1. Pequea Valley School District
2016 Audit
January 3, 2017

2. Introduction
Independent Auditors’ Report for the year ended June 30, 2016
Management’s Discussion and Analysis. Unaudited information prepared by John Bowden, Chief of Finance and Operations.
Government Wide Statements - Full accrual basis statements.

3. Governmental Activities Historical Analysis
June 30, 2014
June 30, 2015
June 30, 2016
Current Assets
19,227,725
19,399,886
20,369,217
Noncurrent Assets
45,011,844
43,295,306
42,382,105
Total Assets
64,239,569
62,695,192
62,751,322
Deferred Outflow of Resources
795,503
2,953,492
3,276,470
Current Liabilities
6,887,565
7,098,192
9,322,192
Noncurrent Liabilities
22,865,346
53,445,278
52,820,831
Total Liabilities
29,752,911
60,543,470
62,143,023
Deferred Inflow of Resources
-0-
3,438,324
1,118,000
Total Net Position
35,282,161
1,666,890
2,766,769

4. Historical and Budget to Actual Analysis

5. General Fund Results 2014 2015 2016 - Actual 2016 – Final Budget
Local Revenues
24,352,573
24,912,939
25,122,585
24,485,645
State Revenues
6,468,987
6,726,292
6,972,240
7,351,804
Federal Revenues
1,578,530
1,417,358
1,329,446
1,274,676
Total Revenues
32,400,090
33,056,589
33,424,271
33,112,125
% Increase (Decrease)
3.7%
2.0%
1.1%
Instructional Services
15,536,749
16,247,357
16,779,069
17,557,352
Instructional Student Support
3,234,043
3,416,753
3,732,352
3,625,721
Admin & Financial Support
2,254,811
2,474,295
2,855,517
2,673,226
Operation & Maintenance
2,594,442
2,838,638
2,657,185
2,697,261
Student Transportation
1,861,058
1,987,188
2,376,574
2,150,382
Student Activities
609,967
630,477
599,550
715,547
Community Services
34,546
35,363
32,447
26,721
Refund of Prior Year Revenues 86
-0-
Debt Service Principal
65,930
Total Expenditures
26,125,702
27,630,071
29,098,624
29,446,210
1.7%
5.8%
5.3%
Excess of Revenues over Expenditures
6,274,388
5,426,518
4,325,647
3,665,915

6. General Fund Results 2014 2015 2016 - Actual 2016 – Final Budget
Excess of Revenues over Expenditures
6,274,388
5,426,518
4,325,647
3,665,915
Fund Transfers
3,741,494
5,750,103
3,957,773
4,147,545
Other Uses (Sources)
(31,058)
(27,264)
(278,140)
400,000
Total Other Financing Uses
3,710,436
5,722,839
3,679,633
4,547,545
Change in Fund Balance
2,563,952
(296,321)
646,014
(881,630)
Ending Fund Balance
11,522,900
11,226,579
11,872,593

7. Capital Projects Fund Fiscal Year Fund Additions Expenditures
Ending Fund Balance
9,519
1,307,794
1,521,432
1,006,216
1,181,799
2,819,707
1,941
236,546
2,995,290

8. GASB No. 54 – Fund Balance Reporting and Governmental Type Definitions
General Fund
Capital Project Fund
Nonspendable Prepaid Expenses
68,015
-0-
Restricted to Guarantee Satisfactory Completion of Capital Projects
96,159
Committed (Board) for Future Retirement Contributions
5,300,000
Committed (Board) for Future Health Care Costs
2,900,000
Assigned for Future Capital Outlays
1,425,273
Unassigned (Residual general fund balance)
3,604,578
Total
11,872,593
1,521,432

9. Food Service Fund 2013-14 2014-15 2015-16 Operating Revenues 284,534
261,900
85,141
Non-operating Revenues
493,120
466,493
609,363
Revenues
777,654
728,393
694,504
Salaries and Benefits
202,112
180,918
177,228
Purchased Services
260,829
263,156
261,293
Supplies
348,032
307,293
403,746
Depreciation
43,385
41,349
38,865
Total Expenses
854,358
792,716
881,132
Change in Net Position
(76,704)
(64,323)
(186,628)

10. Internal Service Fund 2013-14 2014-15 2015-16 Charges for Services
3,054,444
2,537,601
2,796,034
Employee Benefits
2,898,737
2,992,102
3,719,233
Non Operating Revenues
2,874
971
2,560
Interfund Transfers
-0-
1,000,000
Change in Net Position
158,581
546,470
(920,639)

11. Pending Changes in Accounting Principles
GASB Statement No Accounting and Financial Reporting for Postemployment Benefits Other than Pensions (OPEB)
Improve accounting and financial reporting for state and local government
Required recordation of unfunded actuarial accrued liability upon implementation on the GW financial statements and proprietary funds
Requires recordation of the School District’s proportionate share of PSERS liability for premium assistance plan
Changes to assumptions used by the actuaries to calculate the OPEB liability
Effective for the School District’s June 30, 2018 financial statements

12. Pending Changes in Accounting Principles
GASB Statement No. 77 – Tax Abatement Disclosures
Provide users of the financial statements with essential information about the nature and magnitude of the reduction in tax revenues through tax abatement programs
No financial statement impact – footnote disclosure only
Effective for the School District’s June 30, 2017 financial statements

13. Other Financial Statement Components
Notes to Financial Statements
Note 1 - Summary of Significant Accounting Policies
Note 10 – Long-Term Debt
Note 15 – Defined Benefit Pension Plan
Supplemental Schedules provide additional detail to basic financial statements
Single Audit (Compliance Audit of the School District’s Federal Grants) and Related Reports

14. Single Audit Compliance audit of federal awards
2016 is first year under Uniform Guidance
Major programs tested were Special Education Grants and Child Nutrition

15. This presentation is intended solely for the information and use of the management of Pequea Valley School District and the School Board and is not intended to be and should not be used by anyone other than these specified parties.

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