MINISINK VALLEY CENTRAL SCHOOL DISTRICT assessing accountability and interperiod equity by requiring ... discussion and analysis and budgetary comparison ... our tests of its compliance

MINISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII.L, NEW YORK

AUDIT REPORT FOR THE FISCAL YEAR ENDEDJUNE 30, 2015

INCLUDING REPORTS ON FEDERAL AWARDSAND EXTRACLASSROOM ACTIVITY FUNDS

MINISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII.,L, NEW YORK

JiJNE 30, 2015TABLE OF CONTENTS

SCHEDULENUMBER SCHEDULES PAGE

Independent Auditor's Report 1 - 3

Management Discussion and Analysis 4 - ]

4

1 Statement of Net Position 15

2 Statement of Activities and Changes in Net Position 16

3 Balance Sheet -Governmental Funds 17

4 Reconciliation of Governmental Funds Balance Sheet to the Statementof Net Position 18

5 Statement of Revenues, Expenditures and Changes in Fund Balances -

Governmental Funds 19

6 Reconciliation of Governmental Funds Statement of Revenues, Expendituresand Changes in Fund Balances to the Statement of Activities and Changes

in Net Position 20

7 Statement of Fiduciary Net Position 21

8 Statement of Changes in Fiduciary Net Position 22

Notes to Financial Statements 23 - 58

REQUIRED SUPPLEMENTAL SCHEDULESSS-1 Schedule of Funding Progress —Other Postemployment Benefits 59

SS-2 Schedule of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual -General Fund 60 — 61

SS-3 Schedule of the District's Proportionate Share of the NetPension Liability 62

SS-4 Schedule of District Contributions 63

SUPPLEMENTAL SCHEDULESSS-5 Schedule of Change from Adopted Budget to Final Budget and

the Real Property Tax Limit 64

SS-6 Schedule of Capital Projects Fund -Project Expenditures and Financing

Resources 65

SS-7 Net Investment Capital Assets 66

REPORT ON FEDERAL AWARDSIndependent Auditor's Report on Internal Control over Financial Reporting

and on Compliance and Other Matters Based on an Audit of theFinancial Statements Performed in Accordance withGovernment Auditing Standards 67 - 68

Independent Auditor's Report on Compliance for Each Major Program

and on Internal Control Over Compliance Required byOMB Circular A-133 69 - 70

Schedule of Expenditures of Federal Awards 71

Notes to the Schedule of Expenditures of Federal Awards 72

Schedule of Findings and Questioned Costs 73 - 74

REPORT ON EXTRACLASSROOM ACTNITY FUNDSIndependent Auditor's Report 75 - 76

Statement of Assets, Liabilities and Fund Balance -Cash Basis 77

Summary of Receipts and Disbursements -Cash Basis -High School 78

Summary of Receipts and Disbursements -Cash Basis -Middle &Intermediate 79

Notes to Financial Statements 80

l~Iugent ~ Haeussler, P.C.CERTIFIED PQBLIC ACCOUNTANTSESTABLISHED 1925

INDEPENDENT AUDITOR'S REPORT

To the President and Membersof the Board of Education of theMinisink Valley Central School DistrictSlate Hill, New York 10973

Rebort on the Financial Statements

101 Bracken RoadMontgomery, New York 12549Tel (845) 457-1100Fax (845) 457-1160e-mail: [email protected]

Peter J. Bullis, CPA, FACFEI, DABFANorman M. Sassi, CPAChristopher E. Melley, CPAGary C. Theodore, CPAJulia R. Fraino, CPAWilliam T. Trainor, CPAMark M. Levy, CPA, CFPThomas R. Busse, Jr., CPABrent T. Napoleon, CPAJennifer L. Capicchioni, CPA

Patrick M. Bullis, CPARichard P. Capicchioni, CPAWalter J. Jung, CPAJustin B. Wood. CPA

We have audited the accompanying financial statements of the governmental activities, each major fund, and theaggregate remaining fund information of the Minisink Valley Central School District, as of and for the year endedJune 30, 2015, and the related notes to the financial statements, which collectively comprise the District's basicfinancial 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 accordancewith accounting principles generally accepted in the United States of America; this includes the design,implementation, and maintenance of internal control relevant to the preparation and fair presentation of financialstatements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America and the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express nosuch opinion. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of significant accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinions.

-1-MEMBERS: NEW YORK STATE SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS •AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

Minisink Valley Central School District

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of the governmental activities, the each major fund, and the aggregate remaining fundinformation of the Minisink Valley Central School District as of June 30, 2015, and the respective changes infinancial position for the fiscal year then ended in accordance with accounting principles generally accepted in theUnited States of America.

Chance in Accounting Principle

As described in Note 1 to the financial statements, the District implemented Governmental Accounting StandardsBoard Statements No. 68 and 71, which improve the usefulness of pension information and enhance its value forassessing accountability and interperiod equity by requiring recognition of a net pension asset or liability and amore comprehensive measure of pension expense. Our opinion is not modified with respect to that matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management'sdiscussion and analysis and budgetary comparison information an pages 4 through 14 and 59 through 63 bepresented to supplement the basic financial statements. Such information, although not a part of the basicfinancial statements, is required by the Governmental Accounting Standards Board, who considers it to be anessential part of financial reporting for placing the basic financial statements in an appropriate operational,economic, or historical context. We have applied certain limited procedures to the required supplementaryinformation in accordance with auditing standards generally accepted in the United States of America, whichconsisted of inquires of management about the methods of preparing the information and comparing theinformation for consistency with management's responses to our inquires, the basic financial statements, andother knowledge we obtained during our audit of the basic financial statements. We do not express and opinionor provide any assurance on the information because the limited procedures do not provide us with sufficientevidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the Minisink Valley Central School District's basic financial statements. The supplemental schedules onpages 64 through 66 were required by the New York State Education Department and are presented for purposesof additional analysis and are not a required part of the basic financial statements. The schedule of expenditures offederal awards is presented for purposes of additional analysis as required by U.S. Office of Management andBudget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not arequired part of the basic financial statements.

The supplemental schedules on pages 64 through 66, and schedule of expenditures of federal awards are theresponsibility of management and was derived. from and relate directly to the underlying accounting and otherrecords used to prepare the basic financial statements. Such information has been subjected to the auditingprocedures applied in the audit. of the basic financial statements and certain additional procedures, includingcomparing and reconciling such information directly to the underlying accounting and other records used toprepare the basic financial statements or to the basic financial statements themselves, and other additionalprocedures in accordance with auditing standards generally accepted in the United States of America. In ouropinion, the supplemental schedules on pages 64 through 66, and schedule of expenditures of federal awards arefairly stated in all material respects in relation to the basic financial statements as a whole.

~►~

Minisink Valley Central School District

Other Reportin~quired by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated October 13, 2015 onour consideration of the Minisink Valley Central School District's internal control over financial reporting and onour tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is to describe the scope of our testing of internal control over financialreporting or on compliance. That report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in considering Minisink Valley Central School District's internal control over financialreporting and compliance.

4T ~

Montgomery, New YorkOctober 13, 2015

-3-

MINISINK VALLEY CENTRAL SCHOOL DISTRICT

Management Discussion and Analysis

Introductory Section

The following is a discussion and analysis of Minisink Valley Central School District's financial performance forthe fiscal year ended June 30, 2015. This section is a summary of the Minisink Valley Central School District'sfinancial activities based on currently known facts, decisions, or conditions. It is also based on both the district-wide and fund-based financial statements. The results of the current year are discussed in comparison with theprior year, with an emphasis placed on the current year. This section is only an introduction and should be read inconjunction with the District's financial statements, which immediately follow this section.

Overview of the Financial Statements

This annual report consists of three parts: NID&A (this section), the basic financial statements, and requiredsupplementary information. The basic financial statements include two kinds of statements that present differentviews of the District:

• The first two statements are district-wide financial statements that provide both sho~~t-term and long-terminformation about the District's overall financial status.

• The remaining statements are fund financial statements that focus on individual parts of the District, reportingthe District's operations in more detail than the district-wide statements. The fund financial statementsconcentrate on the District's most significant funds with all other non-major funds listed in total in one column.

• The governmental funds statements indicates how basic services such as regular and special education werefinanced in the short term as well as what remains for future spending.

• Fiduciary funds statements provide information about the financial relationships in which the District actssolely as a trustee or agent for the benefit of others.

The financial statements also include notes that explain some of the information in the statements andprovide more detailed data. The statements are followed by a section of required. supplementary information thatfurther explains and supports the financial statements with a comparison of the District's budget for the year.

Figure A-1 summarizes the major features of the District's financial statements, including the portion ofthe District's activities they cover and the types of information they contain. The remainder of this overviewsection of NID&A highlights the structure and contents of each of the statements.

-4-


Management Discussion and Analysis(Continued)

Overview of the Financial Statements (Continued)Figure A-1 Major Features of the District-Wide and Fund Financial Statements

Fund Financial StatementsDistrict-Wide Governmental Funds Fiduci Funds

Scope Entire District (except The activities of the District Instances in which thefiduciary funds) that are not proprietary or District administers

fiduciary, such as special resources on behalf ofeducation and building someone else, such as

maintenance scholarship programs andstudent activities monies

Required financial •Statement of Net •Balance Sheet •Statement of Fiduciarystatements Position •Statement of Revenues, Net Position

• Statement of Expenditures, and Changes •Statement of Changes inActivities in Fund Balances Fiduciary Net Position

Accounting basis and Accrual accounting Modified accrual accounting Accrual accounting andmeasurement focus and economic and current financial focus economic resources focus

resources focusType of asseddeferred All assets, deferred Generally,. assets and All assets, deferredoutflows of outflows of resources, deferred outflows of outflows of resources (ifresources/liability/deferred liabilities, and resources expected to be any), liabilities, andinflows of resources deferred inflows of used up and liabilities and deferred inflows ofinformation resources, both deferred inflows of resources resources (if any) both

financial and capital, that come due or available short-term and long-term;short-term and long- during the year or soon funds do not currentlyterm thereafter; no capital assets contain capital assets,

or long-term liabilities although they canincluded

Type of inflow/out flow All revenues and Revenues for which cash is All additions andinformation expenses during year, received. during or soon after deductions during the year,

regardless of when the end of the year; regardless of when cash iscash is received or expenditures when goods or received or paidpaid services have been received

and the related liability isdue and a able

District-Wide Financial Statements

The district-wide statements report information about the District as a whole using accounting methods similar tothose used by private-sector companies. The statement of net position includes all of the District's assets andliabilities. All of the current year's revenues and expenses are accounted for in the statement of activitiesregardless of when cash is received or paid.

The two district-wide statements report the District's net position and how they have changed. Net position, thedifference between the District's assets, deferred outflows of resources, liabilities and deferred inflows ofresources, is one way to measure the Districts financial health or position.

Over time, increases or decreases in the District's net position are an indicator of whether its financialposition is improving or deteriorating, respectively.

-5-



To assess the District's overall health, you need to consider additional nonfinancial factors such as

changes in the District's property tax base and the condition of school buildings and other facilities.

In the district-wide financial statements, the District's activities are shown as Governmental activities: Most of

the District's basic services are included here, such as regular and special education, transportation, and

administration. Property tomes and State formula aid finance most of these activities.

The district-wide financial statements are presented on pages 15 and 16 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. Funds are accounting devices the District uses to keep

track of specific sources of funding and spending on particular programs:

Some funds are required by State law and by bond covenants.

The District establishes other funds to control and to manage money for particular purposes (such as

repaying its long-term debts) or to show that it is properly using certain revenues (such as Federal

grants).

The District has two kinds of funds:

Governmental Funds: Most of the District's basic services are included in governmental funds, which

generally focus on (1) how cash and other financial assets that can readily be converted to cash flow in

and out and (2) the balances left at year end that are available for spending. Consequently, the

governmental funds statements provide a detailed short-term view that helps you determine whether

there are more or fewer financial resources that can be spent in the near future to finance the District's

programs. Because this information does not encompass the additional long-term focus of the

district-wide statements, additional information at the bottom of the governmental funds statements

explains the relationship (or differences) between them.

Budgetary comparison statements are included in the supplemental financial statements for the

General Fund. These statements and schedules demonstrate compliance with the District's adopted

and final revised budget.

The basic governmental fund financial statements are presented on pages 17 and 19 of this report.

Fiduciary Funds: The District is the trustee, or fiduciary, for assets that belong to others, such as the

scholarship fund and the student activities funds. The District is responsible for ensuring that the

assets reported in these funds are used only for their intended purposes and by those to whom the

assets belong. The District excludes these activities from the district-wide financial statements

because it cannot use these assets to finance its operations.

The basic fiduciary fund financial statements are presented on pages 21 and 22 of this report.

-6-



Financial Analysis of the District as a Whole

The District's net position at June 30, 2015 is $7,728,676. This is a $1,214,982, decrease from last year's netposition of $8,943,658, as restated. The following table provides a summary of the District's net position:

Summary of Net Position

Current AssetsNon-Current AssetsTotal Assets

Deferred Outflows of ResourcesTotal Assets and Deferred Outflows of Resources

Current LiabilitiesLong Term Debt Outstanding

T- otal Liabilities

Deferred Inflows of ResourcesTotal Liabilities and Deferred Outflows of Resources

Net Position:Net Investment in Capital AssetsRestrictedUnrestrictedTotal Net Position

School District ActivitiesJune 30, 2015 June 30, 2014 %Change

$ 36,723,044 $ 33,768,607 8.75%114,050,855 97,207,920 17.33%150,773,899 130,976,527 20.37%

8,260,086 5,480,807 50.71%159,033,985 136,457,334

15,801,050 13,205,144 19.66%120,734,562 112,528,812 7.29%136,535,612 125,733,956 8.59%

14,769,697 1,779,720 729.89%151, 3 O5, 3 09 127,.513, 676

24,151,746 20,601,223 17.23%19,349,266 7,525,977 157.10%

(35,772,336) (19,183,542) -86.47%$ 7,728,676 $ 8,943,658 -13.58%

The following table and supporting graphs provides a summary of revenues, expenses and changes m net positionfor the years ended June 30, 2015 and 2014:

-7-

REVENUES

PROGRAM REVENUES:Charges for ServicesOperating Grants

GENERAL REVENUES:Property TaxesOther Tax ItemsSchool Tax Relief (STAR)Use of Money &PropertySale of PropertyMiscellaneousState SourcesFederal Sources

TOTAL REVENUES

EXPENSES

MINISINK VALLEY CENTRAL SCHOOL DISTWCTSLATE HILL, NEW YORK

STATEMENT OF ACTIVITIESSUMMARY OF CHANGES IN NET POSITION

JiJNE 30, 2015 % JUNE 30, 2014 % $Change %Change

$ 856,892 0.96% $ 1,010,880 1.17% $ (153.988) -17.97%~4,025,769 4.50°fo 3,538,219 4.11% 487,550 12.11%

38,034,093 42.54% 37,013,635 42.98% 1,020,458 2.68%882,550 0.99% 777,072 0.90% 105,478 11.95%

4,836,320 5.41% 4,864,573 5.65% (28,253) -0.58°i~26,009 0.03% 23,271 0.03% 2,738 10.53°io(34>054) -0.04% 51,799 0.06% (85,853) 252.11%

1,158,463 1.30°/a 1,034,434 1.20% 124,029 10.71%39,498,106 44.19% 37,687,444 43.76% 1,810,662 4.58%

107,204 0.12% 124,745 0.14% (17,541) -16.36%

89,391,352 100.00% 86,126,072 100.00% 3,265,280 269.75%

General Support 7,062.,170 7.79% 7,216,270Instruction 45,958,047 50.72% 45,932,039Pupil Transportation 4,429,932 4.89% 4,469,300Community Services 14,237 0.02% 13,564Employee Benefits 24,217,686 26.73% 27,104,228Debt Service Interest 3,035,004 3.35% 2,929,134Depreciation 4,609,896 5.09% 4,728,934School Lunch Program 1,279,362 1.41% 1,170,276

TOTAL EXPENSES 90,606,334 100.00% 93,563,745

INCREASE (DECREASE) IN NET POSITION $ (1,214,982) $ (7,437,673)

-8-

7.71 % $ (154,100) -2.18%49.10% 26,OQ8 0.06%4.78% (39,368) -0.89%0.01 °/u 673 4.73%28.97% (2,886,542) -11.92%3.13°/u 105,870 3.49%5.05% (119,038) -2.58%1.25% 109,086 8.53%

100.00% $ (2,957,411) -0.77%

$ 6,222,691

Property Taxes

Property Taxes

Operating G4.11%

MINISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HILL, NEW YORK

SOURCES OF REVENUESFOR THE FISCAL YEAR ENDED JUNE 30, 2015

V 0.96%

Other Tax Items0.99%

sources0.12%

School Tax Relief (STAR).5.41

SOURCES OF REVENUESFOR THE FISCAL YEAR ENDED JUNE 30, 2014

1.17%

Other Ta~c Items~.9~%

Federal Sources0.14%

Use of Money &Property0.03%

Sale of Property-0.04%

C..1,....1 Tom.. De1:eF lCTA 4\

State Sources44.19%

1.30%

Use of Money &Property0.~3%

Sale of Property0.06%

Miscellaneous120%


EXPENSES FOR THE FISCAL YEAR ENDED JUNE 30, 2015

Instruction50.72%

Pupil Transportation4.89%

General Support7.79%

School Lunch Program Depreciation Community Services

° ° Debt Service Interest Employee Benefits d.02o~01.41 /0 5.09 /0

26.73%3.35%

EXPENSES FOR THE FISCAL YEAR ENDED JUNE 30, 2014

Instruction49.10

Pupil Transportation4.78%

General Support Community Services

7.71% 0.01%

Employee BenefitsSchool Lunch Program Debt Service Interest 28.97%

1.25% Depreciation 3.13%5.05%

MINISINK VALLEY CENTRAL SCHOOL DISTWCTSLATE HILL. NEW YORK

STATEMENT OF ACTNITIESNET COSTS

The following information is provided to disclose the net cost of governmental activities:

TOTAL COST NET COST TOTAL COST NET COSTOF SERVICES OF SERVICES OF SERVICES OF SERVICES2014-2015 2014-2015 2013-2014 2013-2014

General Support $ 7,062,170 $ 7,062,170 $ 7,216,270 $ 7,216,270Instruction 45,958,047 42,358,449 45,932,039 42,694,131

Pupil Transportation 4,429,932 4,429,932 4,469,300 4,469,300Community Services 14,237 14,237 13,564 13,564

Employee Benefits 24,217,686 24,217,686 27,104,228 27,104,228

Debt Service -Interest 6 '"' 3,035,004 3,035,004 2,929,134 2,929,134Depreciation 7 4,609,896 4,609,896 4,728,934 4,728,934School Lunch Program — 1,279,362 (3,701) 1,170,276 (140,915)

$ 90,606,334 $ 85,723,673 $ 93,563,745 $ 89,014,646

NET COSTS 2014-2015

$45,000,000

$40,000,000

$35,000,000

$30,000,000

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$0

$(5,000,000)

$45,000,000

$40,000,000

$35,000,Q00

$30,000,000

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$0

$(5,000,000)

NET COSTS 2013-2014

-11-



Financial Analysis of the District's Funds

As discussed, the District's governmental funds are reported in the fund statements with a modified accrual basisthat uses ashort-term, inflow and outflow of spendable resources focus. This information is useful in assessingresources available at the end of the year in comparison with upcoming financial requirements. The majorgovernmental funds of the District consist of the General Fund, Special Aid Fund, School Lunch Fund, DebtService Fund and Capital Projects Fund. The total fund balances allocated between non-spendable, restricted,assigned, and unassigned fund balance for each of these funds is as follows:

GeneralSpecial AidSchool LunchCapital ProjectsDebt Service

GeneralSpecial AidSchool LunchCapital ProjectsDebt Service

Nonspendable$ 0

025,550

0n

$ 25,550

Nonspendable$ 0

031,603

0n

$ 31,603

General Fund Bud~e~ary Highli

Restricted6,993,888

41,445,303

091,774

$ 8,530,969

Restricted6,029,113

41,433,343

063,517

$ 7,525,977

June 30, 2015Assigned

$ 8,853,9510000

Unassigned11,753,079

00

(3,660,406)0

$ 8,853,951 $ 8,092,63

June 30, 2014Assigned

$ 9,543,0020000

$ 9,543,002

Unassigned8,876,621

00

(1,479,377)0

$ 7,397,244

Total$ 27,600,918

4

1,470,853(3,660,406)

91,774~ 25,503,143

Total$ 24,448,736

41,464,946

(1,479,377)63,517

$ 24,497,826

In reviewing the actual results of operations far the General Fund for the year ended June 30, 2015, as comparedto the adjusted budget you will find that revenues were $2,475,440 (2.97%) over budget and the unencumberedexpenditure budget was $8,425,885 (8.93%). For the year ended June 30, 2014 revenues earned were $1,567,635(1.74%) greater than budget and the unencumbered expenditures were $8,048,793 (8.93%) of budget.

Property T~ was $49,289 (.13%) over budget due to exemptions that were removed due to change in ownershiprelated to property sales. Real property tax STAR and other t~ items were $305,770 (5.65%) over budget as aresult of an additional PILOT revenue that was received based on a sliding scale as outlined in the PILOTagreement. State Aid and Federal Aid was $1,152,286 (10.12%) over budget due to the restoration of more than$1,000,000 in Gap Elimination Adjustment funding. Miscellaneous Revenues were 781,548 (223%) over budgetdue to refund of prior years' expenses and BOCES classroom rental revenue. The District appropriated$8,998,762 of fund balance to reduce the 2014-2015 ta~L levy as compared to $8,299,429 for the prior year.Appropriation of fund balance continues to be managed to ensure that funds are available to meet theprogrammatical and operational needs of the district while adhering to property t~ cap guidelines in order toavoid significant tax increases in the future.

For fiscal year 2015-2016, the District has appropriated $7,060,094 of fund balance to reduce the tax levy.

-12-

MINIS]NK VALLEY CENTRAL SCHOOL DISTRICT


General Fund Bud~etary Hi~hli~hts (Continued

Factors that continue to affect the budget process are as follows:

• New York State Property Tax Cap limiting tax revenues during challenging economic times.

• Uncertainty regarding state aid funding and future sustainability due to statewide budget constraints.

• Future costs associated with healthcare reform from legislation and within the industry.

• Continued budgetary demands imposed by legislative mandates.

Management believes that the budget adopted for 2015-2016 is reasonably adaptable to any adverse changes thatmay arise based on the above factors.

The New York State Legislature enacted legislation, Chapter 97 of the Laws of 2011 that establishes a "propertytax cap" on the amount that a school district's property ta~L levy can increase each year. This new legislationspecifies that property taxes levied by a school district generally cannot increase by more than two percent, or the

rate of inflation, whichever is less. The law does allow school districts to levy an additional amount for certainexcludable expenditures. School disMcts can adopt a ta~c levy that exceeds the statutory limit, if the budget that ispresented to the public is approved by sixty percent of the votes cast. The legislation took effect beginning withthe 2012-2013 school year.

Other Fund Highlights

The Special Aid Fund -for the year ended June 30, 2015, an interfund transfer from the General Fund. to theSpecial Aid Fund in the amount of $228,403 was made to provide funds for the required 20% local match for theSummer Handicapped Program. The Special Aid Fund balance at year end was $4.

The School Lunch Fund had revenues which exceeded expenditures by $5,907. Fund balance increased to$1,470,853. The financial stability of the program has allowed the district to offer quality menu options with astudent lunch price that remains a very affordable option for families. The District entered into a new contractagreement with Araxnark, Inc. for 2014-15 that incorporates enhanced nutritional guidelines in order to complywith Federal and State regulations promoting healthy meals and snacks. The district plans to utilize a portion ofthe unreserved fund balance during the summer of 2015 to install new serving lines at the elementary andintermediate schools in the District. These improvements will reduce student wait time in line while providingbetter equipment to maintain and present quality food options for the students throughout the day.

-13-



Capital Asset and Debt Administration

Capital Assets

The District's investment in capital assets, net of accumulated depreciation as of June 30, 2015 and 2014, was$94,008,701 and $96,140,051 respectively. The total decrease in this net investment was -2.22% for the Districtas a whole (see schedule below). The District expended $2,688,663 to acquire and construct capital assets duringthe fiscal year ended June 30, 2015. Assets retired from service had a net basis of $210,117 and depreciationexpense for the fiscal year was $4,609,896.

CAPITAL ASSETSNet of Accumulated Depreciation

Non-Depreciable Assets:LandConstruction in Progress

Depreciable Assets:Building and ImprovementsFurniture and EquipmentVehiclesTOTALS

Long-Term Debt

School District ActivitiesJune 30, 2015

879,6191,992,888

June 30, 2014

6 879,619605,267

85,609,247 89,173,0231,494,057 1,703,9454,032,890 3,778,197

$ 94,008,701 $ 96,140,051

Change

0.00%229.26%

-4.00%-12.32%6.74%-2.22%

At the end of the fiscal year, the District had total bonded debt outstanding of $65,395,000. This amount isbacked by the full faith and credit of the Minisink Valley Central School District with debt service fully funded byvoter approved property taxes. Activity in bonded debt outstanding during the fiscal year was as follows:

Beginning Balance

$ 71,225,000

Bond Ratings

Issued Paid

$ 31,445.000 $ 37,275,000

Ending Balance

$ 65,395,000

Moody's Investors Service ("Moody's") has assigned a rating of AA to outstanding uninsured bonds of theDistrict. This rating reflects only the view of such rating agency and an explanation of the significance of suchrating should be obtained from Moody's Investors Service. There can be no assurance that such rating will not berevised or withdrawn, if in the judgment of Moody's circumstances so warrant. Any change or withdrawal ofsuch rating may have an adverse effect on the market price of the Notes or the availability of a secondary marketfor the Notes.

Contacting the District's Financial Management.This financial report is designed to provide the District's citizens, taxpayers, customers, investors, and creditorswith a general overview of the District's finances and to demonstrate the District's accountability for the money itreceives. If you have questions about this report or need additional financial information, contact MatthewBourgeois, Assistant Superintendent of Business, at the District's business office located at Route 6, Slate Hill,New York 10973.

-14-

SCHEDULE #1MINISINK VALLEY CENTRAL SCHOOL DISTRICT

SLATE HILL, NEW YORKSTATEMENT OF NET POSITIONGOVERNMENTAL ACTIVITIES

JiJNE 30, 2015

ASSETSUnrestricted Cash $ 23,060,76?Restricted Cash 8,530,969State &Federal Aid Receivable 4,044,647Due from Fiduciary Funds 312,602Other Receivables, Net 748,514Inventories 25,550Net Pension Asset -Proportionate Share 20,042,154Capital Assets, Net 94,008,701

TOTAL ASSETS 150,773,899

DEFERRED OUTFLOWS OF RESOURCESDeferred Amounts on Refunding 2,682,627Pensions 5,577,459

TOTAL ASSETS &DEFERRED OUTFLOWS OF RESOURCES 159,033,985

LIABILITIESAccounts Payable 445,185Accrued Liabilities 489,1.64

Due to Other Governments 220

Due to Teachers' Retirement System 4,949,910

Due to Employees' Retirement System 451,544

Other Liabilities 28,525

Bond Anticipation Notes 3,542,497Overpayments and Collections in Advance 11,465Unearned Revenue 4,400Long-term Liabilities:

Due and Payable Within One Year:Bonds Payable (Includes Deferred Refunding Premium $451,514) 5,641,514Installment Purchase Debt 236,626

Due and Payable In More Than One Year:Bonds Payable (Includes Deferred Refunding Premium $3,992,462) 64,197,462Installment Purchase Debt 2,746,903Compensated Absences 691,231Net Pension Liability -Proportionate Share 1,027,743Other Postemployment Benefits 52,071,223

TOTAL LIABILITIES 136,535,612

DEFERRED INFLOWS OF RESOURCES

Deferred Revenues 996, ] 24

Pensions 13,773,573

TOTAL LIABILITIES &DEFERRED INFLOWS OF RESOURCES 151,305,309NET POSITION

Net Investment in Capital Assets 24,151,746Restricted 19,349,266Unrestricted (deficit) (35,772,336)

TOTAL NET POSITION$

7,728,676

See notes to financial statement.

-15-


SLATE HILL, NE W YORKSTATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION

GOVERNMENTAL ACTIVITIESFOR THE YEAR ENDED JUNE 30, 2015

FUNCTIONS &PROGRAMS

General SupportInstructionPupil TransportationCommunity ServicesDebt Service -InterestSchool Lunch Program

TOTAL FUNCTIONS

& PROGRAMS

GENERAL REVENUES

EXPENSES

PROGRAM REVENUES

CHARGESFOR

SERVICESOPERATINGGRANTS

NET (EXPENSE)REVENUE &CHANGES INNET POSITION

$ (10,066,325) $ 0 $ 0 $ (10,066,325)(69,203,241) 163,401 3,436,197 (65,603,643)(6,964,769) 0 0 (6,964,769)

(14,237) 0 0 (14,237)(3,035,004) 0 0 (3,035,004)(1,322,758) 693,491 589,572 (39,695)

$ (90,606,334) $ 856,892 $ 4,025,709 (85,723,673)

Real Property TomesOther Tax ItemsUse of Money &PropertySale of Property &Compensation for LossMiscellaneousState SourcesFederal Sources

TOTAL GENERAL REVENUES

CHANGE IN NET POSITION

NET POSITION, BEGINNING OF YEAR, as Restated

NET POSITION, END OF YEAR


-16-

38,034,0935,718,870

26,009(34,054)

1,158,46339,498,106

107,204

84,508,691

(1,214,982)

8,943,658

$ 7,728,676

SCHEDULE #3

MINISINK VALLEY CEN'T'RAL SCHOOL DISTRICT

SLATE HILL, NEW YORK

BALANCE SHEET-GOVERNMENTAL FUNDS

JUNE 30, 2015

TOTAL

SPECIAL

SCHOOL

CAPITAL

DEBT

GOVERNMENTAL

GENERAL

AID

LUNCH

PROJECTS

SERVICE

FUNDS

ASSETS

Unre

stri

cted

Cash

$

22,959,423

$

0

$

94,889

$

6,450

$

0

$

23,0

60,7

62Restricted Cas

h6,

995,

442

11,

445,

303

090,223

8,530,969

State &Federal Aid

Rec

eiva

ble

3,07

2,50

1928,298

43,8

480

04,

044,

647

Due fro

m Ot

her Funds

1,20

1,10

30

00

1,55

11,

202,

654

Due fro

m Fi

duci

ary Fu

nds

312,

602

00

00

312,

602

Othe

r Receivables, Net

748,514

00

00

748,

514

Inve

ntor

ies

00

25,550

00

25,550

TOTAL ASSETS

$

35,2

89,5

85

$

928,299

$

1,60

9,59

0

$

6,450

$

91,7

74

$

37,925,698

LIAB

ILIT

IES

&

FiJND BALANCES

LIAB

ILIT

IES

Accounts Payable

$

331,

747

$

0

$

113,438

$

0

$

0

$

445,185

Accr

ued

Liab

ilit

ies

98,800

00

00

98,800

Due to Ot

her Governments

00

220

00

220

Due to Other Funds

150,

000

928.

295

012

4,35

90

1,20

2,65

4Due to Teachers' Re

tire

ment

System

4,949,910

00

00

4,949,910

Due to Employees' Re

tire

ment

System

451,544

00

00

451,

544

Othe

r Liabilities

3,44

60

25,079

00

28,525

Bond Ant

icip

atio

n No

tes

00

03,

542,

497

03,

542,

497

Over

paym

ents

and

Col

lect

ions

in Ad

vanc

e11,465

00

00

11,4

65Co

mpen

sate

d Absences

691,

231

00

00

691,

231

Unea

rned

Rev

enue

s4,

400

00

00

4,40

0TOTAL LIA

BILI

TIES

6,692,543

928,295

138,

737

3,666,856

011,426,431


Defe

rred

Rev

enue

s99

6,12

40

00

099

6,12

4

FUND BALANCES

Fund Balance:

Nonspendable

00

25,550

00

25.550

Restricted

6,993,888

41.445.303

091

.774

8,530,969

Assigned

8,85

3,95

I0

00

08,

853,

951

Unassigned

11,753,079

00

(3,660,406)

08,

092.

673

TOTAL FUND BALANCES

27,6

00,9

184

1,470,853

(3,6

60,4

06)

91;774

25,503.143

TOTAL LIA

BILI

TIES

&FUND BALANCES

$

35,2

89,5

85

$

928,

299

$

1,609,590

$

6,450

$

91,7

74

$

37,9

25.6

98

See notes to

tinancial statement.

-17-

SCHEDULE #4



RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION

JiJNE 30, 2015

TOTAL

LONG-TERM

GOVERNMENTAL

ASSETS &

RECLASSIFICATIONS

STATEMENT OF

FUNDS

LIABILITIES

& ELIr~1ATIONS

NET POSITION

ASSETS

Unrestricted Cash

$23,060,762

$0

$

0$

23,060,762

Restricted Cash

8,530,969

00

8,530,969

State &Federal Aid Receivable

4,044,647

00

4,044,647

Due from Other Funds

1,202,654

0(1,202,654)

0Due from Fiduciary Funds

312,602

00

312,602

Other Receivables, Net

748,514

00

748,514

Inventories

25,550

00

25,550

Net Pension Asset -Proportionate Shaze

020,042,154

020,042,154

Capital Assets, Net

094,008,701

094,008,701

TOTAL ASSETS

37,925,698

114,050,855

(1,202,654)

150,773,899

DEFERRED OUTFLOWS OF RESOURCES

Deferred Amounts on Refunding

02,682,627

02,682,627

Pensions

05,577,459

05,577,459

TOTAL ASSETS & DEFERED OUTFLOWS OF RESOURCES

$37.925,698

$122,310,941

$

(1,202,654)

$

159,033,985

LIABILITIES &FUND BALANCES /NET POSITION

LIABIl.ITIES

Accounts Payable

$445,185

$0

$

0$

445,185

Accrued Liabilities

98,800

390,364

0489,164

Due to Other Governments

220

00

220

Due to Other Funds

1,202,654

0(1,202,654)

0Due to Teachers' Retirement System

4,949,910

00

4,949,910

Due to Employees' Retirement System

451,544

00

451,544

Other Liabilities

28,525

00

28,525

Bond Anticipation Notes

3,542,497

00

3,542,497

Overpayments and Collections in Advance

11,465

00

11,465

Unearned Revenues

4,400

00

4,400

Bonds Payable

069,838,976

069,838,976

Installment Purchase Debt

02,983,529

02,983,529

Compensated Absences

691,231

00

691,231

Net Pension Liability -Proportionate Share

01,027,743

01,027,743

Other Postemployment Benefits

052,071,223

052,071,223

TOTAL LIABILITIES

] 1,426,431

126,311,835

(1,202,654)

136,535,612


Deferred Revenues

996,124

00

996,124

Pensions

013,773,573

013,773,573

FUND BALANCES /NET POSITION

25,503,143

(]7,774,467)

07,728,676

TOTAL LIABILITIES &FUND BALANCES !NET POSITION

$37,925,698

$122,310,941

$

(1,202,654)

$

_ 159,033,985

See notes to financial statement

-18-

SCHEDULE #5


SLATE HILL. NEW YORK

STATEMENT OF REVENUES. EXPENDITURES & CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS

FOR THE YEAR ENDED JUNE 30, 2015

REVENiJES

Real

Pro

pert

y Tomes

Othe

r Tax Ite

msCharges fo

r Se

rvic

esUse of Money &Property

Sale of Property &Co

mpen

sati

on for

Los

sMi

scel

lane

ous

Stat

e So

urce

sFederal Sowces

Sale

s TOTAL REVENUES

EXPENDITURES

General Support

Instruction

Pupil Tr

ansp

orta

tion

Community Ser

vice

sEmployee Benefits

Debt

Ser

vice

:Pr

inci

pal

Interest

Cost

of Sa

les

Capital Ou

tlay

TOTAL EXPENDITURES

EXCESS (DEFICIENCY) REVENUES OVER EXPENDITURES

OTHER SOURCES &USES

Bond Anticipation Notes Paid from Cu

rren

t Ap

prop

riat

ions

Premium on Ob

liga

tion

Proceeds fro

m Advanced Refunding

Paym

ents

to Escrow Age

nt (Advanced Refunding Bonds)

Operating Transfers In

Operating Transfers (Ou

t)TOTAL OTHER SOURCES &USES

EXCESS (DEFICIENCY) REVENUES &OTHER SOURCES

OVER EXPENDITURES &OTHER USES

FUND BALANCES, BEGINNING OF YEAR

FUND BALANCES, END OF YEAR

SPECIAL

SCHOOL

CAPITAL

GENERAL

AID

LUNCH

PROJECTS

DEBT

SERVICE

TOTAL

GOVERNMEIV7'AL

F[JNDS

$

38,034,093

$

0

$

0

$

0

$

0

$

38,034,093

5,71

8,87

00

00

05,

718,

870

168,656

00

00

168,656

22,3

280

2,206

01,475

26,0

09176,063

00

00

176,063

1,131,681

091

00

1,131,772

40,434,928

1,240,320

25,9

900

041,701,238

107,

204

1,259,055

563,

582

00

1,929,841

00

693,

400

00

693,

400

85,7

93,8

232,499,375

1,285,269

01,475

89,5

79,9

42

7,062,170

00

00

7,06

2,17

043

,429

,720

2,587,406

00

046

,017

,126

4,485,091

00

00

4,48

5,09

114

,237

00

00

14,237

18,795,796

140,

372

00

018

,936

,168

5,64

3,64

20

00

05,

643,

642

2,982;582

00

00

2,982,582

00

1,27

9,36

20

01,279,362

00

02,574,425

02,574,425

82,413,238

2,72

7,.7

781,

279,

362

2,574,425

088

,994

,803

3,380,585

(228

,403

)5,907

(2,5

74,4

25)

1,47

5585,139

00

039

3,39

60

393,

396

00

00

26,782

26,7

820

00

034,173,012

34,173,012

00

00

(34,173,012)

(34,173,012)

0228,403

00

0228,403

(228

,403

)0

00

0(228,403 )

(228,403)

228,403

039

3,39

626

,782

420,

178

3,15

2,18

20

5,907

(2,1

81,0

29)

28,257

1,005,317

24,448,736

41,

464,

946

(1,479,377)

63,5

1724,497,826

$

27,6

00,9

18

$

4

$

1,47

0,85

3

$

(3,6

60,4

06)

$

91J74

$

25,503,143

See notes to fin

anci

al statement.

-19-

SCHEDULE #6



RECONCILIATION OF GOVERNMENTAL FUNDS STATEMENT OF REVENUES. EXPENDITURES AND

CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION

FOR THE YEAR ENDED JUNE 30.2015

TOTAL

LONG-TERM

CAPITAL

LONG-TERM

GOVERNMENTAL

REVENUE &

RELATED

DEBT

RECLASSIFICATIONS

STATEMENT OF

FUNDS

EXPENSES

ITEMS

TRANSACTIONS

&ELIMINATIONS

ACTIVITIES

REVENUES

Real

Property Takes

$

38,034,093

$

0$

0$

0

$0

$

38,034,093

Othe

r T~ Items

5,718,870

00

00

5,718,870

Charges fo

r Services

168,656

(5,255)

00

0163,401

Use of Money &Property

26,0

090

00

026

,009

Sale

of Property &Co

mpen

sati

on for

Loss

176,063

0(2

10,1

17)

00

(34,

054)

Miscellaneous

1,131,772

00

00

1,13

1,77

2

Stat

e So

urce

s41,701,238

00

00

41,701,238

Federal So

urce

s1,929,841

00

00

1,92

9,84

1

Sale

s693,400

00

00

693,

400

TOTALREVENiJES

89,5

79,9

42(5,255)

(210,117)

00

89,364,570

EXPENDITURES

General Support

7,06

2,17

00

33,0

570

2,971,098

10,0

66,3

25

Instruction

46,0

17,1

260

3,826,432

019,359,683

69,203,241

Pupil Tr

ansp

orta

tion

4,48

5,09

10

592,773

01,886,905

6,964,769

Community Services

14,2

370

00

014

,237

Employee Ben

efiu

18,9

36,1

685,281,518

00

(24,217,686)

0

Debt

Service:

Principal

5,64

3,64

20

0(5

,250

,246

)(393,396)

0

Inte

rest

2,98

2,58

287

,]80

0(3

4,75

8)0

3,03

5,00

4

Cost of Sa

les

1,27

9,36

20

43,396

00

1,322,758

Capital Ou

tlay

2,574,425

0(2

,574

,425

)0

0

TOTAL EXPENDITURES

88,9

94,8

035,368,698

1,92

1,23

3(5

,285

,004

)(393,396)

90,6

06,3

34

EXCESS (DEFICIENCY) REVENUES OVER

EXPENDITURES

585,139

(5,373,953)

(2,1

31,3

50)

5,28

5,00

439

3,39

6(1

,241

,764

)

OTHER SOURCES &USES

Proceeds fro

m De

bt0

00

00

0

Bond Ant

icip

atio

n Notes Paid from Cu

rren

t Appropriations

393,

396

00

0(393,396)

0

Premium on Obl

igat

ion

26,7

820

00

026,782

Proceeds fro

m Ad

vanc

ed Refunding

34,173,012

00

(34,173,012)

00

Payments to Es

crow

Age

nt (Adv

ance

d Refunding Bonds)

(34,173,012)

00

34,173,012

00

Operating Transfers In

228,403

00

0(228,403)

0

Operating Transfers (Ou

t)(228,403)

00

0228,4b3

0

TOTAL OTHER SOURCES &USES

420,

] 78

00

0(393,396)

26,782

NET CHANGE FOR THE YEAR

$

1,00

5,31

7$

(5,3

73,9

53)

$

(2,1

31,3

50)

$

5,285,004

$0

$

(1,2

14,9

82)

See no

tes to

financial statement.

-20-


SLATE HILL, NEW YORKSTATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDSJUNE 30, 2015

ASSETS

Cash

TOTAL ASSETS

LIABII,ITIES &NET POSITION

LIABILITIES

Due to Other Funds

Due to Other Governments

Extraclassroom Activity Balances

Other Liabilities

TOTAL LIABILITIES

NET POSITION

Held in Trust for Endowment, Scholarship and Gift Funds

TOTAL LIABILITIES &NET POSITION


-21-

PRNATEPURPOSE

AGENCY

$ 304,571 $ 485,214

$ 304,571 $ 485,214

$ 0 $ 312,6020 1,3850 162,4160 8,811

0 $ 485,214

304,571

$ 304,571


SLATE HILL, NEW YORKSTATEMENT OF CHANGE IN FIDUCIARY NET POSITION

FIDUCIARY FUNDSFOR THE YEAR ENDED JUNE 30, 2015

ADDITIONS

Gifts and Contributions

Investment Earnings

TOTAL ADDITIONS

DEDUCTIONSScholarships &Awards

TOTAL DEDUCTIONS

CHANGE IN NET POSITION

NET POSITION, BEGINNING OF YEAR

NET POSITION, END OF YEAR


-22-

PRNATEPURPOSETRUSTS

$ 170

1.131

1,301

1,500

1,500

(199)

304,770

$ 304,571

MINISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII,L, NEW YORK

NOTES TO FINANCIAL STATEMENTSJiJNE 30, 2015

NOTE 1. SUMMARY OF CERTAIN SIGNIFICANT ACCOUNTING POLICIES.

The financial statements of the Minisink Valley Central School District (the "District") havebeen prepared in conformity with generally accepted accounting principles (GAAP) as appliedto governmental units. Those principles are prescribed by the Governmental AccountingStandards Board (GASB), which is the accepted standard-setting body for establishinggovernmental accounting and financial reporting principles. Significant accounting principlesand policies utilized by the District are described below:

A. Reporting Entity

The Minisink Valley Central School District is governed by the laws of New York State.The District is an independent entity governed by an elected Board of Education consistingof 9 members. The President of the Board serves as the chief fiscal officer and theSuperintendent is the chief executive officer. The Board is responsible for, and controls allactivities related to public school education within the District. Board members haveauthority to make decisions, power to appoint management, and primary accountability forall fiscal matters.

The reporting entity of the District is based upon criteria set forth by GASB Statement 14,The Financial Reporting Entity, as amended by GASB Statement 39, Component Units.The financial reporting entity consists of the primary government, organizations for whichthe primary government is financially accountable and other organizations for which thenature and significance of their relationship with the primary government are such thatexclusion would cause the reporting entity's financial statements to be misleading orincomplete.

The accompanying financial statements present the activities of the District. The District isnot. a component unit of another reporting entity. The decision to include a potentialcomponent unit in the District's reporting entity is based on several criteria including legalstanding, fiscal dependency and financial accountability. Based on the application of thesecriteria, the following is a brief description of certain entities included in the District'sreporting entity.

1. Extraclassroom Activity Funds

The Ea~traclassroom Activity Funds of the District represent funds of the students of theDistrict. The Board of Education exercises general oversight of these funds. TheExtraclassroom Activity Funds are independent of the District with respect to its financialtransactions and the designation of student management. Separate audited financialstatements (cash basis) of the Ea~traclassroom Activity Funds have been included in thisreport. The District accounts for assets held as an agent for various student organizations inan agency fund.

B. Joint Venture

The District is one of 17 component districts in the Orange/CTlster Board of CooperativeEducation Services (BOLES). BOLES is a cooperative association of school districts in ageographic area that shares planning, services, and programs which provide educational

-23-

MIl~TISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII,L, NEW YORK

NOTES TO FINANCIAL STATEMENTSJUNE 30, 2015

NOTE 1. SUMMARY OF CERTAIN SIGNIFICANT ACCOiJNTING POLICIES. (Continued)

B. Joint Venture (continued)

and support activities. There is no authority or process by which a school district canterminate its status as a BOCES component.

BOCES are organized under § 1950 of the New York State Education Law. A BOCESBoard is considered a corporate body. Members of a BOCES Board are nominated andelected by their component member boards in accordance with provisions of § 1950 of theNew York State Education Law. All BOCES property is held by the BOCES Board as acorporation (§ 1950(6)). In addition, BOLES Boards also are considered municipalcorporations to permit them to contract with other municipalities on a cooperative basisunder § 119-n (a) of the New York State General Municipal Law.

A BOLES' budget is comprised of separate budgets for administrative, program and capitalcosts. Each component districts share of administrative and capital cost is determined byresident public school district enrollment, as defined in the New York State Education Law,§ 1950(4)(b)(7). In addition, component districts pay tuition ar a service fee for programsin which its students participate.

During the year, the District was billed $10,969,832 for BOLES administrative andprogram costs. The District's share of BOLES aid amounted to $1,442,527. FinancialStatements for BOLES are available from the BOLES administrative office located at 53Gibson Road, Goshen, NY 10924.

C. Basis of Presentation

1. District-Wide Statements

The Statement of Net Position and the Statement of Activities and Changes in Net Positionpresent financial information about the Districts governmental activities. These statementsinclude the financial activities of the overall government in its entirety, except those thatare fiduciary. Eliminations have been made to minimize the double counting of internaltransactions. Governmental activities generally are financed through taxes, State aid,intergovernmental revenues, and other exchange and non-exchange transactions. Operatinggrants include operating-specific and discretionary (either operating or capital) grants.

The Statement of Activities and Changes in Net Position presents a comparison betweenprogram expenses and revenues for each function of the District's governmental activities.Direct expenses are those that are specifically associated with and are clearly identifiable toa particular function. Indirect expenses, principally employee benefits, are allocated tofunctional areas in proportion to the payroll expended in those areas. Program revenuesinclude charges paid by the recipients of goods or services offered by the programs, andgrants and contributions that are restricted to meeting the operational or capitalrequirements of a particular program. Revenues that are not classified as programrevenues, including all taxes, are presented as general revenues.

-24-



NOTE 1. SUMMARY OF CERTAIN SIGNIFICANT ACCOUNTING POLICIES. (Continued)

C. Basis of Presentation (continued)

2. Funds Statements

The fund statements provide information about the District's funds, including fiduciary

funds. Separate statements for each fund category (governmental and fiduciary) are

presented. The emphasis of fund financial statements is on major governmental funds, each

displayed in a separate column.

The District reports the following major governmental funds:

General Fund: This is the District's primary operating fund. It accounts for all financial

transactions that are not required to be accounted for in another fund.

~ecial Aid Fund: This fund accounts for the proceeds of specific revenue sources, such as

federal and state grants, that are legally restricted to expenditures for specified purposes.

These legal restrictions may be imposed either by governments that provide the funds, or

by outside parties.

School Lunch Fund: This fund is used to account for the school lunch operations. The

school lunch operation is supported by federal and state grants and charges participants for

its services.

Capital Projects Fund: This fund is used to account for the financial resources used for

acquisition, construction, or major repair of capital facilities.

Debt Service Fund: This fund accounts for the accumulation of resources and the payment

of principal and interest on long-term general obligation debt of governmental activities.

The District reports the following fiduciary funds:

Fiduciary Fund: Fiduciary activities are those in which the District acts as trustee or agent

for resources that belong to others. These activities are not included in the District-wide

financial statements, because their resources do not belong to the District, and are not

available to be used. There are two classes of fiduciary funds:

Private purpose trust funds: These funds aze used to account for trust arrangements in

which principal and income benefits annual third party awards and scholarships for

students. Established criteria govern the use of the funds and members of the District or

representatives of the donors may serve on committees to determine who benefits.

Agency funds: These funds are strictly custodial in nature and do not involve the

measurement of results of operations. Assets are held by the District as agent for various

student groups or extraclassroom activity funds and for payroll or employee withholding.

-25-




D. Measurement Focus and Basis of Accounting

The District-wide and fiduciary fund financial statements are reported using the economicresources measurement focus and the accrual basis of accounting. Revenues are recordedwhen earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash transaction takes place. Nonexchange transactions, in which theDistrict gives or receives value without directly receiving or giving equal value inexchange, include property taxes, grants and donations. On an accrual basis, revenue fromproperty taxes is recognized in the fiscal year for which the taxes are levied. Revenue fromgrants and donations is recognized in the fiscal year in which all eligibility requirementshave been satisfied.

The fund statements are reported using the current financial resources measurement focusand the modified accrual basis of accounting. Under this method, revenues are recognizedwhen measurable and available. The District considers all revenues reported. in thegovernmental funds to be available if the revenues are collected within 90 days after theend of the fiscal year.

Expenditures are recorded when the related fund liability is incurred, except for principaland interest on general long-term debt, claims and judgments, and compensated absences,which are recognized as expenditures to the extent they have matured. General capital assetacquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources.

E. Prope ,Taxes

Real property tomes are levied annually by the Board of Education no later than September15̀ and became a lien on August 16, 2014. Taxes were collected during the periodSeptember 1, 2014 through October 31, 2014.

Uncollected real property taxes are subsequently enforced by Orange County. The Countypays an amount representing all uncollected real property tomes transmitted to the Countyfor enforcement to the District no later than the following April 1.

F. Restricted Resources

When an expense is incurred for purposes for which both restricted and unrestricted netposition are available, the District's policy concerning which to apply first varies with theintended use, and with associated legal requirements, many of which are describedelsewhere in these Notes.

G. Interfund Transactions

The operations of the District include transactions between funds. These transactions maybe temporary in nature, such as with interfund borrowings. The District typically loansresources between funds for the purpose of providing cash flow. These interfundreceivables and payables are expected to be repaid within one year. Permanent transfers of

d~~


NOTES TO FINANCIAL STATEMENTSJUNE 30.2015


G. Interfund Transactions (continued)

funds include the transfer of expenditure and revenues to provide financing or otherservices.

In the district-wide statements, the amounts reported on the Statement of Net Position forinterfund receivables and payables represent amounts due between different fund types(governmental activities and fiduciary funds). Eliminations have been made for allinterfund receivables and payables between the funds, with the exception of those due fromor to the fiduciary funds.

The governmental funds report all interfund transactions as originally recorded. Interfundreceivables and payables may be netted on the accompanying governmental funds balancesheet when it is the District's practice to settle these amounts at a net balance based uponthe right of legal offset.

Refer to Note 9 for a detailed disclosure by individual fund for interfund receivables,payables, expenditures and revenues activity.

H. Estimates

The preparation of financial statements in conformity with accounting principles generallyaccepted in the United States of America requires management. to make estimates andassumptions that affect the reported amount of assets and liabilities and disclosure ofcontingent assets and liabilities at the date of the financial statements and the reportedrevenues- and expenses during the reporting period. Actual results could differ from thoseestimates. Estimates and assumptions are made in a variety of areas, including computationof encumbrances, compensated absences, potential contingent liabilities and useful lives oflong-lived assets.

I. Cash and Investments

The District's cash and cash equivalents consist of cash on hand, demand deposits, andshort-term investments with original maturities of three months or less from date ofacquisition.

New York State law governs the District's investment policies. Resources must bedeposited in FDIC-insured commercial banks or trust companies located within the State.Permissible investments include obligations of the United States Treasury, United StatesAgencies, repurchase agreements and obligations of New York State or its localities.

Collateral is required for demand and time deposits and certificates of deposit not coveredby FDIC insurance. Obligations that may be pledged as collateral are obligations of UnitedStates and its agencies and obligations of the State and its municipalities and Districts.

-27-




J. Accounts Receivable

Accounts receivable are shown gross, with uncollectible amounts recognized under thedirect write-off method. No allowance for uncollectible accounts has been provided sinceit is believed that such allowance would not be material.

K. Inventories and Prepaid Items

Inventories of food in the School Lunch Fund are recorded at cost on a first-in, first-outbasis, or in the case of surplus food, at stated value which approximates market. Purchasesof inventoriable items in other funds are recorded as expenditures at the time of purchase,and are considered immaterial in amount.

Prepaid items represent payments made by the District for which benefits extend beyondyear-end. These payments to vendors reflect costs applicable to future accounting periodsand are recorded as prepaid items in both the district-wide and fund financial statements.These items are reported as assets on the statement of net position or balance sheet usingthe consumption method. A current asset for the prepaid amounts is recorded at the time ofpurchase and an expense/expendih:re is reported in the year the goods or services areconsumed.

A reserve for these non-liquid assets (inventories and prepaid items) has been recognized tosignify that a portion of fund balance is not available for other subsequent expenditures.

L. Capital Assets

Capital assets are reported at cost for acquisitions. Donated assets are reported at estimatedfair market value at the time received.

Capitalizaxion thresholds (the dollar value above which asset acquisitions are added to thecapital asset accounts), depreciation methods, and estimated useful lives of capital assetsreported in the District-wide statements are as follows:

Capitalization Depreciation EstimatedThreshold Method Useful Life

Land Improvements $ 5,000 Straight Line 40 yearsBuildings and Improvements 5,000 Straight Line 40 yearsFurniture and Equipment 5,000 Straight Line 5 - 20 yearsVehicles 5,000 Straight Line 8 years

The board approved an increase in the capitalization thresholds from $1,000 to $5,000effective July 1, 2012. Assets capitalized prior to July 1, 2012 will continue to bedepreciated over their remaining estimated useful lives.

-28-




M. Deferred Outflows and Inflows of Resources

In addition to assets, the Statement of Net Position will sometimes report a separate sectionfor deferred outflows of resources. This separate financial statement element, deferredoutflows of resources, represents a consumption of net position that applies to a futureperiod and so will not be recognized as an outflow of resources (expense/expenditure) untilthen. The government has one item that qualifies for reporting in this category. It isdeferred charges on refunding reported in the government —wide Statement of NetPosition. A deferred charge on refunding results from the difference in the carrying valueof refunded debt and its reacquisition price. This amount is deferred and amortized overthe shorter of the life of the refunded or refunding debt. The second item is related topensions reported in the district-wide Statement of Net Position. This represents the effectof the net change in the Districts proportion of the collective net pension asset or liabilityand difference during the measurement period between the District's contributions and itsproportion share of total contributions to the pension systems not included in pensionexpense. Lastly is the District contributions to the pension systems (TRS and ERSSystems) subsequent to the measurement date.

In addition to liabilities, the statement of net position will sometimes report a separatesection for deferred inflows of resources. This separate financial statement element,deferred inflows of resources, represents an acquisition of net position that applies to afuture periods) and so will not be recognized as an inflow of resources (revenue) until thattime. The District has three items that qualify for reporting in this category. First arisesonly under a modified accrual basis of accounting and is reported as unavailable revenue —property taxes. The second item is related to pensions reported in the district —wideStatement of Net Position. This represents the effect of the net change in the District'sproportion of the collective net pension liability (ERS System) and difference during themeasurement periods between the District's contributions and its proportionate share oftotal contributions to the pension systems not included in pension expense.

N. Unearned Revenue

Unearned revenues are reported when potential revenues do not meet both the measurableand available criteria for recognition in the current period. Unearned revenues also arisewhen the District receives resources before it has legal claim to them, as when grant moniesare received prior to incurring qualifying expenditures. In subsequent periods, when bothrecognition criteria are met, or when the District has .legal claim to the resources, theliability for deferred revenues is removed and revenues are recorded.

Statute provides tl~e authority for the District to levy tomes to be used to financeexpenditures within the first 120 days of the succeeding fiscal year. Consequently, suchamounts are recognized as revenue in the subsequent fiscal year, rather than whenmeasurable and available.

Unearned revenues recorded in governmental funds are typically adjusted prior to inclusionin the District-wide statements.

-29-




O. Vested Employee Benefits

1. Compensated Absences

Compensated absences consist of unpaid accumulated annual sick leave, vacation, andsabbatical or personal time.

Sick leave eligibility and accumulation is specified in negotiated. labor contracts, and inindividual employment contracts. Upon retirement, resignation or death, employees maycontractually receive a payment based on unused accumulated sick leave.

District employees are granted vacation in varying amounts, based primarily on length ofservice and service position. Some earned benefits may be forfeited if not taken in varyingtime periods.

Consistent with GASB Statement 16, Accounting for Compensated Absences, the liabilityhas been calculated using the vesting/termination method and an accrual for that liability isincluded in the district-wide financial statements. The compensated absences liability iscalculated based on the contractual pay rates in effect at year-end.

2. Other Benefits

District employees participate in the New York State Employees' Retirement System andthe New York State Teachers' Retirement System.

In addition to providing pension benefits, the District provides post-employment healthinsurance coverage and survivor benefits to retired employees and their survivors inaccordance with the provisions of various employment contracts in effect at the time ofretirement. Substantially all of the District's employees may become eligible for thesebenefits if they reach normal retirement age while working for the District. Health carebenefits are provided through plans whose premiums are based on the benefits paid duringthe year. The cost of providing post-retirement benefits is shared between the District andthe retired employee based on the contract in place at the employees' retirement date. TheDistrict recognizes the cost of providing health insurance by recording its share ofinsurance premiums as an expenditure.

P. Short-Term Debt

The District may issue Revenue Anticipation Notes (RAN) and Taar Anticipation Notes(TAN), in anticipation of the receipt of revenues. These notes are recorded as a liability ofthe fund that will actually receive the proceeds from the issuance of the notes. The RAN'sand TANS represent a liability that will be extinguished by the use of expendable, availableresources of the fund.

-30-

NIINISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII,L, NEW YORK


NOTE 1. SUIVIMARY OF CERTAIN SIGNIFICANT ACCOiJNTING POLICIES. (Continued)

P. Short-Term Debt (Continued)

The District may issue budget notes up to an amount not to exceed 5% of the amount of theannual budget during any fiscal year for expenditures for which there is an insufficient orno provision made in the annual budget. The budget note must be repaid no later than theclose of the second fiscal year succeeding the year in which the note was issued.

The District may issue Bond Anticipation Notes (BAN), in anticipation of proceeds fromthe subsequent sale of bonds. These notes are recorded as current liabilities of the fundsthat will actually receive the proceeds from the issuance of bonds. State law requires thatBANs issued for capital purposes are converted to long-term financing within five yearsafter the original issue date.

Q. Accrued Liabilities and Long-Term Obli ate ions

Payables, accrued liabilities and long-term obligations are reported in the district-widefinancial statements. In the governmental funds, payables and accrued liabilities are paid ina timely manner and in full from current financial resources. Claims and judgments, andcompensated absences that will be paid from governmental funds, are reported as a liabilityin the funds financial statements only to the extent that they are due for payment in thecurrent year. Bonds and other long-term obligations that will be paid from governmentalfunds are recognized as a liability in the fund financial statements when due.

Long-term obligations represent the District's future obligations or future economicoutflows. The liabilities are reported as due in one year or due within more than one yearin the Statement of Net Position.

R. Equity Classifications

1. District-wide Statements

In the district-wide statements there are three classes of net position:

Net investment in capital assets -consists of net capital assets (cost less accumulateddepreciation) reduced by outstanding balances of related debt obligations from theacquisition, constnzctions or improvements of those assets.

Restricted net position -reports net position when constraints placed on the assets are eitherexternally imposed by creditors (such as through debt covenants), grantors, contributors, orlaws or regulations of other governments, or imposed by law through constitutionalprovisions or enabling legislation.

Unrestricted net position —reports all other net position that do not met the definition of theabove two classifications and are deemed to be available for general use by the District.

-31-

MII~iISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII,L, NEW YORK

NOTES TO FINANCIAL STATEMENTSJUNE 30, 20.15


R. Equity Classifications (Continued)

2. Funds StatementsIn the governmental fund statements, there are five classifications of fund balance

Non-spendable —Includes amounts that cannot be spent because they are either (a) not inspendable form or (b) legally or contractually required to be maintained intact. Non-spendable fund balance includes the inventory recorded in the School Lunch Fund of$25,550.

Restricted —Includes amounts with constraints placed on the use of resources either (a)externally imposed by creditors, grantors, contributors or laws or regulations of othergovernments; or (b) imposed by law through constitutional provisions or enablinglegislation. All encumbrances of funds other than the General fund are classified asrestricted fund balance. The District has established the following restricted fund balances:

Workers' Compensation Reserve

Workers' Compensation Reserve (GML §6 j) is used to pay for compensation benefits and.other expenses authorized by Article 2 of the Workers' Compensation Law, and forpayment of expenses of administering this self-insurance program. The reserve may beestablished by Board action, and is funded by budgetary appropriations and such otherfunds as may be legally appropriated. Within siarty days after the end of any fiscal year,excess amounts may either be transferred to another reserve or the excess applied to theappropriations of the next succeeding fiscal year's budget. The reserve is accounted for inthe General Fund.

Unemployment Insurance Reserve

According to General Municipal Law §6-m, must be used to pay the cost of reimbursementto the State Unemployment Insurance Fund for payments made to claimants where theemployer has elected to use the benefit reimbursement method. The reserve may beestablished by Board action and is funded by budgetary appropriations and such other fundsas may be legally appropriated. Within sixty days after the end of any fiscal year, excessamounts may either be transferred to another reserve or the excess applied to theappropriations of the next succeeding fiscal year's budget. If the District elects to convertto tax (contribution) basis, excess resources in the fund over the sum sufficient to paypending claims may be transferred to any other reserve fund. This reserve is accounted forin the General Fund.

Property Loss Reserve and Liability Reserve

Property Loss Reserve and Liability Reserve (Education Law § 1709(8) (c)) are used to payfor property loss and liability claims incurred. Separate funds for property loss and liabilityclaims are required, and these reserves may not in total exceed 3% of the annual budget or$15,000, whichever is greater. This type of reserve fund may be utilized only by schooldistricts, except city school districts with a population greater than 125,000. These reservesare accounted for in the General Fund.

-32-

MII~TISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII,L, NEW YORK



R. Equity Classifications (Continued)

2. Funds Statements (Continued)

Tax Certiorari Reserve

According to Education Law §3651.1-a, must be used to establish a reserve fund for tactcertiorari and to expend from the fund without voter approval. The monies held in thereserve shall not exceed the amount that might reasonably be deemed necessary to meetanticipated judgments and claims arising out of tax certiorari proceedings. Any resourcesdeposited to the reserve which are not expended for tax certiorari proceedings in the yearsuch monies are deposited must be returned to the General Fund on or before the first dayof the fourth fiscal year after deposit of these monies. The reserve is accounted for in theGeneral Fund.

Employee Benefit Accrual Reserve

According to General Municipal Law §6-p, must be used for payment of accrued employeebenefit due an employee upon termination of the employee's service. This reserve may beestablished by a majority vote of the Board, and is funded by budgetary appropriations andsuch other reserves and funds that may be legally appropriated. The reserve is accountedfor in the General Fund.

Retirement Contribution Reserve

According to General Municipal Law §6-r, must be used for financing retirementcontributions. The reserve must be accounted separate and apart from all other funds and adetailed report of operations and condition of the fund must be provided to the Board.

Restricted fund balance at June 30, 2015 consisted of:

General Fund:Workers' Compensation Reserve $ 1,600,000

Unemployment Insurance Reserve 154,334

Property Loss Reserve and Liability Reserve 124,957Talc Certiorari Reserve 1,246,888Employee Benefit Accrued Liability Reserve 602,486

Retirement Contribution Reserve 3,265,2236,993,888

Special Aid Fund 4

School Lunch Fund 1,445,303Debt Service Fund 91,774

Total Restricted Fund Balance $ 8,530,969

-33-

1VIINISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII_,L, NEW YORK



R. equity Classifications (Continued)

Committed —Includes amounts that can only be used for the specific purposes pursuant toconstraints imposed by formal action of the school districts highest level of decisionmaking authority, i.e., the Board of Education. The School District has no committed fundbalances as of June 30, 2015.

Assigned —Includes amounts that are constrained by the school district's intent to be usedfor specific purposes, but are neither restricted nor committed. Assigned fund balanceincludes (a) all remaining amounts (except for negative balances) that are reported ingovernmental funds, other than the General Fund, that are not classified as nonspendableand are neither restricted nor committed and (b) amounts in the General Fund that areintended to be used for a specific purpose. By reporting particular amounts that are notrestricted or committed in the governmental funds other than the General Fund, the districthas assigned those amounts to the purposes of the respective funds. Assigned fund balancein the General Fund includes $1,793,857 assigned for specific purposes through theissuance of purchase orders that encumbered the budget for the year ended June 30, 2015.This assignment is made when purchase orders are approved by the Purchasing Agent whois designated each year by the Board of Education at its annual reorganizational meetingpursuant to the District's purchasing policy.

Assigned (Continued) -Assigned fund balance in the General Fund also includes$7,060,094 assigned to be used for reduce the t~ levy for the year ending June 30,2015.The assignments are made when the t~ levy is set by the board of education pursuantto the District's annual budget policy.

Unassigned —Includes fund balance that has not been assigned to other funds and that hasnot been restricted, committed, or assigned to specific purposes within the General Fund.In other governmental funds, if expenditures incurred for specific purposes exceeded theamounts restricted, committed, or assigned to those purposes, negative unassigned fundbalance is reported.

Order of Use of Fund Balance:

The District considers restricted amounts to have been spent when expenditure is incurredfor purposes for which both restricted and unrestricted fund balance is available. TheDistrict considers that committed amounts are reduced first, followed by assigned amounts,and then unassigned amounts when expenditures are incurred for purposes for whichamounts in any of those unrestricted fund. balance classifications can be used.

Limitation on Unexpended Surplus Funds:

NYS Real Property Law § 1318 limits the amount of the unexpended surplus funds a schooldistrict can retain to no more than 4% of the School District's General Fund budget for theensuing fiscal year. Nonspendable and restricted fund balance of the General Fund areexcluded from the 4% limitation. Amounts appropriated for the subsequent year andencumbrances are also excluded from the 4% limitation.

-34-


NOTES TO FINANCIAL STATEMENTSJiTNE 30, 2015


S. New Accounting Standards

The District has adopted all current Statements of the Governmental Accounting StandardsBoard (GASB) that are applicable. At June 30, 2015, the District implemented thefollowing new standards issued by GASB:

• GASB Statement 68, Accounting and Financial Reporting for Pensions — anamendment of GASB Statement No. 27, effective for the year ending June 30,2015.

• GASB Statement 69, Government Combinations and Disposals of GovernmentOperations, effective for the year ending June 30, 2015.

• GASB Statement 70, Accounting and Financial Reporting for Non-exchangeFinancial Guarantees, effective for the year ending June 30, 2015

• GASB Statement 71, Pension Transition for Contributions Made Subsequent tothe Measurement Date — an Amendment of GASB Statement No. 68, effectivefor the year ending June 30, 2015.

GASB has issued Statement 68, Accounting and Financial Reporting for Pensions — anamendment of GASB Statement No. 27, which improves financial reporting by state andlocal governments for pensions. This Statement and Statement 67 establish a definition of apension plan that reflects the primary activities associated with the pension arrangement —determining pensions, accumulating and managing assets dedicated for pensions, andpaying benefits to plan members as they come due. The District has implementedStatement 68 as required.

GASB has issued Statement 69, Government Combinations and Disposals of GovernmentOperations, which establishes accounting and financial reporting standards related togovernment combinations and disposals of government operations. The term governmentcombinations, includes a variety of transactions referred to as merger, acquisitions, andtransfers of operations. This Statement improves the decision usefulness of financialreporting by requiring that disclosures be made by governments about combinationarrangements in which they engage and for disposals of government operations. TheDistrict has implemented Staxement 69 as required.

GASB has issued Statement 70, Accounting and Financial Reporting for Non-exchangeFinancial Guarantees, which will improve accounting and financial reporting by state andlocal governments that extend and receive non-exchange financial guarantees. ThisStatement will enhance comparability of financial statements among governments byrequiring consistent reporting by those governments that extend non-exchange financialguarantees and by those governments that receive non-exchange financial guarantees. Itwill also enhance the information disclosed about a government's obligations and riskexposure from extending nonfinancial guarantees. The District has implemented Statement70 as required.

-35-

MiNISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII~L, NEW YORK



S. New Accounting Standards (Continued)

GASB has issued Statement 71, Pension Transition for Contributions Made Subsequent tothe Measurement Date — an Amendment of GASB Statement No. 68, which addresses anissue regarding application of the transition provisions of Statement No. 68, Accountingand Financial Reporting for Pensions and the amounts associated with contributions, ifany, made by a state or local government employer or non-employer contributing entity to adefined benefit pension plan after the measurement date of the government's beginning netpension liability. This Statement amends Statement 68 to require that, at transition, agovernment recognize a beginning deferred outflow of resources for its pensioncontributions, if any, made subsequent to the measurement date of the beginning netpension liability. The District has implemented Statement 71 as required.

T. Future Changes in Accounting Standards

GASB has issued Statement 72, Fair Value Measurement and Application, which addressesaccounting and financial reporting issues related to fair value rrieasurements. The definitionof fair value is the price that would be received to sell an asset or paid to transfer a liabilityin an orderly transaction between market participants at the measurement date. ThisStatement provides guidance for determining a fair value measurement for financialreporting purposes. The Statement also provides guidance for applying fair value to certaininvestments and disclosures related to all fair value measurements. The District is currentlystudying the Statement and plans on adoption if and when required, which will be for theJune 30, 2016 financial statements.

GASB has issued Statement 73, Accounting and Financial Reporting for Pensions andRelated Assets That Are Not within the Scope of GASB Statement 68, and Amendments toCertain Provisions of GASB Statements 67 and 68, which improves the usefulness ofinformation about pensions included in the general purpose external financial reports ofstate and local governments for making decisions and assessing accountability. ThisStatement also amends Statement 67, financial Reporting for Pension Plans. The District iscurrently studying the Statement and plans on adoption if and when required, which will befor the June 30, 2016 financial statements.

GASB has issued Statement 74, Financial Reporting for Postemployment Benefit PlansOther Than Pension Plans, which improves the usefulness of information aboutpostemployment benefits other than pensions included in the general purpose externalfinancial reports of state and local governmental OPEB plans for making decisions andassessing accountability. The District is currently studying the Statement and plans onadoption if and when required, which will be for the June 30, 2017 financial statements.

GASB has issued Statement 75, Accounting and Financial Reporting for PostenzploymentBenefits Other Than Pensions, improves accounting and financial reporting by state andlocal governments for postemployment benefits other than pensions. It also improves theinformation provided by state and local governmental employers about support for OPEBthat is provided by other entities. The District is currently studying the Statement aild planson adoption if and when required, which will be for the June 30, 2018 financial statements.

-36-

MINISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HILL, NEW YORI{

NOTES TO FINANCIAL STATEMENTSJUNE 30.2015


U. Reclassification

Certain amounts in the prior year's financial statements have been reclassified to conform tothe current year's presentation.

NOTE 2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN GOVERNMENTAL FUNDSTATEMENTS AND DISTRICT-WIDE STATEMENTS.

Due to the differences in the measurement focus and basis of accounting used in thegovernmental fund statements and the district-wide statements, certain financial transactionsare treated differently. The basic financial statements contain a full reconciliation of theseitems. The differences result primarily from the economic focus of the Statement of Activities,compared with the current financial resources focus of the governmental funds.

A. Total Fund Balances of Governmental Funds vs. Net Position of Governmental Activities:Total fund balances of the District's governmental funds differ from "net position" ofgovernmental activities reported in the Statement of Net Position. This difference primarilyresults from the additional long-term economic focus of the Statement of Net Positionversus the solely current financial resources focus of the governmental fund BalanceSheets.

The costs of building and acquiring capital assets (land, buildings and. equipment) financedfrom the governmental funds are reported as expenditures in the year they are incurred, andthe assets do not appear on the Balance Sheet. However, the Statement of Net Positionincludes those capital assets among the assets of the District as a whole, with their originalcosts capitalized and depreciation expensed annually over their useful lives. The balancesat June 30, 2015 were as follows:

Original Cost of Capital AssetsAccumulated Depreciation

$ 150,594,792(56,586,091)

$ 94,008,701

2. Interest is accrued in the Statement of Net Position, regardless of when it is due. Thisliability does not appear on the Balance Sheet because interest is expended when it is due,and thus requires the use of current financial resources. This liability at June 30, 2015 wasas follows:

Accrued Interest $ 390,364

3. In a debt refunding, the difference between the reacquisition price and the net carryingamount of the old bonds is recorded as the deferred amount on refunding and included as adeferred outflow of resources in the Statement of Net Position. However, this amount isnot included on the Balance Sheet as it was recorded as an expenditure when it was due,and thus required the use of current financial resources. The balances at June 30, 2015 wereas follows:

Deferred Amount on Refunding $ 2,682,627

-37-



NOTE 2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN GOVERNMENTAL FUNDSTATEMENTS AND DISTRICT-WIDE STATEMENTS. (Continued)

4. In the Statement of Net Position, a liability is recognized for the District's proportionateshare of the net pension liability ariributable to each defined benefit pension plan in whichthe District participates. A net pension liability is measured as the proportionate share ofthe portion of the actuarial present value of projected benefit payments that is attributed topast periods of employee service (proportionate share of total pension liability), net of theproportionate share of that pension plan's fiduciary net position. If a pension plan'sfiduciary net position exceeds its total pension liability, the District's proportionate share ofthe pension plan's net pension asset is recognized. Also, deferred outflows and inflows ofresources related to pensions primarily result from contributions subsequent to themeasurement date, as well as changes in the components of the net pension liability orasset. However, none of these amounts are included on the Balance Sheet as they are onlyrecognized to the extent the pension liability is normally expected to be liquidated withexpendable available financial resources. These balances at June 30, 2015 were as follows:

Net Pension Asset -Proportionate Share $ 20,.042,154

Deferred Outflows of Resources -Pensions 5,577,459

Net Pension Liability -Proportionate Share (1,027,743)

Deferred Inflows of Resources -Pensions (13,773,573)

10,818,297

5. Long-term liabilities are reported in the Statement of Net Position, but not in the BalanceSheet, because they are not due and payable in the current period. The balance at June 30,2015 was as follows:

Bonds Payable (Including Deferred) 69,838,976

Installment Purchase Debt 2,983,529

Other Postemployment Benefits 52,071,223$ 124,893,728

B. Statement of Revenues, Expenditures and Changes in Fund Balance vs. Statement ofActivities and Changes in Net Position:

Differences between the governmental funds Statement of Revenues, Expenditures andChanges in Fund Balance and the Statement of Activities and Changes in Net Position fallinto one of three broad categories. The amounts shown below represent:

1. Long-Term Revenue Differences

Long-term revenue differences arise because governmental funds report revenues onlywhen they are considered "available", whereas the Statement of Activities and Changes inNet Position reports revenues when earned. Differences in long-term expenses arisebecause governmental funds report on a modified accrual basis, whereas the accrual basisof accounting is used on the Statement of Activities and Changes in Net Position.

-38-

NIINISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII.,L, NEW YORK



B. Statement of Revenues, Expenditures and Changes in Fund Balance vs. Statement ofActivities and Changes in Net Position: (Continued)

2. Capital Related Differences

Capital related differences include the difference between proceeds for the sale of capitalassets reported on governmental fund statements and the gain or loss on the sale of assets asreported on the Statement of Activities and Changes in Net Position, and the differencebetween recording an expenditure for the purchase of capital items in the governmentalfund statements and depreciation expense on those items as recorded in the Statement ofActivities and Changes in Net Position.

3.Lon~Term Debt Transaction Differences

Long-term debt transaction differences occur because both interest and principal paymentsare recorded as expenditures in the governmental fund statements, whereas interestpayments are recorded in the Statement of Activities and Changes in Net Position asincurred, and principal payments are recorded as a reduction of liabilities in the Statementof Net Position

E~lanation of Differences between Governmental Funds Operating Statement

and the Statement of Activities and Changes in Net Position

Total Revenues and Other Fundm~ Sources

Total revenues and other funding sources reported in governmental funds

(Schedule 5) 90,000,120

Because some revenue will not be collected for several months after the

District's fiscal year-end, they are not considered as "available"

revenues in the governmental funds. However, they are considered to

be earned in the Statement of Activities. (5,255)

Loss on retirement of fixed assets is recognized in the entity wide statements

under full accrual accounting, whereas it is not in the governmental funds. (210,117)

Repayment of BANs is reported as revenue in the governmental funds, but

is recorded as a liability in the Statement of Net Position and does not affect

the Statement of Activities and Changes in Net Position. (393,396)

Total revenues in the Statement of Activities and Changes in Net Position

(Schedule 2) $ 89,391,352

-39-




Explanation of Differences between Governmental Funds Operating Statementand the Statement of Activities and Changes in Net Position

Total E~enditures &Other Uses/E~enses

Total expenditures and other uses reported in governmental funds (Schedule 5) $ 88,994,803

When the purchase or construction of capital assets is financed through

governmental funds, the resources emended for those assets are reported

as e~enditures in the years they are incurred. However, in the Statement

of Activities, the cost of those assets is allocated over their estimated useful

lives and reported as depreciation e~ense. This is the amount by which

capital expenditures of $2,688,663 were less than depreciation of $4,609,896

in the current year. 1,921,233

In the Statement of Activities, the expense for other postemployment benefits

are measured based on the actuarially determined annual required contribution

(ARC) of the District. In the governmental funds, however, these expenditures

are measured by the amount of financial resources used (essentially the amounts

actually paid). This is the amount by which the ARC exceeded the amount of

financial resources used during the year. 11,556,877

In the Statement of Activities and Changes in Net Position, pension e~ense

related to the ERS and TRS defined benefit pension plans is measured as

the change in the District's proportionate shares of the net pension assets

and liabilities as of the measurement dates for each plan. In the

governmental funds, however, these e~enditures are recognized equal to

the total of (1) amounts paid by the employer to the pension plan and (2)

the change between the beginning and ending balances of amounts

normally expected to be liquidated with emendable available financial

resources. This is the amount by which pension expense was exceeded by

the amount of financial resources expended during the year. (6,275,359)

-40-




.Explanation of Differences between Governmental Funds Operating Statementand the Statement of Activities and Changes in Net Position

Total Expenditures &Other Uses/Expenses Continued)

Interest payable is recognized as an accrued liability in the entity widestatements under full accrual accounting whereas it is not under thegovernmental fund statements. This is the amount by which interestpayable last year exceeds the interest payable this year.

Premiums and discounts on long-term debt issuances and deferred amountsfrom debt refundings are recognized in the fiscal year in which thetransactions occur in the governmental fund statements. These amountsare amortized in the Statement of Activities and Changes in Net Position.This is the amount that was amortized during the fiscal year.

Cost for issuance of advanced refunded bonds are not recognized in thegovernmental fund statements. The amounts are fully recognizedan expense in the Statement of Activities and Changes in Net Position.

Repayment of BANS is an expenditure in the governmental funds, but reduces

liabilities in the Statement of Net Assets, and does not affect the Statement

of Activities and Changes in Net Position.

Repayment of bond and installment debt principal is an expenditure in thegovernmental funds, but reduces liabilities in the Statement of NetAssets, and does not affect the Statement of Activities and Changes inNet Position.

Total expenses in the Statement of Activities and Changes in Net Position(Schedule 2)

NOTE 3. STEWARDSHIl' AND COMPLIANCE.

A. Budges

87,180

(228.580)

193,822

(393,396)

(5,250,246)

$ 90,606,334

The District administration prepares a proposed budget for approval by the Board ofEducation for the following g~vernmenta.l funds for which legal (appropriated) budgets areadopted:

The voters of the District approved the proposed appropriation budget for the General Fund.

Appropriations are adopted at the program line item level.

-41-



NOTE 3. STEWARDSHIP AND COMPLIANCE. (Continued)

Appropriations established by the adoption of the budget constitute a limitation onexpenditures (and encumbrances) that may be incurred. Appropriations lapse at the end ofthe fiscal year unless expended or encumbered. Encumbrances will lapse if not expendedin the subsequent year. Appropriations authorized. for the current year are increased by theplanned use of specific reserves, and budget amendments approved the Board of Educationas a result of selected new revenue sources not included in the original budget (whenpermitted by law). These Supplemental appropriations may occur subject to legalrestrictions, if the Board approves them because of a need that exists which was notdetermined at the time the budget was adopted.

Budgets are adopted annually on a basis consistent with GAAP. Appropriations authorizedfor the year are increased by the amount of encumbrances carried forward from the prioryear.

Budgets are established and used for individual capital project funds expenditures asapproved by a special referendum of the District's voters. The ma~cimum project amountauthorized is based primarily upon the cost of the project, plus any requirements forexternal borrowings, not annual appropriations. These budgets do not lapse and are carriedover to subsequent fiscal years until the completion of the projects.

B. Encumbrances

Encumbrance accounting is used for budget control and monitoring purposes and isreported as a part of the governmental funds. Under this method, purchase orders, contractsand other commitments for the expenditure of monies are recorded to reserve applicableappropriations. Outstanding encumbrances as of year-end are- presented as reservations offund balance and do not represent expenditures or liabilities. These commitments will behonored in the subsequent period. Related expenditures are recognized at that time, as theliability is incurred or the commitment is paid.

C. Other Stewardshipand Compliance Matters

The District's fund balance subject to New York State Real Property Tax Law § 1318 limit,which restricts it to an amount not. greater than 4% of the District's budget for theupcoming school year. At the close of the 2014-2015, the District was in excess of the 4%limitation. Due to challenging economic times, the property tax cap and uncertaintysurrounding state aid sustainability, the District continues to search for new revenuesources and opportunities to reduce and/or contain costs. These fiscally responsibleendeavors have provided the District with the opportunity to establish a workers'compensation reserve to meet future claim obligations. Additionally, the board is exploringthe possibility of creating a capital reserve fund to reduce the need for additional taxincreases related to future capital project work that would preserve and enhance the valueof our school district and the home values in our community.

~y~

1VIINISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII,L, NEW YORK


Custodial credit risk is the risk that in the event of a bank failure, the District's deposits maynot be returned to it. While the District does not have a specific policy for custodial credit risk,New York State statutes govern the District's inveshnent policies, as discussed previously inthese Notes.

The District's aggregate bank balances (disclosed in the financial statements), included.balances not covered by depository insurance at year-end, collateralized as follows:

Uncollateralized $ 0

Collateralized with securities held by the pledging financial institution,ar its trust deparhnent or agent, but not in the District's name $ 32,407,634

Restricted cash represents cash and cash equivalents where use is limited by legal requirements.These assets represent amounts required by statute to be reserved for various purposes.Restricted cash as of year-end includes $8,530,969 within the governmental funds.

The District does not typically purchase investments for a long enough duration to cause it tobelieve that it is exposed to any material interest rate risk. The District also does not typicallypurchase investments denominated in a foreign currency, and is not exposed to foreign currencyrisk.

-43-



NOTE 5. CAPITAL ASSETS.

Capital asset balances and activity for the year ended June 30, 2015, were as follows:

Beginning Retirements/ EndingBalance Additions Reclassifications Balance

Governmental activities:Capital assets that are notdepreciated:Land

$

879,619 $ 0 $ 0 $ 879,619Construction in Progress 605,267 1,387,621 0 1,992,888

Total Nondepreciable Assets 1,484,886 1,387,621 0 2,872,507

Capital assets that aredepreciated:Buildings &Improvements 129,347,642 129,536 (10,588) 129,466,590Furniture &Equipment 10,115,246 59,079 (4,193) 10,170,132

Vehicles 8,622,859 1,112,427 (1,649,723) 8,085,563

Total Depreciable Assets 148,085,747 1,301,042 (1,664,504) 147,722,285

Less: Accumulated Depreciation (53,430,582) (4,609,896) 1,454,387 (56,586,091)

Capital Assets, Net $ 96,140,051 $ (1,921,233) $ (210,117) $ 94,008,701

Depreciation expense was charged to governmental functions as follows:

General SupportInstructionTransportationCost of SalesTotal Depreciation

$ 33,0573,885,511647,93243,396

$ 4,609,896

-44-



NOTE 6. SHORT-TERM DEBT.

Transactions in short -term debt for the year are summarized below:

EndingBeginning Paid/ BalanceBalance Issued Redeemed June 30, 2015

BAN maturing 07/07/14 at 1.25% $1,543,396 $ 0 $1,543,396 $ 0

BAN maturing 08/06/15 at 1.25% 0 3,54,497 0 3,542,497

TotalShort-TermDebt $1,543,396 $3,542,497 $1,543,396 $ 3,542,497

Interest on short-term debt was composed o£

Interest Paid $ 19,292

Less: Interest Accrued in the Prior Year (17,524)

Plus: Interest Accrued. in the Current Year 40,345

Interest E~ense $ 42,113

NOTE 7. LONG-TERM DEBT.

Long-term liability balances and activity for the year are summarized below:Ending Amounts

Beginning Paid/ Balance Due Within

Balance Issued Redeemed June 30, 2015 One Year

Governmental Activities:

Bonds and Notes Payable:

Bonds Payable $ 71,225,000 31,445,000 37,275,000 $ 65,395,000 $ 5,190,000

Deferred Premium on Refunding 2,058,976 2,712,512 327,512 4,443,976 451,514

Total Bonds Payable 73,283,976 34,157,512 37,602,512 69,838,976 5,641,514

Installment Purchase Debt 3,208,775 0 225,246 2,983,529 236,626

Total Bonds and Notes Payable 76,492,751 34,157,512 37,827,758 72,822,505 5,878,140

Other Liabilities:

Compensated Absences 1,110,854 0 419,623 691,231 0

Other Postemployment Benefit 40,514,346 13,660,065 2,103,188 52,071,223 0

Total Other Liabilities 41,625,200 13,660,065 2,522,811 52,762,454 0

Total Long-Term Liabilities $ ll8,117,951 $ 47,817,577 $ 40,.150,569 $ 125,584,959 $ 5,878,140

The General Fund has typically been used to liquidate long-term liabilities such as compensatedabsences.

-45-


NOTES TO FINANCIAL STATEMENTSJi7NE 30, 2015

NOTE 7. LONG-TERM DEBT. (CONTINUED)

Existing serial bond and note obligations are as follows:

Description of Issue

Bond 2006, Series A

Bond 2005, Series B

Serial Bonds, 2007

Serial Bonds, 2009

Serial Bonds, 2011

Refunding Series 2012





Installment Purchase Debt

Total Debt

Issue

Date

2006

2006

2007

2009

2011

2012

2012

2012

2013

2015

Final

Maturi

2036

2036

2037

2025

2037

2016

2016

2017

2024

2037

Interest

Rate Balance

4.250% - 4.375%

4.250% - 4.375%

4.00% - 4.50%

1.75% - 3.50%

2.50% - 4.00%

2.00%

4.00% - 5.00%

4.00% - 5.00%

2.00% - 5.00%

1.00% - 5.00°/a

The following is a summary of maturing debt service requirements:

155,000

590,000

665,000

12,390,000

5, 775, 000

80,000

65,000

3,120,000

11,110,000

31,445,000

$ 65,395,000

2,983,529

$ 68,378,529

Serial Bonds Installment Purchase Debt

For the Year Ended June 30, Principal Interest Principal Interest

2016 $ 5,190,000 $ 2,489,377 $ 236,626 $ 145,963

2017 5,265,000 2,239,481 248,581 134,008

2018 3,765,000 2,046,563 261,140 121.,449

2019 3,880,000 1,929,875 274,334 108,255

2020 4,050,000 1,789,613 288,194 94,395

2021 - 2025 21,155,.000 6,450,894 1,.674,654 238,291

2026 - 2030 9,315,000 2,986,425 0 0

2031 - 2035 9,865,000 1,277,744 0 0

2036 - 2039 2,910,000 74,837 0 0

TOTAL $ 65,395,000 $21,284,808 $ 2,983,529 $ 842,360

Cl.'~



NOTE 7. LONG-TERM DEBT. (CONTINUED)

On May 13. 2015, the District issued $31,445,000 in general obligation bonds with an averageinterest rate of approximately 2.839% to advance refund $32,250,000 of outstanding bondswith an average interest rate of 4.365%. The net proceeds of $33,973,483 (after payment of$199,528 in underwriting fees and other issuance costs) were used to purchase state and localgovernment securities. Those securities were deposited in an irrevocable trust with an escrowagent to provide for all future debt service payments on the bonds. As a result, the bonds areconsidered to be defeased, and the liability for those bonds has been removed from theDistrict's financial statements. The district advance refunded the bonds to reduce future debtservice requirements. The economic gain (loss) on the transaction (the difference between thepresent values of the debt service payments on the old and. new debt) is approximately$3,13 8,457.

Interest on long-term debt for the year was composed o£

Interest paid $ 2,963,290

Less: Interest accrued in the prior year (285,660)

Less: Amortization of premium and deferred amount -bond refunding (34,758)

Plus: Interest accrued in the current year 350,019

Total interest expense $ 2,992,891

NOTE 8. PENSION PLANS.

Pension Obli atg ions

New York State and Local Employees' Retirement System (ERS) and the New York StateTeachers' Retirement (TRS) (the Systems).

Plan Description &Benefits Provided

Teachers' Reti-cement Svstem (TRS)

The District. participates in the New York State Teachers' Retirement System (TRS). This is acost-sharing multiple-employer retirement system. The System provides retirement benefits aswell as, death and disability benefits to plan members and beneficiaries as authorized by theEducation Law and the Retirement and Social Security Law of the State of New York. TheSystem is governed by 10 member Board of Trustees. System benefits are established under NewYork State Law. Membership is mandatory and automatic for all full-time teachers, teachingassistance, guidance counselors and administrators employed in New York Public Schools andBOCES who elect to participate in TRS. Once a public employer elects to participate in theSystem, the elections is irrevocable. The New York State Constitution provides that pensionmembership is a contractual relationship and plan benefits cannot be diminished or impaired.Benefits can be changed for future members only by enactment of a State statue. Additionalinformation regarding the System, may be obtained by writing to the New York State Teachers'Retirement System, 10 Corporate Woods Drive, Albany, NY 12211-2395 or by referring to theNYSSTR Comprehensive Annual Financial report which can be found on the System's website atwww.nystrs.or~.

-47-



NOTE 8. PENSION PLANS. (Continued)

Emnlovees' Retirement Svstem (ERS

The District New York State and Local Employees' Retirement System (ERS). This is a cost-sharing multiple-employer retirement system. The System provides retirement benefits as well asdeath and disability benefits. The net position of the System is held in the New York StateCommon Retirement Fund (the Fund), which was established to hold all net assets and recordchanges in plan net position allocated to the System. The Comptroller of the State of New Yorkserves as the trustee of the Fund and is the administrative head of the System. System benefits areestablished under the provisions of the New York State Retirement and Social Security Law(RSSL). Once a public employer elects to participate in the System, the election is irrevocable.The New York State Constitution provides that pension membership is a contractual relationshipand plan benefits cannot be diminished or impaired. Benefits can be changed for future membersonly by enactment of a State statute. The District also participates in the Public Employees'Group Life Insurance plan (GLIP), which provides death benefits in the form of life insurance.The System is included in the State's financial report as a pension trust fund. That report,including information with regard to benefits provided, may be found atwww.osastate.ny.us/retire/publications/index.php or obtained by writing to the New York Stateand Local Retirement System, 110 State Street, Albany, NY 12244.

Contributions

The System is noncontributory except for employees who joined the New York State and LocalEmployees' Retirement System after July 27, 1976, who contribute 3 percent of their salary forthe first ten years of membership, and employees who joined on or after January 1, 2010 whogenerally contribute 3 to 3.5 percent of their salary for their entire length of service. In addition,employee contribution rates under ERS tier VI -vary based on a sliding salary computing theemployers' contributions based on salaries paid during the Systems' fiscal year ending March 31.For TRS, contribution rates are established annually by the New York State Teachers' RetirementBoard pursuant to Article 11 of the Education Law.

Contributions for the current year and two preceding years were equal to 100 percent of thecontributions required, and were as follows:

Year NYSTRS NYSERS

2014 - 2015 4,776,964 1,642,348

2013 - 2014 4,322,390 1,671,732

2012 - 2013 3,102,705 1,638,994

ERS has provided additional disclosures through entities that elected to participate in Chapter260, 57 and 105.

-48-




Pension Liabilities Pension Expense, and Deferred Outflows of Resources and Deferred Inflowsof Resources Related to Pensions

At June 30, 2015, the District reported the following asset/(liability) for its proportionate share ofthe net pension liability/(asset) for each of the Systems. The net pension asset/(liability) wasmeasured as of March 31, 2015 for ERS and June 30, 2014 for TRS. The total pensionasset/(liability) used to calculate the net pension assed(liability) was determined by an actuarialvaluation. District's proportion of the net pension assed(liability) was based on a projection of theDistrict's long-term share of contributions to the Systems relative to the projected contributionsof all participating members, actuarially determined. This information was provided by the ERSand TRS Systems in reports provided to the District.

At March 31, 2015, the District's proportion of the NYSERS net pension asset/(liability) was0.0304224%, there was no change in its proportion measured as of March 31, 2014.

At June 30, 2014, the District's proportion of the NYSTRS net pension asset/(lfability) was0.179922%, which was a decrease of 0.176529% from its proportion measured as of June 30,2013.

For the year ended June 30, 2015, the District's recognized pension expense of $957,948for ERS and the actuarial value ($787,774) far TRS. At June 30, 2015 the District's reporteddeferred outflows of resources and deferred inflows of resources related to pensions for thefollowing sources:

Differences between effected and actual

experience

Changes of Assumptions

Net difference between projected and actual

earnings on pension plan investments

Changes in proportion and difference between

the District's contributions and proportionate

share of contributions

District's contributions subsequent to the

measurement date

Total

Deferred Outflowsor Resources

ERS TRS Total

$ 32,899 $ - $ 32,899

178,506 - 178,506

111,324 - 111,324

451,544 4,803,186 5,254,730

$ 774,273 $ 4,803,186 $ 5,577,459

-49-

MIl~IISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII,L, NEW YORK



Differences between expected and actual

e~erience

Changes of Assumptions

Net difference between projected and actualearnings on pension plan investments

Changes in proportion and difference between

the District's contributions and proportionate

share of contributions

District's contributions subsequent to themeasurement date

Total

Deferred Inflows

or Resources

ERS TRS Total

$ - $ 293,080 $ 293,080

- 13,460,485 13,460,485

- 20,008 20,008

$ - $ 13,773,573 $ 13,773,573

District contributions subsequent to the measurement date which will be recognized as areduction of the net pension liability in the year ended June 30, 2016. Other amounts reported asdeferred outflows of resources and deferred inflows of resources related to pensions will berecognized in pension expense as follows:

Year Ended: ERS TRS2015 $ - $3,401,5272016 80,682 3,401,527

2017 80,682 3,401,5272018 80,682 3,401,5272019 80,682 36,406

Thereafter - 131,060

Actuarial Assumptions

The total pension liability as of the measurement date was determined by using an actuarialvaluation as noted in the table below, with update procedures used to roll forward the totalpension liability to the measurement date. The actuarial valuation used the following actuarialassumptions.

-50-




Actuarial Assumptions

Significant actuarial assumptions used in the valuations were as follows:

Measurement Date

Inflation Rate

Projected Salary Increases

Investment Rate of Return

Decrement Tables

Mortality Improvement

ERSMarch 15, 2015

2.7%

TRSJune 30, 2014

3.0%

4.9% 4.01% - 10.91%Rates of increase differ based

on age and gender. Calculationshave been based upon recentNYSTRS member experience

7.50%compounded annually,

net of investment eaLpenseincluding inflation

April 1, 2005 -

March 31, 2010System's Experience

Society of ActuariesScale MP-2014

Age Female Male25 10.35% 10.91%~5 6.26% 627%45 539% 5.04%55 4.42% 4.01%

8.00%compounded annually, net ofnet of investment e~ense

including inflation

July 1, 2005 -June 30, 2010

System's E~erience

Society of ActuariesScale AA

The long term expected rate of return on pension plan investments was determined in accordancewith Actuarial Standard of Practice (ASOP) No. 27, Selection of Economic Assumptions forMeasuring Pension Obligations. ASOP No. 27 provides guidance on the selection of anappropriate assumed investment rate of return (expected returns, net of pension plan investmentexpense and inflation) for each major asset class as well as historical investment data. and planperformance.

-51-




Actuarial Assumptions (Continued)

Best estimates of arithmetic real rates of return fox each major asset class included in the targetasset allocation are summarized below:

ERS `IRS

Measurement Date March 15,2015 Measurement Date June 30, 2014

bong-term Long-termeffected Tazget expected

Target real rate of Allocatio real rate ofAllocation return n return

Asset. Class: Asset Class:Domestic Equity 38% 7.30% Domestic Equities 37% 7.30%International Equity 13% 8.55% International Equities 18% 8.50%Private Equity 10% 11.00% Real Estate 10% 5.00%Real Estate 8% 8.25% Alternative investments 7% 11.00%Absolute Return Strategies 3% 6.75% Domestic fixed income securities 18% 1.50%Opportunistic Portfolio 3% 8.60% Global fixed income securities 2% 1.40%Real Assets 3% 8.65% Mortgages 8% 3.40%Bonds and Mortgages l 8% 4.00% Short-term 0% 0.80%Cash 2% 2.25%Inflation-indexedbonds 2% 4.00% Total 100%

Total 100°/o

Discount Rate

The discount rate used to calculate the total pension liability was 7.5% for ERS and 8.0% forTRS. The projection of cash flows used to determine the discount rate assumes that contributionsfrom plan members will be made at the current contribution rates and that contributions fromemployers will be made at statutorily required rates, actuarially. Based upon the assumptions, theSystem's fiduciary net position was projected to be available to make all projected future benefitpayments of current plan members. Therefore the long term expected rate of return on pensionplan investments was applied to all periods of projected benefit payments to determine the totalpension liability.

Sensitivity of the Proportionate Share of the Net Pension Liability to the Discount RateAssumption

The following presents the District's proportionate share of the ERS and TRS net pension liabilitycalculated using the discount rates referred to above, as well as what the District's proportionateshare of the net pension asset/(liability) would be if it were calculated using a discount rate that is1-percentage-point lower or 1-percentage-point higher than the current rate referred to above:

-52-


NOTES TO FINANCIAL STATEMENTSJUNE 30. 2015


Actuarial Assumptions (Continued)

1 % Current 1

Decrease Assumption Increase

ERS 6.50% 7.50% 8.50%

Employer's Proportionate Share

of the Net Pension Asset/(Liability) $ (6,850,350) $ (1,027,743) $ 3,887,981

1 % Current 1

Decrease Assumption Increase

TRS 7.00% 8.00% 9.00%

Employer's Proportionate Share

of the Net Pension Asset/(Liability) 432,3.17 20,042,154 36,752,442

Pension plan fiduciary net position

The components of the current-year net pension liability of the employers as of March 31, 2015,were as follows:

Measurement Date

Employers' total pension asset/(liability)

Plan net position

Employer's net pension asset/(liability)

Ratio of plan net position to the

employers' total pension assetl(liability)

Parables to the Pension Plan

(Dollars in Thousands)ERS TRS

March 15, 2015 June 30, 2014

$ (164,591,504) $ (97,015,707)

161,213,259 108,155,083

$ (3,378,245) $ 11,139,376

97.95% 111.48%

For ERS, employer contributions are paid annually based on the System's fiscal year whichends on March 31~`. Accrued retirement contributions as of June 30, 2015 represent theprojected employer contributions for the period of April 1, 2015 through June 30, 2015 based onpaid ERS wages multiplied by the employer's contribution rate, by tier. Accrued retirementcontributions as of June 30, 2015 amounted to $451,544.

For TRS, employer and employee contributions for the fiscal year ended June 30, 2015 are paidto the System in September, October and November 2015 through state aid intercept. Accruedretirement contributions as of June 30, 2015 based on TRS wages multiplied by the employer'scontribution rate, by tier and employee contributions for the fiscal year as reported to the TRSsystem. Accrued retirement contributions as of June 30, 2015 amounted to $ 4,949,910.

-53-



NOTE 9. INTERFUND BALANCES AND ACTNITY.

Interfund balances and activity for the year ended June 30, 2015, were as follows:

Interfund Interfund

Receivable Payable Revenues Expenditures

General Fund $ 1,513,705 $ 150,000 $ 0 $ 228,403

Special Aid Fund 0 928,295 228,403 0

School Lunch Fund 0 0 0 0

Capital Fund 0 124,359 0 0

Debt Service Fund 1,551 0 0 0

Total Governmental Activities 1,515,256 1,202,654 228,403 228,403

Fiduciary Agency Fund 0 312,602 0 0

Totals $ 1,515,256 $ 1,515,256 $ 228,403 $ 228,403

Interfund receivables and payables, other than between governmental activities and fiduciaryfunds, are eliminated on the Statement of Net Position. The District typically loans resourcesbetween funds for the purpose of mitigating the effects of transient cash flow issues. All

interfund payables are expected to be repaid within one year.

The District typically transfers from the General Fund to the Special Aid Fund to fund theportion of the Summer Handicapped Program not funded by aid from New York State.

NOTE 10. POST-EMPLOYMENT BENEFITS.

The District provides post-employment health insurance (life insurance, etc.) coverage toretired employees in accordance with the provisions of various employment contracts. The

benefit levels, employee contributions and employer contributions are governed by the

District's contractual agreements.

The District implemented GASB Statement #45, Accounting and Financial Reporting byemployers for Postemployment Benefits Other than Pensions, in the school year ended June 30,

2009. This required the District to calculate and record a net other post-employment benefit

obligation at year-end. The net other post-employment benefit obligation is basically the

cumulative difference between the actuarially required contribution and the actual contributions

made.

The District recognizes the cost of providing health insurance annually as expenditures in the

General Fund of the funds financial statements as payments are made. For the year ended June

30, 2015, the District recognized $2,103,188 for its share of insurance premiums for currently

enrolled retirees.

The District has obtained an actuarial valuation report as of July 1, 2014. The total liabilityindicated in this report for other post-employment benefits as of June 30, 2015 made by thedistrict is $52,071,223, which is reflected in the Statement of Net Position.

-54-



NOTE 10. POST-EMPLOYMENT BENEFITS. (CONTINUED)

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 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 thirty years. The following table shows the

components of the District's annual OPEB cost for the year, the amount actually contributed to

the plan, and changes in the District's net OPEB obligation:

Annual Required Contribution

Interest on Net OPEB Obligation

Amortization of Net OPEB Obligation

Annual OPEB Cost (Expense)

Contributions Made

Increase in Net OPEB Obligation

Net OPEB Obligation -Beginning of Year

Net OPEB Obligation -End of Year

14,324,157

1, 823,146

(2,487,238)

13,660,065

(2,103,188)

11,556,877

40,514,346

$ 52,071,223

The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan,

and the net OPEB obligation for 2015 and two preceding years were as follows:

Percentage of

Annual OPEB Cost Net OPEB

Fiscal Year Ended Annual OPEB Cost Contributed Obligation

6/30/2015 $ 13,660,065 15.4% $ 52,071,223

6/30/2014 11,242,502 16.5% 40,514,346

6/30/2013 10,610,832 20.3% 31,207,170

Funded Status and Fundin~gr~.

Funded Status and Funding Progress. As of July 1, 2014, the most recent actuarial valuation

date, the plan was 0% funded. The actuarial accrued liability for benefits was $136,916,993,

and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability

(UAAL) of $136,916,993. 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. Examples include assumptions about future employment, mortality, and the

healthcare cost trend. Amounts determined regarding the funded status of the plan and the

annual required contributions of the employer are subject to continual revision as actual results

are compared with past expectations and new estimates are made about the future.

-55-

MINISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII.,L, NEW YORK


NOTE 10. POST-EMPLOYMENT BENEFITS. (CONTINUED)

Actuarial Methods and Assumptions.

Projections of benefits for financial reporting purposes are based on the substantive plan (theplan as understood by the employer and the plan members) and include the types of benefitsprovided at the time of each valuation and the historical pattern of sharing of benefit costsbetween the employer and plan members to that point. The actuarial methods and assumptionsused include techniques that are designed to reduce the effects of short-term volatility inactuarial accrued liabilities and the actuarial value of assets, consistent with the long-termperspective of the calculations.

The actuarial assumptions included a 4.5% investment rate of return, net of administrativeexpenses on the employer's own investments calculated based on the funded level of the plan atthe valuation date, and an annual healthcare cost trend rate of for pre-65 claims 7.7% initially,reduced by decrements to an ultimate rate of 5% after 9 years. The annual healthcare cost trendrate for post-65 claims begins at 7.0%, and decreases to 5%after 9 years. The UAAL is beingamortized as a level percentage of projected payrolls on an open basis. The remainingamortization period at June 30, 2015, ranged from 24 to 30 years.

NOTE 1 L RISK MANAGEMENT.

General Information

The District is exposed to various risks of loss related to torts, theft, damage, injuries, errorsand omissions, natural disasters, and other risks. These risks are covered by commercialinsurance purchased from independent third parties. Settled claims from these risks have notexceeded commercial insurance coverage for the past two years.

Pool, Non-Risk Retained

The District participates in the Orange/Ulster District Health Plan, anon-risk-retained publicentity risk pool for its employee health and accident insurance coverage. The pool is operatedfor the benefit of 29 individual governmental units located within the counties. The SchoolDistrict pays an annual premium to the Plan for this health insurance coverage. The plan isconsidered aself-sustaining risk pool that will provide coverage for its members and theMinisink Valley Central School District has essentially transferred all related risk to theFund/PooUPlan.

NOTE 12. COMNIITMENTS AND CONTINGENCIES.

The District has received grants, which are subject to audit by agencies of the state and federalgovernments. Such audits may result in disallowances and a request for a return of funds.Based on prior years' experience, the District's administration believes disallowances, if any,will be immaterial.

-56-



NOTE 12. COMMITMENTS AND CONTINGENCIES. (CONTINUED)

There are currently pending certiorari proceedings, the results of which could require thepayment of future taY refunds by the School District if existing assessments rolls are modifiedbased on the outcome of the litigation proceedings. However, the amount of these possiblerefunds cannot be determined at the present time. Any payments resulting from adversedecisions will be funded in the year the payment is made.

Encumbrances represent contracts, purchase orders, payroll commitments, tax payables, orlegal penalties that are chargeable to an account. They cease to be encumbrances when paid orwhen the actual liability amount is determined and recorded as an expenditure. Encumbrancesof appropriations of budgets for the year ended June 30, 2015 have been included in theassigned fund balances of the following fund as of June 30, 2015:

General Fund $ 1,793,857

Total Encumbrances $ 1,793,857

NOTE 13. OPERATING LEASES.

The District leases equipment and property under operating leases. Rental expense for the yearended June 30, 2015 was $30,729.

Minimum annual rentals for each of the remainder of the lease are:

For the Year Ended June 30,2016 $ 30,7292017 30,7292018 1.4,858

NOTE 14. DONOR-RESTRICTED ENDOWMENTS.

The District administers endowment funds, which are restricted by the donor for the purposeof student scholarships and awards.

The District authorizes expenditure from donor restricted endowments in compliance with thewishes expressed by the donor, which varies among the unique endowments administered bythe district.

NOTE 15. FUND BALANCE.

Portions of fund balances are reserved and not mailable for current expenses or expenditures,as reported in the Governmental Fund Balance Sheet.

-57-

MINISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HR„L, NEW YORK


NOTE 16. RESTATEMENT.

Restatement of Net Position

For the fiscal year ended June 30, 2015, the District implemented GASB Statement No. 68Accounting and Financial Reporting for Pensions —Amendment to GASB Statement No. 27.The implementation of Statement No. 68 resulted in the reporting of an asset, deferred outflowof resources, liability and deferred inflow of resources related to the District's Participation inthe New York State Teachers' and Employees' retirement systems. The District's net positionhas been restated as follows:

Net Positon Beginning of Year, as previously Stated $ 4,400,720

GASB Statement No. 68 Implementation

Beginning System Asset -Teachers' Retirement System 1,162,006Beginning System Liability -Employees' Retirement System (1,374,745)Beginning Deferred Outflow of Resources for ContributionsSubsequent to the Measurement Date

Teachers' Retirement System 4,318,801Employees' Retirement System 436,876

Net Position Beginning of Year, As Restated $ 8,943,658

NOTE 17. SUBSEQUENT EVENTS.

Management has evaluated subsequent events through October 13, 2015, the date the financialstatements were available to be issue. The following subsequent event has been identified:The District issued bus bonds in the amount of $2,663,937 to replace its maturing bus BANwith a net interest cost of 1.035%.

-5 8-

SUPPLEMENTAL SCHEDULE # 1


SCHEDULE OF FUNDING PROGRESS FOR OTHER POSTEMPLOYMENT BENEFITSFOR THE YEAR ENDED JUNE 30, 2015

ActuarialAccrued UAAL as a

Actuarial Liability Unfunded PercentageActuarial Value of (AAL) - AAL Funded Covered of CoveredValuation Assets Entry Age (UAAL) Ratio Payroll Payroll

Date (a) (b) (b - a) (a / b) (c) ((b - a) / c)

7/1/2014 $ 0 $ 136,916,993 $ 136,916,993 0.00% $ 33,090,519 413.8%7/1/2012 0 105,503,682 105,503,682 0.00% 32,379,462 325.8%7/1/2010 0 72,619,061 72,619,061 0.00% 31,883,399 227.8%

In accordance with GASB Statement 45, the District is required to have an actuarial valuation done biennially.Rolled over valuations are prepared for the years that full actuarial valuations are not completed.

See paragraph on supplementary schedules included in auditor's report.

-59-

SUPPLEMENTAL SCHEDULE #2



SCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -GENERAL FUND


REVENUES

LOCAL SOURCES:

Real Property Ta

kes

Othe

r Ta

ac Ite

msNon Property Ta

xes

Char

ges for Services

Use of Money &Pr

oper

tySa

le of Pr

operty &Compensation for

Los

sMi

scel

lane

ous

STATE SOURCES

FEDERAL SOURCES

OTHER SOURCES:

Oper

atin

g Tr

ansf

ers In

TOTAL REVENUES

APPROPRIATED FUND BALANCE

TOTAL REVENUES &

APPROPRIATED FUND BALANCE

CURRENT

ORIGINAL

FINAL

YEAR'S

OVER (UNDER)

BUDGET

BUDGET

REVENUES

REVISED BUDGET

$

37,984,804

$

37,984,804

$

38,034,093

$

49,2

895,

413,

100

5,413,100

5,71

8,87

030

5,77

00

00

012

0,50

012

0,50

0168,656

48,156

30,000

30,000

22,3

28(7

,672

)30,000

30,000

176,

063

146,

063

350,133

350,133

I ,131,681

781,548

39,289,846

39,289,846

40,4

34,9

281,145,082

100,

000

100,

000

107,

204

7,20

4

00

00

83,3

18,3

8383,318,383

$

85,793,823

$

2,47

5,44

0

9,543,000

9,543,000

$

92,8

61,3

83

$

92,8

61,3

83

See pa

ragr

aph on

supplementary sch

edul

es included

in aud

itor

's rep

ort.

-60-



(CONTINUED)


SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -GENERAL FUND (CONTINUED)


ORIGINAL

BUDGET

CURRENT

FINAL

YEAR'S

UNENCUMBERED

BUDGET

EXPENDITURES

ENCUMBRANCES

BALANCE

EXPENDITURES

GENERAL SUPPORT:

Boar

d of Edu

cati

on

$

34,007

$

34,007

$

14,985

$

0

$

19,022

Central Ad

mini

stra

tion

503,600

513,450

508,756

327

4,367

Fina

nce

642,062

669,257

645,

259

706

23,292

Staf

f37

0,75

1372,071

309,

159

28,4

7334,439

Cent

ral Se

rvic

es5,

634,

364

5,62

4,21

04,

575,

523

65,1

44983,543

Spec

ial It

ems

1,13

0,38

61,

107,

486

1,00

8,48

80

98,9

98

INSTRUCTIONAL:

Instruction, Adm

inis

trat

ion &Improvement

1,99

2,86

02,

015,

723

1,949,940

065

,783

Teaching -Re

gula

r Sc

hool

23,0

02,0

5222

,960

,326

20,879,598

243,

286

1,83

7,44

2

Programs for Chi

ldre

n with Handicapping Conditions

16,365,342

15,3

67,4

0014

,657

,885

260,

536

448,979

Occu

pati

onal

Edu

cati

on2,

101,

131

2,10

1,13

11,494,015

060

7,11

6

Teaching -Special Sc

hool

s78

1,89

086

0,93

872

3,14

50

137,

793

Inst

ruct

iona

l Media

1,38

7,59

11,399,539

1,22

5,03

869

,819

104,682

Pupi

l Se

rvic

es2,

745,

503

2,773,135

2,50

0,09

929

,286

243,750

PUPIL TRANSPORTATION

5,25

6,63

66,346,661

4,48

5,09

11,

025,

780

835,

790

COMMUNITY SERVICES

500

14,738

14,2

370

501

EMPLOYEE BENEFITS

22,0

14,4

8421,815,087

18,7

95,7

9670

,500

2,94

8,79

1

DEBT SERVICE:

Debt

Service -Principal

5,64

3,64

25,

643,

642

5,64

3,64

2U

0

Debt

Service -In

tere

st3,

029,

582

3,01

7,58

22,

982,

582

035,000

TOTAL EXPENDITURES

92,636,383

92,636,383

82,4

13,2

381,

793,

857

8,42

9,28

8

OTHER USES:

Oper

atin

g Tr

ansf

ers Out

225,000

225,000

228,

403

0(3

,403

)

TOTAL EXPENDITURES &OTHER USES

$

92,861,383

$

92,861,383

82,6

41,6

41

$

1.,793,857

$

8,425,885

EXCESS OF REVENUES &OTHER SOURCES

OVER EXPENDITURES &OTHER USES

$

3,15

2,18

2

See pa

ragr

aph on sup

plem

enta

ry sch

edul

es included

in auditor's report.

-6 I -



SCHEDULE OF THE DISTRICT'S PROPORTIONATESHARE OF THE NET PENSION LIABILITYFOR THE YEAR ENDED Ji1NE 30, 2015

NYSERS Pension PlanLast 10 Fiscal Years*

District's proportion of the net pension asset/(liability)

District's proportionate share of the net pension asset/(liability)

District's covered-employee payroll

District's proportionate share of the net pension asset/(liability)as a percentage of its covered-employee payroll

Plan fiduciary net position as a percentage ofthe total pension liability

NYSTRS Pension PlanLast 10 Fiscal Years*

District's proportion of the net pension asset/(liability)

District's proportionate share of the net pension asset/(liability)

District's covered-employee payroll

District's proportionate share of the net pension asset/(liability)as a percentage of its covered-employee payroll

Plan fiduciary net position as a percentage ofthe total pension liability

3/31 /2015

0.0304224%

(1,027,743)

7,905,074

-1 3.00%

97.95%

6/30/2014

0.179922%

20,042,154

26,586,932

75.38%

1 1 1.48%

* GASB 68 requires that the past 10 years of information be presented. Due to the fact that thiswas the year of implementation prior year information is not available for ] 0 years. The data willbe accumulated over time and presented according to GASB 68.


-62-

3/31 /2014

0.0304224°/~

(1,374,745)

8,298,551

-16.57°/v

97.15%

6/30/2013

0.176529°/,

1,162,006

26, ] l 6,313

4.45%

100.70%



SCHEDULE OF DISTRICT CONTRIBUTIONSFOR THE YEAR ENDED JUNE 30, 2015

NYSERS Pension PlanLast 10 Fiscal Years*

Contractually required contribution

Contributions in relation to the contractuallyrequired contribution

Contribution deficiency (excess)

Covered Employee Payroll

Contributions as a percentage of itscovered-employee payroll

NYSTRS Pension PlanLast 10 Fiscal Years*

Contractually required contribution

Contributions in relation to the contractuallyrequired contribution

Contribution deficiency (excess)

Covered Employee Payroll

Contributions as a percentage of itscovered-employee payroll

3/31/2015 3/31/2014

$ 1,627,679 $ 1,346,651

1,627,679 1,346,651

$

-

$

-

7,905,074

20.59%

6/30/2014

8,298,551

16.23%

6/30/2013

$ 4,318,801 $ 3,061,543

4,318,801 3,161,543

$

-

$

26,586,932 26,116,313

l 6.24% 11.72%

* GASB 68 requires that the past 10 years of information be presented. Due to the fact that thiswas the year of implementation prior year information is not available for 10 years. The data willbe accumulated over time and presented according to GASB 68.


-63-

SUPPLEMENTAL SCHEDULE #3MINISINK VALLEY CENTRAL SCHOOL DISTRICT

SLATE HILL, NEW YORKSCHEDULE OF CHANGE FROM ADOPTED BUDGET TO FINAL BUDGET AND

THE REAL PROPERTY TAX LIMITFOR THE YEAR ENDED JUNE 30, 2015

CHANGE FROM ADOPTED TO FINAL BUDGET

ADOPTED BUDGET

ADDITIONS:Encumbrances from Prior Year

ORIGINAL BUDGET

FINAL BUDGET

SECTION 1318 OF REAL PROPERTY TAX LAW LIMIT CALCULATION

2015-2016 Voter-approved expenditure budget maximum allowed(4% of 2015-2016 budget $94,160,154)

General Fund -Fund Balance Subject to Section 1318 of Real Property Tax LawUnrestricted Fund Balance:Assigned Fund BalanceUnassigned Fund BalanceTotal Unrestricted Fund Balance

Less:

$ 8,853,95111,753,07920,607,030

Appropriated Fund Balance 7,060,094Encumbrances Included in Committed and Assigned Fund Balance 1,793,857Total Adjustments $ 8,853,951

General Fund -Fund Balance Subject to Section ] 318 of Real Property Tax Law

Actual Percentage


-64-

$ 92,317,143

544,240

92,861,383

$ 92,861,383

$ 3,766,406

$ 1 ] ,753,079

12.48%

SUPPLEMENTAL SCHEDULE#4


SLATE HILL. NEW YORK

SCHEDULE OF CAPITAL PROJECTS FUND -PROJECT EXPENDITURES AND FINANCING RESOURCES

FOR THE YEAR ENDED JUNE 30,

2015

ORIGINAL

APPROPRIATION

REVISED

APPROPRIATION

EXPENDITURES TO DATE

PRIOR

CURRENT

YEARS

YEAR

TOTAL

UNEXPENDED

BALANCE

PROCEEDS

FROM DEBT

METHODS OF FINANCING

STATE

LOCAL

AID

SOURCES

TOTAL

FUND

BALANCE

JUNE 30, 2015

Hand

icap

ped Renovations

$

25,0

00$

9,49

0 $

0$

0

~0

$

9,49

0$

0$

0$

9,490

$

9,490

$

9,490

Asbestos Pro

ject

400,

000

400,000

00

040

0,00

00

00

00

Storage Building

27,0

0054

,000

37,228

037,228

16,7

720

054

,000

54,0

0016,772

Otisville Pl

umbing

125,000

125,

000

105,775

0105,775

19,225

00

125,

000

125,000

19,225

Plumbing/Boiler-Otisville

60,0

0060,000

00

060,000

00

60,0

0060

,000

60,0

00

Addi

tion

to St

orag

e Building/Maintenance Eq.

10,000

10,000

8,954

08,954

1,04

60

010

,000

10,000

1,04

6

Upgrade Eadsting "I

'eanis Cou

rts

30,000

30,000

00

030

,000

00

30,000

30,000

30,000

Audi

tori

um and

Access Road

916,

340

916,340

912,

783

091

2,78

33,

557

916,340

00

916,

340

3,557

High School Sewer Sh

ed Roof

52,844

52,844

33,3

280

33,328

19,5

160

052

,844

52,844

19,5

16

Health &Sa

fety

Imp

rove

ment

s - H.S.

221,

660

221,660

186,751

018

6,75

734,903

00

221,

660

221,

660

34,9

03

Bus Ga

rage

Reconstruction

54,286

54,286

51,608

0S I ,60

82,

678

00

54,286

54,2

862,

678

Middle Sc6001 Improvements

18,367,000

16,4

00,0

0016

,.14

8,98

10

16,1

48,9

8125

1,01

916,400,000

00

16,4

00,0

00251,019

High School Im

prov

emen

ts1,

333,

000

350,000

295,

225

029

5,22

554

,775

350,000

00

350,000

54,775

Gym Door Pa

rtir

ion

33,600

33,600

33,600

033,600

00

00

0(33,600)

Bus Pw

chas

e385,000

385,000

381,940

0381,940

3,06

00

0385,000

385,000

3,06

0

Elem

enta

ry-I

ntec

medi

ateS

choo

l Alterations

1,95

0,00

01,

950,

000

1,945,719

01,

945,

719

4,28

11,

950,

000

00

1,95

0,00

04,281

New Otisville School

37,625,000

37,625,000

37,623,026

037

,623

,026

1,97

437,625,000

00

37,6

25,0

001,974

Pole

Bazn

235,

050

235,050

230,

263

023

0,26

34,787

00

235,

050

235,

050

4,78

7

Cond

itio

n Survey

90,000

90,0

0092

,863

092

,863

(2,8

63)

00

90,000

90,000

(2,8

63)

Midd

le School Si

te0

2,20

0,00

02,

006,

064

02,

006,

064

]93,936

2,200,000

00

2,20

0,00

019

3,93

6

High School Si

te0

300,

000

203,

924

020

3,92

496

,076

300,000

00

300,000

96,0

76

Elementary/IntecmediateExcel

13,1

OQ00

010,738,514

10,012,026

010,012,026

726,

488

10,100,000

483,622

010,583,622

571,596

High School Excel

5,764,000

5,531,695

4,630,377

04,630,377

901,318

4,60

0,00

023

0,02

30

4,830,023

199,

646

Middle School Excel

3,668,000

3,773,228

2,52

5,25

00

2,52

5,25

01,247,978

2,500,000

103,

218

02,

603,

218

77,9

68

Otisville Excel

262,

000

00

00

00

00

00

Bus Ga

zage

Excel

3,406,000

4,$56,563

2,28

1,60

60

2,28

1,60

62,574,957

6,70

0,00

00

06,700,000

4,418,394

New Bus

Gaza

ge-E

xcel

00

4,29

8,13

20

4,29

8,13

2(4,298,132)

00

00

(4,298,132)

Elem

enta

ryll

nter

medi

ate Ex

cel -Phase II

060

2,43

221

6,25

046

7,86

368

4,11

3(81,681)

00

00

(684,113)

High

School Excel -Phase II

0603,826

224,443

286,

803

511,246

92,580

00

00

(511,246)

Middle School Excel -Phase Il

093

,742

12,5

41(12,541)

093

,742

00

00

0

Elem

enta

ry/[

nter

medi

ate Excel -Phase 3

00

00

00

00

00

0

High School Excel-Phase 3

00

6,566

156,

378

162,

944

(162,944)

00

00

(162,944)

Middle School Exce] -Phase 3

00

10,7

7235

8,65

636

9,42

8(369,428)

00

00

(369,428)

Exce

l Ph

ase 3 Sewer

00

5,15

9259,998

265,157

(265,157)

00

00

(265,157)

HS Rec

onst

ruct

ive Li

ghti

ng45

0,00

045

0,00

032

1,85

60

321,

856

128,

144

450,

000

00

450,

000

128,144

ES/I

S Energy Performance Con

trac

t1,

298,

970

1,298,970

1,35

7,24

40

1,35

7,24

4(58,274)

1,29

8,97

00

01,

298,

970

(58,274)

Tran

spor

tati

on Energy Pe

rfor

manc

e Contract

21,649

21,649

2,140

02,

140

19,509

21,649

00

21,649

19,509

MS Ene

rgy Performance Contras

931,744

931,

744

889,566

08$9,566

42,178

931,744

00

931,

744

42,178

HS Energy Pe

rfor

manc

e Co

ntra

ct1,608,463

1,608.463

1,611,876

01,611,876

(3,4

13)

1,608,463

00

1,608,463

(3,4

13)

Buses-2

013

1,54

3,39

72,

879,

132

2,871,894

02,

871,

894

7,23

80

00

0(2,871,894)

Buses-2014

1,05

7,26

81,

057,

268

01,057,268

1,05

7,26

80

00

393,396

393,396

(663

,872

)~

95,052,271

$

95,9

49,4

96 $

91,5

75,7

36$

2,57

4,42

5 $

94,1

50,1

61$

1,799,335

$

87,9

52,1

66$

816,

863

$

1,720,726

$

90,489,755

$

(3,660,406)

See para~aph on supplementary schedules in

clud

ed in au

dito

rs rep

ort.

_(5_

SUPPLEMENTAL SCHEDULE #5MINISINK VALLEY CENTRAL SCHOOL DISTRICT

SLATE HILL, NEW YORKINVESTMENT IN CAPITAL ASSETS, NET OF RELATED DEBT


CAPITAL ASSETS, NET

ADD:Deferred Amount on Refunding

DEDUCT:

Bond Anticipation Note

Short-term Portion of Bonds Payable

Long-term Portion of Bonds Payable

Short-term Portion of Installment Debt

Long-term Portion of Installment Debt

Total Bonds and Notes Payable

Less: Unspent Bond Proceeds

Related Debt

INVESTMENT IN CAPITAL ASSETS, NET OF RELATED DEBT

$ 3,542,497

5,641,514

64,197,462

236,626

2,746,903

76,365,002

(3,825,420)


-66-

$ 94,008,701

2,682,62796,691,328

(72,539,582)

$ 24,151,746

nugent ~ Haeussler, P.C.CERTIFIED PUBLIC ACCOUNTANTSESTABLISHED 1925

I1~TDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVERFINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERSBASED ONAN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED INACCORDANCE WITH GOVERNMENTAUDITINGSTANDARDS


Report on the Financial Statements

101 Bracken RoadMontgomery, New York 12549Tel (845) 457-1100Fax (845) 457-1160e-mail: [email protected]


Patrick M. Buliis, CPARichard P. Capicchioni, CPAWalter J. Jung, CPAJustin B. Wood, CPA

We have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States, the financial statements of the governmentalactivities, each major fund, and the aggregate remaining fund of Minisink Valley Central School District,as of and for the year ended June 30, 2015, and the related notes to the financial statements, whichcollectively comprise the Minisink Valley Central School District's basic financial statements and haveissued our report thereon dated October 13, 2015.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered Mmisink Valley CentralSchool District's internal control over financial reporting (internal control) to determine the auditprocedures that are appropriate in the circumstances for the purpose of expressing our opinions on thefinancial statements, but not for the purpose of expressing an opinion on the effectiveness of MinisinkValley Central School District's internal control. Accordingly, we do not express an opinion on theeffectiveness of Minisink Valley Central School District's internal control.

A deficiency in internal control exists when the design or operation of control does not allowmanagement or employees, in the normal course of perfor►ning their assigned functions, to prevent, ordetect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combinationof deficiencies, in internal control such that there is a reasonable possibility that a material misstatementof the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Asignificant deficiency is a deficiency, or a combination of deficiencies, in internal control that is lesssevere than a material weakness, yet important enough to merit attention by those charged withgovernance.

Our consideration of internal control was for the limited purpose described in the first paragraph of thissection and was not designed to identify all deficiencies in internal control that might be materialweaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify anydeficiencies in internal control that we considered to be material weaknesses. However, materialweaknesses may exist that have not been identified.

-67-

MEMBERS: NEW YORK STATE SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS •AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

To the President and Membersof the Board of Education of theMinisink Valley Central School District

Compliance and Other Matters

Page 2

As part of obtaining reasonable assurance about whether Minisink Valley Central School District'sfinancial statements are free of material misstatement, we performed tests of its compliance with certainprovisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have adirect and material effect on the determination of financial statement amounts. However, providing anopinion on compliance with those provisions was not an objective of our audit, and accordingly, we donot express such an opinion. The results of our tests disclosed no instances of noncompliance or othermatters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and complianceand the results of that testing, and not to provide an opinion on the effectiveness of the entity's internalcontrol or on compliance. This report is an integral part of an audit performed in accordance withGovernment Auditing Standards in considering the entity's internal control and compliance.Accordingly, this communication is not suitable for any other purpose.

~~ ~` , ~~.


-68-

l~Iugent ~ Haeussler, P.C.CERTIFIED PUBLIC ACCOUNTANTSESTABLISHED 1925

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOREACH MAJOR PROGRAM AND ON INTERNAL CONTROLOVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133


Report on Compliance for Each Major Federal Pro ram

101 Bracken RoadMontgomery, New York 12549Tel (845) 457-1100Fax (845) 457-1160e-mail: nh~nhcpas.com


Patrick M. Bullis, CPARichard P. Capicchioni, CPAWalter J. Jung, CPAJustin B. Wood, CPA

We have audited Minisink Valley Central School District's compliance with the types of compliancerequirements described in the U.S. Office of Management and Bud eft (OMB) Circular A-133Compliance Supplement that could have a direct and material effect on each of Minisink Valley CentralSchool District's major federal programs for the year ended June 30, 2015. Minisink Valley CentralSchool District's major federal programs are identified in the summary of auditor's results section of theaccompanying schedule of findings and questioned costs.

Management's Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts, andgrants applicable to its federal programs.


Our responsibility is to express an opinion on compliance for each of Minisink Valley Central SchoolDistrict's major federal programs based on our audit of the types of compliance requirements referred toabove. We conducted our audit of compliance in accordance with auditing standards generally acceptedin the United States of America; the standards applicable to financial audits contained in GovernmentAuditing 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 OM CircularA-133 require that we plan and perform the audit to obtain reasonable assurance about whethernoncompliance with the types of compliance requirements referred to above that could have a direct andmaterial effect on a major federal program occurred. An audit includes examining, on a test basis,evidence about Minisink Valley Central School District's compliance with those requirements andperforming 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 majorfederal program. However, our audit does not provide a legal determination of Minisink Valley CentralSchool District's compliance.

Opinion on Each Major Federal Program

In our opinion, Minisink Valley Central School District, complied, in all material respects, with the typesof compliance requirements referred to above that could have a material effect on each of its majorfederal programs for the year ended June 30, 20l 5.

-69-


To the President and Membersof the Board of Education of theMinisink Valley Central School District

Report on Internal Control Over Compliance

Page 2

Management of Minisink Valley Central School District is responsible for establishing and maintainingeffective internal control over compliance with requirements referred to above. In planning andperforming our audit of compliance, we considered Minisink Valley Central School District's internalcontrol over compliance with the requirements that could have a direct and material effect on a majorfederal program to determine the auditing procedures that are appropriate in the circumstances for thepurpose of expressing an opinion on compliance for each major federal program and to test and report oninternal control over compliance in accordance with OMB Circular A-133, but not for the purpose ofexpressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do notexpress and opinion on the effectiveness of Minisink Valley Central School District's internal control overcompliance.

A deficiency in internal control over compliance exists when the design or operation of a control overcompliance does not allow management or employees, in the normal course of performing their assignedfunctions, to prevent or detect and correct noncompliance with a type of compliance requirement of afederal program on a timely basis. A material weakness in internal control over compliance is adeficiency, or combination of deficiencies, in internal control over compliance, such that there is areasonable possibility that material noncompliance with a type of compliance requirement of a federalprogram will not be prevented, or detected and corrected, on a timely basis. A significant deficiency ininternal control over compliance is a deficiency, or a combination of deficiencies, in internal control overcompliance with a type of compliance requirement of a federal program that is less severe than a materialweakness in internal control over compliance, yet important enough to merit attention by those chargedwith governance.

Our consideration of internal control over compliance was for the limited purpose described in the firstparagraph of this section and was not designed to identify all deficiencies in internal control overcompliance that might be material weaknesses or significant deficiencies. We did not identify anydeficiencies in internal control over compliance that we consider to be material weaknesses. However,material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of ourtesting of internal control over compliance and the results of that testing based on the requirements ofOMB Circular A-133. Accordingly, this report is not suitable for any other purpose.


-70-


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFOR THE YEAR ENDED JUNE 30, 2015

YA55= l HKUU(iHFEDERAL ENTITY

FEDERAL GRANTOR/PASS-THROUGH CFDA IDENTIFYING

GRANTOR/PROGRAM OR CLUSTER TITLE NUMBER NUMBER EXPENDITURES

U.S. DEPARTMENT OF EDUCATIONPassed-through NYS Education Deparhnent:

Special Education Cluster (IDEA):IDEA -Part B, Section 611 84.027 0032-15-0686 $ 821,326IDEA -Part B, Section 619 84.173 0033-15-0686 25,769Total Special Education Cluster 847,095

Title I Part A Cluster:Title I Parts A&D, Basic Program 84.010 002 I -15-2260 322,518Total Special Education Cluster 322,518

Title II Part A, Teacher &Principal Training &Recruiting 84.367 0147-15-2260 89,442

TOTAL U.S. DEPARTMENT OF EDUCATION 1,259,055

U.S. DEPARTMENT OF AGRICULTUREPassed-through NYS Education Department:

Child Nutrition Cluster:Cash Assistance

National School Lunch Program ]0.555 N/A 401,825National School Breakfast Program 10.553 N/A 40,771

Cash Assistance Subtotal 442,596

Non-Cash Assistance (food distribution)Commodity Supplemental Food Program 10.555 N/A 120,986

TOTAL U.S. DEPT. OF AGRICULTURE,CHILD NUTRITION CLUSTER 563,582

TOTAL FEDERAL AWARDS EXPENDED $ 1,822,637

The accompanying notes are an integral part of the schedule.

-71-


NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFOR THE YEAR ENDED JUNE 30, 2015

NOTE 1. BASIS OF PRESENTATION.

The accompanying schedule of expenditures of federal awards presents the activity of federalaward programs administered by the District, which is described in Note 1 to the District'saccompanying financial statements, using the modified accrual basis of accounting. Federalawards that are included in the schedule may be received directly from federal agencies, as wellas federal awards that are passed through from other government agencies. The information ispresented in accordance with the requirements of OMB Circular A-133, Audits of States, LocalGovernments, and Non-Profit Organizations. Therefore, some amounts presented in this

schedule may differ from amounts presented in, or used in the preparation of, the financial

statements.

Indirect costs may be included in the reported expenditures, to the extent that they are includedin the federal financial reports used as the source for the data. presented. The District's policy isnot to charge federal award programs with indirect costs.

Matching costs (the District's share of certain program costs) are not included in the reportedexpenditures.

The basis of accounting varies by federal program consistent with the underlying regulationspertaining to each program.

The amounts reported as federal expenditures were obtained from the federal financial reportsfor the applicable program and periods. The amounts reported in these reports are preparedfrom records maintained for each program, which are reconciled with the District's financialreporting system.

NOTE 2. NON-CASH ASSISTANCE.

The District is the recipient of a federal award program that does not result in cash receipts ordisbursements. The District was granted $120,986 of commodities under the CommoditySupplemental Food Program (CFDA 10.555).

NOTE 3. OTHER DISCLOSURES.

No insurance is carried specifically to cover equipment purchased with federal funds. Anyequipment purchased with federal funds has only a nominal value, and is covered by theDistrict's casualty insurance policies.

There were no loans ar loan guarantees outsta~~ding at year-end.

-72-


SCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE YEAR ENDED JUNE 30, 2015

SECTION I —SUMMARY OF AUDITOR'S RESULTS

FINANCIAL STATEMENTSType of Auditor's Opinion Issued: Unqualified

Internal Control over Financial Reporting:Material weaknesses) identified?

Significant deficiencies identified that arenot considered to be material weaknesses

Noncompliance material to financial statements noted?

FEDERAL AWARDSInternal Control over Major Programs:Material weaknesses) identified?

Significant deficiencies identified that arenot considered to be material weaknesses

Type of Auditor's Opinion Issued on Compliance forMajor Programs: Unqualified

Any audit findings disclosed that are required to be reportedin accordance with Section 510(a) of Circular A-133?

IDENTIFICATION OF MAJOR PROGRAMS:

CFDA NUMBERS NAME OF FEDERAL PROGRAM OR CLUSTER10.553, 10.555 Child Nutrition Cluster84.0 l0A Title I Cluster

Yes X No

Yes X None Reported

Yes X No

Yes X No

Yes X None Reported

Yes X No

Dollar threshold used to distinguish between Type A and Type B programs: $ 300,000.00

Auditee qualified as low-risk auditee?

-73-

X Yes No

MIlVISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII.L, NEW YORK

SCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE YEAR ENDED JUNE 30, 2015

SECTION III -FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

A. Significant Deficiencies in Internal Control

There were no findings relating to the major federal awards as required to be reported in accordancewith Section 510(a) of Circular A-133.

B. Compliance Findings

There were no findings relating to the major federal awards as required to be reported in accordancewith Section 510(a) of Circular A-133.

-74-

1~Iugent ~ Haeussler, P.C.CERTIFIED PUBLIC ACCOQNTANTSESTABLISHED 1925

INDEPENDENT AUDITOR'S REPORT


Report on the Financial Statements

101 Bracken RoadMontgomery, New York 12549Tel (845) 457-1100Fax (845) 457-1160e-mail: nh~nhcpas.com


Patrick M. Bullis, CPARichard P. Capicchioni, CPAWalter J. Jung, CPAJustin B. Wood. CPA

We have audited the accompanying financial statement of the Minisink Valley Central School District'sextraclassroom activity funds, which comprise the statement of assets, liabilities, and fund balance-cashbasis as of June 30, 2015, and the related statement of receipts and disbursements-cash basis for the yearthen ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with the modified cash basis of accounting described in Note l; this includes determining thatthe cash basis of accounting is an acceptable basis for the preparation of the financial statements in thecircumstances. Management is also responsible for the design, implementation, and maintenance ofinternal control relevant to the preparation and fair presentation of financial statements that are free frommaterial misstatement, whether due to error ar fraud.


Our responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor's judgment, including theassessment 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 entity's preparationand fair presentation of the financial statements in order to design audit procedures that are appropriate inthe circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity'sinternal control. Accordingly, we express no such opinion. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of significant accounting estimatesmade 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 forour audit opinion.

-75-


To the President and Membersof the Board of Education of theMinisink Valley Central School District Page 2

Opm~on

In our opinion, the financial statements referred to above present fairly, in all material respects, the assets

liabilities and fund balance-cash basis of the extraclassroom activity funds of the Minisink Valley CentralSchool District as of June 30, 2015, and its cash receipts and cash disbursements for the year then ended,on the basis of accounting described in Note # 1.

Basis of Accounting

We draw your attention to Note # 1 of the financial statements, which describes the basis of accounting.

The financial statements are prepared on the cash basis of accounting, which is a basis of accounting otherthan accounting principles generally accepted in the United States of America. Our opinion is notmodified with respect to the matter.


-76-


EXTRACLASSROOM ACTNITY FUNDSTATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE -CASH BASIS

JUNE 30, 2015

I_~.Y.Y~TI ley

Cash in Checking

LIABILITIES AND FUND BALANCE

Sales Tax Payable

Fund Balance, Beginning of YearExcess of Disbursements over ReceiptsFund Balance, End of Year

TOTAL LIABII.,ITIES AND FUND BALANCE

196,767(34,351)


$ 163,801

1,385

162,416

163,801

-77-


EXTRACLASSROOM ACTNITY FUNDSTATEMENT OF RECEIl'TS &DISBURSEMENTS -CASH BASIS


CASHBALANCE

HIGH SCHOOL JUNE 30, 2014Senior Class $ 11,182Junior Class 4,683Sophomore Class 1,680Freshman Class 2,428Girl's Basketball 1,797Girl's Softball 4,683Choir Club 510C.A.R.E. 23Wrestling Club 2,210Boy's Basketball 1,019Drama Club 16,219Study Buddies 1Football Club 765National Honor Society 5,014SADD Club 330Boy's Soccer Club 468Student Council - HS 4,272Track Club 47Varsity Club 1,565Girl's Volleyball 2,095Yearbook Club 54,551Art-Museum Club 1,549Girl's Soccer Club 349School Store 8,689FBLA Club 2,751Media Club 14JROTC 3,808CAP 8,523Girl's Lacrosse Club 0Girl's Swim Club 2,232Boy's Swim Club 2,826Boy's &Girl's Tennis Club 94Golf Club 238Cheerleading Club 8,998Boy's Baseball Club 5,670Band Club HS 6,990

$ 168,273

RECEIPTS DISBURSEMENTS$ 39,660

18,5991,5472,532522

11,30632,618

06,7503,941

31,8752,539200

4,5460

2,7792,440

000

10,016793

3,31514,50316,245

016,9461,456

02,51218,439

00

56,39219,418

147,666$ 469,555


$ 50,82419,478

03,537827

11,71831,634

07,9674,087

38,2882,189710

4,16425

2,8601,794

07000

30,9821,6873,11513,62818,554

014,6631,024

04,10816,922

00

59,36718,909

141,199$ 504,960

CASHBALANCE

JiJNE 30, 2015$ 18

3,8043,2271,42;1,4924,271l ,494

23993873

9, 806351255

5,396305387

4,91847865

2,09533,585

655549

9,56444214

6,0918,955

0636

4,34394238

6,0236,17913,457

$ 132,868

-78-


EXTRACLASSROOM ACTNITY FUNDSTATEMENT OF RECEIPTS &DISBURSEMENTS -CASH BASIS

FOR THE YEAR ENDED JUNE 30.2015

CASH CASHMIDDLE & BALANCE BALANCEINTERMEDIATE SCHOOLS JI1NE 30, 2014 RECEIl'TS DISBURSEMENTS JUNE 30, 2015

Band Club $ 3,297 $ 21,211 $ 19,667 $ 4,841SADD Club 199 0 0 199Chorus 3,404 13,397 13,874 2,927Ski Ciub 964 0 0 964Student Government - MS 7,216 39,978 43,116 4,078Tech Crew 303 0 69 234Yearbook Club 3,125 8,139 4,805 6,49Chess Club 452 319 362 409Drama Club 9,534 11,335 11,432 9,437

$ 28,494 $ 94,379 $ 93,325 $ 29,54&

Total ExtraclassroomActivity Funds $ 196,767 $ 563,934 $ 598,285 $ 162,416


-79-

NIlNISINK VALLEY CENTRAL SCHOOL DISTRICTSLATE HII.L, NEW YORK

EXTRACLASSROOM ACTNITY FUNDSNOTES TO FINANCIAL STATEMENTS

JUNE 30, 2015

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.

(a) The transactions of the Ea~traclassroom Activity Funds are considered part of the reportingentity of the Minisink Valley Central School District. We have included theEartraclassroom Activity Fund. balances within the fiduciary funds of the financialstatements. The separate audit report of the E~raclassroom Activity Funds is required dueto the fact that the transactions of this fund are controlled by student management.

(b) The books and records of the Minisink Valley Central School District's ExtraclassroomActivity Funds are maintained on the cash basis of accounting. Under this basis ofaccounting, revenues are recognized when cash is received and expenditures recognizedwhen cash is disbursed.

(c) The Extraclassroom Activity Funds are used to record the activity of all student-relatedactivities within the District. These funds are under the control of an appointed centraltreasurer who maintains cash receipts and cash disbursement books. All receipts arecollected by the student activity treasurer and disbursements must be approved by thestudent management.

~YI~

Documents

MINISINK VALLEY CENTRAL SCHOOL DISTRICT assessing accountability and interperiod equity by requiring ... discussion and analysis and budgetary comparison ... our tests of its compliance