

Improving American School Act of 1994 (IASA)Title I, Part A Cluster:

Title I Grants to LEAs 84.010 PRC 050,100 23,992,794School Improvement, Title I 84.010 PRC 105 182,624

Total Title I, Part A Cluster 24,175,418

Vocational Education - Basic Grants to States 84.048 PRC 017,058 1,066,873Education for Homeless Children Grant 84.196 PRC 026 80,052English Language Acquisition State Grants 84.365 PRC 104 656,667School Improvement Grant 84.377 PRC 117 344,629Improving Teacher Quality 84.367 PRC 103 1,697,835Title III - Language Acquisition - Significant Increase 84.395 PRC 111 82,214

Total U. S. Department of Education 49,767,294

U. S. Department of AgricultureSchool Nutrition Program (Note 4):Child Nutrition Cluster:

Passed through the N. C. Department ofPublic Instruction:National School Lunch Program 10.555 PRC 035 32,250,670School Breakfast Program 10.553 PRC 035 40,678

Passed through the N. C. Department of Agriculture:Food Distribution Program (non-cash program) 10.555 PRC 035 2,396,871

Passed through the N. C. Department ofHealth and Human Services:Summer Food Service Program for Children 10.559 PRC 035 519,719

Total Child Nutrition Cluster 35,207,938


GUILFORD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS

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State/Federal Pass-throughCFDA Grantor's

Grantor/Pass Through Grantor/Program Title Number Number Expenditures

Federal Grants:

U. S. Department of AgriculturePassed through the N. C. Department of

Public Instruction:Fresh Fruit and Vegetable Program 10.582 PRC 035 580,951$

Total School Nutrition Program (Note 4) 35,788,889

Total U.S. Department of Agriculture 35,788,889

U. S. Department of DefenseDirect Program:

ROTC 12.000 PRC 301 446,015

Total U. S. Department of Defense 446,015

U. S. Department of CommerceDirect Program:

Measurement and Engineering Research and Standards 11.609 PRC 317 6,049

Total U. S. Department of Commerce 6,049

Total Federal Awards 86,008,247$

State Grants:

N. C. Department of Public InstructionCash assistance:

State Public School Fund N/A xxxx 362,768,798$ Vocational Education

- State Months of Employment N/A PRC 013 19,215,398- Program Support Funds N/A PRC 014 1,748,005

Driver Training N/A PRC 012 988,298School Technology Fund N/A PRC 015 801,394School Impact Grant N/A PRC 488 106,198Public School Building Capital Fund N/A PRC 074 3,194

Non-cash assistance:State appropriations - school buses N/A PRC 120 1,120,332Textbooks N/A PRC 130 181,789

Total N. C. Department of Public Instruction 386,933,406

N. C. Department of Health and Human ServicesCash assistance:

NC Pre-Kindergarten Program N/A xxxx 3,742,608

Total State Awards 390,676,014$

GUILFORD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS Year Ended June 30, 2016

The accompanying notes are an integral part of this schedule.

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Notes to the Schedule of Expenditures of Federal and State Awards

Note 1: Basis of Presentation

Note 2: Summary of Significant Accounting Policies

Note 3: Indirect Cost Rate

Note 4: Program Cluster

The School Nutrition Program is clustered by the N.C. Department of Public Instruction and is treated separately for stateaudit requirement purposes.

The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

GUILFORD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS Year Ended June 30, 2016

The accompanying Schedule of Expenditures of Federal and State Awards ("SEFSA") includes the federal and state grantactivity of the Guilford County Board of Education (the "Board") under the programs of the federal government and theState of North Carolina for the year ended June 30, 2016. The information in the SEFSA is presented in accordance withthe requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. Because theschedule presents only a selected portion of the operations of the Guilford County Board of Education, it is not intended toand does not present the net position, changes in net position, or cash flows of the Board.

Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement.

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comprehensive annual financial report for …however, during 2009 this changed as the unemployment...

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