1. Pequea Valley School District
2017 Audit
December 14, 2017

2. Introduction
Independent Auditors’ Report for the year ended June 30, 2017
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, 2015
June 30, 2016
June 30, 2017
Current Assets
19,399,886
20,369,217
16,747,960
Noncurrent Assets
43,295,306
42,382,105
40,826,953
Total Assets
62,695,192
62,751,322
57,574,913
Deferred Outflow of Resources
2,953,492
3,276,470
9,153,453
Current Liabilities
7,098,192
9,322,192
6,865,240
Noncurrent Liabilities
53,445,278
52,820,831
55,921,363
Total Liabilities
60,543,470
62,143,023
62,786,603
Deferred Inflow of Resources
3,438,324
1,118,000
1,031,000
Total Net Position
1,666,890
2,766,769
2,910,763

4. Historical and Budget to Actual Analysis

5. General Fund Results 2015 2016 2017 - Actual 2017 – Final Budget
Local Revenues
24,912,939
25,122,585
26,401,750
25,786,356
State Revenues
6,726,292
6,972,240
8,495,424
7,751,030
Federal Revenues
1,417,358
1,329,446
1,378,277
1,150,957
Total Revenues
33,056,589
33,424,271
36,275,451
34,688,343
% Increase
2.0%
1.1%
8.5%
Instructional Services
16,247,357
16,779,069
18,034,360
18,389,936
Instructional Student Support
3,416,753
3,732,352
3,853,601
3,955,081
Admin & Financial Support
2,474,295
2,855,517
3,022,198
2,879,641
Operation & Maintenance
2,838,638
2,657,185
2,836,370
2,882,057
Student Transportation
1,987,188
2,376,574
2,295,373
2,155,731
Student Activities
630,477
599,550
646,693
709,891
Community Services
35,363
32,447
35,435
18,582
Debt Service Principal
-0-
65,930
Total Expenditures
27,630,071
29,098,624
30,789,960
30,990,919
5.8%
5.3%
Excess of Revenues over Expenditures
5,426,518
4,325,647
5,485,491
3,697,424

6. General Fund Results 2015 2016 2017 - Actual 2017 – Final Budget
Excess of Revenues over Expenditures
5,426,518
4,325,647
5,485,491
3,697,424
Fund Transfers
5,750,103
3,957,773
6,127,523
4,147,545
Other Uses (Sources)
(27,264)
(278,140)
(4,463)
400,000
Total Other Financing Uses
5,722,839
3,679,633
6,123,060
4,547,545
Change in Fund Balance
(296,321)
646,014
(637,569)
(850,121)
Ending Fund Balance
11,226,579
11,872,593
11,235,024

7. Capital Projects Fund Fiscal Year Fund Additions Expenditures
Ending Fund Balance
2,123,991
1,573,685
2,071,738
9,519
1,307,794
1,521,432
1,006,216
1,181,799
2,819,707

8. GASB No. 54 – Fund Balance Reporting and Governmental Type Definitions
General Fund
Capital Project Fund
Nonspendable Prepaid Expenses
68,530
-0-
Committed (Board) for Future Retirement Contributions
5,300,000
Committed (Board) for Future Health Care Costs
2,900,000
Assigned for Future Capital Outlays
2,071,738
Unassigned (Residual general fund balance)
2,966,494
Total
11,235,024

9. Food Service Fund 2014-15 2015-16 2016-17 Operating Revenues 261,900
85,141
202,964
Non-operating Revenues
466,493
609,363
543,970
Revenues
728,393
694,504
746,934
Salaries and Benefits
180,918
177,228
214,170
Purchased Services
263,156
261,293
221,234
Supplies
307,293
403,746
291,573
Depreciation
41,349
38,865
28,527
Total Expenses
792,716
881,132
755,504
Change in Net Position
(64,323)
(186,628)
(8,570)

10. Internal Service Fund 2014-15 2015-16 2016-17 Charges for Services
2,537,601
2,796,034
3,416,245
Employee Benefits
2,992,102
3,719,233
3,872,246
Non Operating Revenues
971
2,560
2,013
Interfund Transfers
1,000,000
-0-
Change in Net Position
546,470
(920,639)
(453,988)

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 and will include additional footnote disclosures and required supplementary information

12. 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

13. PSERS
Pension Reform
As of 6/30/16, PSERS plan was approximately 50% funded (about $50 billion unfunded liability)
PV’s proportionate share .0886%
Normal Cost
Unfunded Liability 20.89
Premium Assistance
30.03%

14. Single Audit Compliance audit of federal awards
Major programs tested were Special Education Grants, Child Nutrition and Title II
No findings or questioned costs

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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