jackson county school district no. 5 ashland, oregon ... jcsd5 audit-final.pdf · an audit...
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JACKSON COUNTY SCHOOL DISTRICT NO. 5 Ashland, Oregon
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
FISCAL YEAR ENDED JUNE 30, 2013 WITH
INDEPENDENT AUDITOR'S REPORT
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Ashland, Oregon
June 30, 2013
Administrative Office:
885 Siskiyou Blvd. Ashland, Oregon 97520
BOARD OF DIRECTORS AS OF JUNE 30, 2013 Carol Davis Chairperson 885 Siskiyou Blvd, Ashland, OR 97520 Keith Massie Director 885 Siskiyou Blvd, Ashland, OR 97520 Jim Westrick Director 885 Siskiyou Blvd, Ashland, OR 97520 John Williams Director 885 Siskiyou Blvd, Ashland, OR 97520 Eva Skuratowicz Director 885 Siskiyou Blvd, Ashland, OR 97520
ADMINISTRATIVE STAFF Juli Di Chiro Superintendent-Clerk Retired effective 6/30/13 Jay Hummel Superintendent-Clerk Effective for fiscal year 2013-14 Greg LeCuyer Business Manager-Deputy Clerk
JACKSON COUNTY SCHOOL DISTRICT NO. 5
Ashland, Oregon
For the Fiscal Year Ended June 30, 2013
Table of Contents Page Independent Auditor's Report A-1 – A-3 Management Discussion and Analysis B-1 – B-9 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position - Modified Cash Basis 1 Statement of Activities - Modified Cash Basis 2 Fund Financial Statements: Statement of Assets and Liabilities Arising from Cash Transactions - Governmental Funds 3 Reconciliation of Governmental Funds Statement of Assets and Liabilities Arising from Cash Transactions to the Statement of Net Position - Modified Cash Basis 4 Statement of Revenues Collected, Expenses Paid and Changes in Fund Balance - Cash Basis - Governmental Funds 5 Reconciliation of the Statement of Revenues Collected, Expenses Paid and Changes in Fund Balance of Governmental Funds to the Statement of Activities - Modified Cash Basis 6 Statement of Net Position - Cash Basis - Internal Service Fund 7 Statement of Revenues, Expenses, and Changes in Fund Net Position - Cash Basis - Internal Service Fund 8 Statement of Cash Flows - Cash Basis - Internal Service 9 Statement of Fiduciary Net Position - Cash Basis - Fiduciary Fund 10 Statement of Changes in Fiduciary Net Position - Modified Cash Basis- Fiduciary Fund 11 Notes to the Basic Financial Statements 12 – 30 Supplementary Information: Schedule of Funding Progress - Other Postemployment Benefits 31 Schedule of Revenues Collected, Expenses Paid and Changes in Fund Balance - Cash Basis - Budget and Actual - General Fund 32 Schedule of Revenues Collected, Expenses Paid and Changes in Fund Balance - Cash Basis - Budget and Actual - Special Revenue Fund 33 Schedule of Revenues Collected, Expenses Paid and Changes in Fund Balance - Cash Basis - Budget and Actual - Debt Service Fund 34 Schedule of Revenues Collected, Expenses Paid and Changes in Fund Balance - Cash Basis - Budget and Actual - Capital Projects Fund 35 Schedule of Revenues Collected, Expenses Paid and Changes in Fund Balance - Cash Basis - Budget and Actual - Internal Service Fund 36
Table of Contents (Continued) Page Supplementary Information (Continued): Schedule of Revenues Collected, Expenses Paid and Changes in Fund Balance - Cash Basis - Budget and Actual Trust & Agency Fund 37 Other Financial Schedules: School District Financial Accounting Summaries 38 – 45 Independent Auditor’s Report Required by Oregon State Regulations 46 – 47 Items Required by the Single Audit Act Amendments of 1996 for Federal Awards Programs: 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 48 – 49 Report on Compliance with requirements applicable to each major program and Internal Control over Compliance in accordance with OMB Circular A-133 50 – 52 Schedule of Expenditures of Federal Awards 53 Schedule of Findings and Questioned Costs 54 – 56
A-1
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors Jackson County School District No. 5 Ashland, Oregon
We have audited the accompanying financial statements of Jackson County School District No. 5, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with the modified cash basis of accounting described in Note 1; this includes determining that the modified cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is also responsible for 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 error or fraud.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the District’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
MemberDivision for CPA Firms AICPA
940 Town Centre Drive, Medford, Oregon 97504-6100(541) 779-8261 FAX (541) 779-4245 www.mlpcpa.com
MMMMMICHAELICHAELICHAELICHAELICHAEL L L L L L. . . . . PPPPPIELSIELSIELSIELSIELS CERTIFIED PUBLIC ACCOUNTANTS, LLP
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Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position - modified cash basis of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Jackson County School District No. 5, Ashland, Oregon, as of June 30, 2013, and the respective changes in financial position -modified cash basis, thereof for the year then ended in accordance with the basis of accounting as described in Note 1.
Basis of Accounting
We draw attention to Note 1 of the financial statements, which describes the basis of accounting. The financial statements are prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to that matter.
Other Matters
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Jackson County School District No. 5’s basic financial statements. The Supplementary Information as listed in the Table of Contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. The management’s discussion and analysis and budgetary comparison information as listed in the Table of Contents are the responsibility of management, and are presented for purposes of additional analysis and are not a required part of the basic financial statements. We have applied certain limited procedures to the Management’s Discussion and Analysis and the Schedule of Funding Progress - Other Postemployment Benefits in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The schedules of revenues collected, expenses paid and changes in fund balance - cash basis - budget and actual as listed in the table of contents are the responsibility of management and was 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 major governmental funds budgetary comparison information are fairly stated in all material aspects, in relation to the basic financial statements as a whole.
Other Financial Schedules
We have applied certain limited procedures to the other financial schedules as listed in the Table of Contents in accordance with auditing the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Jackson County School District No. 5’s basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements.
A-3
The schedule of expenditures of federal awards is the responsibility of management and was 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards and Oregon State Regulations
In accordance with Government Auditing Standards, we have also issued our report dated December 3, 2013, on our consideration of the Jackson County School District No. 5’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Jackson County School District No. 5’s internal control over financial reporting and compliance.
In accordance with Oregon State Regulation, we have also issued our report dated December 3, 2013 on our consideration of the Jackson County School District’s compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes (ORS) as specified in Oregon Administrative Rules 162-10-000 through 162-10-320 of the Minimum Standards for Audits of Oregon Municipal Corporations. The purpose of that report is to describe the scope of our testing necessary to address the required provisions of ORS, and not to provide an opinion on compliance with such provisions. Stewart C. Parmele CPA, Partner Michael L. Piels CPAs, LLP Medford, Oregon December 3, 2013
B-1
JACKSON COUNTY SCHOOL DISTRICT NO. 5 MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013 As management of Jackson County School District No. 5 (the District), we offer readers of the District's financial statements this narrative overview and analysis of the financial activities for the fiscal year ended June 30, 2013. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the notes to the basic financial statements to enhance their understanding of the District’s financial performance. FINANCIAL HIGHLIGHTS
In the government-wide statements, the assets of the District exceeded its liabilities at June 30, 2013 by $36.3 million. Of this amount, $32.1 million represents the District’s investment in capital assets, $320 thousand is restricted for debt service, $870 thousand is restricted for capital projects, and the balance, $3.0 million is unrestricted and available for appropriation at the District’s discretion.
For the fiscal year ended June 30, 2013, the District’s total net position increased by $857 thousand. This increase is attributable primarily to a decrease in long-term debt.
The District’s governmental funds report a combined ending fund balance of $3.43 million, a decrease of about $872 thousand in comparison with the prior year.
At the end of the fiscal year, unassigned fund balance for the general fund was $1.964 million or 8.2 percent of total general fund expenditures and other financing uses. This was a decrease from the previous general fund balance of $2.754 million.
The District’s total debt decreased by almost $3.665 million during the 2012-13 fiscal year. Debt decreased due to bond principal repayment. Regular debt service payments were made as scheduled. Of the debt service reserve of $319 thousand, none is available for general expenditure.
OVERVIEW OF THE FINANCIAL STATEMENTS This Management’s Discussion and Analysis is intended to serve as an introduction to the District’s basic financial statements. The District’s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. These statements include: Statement of Net Position. The Statement of Net Position presents information on all of the assets and liabilities of the District at year-end. Net position is what remains after the liabilities have been recognized. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. Statement of Activities. The Statement of Activities presents information showing how the net position of the District changed over the year by tracking revenues, expenses and other transactions that increase or reduce net position. All changes in net position are reported as soon as the underlying event giving rise to the change
B-2
occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes). In the government-wide financial statements, the District’s activities are shown in one category:
Governmental activities. Most of the District’s basic functions are shown here, such as regular and special education, food services, transportation, administration, and facilities acquisition and construction. These activities are primarily financed through property taxes, Oregon’s State School Fund and other intergovernmental revenues.
The government-wide financial statements can be found on pages 1 and 2 of this report. Fund financial statements. The fund financial statements provide more detailed information about the District’s funds, focusing on its most significant or “major” funds – not the District as a whole. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Jackson County School District No. 5, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The General Fund, Special Revenue Fund, Debt Service Fund, and the Capital Project Fund are all considered major governmental funds. Governmental funds. The governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances are reconciled to the government-wide Statements of Net Position and Activities. The District maintains four individual governmental funds. Information is presented separately in the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances for the General, Special Revenue, Debt Service, and Capital Projects Funds, all of which are considered to be major funds. The basic governmental fund financial statements can be found on pages 3 through 6 of this report. Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 12 through 30 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted previously, net position may serve over time as a useful indicator of a government’s financial position. In the case of the District, assets exceeded liabilities by $36.3 million at June 30, 2013.
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Capital assets, which consist of the District’s land, buildings, building improvements, vehicles and equipment, represent about 91 percent of total assets. The remaining assets consist mainly of investments, and cash. The District’s largest liability of 82 percent is for the long-term portion of 2006 general obligation construction bonds. Other liabilities, representing about 18 percent of the District’s total liabilities, are bond premium, post-employment benefit obligation, and the current portion of long-term debt. About 90% of the District’s net position reflects its investment in capital assets (e.g., land, buildings, vehicles and equipment), less any related debt used to acquire those assets that is still outstanding. The District uses these capital assets to provide services to students and other District residents; consequently, these assets are not available for future spending. Although the District’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources (generally property taxes), since the capital assets themselves cannot be used to liquidate these liabilities. All the capital related debt is a general obligation of the District for which the District has unlimited taxing authority under the Oregon constitution.
Jackson County School District No. 5
Net Position (In thousands)
Increase (Decrease) Governmental Activities From
2013 2012 Fiscal 2012 Current and other assets $ 4,972 $ 5,923 $ (951) Capital assets 62303 64,197 (1,894) Total assets 67,275 70,120 (2,845)
Other liabilities 5,312 5,019 5,312 Long-term debt 25615 29,610 (3,995) Total liabilities 30,927 34,629 (1,555) Net position: Invested in capital assets, net of related debt 32,124 30,258 1,866 Restricted 1,190 1,293 (103) Unrestricted 3,034 3,940 (906) Total net position $ 36,348 $ 35,491 $ 857
During the current fiscal year, the District’s net position increased by $857 thousand. Unrestricted net position decreased by $906 thousand. This was primarily due to an investment in equipment. The District’s investment in capital assets net of related debt increased by $1.866 million as a result of normal repayment of debt, which exceeded depreciation. The District still has $299 thousand 2006 GO Bond funds remaining to be spent.
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Governmental activities. The key elements of the change in the District’s net position for the year ended June 30, 2013 are as follows:
Jackson County School District 5 Changes in Net Position For the year ended June 30, 2013 (In thousands)
Increase
(Decrease)
Governmental Activities
From
Fiscal
2013
2012
2012 Revenues:
Program revenues: Charges for services $ 1,300 $ 1,200 $ 100 Operating grants and contributions
2,949
3,401
(452)
Capital grants and contributions
-
-
- 4,249 4,601 (352) General revenues:
Property taxes general purposed
11,091
10,848
243 Property taxes local option taxes
2,278
2,629
(351)
Property taxes levied for debt service
5,272
5,129
143 State school fund – general support
7,812
7,792
20
Other state and local sources 1,229 1,073 156 Earnings of investments
64
65
(1)
Total Revenues
31,995
32,137
(494)
Expenses:
Instruction
15,473
15,605
(132)
Support services
11,241
11,017
224 Enterprise and community services
740
770
(30)
Facilities acquisition and construction 77 Depreciation
2,121
2,123
(2)
Interest on long-term debt
1,486
1,729
(243) Total Expenses
31,138
31,244
(106)
(Decrease) increase in net position
857
893
(36)
Net position – July 1
35,491
34,598
893
Net position – June 30 $ 36,348 $ 35,491 $ 857
B-5
The Oregon State School Fund revenues increased by $20 thousand or .26 percent during the year. This increase was the result of an increase in the ADMw.
Property tax revenues – general purpose increased by about $243 thousand or 2.24 percent due to an increase in the District’s assessed property values.
Property tax revenues- Local option taxes decreased by $351 thousand or 13.3 percent due to the compressed assessed value.
Property taxes - Debt Service increased by $143 thousand due to an increase in the levy. Operating grants and contributions decreased by about $452 thousand for the year. Most
of these revenues are the result of federal grant awards in the Title and IDEA programs that fluctuate from year to year.
Investment earnings decreased reflecting a reduction in principle and investment results in the economy as a whole.
Other state and local sources revenue increased by $156 thousand primarily due to an increase in construction excise tax proceeds.
Governmental program expenses decreased by about $106 thousand from the prior year. Most of this decrease was due to a decrease in funding levels.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Instruction Support Services Enterprise &Community Services
Interest on Long‐term debt
Thousands
Expenses and Program Revenues‐Governmental Activities
Expense Revenues
B-6
FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Governmental funds. The focus of the District’s governmental funds is to provide information on relatively short-term cash flow and funding for future basic services. Such information is useful in assessing the District’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of a fiscal year. At June 30, 2013, the District’s governmental funds reported combined ending fund balances of $3.430 million, a decrease of $872 thousand in comparison with the prior year. About $1.964 million (57 percent) of the ending fund balance constitutes unassigned ending fund balance, which is available for spending at the District’s discretion. About $276 thousand is assigned for co-curricular activities. An additional $1.190 million is restricted for debt service, capital construction and grant-related services. General Fund. The General Fund is the chief operating fund of the District. As of June 30, 2013, the unassigned fund balance was $1,964 million. This is an increase of about $790 thousand from the previous year. This balance represents 8% of the total general fund expenditures. This fund balance is necessary for adequate cash flow until property taxes are collected in November. Special Revenue Fund. The Special Revenue Fund is used to account for Federal, State, and local grants, as well as our food service, and associated student body programs. All funds are utilized to carry out specific programs, and the ending fund balance of $184 thousand is primarily assigned for associated student body programs and activities. Special revenue funding has become much more volatile over the last two years as state and federal stimulus programs are established for short periods of time. As general funding is impacted by the economy, our reliance on special revenues increases.
Property taxes ‐all58%
Charges for services4%
State school fund – general support
25%
All other4%
Grants and contributions
9%
Revenues by Source‐ Governmental Activities
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Debt Service Fund. The Debt Service Fund has a total fund balance of $320 thousand, all of which is restricted for the payment of debt service. The increase in fund balance during the current year was $43 thousand. This reserved balance relates to General Obligation debt as a result of bond covenants. Capital Projects Fund. The Capital Projects Fund has a total fund balance of $871 thousand all of which is restricted for ongoing capital projects. The fund balance decreased by $146 thousand during the current fiscal year, due to the spending down of 2006 General Obligation Bond money restricted for that purpose. General Fund Budgetary Highlights There were no additional Board Resolutions adopted during the year affecting the budget for 2012-13. Resources in the General Fund, including beginning fund balance, were $118 thousand higher than budgeted, mainly due to higher than anticipated federal stimulus funding. During the year, expenditures were about $1.956 million less than budgeted. It is anticipated that resources will continue to be reduced in the near future and service levels will continue to be negatively impacted. Current estimates indicate that funding next year will be flat or reduced and some expenses (retirement and medical costs) will increase at a higher rate than normal.
-
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
Instruction SupportServices
Transfers Out Enterprise
General Fund Budget vs. Actual Expenditures
Final Budget
Actual
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CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets. The District’s investment in capital assets includes land, buildings and improvements, vehicles and equipment, and construction in progress. As of June 30, 2013, the District had invested approximately $62 million in capital assets, net of depreciation, as shown in the following table:
Jackson County School District No. 5 Capital Assets (In thousands)
Increase
(Decrease)
Governmental activities
From 2013 2012 Fiscal 2012 Land
$ 3,068
$ 2,899
$ 169
Buildings and improvements 57,332 59,233 (1,901) Vehicles & equipment
1,867
2,028
(161)
Construction In Progress
35
35
- Total
$ 62,302
$ 64,195
$ (1,893)
During the year, the District’s investment in capital assets remained relatively flat primarily because additions were offset by depreciation. The major capital asset events for the year include the following:
The decrease in building and improvements was a result of depreciation expense. Additional information regarding the District’s capital assets can be found in Note 1 and Note 4 of this report. Long-term debt. At the end of the current fiscal year, the District had total bonded debt outstanding of $30.91 million, consisting of general obligation debt, bond premiums and other post employment benefit obligations.
Jackson County School District No. 5 Outstanding Debt
(In thousands)
Increase
(Decrease)
Governmental activities
From
2013 2012
Fiscal 2012 General Obligation Bonds
$ 29,610
$ 33,275
$ (3,665)
Bond Premium
570
665
(95) OPED Obligations
728
685
43
Total $ 30,908 $ 34,625 $ (3,717)
During the current fiscal year, the District’s total debt decreased by $3,717 million. This was the result of regularly scheduled principal payments and amortization of premiums and bond costs. Additional information on the District’s long-term debt can be found in Note 6 of this report.
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ECONOMIC FACTORS AND NEXT YEAR’S BUDGET In the 2012-13 fiscal year, the District increased its level of service by adding 8.3 FTE to the general fund. School sites’ discretionary allocation was cut by 10%. The 2013-14 fiscal year budget maintained the status quo by deficit spending. In the 2012-13 fiscal year the General Fund’s fund balance was reduced by $697 thousand. In 2013-14 the General Fund’s fund balance is budgeted to have an additional $1.025 million reduction. This is the result of a significant increase in PERS rates and salary increases. As a result of a special legislative session ending on October 2, 2013 several adjustments to the tax code provided the Oregon K-12 education system an additional $100 million for the 2014-15 fiscal year. That should provide the district with over $400 thousand in additional revenue from the State School Fund. The local option tax, or Youth Academics and Activities Levy, raised $2.28 million in 2012-13. The most recent estimate for 2013-14 is $2.52 million. This increase is due to an improvement in the value of real estate in our District. The Youth Academics and Activities Levy peaked in 2010-11 at $2.910 million. Declining enrollment continues to be a financial problem for the District. The decline has lasted over more than ten years. This trend is expected to continue into the future with the recent decline in births. This trend is both local and national due to the poor overall economy. REQUESTS FOR INFORMATION This financial report is designed to present the user (citizens, taxpayers, investors, and creditors) with a general overview of the District’s finances and to demonstrate the District’s accountability. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Ashland Public Schools at 885 Siskiyou Blvd., Ashland, Oregon 97520.
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
JACKSON COUNTY SCHOOL DISTRICT NO. 5
STATEMENT OF NET POSITION - MODIFIED CASH BASIS
ASSETS:
Current:
Cash and investments $ 3,781,513
Cash and investments – capital projects 870,677
Cash and investments – debt service 319,610
Capital assets, net
Land 3,068,559
Construction in progress 35,339
Buildings and improvements 57,332,443
Vehicles and equipment 1,867,247
TOTAL ASSETS 67,275,388
LIABILITIES:
Payroll liability 19,380
Bond premium, net 569,746
Bonds payable:
Due within one year 3,995,000
Due in more than one year 25,615,000
Other postemployment benefit obligation 728,153
TOTAL LIABILITIES 30,927,279
NET POSITION:
Invested in capital assets, net of related debt 32,123,842
Restricted for debt service 319,610
Restricted for capital projects 870,677
Unrestricted 3,033,980
TOTAL NET POSITION $ 36,348,109
JUNE 30, 2013
Activities
Governmental
See notes to basic financial statements 1
JACKSON COUNTY SCHOOL DISTRICT NO. 5
STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS
FISCAL YEAR ENDED JUNE 30, 2013
Functions/Programs
Governmental activities:
Instruction $ 15,472,932 $ 746,756 $ 1,577,617 $ (13,148,559)
Supporting Services 11,241,457 24,808 927,933 (10,288,716)
Enterprise and community services 740,521 528,103 444,422 232,004
Facilities acquisition and construction 77,105 - - (77,105)
Depreciation-unallocated 2,121,540 - - (2,121,540)
Interest on long-term debt 1,485,605 - - (1,485,605) - - - -
Total government activities $ 31,139,160 $ 1,299,667 $ 2,949,972 (26,889,521)
General revenues:
Property taxes levied for general purposes 11,090,966
Property taxes for Local Option Tax 2,278,320
Property taxes levied for debt service 5,272,339
Construction Excise Tax 189,088
State school fund - general support 7,812,050
Common school fund 248,104
Federal forest fees 47,205
Contributions 320,133
Interest 63,991
Unrestricted state and local sources 269,333
Gain on disposal of assets 10,924
Miscellaneous 144,155
Total general revenues 27,746,608
CHANGE IN NET POSITION 857,087
Net Position - July 1, 2012 35,491,022
Net Position - June 30, 2013 $ 36,348,109
Program Revenues
Operating
Grants and
Net (Expense)
Revenue and
Change
In Net PositionContributionsExpenses
Charges for
Services
See notes to basic financial statements 2
FUND FINANCIAL STATEMENTS
JACKSON COUNTY SCHOOL DISTRICT NO. 5
STATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS
GOVERNMENTAL FUNDS
ASSETS
Equity in pooled cash and investments $ 2,076,113 $ 183,579 $ 319,610 $ 870,677 $ 3,449,979
TOTAL ASSETS $ 2,076,113 $ 183,579 $ 319,610 $ 870,677 $ 3,449,979
LIABILITIES AND FUND BALANCES
Liabilities:
Payroll liability $ 19,380 $ - $ - $ - $ 19,380
TOTAL LIABILITIES $ 19,380 $ - $ - $ - $ 19,380
Fund Balances:
Restricted - Debt Service - - 319,610 - 319,610
Restricted - Capital Projects - - - 579,428 579,428
Committed - Capital Projects - - - 291,249 291,249
Assigned 93,142 183,579 - - 276,721
Unassigned 1,963,591 - - - 1,963,591
Total fund balances 2,056,733 183,579 319,610 870,677 3,430,599
TOTAL LIABILITIES
AND FUND BALANCES $ 2,076,113 $ 183,579 $ 319,610 $ 870,677 $ 3,449,979
Capital
Project
Fund Total
Debt
Service
Fund
JUNE 30, 2013
Fund
General
Special
Revenue
Fund
See notes to basic financial statements 3
JACKSON COUNTY SCHOOL DISTRICT NO. 5
RECONCILIATION OF GOVERNMENTAL FUNDS STATEMENT
OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS
TO STATEMENT OF NET POSITION - MODIFIED CASH BASIS
FISCAL YEAR ENDED JUNE 30, 2013
TOTAL FUND BALANCES $ 3,430,599
Capital assets are not financial resources and therefore are not reported
in the governmental funds:
Land $ 3,068,559
Construction in Process 35,339
Buldings and Inprovements 77,479,549
Machinery and equipement 3,415,119
Accumulated depreciation (21,694,978) 62,303,588
Internal service funds are used by the District to charge the costs of
unemployment benefits, workers compensation, health insurance and
liability programs. The assets of the internal service fund are
included in governmental activities in the Statement of Activities 1,521,821
Long-term liabilities not payable in the current year are not reported as
governmental fund liabilities.
These liabilities consist of:
Bonds payable (29,610,000)
Bond premium (569,746) (30,179,746)
The other postemployment benefit liability obligation is not reported with the
governmental funds. (728,153)
NET POSITION, June 30, 2013 $ 36,348,109
See notes to basic financial statements 4
JACKSON COUNTY SCHOOL DISTRICT NO. 5
STATEMENT OF REVENUES COLLECTED, EXPENSES PAID AND
CHANGES IN FUND BALANCE - CASH BASIS
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED JUNE 30, 2013
REVENUES
Local sources $ 14,785,524 $ 392,716 $ 5,288,141 $ 192,304 $ 20,658,685
Intermediate sources 229,848 - - - 229,848
State sources 8,099,639 808,391 - - 8,908,030
Federal Sources 49,149 2,033,703 - - 2,082,852
TOTAL REVENUES 23,164,160 3,234,810 5,288,141 192,304 31,879,415
EXPENDITURES
Current
Instruction 13,730,762 1,716,046 - - 15,446,808
Support services 10,219,995 951,653 - 82,137 11,253,785
Enterprise and community services 807 759,920 - - 760,727
Facility acq. and construction - - - 255,651 255,651
Debt service - - 5,245,563 - 5,245,563
TOTAL EXPENDITURES 23,951,564 3,427,619 5,245,563 337,788 32,962,534
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (787,404) (192,809) 42,578 (145,484) (1,083,119)
OTHER FINANCING SOURCES (USES):
Sale of capital assets 10,924 - - - 10,924
Transfers In 204,165 125,000 - - 329,165
Transfers Out (125,000) (4,165) - - (129,165)
TOTAL OTHER FINANCING
SOURCES (USES) 90,089 120,835 - - 210,924
NET CHANGE IN FUND BALANCE (697,315) (71,974) 42,578 (145,484) (872,195)
FUND BALANCE, July 1, 2012
Restricted - Debt Service - - 277,032 - 277,032
Restricted - Capital Projects - - - 725,869 725,869
Committed - Capital Projects - - - 290,292 290,292
Assigned - 255,553 - - 255,553
Unassigned 2,754,048 - - - 2,754,048
FUND BALANCE, July 1, 2012 2,754,048 255,553 277,032 1,016,161 4,302,794
FUND BALANCE, June 30, 2013
Restricted - Debt Service - - 319,610 - 319,610
Restricted - Capital Projects - - - 579,428 579,428
Committed - Capital Projects - - - 291,249 291,249
Assigned 93,142 183,579 - - 276,721
Unassigned 1,963,591 - - - 1,963,591
FUND BALANCE, June 30, 2013 $ 2,056,733 $ 183,579 $ 319,610 $ 870,677 $ 3,430,599
General
Fund Total
Special
Revenue
Fund
Debt
Service
Fund
Capital
Project
Fund
See notes to basic financial statements 5
JACKSON COUNTY SCHOOL DISTRICT NO. 5
RECONCILIATION OF THE STATEMENT OF REVENUES COLLECTED, EXPENSES
PAID AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS
NET CHANGE IN FUND BALANCE $ (872,195)
Amounts reported for governmental activities in the Statement of Activities are
different because:
Government funds report capital outlay as expenditures. However, in the
Statement of Activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense. This is the amount by which
depreciation exceeded capital outlays in the current period.
Expenditures for capital assets $ 227,782
Less current year depreciation (2,121,540) (1,893,758)
The issuance of long-term debt provides current financial resources to governmental
funds, while the payment of the principal of long-term debt consumes the current
financial resources of governmental funds. Neither transaction, however, has any effect
on net assets. Also, governmental funds report the effect of issuance costs, premiums,
discounts, and similar items when debt is first issued, whereas these amounts are
are deferred and amortizied in the Statement of Activities. This amount is the net effect
of these differences in the treatment of long-term debt and related items.
Amortization of bond premimum 94,958
Repayment of debt principal in the current period 3,665,000
In the Statement of Activities, contributions for other post employment benefits less
than the actuarially determined amount increases the other post employment benefit
obligation. In the governmental funds, the entire contribution is recognized as an
expenditure. This is the amount by which the obligation changed. (42,832)
Internal service fund are used by the District to charge the costs of
unemployment benefits, workers compensation, health insurance and
liability programs. The change in net position in the internal service
fund is reported with the governmental activities. (94,086)
CHANGE IN NET POSITION $ 857,087
FISCAL YEAR ENDED JUNE 30, 2013
See notes to basic financial statements 6
JACKSON COUNTY SCHOOL DISTRICT NO. 5
STATEMENT OF NET POSITION - CASH BASIS
INTERNAL SERVICE FUND
ASSETS:
Current assets:
Cash and cash equivalents $ 1,521,821
TOTAL ASSETS $ 1,521,821
NET POSITION:
Unrestricted $ 1,521,821
TOTAL NET POSITION $ 1,521,821
JUNE 30, 2013
Service
Fund
Internal
See notes to basic financial statements 7
JACKSON COUNTY SCHOOL DISTRICT NO. 5
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
FUND NET POSITION - CASH BASIS
INTERNAL SERVICE FUND
FISCAL YEAR ENDED JUNE 30, 2013
OPERATING REVENUES:
Miscellaneous $ 43,260
Services provided other funds 4,334,551
Total Operating Revenues 4,377,811
OPERATING EXPENSES:
Support services 4,271,897
Transfers 200,000
OPERATING INCOME (LOSS) (94,086)
CHANGE IN NET POSITION (94,086)
NET POSITION, July 1, 2012 1,615,907
NET POSITION, June 30, 2013 $ 1,521,821
Service
Fund
Internal
See notes to basic financial statements 8
JACKSON COUNTY SCHOOL DISTRICT NO. 5
STATEMENT OF CASH FLOWS - CASH BASIS
INTERNAL SERVICE FUND
FISCAL YEAR ENDED JUNE 30, 2013
Cash Flows From Operating Activities
Charges for services $ 4,370,430
Payments to suppliers (4,471,897)
Net Cash Provided (Used) By Operating Activities (101,467)
Cash Flows From Investing Activities
Interest and dividends received 7,381
Net Cash Provided (Used) By Investing Activities 7,381
Net Increase (Decrease) in Cash and Cash Equivalents (94,086)
Cash and Cash Equivalents - July 1, 2012 1,615,907
Cash and Cash Equivalents - June 30, 2013 $ 1,521,821
Service
Fund
Internal
See notes to basic financial statements 9
JACKSON COUNTY SCHOOL DISTRICT NO. 5
STATEMENT OF FIDUCIARY NET POSITION - CASH BASIS
FIDUCIARY FUND
ASSETS:
Cash and investments $ 32,544
TOTAL ASSETS $ 32,544
NET POSITION:
Reserved for scholarships $ 18,869
Permanent endowment for scholarships 13,675
$ 32,544
TOTAL NET POSITION
JUNE 30, 2013
Purpose Trust
Fund
Private
See notes to basic financial statements 10
JACKSON COUNTY SCHOOL DISTRICT NO. 5
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - CASH BASIS
FIDUCIARY FUND
FISCAL YEAR ENDED JUNE 30, 2013
ADDITIONS
Contributions $ 106,092
TOTAL ADDITIONS 106,092
DEDUCTIONS
Scholarships awarded 113,245
TOTAL DEDUCTIONS 113,245
CHANGE IN NET POSITION (7,153)
NET POSITION, July 1, 2012 39,697
NET POSITION, June 30, 2013 $ 32,544
Purpose Trust
Fund
Private
See notes to basic financial statements 11
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
12
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Reporting Entity Jackson County School District No. 5 (the District), Ashland, Oregon, was organized under provisions of Oregon Statutes pursuant to ORS Chapter 332 for the purpose of operating elementary and secondary schools. The District is governed by a separately elected five-member Board of Education (Board) who approves the administrative officials. The daily functioning of the District is under the supervision of the Superintendent. All activities of the District have been included in the basic financial statements. The District qualifies as a primary government since it has a separately elected governing body, is a legally separate entity, and is fiscally independent. There are various governmental agencies and special service districts, which provide service within the District’s boundaries. However, the District is not financially accountable for any of these entities, and therefore, none of them are considered component units or included in these basic financial statements. The more significant of the District’s accounting policies are described below. Basis of Presentation Government-wide Financial Statements The Statement of Net Position and the Statement of Activities display information about the District. These statements include the governmental financial activities of the overall District. Eliminations have been made to minimize the double counting of internal activities. Governmental activities are financed primarily through property taxes, intergovernmental revenues, and charges for services. The Statement of Activities presents a comparison between direct expenses and program revenues for each of its functions/programs. Direct expenses are those that are specifically associated with a function and, therefore, are clearly identifiable to that function. Eliminations have been made to minimize the double counting of internal activities in the Statement of Activities. Program revenues include: (1) charges to students or others for tuition, fees, rentals, material, supplies or services provided, (2) operating grants and contributions and (3) capital grants and contributions. Revenues that are not classified as program revenues, including property taxes and state support, are presented as general revenues. Separate financial statements are provided for governmental funds, internal service funds and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements. Net Position is reported as restricted when constraints placed on net asset use are either externally restricted, imposed by creditors (such as through grantors, contributors or laws) or through constitutional provisions or enabling resolutions. Fund Financial Statements The fund financial statements provide information about the District's funds. Separate statements for each fund category are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
13
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The District reports the following major governmental funds: General Fund – This is the District's primary operating fund and accounts for all revenues and expenditures except those required to be accounted for in another fund. Special Revenue Fund – This fund accounts for revenues and expenditures of grants restricted for specific educational purposes and the food service programs. Principal revenue sources are federal and state grants, student activities, charges for meals, and other grants. Debt Service Fund – This fund provides for the payment of principal and interest on general obligation bonded debt. Principal revenue sources are property taxes. Capital Projects Fund – This fund accounts for the acquisition of capital assets or construction of major capital projects not being financed by the General Fund. The major sources of revenue are the proceeds from the sale of general obligation bonds, interest earnings on those proceeds and State School Funds for transportation. Additionally, the District reports the following fund types: Internal service funds account for costs incurred by the District under its self-insurance program for unemployment benefits, workers compensation, health insurance and liability program. These services are provided to other governmental funds on a cost reimbursement basis. The private-purpose trust fund is used to account for fund-raising and scholarship resources held by the District in a fiduciary capacity for scholarships by graduating students. Disbursements from this fund are made in accordance with the trust and fund-raising agreements. Measurement Focus and Basis of Accounting Government-wide financial statements are reported using the economic resources measurement focus, within the limitations of the modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. Revenues are recorded when collected and expenses are recorded when paid. Non-exchange transactions, in which the District receives value without giving equal value in exchange, include property taxes, grants, entitlements and donations. On the modified cash basis of accounting, revenue from property taxes is recognized in the fiscal year for which the taxes are received. Revenue from grants, entitlements, and donations is recognized in the fiscal year received, regardless of when all eligibility requirements have been satisfied. Under terms of grant agreements, the District funds certain programs by a combination of specific cost-reimbursement grants and general revenues. Thus, when program expenses are paid, there are both restricted and unrestricted net position is available to finance the program; it is the District's policy to first apply cost-reimbursement grant resources to such programs and then general revenues. Under the modified cash basis of accounting, certain modifications having substantial support, such as depreciation, capital assets and the associated long-term debt has been included in the Statement of Net Position and the Statement of Activities. Governmental fund financial statements are reported using a “current financial resources” measurement focus. Only current financial assets and liabilities are generally included on the balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. Expenditures are recorded when paid, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in the governmental funds and proceeds from general long-term debt and acquisitions under capital leases are reported as other financing sources.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
14
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Private sector standards of accounting and reporting issued prior to December 1, 1989, generally are followed in the government-wide fund financial statements to the extent that these standards do not conflict or contradict the guidance of the Governmental Accounting Standards Board. Cash, Cash Equivalents and Investments The District’s cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less. Short-term investments are stated at cost which approximates fair value. The District's investments, authorized under state statute, consist of the State of Oregon Treasurer’s Local Government Investment Pool (LGIP). The LGIP is stated at cost which approximates fair value. Fair value of the LGIP is the same as the District’s value in the pool shares. The Oregon State Treasury administers the LGIP. It is an open-ended no-load diversified portfolio offered to any agency, political subdivision or public corporation of the State that by law is made the custodian of, or has control of, any fund. The LGIP is commingled with the State’s short-term funds. In seeking to best serve local governments of Oregon, the Oregon legislature established the Oregon Short-Term Fund Board. The purpose of the Board is to advise the Oregon State Treasury in the management and investment options of the LGIP. The investments are regulated by the Oregon Short Term Fund Board and approved by the Oregon Investment Council (ORS 294.805 to 294.895). Property Taxes Receivable Ad valorem property taxes are levied on all taxable property as of January 1 preceding the beginning of the fiscal year. Property taxes become a lien on July 1 for personal property and real property. Property taxes are levied on July 1. Collection dates are November 15, February 15, and May 15. Discounts are allowed if the amount due is received by November 15 or February 15. Taxes unpaid and outstanding on May 16 are considered delinquent. Uncollected property taxes are not recorded on the Statement of Net Position under the modified cash basis of accounting. Inventories The District utilizes the "purchase" method of accounting for inventories. Under this method, inventories are recorded as expenditures upon acquisition. Capital Assets Capital assets are recorded at original or estimated original cost. Donated capital assets are recorded at their estimated fair market value on the date donated. The District defines capital assets as assets with an initial cost of more than $5,000 and an estimated life in excess of three years. Interest incurred during construction is not capitalized. Maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Capital assets are depreciated using the straight-line method over the following useful lives:
Buildings and improvements 10 to 50 years Equipment 5 to 30 years
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
15
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Retirement Plan Substantially all of the District's employees are participants in the State of Oregon Public Employees Retirement System (PERS). Contributions to PERS are made on a current basis as required by the plan and are charged as expenditures/expenses as funded. Compensated Absences There is no liability for compensated absences reported in the government-wide financial statements because the District is on modified cash basis of accounting. All unused vacation and compensated time vests with employees and is payable upon termination of employment. In addition sick leave accrues and can be carried forward from year to year. Unused sick leave is not reported as an expense until used. Long-term Debt In the government-wide financial statements long-term debt is reported as a liability in the Statement of Net Position. Bonds payable are reported at the gross amount of the liability net of the current portion. Bond premiums and discounts, as well as issuance costs, are accrued and amortized over the life of the bond. Long-term debt arising from cash basis transactions of governmental funds is not reported as liabilities in the fund financial statements. Bond premiums and discounts, as well as bond issuance costs, are recognized when incurred and not deferred. The face amount of the debt issued, premiums received on debt issuances, and discounts are reported as other financing sources and uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. The payment of principal and interest are reported as expenditures when paid. Net Position/Fund Balance In the government-wide financial statements, Net Position is classified as net assets and is displayed in three components:
1. Investment in capital assets, net of related debt – Consists of the cost of capital assets less the accumulated depreciation less any outstanding principal related to the capital asset.
2. Restricted net position - Consists of net assets with constraints placed on the use either by (1)
external groups such as creditors, grantors, contributors, or laws and regulations of other governments; or (2) law through constitutional provisions or enabling legislation.
3. Unrestricted net position - All other net assets that do not meet the definitions above
In the fund financial statements, governmental fund balance is classified in the following categories:
• Non-Spendable -- Includes items not immediately converted to cash, such as prepaid items and inventory.
• Restricted -- Includes items that are restricted by external creditors, grantors or contributors, or restricted by legal constitutional provisions.
• Committed -- Includes items committed by the District’s Board of Director’s, by formal board action.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
16
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
• Assigned -- Includes items assigned for specific uses, authorized by the District’s Superintendent and/or Business Manager.
• Unassigned -- This is the residual classification used for those balances not assigned to another category.
Budget A budget is prepared and legally adopted for each fund on the modified cash basis of accounting. The budgetary basis of accounting is in conformity with a comprehensive basis of accounting other than generally accepted accounting principles (GAAP) for the fund. Capital outlay expenditures, including items below the District's capitalization level, are budgeted by major function in governmental fund types. The resolution authorizing appropriations for each fund sets the level by which expenditures cannot legally exceed appropriations. Appropriations are established at the major function level (instruction, support services, enterprise and community services, facilities acquisition and construction, debt service, contingency and transfers) for each fund. The detail budget document, however, is required to contain more specific, detailed information for the aforementioned expenditure categories. Unexpected additional resources may be added to the budget through the use of a supplemental budget and appropriation resolution. Supplemental budgets less than 10% of a fund’s original budget may be adopted by the Board at a regular meeting. A supplemental budget greater than 10% of a fund’s original budget requires hearings before the public, publication in newspapers and approval by the Board. Original and supplemental budgets may be modified by the use of appropriation transfers within a fund between the levels of control (major function levels) with Board approval. Appropriations lapse at the end of each fiscal year. Use of Estimates The preparation of basic financial statements in conformity with the other comprehensive basis of accounting (OCBOA) used by the District requires management to make estimates and assumptions that affect certain reported amounts and disclosures (such as estimated useful lives in determining depreciation expense, actuarial determined liability for OPEB); accordingly, actual results could differ from those estimates. NOTE 2 – EQUITY IN POOLED CASH AND INVESTMENTS
Cash and investments are comprised of the following as of June 30, 2013:
Carrying amount of demand deposits 926,548$
Carrying amount of investments 4,077,796
5,004,344$
Cash and investments are shown on the basic financial statements as:
Statement of Net Position
Equity in Pooled Cash and Investments 3,781,513$
Equity in Pooled Cash and Investments restricted to capital projects 870,677
Equity in Pooled Cash and Investments restricted to debt service 319,610
Equity in Pooled Cash and Investments for Fiduciary Funds 32,544
5,004,344$
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
17
NOTE 2 – EQUITY IN POOLED CASH AND INVESTMENTS (CONTINUED) Deposits. The Governmental Accounting Standards Boards has adopted accounting principles generally accepted in the United States of America (GAAP), which include standards to categorize deposits to give an indication of the level of custodial credit risk assumed by the District at June 30, 2013. If bank deposits at year end are not entirely insured or collateralized with securities held by the District or by its agent in the District’s name, the District must disclose the custodial credit risk that exists. Deposits with financial institutions are comprised of bank demand deposits. For deposits in excess of federal depository insurance, Oregon Revised Statutes require depository institutions to be in compliance with ORS 295. For the fiscal year ended June 30, 2013, the carrying amounts of the District’s deposits in various qualifying financial institutions were $926,548. The bank balances at June 30, 2013 were $1,513,217. Of this balance, FDIC covered $250,000, the remainder was considered un-collateralized, however, these funds were deposited in an approved depository as identified by the State’sTreasurer. Effective July 1, 2008, House Bill 2901 created a shared liability structure for participating bank depositories in Oregon. Barring any exceptions, a qualifying bank depository is required to pledge collateral valued at least 10% of their quarter-end public fund deposits if they are well capitalized, 25% of the quarter-end public fund deposits if they are adequately capitalized, or 110% of the quarter-end public fund deposits if they are undercapitalized or assigned to pledge 110% by the Office of State Treasurer. In the event of a bank failure, the entire pool of collateral pledged by all qualified Oregon public bank depositories is available to repay the deposits of public funds of governmental entities. Custodial Credit Risk. Custodial credit risk for deposits is the risk that, in the event of a bank failure, a government’s deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk. Investments. Jackson County School District No. 5 has invested funds in the State Treasurer’s Oregon Short-term Fund Local Government Investment Pool during fiscal year 2013. The Oregon Short-term Fund is the local government investment pool for local governments and was established by the State Treasurer. It was created to meet the financial and administrative responsibilities of federal arbitrage regulations. The investments are regulated by the Oregon Short-Term Fund Board and approved by the Oregon Investment Council (ORS 294.805 to 294.895). Local Government Investment Pool (LGIP) is an external investment pool managed by the State Treasurer’s office, which allow governments within the state to pool their funds for investment purposes. The amounts invested in the pool are not classified by risk categories because they are not evidenced by securities that exist in physical or book entry form as defined by GASB Statement No. 40. LGIP is not rated. In addition, the Oregon State Treasury LGIP distributes investment income on an amortized cost basis and participants’ equity in the pool is determined by the amount of participant deposits, adjusted for withdrawals and distributed income. Accordingly, the adjustment to fair value would not represent an expendable increase in the District’s cash position. Investments in the Oregon State Treasury LGIP are made under the provisions of ORS 194.180. These funds are held in the District’s name and are not subject to collateralization requirements or ORS 295.015. Investments are stated at amortized cost, which approximated fair value. State of Oregon statutes restrict the types of investments in which the District may invest. Authorized investments include obligations of the United States Government and its agencies, certain bonded obligations of Oregon municipalities, bank repurchase agreements, bankers’ acceptances, time certificates of deposit, certain commercial paper, and the State of Oregon Treasurer’s Local Government Investment Pool. As of June 30, 2013 and for the year then ended, the District was in compliance with the aforementioned State of Oregon statutes.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
18
NOTE 2 – EQUITY IN POOLED CASH AND INVESTMENTS (CONTINUED) Credit Risk. State Statutes authorize the District to invest primarily in general obligations of the U.S. Government and its agencies, certain bonded obligations of Oregon municipalities, bank repurchase agreements, banker’s acceptances, certain commercial papers, and the State Treasurer’s Investment Pool, among others. The District has no formal investment policy that further restricts its investment choices. Concentration of Credit Risk. The District is required to provide information about the concentration of credit risk associated with its investments in one issuer that represents 5 percent or more of the total investments, excluding investments in external investment pools or those issued and explicitly guaranteed by the U.S. Government. The District has no such investments. Interest Rate Risk. The District has no formal investment policy that explicitly limits investment maturities as a means of managing its exposure to fair value loss arising from increasing interest rates. As of June 30, 2013, the District had the following investments:
Perentage
Maturity of Portfolio Fair Value
Local Government Investment Pool 1 day 100% $ 4,077,796
Investment Type
NOTE 3 – RECEIVABLES Property taxes are assessed and attached as an enforceable lien on property as of July 1. Taxes are levied on July 1 and are payable on November 15. They may be paid in installments due November 15, February 15, and May 15. Taxes are billed and collected by the County of Jackson and remittance to the District is made at periodic intervals. For the fiscal year 2012-13, the District levied its permanent tax of $4.1601 per $1,000 of assessed value, $5,400,000 for bonded debt and $1.29 per $1,000 of assessed value for the approved Local Option Tax. These amounts were expected to raise $20,304,180. After reduction for estimated shared offsets, truncation, and loss due to constitutional limits of $1,280,050, this resulted in a net levy of $19,074,130.
Collections
Receivable 2012-13 and Receivable
7/1/2012 Net Levy Adjustments 6/30/2013
2012-13 19,074,130$ 18,245,472$ 828,658$
2011-12 862,908$ 465,408 397,500
2010-11 389,107 174,935 214,172
2009-10 224,210 111,449 112,761
2008-09 97,651 65,947 31,704
2007-08 25,448 7,130 18,318
Prior years 30,931 9,115 21,816
Totals 1,630,255$ 19,074,130$ 19,079,456$ 1,624,929$
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
19
NOTE 3 – RECEIVABLES (CONTINUED) Under the modified cash basis method of accounting, property taxes are reflected as revenue only in the period they are received. Accordingly, the receivable of $1,624,929 as of June 30, 2013 is not included in the Statement of Net Position. NOTE 4 – CAPITAL ASSETS The changes in capital assets for the year ended June 30, 2013, are as follows:
Capital assets not being depreciated:
Construction in progress $ 35,339 $ - $ - $ 35,339
Land 2,899,578 168,981 - 3,068,559
Total capital asset not being depreciated: 2,934,917 $ 168,981 $ - 3,103,898
Capital assets being depreciated:
Buildings and improvements 77,463,182 $ 16,367 $ - 77,479,549
Machinery and equipment 3,372,685 42,434 - 3,415,119
Total capital assets being depreciated 80,835,867 $ 58,801 $ - 80,894,668
Less accumulated depreciation for:
Buildings and improvements (18,229,340) $ (1,917,766) $ - (20,147,106)
Machinery and equipment (1,344,098) (203,774) - (1,547,872)
Total accumulated depreciation (19,573,438) $ (2,121,540) $ - (21,694,978)
Buildings and improvements, net 59,233,842 57,332,443
Machinery and equipment, net 2,028,587 1,867,247
Total capital assets being depreciated, net 61,262,429 59,199,690
Total capital assets, net $ 64,197,346 $ 62,303,588
June 30, 2013DecreasesAdditionsJuly 1, 2012
Unallocated depreciation expense for fiscal year 2013 totaled $2,121,540.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
20
NOTE 5 – LEASES The District leases equipment under non-cancelable operating leases. Total costs for such leases were $18,700 for the fiscal year ended June 30, 2013. The future minimum lease payments for these leases are as follows:
Fiscal Year Ending June 30
2014 12,443$
2015 10,464
2016 10,464
2017 10,464
2018 4,360
48,195$
NOTE 6 – LONG-TERM DEBT Bond Payable During the 2006-2007 fiscal year, the District issued General Obligation Bonds in the amount of $46,800,000. The purpose of these bonds was to finance the costs of constructing, equipping, & furnishing various schools within the District. These bonds are general obligations of the District, and the full faith, credit and taxing powers of the District are pledged. The interest rate is 4.5% and it is payable semiannually. Interest paid during the 2012-13 fiscal year was $1,580,563. The Bonds maturing on June 15, 2018 and on any date thereafter are subject to redemption at the option of the District prior to their stated maturity dates at any time on or after June 15, 2017, as a whole or in part, and if in part, with maturities to be selected by the District within a maturity at a price of par, plus accrued interest, if any, to the date of redemption. Future maturities of the general obligation bonds currently outstanding are as follows:
Fiscal Year Ending
June 30 Principal Interest Total
2014 3,995,000$ 1,404,688$ 5,399,688$
2015 4,335,000 1,227,938 5,562,938
2016 4,710,000 1,015,313 5,725,313
2017 5,105,000 797,963 5,902,963
2018 5,515,000 563,938 6,078,938
2019 5,950,000 288,188 6,238,188
29,610,000$ 5,298,028$ 34,908,028$
General Obligation Bonds
Outstanding Series 2007
The bond was sold at a premium of $1,139,492. The current balance is $569,746. This amount is reported on the Statement of Net Position. This premium will be amortized over the life of the bond on a straight-line basis, and recorded in each year as part of interest expense in the Statement of Activities. The annual amortization of this premium is $94,958.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
21
NOTE 6 – LONG-TERM DEBT (CONTINUED) During the fiscal year ended June 30, 2013, the following changes occurred in long-term debt:
Balance Balance Due within
6/30/2012 Increases Decreases 6/30/2013 one year
General Obligation 33,275,000$ -$ (3,665,000)$ 29,610,000$ 3,995,000$
Bonds NOTE 7 – INTERFUND TRANSACTIONS Interfund transfers during the year ended June 30, 2013, were as follows:
In Out
General Fund 204,165$ 125,000$
Special Revenue Fund 125,000 4,165
Internal Service Fund - 200,000
329,165$ 329,165$
Transfers
The District made transfers from the General Fund of $125,000 to the Food Service Fund to supplement current year operations. Various other programs made transfers to the General Fund within the Special Revenue Program for $4,165. The Internal Service Fund also made a transfer to the General Fund for $200,000 as part of a budgeted transfer. All transfers were budgeted. NOTE 8 – OTHER POSTEMPLOYMENT BENEFITS Postemployment Health Insurance Subsidy Implicit Benefit The District implemented GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (OPEB) for the fiscal year ended June 30, 2009. The implementation allows the District to report its liability for other post-employment benefits consistent with established generally accepted accounting principles and to reflect an actuarially determined liability for the present value of projected future benefits for retired and active employees on the financial statements. The District does not issue a stand-alone report for this plan. Plan Description. The District operates a single-employer retiree benefit plan that provides postemployment health, dental, vision and life insurance benefits to eligible employees and their spouses, children and/or domestic partners. Per the July 1, 2012 Actuarial Valuation there were 302 active and 80 inactive participants in the plan. Benefits and eligibility for members are established through the collective bargaining agreements.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
22
NOTE 8 – OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) This program was established in accordance with Oregon Revised Statutes (ORS) 243.303, which requires that all eligible retirees be allowed to continue receiving health insurance benefits, at their cost, until age 65 or they become otherwise eligible for Medicare. ORS stipulate that for the purpose of establishing healthcare premiums, the rate must be based upon all plan members, including active members and retirees. Due to medical premium rates being determined by blending both active employee and retiree experience, there is an implicit medical benefit to retirees because the medical premium rates charged for coverage typically are less than actual expected retiree claim costs. Qualified spouses, domestic partners, and children may qualify for coverage. The difference between retiree claims costs, which because of the effect of age is generally higher in comparison to all plan members, and the amount of retiree healthcare premiums represents the District’s implicit employer contribution. Funding Policy. The benefits from this program are paid by the retired employees on a self-pay basis and the required contribution is based on projected pay-as-you go financing requirements. There is no obligation on the part of the District to fund these benefits in advance. Annual OPEB Cost and Net OPEB Obligation. The District’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 10 years. The following table shows the components of the District’s annual OPEB cost for the year ending June 30, 2013, the amount actually contributed to the plan, and changes in the District’s net OPEB obligation.
Annual required contribution (ARC) and annual OPEB cost (expense) 288,043$
Less: Contributions made (304,496)
Increase (Decrease) in net OPEB obligation (16,453)
Net OPEB obligation - beginning of year 155,469
Net OPEB obligation - end of year 139,016$
The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2013 are: Postemployment Health Insurance Subsidy Implicit Benefit
Annual Funded Net OPEB
Fiscal year OPEB Cost Contributions Ratio Obligation
2013 288,043$ 304,496$ 106% 139,016$
2012 285,346 253,123 89% 155,469
2011 276,821 199,334 72% 123,246
Actuarial methods and assumptions. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. The actuarial assumptions included: (1) an assumed discount rate of 4.00% and an assumed health care inflation rate of 8% per year in 2012-13 grading down to 6% in 10 years, (2) range of retirement age for employees with fewer, and more, than 30 years of service, (3) turnover and disability rates by age and years of service, as developed by Oregon PERS, (4) marital status, (5) coverage of eligible children, (6) age 64 health claim costs, which are assumed to be $10,073 for 2012-13 and the impact of age to the claims cost which range from 5% per year under age 40 to 4.2% per year for ages 60-64, and (7) and no investment return, due to lack of assets set aside to fund this program.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
23
NOTE 8 – OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) Amounts determined regarding the funded status of the plan and the annual required contribution of the employer are subject to continual revision as actual results are compared with past expectation and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to actuarial accrued liabilities for benefits. The schedule of funding progress is required to report the last three actuarial valuations, the July 1, 2008, 2010,and 2012 are the valuations prepared to date. For the District’s initial valuation the Projected Unit Credit Method was the valuation method used to determine the District’s OPEB liability. The Projected Unit Credit Method is comprised of two components: normal cost, and amortization payments. In its application of this method the expected accrued benefit of each participant at benefit commencement (reflecting future expected increases in salaries and medical premiums) is allocated in equal proportion over the participant’s years of service from hire to expected retirement. The normal cost is the present value of benefits expected to accrue in the current year. The present value of benefits accrued in as of the valuation date is called the accrued liability. The difference between the accrued liability and the actuarial value of plan assets is called the unfunded actuarial accrued liability (UAAL). All changes in liability due to plan amendments, changes in actuarial assumptions, or changes in actuarial data are amortized separately. In additions, all gains or losses may be amortized each year. The UAAL is being amortized as a level percentage of payroll over future open periods. Funded Status and Funding Progress. As of July 1, 2012 the actuarial accrued liability for benefits was $3,099,410, and the actuarial value of assets was $0, resulting in a UAAL of $3,099,410. The covered payroll (annual payroll of active employees covered by the plan) was approx. $14.3 million for fiscal year 2012 and the ratio of the UAAL to the covered payroll was 53.2%. Using a 30-year amortization period the Annual Required Contribution (ARC) for 2013 has been actuarially determined to be $287,763. Postemployment Health Insurance Subsidy Explicit Benefit Plan Description. The District provides a single-employer defined benefit post-retirement health benefits program. This program covers all full-time certified, classified and eligible administrative personnel of the District. This program was established in accordance with various employment contracts. The District does not issue a stand-alone report for this plan. Different contracts govern the employees. For Administrative staff members hired before July 1, 2004, the program is for current employees who are PERS eligible due to retirement and who have a minimum of twenty (20) years’ experience with the District at retirement. Administrative staff hired on or after July 1, 2004 and prior to July 1, 2007, who are PERS eligible due to retirement and who have at least 14 years of service with the District at retirement are also eligible. Coverage for retirees and eligible dependents continues until the participant dies or is eligible for Medicare, whichever comes first. The District shall contribute the same premium offered active administrators toward the purchase of full family medical-dental-vision insurance.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
24
NOTE 8 – OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) Classified employees are eligible if they meet the following requirements:
• Employee must be at least one-half (1/2) time throughout their employment with the District.
• Hired prior to July 1, 1993 and have at least 15 years of service with the District at retirement.
• Hired on or after July 1, 1993 and prior to July 1, 2000 and have at least 18 years of service with the District at retirement.
• Additionally, classified employees must be PERS eligible due to retirement to be eligible for this program. Employees hired on or after July 1, 2000 will not receive supplemental retirement benefits. Coverage for eligible classified employees will be offered for 120 months, until the participant dies, or is eligible for Medicare, whichever comes earliest. The District will pay for the medical only coverage for the retiree. Retirees choosing to purchase medical coverage for their spouse or dependents will contribute no more than twice the out-of-pocket amount that regular employees pay for the insurance benefit coverage that is then in existence within the District on a year-to-year basis.
Confidential and Supervisory employees, included in Appendix A of the July 1, 2007 collective bargaining agreement, may be eligible if they meet the following requirements:
• Employee must have averaged at least one-half (1/2) time throughout their years of employment with the District.
• Employee hired prior to July 1, 1993 who has at least 15 years of service with the District at retirement.
• Employee hired on or after July 1, 1993 and prior to July 1, 2004 who has at least 20 years of service with the District at retirement.
• Additionally, confidential and supervisory employees must be PERS eligible due to retirement to be eligible for this program. Confidential and supervisory employees hired on or after July 1, 2004 will not receive supplemental retirement benefits. Coverage for eligible Confidential and Supervisory employees will be offered for 120 months, until the participant dies, or is eligible for Medicare, whichever comes earliest. The District will pay for the medical only coverage for the retiree. Retirees choosing to purchase medical coverage for their spouse or dependents will contribute no more than twice the out-of-pocket amount that regular employees pay for the insurance benefit coverage that is then in existence within the District on a year-to-year basis.
Licensed employees listed in Article 14, Section A of the 2012 – 2015 collective bargaining agreement, who have 15 or 20 years of service upon retirement, depending upon which section of the list they are in, are eligible to receive benefits. Employees hired on or after July 1, 2007 will not receive supplemental retirement benefits. Coverage for eligible Licensed retirees and eligible dependents continues until the participant dies or is eligible for Medicare, whichever comes first. The retiree will pay the same percentage of the premium for Medical Insurance as the percentage paid by full time employees for their full insurance coverage. This applies to spouses, domestic partners and children. District will pay for the “medical only” coverage for the retiree.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
25
NOTE 8 – OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) For all classes of employees:
• Qualified spouses and domestic partners (as well as dependent children of participants) may qualify for coverage until the participant becomes eligible for Medicare.
• Only dependents covered at the time of retirement will be eligible. Funding Policy. – The District pays for all the eligible benefits. The contributions are financed on a pay-as-you-go basis. During fiscal year 2013, the District recognized, on a budgetary basis, expenditures of approximately $526 thousand for post-employment healthcare benefits. Annual OPEB Cost and Net OPEB Obligation. – The District’s annual other postemployment benefit (OPEB) cost (expense) is reflected on the Statement of Net Position on the modified cash basis, and is calculated on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 12 years. The following table shows the components of the District’s annual OPEB cost for the year ending June 30, 2013, the amount actually contributed to the plan, and changes in the District’s net OPEB obligation.
Annual required contribution (ARC) and annual OPEB cost (expense) 556,773$
Less: Contributions made (526,707)
Increase in net OPEB obligation 30,066
Net OPEB obligation - beginning of year 360,594
Net OPEB obligation - end of year 390,660$
The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB contributions for 2013 are:
Fiscal year OPEB Cost Ratio Made
2013 556,773$ 94.6% 526,707$
2012 648,559 82.7% 536,658
2011 635,158 80.8% 513,125
Actuarial methods and assumptions. – Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. The actuarial assumptions included: (1) an assumed inflation rate of 4.00% and an assumed health care inflation rate of 8% per year in 2012-13 grading down to 6% in 10 years, (2) range of retirement age for employees with fewer, and more, than 30 years of service, (3) turnover and disability rates by age and years of service, as developed by Oregon PERS, (4) marital status, (5) coverage of eligible children, (6) age 64 health claim costs, which are assumed to be $10,073 for 2012-13 and the impact of age to the claims cost which range from 5% per year under age 40 to 4.2% per year for ages 60-64, and (7) and no investment return, due to lack of assets set aside to fund this program.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
26
NOTE 8 – OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) Amounts determined regarding the funded status of the plan and the annual required contribution of the employer are subject to continual revision as actual results are compared with past expectation and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to actuarial accrued liabilities for benefits. The schedule of funding progress is required to report the last three actuarial valuations, the July 1, 2008, 2010, and 2012 are the valuations prepared to date. For the District’s initial valuation the Projected Unit Credit Method was the valuation method used to determine the District’s OPEB liability. The Projected Unit Credit Method is comprised of two components: normal cost, and amortization payments. In its application of this method the expected accrued benefit of each participant at benefit commencement (reflecting future expected increases in salaries and medical premiums) is allocated in equal proportion over the participant’s years of service from hire to expected retirement. The normal cost is the present value of benefits expected to accrue in the current year. The present value of benefits accrued in as of the valuation date is called the accrued liability. The difference between the accrued liability and the actuarial value of plan assets is called the unfunded actuarial accrued liability (UAAL). All changes in liability due to plan amendments, changes in actuarial assumptions, or changes in actuarial data are amortized separately. In additions, all gains or losses may be amortized each year. The UAAL is being amortized as a level percentage of payroll over future open periods. Funded Status and Funding Progress. As of July 1, 2012 the actuarial accrued liability for benefits was $4,509,159, and the actuarial value of assets was $0, resulting in a UAAL of $4,509,159 The covered payroll (annual payroll of active employees covered by the plan) was approx. $14.3 million for fiscal year 2012 and the ratio of the UAAL to the covered payroll was 53.2%. Using a 12-year amortization period the Annual Required Contribution (ARC) for 2013 has been actuarially determined to be $575,266. STIPEND Plan Description. The District provides a single-employer defined benefit early retirement stipend program. Different contracts govern the employees. For Administrative staff members hired before July 1, 2004, the early retirement incentive program is for current employees who are PERS eligible due to retirement and who have a minimum of twenty (20) years’ experience with the District at retirement. Administrative staff hired on or after July 1, 2004 and prior to July 1, 2007, who are PERS eligible due to retirement and who have at least 14 years of service with the District at retirement are also eligible. In return for this stipend, retirees, if available, agree to work a minimum of three days per year at no cost to the District. The maximum participation allowed by the District is 84 months, until the participant dies, or becomes eligible for Medicare, whichever comes earliest. Eligible Administrative staff members will receive $225 per month. Classified employees are eligible if they meet the following requirements:
• Employee must be at least one-half (1/2) time throughout their employment with the District.
• Hired prior to July 1, 1993 and have at least 15 years of service with the District at retirement.
• Hired on or after July 1, 1993 and prior to July 1, 2000 and have at least 18 years of service with the District at retirement.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
27
NOTE 8 – OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) Additionally, classified employees must be PERS eligible due to retirement to be eligible for this program. Employees hired on or after July 1, 2000 will not receive supplemental retirement benefits. Eligible Classified employees will receive a one-time payment of $4 for each hour of accumulated sick leave at the time of retirement. Confidential and Supervisory employees, included in Appendix A of the July 1, 2007 collective bargaining agreement, may be eligible if they meet the following requirements:
• Employee must have averaged at least one-half (1/2) time throughout their years of employment with the District.
• Employee hired prior to July 1, 1993 who has at least 15 years of service with the District at retirement.
• Employee hired on or after July 1, 1993 and prior to July 1, 2004 who has at least 20 years of service with the District at retirement.
Additionally, Confidential and Supervisory employees must be PERS eligible due to retirement to be eligible for this program. Confidential and Supervisory employees hired on or after July 1, 2004 will not receive supplemental retirement benefits. Eligible Confidential and Supervisory employees will receive monthly benefits until the participant dies or until they become eligible for Medicare, whichever comes earliest. The amount of benefits is dependent upon the employee’s amount of unused sick leave at retirement. Those with 150 to 200 days will receive $50, those with 200 to 250 days will receive $75, and those with 250 or greater will receive $100 per month. Licensed employees listed in Article 14, Section A of the 2012 – 2015 collective bargaining agreement, who have 15 or 20 years of service upon retirement, depending upon which section of the list they are in, are eligible to receive benefits. Employees hired on or after July 1, 2007 will not receive supplemental retirement benefits. The maximum participation allowed by the District is 84 months, until the participant dies, or becomes eligible for Medicare, whichever comes earliest. Eligible Licensed retirees will receive $225 per month. All amounts are prorated if the employee worked less than the full-time equivalent. Funding Policy.– The District pays for all the benefits. The contributions are financed on a pay-as-you-go basis. During fiscal year 2013 the District recognized, on a budgetary basis, expenditures of approximately $122 thousand for the early retirement supplement program. Annual Pension Cost and Net Pension Obligation. – The District’s annual pension cost (expense) is reflected on the Statement of Net Position on the accrual basis, and is calculated on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 27. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 6 years. An amortization base of 6 years was used due to the large number of retirees currently receiving a stipend benefit. Given the current population, the District expects that number to decrease in future years.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
28
NOTE 8 – OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) The following table shows the components of the District’s annual pension cost for the year ending June 30, 2012, the amount actually contributed to the plan, and changes in the District’s net pension obligation.
Annual required contribution (ARC) and annual pension cost (expense) 151,484$
Less: Contributions made (122,271)
Increase (decrease) in net pension obligation 29,213
Net pension obligation - beginning of year 169,264
Net pension obligation - end of year 198,477$
The District’s annual pension cost, the percentage of annual pension cost contributed to the plan and the net pension obligation for 2013 are:
Annual Required Percentage Contribution
Fiscal year Contribution Contributed Made
2013 151,484$ 80.7% 122,271$
2012 172438 67.40% 116,253
2011 167415 67.20% 112,474
Actuarial methods and assumptions. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. The actuarial assumptions included: (1) an assumed inflation rate of 4.00%, (2) annual payroll growth of 3.00%, (3) range of retirement age for employees with fewer, and more, than 30 years of service, (4) turnover rates by age and years of service, as developed by Oregon PERS, and (5) no investment return, due to lack of assets set aside to fund this program. Amounts determined regarding the funded status of the plan and the annual required contribution of the employer are subject to continual revision as actual results are compared with past expectation and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to actuarial accrued liabilities for benefits. The schedule of funding progress is required to report the last three actuarial valuations, the July 1, 2008, 2010, and 2012 are the only valuations prepared to date. For the District’s initial valuation the Projected Unit Credit Method was the valuation method used to determine the District’s pension liability. The Projected Unit Credit Method is comprised of two components: normal cost, and amortization payments. In its application of this method the expected accrued benefit of each participant at benefit commencement (reflecting future expected increases in salaries) is allocated in equal proportion over the participant’s years of service from hire to expected retirement. The normal cost is the present value of benefits expected to accrue in the current year. The present value of benefits accrued in as of the valuation date is called the accrued liability. The difference between the accrued liability and the actuarial value of plan assets is called the unfunded actuarial accrued liability (UAAL). All changes in liability due to plan amendments, changes in actuarial assumptions, or changes in actuarial data are amortized separately. In additions, all gains or losses may be amortized each year. The UAAL is being amortized as a level percentage of payroll over future open periods.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
29
NOTE 8 – OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) Funded Status and Funding Progress. As of July 1, 2012 the actuarial accrued liability for benefits was $725,531, and the actuarial value of assets was $0, resulting in a UAAL of $725,531. The covered payroll (annual payroll of active employees covered by the plan) was approx. $14.3 million for fiscal year 2013 and the ratio of the UAAL to the covered payroll was 96.4%. Using a 6-year amortization period the Annual Required Contribution (ARC) for 2013 has been actuarially determined to be $151,484. NOTE 9 – PENSION PLAN The District contributes to two pension plans administered by the Oregon Public Employees Retirement System (PERS). The Oregon Public Employees Retirement Fund (OPERF) applies to the District’s contribution for qualifying employees who were hired before August 29, 2003, and is a cost-sharing multiple-employer defined benefit pension plan. The Oregon Public Service Retirement Plan (OPSRP) is a hybrid successor plan to the OPERF and consists of two programs: The Pension Program: the defined benefit portion of the plan, applies to qualifying District employees hired after August 29, 2003. Benefits are calculated by a formula for members who attain normal retirement age. The formula takes into account final average salary and years of service. The IAP Program: Beginning January 1, 2004, all PERS member contributions go into the Individual Account Program (IAP), the defined contribution portion of the plan. PERS members retain their existing PERS accounts, but any future member contributions are deposited into the member’s IAP, not the member’s PERS account. Both PERS plans provide retirement and disability benefits, post-employment healthcare benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. PERS is administered under Oregon Revised Statute Chapter 238, which establishes the Oregon Public Employees Retirement Board (OPERB) as the governing body of PERS. PERS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to PERS, PO Box 23700, Tigard, OR, 97281-3700 or by calling 503-598-7377. Covered employees are required by state statute to contribute 6.00% of their annual salary to the system, but the employer is allowed to pay any or all of the employees’ contribution in addition to the required employers’ contribution. The District elected to contribute the 6.00% “pick-up” for the year ended June 30, 2013. The District is required by ORS 238.225 to contribute at an actuarially determined rate for the qualifying employees under the OPERF plan, and a general service rate for the qualifying employees under the OPSRP plan. The OPERF and the OPSRP rates in effect for the year ended June 30, 2013 were 19.48% and 17.97% respectively. The contribution requirements for plan members are established by ORS Chapter 238 and may be amended by an act of the Oregon Legislature. The District’s contributions to PERS for the years ending June 30, 2013, 2012, and 2011 were $3,853,838, $3,155,030, and $2,668,064, and, respectively, equal to the required contributions for each year. NOTE 10 – SELF-INSURANCE The District’s insurance fund had four insurance programs for the fiscal year ended June 30, 2013. The largest program is the self-insured health insurance where there were 376 employees and retirees covered under this plan. The District pays claims up to a stop loss of $200,000 per employee. The District paid claims, administrative costs and premiums of $4,150,468 in total for the year. The District carries commercial insurance for claims above the stop loss amount. At June 30, 2013, the incurred but not yet paid health claims for the District was $486,201. In addition to health insurance, the District is responsible for all unemployment claims, the first $50,000 in property/liability claims and for workers compensation claims up to an aggregate maximum limit of $77,242.
JACKSON COUNTY SCHOOL DISTRICT NO. 5 Notes to Basic Financial Statements
June 30, 2013
30
NOTE 11 – CONTINGENCIES Amounts received/receivable from grantor agencies are subject to compliance audits by grantors or their representatives. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the District expects such amounts, if any, to be immaterial. The District, in the regular course of business, is named as a defendant in various lawsuits. The likely outcome of these lawsuits is not presently determinable, although the District believes it will prevail. NOTE 12 – CURRENT VULNERABILITY DUE TO CERTAIN CONCENTRATIONS The District’s operations are concentrated within Jackson County. In addition, substantially all the District’s revenues for continuing operations are from federal, state, and local government agencies. In the normal course of operations, the District receives grant funds from various Federal and State agencies. The grant programs are subject to audit by agents of the granting authority, the purpose of which is to ensure compliance with conditions precedent to the granting of funds. Any liability for reimbursement which may arise as the result of these audits is not believed to be material. NOTE 13 – RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the District carries commercial insurance. Worker’s compensation insurance is also provided through a commercial carrier. There has been no significant reduction in insurance coverage from the prior year and the District has not been required to pay any settlements in excess of insurance coverage during the past three fiscal years ending June 30, 2013. NOTE 14 – SUBSEQUENT EVENTS Management of the District has evaluated events and transactions occurring after June 30, 2013 through the date of the financial statements were available for issuance, for recognition and/or disclosure in the financial statements. There were no additional events and/or transactions that required recognition and disclosure in the financial statements.
SUPPLEMENTARY INFORMATION
JACKSON COUNTY SCHOOL DISTRICT NO. 5
SCHEDULE OF FUNDING PROGRESS - OTHER POSTEMPLOYMENT BENEFITS
GASB 45/27
FISCAL YEAR ENDED JUNE 30, 2013
Actuarial
Actuarial Accrued Unfunded UAAL as a
Actuarial Value of Liability (AAL) (funded) Funded Covered percentage of
Valuation Assets unit credit AAL ratio Payroll covered payroll
(a) (b) (b - a) (a / b) © [(b - a )/ c]
7/1/2008 - 9,276,085$ 9,276,085$ 0% 14,600,000$ 63.5%
7/1/2010 - 8,511,730$ 8,511,730$ 0% 14,647,000$ 58.1%
7/1/2012 - 8,334,100$ 8,334,100$ 0% 14,314,717$ 58.2%
The above table represents the most recent actuarial valuation for the District's other postemployment benefits and provides information
that approximates the funding progress of the plan.
The AAL reported above is comprised of:
Stipend 725,531$
Explicit 4,509,159
Implicit 3,099,410
Total 8,334,100$
31
JACKSON COUNTY SCHOOL DISTRICT NO. 5
SCHEDULE OF REVENUES COLLECTED, EXPENSES PAID AND CHANGES
IN FUND BALANCE - CASH BASIS
GENERAL FUND
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2013
Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
REVENUES
Local sources $ 14,662,562 $ 14,662,562 $ 14,785,524 $ 122,962
Intermediate sources 65,000 65,000 229,848 164,848
State sources 8,318,016 8,318,016 8,099,639 (218,377)
Federal sources - - 49,149 49,149
TOTAL REVENUES 23,045,578 23,045,578 23,164,160 118,582
EXPENDITURES
Current
Instruction 14,234,124 14,234,124 13,730,762 503,362
Support services 10,519,181 10,519,181 10,219,995 299,186
Enterprise and community services 1,470 1,470 807 663
Contingency 1,152,803 1,152,803 - 1,152,803
TOTAL EXPENDITURES 25,907,578 25,907,578 23,951,564 1,956,014
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (2,862,000) (2,862,000) (787,404) 2,074,596
OTHER FINANCING SOURCES (USES)
Sale of fixed assets - - 10,924 10,924
Transfers in 255,000 255,000 204,165 (50,835)
Transfers out (193,000) (193,000) (125,000) 68,000
TOTAL OTHER FINANCING
SOURCES (USES) 62,000 62,000 90,089 28,089
NET CHANGE IN FUND BALANCE (2,800,000) (2,800,000) (697,315) 2,102,685
FUND BALANCE, July 1, 2012
Unassigned 2,800,000 2,800,000 2,754,048 (45,952)
FUND BALANCE, June 30, 2013
Assigned - - 93,142 93,142
Unassigned - - 1,963,591 1,963,591
$ - $ - $ 2,056,733 $ 2,056,733
Budget
32
JACKSON COUNTY SCHOOL DISTRICT NO. 5
SCHEDULE OF REVENUES COLLECTED, EXPENSES PAID AND CHANGES
IN FUND BALANCE - CASH BASIS - BUDGET AND ACTUAL
SPECIAL REVENUE FUND
FISCAL YEAR ENDED JUNE 30, 2013
REVENUES
Local sources $ 942,430 $ 942,430 $ 392,716 $ (549,714)
State sources 622,458 622,458 808,391 185,933
Federal sources 1,930,069 1,930,069 2,033,703 103,634
TOTAL REVENUES 3,494,957 3,494,957 3,234,810 (260,147)
EXPENDITURES
Current
Instruction 2,304,112 2,304,112 1,716,046 588,066
Support services 1,109,528 1,109,528 951,653 157,875
Enterprise and community services 856,067 856,067 759,920 96,147
Facilities acq. and construction 215,000 215,000 - 215,000
Debt Service 25,000 25,000 - 25,000
TOTAL EXPENDITURES 4,509,707 4,509,707 3,427,619 1,082,088
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (1,014,750) (1,014,750) (192,809) 821,941
OTHER FINANCING SOURCES (USES):
Transfers in 193,000 193,000 125,000 (68,000)
Transfers out (5,000) (5,000) (4,165) 835
TOTAL OTHER FINANCING
SOURCES (USES) 188,000 188,000 120,835 (67,165)
NET CHANGE IN FUND BALANCE (826,750) (826,750) (71,974) 754,776
FUND BALANCE, July 1, 2012
Assigned 826,750 826,750 255,553 (571,197)
FUND BALANCE, June 30, 2013
Assigned $ - $ - $ 183,579 $ 183,579
Final Budget
Variance with
Budget
Adopted Final Actual (Negative)
Positive
33
JACKSON COUNTY SCHOOL DISTRICT NO. 5
SCHEDULE OF REVENUES COLLECTED, EXPENSES PAID AND CHANGES
IN FUND BALANCE - CASH BASIS
DEBT SERVICE FUND
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2013
REVENUES
Local sources $ 5,252,000 $ 5,252,000 $ 5,288,141 $ 36,141
TOTAL REVENUES 5,252,000 5,252,000 5,288,141 36,141
EXPENDITURES
Debt service 5,250,000 5,250,000 5,245,563 4,437
TOTAL EXPENDITURES 5,250,000 5,250,000 5,245,563 4,437
NET CHANGE IN FUND BALANCE 2,000 2,000 42,578 40,578
FUND BALANCE, July 1, 2012
Restricted 312,000 312,000 277,032 (34,968)
FUND BALANCE, June 30, 2013
Restricted $ 314,000 $ 314,000 $ 319,610 $ 5,610
Final Budget
Variance with
Budget
Adopted Final Actual (Negative)
Positive
34
JACKSON COUNTY SCHOOL DISTRICT NO. 5
SCHEDULE OF REVENUES COLLECTED, EXPENSES PAID AND CHANGES
IN FUND BALANCE - CASH BASIS - BUDGET AND ACTUAL
CAPITAL PROJECTS FUND
FISCAL YEAR ENDED JUNE 30, 2013
Variance with
Final Budget
Positive
Adopted Final Actual (Negative)
REVENUES
Local sources $ 130,000 $ 130,000 $ 192,304 $ 62,304
State sources 35,000 35,000 - (35,000)
TOTAL REVENUES 165,000 165,000 192,304 27,304
EXPENDITURES
Current
Support services 180,918 180,918 82,137 98,781
Facilities acq. and construction 1,159,082 1,159,082 255,651 903,431
TOTAL EXPENDITURES 1,340,000 1,340,000 337,788 1,002,212
NET CHANGE IN FUND BALANCE (1,175,000) (1,175,000) (145,484) 1,029,516
FUND BALANCE, July 1, 2012
Restricted 1,175,000 1,175,000 725,869 (449,131)
Committed - - 290,292 290,292
FUND BALANCE, July 1, 2012 1,175,000 1,175,000 1,016,161 (158,839)
FUND BALANCE, June 30, 2013
Restricted - - 579,428 579,428
Committed - - 291,249 291,249
FUND BALANCE, June 30, 2013 $ - $ - $ 870,677 $ 870,677
Budget
35
JACKSON COUNTY SCHOOL DISTRICT NO. 5
SCHEDULE OF REVENUES COLLECTED, EXPENSES PAID AND CHANGES
IN FUND BALANCE - CASH BASIS - BUDGET AND ACTUAL
INTERNAL SERVICE FUND
FISCAL YEAR ENDED JUNE 30, 2013
REVENUES
Local sources $ 4,240,837 $ 4,240,837 $ 4,377,811 $ 136,974
TOTAL REVENUES 4,240,837 4,240,837 4,377,811 136,974
EXPENDITURES
Current
Supporting services 4,807,625 4,807,625 4,271,897 535,728
Contingency 1,183,212 1,183,212 - 1,183,212
TOTAL EXPENDITURES 5,990,837 5,990,837 4,271,897 1,718,940
NET CHANGE IN FUND BALANCE (1,750,000) (1,750,000) 105,914 1,855,914
OTHER FINANCING SOURCES (USES)
Transfers to other funds (250,000) (250,000) (200,000) 50,000
TOTAL OTHER FINANCING
SOURCES (USES) (250,000) (250,000) (200,000) 50,000
NET CHANGE IN FUND BALANCE (2,000,000) (2,000,000) (94,086) 1,905,914
FUND BALANCE, July 1, 2012 2,000,000 2,000,000 1,615,907 (384,093)
FUND BALANCE, June 30, 2013 $ - $ - $ 1,521,821 $ 1,521,821
Variance with
Final Budget
Budget Positive
Adopted Final Actual (Negative)
36
JACKSON COUNTY SCHOOL DISTRICT NO. 5
SCHEDULE OF REVENUES COLLECTED, EXPENSES PAID AND CHANGES
IN FUND BALANCE - CASH BASIS - BUDGET AND ACTUAL
FIDUCIARY TRUST & AGENCY FUND
FISCAL YEAR ENDED JUNE 30, 2013
REVENUES
Local sources $ 150,100 $ 150,100 $ 106,092 $ (44,008)
TOTAL REVENUES 150,100 150,100 106,092 (44,008)
EXPENDITURES
Current
Community Services 200,100 200,100 113,245 86,855
TOTAL EXPENDITURES 200,100 200,100 113,245 86,855
NET CHANGE IN FUND BALANCE (50,000) (50,000) (7,153) 42,847
NET CHANGE IN FUND BALANCE (50,000) (50,000) (7,153) 42,847
FUND BALANCE, July 1, 2012 63,675 63,675 39,697 (23,978)
FUND BALANCE, June 30, 2013 $ 13,675 $ 13,675 $ 32,544 $ 18,869
Adopted Final Actual (Negative)
Variance with
Final Budget
Budget Positive
37
OTHER SUPPLEMENTARY INFORMATION
SCHOOL DISTRICT FINANCIAL
ACCOUNTING SUMMARIES
Revenue from Local Sources Fund 100 Fund 200 Fund 300 Fund 400 Fund 500 Fund 600 Fund 700
1110 Ad Valorem Taxes Levied by District $11,090,966 $5,272,339
1120 Local Option Ad Valorem Taxes Levied by District 2,279,334
1130 Construction Excise Tax 189,088
1190 Penalties and Interest on Taxes 4,898 2,329
1200Revenue from Local Governmental Units Other Than
Districts
1311 Regular Day School Tuition - From Individuals
1312 Regular Day School Tuition - Other Dist Within State 106,652
1313 Regular Day School Tuition - Other Districts Outside
1320 Adult/Continuing Education Tuition
1330 Summer School Tuition 1,460
1411 Transportation Fees - From Individuals
1412 Transportation Fees - Other Dist Within State 24,242
1413 Transportation Fees - Other Districts Outside
1420 Summer School Transportation Fees
1500 Earnings on Investments 38,721 375 13,473 3,216 7,381 45
1600 Food Service 188,838
1700 Extracurricular Activiies 391,049 97,826
1800 Community Services Activities
1910 Rentals 334,401
1920 Contributions and Donations From Private Sources 250,416 97,699 105,914
1930 Rental or Lease Payments From Private Contractors
1940 Services Provided Other Local Education Agencies 19,324 833
1950 Textbook Sales and Rentals
1960 Recovery of Prior Years' Expenditure 862 1,956 133
1970 Services Provided Other Funds 4,327,171
1980 Fees Charged to Grants 95,984
1990 Miscellaneous 147,215 5,187 43,259
Total Revenue from Local Sources 14,785,524 392,714 5,288,141 192,304 -$ 4,377,811 106,092
Revenue from Intermediate Sources Fund 100 Fund 200 Fund 300 Fund 400 Fund 500 Fund 600 Fund 700
2101 County School Funds
2102 General ESD Revenue
2103 Excess ESD Local Revenue
2105 Natural Gas, Oil, and Mineral Receipts
2110 Intermediate "I" Tax
2199 Other Intemediate Sources 229,848
2200 Restricted Revenue
2800 Revenue in Lieu of Taxes
2900 Revenue for/on Behalf of the District
Total Revenue from Intermediate Sources 229,848 - - - - - -
Revenue from State Sources Fund 100 Fund 200 Fund 300 Fund 400 Fund 500 Fund 600 Fund 700
3101 State School Fund - General Support 7,812,050
3102 State School Fund - School Lunch Match
3103 Common School Fund 248,104
3104 State Managed County Timber
3106 State School Fund - Accrual
3199 Other Unrestricted Grants-in-Aid 39,485
3204 Driver Education
3222 State School Fund (SSF) Transportation Equipment 27,751
3299 Other Restricted Grants-in-Aid 780,640
3800 Revenue in Lieu of Taxes
3900 Revenue for/on Behalf of the District
Total Revenue from State Sources 8,099,639 808,391 - - - - -
Revenue from Federal Sources Fund 100 Fund 200 Fund 300 Fund 400 Fund 500 Fund 600 Fund 700
4100Unrestricted Revenue Direct From the Federal
Government
4200Unrestricted Revenue From the Federal Government
Through the State
4300 Restricted Revenue From the Federal Government
4500Restricted Revenue From the Federal Government
Through the State 1,996,448
4700Grants-In-Aid From the Federal Government Through
Other Intermediate Agencies 1,944 4,097
4801 Federal Forest Fees 47,205
4802 Impact Aid to School Districts for Operation (PL 874)
4803 Coos Bay Wagon Road Funds
4899 Other Revenue in Lieu of Taxes
4900 Revenue for/on Behalf of the District 33,158
Total Revenue from Federal Sources 49,149 2,033,703 - - - - -
Revenue from Other Sources Fund 100 Fund 200 Fund 300 Fund 400 Fund 500 Fund 600 Fund 700
5100 Long Term Debt Financing Sources
5200 Interfund Transfers 204,165 125,000
5300 Sale of or Compensation for Loss of Fixed Assets 10,924
5400 Resources - Beginning Fund Balance 2,754,048 255,556 277,032 1,016,161 1,615,907 39,697
Total Revenue from Other Sources 2,969,137 380,556 277,032 1,016,161 - 1,615,907 39,697
Grand Totals $26,133,297 $3,615,364 $5,565,173 $1,208,465 -$ $5,993,718 $145,789
38
2012 - 13 DISTRICT AUDIT REVENUE SUMMARY
JACKSON COUNTY SCHOOL DISTRICT NO. 5
Fund: 100 General Fund
Instruction Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
1111 Elementary, K-5 or K-6 $3,750,838 $2,317,150 $1,230,964 $100,894 $101,711 $119
1113 Elementary Extracurricular -
1121 Middle/Junior High Programs 2,574,691 1,539,571 840,816 60,955 132,823 526
1122 Middle/Junior High School Extracurricular 97,657 55,251 15,840 22,582 3,924 60
1131 High School Programs 3,657,352 2,230,141 1,189,527 165,831 69,833 460 1,560
1132 High School Extracurricular 837,072 416,298 119,760 175,632 88,998 17,307 19,077
1140 Pre-Kindergarten Programs -
1210 Programs for the Talented and Gifted -
1220 Restrictive Programs for Students with Disabilities 12,330 5,484 3,946 2,900
1250 Less Restrictive Programs for Students with Disabilities 1,585,454 957,728 600,735 18,845 8,146
1260 Treatment and Habilitation 19,507 100 34 19,373
1271 Remediation 2,465 1,848 617
1272 Title I -
1280 Alternative Education 1,012,566 628,795 313,506 31,936 38,329
1291 English Second Language Programs 180,830 113,448 61,706 5,633 43
1292 Teen Parent Program -
1293 Migrant Education -
1294 Youth Corrections Education -
1299 Other Programs -
1300 Adult/Continuing Education Programs -
1400 Summer School Programs -
Total Instruction Expenditures 13,730,762 8,265,814 4,377,451 604,581 443,807 - 18,472 20,637
Support Services ExpendituresExpenditure Description Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
2110 Attendance and Social Work Services 121,718 66,511 46,686 5,567 2,954
2120 Guidance Services 616,160 370,441 222,848 18,271 4,600
2130 Health Services 56,131 55,059 1,072
2140 Psychological Services 7,394 1,400 5,994
2150 Speech Pathology and Audiology Services 1,535 1,082 453
2160 Other Student Treatment Services -
2190 Service Direction, Student Support Services 260,383 167,739 86,422 3,421 2,801
2210 Improvement of Instruction Services 113,673 52,702 22,577 38,394
2220 Educational Media Services 419,791 230,295 155,645 2,360 31,491
2230 Assessment & Testing 19,089 2,661 770 15,658
2240 Instructional Staff Development 64,306 6,499 1,880 54,450 1,477
2310 Board of Education Services 115,024 206 69 70,855 5,706 38,188
2320 Executive Administration Services 293,905 180,427 89,219 11,897 3,492 8,870
2410 Office of the Principal Services 1,966,285 1,188,016 638,595 54,663 84,387 624
2490 Other Support Services - School Administration -
2510 Direction of Business Support Services -
2520 Fiscal Services 576,847 337,810 187,951 17,694 23,518 9,874
2540 Operation and Maintenance of Plant Services 2,995,516 1,059,985 639,710 1,010,579 275,471 6,803 2,968
2550 Student Transportation Services 876,399 396,255 272,075 80,772 125,684 1,613
2570 Internal Services -
2610 Direction of Central Support Services -
2620 Planning, Research, Development, Evaluation Services, Grant Writing and Statistical Services-
2630 Information Services -
2640 Staff Services 309,073 173,217 90,511 38,758 6,487 100
2660 Technology Services 757,788 329,139 197,873 54,587 175,889 300
2670 Records Management Services -
2690 Other Support Services - Central -
2700 Supplemental Retirement Program 648,978 122,271 526,707
Total Support Services Expenditures 10,219,995 4,684,174 3,179,538 1,535,467 751,476 6,803 62,537 -
Enterprise and Community Services Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
3100 Food Services -
3200 Other Enterprise Services -
3300 Community Services 807 99 75 633
3500 Custody and Care of Children Services -
Total Enterprise and Community Services Expenditures 807 - - 99 - - 75 633
Facilities Acquisition and Construction Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
4110 Service Area Direction -
4120 Site Acquisition and Development Services -
4150 Building Acquisition, Construction, and Improvement Services -
4180 Other Capital Items -
4190 Other Facilities Construction Services -
Total Facilities Acquisition and Construction
Expenditures - - - - - - - -
Other Uses Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
5100 Debt Service -
5200 Transfers of Funds 125,000 125,000
5300 Apportionment of Funds by ESD -
5400 PERS UAL Bond Lump Sum -
Total Other Uses Expenditures 125,000 - - - - - - 125,000
Grand Total $24,076,564 $12,949,988 $7,556,989 $2,140,147 $1,195,283 $6,803 $81,084 $146,270
39
JACKSON COUNTY SCHOOL DISTRICT NO. 5
Fund: 200 Special Revenue Funds
Instruction Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
1111 Elementary, K-5 or K-6 $49,589 $6,568 $1,100 $14,511 $22,934 $4,476
1113 Elementary Extracurricular 216 166 50
1121 Middle/Junior High Programs 38,759 9,986 1,420 5,865 18,877 2,573 38
1122 Middle/Junior High School Extracurricular 5,537 697 64 467 4,309
1131 High School Programs 54,518 2,814 239 17,280 34,185
1132 High School Extracurricular 186,084 9,311 3,205 140,585 24,359 2,027 6,597
1140 Pre-Kindergarten Programs -
1210 Programs for the Talented and Gifted -
1220 Restrictive Programs for Students with Disabilities 168,223 153,334 14,889
1250 Less Restrictive Programs for Students with Disabilities 72,512 44,923 23,068 500 4,021
1260 Treatment and Habilitation -
1271 Remediation -
1272 Title I 739,197 487,054 202,609 392 49,103 39
1280 Alternative Education 401,410 9,240 1,250 350,351 7,276 33,293
1291 English Second Language Programs -
1292 Teen Parent Program -
1293 Migrant Education -
1294 Youth Corrections Education -
1299 Other Programs -
1300 Adult/Continuing Education Programs -
1400 Summer School Programs -
Total Instruction Expenditures 1,716,045 570,593 232,955 683,285 165,230 - 57,347 6,635
Support Services Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
2110 Attendance and Social Work Services 6,025 6,025
2120 Guidance Services 39,715 23,318 16,291 106
2130 Health Services 5,127 5,127
2140 Psychological Services 129,356 93,562 35,794
2150 Speech Pathology and Audiology Services 182,868 126,560 56,308
2160 Other Student Treatment Services -
2190 Service Direction, Student Support Services 56,458 38,571 17,887
2210 Improvement of Instruction Services 392,235 216,372 99,116 54,746 11,011 10,990
2220 Educational Media Services 308 25 283
2230 Assessment & Testing 2,029 2,029
2240 Instructional Staff Development 41,807 9,716 3,009 28,293 789
2310 Board of Education Services -
2320 Executive Administration Services -
2410 Office of the Principal Services 1,100 1,090 10
2490 Other Support Services - School Administration -
2510 Direction of Business Support Services -
2520 Fiscal Services 47,802 47,802
2540 Operation and Maintenance of Plant Services 22,392 5,283 17,109
2550 Student Transportation Services 4,453 4,453
2570 Internal Services -
2610 Direction of Central Support Services -
2620 Planning, Research, Development, Evaluation Services, Grant Writing and Statistical Services-
2630 Information Services 293 293
2640 Staff Services 3,350 970 325 1,489 566
2660 Technology Services 16,337 3,840 7,377 5,120
2670 Records Management Services -
2690 Other Support Services - Central -
2700 Supplemental Retirement Program -
Total Support Services Expenditures 951,655 509,069 228,730 95,168 37,657 22,229 58,802 -
Enterprise and Community Services Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
3100 Food Services 746,468 256,516 213,397 3,209 249,300 20,206 3,840
3200 Other Enterprise Services -
3300 Community Services 13,452 1,197 206 5,069 1,757 70 5,153
3500 Custody and Care of Children Services -
Total Enterprise and Community Services Expenditures 759,920 257,713 213,603 8,278 251,057 20,206 3,910 5,153
Facilities Acquisition and Construction Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
4110 Service Area Direction -
4120 Site Acquisition and Development Services -
4150 Building Acquisition, Construction, and Improvement Services -
4180 Other Capital Items -
4190 Other Facilities Construction Services -
Total Facilities Acquisition and Construction Expenditures- - - - - - - -
Other Uses Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
5100 Debt Service -
5200 Transfers of Funds 4,165 4,165
5300 Apportionment of Funds by ESD -
5400 PERS UAL Bond Lump Sum -
Total Other Uses Expenditures 4,165 - - - - - - 4,165
Grand Total $3,431,785 $1,337,375 $675,288 $786,731 $453,944 $42,435 $120,059 $15,953
40
2012 - 13 DISTRICT AUDIT EXPENDITURE SUMMARY
JACKSON COUNTY SCHOOL DISTRICT NO. 5
Fund: 300 Debt Service Funds
Instruction Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
1111 Elementary, K-5 or K-6 -
1113 Elementary Extracurricular -
1121 Middle/Junior High Programs -
1122 Middle/Junior High School Extracurricular -
1131 High School Programs -
1132 High School Extracurricular -
1140 Pre-Kindergarten Programs -
1210 Programs for the Talented and Gifted -
1220 Restrictive Programs for Students with Disabilities -
1250 Less Restrictive Programs for Students with Disabilities -
1260 Treatment and Habilitation -
1271 Remediation -
1272 Title I -
1280 Alternative Education -
1291 English Second Language Programs -
1292 Teen Parent Program -
1293 Migrant Education -
1294 Youth Corrections Education -
1299 Other Programs -
1300 Adult/Continuing Education Programs -
1400 Summer School Programs -
Total Instruction Expenditures - - - - - - - -
Support Services Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
2110 Attendance and Social Work Services -
2120 Guidance Services -
2130 Health Services -
2140 Psychological Services -
2150 Speech Pathology and Audiology Services -
2160 Other Student Treatment Services -
2190 Service Direction, Student Support Services -
2210 Improvement of Instruction Services -
2220 Educational Media Services -
2230 Assessment & Testing -
2240 Instructional Staff Development -
2310 Board of Education Services -
2320 Executive Administration Services -
2410 Office of the Principal Services -
2490 Other Support Services - School Administration -
2510 Direction of Business Support Services -
2520 Fiscal Services -
2540 Operation and Maintenance of Plant Services -
2550 Student Transportation Services -
2570 Internal Services -
2610 Direction of Central Support Services -
2620 Planning, Research, Development, Evaluation Services, Grant Writing and Statistical Services-
2630 Information Services -
2640 Staff Services -
2660 Technology Services -
2670 Records Management Services -
2690 Other Support Services - Central -
2700 Supplemental Retirement Program -
Total Support Services Expenditures - - - - - - - -
Enterprise and Community Services ExpendituresExpenditure Description Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
3100 Food Services -
3200 Other Enterprise Services -
3300 Community Services -
3500 Custody and Care of Children Services -
Total Enterprise and Community Services Expenditures - - - - - - - -
Facilities Acquisition and Construction Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
4110 Service Area Direction -
4120 Site Acquisition and Development Services -
4150 Building Acquisition, Construction, and Improvement Services -
4180 Other Capital Items -
4190 Other Facilities Construction Services -
Total Facilities Acquisition and Construction Expenditures- - - - - - - -
Other Uses Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
5100 Debt Service 5,245,563 5,245,563
5200 Transfers of Funds -
5300 Apportionment of Funds by ESD -
5400 PERS UAL Bond Lump Sum -
Total Other Uses Expenditures 5,245,563 - - - - - 5,245,563 -
Grand Total 5,245,563$ -$ -$ -$ -$ -$ 5,245,563$ -$
41
2012 - 13 DISTRICT AUDIT EXPENDITURE SUMMARY
JACKSON COUNTY SCHOOL DISTRICT NO. 5
Fund: 400 Capital Projects Funds
Instruction Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
1111 Elementary, K-5 or K-6 -
1113 Elementary Extracurricular -
1121 Middle/Junior High Programs -
1122 Middle/Junior High School Extracurricular -
1131 High School Programs -
1132 High School Extracurricular -
1140 Pre-Kindergarten Programs -
1210 Programs for the Talented and Gifted -
1220 Restrictive Programs for Students with Disabilities -
1250 Less Restrictive Programs for Students with Disabilities -
1260 Treatment and Habilitation -
1271 Remediation -
1272 Title I -
1280 Alternative Education -
1291 English Second Language Programs -
1292 Teen Parent Program -
1293 Migrant Education -
1294 Youth Corrections Education -
1299 Other Programs -
1300 Adult/Continuing Education Programs -
1400 Summer School Programs -
Total Instruction Expenditures - - - - - - - -
Support Services Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
2110 Attendance and Social Work Services -
2120 Guidance Services -
2130 Health Services -
2140 Psychological Services -
2150 Speech Pathology and Audiology Services -
2160 Other Student Treatment Services -
2190 Service Direction, Student Support Services -
2210 Improvement of Instruction Services -
2220 Educational Media Services -
2230 Assessment & Testing -
2240 Instructional Staff Development -
2310 Board of Education Services -
2320 Executive Administration Services -
2410 Office of the Principal Services -
2490 Other Support Services - School Administration -
2510 Direction of Business Support Services -
2520 Fiscal Services -
2540 Operation and Maintenance of Plant Services 43,971 25,475 18,196 300
2550 Student Transportation Services -
2570 Internal Services -
2610 Direction of Central Support Services -
2620 Planning, Research, Development, Evaluation Services, Grant Writing and Statistical Services-
2630 Information Services -
2640 Staff Services -
2660 Technology Services 38,166 31,845 6,321
2670 Records Management Services -
2690 Other Support Services - Central -
2700 Supplemental Retirement Program -
Total Support Services Expenditures 82,137 25,475 18,196 32,145 6,321 - - -
Enterprise and Community Services ExpendituresExpenditure Description Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
3100 Food Services -
3200 Other Enterprise Services -
3300 Community Services -
3500 Custody and Care of Children Services -
Total Enterprise and Community Services Expenditures - - - - - - - -
Facilities Acquisition and Construction Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
4110 Service Area Direction -
4120 Site Acquisition and Development Services 179,012 10,031 168,981
4150 Building Acquisition, Construction, and Improvement Services 76,640 45,173 20,162 9,565 1,740
4180 Other Capital Items -
4190 Other Facilities Construction Services -
Total Facilities Acquisition and Construction Expenditures255,652 - - 55,204 20,162 178,546 1,740 -
Other Uses Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
5100 Debt Service -
5200 Transfers of Funds -
5300 Apportionment of Funds by ESD -
5400 PERS UAL Bond Lump Sum -
Total Other Uses Expenditures - - - - - - - -
Grand Total $337,789 $25,475 $18,196 $87,349 $26,483 $178,546 $1,740 -$
42
2012 - 13 DISTRICT AUDIT EXPENDITURE SUMMARY
JACKSON COUNTY SCHOOL DISTRICT NO. 5
Fund: 600 Internal Service Funds
Instruction Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
1111 Elementary, K-5 or K-6 -
1113 Elementary Extracurricular -
1121 Middle/Junior High Programs -
1122 Middle/Junior High School Extracurricular -
1131 High School Programs -
1132 High School Extracurricular -
1140 Pre-Kindergarten Programs -
1210 Programs for the Talented and Gifted -
1220 Restrictive Programs for Students with Disabilities -
1250 Less Restrictive Programs for Students with Disabilities -
1260 Treatment and Habilitation -
1271 Remediation -
1272 Title I -
1280 Alternative Education -
1291 English Second Language Programs -
1292 Teen Parent Program -
1293 Migrant Education -
1294 Youth Corrections Education -
1299 Other Programs -
1300 Adult/Continuing Education Programs -
1400 Summer School Programs -
Total Instruction Expenditures - - - - - - - -
Support Services Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
2110 Attendance and Social Work Services -
2120 Guidance Services -
2130 Health Services -
2140 Psychological Services -
2150 Speech Pathology and Audiology Services -
2160 Other Student Treatment Services -
2190 Service Direction, Student Support Services -
2210 Improvement of Instruction Services -
2220 Educational Media Services -
2230 Assessment & Testing -
2240 Instructional Staff Development -
2310 Board of Education Services -
2320 Executive Administration Services -
2410 Office of the Principal Services -
2490 Other Support Services - School Administration -
2510 Direction of Business Support Services -
2520 Fiscal Services -
2540 Operation and Maintenance of Plant Services -
2550 Student Transportation Services -
2570 Internal Services -
2610 Direction of Central Support Services -
2620 Planning, Research, Development, Evaluation Services, Grant Writing and Statistical Services-
2630 Information Services -
2640 Staff Services 7,661 1,880 629 5,152
2660 Technology Services -
2670 Records Management Services -
2690 Other Support Services - Central 4,264,236 10,945 4,199,493 53,798
2700 Supplemental Retirement Program -
Total Support Services Expenditures 4,271,897 1,880 11,574 4,204,645 - - 53,798 -
Enterprise and Community Services ExpendituresExpenditure Description Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
3100 Food Services -
3200 Other Enterprise Services -
3300 Community Services -
3500 Custody and Care of Children Services -
Total Enterprise and Community Services Expenditures - - - - - - - -
Facilities Acquisition and Construction Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
4110 Service Area Direction -
4120 Site Acquisition and Development Services -
4150 Building Acquisition, Construction, and Improvement Services -
4180 Other Capital Items -
4190 Other Facilities Construction Services -
Total Facilities Acquisition and Construction Expenditures- - - - - - - -
Other Uses Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
5100 Debt Service -
5200 Transfers of Funds 200,000 200,000
5300 Apportionment of Funds by ESD -
5400 PERS UAL Bond Lump Sum -
Total Other Uses Expenditures 200,000 - - - - - - 200,000
Grand Total 4,471,897$ 1,880$ 11,574$ 4,204,645$ -$ -$ 53,798$ 200,000$
43
2012 - 13 DISTRICT AUDIT EXPENDITURE SUMMARY
JACKSON COUNTY SCHOOL DISTRICT NO. 5
Fund: 700 Trust and Agency Funds
Instruction Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
1111 Elementary, K-5 or K-6 -
1113 Elementary Extracurricular -
1121 Middle/Junior High Programs -
1122 Middle/Junior High School Extracurricular -
1131 High School Programs -
1132 High School Extracurricular -
1140 Pre-Kindergarten Programs -
1210 Programs for the Talented and Gifted -
1220 Restrictive Programs for Students with Disabilities -
1250 Less Restrictive Programs for Students with Disabilities -
1260 Treatment and Habilitation -
1271 Remediation -
1272 Title I -
1280 Alternative Education -
1291 English Second Language Programs -
1292 Teen Parent Program -
1293 Migrant Education -
1294 Youth Corrections Education -
1299 Other Programs -
1300 Adult/Continuing Education Programs -
1400 Summer School Programs -
Total Instruction Expenditures - - - - - - - -
Support Services Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
2110 Attendance and Social Work Services -
2120 Guidance Services -
2130 Health Services -
2140 Psychological Services -
2150 Speech Pathology and Audiology Services -
2160 Other Student Treatment Services -
2190 Service Direction, Student Support Services -
2210 Improvement of Instruction Services -
2220 Educational Media Services -
2230 Assessment & Testing -
2240 Instructional Staff Development -
2310 Board of Education Services -
2320 Executive Administration Services -
2410 Office of the Principal Services -
2490 Other Support Services - School Administration -
2510 Direction of Business Support Services -
2520 Fiscal Services -
2540 Operation and Maintenance of Plant Services -
2550 Student Transportation Services -
2570 Internal Services -
2610 Direction of Central Support Services -
2620 Planning, Research, Development, Evaluation Services, Grant Writing and Statistical Services-
2630 Information Services -
2640 Staff Services -
2660 Technology Services -
2670 Records Management Services -
2690 Other Support Services - Central -
2700 Supplemental Retirement Program -
Total Support Services Expenditures - - - - - - - -
Enterprise and Community Services ExpendituresExpenditure Description Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
3100 Food Services -
3200 Other Enterprise Services -
3300 Community Services 113,245 110,585 2,660
3500 Custody and Care of Children Services -
Total Enterprise and Community Services Expenditures 113,245 - - 110,585 - - - 2,660
Facilities Acquisition and Construction Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
4110 Service Area Direction -
4120 Site Acquisition and Development Services -
4150 Building Acquisition, Construction, and Improvement Services -
4180 Other Capital Items -
4190 Other Facilities Construction Services -
Total Facilities Acquisition and Construction Expenditures- - - - - - - -
Other Uses Expenditures Totals Object 100 Object 200 Object 300 Object 400 Object 500 Object 600 Object 700
5100 Debt Service -
5200 Transfers of Funds -
5300 Apportionment of Funds by ESD -
5400 PERS UAL Bond Lump Sum -
Total Other Uses Expenditures - - - - - - - -
Grand Total 113,245$ -$ -$ 110,585$ -$ -$ -$ 2,660$
44
2012 - 13 DISTRICT AUDIT EXPENDITURE SUMMARY
JACKSON COUNTY SCHOOL DISTRICT NO. 5
OREGON DEPARTMENT OF EDUCATION Office of Finance and Administration 225 Capitol Street NE School Finance Unit Salem Oregon 97310
45
JACKON COUNTY SCHOOL DISTRICT NO. 5
SUPPLEMENTAL INFORMATION, 2012-2013
School District Business Managers and Auditors: This page is a required part of your annual audited financial statements. Please make sure it is included. Part A is needed for computing Oregon’s full allocation for ESEA, Title I & other Federal Funds for Education. A. Energy Bill for Heating - All Funds: Please enter your expenditures for electricity & heating fuel for these Functions & Objects. B. Replacement of Equipment – General Fund: Include all General Fund expenditures in object 542, except for the following exclusions: Exclude these functions: Exclude these functions: 1113, 1122 & 1132 Co-curricular Activities 4150 Construction 1140 Pre-Kindergarten 2550 Pupil Transportation 1300 Continuing Education 3100 Food Service 1400 Summer School 3300 Community Services
Objects 325 & 326
Function 2540 $ 524,331
Function 2550 $ 3,964
$ -0-
46
INDEPENDENT AUDITOR’S REPORT REQUIRED BY OREGON STATE REGULATIONS
We have audited the basic financial statements of the Jackson County School District No. 5 as of and for the year ended June 30, 2013, and have issued our report thereon dated December 3, 2013. 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 of the United States. Compliance As part of obtaining reasonable assurance about whether Jackson County School District No. 5’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-10-000 through 162-10-320 of the Minimum Standards for Audits of Oregon Municipal Corporations, 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 the objective of our audit, and accordingly, we do not express such an opinion. We performed procedures to the extent we considered necessary to address the required comments and disclosures but were not limited to the following:
• Deposit of public funds with financial institutions under ORS Chapter 295.
• Indebtedness limitations, restrictions and repayment.
• Budgets legally required under ORS Chapter 294.
• Insurance and fidelity under bonds in force or required by law.
• Programs funded from outside sources.
• Authorized investment of surplus funds (ORS Chapter 294).
• Public contracts and purchasing under ORS Chapters 279A, 279B, 279C.
• State School Distribution Factors
In connection with our audit, nothing came to our attention that caused us to believe Jackson County School District No. 5 was not in substantial compliance with certain provisions of laws, regulations, contracts, and grants, including the provisions of Oregon Revised Statutes as specified in Oregon Administration Rules 162-10-000 through 162-10-320 of the Minimum Standards for Audits of Oregon Municipal Corporations, except as noted below.
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47
OAR 162-10-0230 Internal Control In planning and performing our audit, we considered Jackson County School District No. 5’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Jackson County School District No. 5’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of Jackson County School District No. 5’s internal control over financial reporting or over compliance. No material weakness relating to the audit of the basic financial statements are reported in the report on compliance and on internal control over financial reporting based on an audit of financial statements performed in accordance with Government Auditing Standards. However, we did note significant deficiencies as noted in the Government Audit Standards report. This report is intended solely for the information and use of the Board of Directors and management of Jackson County School District No. 5 and the State of Oregon, Division of Audits and is not intended to be and should not be used by anyone other than these specified parties. Stewart C. Parmele CPA, Partner Michael L. Piels CPAs, LLP Medford, Oregon December 3, 2013
Items required by the Single Audit Act
Amendments of 1996 for Federal award programs
48
INDEPENDENT AUDITOR’S 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
To the Board of Directors Jackson County School District No. 5 Ashland, Oregon
We have audited, in accordance with the 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, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Jackson County School District No. 5, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise December 3, 2013.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Jackson County School District No. 5’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 Jackson County School District No. 5’s financial statements, but not for the purpose of expressing an opinion on the effectiveness of internal control. Accordingly, we do not express an opinion on the effectiveness of Jackson County School District No. 5’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 entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material 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 considered to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs that we consider to be significant deficiencies. See Schedule of Findings and Questioned Costs at 2013-1.
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49
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Jackson County School District No. 5’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of findings and questioned costs as items 2013-1.
Jackson County School District No. 5’s Response to Findings
Jackson County School District No. 5’s response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs. Jackson County School District No. 5’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Stewart C. Parmele CPA, Partner Michael L. Piels CPAS, LLP Medford, Oregon December 3, 2013
50
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
To the Board of Directors Jackson County School District No. 5 Ashland, Oregon
Report on Compliance for Each Major Federal Program
We have audited Jackson County School District No. 5’s compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have direct and material effect on each of Jackson County School District No. 5’s major federal programs for the year ended June 30, 2013. Jackson County School District No. 5’s major federal 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 federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of Jackson County School District No. 5’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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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 Jackson County School District No. 5’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 of Jackson County School District No. 5’s compliance.
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51
Basis for Qualified Opinion on IDEA
As described in the accompanying schedule of findings and questioned costs, Jackson County School District No. 5 did not comply with requirements regarding IDEA program CFDA 84.027, Finding number 2013-2 for Allowable Costs/Cost Principles. Compliance with such requirements is necessary, in our opinion, for Jackson County School District No. 5 to comply with the requirements applicable to that program.
Qualified Opinion on IDEA
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, Jackson County School District No. 5, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on the IDEA program for the year ended June 30, 2013.
Unmodified Opinion on Each of the Other Major federal Programs
In our opinion, Jackson County School District No. 5 complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its other major federal programs identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs for the year ended June 30, 2013.
Other Matters
Jackson County School District No. 5’s response to the noncompliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. Jackson County School District No. 5’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
Report on Internal Control Over Compliance
Management of Jackson County School District No. 5 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 Jackson County School District No. 5’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, 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 Jackson County School District No. 5’s internal control over compliance.
Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies.
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 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. We do not consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2013-2 to be a material weakness.
A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal 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. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2013-2 to be a significant deficiency.
52
Jackson County School District No. 5’s response to the internal control over compliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. Jackson County School District No. 5’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
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 OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Stewart C. Parmele CPA, Partner Michael L. Piels CPAs, LLP Medford, Oregon December 3, 2013
JACKSON COUNTY SCHOOL DISTRICT NO. 5
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FISCAL YEAR ENDED JUNE 30, 2013
Federal Pass-Through
Federal Grantor/Pass-Through CFDA Grantor's Grant
Grantor/Program Title Number Number Award
U.S. Department of Education:
Passed Through Oregon Department of Education:
Title I 2012-13 84.010 25196 897,535 $ - $ 553,841 $ (772,582) $ (218,741)
Model School (John Muir) 84.010 26188 2,500 - - (2,500) (2,500)
Distinguished Schools (John Muir) 84.010 27078 12,000 - 9,451 (12,000) (2,549)
Title I 2011-12 84.010 22565 859,837 (252,315) 328,237 (75,922) -
Program total (252,315) 891,529 (863,004) (223,790)
ESEA Title I, Part A 84.013 9125 - 48,454 (48,454) -
Title II-A Improving Teacher Quality 84.367 22746 157,297 (48,053) 74,303 (26,250) -
Title II-A Improving Teacher Quality 84.367 25417 161,442 - 103,586 (156,055) (52,469)
Program total (48,053) 177,889 (182,305) (52,469)
Extended Assessment 2012-13 84.027 24932 900 (354) (354)
Extended Assessment 2011-12 84.027 24001 900 (644) 644 - -
IDEA Enhancement 2012-13 84.027 26611 2,652 - - (2,652) (2,652)
IDEA Part B Special Education Grants 84.027 26632 436,475 - 310,228 (436,673) (126,445)
IDEA Part B Special Education Grants 84.027 23529 436,475 (130,674) 130,674 -
SPR&I 2012-13 84.027 25679 2,665 - - (2,665) (2,665)
SOCSTC & LLS 84.027 9125 - - 32,165 (32,165) -
Program total (131,318) 473,711 (474,509) (132,116)
IDEA Part B, Section 619 2010-11 84.173 21916 2,234 (303) 1,857 (1,554) -
IDEA Part B, Section 619 2011-12 84.173 24142 5,472 - - (2,374) (2,374)
Program total (303) 1,857 (3,928) (2,374)
Passed through Southern Oregon Education Service District:
Title III-C 84.365 2012-13 4,470 - - (4,470) (4,470)
Title III-C 84.365 2012-13 669 - - (669) (669)
Title III-C 84.365 2011-12 7,068 (4,097) 4,097 - -
Program total (4,097) 4,097 (5,139) (5,139)
Carl Perkins 84.048 2012-13 1,944 - 1,944 (1,944) -
Total Department of Education $ (436,086) $ 1,599,481 $ (1,579,283) $ (415,888)
U.S. Department of Agriculture:
Passed Through Oregon Department of Education:
Food Distribution Program 10.550 2012-13 33,158 $ - $ 33,157 $ (33,157) $ -
Food Service-Summer Lunch Program 10.559 2012-13 3,107 - 3,107 (3,107) -
School Breakfast Program 10.553 2012-13 66,272 - 66,189 (66,189) -
National School Lunch 10.555 2012-13 333,713 - 333,713 (333,713) -
Program total - 436,166 (436,166) -
Passed through Southern Oregon Education Service District:
Federal Forest Fees 10.666 2012-13 47,205 - 47,205 (47,205) -
Total Department of Agriculture - 483,371 (483,371) -
Total Federal Financial Assistance $ (436,086) $ 2,082,852 $ (2,062,654) $ (415,888)
Note A - Significant accounting policies
The accompanying schedule of expenditures of federal award is a summary of the activity of the District’s
federal award programs presented on the cash basis of accounting, which is a comprehensive basis of accounting other than generally
accepted accounting principles, and the requirements of OMB Circular A-133, Audits of States, Local Governments
and Non-Profit Organizations .
Note B - Food distribution
Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received
and disbursed.
Balance Balance
6/30/2012 Receipts Disbursements 6/30/2013
53
54
JACKSON COUNTY SCHOOL DISTRICT NO. 5 SCHEDULE OF FINDINGS AND QUESTIONED COSTS FISCAL YEAR ENDED JUNE 30, 2013 A. SUMMARY OF AUDIT RESULTS Financial Statements
1. The auditor’s report expresses an unqualified opinion on the modified cash basis of accounting on the basic financial statements of Jackson County School District No. 5.
2. No material weakness relating to the audit of the basic financial statements are reported in the
report on compliance and on internal control over financial reporting based on an audit of financial statements performed in accordance with Government Auditing Standards. However, significant deficiencies were noted. See Finding 2013-1.
3. No instances of noncompliance material to the basic financial statements of Jackson County
School District No. 5 were disclosed during the audit. Federal Awards
4. No material weaknesses relating to the audit of the major federal award programs are reported in the report on compliance with requirements applicable to each major program and internal control over compliance in accordance with OMB Circular A-133. However, significant deficiencies were noted.
5. The auditor’s report on compliance for the major federal award programs for Jackson County
School District No. 5 expresses a qualified opinion on the modified cash basis of accounting.
6. There were audit findings that are required to be reported in accordance with Section 510(a) of OMB Circular A-133 reported in this schedule.
7. The programs tested as major programs include:
U.S. Department of Education – IDEA CFDA # 84.027 Cluster Program
U.S. Department of Agriculture National School Breakfast Program CFDA # 10.553 National School Lunch Program CFDA # 10.555 National School Lunch Program – Summer CFDA # 10.559
8. The threshold for distinguishing Types A and B Programs was $300,000.
9. Jackson County School District No. 5 did qualify as a low-risk auditee under the criteria specified
in OMB Circular A-133. B. FINDINGS – FINANCIAL STATEMENTS AUDIT Findings 2013-1 Student Body Funds
Criteria – The District has a stated policy whereby all expenditures (except payroll) must be approved by an administrator prior to purchase.
55
Condition - In the testing process for student body funds, we tested 28 expenditures made through the student body funds. Of the 28 items, 8 items were purchased prior to the requisition or purchase order process, or 29% of the population. Effect – Purchases were made without proper authorization which is in direct violation of District policy which could result in improper expenditures. Cause – The cause of the lack of documentation is simply that management/employees are not consistently following District policy. Management response – Management response – During the last two fiscal years, the District has been converting the Student Body Funds from separate individual school checking accounts to incorporating all the funds into the district-wide checking account. We also have established a central revenue system and integrated the purchasing through the district-wide purchasing system. While the policy of pre-approval is a long standing one, it has been largely unenforceable under the old decentralized system. As breeches of this policy come to our attention, we address it with the employee and school administration. Any improper expenditure can still be addressed later in the approval process; however we still strive for compliance to this very important district policy. District-wide Criteria – Per the District’s stated policy, when merchandise comes in, the invoice is to be approved by the purchaser, initialed and dated and approved for payment.
Condition – We pulled a sample of 20 items for Food Service related expenditures. Of the 20 items pulled, 8 of those items did not have documentation the items were received nor was there any approval for payment.
Effect – Purchases were made without proper authorization which is in direct violation of District policy which could result in improper expenditures. Cause – The cause of the lack of documentation is simply that management/employees are not consistently following District policy.
Management response – The A/P specialist and the Food Service director work approximately seven feet from each other and been verbally confirming receipt and approval. That practice has been stopped and now paperwork will be properly initialed.
C. FINDINGS – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Findings 2013-2 IDEA CFDA # 84.027
Criteria – In accordance with the Cross Cutting Compliance supplement, Federal regulations specify how employee salaries and wages charged to the IDEA grants are to be documented. For employees who work on multiple activities of cost objectives, payroll costs charged directly to federal awards are to be supported by monthly personnel activity reports. The time and effort records are to reflect the actual hours employees work on each program and are used as a basis for requesting federal funds. If an employee works solely on one federal activity, only semi-annual certifications signed by the employee or a supervisor are needed to meet federal requirements.
56
Condition – During the audit, we reviewed a random sample of payroll costs charged to the grant during the year. We reviewed salaries and benefits charged to the grant for 2 employees, who were charged in part to the IDEA program. These 2 employees did not complete time and effort reports during the year. Related salary and benefit expenditures totaled $123,810. Cause – Department staff responsible for collecting time and effort reports did not fully understand the federal requirements. Department staff incorrectly believed that only employees who worked in Title I programs were required to meet federal time and effort requirements. Effect – Without adequate time and effort documentation, federal grantors cannot be assured that salaries and benefits charged to programs are accurate and valid. This could jeopardize future federal funding to the District. Questioned Costs – We are questioning costs of $123,810, the amount charged to the grant that was not supported by time and effort reports for these two employees in accordance with federal requirements. Recommendations – We recommend the District revise its procedures and require all employees who work in federal programs to complete a semi-annual certification or complete time and effort reports to meet federal requirements. Additionally, we recommend the District consult with the Oregon Department of Education to determine what, if any, costs affected by this compliance issue should be repaid. Management’s response - We are revising our procedures and will be requiring all employees who work in federal programs to complete a semi-annual certification or complete time and effort reports to meet federal requirements. We are consulting with the Oregon Department of Education to determine what, if any, costs affected by this compliance issue should be repaid.