1. Pequea Valley School District
2015 Audit
December 10, 2015

2. Introduction
Independent Auditors’ Report for the year ended June 30, 2015
Management’s Discussion and Analysis. Unaudited information prepared by John Bowden, Chief of Finance and Operations.
Government Wide Statements - Full accrual basis statements.

3. GASBS No. 68, Pensions Effects the full-accrual financial statements
Governmental Activities
Business-Type Activities
5 Pages of Footnote Disclosures
3 Pages of Required Supplementary Information

4. Governmental Activities Business-Type Activities
GASBS No. 68, Pensions
Implementation by Prior Period Adjustment of Equity
Governmental Activities
Business-Type Activities
Total
Beginning Net Position,
Original
35,282,161
462,858
35,745,019
Effect of GASBS 68
(34,230,080)
(363,964)
(34,594,044)
Beginning Net Position, Restated
1,052,081
98,894
1,150,975

5. Governmental Activities (98.9%) Business-type Activities (1.1%)
GASBS No. 68, Pensions
PSERS Net Pension Liability (NPL)
39,580,717,000
PVSD’s Proportionate Share (%)
0.0855%
PVSD’s Proportionate Share ($)
33,841,513
Governmental Activities (98.9%)
Business-type Activities (1.1%)
Total
Net Pension Liability*
33,485,467
356,046
33,841,513
Additional Pension Expense (in addition to contributions paid)
405,191
4,308
409,499
* 1) Although first year NPL recorded on PVSD’s financial statements, it is important to note that this liability has always existed.
2) The State is ultimately responsible for funding 50% of the outstanding NPL

6. Governmental Activities Historical Analysis
June 30, 2013
June 30, 2014
June 30, 2015
Current Assets
17,094,220
19,227,725
19,399,886
Noncurrent Assets
47,340,826
45,011,844
43,295,306
Total Assets
64,435,046
64,239,569
62,695,192
Deferred Outflow of Resources
909,255
795,503
2,953,492
Current Liabilities
7,172,935
6,887,565
7,098,192
Noncurrent Liabilities
26,435,512
22,865,346
53,445,278
Total Liabilities
33,608,447
29,752,911
60,543,470
Deferred Inflow of Resources
-0-
3,438,324
Total Net Position
31,735,854
35,282,161
1,666,890

7. Historical and Budget to Actual Analysis

8. General Fund Results For Fiscal Year Ended
2013
2014
Actual
2015 – Final Budget
Local Revenues
22,965,379
24,352,573
24,912,939
23,690,348
State Revenues
6,203,429
6,468,987
6,726,292
6,971,018
Federal Revenues
2,020,424
1,578,530
1,417,358
1,350,005
Total Revenues
31,189,232
32,400,090
33,056,589
32,011,371
% Increase (Decrease)
4.4%
3.7%
2.0%
Instruction - Regular
11,167,960
11,283,381
11,343,270
12,277,173
Instruction – Special
3,184,200
3,284,994
3,549,982
3,660,589
Instruction – Other
775,559
968,374
1,354,105
1,026,748
Instructional Student Support
2,923,287
3,234,043
3,416,753
3,522,843
Admin & Financial Support
2,467,681
2,254,811
2,474,295
2,410,958
Operation & Maintenance
2,628,144
2,594,442
2,838,638
2,626,812
Student Transportation
1,853,985
1,861,058
1,987,188
2,148,505
Student Activities
651,434
609,967
630,477
737,561
Community Services
28,965
34,546
35,363
24,860
Refund of Prior Year Revenues
2,541 86
-0-
Total Expenditures
25,683,756
26,125,702
27,630,071
28,436,049
-0.3%
1.7%
5.8%
Excess of Revenues over Expenditures
5,505,476
6,274,388
5,426,518
3,575,322

9. General Fund Results For Fiscal Year Ended
2013
2014
Actual
2015 – Final Budget
Excess of Revenues over Expenditures
5,505,476
6,274,388
5,426,518
3,575,322
Fund Transfers
4,138,498
3,741,494
5,750,103
4,145,390
Fund Other Uses (Sources)
(18,543)
(31,058)
(27,264)
400,000
Total Other Financing Uses
4,119,955
3,710,436
5,722,839
4,545,390
Change in Fund Balance
1,385,521
2,563,952
(296,321)
(970,068)
Ending Fund Balance
8,958,948
11,522,900
11,226,579

10. Capital Projects Fund Fiscal Year Fund Additions Expenditures
Ending Fund Balance
1,006,216
1,181,799
2,819,707
1,941
236,546
2,995,290
20,198
158,898
3,229,895
9,534
2,751,848
3,368,595

11. GASB No. 54 – Fund Balance Reporting and Governmental Type Definitions
General Fund
Capital Project Fund
Nonspendable Prepaid Expenses
127,858
Committed (Board) for Future Retirement Contributions
5,300,000
-0-
Committed (Board) for Future Health Care Costs
2,900,000
Assigned for Future Health Care Costs
2,819,707
Unassigned (Residual general fund balance)
2,898,721
Total
11,226,579

12. Food Service Fund 2012-13 2013-14 2014-15 Operating Revenues 328,087
284,534
261,900
Non-operating Revenues
430,293
493,120
466,493
Revenues
758,380
777,654
728,393
Salaries and Benefits
373,490
202,112
180,918
Purchased Services
72,520
260,829
263,156
Supplies
327,735
348,032
307,293
Depreciation
43,940
43,385
41,349
Total Expenses
817,685
854,358
792,716
Change in Net Position
(59,305)
(76,704)
(64,323)

13. Internal Service Fund 2012-13 2013-14 2014-15 Charges for Services
2,769,688
3,054,444
2,537,601
Employee Benefits
2,795,200
2,898,737
2,992,102
Non Operating Revenues
16,638
2,874
971
Interfund Transfers
-0-
1,000,000
Change in Net Position
(8,874)
158,581
546,470

14. Other Financial Statement Components
Notes to Financial Statements
Note 1 - Summary of Significant Accounting Policies
Note 10 – Long-Term Debt
Note 14 – Defined Benefit Pension Plan
Note 19 – Change in Accounting Principle
Supplemental Schedules provide additional detail to basic financial statements
Single Audit (compliance audit of the school district’s federal grants) and related reports

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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