1. Pequea Valley School District
2018 Audit
December 4, 2018

2. For Management Use Only
Introduction
Independent Auditors’ Report for the year ended June 30, 2018
Management’s Discussion and Analysis. Unaudited information prepared by John Bowden, Chief of Finance and Operations.
Government Wide Statements - Full accrual basis statements.
For Management Use Only

3. Governmental Activities Highlights
Capital asset additions of $1.46M included Apple iPads (leased), the planetarium project, the High School auditorium upgrade, and the Salisbury Elementary systems automation.
Disposal of various capital assets in current year included the old Paradise Elementary School Building.
$3.79M of principal payments made during the year. Ending balance of outstanding debt at June 30, 2018 is $10.48M.
Implementation of new OPEB accounting standard resulted in a $2.90M increase in noncurrent liabilities.
Net position increased by $1.84M as of June 30, 2018.
For Management Use Only

4. For Management Use Only
GASBS No. 75, OPEB
Effects the full-accrual financial statements
Government-Wide
Enterprise Fund (Food Service)
Additional footnote disclosures and required supplementary information
Summary of effects ($000)
PV Plan
PSERS Plan
OPEB Liability
1,251
1,883
OPEB Expense
123 95
Prior Period Adjustment
1,908
1,145
For Management Use Only

5. For Management Use Only
PSERS
Pension Reform
As of 6/30/17, PSERS plan was approximately 52% funded (about $49 billion unfunded liability)
PV’s proportionate share .0924%
Normal Cost
Unfunded Liability 31.74
Premium Assistance
32.57%
Net pension liability at 6/30/18 - $45.6M
For Management Use Only

6. Governmental Activities Historical Analysis
June 30, 2016
June 30, 2017
June 30, 2018
Current Assets
20,369,217
16,747,960
18,789,686
Noncurrent Assets
42,382,105
40,826,953
39,614,303
Total Assets
62,751,322
57,574,913
58,403,989
Deferred Outflow of Resources
3,276,470
9,153,453
9,489,310
Current Liabilities
9,322,192
6,865,240
8,438,368
Noncurrent Liabilities
52,820,831
55,921,363
56,668,158
Total Liabilities
62,143,023
62,786,603
65,106,526
Deferred Inflow of Resources
1,118,000
1,031,000
740,000
Total Net Position
2,766,769
2,910,763
2,046,773
For Management Use Only

7. For Management Use Only
General Fund Results
2016
2017
Actual
2018 – Final Budget
Local Revenues
25,122,858
26,401,750
27,736,091
26,687,045
State Revenues
6,972,240
8,495,424
8,487,247
8,149,454
Federal Revenues
1,329,446
1,378,277
1,094,343
1,097,058
Total Revenues
33,424,271
36,275,451
37,317,681
35,933,557
% Increase
1.1%
8.5%
2.9%
Instructional Services
16,779,069
18,034,360
19,132,698
19,613,675
Instructional Student Support
3,732,352
3,853,601
3,710,573
3,489,152
Admin & Financial Support
2,855,517
3,022,198
3,258,967
3,312,693
Operation & Maintenance
2,657,185
2,836,370
2,398,950
2,552,602
Student Transportation
2,376,574
2,295,373
2,395,086
2,398,632
Student Activities
599,550
646,693
649,781
657,530
Community Services
32,447
35,435
33,774
33,755
Debt Service Principal
65,930
-0-
Total Expenditures
29,098,624
30,789,960
31,645,759
32,058,039
5.3%
5.8%
2.8%
Excess of Revenues over Expenditures
4,325,647
5,485,491
5,671,922
3,875,518
For Management Use Only

8. For Management Use Only
General Fund Results
2016
2017
2018 Actual
2018
Final Budget
Excess of Revenues over Expenditures
4,325,647
5,485,491
5,671,922
3,875,518
Fund Transfers
3,957,773
6,127,523
4,630,542
4,203,053
Other Uses (Sources)
(278,140)
(4,463)
(314,553)
400,000
Total Net Other Financing Uses
3,679,633
6,123,060
4,315,989
4,603,053
Change in Fund Balance
(646,014)
(637,569)
1,355,933
(727,535)
Ending Fund Balance
11,872,593
11,235,024
12,590,957
For Management Use Only

9. General Fund – Expense Analysis
For Management Use Only

10. For Management Use Only
Capital Projects Fund
Fiscal Year
Fund Additions
Expenditures
Ending Fund Balance
18,078
1,158,541
931,275
2,123,991
1,573,685
2,071,738
9,519
1,307,794
1,521,432
For Management Use Only

11. GASB No. 54 – Fund Balance Reporting and Governmental Type Definitions
General Fund
Capital Project Fund
Nonspendable Prepaid Expenses
9,955
-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
931,275
Unassigned (Residual general fund balance)
4,381,002
Total
12,590,957
For Management Use Only

12. For Management Use Only
Food Service Fund
Operating Revenues
85,141
202,964
210,794
Non-operating Revenues
609,363
543,970
570,146
Revenues
694,504
746,934
780,940
Salaries and Benefits
177,228
214,170
238,274
Purchased Services
261,293
221,234
192,062
Supplies
403,746
291,573
298,050
Depreciation
38,865
28,527
19,194
Total Expenses
881,132
755,504
747,580
Change in Net Position
(186,628)
(8,570)
33,360
For Management Use Only

13. For Management Use Only
Internal Service Fund
Charges for Services
2,796,034
3,416,245
2,910,942
Employee Benefits
3,719,233
3,872,246
Non Operating Revenues
2,560
2,013
3,377
Interfund Transfers
-0-
500,000
Change in Net Position
(920,639)
(453,988)
503,377
For Management Use Only

14. 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
Note 16 – Other Postemployment Benefits (OPEB)
Note 21 – 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
For Management Use Only

15. For Management Use Only
Single Audit
Compliance audit of federal awards
Major program tested was Title I
No questioned costs
For Management Use Only

16. Thank You & Staff Recognition
John Bowden and Britney Hevner
Thanks to John, Britney, and the rest of the Business Office staff for helping us during our audit.
Pequea Valley School District
We value our relationship with you and thank you for your business.
For Management Use Only

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