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SCHOOL DISTRICT OF THE
BOROUGH OF HALEDON
COUNTY OF PASSAIC, NEW JERSEY
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2018
School Districtof the
Borough of Haledon
BOROUGH OF HALEDON BOARD OF EDUCATIONHALEDON, NEW JERSEY
Comprehensive Annual Financial ReportFor the Fiscal Year Ended June 30, 2018
Comprehensive Annual Financial Report
of the
BOROUGH OF HALEDON BOARD OF EDUCATIONHALEDON, NEW JERSEY
For the Fiscal Year Ended June 30, 2018
Prepared by
Borough of Haledon Board of EducationFinance Department
OUTLINE OF CAFR
INTRODUCTORY SECTION
Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Roster of Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Consultants and Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
FINANCIAL SECTION
Independent Auditor's Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Required Supplementary Information - Part I
Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
BASIC FINANCIAL STATEMENTS
A. District-wide Financial Statements:
A-1 Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
A-2 Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
B. Fund Financial Statements:
Governmental Funds:
B-1 Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
B-2 Statement of Revenues, Expenditures and Changes in Fund Balances . . . . . . . . . . . . 25
B-3 Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Proprietary Funds:
B-4 Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
B-5 Statement of Revenues, Expenses and Changes in Fund Net Position . . . . . . . . . . . . . 28
B-6 Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Fiduciary Funds:
B-7 Statement of Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
B-8 Statement of Changes in Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Required Supplementary Information - Part II
OUTLINE OF CAFR
C. Budgetary Comparison Schedules:
C-1 Budgetary Comparison Schedule - General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
C-1a Not Applicable
C-2 Budgetary Comparison Schedule - Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . 75
Notes to the Required Supplementary Information
C-3 Budgetary Comparison Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Required Supplementary Information - Part III
L. Schedules Related to Accounting and Reporting for Pensions (GASB 68)
L-1 Schedule of the District's Proportionate Share of the Net Pension
Liability – PERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
L-2 Schedule of District Contributions – PERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
L-3 Schedule of the District's Proportionate Share of the Net Pension
Liability – TPAF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
L-4 Notes to Required Schedules of Supplementary Information - Part III . . . . . . . . . . . . 80
Other Supplementary Information
D. School Level Schedules:
Not Applicable
E. Special Revenue Fund:
E-1 Combining Schedule of Program Revenues and Expenditures -
Budgetary Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
E-1a Combining Schedule of Program Revenues and Expenditures -
Budgetary Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
E-2 Schedule of Preschool Education Aid - Budgetary Basis . . . . . . . . . . . . . . . . . . . . . . . 83
F. Capital Projects Fund:
Not Applicable
G. Proprietary Funds:
Enterprise Fund:
G-1 Combining Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
G-2 Combining Statement of Revenues, Expenses and Changes in
Fund Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
G-3 Combining Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
OUTLINE OF CAFR
Internal Service Fund:
Not Applicable
H. Fiduciary Funds:
H-1 Combining Statement of Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
H-2 Combining Statement of Changes in Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . 88
H-3 Student Activity Agency Fund - Schedule of Receipts and
Disbursements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
H-4 Payroll Agency Fund - Schedule of Receipts and Disbursements . . . . . . . . . . . . . . . . 90
I. Long-Term Debt:
I-1 Not Applicable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
J. Statistical Section (Unaudited)
Financial Trends
Introduction to the Statistical Section
J-1 Net Position by Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
J-2 Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
J-3 Fund Balances - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
J-4 Changes in Fund Balances - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
J-5 General Fund Other Local Revenue by Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Revenue Capacity
J-6 Assessed and Estimated Actual Value of Taxable Property . . . . . . . . . . . . . . . . . . . . . 97
J-7 Direct and Overlapping Property Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
J-8 Principal Property Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
J-9 School Tax Levies and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Debt Capacity
J-10 Ratios of Outstanding Debt by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
J-11 Ratios of Net General Bonded Debt Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
J-12 Direct and Overlapping Governmental Activities Debt . . . . . . . . . . . . . . . . . . . . . . . . 103
J-13 Legal Debt Margin Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
OUTLINE OF CAFR
J. Statistical Section (Unaudited), Continued
Demographic and Economic Information
J-14 Demographic and Economic Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
J-15 Principal Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Operating Information
J-16 Full-time Equivalent District Employees by Function/Program . . . . . . . . . . . . . . . . . . 107
J-17 Operating Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
J-18 School Building Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
J-19 Schedule of Required Maintenance for School Facilities . . . . . . . . . . . . . . . . . . . . . . . . 110
J-20 Insurance Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
K. SINGLE AUDIT SECTION
K-1 Independent Auditor’s Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing
Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
K-2 Independent Auditor’s Report on Compliance with Requirements Applicable
to Each Major Program and Internal Control Over Compliance in
Accordance with the Uniform Guidance and N.J. OMB Circular Letter
15-08 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
K-3 Schedule of Expenditures of Federal Awards - Schedule A . . . . . . . . . . . . . . . . . . . . . . 117
K-4 Schedule of Expenditures of State Financial Assistance - Schedule B . . . . . . . . . . . . . . 118
K-5 Notes to the Schedules of Expenditures of Federal Awards and State
Financial Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
K-6 Schedule of Findings and Questioned Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
K-7 Schedule of Financial, Federal and State Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
K-8 Summary Schedule of Prior Audit Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
INTRODUCTORY SECTION
January 22, 2019 Citizens, Honorable President and Members of the Board of Education Borough of Haledon School District Haledon, NJ 07508 Dear Board Members: The comprehensive annual financial report of the Borough of Haledon School District (District) for the fiscal year ended June 30, 2018 is hereby submitted. Responsibility for both the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rests with the management of the Board of Education (Board). To the best of our knowledge and belief, the data presented in this report is accurate in all material respects and is reported in a manner designed to present fairly the basic financial statements and results of operations of the District. All disclosures necessary to enable the reader to gain an understanding of the District’s financial activities have been included. The comprehensive annual financial report is presented in four sections: introductory, financial, statistical and single audit. The introductory section includes this transmittal letter, the District’s organizational chart and a list of principal officials. The financial section includes the management discussion and analysis, the basic financial statements and schedules, as well as the auditor’s report, thereon. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The District is required to undergo an annual single audit in conformity with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the New Jersey OMB Circular NJOMB 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Information related to this single audit, including the auditors’ report on the internal control and compliance with applicable laws, regulations, contracts and grants along with findings and questioned costs, are included in the single audit section of this report. 1) REPORTING ENTITY AND ITS SERVICES: The Haledon Public School District is an independent reporting entity within the criteria adopted by the SASB as established by GASB Statement No. 14. All funds and account groups of the District are included in this report. Borough of Haledon Board of Education and all its schools constitute the District’s reporting entity. The District provides a full range of educational services appropriate to grade levels Pre-School, Pre-School Handicap and K through 8. These include regular classes for PreK-8 and special education classes for Preschool Handicapped and PreK-8. The District had at the October 2017 ASSA count of 1,027 students, which is 9 students less than the previous year’s average daily enrollment. The following details the changes in the student enrollment of the District over the last ten years.
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Average Daily Enrollment
Fiscal Year Student Enrollment PPeerrcceenntt CChhaannggee
2017-2018 1027 ((00..8877%%))
2016-2017 1036 ((11..4433%%))
2015-2016 1051 22..0099%%
2014-2015 1029 11..0088%%
2013-2014 1018 11..3399%%
2012-2013 1004 ((33..2288%%))
2011-2012 1038 ((11..1144%%))
2010-2011 1050 ..22%%
2009-2010 1052 ..55%%
2008 - 09 1046 ((33..8888%%))
2) ECONOMIC CONDITION AND OUTLOOK: The Borough of Haledon is experiencing limited economic development and growth. It is not expected that there will be any strong economic growth or expansion in the region in the near future. Additional state aid funding could assist the district in future years. 3) MAJOR INITIATIVES Major Initiatives Implemented in the 2017-18 School Year: Construction – The Board of Education instituted phase 2 of its window replacement plan, installed security film on its first floor windows, renovated bathrooms in the nurse’s and Faculty rooms, replaced a unit vent in the Nurse’s Office, upgraded the district playground, installed an exterior water fountain, replaced floor tile in several rooms and replaced stairwell and fire doors throughout the district. Solar panels were also installed during the school year, decreasing both the district’s carbon footprint and energy bills. Technology – The 2017-18 school year saw additional chromebooks purchased to bring the district to its 1:1 goal (having a chromebook or technological device for every student in its building). The phone system was also upgraded. 2018-19 The upcoming school year continues the positive changes the school district has had for the past several years. The district will continue to reinvest in its facilities, completing the school’s window replacement. Technology upgrades will include adding wireless access points for PARCC testing, upgrading the district’s Fireweall and installing Promethean Boards in several classrooms as well as purchasing a tricaster and camera for morning announcements. 4) INTERNAL ACCOUNTING CONTROLS: Management of the District is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the District are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). The internal control structure is designed to provide reasonable, but not
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absolute, assurance that these objectives are met. The concept of reasonable assurance recognized that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. As a recipient of federal and state financial assistance, the District also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is also subject to periodic evaluation by the District management. As part of the District’s single audit described earlier, tests are made to determine the adequacy of the internal control structure, including that portion related to federal and state financial assistance programs, as well as to determine that the District has complied with applicable laws and regulations. 5) BUDGETARY CONTROLS: In addition to internal accounting controls, the District maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the voters of the municipality. Annual appropriated budgets are adopted for the general fund, the special revenue fund, and the debt service fund. Project-length budgets are approved for the capital improvements accounted for in the capital projects fund. The final budget amount as amended for the fiscal year is reflected in the financial section. An encumbrance accounting system is used to record outstanding purchase commitments on a line item basis. Open encumbrances at year-end are either canceled or are included as reappropriations of fund balance in the subsequent year. Those amounts to be re-appropriated are reported as reservations of fund balance at June 30, 2018. 6) CASH MANAGEMENT: The investment policy of the District is guided in large part by state statute as detailed in “Notes to the Financial Statements,” Note 2. The District has adopted a cash management plan which requires it to deposit public funds in public depositories protected from loss under the provisions of the Governmental Unit Deposit Protection Act (“GUDPA”). GUDPA was enacted in 1970 to protect Governmental Units from a loss of funds on deposit with a failed banking institution in New Jersey. The law requires governmental units to deposit public funds only in public depositories located in New Jersey, where the funds are secured in accordance with the Act. 7) RISK MANAGEMENT: The Board carries various forms of insurance, including but not limited to general liability, automobile liability and comprehensive/collision, hazard and theft insurance on property and contents, and fidelity bonds. 8) OTHER INFORMATION: State statutes require an annual audit by independent certified public accountants or registered municipal accountants. The accounting firm of Ferraioli, Wielkotz, Cerullo & Cuva, P.A., was selected by the Board’s audit committee. In addition to meeting the requirements set forth in state statutes, the audit also was designed to meet the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the New Jersey OMB 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. The auditor’s report on the basic financial statements and specific required supplemental information is included in the financial section
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of this report. The auditor’s reports related specifically to the single audit are included in the single audit section of this report. 9) ACKNOWLEDGEMENTS: We would like to express our appreciation to the members of the Borough of Haledon School Board for their concern in providing fiscal accountability to the citizens and taxpayers of the school district and thereby contributing their full support to the development and maintenance of our financial operation. The preparation of this report could not have been accomplished without the efficient and dedicated services of our financial and accounting staff. Respectfully submitted,
Miguel Hernandez John A. Serapiglia, Jr. Miguel Hernandez, Ph.D. John A. Serapiglia, Jr. Superintendent Business Administrator/Board Secretary
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BOROUGH OF HALEDON BOARD OF EDUCATION HALEDON, NEW JERSEY
ROSTER OF OFFICIALS JUNE 30, 2018
BOARD OF EDUCATION TERM EXPIRES John Kaslander, President
2019
Joyce Smith, Vice President
2019
Kathleen Gonzales
2019
Ellen P. Fischer
2020
Dr. Daniel Jean
2018
George Guzman
2020
Catherine Perez
2020
Anyelis Diaz
2018
Jeffrey Fischer
2018
OTHER OFFICIALS
Miguel Hernandez, Ph. D., Superintendent
John Serapiglia, Board Secretary/Business Administrator
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BOROUGH OF HALEDON BOARD OF EDUCATION
CONSULTANTS AND ADVISORS
ARCHITECT
DiCara Rubino Architects 30 Galesi Drive, West Wing
Wayne, NJ 07470
AUDIT FIRM
Ferraioli, Wielkotz, Cerullo & Cuva, P.A. 401 Wanaque Avenue
Pompton Lakes, NJ 07442
ATTORNEY
Fogarty & Hara Counselors at Law
16-00 Route 208 South Fair Lawn, NJ 07410
OFFICIAL DEPOSITORY
TD Bank North Belmont Avenue
Haledon, NJ 07508
-7-
FINANCIAL SECTION
Ferraioli, Wielkotz, Cerullo & Cuva, P.A.Charles J. Ferraioli, Jr., MBA, CPA, RMA Certified Public Accountants Newton Office Steven D. Wielkotz, CPA, RMA 401 Wanaque Avenue 100B Main Street James J. Cerullo, CPA, RMA Pompton Lakes, New Jersey 07442 Newton, NJ 07860Paul J. Cuva, CPA, RMA 973-835-7900 973-579-3212Thomas M. Ferry, CPA, RMA Fax 973-835-6631 Fax 973-579-7128
INDEPENDENT AUDITOR'S REPORT
Honorable President andMembers of the Board of EducationBorough of Haledon School DistrictCounty of Passaic, New Jersey
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the Board ofEducation of the Borough of Haledon School District, in the County of Passaic, State of New Jersey,as of and for the year ended June 30, 2018, and the related notes to the financial statements, whichcollectively comprise the District’s basic financial 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 inaccordance with accounting principles generally accepted in the United States of America; thisincludes the design, implementation, and maintenance of internal control relevant to the preparationand fair presentation of financial statements that are free from material misstatements, whether dueto fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica, the audit requirements prescribed by the Office of School Finance, Department ofEducation, State of New Jersey, and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States. Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement.
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Honorable President andMembers of the Board of EducationPage 2.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the 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 orerror. In making those risk assessments, the auditor considers internal control relevant to theentity’s preparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the entity’s internal control. Accordingly, we express no suchopinion. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of significant accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, business-type activities, each majorfund, and the aggregate remaining fund information of the Borough of Haledon Board of Education,in the County of Passaic, State of New Jersey, as of June 30, 2018, and the respective changes infinancial position and, where applicable, cash flows thereof for the year then ended in accordancewith accounting principles generally accepted in the United States of America.
Emphasis of Matter
Change in Accounting Principle
As discussed in Note 1 to the basic financial statements, in 2018, the Board adopted GovernmentalAccounting Standards Board Statement No. 75, Accounting and Financial Reporting for PostEmployment Benefits Other Than Pensions (an Amendment of GASB Statement No. 45). Ouropinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that theManagement’s Discussion and Analysis and Budgetary Comparison Information, and SchedulesRelated to Accounting and Reporting for Pensions identified in the table of contents be presented tosupplement the basic financial statements. Such information, although not a part of the basicfinancial statements, is required by the Governmental Accounting Standards Board who considers itto be an essential part of the financial reporting for placing the basic financial statements in anappropriate operational, economic, or historical context. We have applied certain limited procedures
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Honorable President andMembers of the Board of EducationPage 3.
to the required supplementary information in accordance with auditing standards generally acceptedin the United States of America, which consisted of inquiries of management about the methods ofpreparing the information and comparing the information for consistency with management’sresponses to our inquiries, the basic financial statements, and other knowledge we obtained duringour audit of the basic financial statements. We do not express an opinion or provide any assuranceon the information because the limited procedures do not provide us with sufficient evidence toexpress an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the Borough of Haledon Board of Education’s basic financial statements. Theintroductory section, combining and individual nonmajor fund financial statements and schedule ofexpenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance) and the statistical section are presented for purposes of additional analysis andare not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and the schedule of expendituresof federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance) and the schedule of expenditures of state financial assistance as required by NJOMB 15-08 are the responsibility of management and were derived from and relates directly to theunderlying accounting and other records used to prepare the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the audit of the basic financialstatements and certain additional procedures, including comparing and reconciling such informationdirectly to the underlying accounting and other records used to prepare the basic financial statementsor to the basic financial statements themselves, and other additional procedures in accordance withauditing standards generally accepted in the United States of America. In our opinion, thecombining and individual nonmajor fund financial statements, and schedule of expenditures offederal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance), and the schedule of expenditures of state financial assistance as required by NJOMB 15-08 are fairly stated, in all material respects, in relation to the basic financial statements as awhole.
The introductory section and statistical data section has not been subject to the auditing proceduresapplied in the audit of the basic financial statements, and accordingly, we do not express an opinionor provide any assurance on it.
-10-
Honorable President andMembers of the Board of EducationPage 4.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January22, 2019 on our consideration of the Borough of Haledon Board of Education’s internal control overfinancial reporting and on our tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements and other matters. The purpose of that report is to describe thescope of our testing of internal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on internal control over financial reporting or oncompliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the Borough of Haledon Board of Education’s internal controlover financial reporting and compliance.
James Cerullo, C.P.A.Licensed Public School AccountantNo. 881
FERRAIOLI, WIELKOTZ, CERULLO & CUVA, P.A.Certified Public AccountantsPompton Lakes, New Jersey
January 22, 2019
Ferraioli, Wielkotz, Cerullo & Cuva,P.A.
James Cerullo
-11-
REQUIRED SUPPLEMENTARY
INFORMATION - PART I
BOROUGH OF HALEDON BOARD OF EDUCATIONHALEDON, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2018
The discussion and analysis of the Borough of Haledon Board of Education’s financial performanceprovides an overall review of the School District’s financial activities for the fiscal year endedJune 30, 2018. The intent of this discussion and analysis is to look at the District’s financialperformance as a whole and should not be interpreted as a replacement for the audit which consistsof the financial statements and other supplemental information that presents all the District’srevenues and expenditures by program for the General Fund, Special Revenue Fund, Capital ProjectsFund, Debt Service and Enterprise Fund.
FINANCIAL HIGHLIGHTS
• In total, net position decreased $714,881.35. Net position of governmental activitiesdecreased $624,708.23 while net position of business-type activity decreased by $90,173.12. These variances are primarily the result of an increase in employee benefits and other budgetexpenditures in 2017-18 and increased operating expenses of the business-type activities.
• General revenues accounted for $20,168,470.41 in revenue or 89.32 percent of all districtrevenues. Program specific revenues in the form of charges for services and sales, grants andcontributions accounted for $2,399,163.67 or10.68 percent of total revenues of$22,580,384.08.
• The School District had $22,310,226.61 in expenses related to governmental activities; only$1,527,807.37 of these expenses were offset by program specific charges for services, grantsor contributions. General revenues (primarily grants, entitlements and property taxes) of$20,170,461.01were adequate to provide for these programs.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements and notes to those statements. Thestatements are organized so the reader can understand the District as a whole (district-widestatements), and then proceed to provide an increasingly detailed look at specified financialactivities.
District-Wide Financial Statements
The statement of net position and statement of activities reports information about the District as awhole and about its activities in a manner that helps answer the question, “Is the District better orworse off as a result of the year’s activities?” These statements include all assets and liabilities ofthe District using the accrual basis of accounting, similar to the accounting used by private sectorcorporations. All of the current year’s revenues and expenses are taken into consideration regardlessof when cash is received or paid.
Both of the district-wide financial statements distinguish functions of the Borough of Haledon Boardof Education that are principally supported by taxes and intergovernmental revenues (governmentalactivities) from other functions that are intended to recover all or a significant portion of their coststhrough user fees and charges (business-type activities).
-12-
BOROUGH OF HALEDON BOARD OF EDUCATIONHALEDON, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2018
(CONTINUED)
USING THIS ANNUAL REPORT, (continued)
In the Statement of Net Position and the Statement of Activities, the District is divided into twodistinct kinds of activities:
C Governmental Activities – All of the school district’s programs and services are reportedhere including instruction, support services, operation and maintenance of plant facilities,pupil transportation and extracurricular activities.
C Business-type Activities – These services are provided on a charge for goods and servicesbasis to recover all the expenses of the goods or services provided. The Food Serviceprogram and after care summer camp program are reported as business activities.
The two statements report the District’s net position and changes in them. The change in netposition can be utilized by a reader to assist in determining whether the District’s financial healthis improving or deteriorating. However, the reader should also consider non-financial factors suchas property tax base, current New Jersey laws restricting revenue growth, student enrollment growth,facility conditions, required educational programs and other factors in determining the District’soverall financial health.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that havebeen segregated for specific activities or objectives. The Borough of Haledon Board of Education,like other state and local governments, uses fund accounting to ensure and demonstrate compliancewith finance-related legal requirements. All of the district’s funds can be divided into threecategories: Governmental Funds, Proprietary Funds and Fiduciary Funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmentalactivities in the district-wide financial statements. However, unlike the district-wide financialstatements, governmental fund financial statements focus on near-term inflows and outflows ofspendable resources, as well as on balances of spendable resources available at the end of the fiscalyear. These funds are reported using an accounting method called modified accrual accounting,which measures cash and all other financial assets that can be readily converted to cash.
Because the focus of governmental funds is narrower than that of the district-wide financialstatements, it is useful to compare the information presented for governmental funds with similarinformation presented for governmental activities in the district-wide financial statements. By doingso, readers may better understand the long-term impact of the District’s near-term financingdecisions. Both the governmental fund balance sheet and the governmental fund statement ofrevenues, expenditures, and changes in fund balances provide a reconciliation to facilitate thiscomparison between governmental funds and governmental activities (reported in the Statement ofNet Position and the Statement of Activities).
-13-
BOROUGH OF HALEDON BOARD OF EDUCATIONHALEDON, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2018
(CONTINUED)
USING THIS ANNUAL REPORT, (continued)
The Borough of Haledon Board of Education maintains four individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmentalstatement of revenues, expenditures and changes in fund balances for the general, special revenue,capital projects and debt service funds, which are considered to be major funds.
The Borough of Haledon Board of Education adopts annual appropriated budgets for itsgovernmental funds. A budgetary comparison statement has been provided for the general fund,special revenue fund and debt service to demonstrate compliance with their budgets.
Proprietary Funds
Proprietary funds use the accrual basis of accounting, the same as on the district-wide statements,therefore the statements will essentially match the business-type activities portion of the district-widestatements. The Borough of Haledon Board of Education uses proprietary funds to account for itsfood service program, summer camp program and after care program.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the District. These activities are excluded from the District’s other financial statements because the assets cannotbe utilized by the District to finance its operations. Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data providedin the district-wide and fund financial statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certainrequired supplementary information concerning budgetary information for the District’s majorfunds.
Our auditor has provided assurance in his independent auditor’s report, located immediatelypreceding this Management’s Discussion and Analysis, that the Basic Financial Statements are fairlystated. Varying degrees of assurance are being provided by the auditor regarding the RequiredSupplemental Information and the Supplemental Information identified above. A user of this reportshould read the independent auditor’s report carefully to ascertain the level of assurance beingprovided for each of the other parts in the Financial Section.
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BOROUGH OF HALEDON BOARD OF EDUCATIONHALEDON, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2018
(CONTINUED)
DISTRICT-WIDE FINANCIAL ANALYSIS
The Statement of Net Position provides the perspective of the District as a whole. Net position may,over time, serve as a useful indicator of a government’s financial position.
The District’s financial position is the product of several financial transactions including the netresults of activities, the acquisition and payment of debt, the acquisition and disposal of capital assetsand the depreciation of capital assets.
The School District’s net position’s were $8,857,432.55 at June 30, 2018 and $9,572,313.90 at June30, 2017. Restricted items of net position are reported separately to show legal constraints that limitthe School District’s ability to use those items of net position for day-to-day operations. Our analysisbelow focuses on the net position for 2018 compared to 2017 (Table 1) and change in net position(Table 2) of the School District.
Table 1
Net PositionJune 30,
Governmental Activities Business-Type Activities Total
2018 2017 2018 2017 2018 2017
Assets
Current and Other Assets 1,503,404.00 2,867,732.71 266,852.72 384,616.13 1,770,256.72 3,252,348.84
Capital Assets 11,059,843.46 10,857,094.90 232,430.91 202,022.37 11,292,274.37 11,059,117.27
Total Assets 12,563,247.46 13,724,827.61 499,283.63 586,638.50 13,062,531.09 14,311,466.11
Deferred Outflows 1,125,718.00 1,567,348.00 1,125,718.00 1,567,348.00
Liabilities
Current Liabilities 675,823.31 1,347,575.66 5,294.95 2,476.70 681,118.26 1,350,052.36
Noncurrent Liabilities 3,847,162.28 4,943,805.85 3,847,162.28 4,943,805.85
Total Liabilities 4,522,985.59 6,291,381.51 5,294.95 2,476.70 4,528,280.54 6,293,858.21
Deferred Inflows 802,536.00 12,642.00 802,536.00 12,642.00
Net Position
Invested in Capital Assets 11,059,843.46 10,857,094.90 232,430.91 202,022.37 11,292,274.37 11,059,117.27
Restricted 981,536.18 1,621,696.91 981,536.18 1,621,696.91
Unrestricted (3,677,935.77) (3,490,639.71 261,557.77 382,139.43 (3,416,378.00) (3,108,500.28)
Total Net Position 8,363,443.87 8,988,152.10 493,988.68 584,161.80 8,857,432.55 9,572,313.90
-15-
BOROUGH OF HALEDON BOARD OF EDUCATIONHALEDON, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2018
(CONTINUED)
DISTRICT-WIDE FINANCIAL ANALYSIS, (continued)
Table 2 below shows the changes in net position for fiscal year 2018 compared to 2017.
Table 2Changes in Net Position
Year Ended June 30,
Governmental Activities Business-Type Activities Total
2018 2017 2018 2017 2018 2017
Revenues
Program Revenues:
Charges for Services and
Sales 326,569.09 309,758.00 326,569.09 309,758.00
Operating Grants and
Contributions 1,515,057.37 1,253,968.22 557,537.21 545,784.07 2,072,594.58 1,799,752.29
General Revenues:
Taxes:
Property taxes, levied
For general purposes 6,456,600.00 6,330,000.00 6,456,600.00 6,330,000.00
Federal and State Aid not
Restricted 13,586,386.86 12,179,372.74 13,586,386.86 12,179,372.74
Other Restricted 3,808.50 41,197.00 3,808.50 41,197.00
Investment Earnings 827.94 429.01 72.54 135.29 900.48 564.30
Cancelled Accounts Receivable (2,063.14) (2,063.14) 0.00
Miscellaneous Income 122,837.71 181,736.61 122,837.71 181,736.61
Total Revenues and Transfers 21,685,518.38 19,986,703.58 882,115.70 855,677.36 22,567,634.08 20,842,380.94
-16-
BOROUGH OF HALEDON BOARD OF EDUCATIONHALEDON, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2018
(CONTINUED)
DISTRICT-WIDE FINANCIAL ANALYSIS, (continued)
Governmental Activities Business-Type Activities Total
2018 2017 2018 2017 2018 2017
Functions/Program Expenses
Instruction:
Regular 7,372,997.05 6,879,619.18 7,372,997.05 6,879,619.18
Special 2,039,184.91 2,262,365.01 2,039,184.91 2,262,365.01
Other Special
Instruction 736,154.66 771,849.72 736,154.66 771,849.72
Other Instruction 125,407.36 111,645.11 125,407.36 111,645.11
Support Services:
Tuition 248,568.56 184,221.47 248,568.56 184,221.47
Student & Instruction
Related Services 2,059,505.70 2,025,620.67 2,059,505.70 2,025,620.67
School Administrative
Services 677,804.63 664,065.92 677,804.63 664,065.92
General Administrative
Services 351,017.96 373,510.51 351,017.96 373,510.51
Central Services and
Admin.Info.Tech. 502,003.99 484,349.14 502,003.99 484,349.14
Plant Operations and
Maintenance 925,720.73 977,931.12 925,720.73 977,931.12
Pupil Transportation 345,177.69 257,455.60 345,177.69 257,455.60
Unallocated Benefits 6,351,101.88 5,232,080.22 6,351,101.88 5,232,080.22
Capital Outlay 5,453.00 5,453.00 5,453.00 5,453.00
Unallocated depreciation 452,612.49 419,132.11 452,612.49 419,132.11
Charter Schools 117,516.00 46,496.00 117,516.00 46,496.00
Food Service 667,521.57 643,636.72 667,521.57 643,636.72
After Care Program 304,767.25 267,986.59 304,767.25 267,986.59
Total Expenses and Transfers 22,310,226.61 20,695,794.78 972,288.82 911,623.31 23,282,515.43 21,607,418.09
Increase or (Decrease) in
Net Position (624,708.23) (709,091.20) (90,173.12) (55,945.95) (714,881.35) (765,037.15)
-17-
BOROUGH OF HALEDON BOARD OF EDUCATIONHALEDON, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2018
(CONTINUED)
DISTRICT-WIDE FINANCIAL ANALYSIS, (continued)
Governmental and Business- Activities
As reported in the Statement of Activities the cost of all of our governmental and business-typeactivities this year was $23,282,515.43. However, the amount that our taxpayers ultimately financedfor these activities through School District taxes was only $6,456,600.00 because some of the costwas paid by those who benefitted from the programs $326,569.09, by other governments andorganizations who subsidized certain programs 13,712,470.41.
Revenues for the District’s business-type activities (food service program, summer camp programand after care program) were comprised of charges for services and federal and state subsidyreimbursements. Significant financial results include the following:
T Food service expenses exceeded revenues by $84,585.31.
T Charges for services provided totaled $25,399.05 represents amounts paid by consumers fordaily food services.
T Federal and state reimbursement for meals served, including payments for free and reducedpriced lunches, and donated commodities was $557,537.21.
MAJOR GOVERNMENTAL FUNDS BUDGETING AND OPERATING HIGHLIGHTS
The School District’s budgets are prepared according to New Jersey law, and are based onaccounting for certain transactions on a basis of cash receipts, disbursements and encumbrances. The most significant budgeted funds are the general fund and the special revenue fund.
During the fiscal year ended June 30, 2018, the School District amended the budgets of these majorgovernmental funds several times. Revisions in the budget were made to recognize revenues thatwere not anticipated and/or to prevent over-expenditures in specific line item accounts. Several ofthese revisions bear notation:
C TPAF, which is the state’s contribution to the pension fund, is neither a revenue item nor anexpenditures item to the district but is required to be reflected in the financial statements.
C The special revenue fund was increased by $436,838.00 for increase in federal and state grantawards.
-18-
BOROUGH OF HALEDON BOARD OF EDUCATIONHALEDON, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2018
(CONTINUED)
MAJOR GOVERNMENTAL FUNDS BUDGETING AND OPERATING HIGHLIGHTS,(continued)
General Fund
The general fund actual revenue was $16,212,767.01. That amount is $2,740,844.01 above the finalamended budget of $13,471,923.00. The variance between the actual revenues and final budget wasthe result of non-budgeted on-behalf payments of $2,357,791.83 for TPAF social securityreimbursements and on-behalf pension payments and a $4,399.15 excess in miscellaneousanticipated revenues and $378,653.03 excess in other federal and state aids.
The actual expenditures of the general fund were $16,879,228.37 including transfers which is$2,173,859.69 above the final amended budget of 14,705,368.68. The variance between the actualexpenditures and final budget was due to non-budget on-behalf TPAF social security and pensionpayments of $2,357,791.83 and $183,932.14 of unexpended budgeted funds.
Special Revenue Fund
The special revenue fund actual revenue was $1,515,057.37. That amount is above the originalbudget estimate of $1,272,565.00 and below the final amended budget of $1,709,403.00. The$436,838.00 variance between the original and final budget was due to additional federal and stategrant monies awarded to the District after the original budget was approved. The $194,345.63variance between the final amended budget and the June 30, 2018 actual results was due to thedeferral of Federal and State grants received in the current fiscal year to be spent in the next fiscalyear.
The actual expenditures of the special revenue fund were $1,515,057.37, which is above the originalbudget of $1,272,565.00 and below the final amended budget of $1,709,403.00. The $436,838.00variance between the original and final budget was due to additional expenditures related to theadditional grants awarded to the District after the original budget was approved. The $184,345.63variance between the final amended budget and the June 30, 2018 actual results was due to theanticipation of fully expending federal and state grant programs. Expenditures will be incurred inthe next fiscal year.
-19-
BOROUGH OF HALEDON BOARD OF EDUCATIONHALEDON, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2018
(CONTINUED)
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of fiscal year 2018 the School District had $18,189,716.28 invested in sites, buildings andequipment. Of this amount, $6,897,441.91 in depreciation has been taken over the years. We currently havea net book value of $11,292,274.37. Total additions for the year were $844,636.58, the majority of whichwas for improvements to the District’s facilities and various equipment. Table 3 shows fiscal year 2018balances compared to 2017.
Table 3Capital Assets at June 30,
(Net of Depreciation)
Governmental Activities Business Activities Total
2018 2017 2018 2017 2018 2017
Land 1,122,000.00 1,122,000.00 1,122,000.00 1,122,000.00
Land Improvements 431,550.31 418,355.61 431,550.31 418,355.61
Buildings and Improvements 8,648,269.13 8,519,441.74 8,648,269.13 8,519,441.74
Furniture, Equipment and Vehicles 858,024.02 797,297.55 232,430.91 202,022.37 1,090,454.93 999,319.92
11,059,843.46 10,857,094.90 232,430.91 202,022.37 11,292,274.37 11,059,117.27
Debt Administration
At June 30, 2018, the district had $3,847,162.28 of long-term debt. Of this amount, $111,082.28 is forcompensated absences, and $3,736,080.00 is for net pension liability - PERS.
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BOROUGH OF HALEDON BOARD OF EDUCATIONHALEDON, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2018
(CONTINUED)
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
The 2018-2019 school budget represents the fifth time that the residents in Haledon did not have anopportunity to vote on the Haledon School Budget. Changes in election law allowed for approval of schoolbudgets without an election (if they fell within tax cap) provided that the municipality, the school districtor the electorate voted for such a change. For the 2013-2014 school year, the Borough of Haledon voted todo away with the vote for the elementary school budget election. The budget put together for 2018-2019was within CAP, so there was also no election.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Borough of Haledon Board ofEducation’s finances for all those with an interest in the government’s finances. Questions concerning anyof the information provided in this report or requests for additional information should be addressed to:
John A. Serapiglia, Jr.,School Business AdministratorBorough of Haledon Board of Education70 Church StreetHaledon, New Jersey 07508
-21-
BASIC FINANCIAL STATEMENTS
DISTRICT-WIDE FINANCIAL STATEMENTS
Exhibit A-1
BOROUGH OF HALEDON SCHOOL DISTRICT
Statement of Net Position
June 30, 2018
Governmental Business-type
Activities Activities Total
ASSETS
Cash and Cash Equivalents 285,784.67 285,784.67
Receivables, net 453,757.42 44,441.93 498,199.35
Internal Balances 68,110.40 (68,110.40) -
Inventory 4,736.52 4,736.52
Restricted Assets:
Cash and Cash Equivalents 981,536.18 981,536.18
Capital Assets :
Land and Construction in Progress 1,122,000.00 1,122,000.00
Other Capital Assets, net 9,937,843.46 232,430.91 10,170,274.37
Total Assets 12,563,247.46 499,283.63 13,062,531.09
DEFERRED OUTFLOWS
Deferred Outflows of Resources Related to PERS - Pension 1,125,718.00 1,125,718.00
LIABILITIES
Cash Deficit 325,141.14 325,141.14
Accounts Payable and Accrued Liabilities 312,346.19 5,218.82 317,565.01
Interfunds Payable - Fiduciary Fund 2,496.84 2,496.84
Unearned Revenue 35,839.14 76.13 35,915.27
Noncurrent Liabilities:
Due beyond one year 3,847,162.28 3,847,162.28
Total Liabilities 4,522,985.59 5,294.95 4,528,280.54
DEFERRED INFLOWS
Deferred Inflows of Resources Related to PERS - Pension 802,536.00 802,536.00
NET POSITION
Invested in Capital Assets 11,059,843.46 232,430.91 11,292,274.37
Restricted for:
Capital Projects 490,885.24 490,885.24
Other Purposes 490,650.94 490,650.94
Unrestricted (Deficit) (3,677,935.77) 261,557.77 (3,416,378.00)
Total Net Position 8,363,443.87 493,988.68 8,857,432.55
See Accompanying Notes to Financial Statements.
-22-
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3.8
4
(6
77
,80
4.6
3)
(67
7,8
04
.63)
Gen
eral
Adm
inis
trat
ive
Ser
vic
es3
27
,52
9.8
1
2
3,4
88
.15
(3
51
,01
7.9
6)
(35
1,0
17
.96)
Cen
tral
Ser
vic
es &
Ad
min
. In
fo.
Tec
hn
olo
gy
48
2,5
73
.64
19
,43
0.3
5
(5
02
,00
3.9
9)
(50
2,0
03
.99)
Pla
nt
Oper
atio
ns
and
Mai
nte
nan
ce8
01
,09
0.7
0
1
24
,63
0.0
3
(9
25
,72
0.7
3)
(92
5,7
20
.73)
Pupil
Tra
nsp
ort
atio
n3
23
,43
9.4
4
2
1,7
38
.25
-
(34
5,1
77
.69)
(34
5,1
77
.69)
Unal
loca
ted B
enef
its
6,3
51
,10
1.8
8
-
(6
,35
1,1
01
.88
)
(6
,35
1,1
01
.88
)
C
apit
al O
utl
ay -
No
n-d
epre
ciab
le5
,45
3.0
0
-
-
(5,4
53
.00
)
(5,4
53
.00
)
C
har
ter
Sch
oo
ls1
17
,51
6.0
0
-
(1
17
,51
6.0
0)
(11
7,5
16
.00)
U
nal
loca
ted D
epre
ciat
ion
45
2,6
12
.49
-
(4
52
,61
2.4
9)
(45
2,6
12
.49)
T
ota
l G
over
nm
enta
l A
ctiv
itie
s1
9,0
68
,53
7.3
8
3,2
54
,43
9.2
3
-
1,5
27
,80
7.3
7
(2
0,7
95
,16
9.2
4)
-
(20
,79
5,1
69.2
4)
B
usi
nes
s-ty
pe
Act
ivit
ies:
F
ood S
ervic
e6
67
,52
1.5
7
2
5,3
99
.05
55
7,5
37
.21
(84
,58
5.3
1)
(84
,58
5.3
1)
A
fter
Car
e P
rogra
m3
04
,76
7.2
5
3
01
,17
0.0
4
-
(3,5
97
.21
)
(3,5
97
.21
)
T
ota
l B
usi
nes
s-ty
pe
Act
ivit
ies
97
2,2
88
.82
32
6,5
69
.09
55
7,5
37
.21
(88
,18
2.5
2)
(88
,18
2.5
2)
Tota
l P
rim
ary G
over
nm
ent
20
,04
0,8
26
.20
3
26
,56
9.0
9
2,0
85
,34
4.5
8
(2
0,7
95
,16
9.2
4)
(88
,18
2.5
2)
(20
,88
3,3
51.7
6)
Gen
eral
Rev
enu
es: T
axes
:
P
rop
erty
Tax
es, L
evie
d f
or
Gen
eral
Pu
rpo
ses
6,4
56,6
00.0
0
6,4
56,6
00.0
0
Fed
eral
an
d S
tate
Aid
no
t R
estr
icte
d
13,5
86,3
86.8
6
13,5
86,3
86.8
6
Tu
tio
n3,8
08.5
0
3,8
08.5
0
Inves
tmen
t E
arn
ings
827.9
4
72.5
4
900.4
8
Mis
cell
aneo
us
Inco
me
122,8
37.7
1
-
122,8
37.7
1
Can
cell
atio
n o
f P
rio
r Y
ears
' Rec
eivab
le/P
ayab
le-
(2,0
63
.14
)
(2,0
63
.14
)
To
tal
Gen
eral
Rev
enu
es, S
pec
ial
Item
s, E
xtr
aord
inar
y I
tem
s an
d T
ran
sfer
s20,1
70,4
61.0
1
(1
,99
0.6
0)
20,1
68,4
70.4
1
C
han
ge
in N
et P
osi
tio
n(6
24
,70
8.2
3)
(90
,17
3.1
2)
(71
4,8
81
.35)
Net
Po
siti
on
—B
egin
nin
g
8,9
88,1
52.1
0
584,1
61.8
0
9,5
72,3
13.9
0
Net
Po
siti
on
—E
nd
ing
8,3
63,4
43.8
7
493,9
88.6
8
8,8
57,4
32.5
5
See A
ccom
pan
yin
g N
ote
s to
Fin
an
cia
l S
tate
men
ts.
-23-
FUND FINANCIAL STATEMENTS
Exhibit B-1
BOROUGH OF HALEDON SCHOOL DISTRICT
Balance Sheet
Governmental Funds
June 30, 2018
Special Total
General Revenue Governmental
Fund Fund Funds
ASSETS
Interfund Receivables 299,177.18 299,177.18
Receivables from Other Governments 69,101.30 384,630.23 453,731.53
Restricted Cash and Cash Equivalents 981,536.18 981,536.18
Total Assets 1,349,814.66 384,630.23 1,734,444.89
LIABILITIES AND FUND BALANCES
Liabilities:
Cash Deficit 325,141.14 325,141.14
Accounts Payable 42,939.99 117,750.20 160,690.19
Interfund Payables 2,496.84 231,040.89 233,537.73
Unearned Revenue 35,839.14 35,839.14
Total Liabilities 370,577.97 384,630.23 755,208.20
Fund Balances:
Restricted for:
Capital Reserve 490,885.24 490,885.24
Emergency Reserve 225,036.99 225,036.99
Maintenance Reserve 265,613.95 265,613.95
Assigned to:
Other Purposes 15,718.78 15,718.78
Designated by Board of Education for
Subsequent Year's Expenditures 356,550.00 356,550.00
Unassigned:
General Fund (374,568.27) (374,568.27)
Total Fund Balances 979,236.69 979,236.69
Total Liabilities and Fund Balances 1,349,814.66 384,630.23
Amounts reported for governmental activities in the statement of
net assets (A-1) are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds. The cost
of the assets is $17,720,397.85 and the accumulated depreciation
is $6,660,554.39. 11,059,843.46
Accounts Payable for subsequent Pension payment is not a
payable in the funds (151,656.00)
Deferred Outflows and Inflows of resources are applicable to future
periods and therefore are not reported in the funds.
Deferred Outflows of Resources Related to PERS
Pension Liability 1,125,718.00
Deferred Inflows of Resources Related to PERS
Pension Liability (802,536.00)
Long-term liabilities are not due and payable in the
current period and therefore are not reported as
liabilities in the funds. (3,847,162.28)
Net position of governmental activities 8,363,443.87
See Accompanying Notes to Financial Statements.
-24-
Exhibit B-2
BOROUGH OF HALEDON SCHOOL DISTRICT
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2018
Special Total
General Revenue Governmental
Fund Fund Funds
REVENUES
Local Sources:
Local Tax Levy 6,456,600.00 6,456,600.00
Tuition 3,808.50 3,808.50
Interest Earned on Emergency Reserve Funds 19.59 19.59
Interest Earned on Maintenance Reserve Funds 46.00 46.00
Interest Earned on Capital Reserve Funds 179.00 179.00
Interest Earned on Investments 583.35 583.35
Miscellaneous 122,837.71 122,837.71
Total - Local Sources 6,584,074.15 6,584,074.15
State Sources 9,580,089.58 589,326.37 10,169,415.95
Federal Sources 22,149.28 938,481.00 960,630.28
Total Revenues 16,186,313.01 1,527,807.37 17,714,120.38
EXPENDITURES
Current:
Regular Instruction 4,460,935.84 1,210,914.29 5,671,850.13
Special Education Instruction 1,520,505.93 1,520,505.93
Other Special Instruction 537,660.72 537,660.72
Other Instruction 96,777.59 96,777.59
Support Services and Undistributed Costs:
Tuition 248,568.56 248,568.56
Student & Instruction Related Services 1,320,223.62 316,893.08 1,637,116.70
School Administrative Services 494,740.79 494,740.79
General Administrative Services 327,529.81 327,529.81
Central & Admin. Inf. Technology 482,573.64 482,573.64
Plant Operations and Maintenance 801,090.70 801,090.70
Pupil Transportation 323,439.44 323,439.44
Unallocated Benefits 5,345,666.51 5,345,666.51
Capital Outlay 801,999.22 801,999.22
Transfer of Funds to Charter School 117,516.00 117,516.00
Total Expenditures 16,879,228.37 1,527,807.37 18,407,035.74
Excess (Deficiency) of Revenues
Over Expenditures (692,915.36) (692,915.36)
Net Change in Fund Balances (692,915.36) (692,915.36)
Fund Balance—July 1 1,672,152.05 1,672,152.05
Fund Balance—June 30 979,236.69 979,236.69
See Accompanying Notes to Financial Statements.
-25-
Exhibit B-3
BOROUGH OF HALEDON SCHOOL DISTRICT
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended June 30, 2018
Total net change in fund balances - governmental funds (from B-2) (692,915.36)
Amounts reported for governmental activities in the statement
of activities (A-2) are different because:
Capital outlays are reported in governmental funds as expenditures. However, in the statement of
activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense.
This is the amount by which capital outlays exceeded depreciation in the period.
Depreciation Expense (593,797.66)
Depreciable Capital Outlays 796,546.22 202,748.56
In the statement of activities, certain operating expenses, e.g., compensated absences (vacations) are
measured by the amounts earned during the year. In the governmental funds, however, expenditures
for these items are reported in the amount of financial resources used (paid). When the earned amount
exceeds the paid amount, the difference is reduction in the reconciliation (-); when the paid amount
exceeds the earned amount the difference is an addition to the reconciliation (+).
Increase/(Decrease) in Compensated Absences Payable 6,793.57
District pension contributions are reported as expenditures in the governmental funds when made.
However, per GASB No. 68 they are reported as deferred outflows of resources in the Statement of
Net Position because the reported net pension liability is measured a year before the District's report
date. Pension expense, which is the change in the net pension liability adjusted for changes in deferred
outflows and inflows of resources related to pensions, is reported in the Statement of Activities.
District Pension Contributions 148,682.00
Less: Pension Expense (290,017.00)
(Increase)/Decrease in Pension Expense (141,335.00)
Per GASB No. 68 Non-employer contributing entities are required to record an increases in revenue and
expense for On-behalf TPAF pension payments paid by the State of New Jersy on the Statement of
Activities that are in excess of those amounts reported in the fund financial statements
Increase in On-behalf State Aid TPAF Pension 2,339,923.00
Increase in On-behalf TPAF Pension Expense (2,339,923.00)
Per GASB No. 75 Non-employer contributing entities are required to record an increases in revenue and
expense for On-behalf TPAF post retirement medical payments paid by the State of New Jersy on the
Statement of Activities that are in excess of those amounts reported in the fund financial statements
Increase in On-behalf State Aid TPAF Post Retirement Medical 1,644,225.00
Increase in On-behalf TPAF Post Retirement Medical (1,644,225.00)
Change in net position of governmental activities (624,708.23)
See Accompanying Notes to Financial Statements.
-26-
Exhibit B-4
BOROUGH OF HALEDON SCHOOL DISTRICT
Statement of Net Position
Proprietary Funds
June 30, 2018
Business-Type Activities -
Enterprise Fund
After Care / Total
Food Service Summer Camp Enterprise
Program Program Fund
ASSETS
Current Assets:
Cash and Cash Equivalents 85,878.41 199,906.26 285,784.67
Accounts Receivable:
State 621.92 621.92
Federal 38,302.14 38,302.14
Other 5,517.87 5,517.87
Inventories 4,736.52 4,736.52
Total Current Assets 129,538.99 205,424.13 334,963.12
Noncurrent Assets:
Capital Assets:
Equipment 469,318.43 469,318.43
Less Accumulated Depreciation (236,887.52) (236,887.52)
Total Capital Assets (Net of Accumulated
Depreciation) 232,430.91 232,430.91
Total Assets 361,969.90 205,424.13 567,394.03
LIABILITIES
Current Liabilities:
Prepaid Revenue 76.13 76.13
Interfunds Payable 68,110.40 68,110.40
Total Current Liabilities 72,737.77 667.58 73,405.35
Total Liabilities 72,737.77 667.58 73,405.35
NET POSITION
Invested in Capital Assets Net of
Related Debt 232,430.91 232,430.91
Unrestricted 56,801.22 204,756.55 261,557.77
Total Net Position 289,232.13 204,756.55 493,988.68
See Accompanying Notes to Financial Statements.
-27-
Exhibit B-5
BOROUGH OF HALEDON SCHOOL DISTRICT
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Year Ended June 30, 2018
Business-Type Activities -
Enterprise Fund
After Care / Total
Food Service Summer Camp Enterprise
Program Program Fund
Operating Revenues:
Charges for Services:
Daily Sales - Non-Reimbursable Programs 25,399.05 25,399.05
Miscellaneous - Program Fees 301,170.04 301,170.04
Total Operating Revenues 25,399.05 301,170.04 326,569.09
Operating Expenses:
Cost of sales-reimbursable programs 289,924.23 289,924.23
Cost of sales-non-reimbursable programs 56,844.00 56,844.00
Salaries 165,824.31 279,388.32 445,212.63
Supplies and Materials 53,482.82 3,974.42 57,457.24
Employee Benefits 32,883.06 14,567.04 47,450.10
Purchased Professional and Technical Services 11,852.00 100.16 11,952.16
Cleaning Repair & Maintenance 20,320.69 20,320.69
Utilities 4,853.89 4,853.89
Other Purchased Services 65.00 65.00
Miscellaneous Expense 13,789.75 5,532.31 19,322.06
Transportation 1,205.00 1,205.00
Depreciation 17,681.82 17,681.82
Total Operating Expenses 667,521.57 304,767.25 972,288.82
Operating Income (Loss) (642,122.52) (3,597.21) (645,719.73)
Nonoperating Revenues (Expenses):
State Sources:
State School Lunch Program 7,935.52 7,935.52
Federal Sources:
National School Lunch Program 362,954.84 362,954.84
School Breakfast Program 103,176.77 103,176.77
After School Snack Program 30,422.48 30,422.48
HHFKA Program 8,877.12 8,877.12
U.S.D.A. Commodities:
Food Distribution Program 44,170.48 44,170.48
Interest and Investment Revenue 72.54 72.54
Total Nonoperating Revenues (Expenses) 557,609.75 557,609.75
Income (Loss) Before Contributions & Transfers (84,512.77) (3,597.21) (88,109.98)
Cancellation of Prior Year Receivable (2,063.14) (2,063.14)
Change in Net Position (86,575.91) (3,597.21) (90,173.12)
Total Net Position—Beginning 375,808.04 208,353.76 584,161.80
Total Net Position—Ending 289,232.13 204,756.55 493,988.68
See Accompanying Notes to Financial Statements.
-28-
Exhibit B-6
BOROUGH OF HALEDON SCHOOL DISTRICT
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2018
Business-Type Activities -
Enterprise Fund
After Care / Total
Food Service Summer Camp Enterprise
Program Program Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers 25,475.18 298,753.13 324,228.31
Receipts from Interfunds (10,697.95) (10,697.95)
Payments to Employees (29,749.01) (279,388.32) (309,137.33)
Payments for Employee Benefits (2,403.56) (14,567.04) (16,970.60)
Payments to Suppliers (30.00) (3,306.84) (3,336.84)
Payments for Miscellaneous Expenses (5,696.80) (6,837.47) (12,534.27)
Payments to Food Service Management Company (514,500.17) (514,500.17)
Net Cash Provided by (Used for) Operating Activities (537,602.31) (5,346.54) (542,948.85)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
State Sources 8,806.53 8,806.53
Federal Sources 529,404.96 529,404.96
Net Cash Provided by (Used for) Non-Capital Financing Activities 538,211.49 538,211.49
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchases of Capital Assets (48,090.36) (48,090.36)
Net Cash Provided by (Used for) Capital and Related Financing Activities (48,090.36) (48,090.36)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends 72.54 72.54
Net Cash Provided by (Used for) Investing Activities 72.54 72.54
Net Increase (Decrease) in Cash and Cash Equivalents (47,408.64) (5,346.54) (52,755.18)
Balances—Beginning of Year 133,287.05 205,252.80 338,539.85
Balances—End of Year 85,878.41 199,906.26 285,784.67
Reconciliation of Operating Income (Loss) to Net Cash Provided
(Used) by Operating Activities:
Operating Income (Loss) (642,122.52) (3,597.21) (645,719.73)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided
(Used for) Operating Activities
Depreciation and Net Amortization 17,681.82 17,681.82
Food Distribution Program Donated Commodities 44,170.48 44,170.48
(Increase) Decrease in Accounts Receivable, Net 59.79 59.79
(Increase) Decrease in Inventories (1,826.79) (1,826.79)
Increase (Decrease) in Accounts Payable 4,551.24 667.58 5,218.82
Increase (Decrease) in Other Current Liabilities 39,943.46 (2,476.70) 37,466.76
Total Adjustments 104,520.21 (1,749.33) 102,770.88
Net Cash Provided by (Used for) Operating Activities (537,602.31) (5,346.54) (542,948.85)
See Accompanying Notes to Financial Statements.
-29-
Exhibit B-7
BOROUGH OF HALEDON SCHOOL DISTRICT
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2018
Unemployment
Compensation Agency
Trust Fund Fund
ASSETS
Cash and Cash Equivalents 323,800.19 538,794.21
Interfund Receivable 4,745.31 2,496.84
Total Assets 328,545.50 541,291.05
LIABILITIES
Interfund Payable 4,771.20
Payable to Student Groups 25,575.45
Payroll Deductions and Withholdings 510,944.40
Total Liabilities 541,291.05
NET POSITION
Held in Trust for Unemployment
Claims and Other Purposes 328,545.50
See Accompanying Notes to Financial Statements.
-30-
Exhibit B-8
BOROUGH OF HALEDON SCHOOL DISTRICT
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2018
Unemployment
Compensation
Trust Fund
ADDITIONS
Contributions:
Plan Member 24,429.61
Total Contributions 24,429.61
Investment Earnings:
Interest 359.10
Net Investment Earnings 359.10
Total Additions 24,788.71
DEDUCTIONS
Quarterly Contribution Reports 7,101.48
Unemployment Claims 25,130.17
Total Deductions 32,231.65
Change in Net Position (7,442.94)
Net Position—Beginning of the Year 335,988.44
Net Position—End of the Year 328,545.50
See Accompanying Notes to Financial Statements.
-31-
NOTES TO THE FINANCIAL STATEMENTS
Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Board of Education of the Borough of Haledon School District have beenprepared in conformity with accounting principles generally accepted in the United States of America(GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is theaccepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the board’s accounting policies are described below.
A. Description of the School District and Reporting Entity:
The Board of Education (“Board”) of the Borough of Haledon School District (“District”) is aninstrumentality of the State of New Jersey, established to function as an educational institution. TheBorough of Haledon School District is a Type II district located in the County of Passaic, State of NewJersey. As a Type II district, the School District functions independently through a Board of Education. Theboard is comprised of nine members elected to three-year terms. The purpose of the District is to educatestudents in grades K-8. A superintendent is appointed by the Board and is responsible for the administrativecontrol of the District. Under existing statutes, the Board’s duties and powers include, but are not limitedto, the development and adoption of a school program; the establishment, organization and operation ofschools; and the acquisition, maintenance and disposition of school property.
The Board also has broad financial responsibilities, including the approval of the annual budget and theestablishment of a system of accounting and budgetary controls.
Governmental Accounting Standards Board publication, Codification of Governmental Accounting andFinancial Reporting Standards, Section 2100, “Defining the Financial Reporting Entity” establishesstandards to determine whether a governmental component unit should be included in the financial reportingentity. The basic criterion for inclusion or exclusion from the financial reporting entity is the exercise ofoversight responsibility over agencies, boards and commissions by the primary government. The exerciseof oversight responsibility includes financial interdependency and a resulting financial benefit or burdenrelationship, selection of governing authority, designation of management, ability to significantly influenceoperations, and accountability for fiscal matters. In addition, certain legally separate, tax-exempt entitiesthat meet specific criteria (i.e. benefit of economic resources, access/entitlement to economic resources, andsignificance) should be included in the financial reporting entity. The combined financial statements includeall funds of the District over which the Board exercises operating control. The District operates a K thru8 school located in the Borough of Haledon. There were no additional entities required to be included inthe reporting entity under the criteria as described above, in the current fiscal year. Furthermore, the Districtis not includable in any other reporting entity on the basis of such criteria.
B. Basis of Presentation:
The Board’s basic financial statements consist of District-wide statements, including a statement of netposition and a statement of activities, and fund financial statements which provide a more detailed level offinancial information.
-32-
Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
B. Basis of Presentation: (continued)
District-wide Financial Statements:
The statement of net position and the statement of activities display information about the Board as a whole. These statements include the financial activities of the overall District, except for the fiduciary funds. Thestatements distinguish between those activities of the Board that are governmental and those that areconsidered business-type activities.
The statement of net position presents the financial condition of the governmental and business-typeactivities of the Board at year-end. The statement of activities presents a comparison between directexpenses and program revenues for each program or function of the governmental activities and for thebusiness-type activities of the Board. Direct expenses are those that are specifically associated with aservice, program or department and therefore clearly identifiable to a particular function. Program revenuesinclude charges paid by the recipient of the goods or services offered by the program, grants andcontributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues which are not classified as program revenues are presented as general revenues of the Board, withcertain limited exceptions. The comparison of direct expenses with program revenues identifies the extentto which each business segment or governmental function is self-financing or draws from the generalrevenues of the Board.
Fund Financial Statements:
During the fiscal year, the School District segregates transactions related to certain School District functionsor activities in separate funds in order to aid financial management and to demonstrate legal compliance. The fund financial statements provide information about the District’s funds, including its fiduciary funds. Separate statements for each fund category - government, proprietary, and fiduciary - are presented. TheNew Jersey Department of Education (NJDOE) has elected to require New Jersey districts to treat eachgovernmental fund as a major fund in accordance with the option noted in GASB No. 34, paragraph 76. TheNJDOE believes that the presentation of all funds as major is important for public interest and to promoteconsistency among district financial reporting models. The various funds of the Board are grouped into thecategories governmental, proprietary and fiduciary.
GOVERNMENTAL FUNDS
Governmental funds are those through which most governmental functions of the Board arefinanced. Governmental fund reporting focuses on the sources, uses and balances of currentfinancial resources. Expendable assets are assigned to the various governmental funds according tothe purposes for which they may or must be used. Current liabilities are assigned to the fund fromwhich they will be paid. The difference between governmental fund assets and liabilities is reportedas fund balance. The following are the Board’s governmental funds:
-33-
Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
B. Basis of Presentation: (continued)
General Fund - The General Fund is the general operating fund of the Board. It is used to account forall financial resources except those required to be accounted for in another fund. Included are certainexpenditures for vehicles and movable instructional or noninstructional equipment which are classifiedin the Capital Outlay subfund.
As required by the New Jersey State Department of Education, the Board includes budgeted CapitalOutlay in this fund. Accounting principles generally accepted in the United States of America as theypertain to governmental entities state that General Fund resources may be used to directly financecapital outlays for long-lived improvements as long as the resources in such cases are derivedexclusively from unrestricted revenues.
Resources for budgeted capital outlay purposes are normally derived from State of New Jersey Aid,District taxes and appropriated fund balance. Expenditures are those that result in the acquisition ofor additions to fixed assets for land, existing buildings, improvements of grounds, construction ofbuildings, additions to or remodeling of buildings and the purchase of built-in equipment. Theseresources can be transferred from and to Current Expense by board resolution.
Special Revenue Fund - The Special Revenue Fund is used to account for the proceeds of specificrevenue from State and Federal Government, (other than major capital projects, Debt Service or theEnterprise Funds) and local appropriations that are legally restricted to expenditures for specifiedpurposes.
Capital Projects Fund - The Capital Projects Fund is used to account for all financial resources to beused for the acquisition or construction of major capital facilities (other than those financed byProprietary Funds). The financial resources are derived from sale of bonds, lease purchases and otherrevenues.
Debt Service Fund - The debt service fund is used to account for the accumulation of resources forand the payment of principal and interest on bonds issued to finance major property acquisition,construction and improvement programs.
PROPRIETARY FUNDS
The focus of Proprietary Fund measurement is upon determination of net income, changes in netposition, financial position and cash flows. The accounting principles generally accepted in the UnitedStates of America applicable are those similar to businesses in the private sector. Proprietary funds areclassified as enterprise or internal service; the Board has no internal service funds. The following isa description of the Proprietary Funds of the Board:
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
B. Basis of Presentation: (continued)
Enterprise Funds - The Enterprise Funds are utilized to account for operations that are financed andoperated in a manner similar to private business enterprises -- where the intent of the Board is that thecosts (i.e. expenses including depreciation and indirect costs) of providing goods or services to thestudents on a continuing basis be financed or recovered primarily through user charges; or, where theBoard has decided that periodic determination of revenues earned, expenses incurred, and/or netincome is appropriate for capital maintenance, public policy, management control, accountability orother purposes.
The Board's Enterprise Fund is comprised of the Food Service program and the Summer Camp/AfterCare program.
FIDUCIARY FUNDS
Fiduciary Fund - Fiduciary Fund reporting focuses on net position and changes in net position. TheFiduciary Funds are used to account for assets held by the Board on behalf of individuals, privateorganizations, other governments and/or other funds. Fiduciary Funds include UnemploymentCompensation Insurance, Student Activities Fund and Payroll Agency Fund.
C. Measurement Focus:
District-wide Financial Statements
The District-wide statements (i.e., the statement of net position and the statement of activities) are preparedusing the economic resources measurements focus and the accrual basis of accounting. All assets andliabilities associated with the operation of the Board are included on the statement of net position, exceptfor fiduciary funds.
Fund Financial Statements
All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balancesheet. The statement of revenues, expenditures and changes in fund balances reports on the sources (i.e.,revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of currentfinancial resources. This approach differs from the manner in which the governmental activities of theDistrict-wide financial statements are prepared. Governmental fund financial statements therefore includea reconciliation with brief explanations to better identify the relationship between the government-widestatements and the statements for governmental funds.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
C. Measurement Focus: (continued)
Like the District-wide statements, all proprietary fund types are accounted for on a flow of economicresources measurement focus. All assets and all liabilities associated with the operation of these funds areincluded on the statement of net position. The statement of changes in fund net position presents increases(i.e., revenues) and decreases (i.e., expenses) in net total assets. The statement of cash flows providesinformation about how the Board finances and meets the cash flow needs of its proprietary activities.
D. Basis of Accounting:
Basis of accounting determines when transactions are recorded in the financial records and reported on thefinancial statements. The District-wide financial statements and the financial statements of the proprietaryand fiduciary funds are prepared using the accrual basis of accounting. Governmental funds use themodified accrual basis of accounting. Differences in the accrual and the modified accrual basis ofaccounting arise in the recognition of revenue, the recording of deferred revenue, and in the presentation ofexpenses versus expenditures.
Revenues - Exchange and Non-exchange Transactions
Revenue resulting from exchange transactions, in which each party gives and receives essentially equalvalue, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenueis recorded in the fiscal year in which the resources are measurable and become available. Available meansthat the resources will be collected within the current fiscal year or are expected to be collected soon enoughthereafter to be used to pay liabilities of the current fiscal year.
Nonexchange transactions, in which the Board receives value without directly giving equal value in return,include property taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxesis recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements anddonations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibilityrequirements include timing requirements, which specify the year when the resources are required to be usedor the year when use is first permitted, matching requirements, in which the Board must provide localresources to be used for a specified purpose, and expenditure requirements, in which the resources areprovided to the Board on a reimbursement basis. On a modified accrual basis, revenue from nonexchangetransactions must also be available before it can be recognized. Under GAAP, in accordance with GASBNo. 33, Accounting and Financial Reporting for Nonexchange Transactions, the last state aid payment is notconsidered revenue to the school district if the state has not recorded the corresponding expenditure, eventhough state law dictates recording the revenue.
Under the modified accrual basis, the following revenue sources are considered to be both measurable andavailable at year-end: ad valorem property taxes, tuition, unrestricted grants and interest.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D. Basis of Accounting: (continued)
Expenses/Expenditures
On the accrual basis of accounting, expenses are recognized at the time they are incurred. The fair value ofdonated commodities used during the year is reported in the operating statement as an expense with a likeamount reported as donated commodities revenue.
The measurement of focus of governmental fund accounting is on decreases in net financial resources(expenditures) rather than expenses. Expenditures are generally recognized in the accounting period inwhich the related fund liability is incurred, if measurable. Allocations of cost, such as depreciation andamortization, are not recognized in the governmental funds.
E. Budgets/Budgetary Control:
Annual appropriated budgets are adopted in the spring of the preceding year for the general, and specialrevenue funds. The budgets are submitted to the county superintendents office for approval. Budgets areprepared using the modified accrual basis of accounting, except for the special revenue fund as describedlater. The legal level of budgetary control is established at line item accounts within each fund. Line itemaccounts are defined as the lowest (most specific) level of detail as established pursuant to the minimumchart of accounts referenced in N.J.A.C. 6A:23-2(g)1. Transfers of appropriations may be made by SchoolBoard resolution at any time during the fiscal year. The Board of Education did not make any materialsupplemental budgetary appropriations during the fiscal year.
Formal budgetary integration into the accounting system is employed as a management control device duringthe year. For governmental funds there are no substantial differences between the budgetary basis ofaccounting and accounting principles generally accepted in the United States of America with the exceptionof the legally mandated revenue recognition of the last state aid payment for budgetary purposes only andspecial revenue fund as noted below. Encumbrance accounting is also employed as an extension of formalbudgetary integration in the governmental fund types. Unencumbered appropriations lapse at fiscal year end.
The accounting records of the special revenue fund are maintained on the grant accounting budgetary basis. The grant accounting budgetary basis differs from GAAP in that the grant accounting budgetary basisrecognizes encumbrances as expenditures and also recognizes the related revenues, whereas the GAAP basisdoes not. Sufficient supplemental records are maintained to allow for the presentation of GAAP basisfinancial reports.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
F. Encumbrances:
Under encumbrance accounting purchase orders, contracts and other commitments for the expenditure ofresources are recorded to reserve a portion of the applicable appropriation. Open encumbrances ingovernmental funds, other than the special revenue fund, are reported as reservations of fund balances atfiscal year end as they do not constitute expenditures or liabilities but rather commitments related tounperformed contracts for goods and services.
Open encumbrances in the special revenue fund, for which the Board has received advances, are reflectedin the balance sheet as unearned revenues at fiscal year end.
The encumbered appropriation authority carries over into the next fiscal year. An entry will be made at thebeginning of the next fiscal year to increase the appropriation reflected in the certified budget by theoutstanding encumbrance amount as of the current fiscal year end.
G. Cash, Cash Equivalents and Investments:
Cash and cash equivalents include petty cash, change funds, cash in banks and all highly liquid investmentswith a maturity of three months or less at the time of purchase and are stated at cost plus accrued interest. U.S. Treasury and agency obligations and certificates of deposit with maturities of one year or less whenpurchased are stated at cost. All other investments are stated at fair value.
New Jersey school districts are limited as to the types of investments and types of financial institutions theymay invest in. New Jersey statute 18A:20-37 provides a list of permissible investments that may bepurchased by New Jersey school districts.
Additionally, the Board has adopted a cash management plan that requires it to deposit public funds in publicdepositories protected from loss under the provisions of the Governmental Unit Deposit Protection Act("GUDPA"). GUDPA was enacted in 1970 to protect Governmental Units from a loss of funds on depositwith a failed banking institution in New Jersey.
N.J.S.A. 17:9-41 et. seq. establishes the requirements for the security of deposits of governmental units. Thestatute requires that no governmental unit shall deposit public funds in a public depository unless such fundsare secured in accordance with the Act. Public depositories include Savings and Loan institutions, banks(both state and national banks) and savings banks the deposits of which are federally insured. All publicdepositories must pledge collateral, having a market value at least equal to five percent of the average dailybalance of collected public funds, to secure the deposits of Governmental Units. If a public depository fails,the collateral it has pledged, plus the collateral of all other public depositories, is available to pay the fullamount of their deposits to the Governmental Units.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
H. Tuition Receivable:
Tuition charges were established by the District based on estimated costs. The charges are subject toadjustment when final costs have been determined.
I. Tuition Payable:
Tuition charges were established by the receiving district. The charges are subject to adjustment when thefinal costs have been determined.
J. Inventories:
On District-wide financial statements, inventories are presented at cost, which approximates market on afirst-in, first-out basis and are expensed when used.
On fund financial statements inventories are valued at cost, which approximates market, using thefirst-in-first-out (FIFO) method. Inventories of proprietary funds consist of food and goods held for resale,as well as supplies, and are expensed when used.
K. Prepaid Items:
Payments made to vendors for services that will benefit periods beyond June 30, 2018, are recorded asprepaid items using the consumption method. A current asset for the prepaid amount is recorded at the timeof purchase and an expenditure/expense is reported in the year in which services are consumed.
L. Short-Term Interfund Receivables/Payables:
On fund financial statements, receivables and payables resulting from short-term interfund loans areclassified as “interfund receivables/payables.” These amounts are eliminated in the governmental andbusiness-type activities columns of the statement of net position, except for the net residual amounts duebetween governmental and business-type activities, which are presented as internal balances.
M. Capital Assets:
General capital assets are those assets not specifically related to activities reported in the enterprise fund. These assets generally result from expenditures in the governmental funds. These assets are reported in thegovernmental activities column of the district -wide statement of net position but are not reported in the fundfinancial statements. Capital assets utilized by the enterprise fund are reported both in the business-typeactivity column of the District-wide statement of net position and in the fund.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
M. Capital Assets: (continued)
All capital assets acquired or constructed during the year are recorded at actual cost. Donated fixed assetsare valued at their estimated fair market value on the date received. The capital assets acquired orconstructed prior to June 30, 1993 are valued at cost based on historical records or through estimationprocedures performed by an independent appraisal company. Donated capital assets are valued at theirestimated fair market value on the date received. The Board maintains a capitalization threshold of$2,000.00. The Board does not possess any infrastructure. Improvements are capitalized; the costs ofnormal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s lifeare not.
All reported capital assets except land and construction in progress are depreciated. Improvements aredepreciated over the remaining useful lives of the related capital assets. Depreciation is computed using thestraight-line method over the following useful lives:
Description
GovernmentalActivities
Estimated Lives
Business-TypeActivity
Estimated LivesSites and Improvements 20 years N/ABuildings and Improvements 7-50 years N/AFurniture, Equipment and Vehicles 5-20 years 5-20 years
N. Compensated Absences:
Compensated absences are those absences for which employees will be paid, such as vacation, sick leave,and sabbatical leave. A liability for compensated absences that are attributable to services already rendered,and that are not contingent on a specific event that is outside the control of the Board and its employees, isaccrued as the employees earn the rights to the benefits. Compensated absences that relate to future services,or that are contingent on a specific event that is outside the control of the Board and its employees, areaccounted for in the period in which such services are rendered or in which such events take place.
For the District-wide Statements, the current portion is the amount estimated to be used in the followingyear. In accordance with GAAP, for the governmental funds, in the Fund Financial Statements, all of thecompensated absences are considered long-term and therefore, are not a fund liability and represents areconciling item between the fund level and District-wide presentations.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
O. Unearned Revenue:
Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied.
Unearned revenue in the special revenue fund represents cash that has been received but not yet earned. SeeNote 1(F) regarding the special revenue fund.
P. Accrued Liabilities and Long-term Obligations:
All payables, accrued liabilities and long-term obligations are reported in the District-wide financialstatements.
In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timelymanner and in full from current financial resources, are reported as obligations of the funds. However,claims and judgements, compensated absences, special termination benefits and contractually requiredpension contributions that will be paid from governmental funds are reported as a liability in the fundfinancial statements only to the extent that they are due for payment in the current year. Bonds, long-termobligations, and capital leases that will be paid from governmental funds are recognized as a liability in thefund financial statements when due.
Q. Accounting and Financial Reporting for Pensions:
In fiscal year 2015, the District implemented GASB 68. This Statement amends GASB Statement No. 27.It improves accounting and financial reporting by state and local governments for pensions. It also improvesinformation provided by state and local government employers about financial support for pensions that isprovided by other entities. This Statement results from a comprehensive review of the effectiveness ofexisting standards of accounting and financial reporting for pensions with regard to providing decision usefulinformation, supporting assessments of accountability and interperiod equity, and creating additionaltransparency. This Statement replaces the requirement of Statement No. 27, Accounting for Pension by Stateand Local Governmental Employers, as well as the requirements of Statement No. 50, Pension Disclosures,as they relate to pensions that are provided through pension plans administered as trusts or equivalentarrangements that meet certain criteria. The requirements of Statements 27 and 50 remain applicable forpensions that are not covered by the scope of this Statement.
The District has also implemented GASB Statement 71, Pension Transition for Contributions madeSubsequent to the Measurement Date-an amendment to GASB No. 68. The objective of this Statement isto address an issue regarding application of the transition provisions of Statement No. 68, Accounting andFinancial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, madeby a state or local government employer or nonemployer contributing entity to a defined benefit pension planafter the measurement date of the government's beginning net pension liability.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Q. Accounting and Financial Reporting for Pensions: (continued
Statement 68 requires a state or local government employer (or nonemployer contributing entity in a specialfunding situation) to recognize a net pension liability measured as of a date (the measurement date) no earlierthan the end of its prior fiscal year. If a state or local government employer or nonemployer contributingentity makes a contribution to a defined benefit pension plan between the measurement date of the reportednet pension liability and the end of the government's reporting period, Statement 68 requires that thegovernment recognize its contribution as a deferred outflow of resources.
In addition, Statement 68 requires recognition of deferred outflows of resources and deferred inflows ofresources for changes in the net pension liability of a state or local government employer or nonemployercontributing entity that arise from other types of events. At transition to Statement 68, if it is not practicalfor an employer or nonemployer contributing entity to determine the amounts of all deferred outflows ofresources and deferred inflows of resources related to pensions, paragraph 137 of Statement 68 required thatbeginning balances for deferred outflows of resources and deferred inflows of resources not be reported.Consequently, if it is not practical to determine the amounts of all deferred outflows of resources anddeferred inflows of resources related to pensions, contributions made after the measurement date of thebeginning net pension liability could not have been reported as deferred outflows of resources at transition.This could have resulted in a significant understatement of an employer or nonemployer contributing entity'sbeginning net position and expense in the initial period of implementation.
This Statement amends paragraph 137 of Statement 68 to require that, at transition, a government recognizea beginning deferred outflow of resources for its pension contributions, if any, made subsequent to themeasurement date of the beginning net pension liability. Statement 68, as amended, continues to require thatbeginning balances for other deferred outflows of resources and deferred inflows of resources related topensions be reported at transition only if it is practical to determine all such amounts.
R. Deferred Outflows/Inflows of Resources:
In addition to assets, the statement of financial position will sometimes report a separate section for deferredoutflows of resources. This separate financial statement element, deferred outflows of resources, representsa consumption of net position that applies to a future period(s) and so will not be recognized as an outflowof resources (expense/expenditure) until then. Currently, the District has only one item that qualifies forreporting in this category, deferred amounts related to pension.
In addition to liabilities, the statement of financial position will sometimes report a separate section fordeferred inflows of resources. This separate financial statement element, deferred inflows of resources,represents an acquisition of net position that applies to a future period(s) and so will not be recognized asan inflow of resources (revenue) until that time. The District has one item that qualifies in this category,deferred amounts related to pension.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
S. Fund Balances:
Fund balance is divided into five classifications based primarily on the extent to which the Board is boundto observe constraints imposed upon the resources in the governmental funds. The classifications are asfollows:
• Nonspendable fund balance includes amounts that are not in a spendable form (inventory, forexample) or are required to be maintained intact (the principal of an endowment fund, forexample).
• Restricted fund balance includes amounts that can be spent only for the specific purposesstipulated by external resource providers (for example, grant providers), constitutionally,or through enabling legislation (that is, legislation that creates a new revenue source andrestricts its use). Effectively, restrictions may be changed or lifted only with the consent ofresource providers.
• Committed fund balance includes amounts that can be used only for the specific purposesdetermined by a formal action of the Board’s highest level of decision-making authority. Commitments may be changed or lifted only by the government taking the same formalaction that imposed the constraint originally.
• Assigned fund balance comprises amounts intended to be used by the Board for specificpurposes. Intent can be expressed by the governing body or by an official or body to whichthe governing body delegates the authority. In governmental funds other than the generalfund, assigned fund balance represents the amount that is not restricted or committed. Thisindicates that resources in other governmental funds are, at a minimum, intended to be usedfor the purpose of that fund.
• Unassigned fund balance is the residual classification for the general fund and includes allamounts not contained in the other classifications. Unassigned amounts are technicallyavailable for any purpose. If another governmental fund has a fund balance deficit, then itwill be reported as a negative amount in the unassigned classification in that fund. Positiveunassigned amounts will be reported only in the general fund.
T. Net Position:
Net position represent the difference between assets and deferred outflows of resources and liabilities anddeferred inflows of resources. Net position invested in capital assets, net of related debt consists of capitalassets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
T. Net Position: (continued)
acquisition, construction or improvement of those assets. Net position is reported as restricted when thereare limitations imposed on their use either through the enabling legislation adopted by the Board or throughexternal restrictions imposed by creditors, grantors or laws or regulations of other governments.
The Board applies restricted resources first when an expense is incurred for purposes for which bothrestricted and unrestricted net position are available.
U. Operating Revenues and Expenses:
Operating revenues are those revenues that are generated directly from the primary activity of the proprietaryfunds. For the Board, these revenues are sales for food service. Operating expenses are necessary costsincurred to provide the good or service that is the primary activity of the fund.
V. Extraordinary and Special Items:
Extraordinary items are transactions or events that are both unusual in nature and infrequent in occurrence. Special items are transactions or events that are within the control of the Board and that are either unusualin nature or infrequent in occurrence. Neither type of transaction occurred during the fiscal year.
W. Allocation of Indirect Expenses:
The District reports all direct expenses by function in the Statement of Activities. Direct expenses are thosethat are clearly identifiable with a function. Indirect expenses are allocated to functions but are reportedseparately in the Statement of Activities. Employee benefits, including the employer’s share of socialsecurity, workers compensation, and medical and dental benefits, were allocated based on salaries of thatprogram. TPAF on-behalf contributions and changes in compensated absences have not been allocated andhave been reported as unallocated benefits on the Statement of Activities. Depreciation expense, wherepracticable, is specifically identified by function and is included in the indirect expense column of theStatement of Activities. Depreciation expense that could not be attributed to a specific function isconsidered an indirect expense and is reported separately on the Statement of Activities as unallocateddepreciation. Interest on long-term debt is considered an indirect expense and is reported separately on theStatement of Activities.
X. Use of Estimates:
The preparation of financial statements in accordance with accounting principles generally accepted in theUnited States of America requires management to make estimates and assumptions that effect certainreports, amounts and disclosures. Accordingly, actual results could differ from those estimates.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Y. Recent Accounting Pronouncements:
The Government Accounting Standards Board issued GASB Statement No. 75, Accounting and FinancialReporting for Postemployment Benefits Other Than Pensions. This Statement applies to governmentemployers who provided OPEB plans to their employees and basically parallels GASB Statement 68 andreplaces GASB Statement 45. The Statement is effective for fiscal years beginning after June 15, 2017 andwas implemented by the District for the year ended June 30, 2018.
In March 2016, the Government Accounting Standards Board issued GASB Statement No. 81, IrrevocableSplit-Interest Agreements. The objective of this Statement is to improve accounting and financial reportingfor irrevocable split-interest agreements by providing recognition and measurement guidance for situationsin which a government is a beneficiary of the agreement. The District does not believe this Statement willhave any effect on future financial statements.
In November 2016, the Government Accounting Standards Board issued GASB Statement No. 83, CertainAsset Retirement Obligations. This Statement establishes criteria for determining the timing and pattern ofrecognition of a liability and a corresponding deferred outflows of resources for asset retirement obligations(AROs). The District does not believe this Statement will have any effect on future financial statements.
In January 2017, the Government Accounting Standards Board issued GASB Statement No. 84, FiduciaryActivities. This Statement establishes criteria for identifying fiduciary activities of all state and localgovernments. The focus on the criteria generally is on (1) whether a government is controlling the assetsof the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteriaare included to identify component units and postemployment benefit arrangements that are fiduciaryactivities. The District is currently evaluating the effects, if any, this Statement may have on future financialstatements.
In March 2017, the Government Accounting Standards Board issued GASB Statement No. 85, Omnibus2017, which addresses practice issues that have been identified during the implementation and applicationof certain GASB statements. This Statement addresses a variety of topics including issues relating toblending component units, goodwill, fair value measurement and application, and postemployment benefits. The District implemented this Statement for the year ended June 30, 2018.
In May 2017, the Governmental Accounting Standards Board issued GASB Statement No. 86, Certain DebtExtinguishment Issues, which improves consistency in accounting and financial reporting for in-substancedefeasance of debt by providing guidance for transactions in which cash and other monetary assets acquiredwith only existing resources—resources other than the proceeds of refunding debt—are placed in anirrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting andfinancial reporting for prepaid insurance on debt that is extinguished and notes to financial statements fordebt that is defeased in substance. The requirements of this Statement are effective for reporting periodsbeginning after June 15, 2017. The District had no transactions of this type for the year ended June 30, 2018.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
Y. Recent Accounting Pronouncements:
In June 2017, the Government Accounting Standards Board issued GASB Statement No. 87, Leases, whichimproves accounting and financial reporting for leases by governments. This Statement requires recognitionof certain lease assets and liabilities for leases that previously were classified as operating leases andrecognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the fundamental principle that leases arefinancings of the right to use an underlying asset. The requirements of this Statement are effective forreporting periods beginning after December 15, 2019. The District is currently reviewing what effect, if any,this Statement may have on future financial statements.
In March 2018, Government Accounting Standards Board issued GASB Statement No. 88, CertainDisclosures Related to Debt, Including Direct Borrowings and Direct Placement. The objective of thisStatement is to improve consistency in the information that is disclosed in notes to government financialstatements related to debt, including direct borrowings and direct placements, and to provide financialstatement users with additional essential information about debt. This Statement is effective for reportingperiods beginning after June 15, 2018. The District believes this may impact the disclosures relating to debtin the notes to the financial statements.
NOTE 2. CASH AND CASH EQUIVALENTS AND INVESTMENTS
Cash
Custodial Credit Risk - Deposits
Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not bereturned to it. The District’s policy is based on New Jersey Statutes requiring cash be deposited only in NewJersey based banking institutions that participate in New Jersey Governmental Depository Protection Act(GUDPA) or in qualified investments established in New Jersey Statutes 18A:20-37 that are treated as cashequivalents. As of June 30, 2018, $-0- of the District’s bank balance of $1,184,543.59 was exposed tocustodial credit risk.
Investments
Investment Rate Risk
The District does not have a formal investment policy that limits investment maturities as a means ofmanaging its exposure to fair value losses arising from increasing interest rates. However, New JerseyStatutes 18A:20-37 limits the length of time for most investments to 397 days.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 2. CASH AND CASH EQUIVALENTS AND INVESTMENTS, (continued)
Credit Risk
New Jersey Statutes 18A:20-37 limits school district investments to those specified in the Statutes. The typeof allowable investments are Bonds of the United States of America, bonds or other obligations of the schooldistrict or bonds or other obligations of the local unit or units within which the school district is located;obligations of federal agencies not exceeding 397 days; government money market mutual funds; the Stateof New Jersey Cash Management Plan; local government investment pools; or repurchase of fullycollateralized securities.
Concentration of Credit Risk
The District places no limit on the amount the District may invest in any one issuer.
NOTE 3. RECEIVABLES
Receivables at June 30, 2018, consisted of accounts and intergovernmental. All receivables are consideredcollectible in full. A summary of the principal items of intergovernmental receivables follows:
GovernmentalFund Financial
Statements
Proprietary/Enterprise
Fund
District WideFinancial
Statements
State Aid $69,101.30 $621.92 $69,723.22Federal Aid 382,679.00 38,302.14 420,981.14Other 1,951.23 5,517.87 7,469.10Interfunds 299,177.18 25.89Gross Receivables 752,908.71 44,441.93 498,199.35Less: Allowance for Uncollectibles Total Receivables, Net $752,908.71 $44,441.93 $498,199.35
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 4. INTERFUND BALANCES AND ACTIVITY
Balance due to/from other funds at June 30, 2018, consist of the following:
$25.89 Due to the General Fund from the Fiduciary Fund for interest earned
231,040.89 Due to the General Fund from the Special Revenue Fund for short term loan.
2,496.84 Due to the Fiduciary Fund from the General Fund for short term loan.
68,110.40 Due to the General Fund from the Enterprise Fund for Enterprise Fund expenditures
$301,674.02
It is anticipated that all interfunds will be liquidated during the fiscal year.
NOTE 5. CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2018 was as follows:
Balance
6/30/17 Additions Deductions
Balance
6/30/18
Governmental Activities
Capital Assets, Not Being Depreciated
Land $1,122,000.00 $ $ $1,122,000.00
Total Capital Assets, Not Being Depreciated 1,122,000.00 1,122,000.00
Capital Assets Being Depreciated
Land Improvements 689,572.72 37,710.00 727,282.72
Buildings and Improvements 13,574,888.68 482,858.58 14,057,747.26
Furniture, Equipment and Vehicles 1,537,390.23 275,977.64 1,813,367.87
Total Capital Assets, Being Depreciated 15,801,851.63 796,546.22 16,598,397.85
Less Accumulated Depreciation:
Land Improvements (271,217.11) (24,515.30) (295,732.41)
Buildings and Improvements (5,055,446.94) (354,031.19) (5,409,478.13)
Furniture, Equipment and Vehicles (740,092.68) (215,251.17) (955,343.85)
Total Accumulated Depreciation (6,066,756.73) (593,797.66) (6,660,554.39)
Total Capital Assets, Being Depreciated, Net 9,735,094.90 202,748.56 9,937,843.46
Governmental Activities Capital Assets, Net $10,857,094.90 $202,748.56 $ $11,059,843.46
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 5. CAPITAL ASSETS, (continued)
Balance
6/30/17 Additions Deductions
Balance
6/30/18
Business-Type Activity
Machinery and Equipment $421,228.07 $48,090.36 $ $469,318.43
Less Accumulated Depreciation for
Machinery and Equipment (219,205.70) (17,681.82) (236,887.52)
Business-Type Activity Capital Assets, Net $202,022.37 $30,408.54 $0.00 $232,430.91
Depreciation expense was charged to governmental functions as follows:
Regular Instruction $124,223.43
School Administrative Services 8,448.28
Plant Operations and Maintenance 8,513.46
Pupil Transportation 9,097.54
Unallocated Depreciation 443,514.95
$593,797.66
NOTE 6. LONG-TERM OBLIGATION ACTIVITY
Changes in long-term obligations for the year ended June 30, 2018 were as follows:
Balance
June 30, 2017 Issued Retired
Balance
June 30, 2018
Amounts
Due Within
One Year
Compensated Absences Payable $117,875.85 $10,298.89 ($17,092.46) $111,082.28 $
Net Pension Liability 4,825,930.00 (1,089,850.00) 3,736,080.00
$4,943,805.85 $10,298.89 ($1,106,942.46) $3,847,162.28 $0.00
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 6. LONG-TERM OBLIGATION ACTIVITY, (continued)
A. Bonds Payable:
Bonds are authorized in accordance with State law by the voters of the municipality through referendums. All bonds are retired in serial installments within the statutory period of usefulness. Bonds issued by theBoard are general obligation bonds.
As of June 30, 2018, the Board had no outstanding bonds payable.
B. Bonds Authorized But Not Issued:
As of June 30, 2018, the Board has no authorized but not issued bonds.
C. Capital Leases Payable:
The District had no capital leases outstanding at June 30, 2018.
NOTE 7. OPERATING LEASES:
The District has commitments to lease copiers under an operating lease that expires in September of 2019. Total operating lease payments made during the year ended June 30, 2018 were $16,164.00. Futureminimum lease payments are as follows:
YearEnding Amount
6/30/19 $16,164.006/30/20 2,694.00
Total future minimum lease payments $18,858.00
NOTE 8. PENSION PLANS
Description of Plans - All required employees of the District are covered by either the Public Employees'Retirement System or the Teachers' Pension and Annuity Fund which have been established by state statuteand are administered by the New Jersey Division of Pension and Benefits (Division). According to the Stateof New Jersey Administrative Code, all obligations of both Systems will be assumed by the State of NewJersey should the Systems terminate. The Division issues a publicly available financial report that includesthe financial statements and required supplementary information for the Public Employees RetirementSystem and the Teachers' Pension and Annuity Fund. These reports may be obtained by writing to theDivision of Pensions and Benefits, PO Box 295, Trenton, New Jersey, 08625 or reports can be accessed onthe internet at: http://www.state.nj.us/treasury/pensions/annrpts_archive.htm.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 8. PENSION PLANS, (continued)
Teachers' Pension and Annuity Fund (TPAF) - The Teachers' Pension and Annuity Fund was establishedas of January 1, 1955, under the provisions of N.J.S.A. 18A:66 to provide retirement benefits, death,disability and medical benefits to certain qualified members. The Teachers' Pension and Annuity Fund isconsidered a cost-sharing multiple-employer plan with a special funding situation, as under current statute,all employer contributions are made by the State of New Jersey on behalf of the District and the system'sother related non-contributing employers. Membership is mandatory for substantially all teachers ormembers of the professional staff certified by the State Board of Examiners, and employees of theDepartment of Education who have titles that are unclassified, professional and certified.
Benefits Provided
The vesting and benefit provisions are set by N.J.S.A. 18A:66. TPAF provides retirement, death anddisability benefits. All benefits vest after ten years of service, except for medical benefits, which vest after25 years of service or under the disability provisions of TPAF. Members are fully vested for their owncontributions and, after three years of service credit, become vested for 2% of related interest earned on thecontributions. In the case of death before retirement, members' beneficiaries are entitled to full interestcredited to the members' accounts.
The following represents the membership tiers for TPAF:
Tier Definition
1 Members who were enrolled prior to July 1, 2007 2 Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008 3 Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 2010 4 Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011 5 Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits of 1/55 of final average salary for each year of service credit is available to Tiersth
1 and 2 members upon reaching age 60 and to Tier 3 members upon reaching age 62. Service retirementbenefits of 1/60 of final average salary for each year of service credit is available to Tier 4 members uponth
reaching age 62 and to Tier 5 members upon reaching age 65. Early retirement benefits are available toTiers 1 and 2 members before reaching age 60, to Tiers 3 and 4 before age 62 with 25 or more years ofservice credit and Tier 5 with 30 or more years of service credit before age 65. Benefits are reduced by afraction of a percent for each month that a member retires prior to the age at which a member can receivefull early retirement benefits in accordance with their respective tier. Tier 1 members can receive anunreduced benefit from age 50 to age 60 if they have at least 25 years of service. Deferred retirement isavailable to members who have at least 10 years of service credit and have not reached the service retirementage for the respective tier.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 8. PENSION PLANS: (continued)
Public Employees' Retirement System (PERS) - The Public Employees' Retirement System (PERS) wasestablished as of January 1, 1955 under the provisions of N.J.S.A. 43:15A to provide retirement, death,disability and medical benefits to certain qualified members. The Public Employees' Retirement System isa cost-sharing multiple-employer plan. Membership is mandatory for substantially all full-time employeesof the State of New Jersey or any county, municipality, school district, or public agency, provided theemployee is not required to be a member of another state-administered retirement system or other state orlocal jurisdiction.
Benefits Provided
The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides retirement, death anddisability benefits. All benefits vest after ten years of service, except for medical benefits, which vest after25 years of service or under the disability provisions of PERS.
The following represents the membership tiers for PERS:
Tier Definition
1 Members who were enrolled prior to July 1, 2007 2 Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008 3 Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 2010 4 Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011 5 Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits of 1/55 of final average salary for each year of service credit is available to Tiersth
1 and 2 members upon reaching age 60 and to Tier 3 members upon reaching age 62. Service retirementbenefits of 1/60 of final average salary for each year of service credit is available to Tier 4 members uponth
reaching age 62 and to Tier 5 members upon reaching age 65. Early retirement benefits are available toTiers 1 and 2 members before reaching age 60, to Tiers 3 and 4 before age 62 with 25 or more years ofservice credit and Tier 5 with 30 or more years of service credit before age 65. Benefits are reduced by afraction of a percent for each month that a member retires prior to the age at which a member can receivefull early retirement benefits in accordance with their respective tier. Tier 1 members can receive anunreduced benefit from age 50 to age 60 if they have at least 25 years of service. Deferred retirement isavailable to members who have at least 10 years of service credit and have not reached the service retirementage for the respective tier.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 8. PENSION PLANS: (continued)
Defined Contribution Retirement Program
Prudential Financial jointly administers the DCRP investments with the NJ Division of Pensions andBenefits. If an employee is ineligible to enroll in the PERS or PFRS, the employee may be eligible to enrollin the DCRP. DCRP provides eligible members with a tax-sheltered, defined contribution retirementbenefit, along with life insurance and disability coverage. Vesting is immediate upon enrollment formembers of the DCRP.
The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, issues publiclyavailable financial reports that include the financial statements and required supplementary information ofthe DCRP. The financial reports may be obtained by writing to the State of New Jersey, Department of theTreasury, Division of Pensions and Benefits, PO Box 295, Trenton, New Jersey, 08625-0295.
Employers are required to contribute at an actuarially determined rate. Employee contributions are basedon percentages of 5.50% for DCRP of employees' annual compensation, as defined. The DCRP wasestablished July 1, 2007, under the provisions of Chapter 92, P.L. 2007 and expanded under the provisionsof Chapter 89, P.L. 2008. Employee contributions for DCRP are matched by a 3% employer contribution.
Contributions Requirements Fund Based Statements
The Board’s contribution to PERS AND DCRP, equal to the required contributions for each year as reportedin the fund based statements, were as follows:
YearEnding PERS DCRP6/30/18 $148,682.00 $2,017.276/30/17 144,757.00 1,770.81 6/30/16 135,663.00 1,774.09
The State of New Jersey contribution to TPAF (paid on-behalf of the District) for normal and post retirementbenefits have been included in the fund-based statements as revenues and expenditures in accordance withGASB 24, paragraphs 7 through 13, as follows:
YearEnding
PensionContributions
Post-RetirementMedical
ContributionsNCGI
Premium
Long-TermDisabilityLiability
6/30/18 $1,065,654.00 $704,986.00 $25,861.00 $1,848.00
6/30/17 797,457.00 688,538.00 28,894.00 2,502.00
6/30/16 516,332.00 645,434.00 25,720.00
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 8. PENSION PLANS: (continued)
In addition, the post-retirement medical benefits are included in the district-wide financial statements.
Also, in accordance with N.J.S.A. 18A:66-66 the State of New Jersey reimbursed the Board $559,442.83during the year ended June 30, 2018 for the employer’s share of social security contributions for TPAFmembers as calculated on their base salaries. This amount has been included in the fund-based statementsas revenues and expenditures in accordance with GASB 24, paragraphs 7 through 13.
ACCOUNTING AND FINANCIAL REPORTING FOR PENSION IN THE DISTRICT-WIDESTATEMENTS PER - GASB NO. 68
Public Employees Retirement System (PERS)
At June 30, 2018, the District had a liability of $3,736,080.00 for its proportionate share of the PERS netpension liability. The net pension liability was measured as of June 30, 2017, and the total pension liabilityused to calculate the net pension liability was determined by an actuarial valuation as of that date. TheDistrict's proportion of the net pension liability was based on a projection of the District's long-term shareof contributions to the pension plan relative to the projected contributions of all participating governmentalentities, actuarially determined. At June 30, 2017, the District's proportion was 0.0160495565 percent,which was a decrease of 0.0002448297 percent from its proportion measured as of June 30, 2016.
For the year ended June 30, 2018, the District recognized pension expense of $290,017.00. At June 30,2018, deferred outflows of resources and deferred inflows of resources related to PERS from the followingsources:
DeferredOutflows ofResources
DeferredInflows ofResources
Changes of assumptions $752,691.00 $749,932.00Difference in actual and expected experience 87,972.00Net difference between projected and actual earnings on pension plan investments
25,440.00
Changes in proportion and differences between District contributions and proportionate share of contributions 107,959.00 52,604.00District contributions subsequent to the measurement date 151,656.00
Total $1,125,718.00 $802,536.00
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 8. PENSION PLANS: (continued)
The $151,656.00 reported as deferred outflows of resources related to pensions resulting from school districtcontributions subsequent to the measurement date (i.e. for the school year ending June 30, 2018, the planmeasurement date is June 30, 2017) will be recognized as a reduction of the net pension liability in the yearended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows ofresources related to pensions (excluding changes in proportion) will be recognized in pension expense asfollows:
Year ended June 30:2018 $87,9512019 132,7202020 80,4212021 (106,961)2022 (77,960)
Changes in Proportion
The previous amounts do not include employer specific deferred outflows of resources and deferred inflowsof resources related to changes in proportion. These amounts should be recognized (amortized) by eachemployer over the average of the expected remaining service lives of all plan members, which is 5.48, 5.57,5.72 and 6.44 years for 2017, 2016, 2015 and 2014 amounts, respectively.
Additional Information
Local Group Collective balances at June 30, 2017 and June 30, 2016 are as follows:
June 30, 2017 June 30, 2016
Collective deferred outflows of resources $6,424,455,842 $8,685,338,380
Collective deferred inflows of resources 5,700,625,981 870,133,595
Collective net pension liability 23,278,401,588 29,617,131,759
District's Proportion 0.0160495565% 0.0162943862%
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 8. PENSION PLANS: (continued)
Actuarial Assumptions
The total pension liability for the June 30, 2017 measurement date was determined by an actuarial valuationas of July 1, 2016, which rolled forward to June 30, 2017. This actuarial valuation used the followingassumptions, applied to all periods in the measurement.
Inflation 2.25 PercentSalary Increases: Through 2026 1.65-4.15 Percent (based on age) Thereafter 2.65-5.15 Percent (based on age)
Investment Rate of Return 7.00 Percent
The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarialexperience study for the period July 1, 2011 to June 30, 2014. It is likely that future experience will notexactly conform to these assumptions. To the extent that actual experience deviates from these assumptions,the emerging liabilities may be higher or lower than anticipated. The more the experience deviates, thelarger the impact on future financial statements.
Mortality Rates
Pre-retirement mortality rates were based on the RP-2000 Employee Pre-retirement Mortality Table for maleand female active participants. For State employees, mortality tables are set back 4 years for males andfemales. For local employees, mortality tables are set back 2 years for males and 7 years for females. Inaddition, the tables provide for future improvements in mortality from the base year of 2013 using agenerational approach based on the plans actuary’s modified MP-2014 projection scale. Post-retirementmortality rates were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback1 year for males and females) for service retirements and beneficiaries of former members and a one yearstatic projection based on mortality improvement Scale AA. In addition, the tables for service retirementsand beneficiaries of former members provide for future improvements in mortality from the base year of2013 using a generational approach based on the plan actuary’s modified MP-2014 projection scale. Disability retirement rates used to value disabled retirees were based on the RP-2000 Disabled MortalityTable (set back 3 years for males and set forward 1 year for females).
Long-Term Rate of Return
In accordance with State statute, the long-term expected rate of return on plan investments (7.00% atJune 30, 2017) is determined by the State Treasurer, after consultation with the Directors of the Division ofInvestments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long-termexpected rate of return was determined using a building block method in which best-estimate ranges ofexpected future real rates of return (expected returns, net of pension plan investment expense and inflation)
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 8. PENSION PLANS: (continued)
are developed for each major asset class. These ranges are combined to produce the long-term expected rateof return by weighting the expected future real rates of return by the target asset allocation percentage andby adding expected inflation. Best estimates of arithmetic real rates of return for each major asset classincluded in PERS's target asset allocation as of June 30, 2017 are summarized in the following table:
Asset ClassTarget
Allocation
Long-TermExpected RealRate of Return
Absolute return/risk mitigation 5.00% 5.51%Cash equivalents 5.50% 1.00%U.S. Treasuries 3.00% 1.87%Investment grade credit 10.00% 3.78%Public high yield 2.50% 6.82%Global diversified credit 5.00% 7.10%Credit oriented hedge funds 1.00% 6.60%Debt related private equity 2.00% 10.63%Debt related real estate 1.00% 6.61%Private real asset 2.50% 11.83%Equity related real estate 6.25% 9.23%U.S. equity 30.00% 8.19%Non-U.S. developed markets equity 11.50% 9.00%Emerging markets equity 6.50% 11.64%Buyouts/venture capital 8.25% 13.08%
Discount Rate
The discount rate used to measure the total pension liability was 5.00% as of June 30, 2017. This singleblended discount rate was based on the long-term expected rate of return on pension plan investments of7.00% and a municipal bond rate of 3.58% as of June 30, 2017 based on the Bond Buyer GO 20-BondMunicipal Bond Index, which includes tax-exempt general obligation municipal bonds with an averagerating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed thatcontributions from plan members will be made at the current member contribution rates and thatcontributions from employers will be made based on the contribution rate in the most recent fiscal year. TheState employer contributed 40% of the actuarially determined contributions and the local employerscontributed 100% of their actuarially determined contributions. Based on those assumptions, the plan'sfiduciary net position was projected to be available to make projected future benefit payments of current planmembers through 2040. Therefore, the long-term expected rate of return on plan investments was appliedto projected benefit payments through 2040 and the municipal bond rate was applied to projected benefitpayments after that date in determining the total pension liability.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 8. PENSION PLANS: (continued)
Sensitivity of the Collective Net Pension Liability to Changes in the Discount Rate
The following presents the collective net pension liability of the participating employers as of June 30,2017, respectively, calculated using the discount rate as disclosed above as well as what the collectivenet pension liability would be if it was calculated using a discount rate that is 1 -percentage point loweror 1- percentage-point higher than the current rate:
June 30, 2017 1%
Decrease4.00%
At CurrentDiscount Rate
5.00%
1%Increase6.00%
District's proportionate share of the pension liability $2,987,284 $3,736,080 $4,634,861
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issuedFinancial Report for the State of New Jersey Public Employees Retirement System (PERS).
Teachers Pensions and Annuity Fund (TPAF)
The employer contributions for local participating employers are legally required to be funded by the Statein accordance with N.J.S.A 18:66-33. Therefore, these local participating employers are considered to bein a special funding situation as defined by GASB Statement No. 68 and the State is treated as anonemployer contributing entity. Since the local participating employers do not contribute directly to theplan (except for employer specific financed amounts), there is no net pension liability or deferred outflowsor inflows to report in the financial statements of the local participating employers. However, the notes tothe financial statements of the local participating employers must disclose the portion of the nonemployercontributing entities' total proportionate share of the net pension liability that is associated with the localparticipating employer.
The portion of the TPAF Net Pension Liability that was associated with the District recognized at June 30,2018 was as follows:
Net Pension Liability:District's proportionate share $ -0- State's proportionate share
associated with the District 49,533,608$49,533,608
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 8. PENSION PLANS: (continued)
The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculatethe net pension liability was determined by an actuarial valuation as of June 30, 2016 rolled forward toJune 30, 2017. The net pension liability associated with the District was based on a projection of theDistrict's long-term share of contributions to the pension plan relative to the projected contributions of allparticipating school districts and the State, actuarially determined. At June 30, 2017, the proportion of theTPAF net pension liability associated with the District was 0.0734662699%.
For the year ended June 30, 2018, the District recognized on-behalf pension expense and revenue of$3,431,438 for contributions provided by the State in the District-Wide Financial Statements.
Actuarial Assumptions
The total pension liability for the June 30, 2017 measurement date was determined by an actuarial valuationas of July 1, 2016, which was rolled forward to June 30, 2017. This actuarial valuation used the followingactuarial assumptions, applied to all periods in the measurement:
Inflation rate 2.25%Salary Increases: 2012-2021 Varies based on experience Thereafter Varies based on experience
Investment Rate of Return 7.00%
Mortality Rates
Pre-retirement, post-retirement and disabled mortality rates were based on the experience of TPAF membersreflecting mortality improvement on a generational basis based on a 60-year average of Social Security datafrom 1953 to 2013.
The actuarial assumptions used in the July 1, 2016 valuation were based on the results of an actuarialexperience study for the period July 1, 2012 to June 30, 2015.
Long-Term Expected Rate of Return
In accordance with State statute, the long-term expected rate of return on plan investments (7.00% atJune 30, 2017) is determined by the State Treasurer, after consultation with the Directors of the Division ofInvestments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long-termexpected rate of return was determined using a building block method in which best-estimate ranges of
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 8. PENSION PLANS: (continued)
expected future real rates of return (expected returns, net of pension plan investment expense and inflation)are developed for each major asset class. These ranges are combined to produce the long-term expected rateof return by weighting the expected future real rates of return by the target asset allocation percentage andby adding expected inflation. Best estimates of arithmetic real rates of return for each major asset classincluded in TPAF's target asset allocation as of June 30, 2017 are summarized in the following table:
Asset ClassTarget
Allocation
Long-TermExpected RealRate of Return
Absolute return/risk mitigation 5.00% 5.51%Cash equivalents 5.50% 1.00%U.S. Treasuries 3.00% 1.87%Investment grade credit 10.00% 3.78%Public high yield 2.50% 6.82%Global diversified credit 5.00% 7.10%Credit oriented hedge funds 1.00% 6.60%Debt related private equity 2.00% 10.63%Debt related real estate 1.00% 6.61%Private real asset 2.50% 11.83%Equity related real estate 6.25% 9.23%U.S. equity 30.00% 8.19%Non-U.S. developed markets equity 11.50% 9.00%Emerging markets equity 6.50% 11.64%Buyouts/venture capital 8.25% 13.08%
Discount Rate
The discount rate used to measure the total pension liability was 4.25% and 3.22% as of June 30, 2017 and2016, respectively. This single blended discount rate was based on the long-term expected rate of return onpension plan investments of 7.00%, and a municipal bond rate of 3.58% and 2.85% as of June 30, 2017 and2016, respectively, based on the Bond Buyer Go 20-Bond Municipal Bond Index which includes tax-exemptgeneral obligation municipal bonds with an average rating of AA/Aa or higher. The projection of cash flowsused to determine the discount rate assumed that contributions from plan members will be made at thecurrent member contribution rates and that contributions from employers will be made based on thecontribution rate in the most recent fiscal year. The State contributed 40% of the actuary determinedcontributions. Based on those assumptions, the plan's fiduciary net position was projected to be availableto make projected future benefit payments of current plan members through 2036. Therefore, the long-termexpected rate of return on plan investments was applied to projected benefit payments through 2036, andthe municipal bond rate was applied to projected benefit payments after that date in determining the totalpension liability.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 8. PENSION PLANS: (continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
Because the District's proportionate share of the net pension liability is zero, consideration of potentialchanges in the discount rate is not applicable to the District.
NOTE 9. POST-RETIREMENT BENEFITS:
General Information about the OPEB Plan
Plan Description and Benefits Provided
Chapter 384 of Public Laws 1987 and Chapter 6 of Public Laws 1990 required Teachers’ Pension andAnnuity Fund (TPAF) and the Public Employees’ Retirement System (PERS), respectively, to fund post-retirement medical benefits for those State employees who retire after accumulating 25 years of creditedservice or on a disability retirement. P.L. 2007, c.103 amended the law to eliminate the funding of post-retirement medical benefits through the TPAF and PERS. It created separate funds outside of the pensionplans for the funding and payment of post-retirement medical benefits for retired State employees and retirededucational employees. The cost of these benefits is funded through contributions by the State in accordancewith P.L. 1994 Chapter 62. Funding of post-retirement medical premiums changed from a prefunding basisto a pay-as-you-go basis beginning in fiscal year 1994.
The State is also responsible for the cost attributable to P.L. 1992 Chapter 126, which provides employerpaid health benefits to members of PERS and the Alternate Benefit Program who retired from a board ofeducation or county college with 25 years of service.
The School Employees Health Benefits Program (SEHBP) Act is found in New Jersey Statutes Annotated,Title 52, Article 17.25 et. seq. Rules governing the operation and administration of the program are foundin Title 17, Chapter 9 of the New Jersey Administrative Code.
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB No. 75.
Employees covered by benefits terms. At June 30, 2017, the following employees were covered by thebenefit terms:
TPAF participant retirees:
As of June 30, 2017, there were 112,966 retirees receiving post-retirement medicalbenefits, and the State Contributed $1.39 billion on their behalf.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 9. POST-RETIREMENT BENEFITS: (continued)
PERS participant retirees:
The State paid $238.9 million toward Chapter 126 benefits for 209,913 eligible retiredmembers in Fiscal Year 2017.
Total OPEB Liability
The State, a nonemployer contributing entity, is the only entity that has a legal obligation to make employercontributions to OPEB for qualified retired PERS and TPAF participants. The LEA's proportionate sharepercentage determined under paragraphs 193 and 203 through 205 of GASB No. 75 is zero percent. Accordingly, the LEA did not recognize any portion of the collective OPEB liability on the Statement of NetPosition. Accordingly, the following OPEB liability note information is reported at the State's level for theState Health Benefit Local Education Retired Employee's Plan and is not specific to the board ofeducation/board of trustees, and could be found at https://www.state.nj.us/treasury/pensions/GASBnoticesOPEB.
The portion of the OPEB Liability that was associated with the District recognized at June 30, 2018 was asfollows:
OPEB Liability:District's proportionate share $ -0- State's proportionate share
associated with the District 31,486,293
$31,486,293
Actual Assumptions and Other Imputes
The total OPEB liability in the June 30, 2017 actuarial valuation reported by the State in the State's Reportof Total Nonemployer OPEB Liability for the State Health Benefit Local Education Retired Employee's Planwas determined using the following actuarial assumptions and other inputs, applied to all periods includedin the measurement, unless otherwise specified:
Total Nonemployer OPEB Liability
The total nonemployer OPEB liability as of June 30, 2017 was determined by an actuarial valuation as ofJune 30, 2016, which was rolled forward to June 30, 2017. The total nonemployer OPEB liability as ofJune 30, 2016 was determined by an actuarial valuation as of June 30, 2016. The actuarial assumptions varyfor each plan member depending on the pension plan the member is enrolled in. This actuarial valuationused the following actuarial assumptions, applied to all periods in the measurement:
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 9. POST-RETIREMENT BENEFITS: (continued)
Inflation rate 2.50%
TPAF/ABP PERS Salary increases: Through 2026 1.55 - 4.55%
based on yearsof service
2.15 - 4.15%based on age
Thereafter 2.00 - 5.45%based on years
of service
3.15 - 5.15%based on age
Preretirement mortality rates were based on the RP-2014 Headcount-Weighted Health EmployeeMale/Female mortality table with fully generational mortality improvement projections from the central yearusing the MP-2017 scale. Postretirement mortality rates were based on the RP-2014 Headcount-WeightedHealth Annuitant Male/Female mortality table with fully generational improvement projections from thecentral year using the MP-2017 scale. Disability mortality was based on the RP-2014 Headcount-WeightedDisabled Male/Female mortality table with fully generational improvement projections from the central yearusing the MP-2017 scale.
The actuarial assumptions used in the June 30, 2016 valuation were based on the results of actuarialexperience studies for the periods July 1, 2012 – June 30, 2015, July 1, 2010 – June 30, 2013, and July 1,2011 – June 30, 2014 for TPAF and PFRS, respectively.
(a) Health Care Trend Assumptions
For pre-Medicare preferred provider organization (PPO) medical benefits, this amount initially is 5.9%and decreases to a 5.0% long-term trend rate after nine years. For self-insured post-65 PPO medicalbenefits, the trend rate is 4.5%. For health maintenance organization (HMO) medical benefits, thetrend rate is initially 5.9% and decreases to a 5.0% long-term trend rate after nine years. Forprescription drug benefits, the initial trend rate is 10.5% decreasing to a 5.0% long-term trend rate aftereight years. For the Medicare Part B reimbursement, the trend rate is 5.0%. The Medicare Advantagetrend rate is 4.5% and will continue in all future years.
(b) Discount Rate
The discount rate for June 30, 2017 and 2016 was 3.58% and 2.85%, respectively. This representsthe municipal bond return rate as chosen by the Division. The source is the Bond Buyer Go 20-BondMunicipal Bond Index, which includes tax-exempt general obligation municipal bonds with anaverage rating of AA/Aa or higher.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 9. POST-RETIREMENT BENEFITS: (continued)
Sensitivity of Total Nonemployer OPEB Liability to Changes in the Discount Rate
Because the District's proportionate share of the OPEB liability is zero, consideration of potential changesin the discount rate is not applicable to the District.
Sensitivity of the Total Nonemployer OPEB Liability to Changes in the Healthcare Cost Trend Rates:
Because the District's proportionate share of the OPEB liability is zero, consideration of potential changesin the healthcare cost trend rates is not applicable to the District.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB:
For the year ended June 30, 2018, the board of education/board of trustees recognized on-behalf OPEBexpense of $2,349,211 in the district-wide financial statements as determined by the State as the total OPEBliability for benefits provided through a defined benefit OPEB plan that is not administered through a trustthat meets the criteria in paragraph 4 of GASB No. 75 and in which there is a special funding situation.
In accordance with GASB No. 75, the Borough of Haledon School District proportionate share of schoolretirees OPEB is zero; therefore, there is no recognition of the allocation of proportionate share of deferredoutflows of resources and deferred inflows of resources.
NOTE 10. DEFERRED COMPENSATION
The Board offers its employees a choice of various deferred compensation plans created in accordance withInternal Revenue Code Section 403(b). The plans, which are administered by CPI Qualified PlanConsultants, Inc., permits participants to defer a portion of their salary until future years. Amounts deferredunder the plans are not available to employees until termination, retirement, death or unforeseeableemergency. The plan participants are as follows:
Equitable Lincoln Investment Planning VALIC
NOTE 11. RISK MANAGEMENT
The District is exposed to various risks of loss related to general liability, automobile coverage; theft of,damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. TheBoard has obtained insurance coverage to guard against these events to minimize the exposure to the Districtshould they occur.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 11. RISK MANAGEMENT, (continued)
Property and Liability Insurance - The District is currently a member of the Suburban Essex JointInsurance Fund (the “Fund”). The Fund provides it’s members with General Liability, Auto Liability,Property, Employee Benefits Liability, Worker’s Compensation and Employer Liability Insurance. TheFund is a risk-sharing public entity risk pool that is both an insured and self-administered group of SchoolDistrict’s established for the purpose of providing low-cost insurance coverage for their respective membersin order to keep insurance costs at a minimum. Each member appoints an official to represent theirrespective entity for the purpose of creating a governing body from which officers for the Funds are elected.
As a member of the Fund, the District could be subject to supplemental assessments in the event ofdeficiencies. If the assets of the Funds were to be exhausted, members would become responsible for theirrespective shares of the Fund’s liabilities. However, this Fund has fully reinsured the exposures above alllimits subscribed to by its members. The Funds can declare and distribute dividends to members upon arrivalof the State of New Jersey Department of Insurance. These distributions are divided among the membersin the same ratio as their individual assessment related to the total assessment of the membership body.
Financial statements for the Funds are available at the office of the Fund’s administrator, PERMA, 9Campus Drive, Suite 16, Parsippany, NJ 07054.
There has been no significant reduction in insurance coverage from the previous year nor have there beenany settlements in excess of insurance coverages.
New Jersey Unemployment Compensation Insurance - The District has elected to fund its New JerseyUnemployment Compensation Insurance under the "Benefit Reimbursement Method". Under this plan, theDistrict is required to reimburse the New Jersey Unemployment Trust Fund for benefits paid to its formeremployees and charged to its account with the State. The District is billed quarterly for amounts due to theState. The following is a summary of District contributions, employee contributions, reimbursements to theState for benefits paid and the ending balance of the District's expendable trust fund for the current and prioryear:
Fiscal Year
DistrictContributions/
InterestEarnings
EmployeeContributions
AmountReimbursed
EndingBalance
2017-2018 $359.10 $24,429.61 $32,231.65 $328,545.502016-2017 199.00 26,876.03 23,550.01 335,988.442015-2016 133.69 22,592.05 20,338.17 332,463.42
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 12. FUND BALANCE APPROPRIATED
General Fund [Exhibit B-1] - Of the $979,236.69 General Fund fund balance at June 30, 2018, $15,718.78is reserved for encumbrances; $0.00 is reserved as excess surplus in accordance with N.J.S.A. 18A:7F-7;($0.00 of the total reserve for excess surplus has been appropriated and included as anticipated revenue forthe year ended June 30, 2019); $490,885.24 has been reserved in the Capital Reserve Account; $265,613.95has been reserved in the Maintenance Reserve Account; $225,036.99 has been reserved in the EmergencyReserve Account; $356,550.00 has been appropriated and included as anticipated revenue for the year endedJune 30, 2019; and $(374,568.27) is unreserved and undesignated.
NOTE 13. CALCULATION OF EXCESS SURPLUS
In accordance with N.J.S.A. 18A:7F-7 as amended, the designation for Reserved Fund Balance -- ExcessSurplus is a required calculation pursuant to the New Jersey Comprehensive Educational Improvement andFinancing Act of 1996 (CEIFA). New Jersey school districts are required to reserve General Fund fundbalance at the fiscal year end of June 30 if they did not appropriate a required minimum amount as budgetedfund balance in their subsequent years' budget. There was no excess fund balance at June 30, 2018.
NOTE 14. CAPITAL RESERVE ACCOUNT
A capital reserve account was established by the Borough of Haledon School District by inclusion of $1.00on October 3, 2000 for the accumulation of funds for use as capital outlay expenditures in subsequent fiscalyears. The capital reserve account is maintained in the general fund and its activity is included in the generalfund annual budget.
Funds placed in the capital reserve account are restricted to capital projects in the district’s approved LongRange Facilities Plan (LRFP). A district may increase the balance in the capital reserve by appropriatingfunds in the annual general fund budget certified for taxes or by transfer by board resolution at year end ofany unanticipated revenue or unexpended line-item appropriation amounts, or both. A district may alsoappropriate additional amounts when the express approval of the voters has been obtained either by aseparate proposal at budget time or by a special question at one of the four special elections authorizedpursuant to N.J.S.A. 19:60-2. Pursuant to N.J.A.C. 6A:23A-14.1(g), the balance in the account cannot at anytime exceed the local support costs of uncompleted capital projects in its approved LRFP.
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 14. CAPITAL RESERVE ACCOUNT, (continued)
The activity of the capital reserve for the July 1, 2017 to June 30, 2018 fiscal year is as follows:
Beginning balance, July 1, 2017 $1,081,111.56
Interest Earnings $179.00Deposits - Board resolution - June 12, 2018 186,293.47
186,472.471,267,584.03
Withdrawals: Budgeted Withdrawal 776,698.79
Ending balance, June 30, 2018 $490,885.24
The balance in the capital reserve account at June 30, 2018 does not exceed the balance of local supportcosts of uncompleted capital projects in its LFRP.
NOTE 15. MAINTENANCE RESERVE ACCOUNT
A maintenance reserve account was established by Board of Education resolution adopted June 24, 2008. The account is maintained in the general fund. The maintenance reserve account is used to accumulatedfunds for the required maintenance of a facility in accordance with the EFCRA (N.J.S.A. 18A:7G-9). EFCFA requires that upon district completion of a school facilities project, the district must submit a planfor the maintenance of that facility. All such plans must include a provision for a maintenance reserve fund.
The activity of the maintenance reserve for the July 1, 2017 to June 30, 2018 fiscal years is as follows:
Beginning balance, July 1, 2017 $315,567.95
Interest Earnings 46.00 315,613.95
Withdrawals: Budgeted Withdrawal 50,000.00
Ending balance, June 30, 2018 $265,613.95
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 16. EMERGENCY RESERVE ACCOUNT
The emergency reserve is used to accumulate funds in accordance with N.J.S.A. 18A:7F-41c(1) to financeunanticipated general fund expenditures required for a thorough and efficient education. Unanticipatedmeans reasonably unforeseeable and shall not include additional costs caused by poor planning. Themaximum balance permitted at any time in this reserve is the greater of $250,000 or 1% of the general fundbudget not to exceed one million dollars. Deposits may be made to the emergency reserve account by boardresolution at year end of any unanticipated revenue or unexpended line item appropriation or both. Withdrawals from the reserve require the approval of the commissioner unless the withdrawal is necessaryto meet an increase in total health care costs in excess of four percent.
Beginning balance, July 1, 2017 $225,017.40
Interest Earnings 19.59
Ending balance, June 30, 2018 $225,036.99
NOTE 17. INVENTORY
Inventory in the Food Service Fund at June 30, 2018 consisted of the following:
Food $3,739.95Supplies 996.57
$4,736.52
The United States Department of Agriculture (USDA) commodity portion of the Food Service Fundinventory consists of food donated by USDA. It is valued at estimated market prices by USDA. The amountof unused commodities at year end is reported on Schedule A as deferred revenue.
NOTE 18. DEFICIT IN UNASSIGNED FUND BALANCES
The District has a deficit fund balance of $374,568.27 in the General Fund as of June 30, 2018 as reportedin the fund statements (modified accrual basis). N.J.S.A. 18A:22-44.2 provides that in the event a stateschool aid payment is not made until the following school budget year, districts must record the delayed oneor more June state aid payments as revenue, for budget purposes only, in the current school budget year. The bill provides legal authority for school districts to recognize this revenue in the current budget year. For
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Borough of Haledon School DistrictNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2018
NOTE 18. DEFICIT IN UNASSIGNED FUND BALANCES, (continued)
intergovernmental transactions, GASB Statement No. 33 requires that recognition (revenue, expenditure,asset, liability) should be in symmetry, i.e., if one government recognizes an asset, the other governmentrecognizes a liability. Since the State is recording the June state aid payment(s) in the subsequent fiscal year,the school district cannot recognize the June state aid payment(s) (on the GAAP financial statements) untilthe year the State records the payable. Due to the timing difference of recording the June state aidpayment(s), the General Fund balance deficit does not alone indicate that the District is facing financialdifficulties.
Pursuant to N.J.S.A. 18A:22-44.2 any negative unreserved, undesignated general fund balance that isreported as a direct result from a delay in the June payment(s) of state aid until the following fiscal year, isnot considered in violation of New Jersey statute and regulation nor in need of corrective action. TheDistrict deficit in the GAAP funds statements of $374,568.27 is less than the last state aid payment of$707,163.00.
NOTE 19. CONTINGENT LIABILITIES
Grant Programs - The school district participates in federally assisted grant programs. These programs aresubject to program compliance audits by the grantors or their representatives. The school district ispotentially liable for expenditures which may be disallowed pursuant to the terms of these grant programs. Management is not aware of any material items of noncompliance which would result in the disallowanceof program expenditures.
Litigation - The District is a party defendant in some lawsuits, none of a kind unusual for a school districtof its size and scope of operation. In the opinion of the Board's Attorney the potential claims against theDistrict not covered by insurance policies would not materially affect the financial condition of the District.
NOTE 20. SUBSEQUENT EVENTS
The Board has evaluated subsequent events through January 22, 2019, the date which the financial statementswere available to be issued and no other items were noted for disclosure.
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REQUIRED SUPPLEMENTARY
INFORMATION - PART II
BUDGETARY COMPARISON SCHEDULES
Exhibit C-1
BOROUGH OF HALEDON SCHOOL DISTRICT
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2018
Budget
Original Transfers/ Final Variance
Budget Adjustments Budget Actual Final to Actual
REVENUES:
Local Sources:
Local Tax Levy 6,456,600.00 6,456,600.00 6,456,600.00
Tuition from Other LEAs Within the State 50,000.00 50,000.00 3,808.50 (46,191.50)
Interest Earned on Emergency Reserve Funds 65.00 65.00 19.59 (45.41)
Interest Earned on Maintenance Reserve Funds 90.00 90.00 46.00 (44.00)
Interest Earned on Capital Reserve Funds 270.00 270.00 179.00 (91.00)
Interest on Investments 583.35 583.35
Miscellaneous 72,650.00 72,650.00 122,837.71 50,187.71
Total - Local Sources 6,579,675.00 6,579,675.00 6,584,074.15 4,399.15
State Sources:
Categorical Special Education Aid 600,886.00 600,886.00 600,886.00
Equalization Aid 5,977,868.00 5,977,868.00 6,313,556.00 335,688.00
Categorical Security Aid 114,210.00 114,210.00 114,210.00
Categorical Transportation Aid 10,669.00 10,669.00 10,669.00
Under Adequacy Aid 135,963.00 135,963.00 135,963.00
Per Pupil Growth Aid 9,830.00 9,830.00 9,830.00
PARCC Readiness 9,830.00 9,830.00 9,830.00
Professional Learning Community Aid 10,230.00 10,230.00 10,230.00
Extraordinary Aid 28,826.00 28,826.00
Other State Aid - Reimburse Nonpublic School Transportation 13,340.00 13,340.00
Lead Testing 1,411.75 1,411.75
On-behalf Teachers Pension and Annuity Fund (non-budgeted) 1,065,654.00 1,065,654.00
On-behalf TPAF NCGI Premium (non-budgeted) 25,861.00 25,861.00
On-behalf TPAF Post Retirement Medical (non-budgeted) 704,986.00 704,986.00
On-behalf TPAF - LTDI 1,848.00 1,848.00
TPAF Social Security (Reimbursed - Non-Budgeted) 559,442.83 559,442.83
Total - State Sources 6,869,486.00 6,869,486.00 9,606,543.58 2,737,057.58
Federal Sources:
Medicaid Reimbursement 22,762.00 22,762.00 22,149.28 (612.72)
Total - Federal Sources 22,762.00 22,762.00 22,149.28 (612.72)
TOTAL REVENUES 13,471,923.00 13,471,923.00 16,212,767.01 2,740,844.01
EXPENDITURES:
Current Expense:
Regular Programs - Instruction
Kindergarten - Salaries of Teachers 470,285.00 32,155.00 502,440.00 502,439.44 0.56
Grades 1-5 - Salaries of Teachers 2,200,372.00 66,323.00 2,266,695.00 2,261,591.85 5,103.15
Grades 6-8 - Salaries of Teachers 1,484,803.00 36,807.41 1,521,610.41 1,516,809.38 4,801.03
Regular Programs - Home Instruction:
Salaries of Teachers 8,000.00 2,553.00 10,553.00 10,552.50 0.50
Purchased Professional-Educational Services 500.00 (500.00)
Regular Programs - Undistributed Instruction
Purchased Professional-Educational Services 5,000.00 7,910.00 12,910.00 12,909.96 0.04
Purchased Technical Services 3,695.00 3,695.00 3,690.00 5.00
Other Purchased Services (400-500 series) 31,205.00 (145.00) 31,060.00 31,028.30 31.70
General Supplies 142,439.48 (47,231.00) 95,208.48 92,931.86 2,276.62
Textbooks 31,000.00 (20,290.00) 10,710.00 10,708.74 1.26
Other Objects 8,676.00 9,640.00 18,316.00 18,273.81 42.19
TOTAL REGULAR PROGRAMS - INSTRUCTION 4,382,280.48 90,917.41 4,473,197.89 4,460,935.84 12,262.05
SPECIAL EDUCATION - INSTRUCTION
Learning and/or Language Disabilities:
Salaries of Teachers 276,147.00 2,894.00 279,041.00 279,040.98 0.02
Other Salaries for Instruction 90,606.00 (16,500.00) 74,106.00 73,959.60 146.40
Purchased Professional-Educational Services 15,000.00 36,349.00 51,349.00 51,268.53 80.47
General Supplies 1,500.00 (973.41) 526.59 440.03 86.56
Textbooks 1,000.00 (1,000.00)
Total Learning and/or Language Disabilities 384,253.00 20,769.59 405,022.59 404,709.14 313.45
Behavioral Disabilities:
Salaries of Teachers 141,635.00 2,710.00 144,345.00 144,345.00
Purchased Professional-Educational Services 15,000.00 510.00 15,510.00 14,659.75 850.25
General Supplies 1,887.55 (1,000.00) 887.55 739.02 148.53
Textbooks 800.00 (800.00)
Total Behavioral Disabilities 159,322.55 1,420.00 160,742.55 159,743.77 998.78
Resource Room/Resource Center:
Salaries of Teachers 655,557.00 (33,500.00) 622,057.00 622,052.70 4.30
Other Salaries for Instruction 16,765.00 3,219.00 19,984.00 19,983.60 0.40
General Supplies 3,750.00 (1,535.00) 2,215.00 2,161.67 53.33
Textbooks 1,000.00 (1,000.00)
Total Resource Room/Resource Center 677,072.00 (32,816.00) 644,256.00 644,197.97 58.03
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Exhibit C-1
BOROUGH OF HALEDON SCHOOL DISTRICT
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2018
Budget
Original Transfers/ Final Variance
Budget Adjustments Budget Actual Final to Actual
Autism:
Salaries of Teachers 134,337.00 (4,300.00) 130,037.00 129,849.40 187.60
Other Salaries for Instruction 99,303.00 (49,300.00) 50,003.00 48,495.00 1,508.00
Purchased Professional-Educational Services 30,000.00 22,200.00 52,200.00 27,803.48 24,396.52
General Supplies 2,000.00 (1,100.00) 900.00 877.80 22.20
Textbooks 1,000.00 (1,000.00)
Total Autism 266,640.00 (33,500.00) 233,140.00 207,025.68 26,114.32
Preschool Disabilities - Full-Time:
Salaries of Teachers 92,822.00 (36,800.00) 56,022.00 55,203.99 818.01
Other Salaries for Instruction 35,878.00 (8,878.00) 27,000.00 26,964.97 35.03
Purchased Professional-Educational Services 15,000.00 6,200.00 21,200.00 19,540.41 1,659.59
General Supplies 5,000.00 (4,800.00) 200.00 150.00 50.00
Total Preschool Disabilities - Full-Time 148,700.00 (44,278.00) 104,422.00 101,859.37 2,562.63
Home Instruction:
Salaries of Teachers 8,000.00 (4,000.00) 4,000.00 2,970.00 1,030.00
Purchased Professional-Educational Services 1,000.00 (1,000.00)
Total Home Instruction 9,000.00 (5,000.00) 4,000.00 2,970.00 1,030.00
TOTAL SPECIAL EDUCATION - INSTRUCTION 1,644,987.55 (93,404.41) 1,551,583.14 1,520,505.93 31,077.21
Basic Skills/Remedial - Instruction
Salaries of Teachers 310,429.00 18,850.00 329,279.00 328,419.35 859.65
Textbooks 1,300.00 (1,250.00) 50.00 50.00
Total Basic Skills/Remedial - Instruction 311,729.00 17,600.00 329,329.00 328,419.35 909.65
Bilingual Education - Instruction
Salaries of Teachers 233,341.00 (24,300.00) 209,041.00 208,445.00 596.00
General Supplies 1,000.00 1,000.00 796.37 203.63
Textbooks 500.00 (500.00)
Total Bilingual Education - Instruction 234,841.00 (24,800.00) 210,041.00 209,241.37 799.63
School-Sponsored Cocurricular Activities - Instruction
Salaries 59,303.00 59,303.00 58,534.61 768.39
Purchased Services (300-500 series) 6,000.00 (5,808.00) 192.00 192.00
Supplies and Materials 4,790.00 4,790.00 4,660.65 129.35
Other Objects 1,189.00 1,189.00 1,189.00
Total School-Sponsored Cocurricular Activities - Instruction 65,303.00 171.00 65,474.00 64,384.26 1,089.74
School-Sponsored Athletics - Instruction
Salaries 20,000.00 20,000.00 18,900.00 1,100.00
Purchased Services (300-500 series) 7,000.00 (2,150.00) 4,850.00 4,850.00
Supplies and Materials 7,087.00 1,746.00 8,833.00 8,643.33 189.67
Total Other Instructional Programs - Instruction 34,087.00 (404.00) 33,683.00 32,393.33 1,289.67
TOTAL INSTRUCTION 6,673,228.03 (9,920.00) 6,663,308.03 6,615,880.08 47,427.95
Undistributed Expenditures - Instruction:
Tuition to Other LEAs Within the State - Regular 8,161.00 8,161.00 8,148.71 12.29
Tuition to Private Schools for the Disabled - Within State 234,764.00 5,678.85 240,442.85 240,419.85 23.00
Total Undistributed Expenditures - Instruction: 234,764.00 13,839.85 248,603.85 248,568.56 35.29
Undistributed Expend. - Attend. & Social Work
Salaries 48,480.00 290.00 48,770.00 48,768.36 1.64
Supplies and Materials 1,345.00 (350.00) 995.00 991.66 3.34
Total Undistributed Expend. - Attend. & Social Work 49,825.00 (60.00) 49,765.00 49,760.02 4.98
Undist. Expend. - Health Services
Salaries 124,016.00 (50,441.00) 73,575.00 73,574.40 0.60
Purchased Professional and Technical Services 16,783.00 (1,716.85) 15,066.15 13,863.85 1,202.30
Other Purchased Services (400-500 series) 150.00 150.00 150.00
Supplies and Materials 5,000.00 (500.00) 4,500.00 4,443.10 56.90
Other Objects 800.00 (700.00) 100.00 85.00 15.00
Total Undistributed Expenditures - Health Services 146,599.00 (53,207.85) 93,391.15 92,116.35 1,274.80
Undist. Expend. - Speech, OT, PT, & Related Services
Salaries 333,252.00 (73,194.00) 260,058.00 259,868.88 189.12
Purchased Professional - Educational Services 62,979.20 46,416.00 109,395.20 109,390.25 4.95
Supplies and Materials 5,000.00 (1,600.00) 3,400.00 3,388.00 12.00
Total Undist. Expend. - Speech, OT, PT, & Related Services 401,231.20 (28,378.00) 372,853.20 372,647.13 206.07
Undist. Expenditures - Guidance
Salaries of Other Professional Staff 186,110.00 (18,734.00) 167,376.00 167,364.54 11.46
Other Purchased Prof. and Tech. Services 5,000.00 (4,300.00) 700.00 700.00
Supplies and Materials 30,000.00 (25,000.00) 5,000.00 4,977.75 22.25
Total Undist. Expenditures - Guidance 221,110.00 (48,034.00) 173,076.00 173,042.29 33.71
Undist. Expend. - Child Study Team
Salaries of Other Professional Staff 464,018.00 (6,722.00) 457,296.00 456,719.48 576.52
Salaries of Secretarial and Clerical Assistants 54,920.00 1,610.00 56,530.00 56,529.12 0.88
Purchased Professional - Educational Services 430.00 11,590.00 12,020.00 12,020.00
Other Purchased Prof. and Tech. Services 10,000.00 (6,972.00) 3,028.00 2,995.00 33.00
Misc Pur Serv (400-500 series O/than Resid Costs) 482.00 482.00 481.75 0.25
Supplies and Materials 4,000.00 4,000.00 3,957.35 42.65
Other Objects 150.00 150.00 150.00
Total Undist. Expend. - Child Study Team 533,518.00 (12.00) 533,506.00 520,832.70 12,673.30
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Exhibit C-1
BOROUGH OF HALEDON SCHOOL DISTRICT
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2018
Budget
Original Transfers/ Final Variance
Budget Adjustments Budget Actual Final to Actual
Undist. Expend. - Improvement of Instructional Services
Salaries of Other Professional Staff 5,000.00 (4,993.00) 7.00 7.00
Supplies and Materials 130.00 (110.00) 20.00 20.00
Total Undist. Expend. - Improvement of Inst. Services 5,130.00 (5,103.00) 27.00 27.00
Undist. Expend. - Educational Media Serv./Sch. Library
Salaries 89,468.00 (1,600.00) 87,868.00 87,785.00 83.00
Supplies and Materials 17,321.79 (2,390.00) 14,931.79 14,895.38 36.41
Total Undist. Expend. - Educational Media Serv./Sch. Library 106,789.79 (3,990.00) 102,799.79 102,680.38 119.41
Undist. Expend. - Instructional Staff Training Serv.
Purchased Professional - Educational Services 4,200.00 4,200.00 4,200.00
Other Purchased Services (400-500 series) 10,000.00 100.00 10,100.00 9,144.75 955.25
Total Undist. Expend. - Instructional Staff Training Serv. 10,000.00 4,300.00 14,300.00 9,144.75 5,155.25
Undist. Expend. - Supp. Serv. - General Administration
Salaries 61,495.00 2,035.00 63,530.00 63,528.13 1.87
Legal Services 25,000.00 (5,950.00) 19,050.00 16,715.75 2,334.25
Audit Fees 20,500.00 3,000.00 23,500.00 23,390.00 110.00
Other Purchased Professional Services 123,287.60 (1,867.00) 121,420.60 118,653.08 2,767.52
Communications/Telephone 70,000.00 (10,942.00) 59,058.00 52,018.49 7,039.51
BOE Other Purchased Services 3,500.00 1,668.00 5,168.00 5,125.70 42.30
Other Purchased Services (400-500 series) 38,000.00 761.00 38,761.00 36,601.92 2,159.08
General Supplies 500.00 (477.00) 23.00 23.00
Miscellaneous Expenditures 2,000.00 2,303.00 4,303.00 4,293.79 9.21
BOE Membership Dues and Fees 6,400.00 935.00 7,335.00 7,202.95 132.05
Total Undist. Expend. - Supp. Serv. - General Administration 350,682.60 (8,534.00) 342,148.60 327,529.81 14,618.79
Undist. Expend. - Support Serv. - School Administration
Salaries of Principals/Assistant Principals 337,740.00 5,520.00 343,260.00 343,257.84 2.16
Salaries of Secretarial and Clerical Assistants 119,466.00 9,558.00 129,024.00 129,022.92 1.08
Other Purchased Services (400-500 series) 9,000.00 (6,694.00) 2,306.00 2,275.00 31.00
Supplies and Materials 15,066.29 15,066.29 14,421.39 644.90
Other Objects 10,000.00 (4,000.00) 6,000.00 5,763.64 236.36
Total Undist. Expend. - Support Serv. - School Administration 491,272.29 4,384.00 495,656.29 494,740.79 915.50
Undist. Expend. - Central Services
Salaries 52,425.00 129.00 52,554.00 52,553.04 0.96
Purchased Professional Services 195,500.00 (1,540.00) 193,960.00 193,939.00 21.00
Purchased Technical Services 200.00 200.00 134.78 65.22
Misc. Purchased Services (400-500 series) 6,200.00 (6,188.57) 11.43 11.43
Supplies and Materials 6,800.00 950.00 7,750.00 7,733.99 16.01
Miscellaneous Expenditures 495.00 (110.00) 385.00 175.00 210.00
Total Undist. Expend. - Central Services 261,620.00 (6,759.57) 254,860.43 254,535.81 324.62
Undist. Expend. - Admin. Info. Tech
Purchased Technical Services 186,645.00 2,596.00 189,241.00 189,241.00
Other Purchased Services (400-500 series) 1,500.00 600.00 2,100.00 1,921.00 179.00
Supplies and Materials 40,000.00 (1,304.00) 38,696.00 36,875.83 1,820.17
Total Undist. Expend. - Admin. Info. Tech 228,145.00 1,892.00 230,037.00 228,037.83 1,999.17
Undist. Expend. - Required Maint. for School Facilities
Salaries 74,678.00 18,273.00 92,951.00 91,433.51 1,517.49
Cleaning, Repair and Maintenance Services 100,840.00 (24,038.00) 76,802.00 73,701.61 3,100.39
General Supplies 26,351.55 (9,308.00) 17,043.55 15,623.95 1,419.60
Undist. Expend. - Required Maint. for School Facilities 201,869.55 (15,073.00) 186,796.55 180,759.07 6,037.48
Undist. Expend. - Custodial Services
Salaries 217,943.00 5,413.00 223,356.00 222,625.69 730.31
Cleaning, Repair and Maintenance Services 66,410.00 (222.00) 66,188.00 66,081.94 106.06
Other Purchased Property Services 7,500.00 15,913.00 23,413.00 8,014.82 15,398.18
Insurance 74,312.00 27.50 74,339.50 74,290.58 48.92
General Supplies 47,500.00 (3,165.50) 44,334.50 44,236.62 97.88
Energy (Energy and Electricity) 124,192.00 (23,776.00) 100,416.00 97,517.98 2,898.02
Other Objects 1,500.00 (1,053.00) 447.00 374.00 73.00
Energy (Natural Gas) 38,000.00 (3,689.00) 34,311.00 34,310.23 0.77
Total Undist. Expend. - Custodial Services 577,357.00 (10,552.00) 566,805.00 547,451.86 19,353.14
Undist. Expend. - Security
Salaries 43,050.00 105.00 43,155.00 43,155.00
Purchased Professional and Technical Services 24,970.00 212.00 25,182.00 25,180.80 1.20
General Supplies 5,000.00 (390.00) 4,610.00 4,543.97 66.03
Total Undist. Expend. - Security 73,020.00 (73.00) 72,947.00 72,879.77 67.23
Total Undist. Expend. - Oper & Maint. Of Plant 852,246.55 (25,698.00) 826,548.55 801,090.70 25,457.85
Undist. Expend. - Student Transportation Services
Salaries for Pupil Trans (Between Home and School)-Regular 61,906.00 (2,900.00) 59,006.00 58,795.19 210.81
Cleaning, Repair and Maintenance Services 7,500.00 950.00 8,450.00 8,390.55 59.45
Contracted Services (Other than Bet Home and School)-Vendors 15,000.00 31,278.00 46,278.00 46,277.80 0.20
Contracted Services (Special Ed. Students)-ESCs & CTSAs 96,257.00 45,322.00 141,579.00 141,156.89 422.11
Contracted Services - Aid in Lieu Payments 55,000.00 10,119.00 65,119.00 65,118.08 0.92
General Supplies 6,000.00 (2,050.00) 3,950.00 3,700.93 249.07
Total Undist. Expend. - Student Transportation Services 241,663.00 82,719.00 324,382.00 323,439.44 942.56
-72-
Exhibit C-1
BOROUGH OF HALEDON SCHOOL DISTRICT
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2018
Budget
Original Transfers/ Final Variance
Budget Adjustments Budget Actual Final to Actual
UNALLOCATED BENEFITS
Social Security Contributions 145,000.00 7,806.57 152,806.57 150,949.38 1,857.19
Other Retirement Contributions - PERS 147,500.00 3,227.00 150,727.00 150,726.64 0.36
Other Retirement Contributions - Regular 2,250.00 (232.00) 2,018.00 2,017.27 0.73
Workmen's Compensation 88,510.00 (1,121.00) 87,389.00 87,387.65 1.35
Health Benefits 2,713,728.00 (75,000.00) 2,638,728.00 2,570,793.73 67,934.27
Tuition Reimbursement 26,000.00 1.00 26,001.00 26,000.01 0.99
Other Employee Benefits 4,000.00 (2,000.00) 2,000.00 2,000.00
TOTAL UNALLOCATED BENEFITS 3,126,988.00 (67,318.43) 3,059,669.57 2,987,874.68 71,794.89
On-behalf Teachers Pension and Annuity Fund (non-budgeted) 1,065,654.00 (1,065,654.00)
On-behalf TPAF NCGI Premium (non-budgeted) 25,861.00 (25,861.00)
On-behalf TPAF Post Retirement Medical (non-budgeted) 704,986.00 (704,986.00)
On-behalf TPAF - LTDI 1,848.00 (1,848.00)
Reimbursed TPAF Social Security Contributions (non-budgeted) 559,442.83 (559,442.83)
TOTAL ON-BEHALF CONTRIBUTIONS 2,357,791.83 (2,357,791.83)
TOTAL PERSONAL SERVICES - EMPLOYEE BENEFITS 3,126,988.00 (67,318.43) 3,059,669.57 5,345,666.51 (2,285,996.94)
TOTAL UNDISTRIBUTED EXPENDITURES 7,261,584.43 (139,960.00) 7,121,624.43 9,343,833.07 (2,222,208.64)
TOTAL GENERAL CURRENT EXPENSE 13,934,812.46 (149,880.00) 13,784,932.46 15,959,713.15 (2,174,780.69)
CAPITAL OUTLAY
Equipment
Support Services:
Undistributed Expenditures - Technology Equipment 12,489.00 12,489.00 12,489.00
Undistributed Expenditures - Oper. & Maint. of Plant Services 7,560.00 6.00 7,566.00 7,566.00
Total Equipment 7,560.00 12,495.00 20,055.00 20,055.00
Facilities Acquisition and Construction Services
Architectural/Engineering Services 23,899.38 23,899.38 23,899.38
Construction Services 864,277.43 (111,685.59) 752,591.84 752,591.84
Assessment for Debt Service on SDA Funding 5,453.00 5,453.00 5,453.00
Total Facilities Acquisition and Construction Services 869,730.43 (87,786.21) 781,944.22 781,944.22
TOTAL CAPITAL OUTLAY 877,290.43 (75,291.21) 801,999.22 801,999.22
Transfer of Funds to Charter Schools 43,557.00 74,880.00 118,437.00 117,516.00 921.00
TOTAL EXPENDITURES 14,855,659.89 (150,291.21) 14,705,368.68 16,879,228.37 (2,173,859.69)
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,383,736.89) 150,291.21 (1,233,445.68) (666,461.36) 566,984.32
Excess (Deficiency) of Revenues and Other Financing Sources
Over (Under) Expenditures and Other Financing Sources (Uses) (1,383,736.89) 150,291.21 (1,233,445.68) (666,461.36) 566,984.32
Fund Balance, July 1 2,352,861.05 2,352,861.05 2,352,861.05
Fund Balance, June 30 969,124.16 150,291.21 1,119,415.37 1,686,399.69 566,984.32
Recapitulation of excess (deficiency) of revenues under expenditures:
Adjustment for Prior Year Encumbrances (37,171.89) (37,171.89) (37,171.89)
Increase in Capital Reserve
Principal 186,293.47 186,293.47
Interest 270.00 270.00 179.00 (91.00)
Withdrawal From Capital Reserve (851,990.00) 75,291.21 (776,698.79) (776,698.79)
Increase in Emergency Reserve
Interest 65.00 65.00 19.59 (45.41)
Withdrawal from Emergency Reserve (75,000.00) 75,000.00
Increase in Maintenance Reserve
Interest 90.00 90.00 46.00 (44.00)
Withdrawal From Maintenance Reserve (50,000.00) (50,000.00) (50,000.00)
Budgeted Fund Balance (370,000.00) (370,000.00) 10,871.26 380,871.26
Total (1,383,736.89) 150,291.21 (1,233,445.68) (666,461.36) 566,984.32
-73-
Exhibit C-1
BOROUGH OF HALEDON SCHOOL DISTRICT
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2018
Budget
Original Transfers/ Final Variance
Budget Adjustments Budget Actual Final to Actual
Recapitulation:
Restricted Fund BalanceCapital Reserve 490,885.24
Maintenance Reserve 265,613.95
Emergency Reserve 225,036.99
Assigned Fund Balance:Year-end Encumbrances 15,718.78
Designated for Subsequent Year's Expenditures 356,550.00
Unassigned Fund Balance:
Unrestricted Fund Balance - Undesignated 332,594.73
1,686,399.69
Reconciliation to Governmental Funds Statements (GAAP):
Last State Aid Payment not recognized on GAAP basis (707,163.00)
Fund Balance per Governmental Funds (GAAP) 979,236.69
-74-
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-75-
Exhibit C-3
BOROUGH OF HALEDON SCHOOL DISTRICT
Required Supplementary Information
Budgetary Comparison Schedule
Note to Required Supplementary Information - Part II
For the Year Ended June 30, 2018
Note A - Explanation of Differences between Budgetary Inflows and Outflows and
GAAP Revenues and Expenditures
Special
General Revenue
Fund Fund
Sources/inflows of resources
Actual amounts (budgetary basis) "revenue"
from the budgetary comparison schedule [C-1]&[C-2] 16,212,767.01 1,527,807.37
Difference - budget to GAAP:
Grant accounting budgetary basis differs from GAAP in that
encumbrances are recognized as expenditures, and the related
revenue is recognized.
Add Prior Year Encumbrances
Less Current Year Encumbrances
The last State aid payment is recognized as revenue for budgetary
purposes in the General Fund, and differs from GAAP which
does not recognize this revenue until the subsequent year when
the State recognizes the related expense (GASB 33).
State aid payment recognized for budgetary purposes, not recognized
for GAAP statements until the subsequent year. (707,163.00)
State aid payment recognized for GAAP statements in the current
year, previously recognized for budgetary purposes. 680,709.00
Total revenues as reported on the statement of revenues, expenditures
and changes in fund balances - governmental funds. [B-2] 16,186,313.01 1,527,807.37
Uses/outflows of resources
Actual amounts (budgetary basis) "total outflows" from the
budgetary comparison schedule [C-1]&[C-2] 16,879,228.37 1,527,807.37
Differences - budget to GAAP
Encumbrances for supplies and equipment ordered but
not received are reported in the year the order is placed for
budgetary purposes, but in the year the supplies are received
for financial reporting purposes.
Add Prior Year Encumbrances
Less Current Year Encumbrances
Pension expense recognized for GAAP but not for budgetary
purposes. N/A
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental funds [B-2] 16,879,228.37 1,527,807.37
-76-
REQUIRED SUPPLEMENTARY
INFORMATION - PART III
Exhibit L-1BOROUGH OF HALEDON SCHOOL DISTRICT
Schedules of Required Supplementary Information
Schedule of District's Proportionate Share of Net Pension Liability - PERS
Last 10 Fiscal Years*
Fiscal Year
Ending June30,
District's
Proportion Share
of the Net
Pension Liability
(Asset)
District's
Proportion Share
of the Net
Pension Liability
(Asset)
District's Covered
Payroll -PERS
Employee's
District's
Proportion
Share of the Net
Pension Liability
(Asset) as a
perecntage of its
Covered Payroll
Plan Fiduciary
Net Position as a
percentage of the
total Pension
Liability
2015 0.0153161340% $2,867,599 $1,060,629 270.37% 52.08%
2016 0.0157796884% 3,542,224 1,094,368 323.68% 47.93%
2017 0.0162943862% 4,825,930 1,102,404 437.76% 59.86%
2018 0.0160495565% 3,736,080 1,119,326 333.78% 48.10%
* GASB requires that ten years of information be presented. However, since fiscal year 2015 was the first year of
GASB 68 implementation ten years is not presented. Each year thereafter, an additional year will be included until ten
years of data is presented.
-77-
Exhibit L-2BOROUGH OF HALEDON SCHOOL DISTRICT
Schedules of Required Supplementary Information
Schedule of District's Contributions - PERS
Last 10 Fiscal Years*
Fiscal Year
Ending June30,
Contractually
Required
Contribution
Contributions in
Relation to the
Contractually
Required
Contributions
Contribution
Deficiency
(Excess)
District's PERS
Covered-
Employee
Payroll
Contributions as
a Percentage of
PERS Covered-
Employee Payroll
2015 126,264$ 126,264$ -$ $1,060,629 11.90%
2016 135,663 135,663 - 1,094,368 12.40%
2017 144,757 144,757 - 1,102,404 13.13%
2018 148,682 148,682 - 1,119,326 13.28%
* GASB requires that ten years of information be presented. However, since fiscal year 2015 was the first year of
GASB 68 implementation ten years is not presented. Each year thereafter, an additional year will be included until ten
years of data is presented.
-78-
Exhibit L-3BOROUGH OF HALEDON SCHOOL DISTRICT
Schedules of Required Supplementary InformationSchedule of District's Proportionate Share of Net Pension Liability - TPAF
Last 10 Fiscal Years*
Fiscal Year
Ending June30,
District's
Proportion Share
of the Net
Pension Liability
(Asset)
District's
Proportion Share
of the Net
Pension Liability
(Asset)
State's
Proportionate
Share of the Net
Pension Liability
Associated with
the District
(Asset)
District's Covered
Payroll -TPAF
Employee's
District's
Proportion Share
of the Net
Pension Liability
(Asset) as a
perecntage of its
Covered Payroll
Plan Fiduciary
Net Position as a
percentage of the
total Pension
Liability
2015 0.0631412808% -$ 33,746,960$ 7,392,155$ 0.00% 33.64%2016 0.0665816926% -$ 42,082,473 7,408,447 0.00% 28.71%2017 0.0677025260% -$ 53,259,118 7,483,995 0.00% 28.75%2018 0.0734662699% -$ 49,533,608 7,603,809 0.00% 34.07%
* GASB requires that ten years of information be presented. However, since fiscal year 2015 was the first year of
GASB 68 implementation ten years is not presented. Each year thereafter, an additional year will be included until ten
years of data is presented.
-79-
Exhibit L-4
BOROUGH OF HALEDON SCHOOL DISTRICT
Note to Required Schedules of Supplementary Information - Part III
For the fiscal year ended June 30, 2018
PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS)
Change in benefit terms
None
Change in assumptions
The calculation of the discount rate used to measure the total
pension liability is dependent upon the long·term expected rate
of return, and the municipal bond index rate. There was a change
in the municipal bond index rate from the prior measurement date
(2.85%) to the current measurement date (3.58%), resulting in a
change in the discount rate from 3.98% to 5.00%. This change in the
discount rate is considered to be a change in actuarial assumptions
under GASBS No. 68.
TEACHERS PENSION AND ANNUITY FUND (TPAF)
Change in benefit terms
Change in assumptions
The calculation of the discount rate used to measure the total
pension liability is dependent upon the long·term expected rate
of return, and the municipal bond index rate. There was a change
in the municipal bond index rate from the prior measurement date
(2.85%) to the current measurement date (3.58%), resulting in a
change in the discount rate from 3.22 to 4.25%. This change in the
discount rate is considered to be a change in actuarial assumptions
under GASBS No. 68.
-80-
Supplementary Schedules
SPECIAL REVENUE FUND
Ex
hib
it E
-1
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Sp
ecia
l R
even
ue
Fu
nd
Co
mb
inin
g S
ched
ule
of
Pro
gra
m R
even
ues
an
d E
xp
end
itu
res
- B
ud
get
ary
Ba
sis
Fo
r th
e Y
ear
En
ded
Ju
ne
30
, 2
01
8
Tit
le I
Tit
le I
IT
itle
IV
To
tal
Pa
rt -
AP
art
- A
Tit
le I
IIS
tud
ent
Bro
ug
ht
Imp
rovin
gT
each
er/P
rin
cip
al
En
gli
shS
up
po
rt a
nd
Fo
rwa
rdB
asi
cT
rain
ing
La
ng
ua
ge
Aca
dem
icT
ota
ls
(Ex
. E
-1a
)P
rog
ram
s&
Rec
ruit
ing
En
ha
nce
men
tE
nri
chm
ent
20
18
RE
VE
NU
ES
S
tate
Sou
rces
58
9,3
26
.37
58
9,3
26
.37
F
eder
al S
ou
rces
28
7,4
30
.00
57
5,0
22
.00
57
,72
4.0
01
3,9
13
.00
4,3
92
.00
93
8,4
81
.00
T
ota
l R
even
ues
87
6,7
56
.37
57
5,0
22
.00
57
,72
4.0
01
3,9
13
.00
4,3
92
.00
1,5
27
,80
7.3
7
EX
PE
ND
ITU
RE
S:
Inst
ruct
ion
:
S
alar
ies
of
Tea
cher
s3
72
,01
7.7
13
65
,62
2.0
04
3,8
97
.00
7,0
65
.00
78
8,6
01
.71
O
ther
Sal
arie
s fo
r In
stru
ctio
n6
7,2
12
.63
67
,21
2.6
3
P
urc
has
ed P
rofe
ssio
nal
- E
du
cati
on
al S
ervic
es1
8,5
24
.31
18
,52
4.3
1
O
ther
Pu
rch
ased
Ser
vic
es (
40
0-5
00
ser
ies)
20
0,7
12
.00
20
0,7
12
.00
G
ener
al S
up
pli
es4
0,2
66
.64
95
,59
7.0
01
35
,86
3.6
4
To
tal
Inst
ruct
ion
69
8,7
33
.29
46
1,2
19
.00
43
,89
7.0
07
,06
5.0
01
,21
0,9
14
.29
Su
pp
ort
Ser
vic
es:
S
alar
ies
of
Pro
gra
m D
irec
tor
18
,29
7.1
21
8,2
97
.12
S
alar
ies
of
Oth
er P
rofe
ssio
nal
Sta
ff8
,61
8.6
08
,61
8.6
0
S
alar
ies
of
Sec
reta
rial
an
d C
leri
cal
Ass
ist
7,7
11
.08
7,7
11
.08
O
ther
Sal
arie
s2
6,3
24
.64
3,6
00
.00
6,8
48
.00
36
,77
2.6
4
P
erso
nal
Ser
vic
es -
Em
plo
yee
Ben
efit
s9
5,3
99
.00
10
0,1
44
.00
13
,82
7.0
02
09
,37
0.0
0
P
urc
has
ed P
rofe
ssio
nal
& T
ech
nic
al S
ervic
es8
,31
3.0
08
,31
3.0
0
P
urc
has
ed P
rofe
ssio
nal
- E
du
cati
on
al S
ervic
es1
0,0
00
.00
10
,00
0.0
0
C
on
tr S
erv -
Tra
ns.
(F
ield
Tri
ps)
69
0.0
06
90
.00
O
ther
Pu
rch
ased
Ser
vic
es (
40
0-5
00
ser
ies)
12
,66
9.6
41
2,6
69
.64
S
up
pli
es &
Mat
eria
ls5
9.0
04
,39
2.0
04
,45
1.0
0
To
tal
Su
pp
ort
Ser
vic
es1
78
,02
3.0
81
13
,80
3.0
01
3,8
27
.00
6,8
48
.00
4,3
92
.00
31
6,8
93
.08
To
tal
Ex
pen
dit
ure
s8
76
,75
6.3
75
75
,02
2.0
05
7,7
24
.00
13
,91
3.0
04
,39
2.0
01
,52
7,8
07
.37
Ex
cess
(D
efic
ien
cy)
of
Rev
enu
es O
ver
(U
nd
er)
E
xp
end
itu
res
an
d O
ther
Fin
an
cin
g S
ou
rces
(U
ses)
-81-
Ex
hib
it E
-1a
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Sp
ecia
l R
even
ue
Fu
nd
Co
mb
inin
g S
ched
ule
of
Pro
gra
m R
even
ues
an
d E
xp
end
itu
res
- B
ud
get
ary
Ba
sis
Fo
r th
e Y
ear
En
ded
Ju
ne
30
, 2
01
8
Tem
po
rary
I.D
.E.A
. P
art
BE
mer
gen
cyP
resc
ho
ol
To
tal
Imp
act
Aid
Ed
uca
tio
nC
arr
ied
Ba
sic
Pre
sch
oo
lP
rog
ram
sA
idF
orw
ard
RE
VE
NU
ES
S
tate
Sou
rces
58
9,3
26
.37
58
9,3
26
.37
F
eder
al S
ou
rces
26
6,2
75
.00
8,4
05
.00
12
,75
0.0
02
87
,43
0.0
0
T
ota
l R
even
ues
26
6,2
75
.00
8,4
05
.00
12
,75
0.0
05
89
,32
6.3
78
76
,75
6.3
7
EX
PE
ND
ITU
RE
S:
Inst
ruct
ion
:
S
alar
ies
of
Tea
cher
s3
8,3
85
.00
6,3
04
.00
9,6
00
.00
31
7,7
28
.71
37
2,0
17
.71
O
ther
Sal
arie
s fo
r In
stru
ctio
n1
0,0
87
.00
57
,12
5.6
36
7,2
12
.63
P
urc
has
ed P
rofe
ssio
nal
- E
du
cati
on
al S
ervic
es5
,29
5.0
01
3,2
29
.31
18
,52
4.3
1
O
ther
Pu
rch
ased
Ser
vic
es (
40
0-5
00
ser
ies)
20
0,7
12
.00
20
0,7
12
.00
G
ener
al S
up
pli
es3
,48
3.0
01
15
.00
12
6.0
03
6,5
42
.64
40
,26
6.6
4
To
tal
Inst
ruct
ion
25
7,9
62
.00
6,4
19
.00
9,7
26
.00
42
4,6
26
.29
69
8,7
33
.29
Su
pp
ort
ser
vic
es:
S
alar
ies
of
Pro
gra
m D
irec
tor
18
,29
7.1
21
8,2
97
.12
S
alar
ies
of
Oth
er P
rofe
ssio
nal
Sta
ff8
,61
8.6
08
,61
8.6
0
S
alar
ies
of
Sec
reta
rial
an
d C
leri
cal
Ass
ist
7,7
11
.08
7,7
11
.08
O
ther
Sal
arie
s2
6,3
24
.64
26
,32
4.6
4
P
erso
nal
Ser
vic
es -
Em
plo
yee
Ben
efit
s1
,98
6.0
03
,02
4.0
09
0,3
89
.00
95
,39
9.0
0
P
urc
has
ed P
rofe
ssio
nal
& T
ech
nic
al S
ervic
es8
,31
3.0
08
,31
3.0
0
P
urc
has
ed P
rofe
ssio
nal
- E
du
cati
on
al S
ervic
es
C
on
tr S
erv -
Tra
ns.
(F
ield
Tri
ps)
69
0.0
06
90
.00
O
ther
Pu
rch
ased
Ser
vic
es (
40
0-5
00
ser
ies)
12
,66
9.6
41
2,6
69
.64
S
up
pli
es &
Mat
eria
ls
To
tal
Su
pp
ort
Ser
vic
es8
,31
3.0
01
,98
6.0
03
,02
4.0
01
64
,70
0.0
81
78
,02
3.0
8
To
tal
Ex
pen
dit
ure
s2
66
,27
5.0
08
,40
5.0
01
2,7
50
.00
58
9,3
26
.37
87
6,7
56
.37
Ex
cess
(D
efic
ien
cy)
of
Rev
enu
es O
ver
(U
nd
er)
E
xp
end
itu
res
an
d O
ther
Fin
an
cin
g S
ou
rces
(U
ses)
-82-
Exhibit E-2
BOROUGH OF HALEDON SCHOOL DISTRICT
Special Revenue Fund
Schedule of Preschool Education Aid
Budgetary Basis
For the Year Ended June 30, 2018
Budgeted Actual Variance
EXPENDITURES:
Instruction:
Salaries of Teachers 331,788.00 317,728.71 14,059.29
Other Salaries for Instruction 57,299.00 57,125.63 173.37
Purchased Professional - Educational Services 18,000.00 13,229.31 4,770.69
General Supplies 36,988.00 36,542.64 445.36
Total instruction 444,075.00 424,626.29 19,448.71
Support services:
Salaries of Program Directors 18,300.00 18,297.12 2.88
Salaries of Other Professional Staff 8,619.00 8,618.60 0.40
Salaries of Secretarial and Clerical Assist 9,175.00 7,711.08 1,463.92
Other Salaries 27,067.00 26,324.64 742.36
Personal Services - Employee Benefits 90,389.00 90,389.00
Contr Serv - Trans. (Field Trips) 1,500.00 690.00 810.00
Other Purchased Services (400-500 series) 12,670.00 12,669.64 0.36
Supplies & Materials 24,503.00 24,503.00
Total support services 192,223.00 164,700.08 27,522.92
Equipment
Instructional equipment 20,675.00 20,675.00
Total Equipment 20,675.00 20,675.00
Total expenditures 656,973.00 589,326.37 67,646.63
Total Revised 2017-18 Preschool Education Aid Allocation 656,973.00
Actual Preschool Carryover ( June 30, 2017) 32,672.51
Total Preschool Education Aid Funds Available for 2017-18 Budget 689,645.51
Less: 2017-18 Budgeted Preschool Education Aid (Including
prior year budgeted carryover) (656,973.00)
Available & Unbudgeted Preschool Education Aid Funds as of June 30, 2018 32,672.51
Add: 2017-18 Unexpended Preschool Education Aid 67,646.63
2017-18 Actual Carryover - Preschool Education Aid 100,319.14
2017-18 Preschool Education Aid Carryover Budgeted in 2018-19 100,319.14
CALCULATION OF BUDGET & CARRYOVER
District-wide Total
-83-
PROPRIETARY FUNDS
Exhibit G-1
BOROUGH OF HALEDON SCHOOL DISTRICT
Combining Statement of Net Position
Enterprise Funds
June 30, 2018
After Care/
Food Service Summer Camp
Program Program Totals
ASSETS
Current Assets:
Cash and Cash Equivalents 85,878.41 199,906.26 285,784.67
Accounts Receivable:
State 621.92 621.92
Federal 38,302.14 38,302.14
Other 5,517.87 5,517.87
Inventories 4,736.52 4,736.52
Total Current Assets 129,538.99 205,424.13 334,963.12
Noncurrent Assets:
Capital Assets:
Equipment 469,318.43 469,318.43
Less Accumulated Depreciation (236,887.52) (236,887.52)
Total Capital Assets (Net of Accumulated
Depreciation) 232,430.91 232,430.91
Total Assets 361,969.90 205,424.13 567,394.03
LIABILITIES
Current Liabilities:
Accounts Payable 4,551.24 667.58 5,218.82
Prepaid Revenue 76.13 76.13
Interfunds Payable 68,110.40 68,110.40
Total Current Liabilities 72,737.77 667.58 73,405.35
Total Liabilities 72,737.77 667.58 73,405.35
NET POSITION
Invested in Capital Assets Net of
Related Debt 232,430.91 232,430.91
Unrestricted 56,801.22 204,756.55 261,557.77
Total Net Position 289,232.13 204,756.55 493,988.68
-84-
Exhibit G-2
BOROUGH OF HALEDON SCHOOL DISTRICT
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position
Enterprise Funds
For the Year Ended June 30, 2018
After Care /
Food Service Summer Camp
Program Program Totals
Operating Revenues:
Charges for Services:
Daily Sales - Non-Reimbursable Programs 25,399.05 25,399.05
Miscellaneous - Program Fees 301,170.04 301,170.04
Total Operating Revenues 25,399.05 301,170.04 326,569.09
Operating Expenses:
Cost of food-reimbursable programs 289,924.23 289,924.23
Cost of food-non-reimbursable programs 56,844.00 56,844.00
Salaries 165,824.31 279,388.32 445,212.63
Supplies and Materials 53,482.82 3,974.42 57,457.24
Employee Benefits 32,883.06 14,567.04 47,450.10
Purchased Professional and Technical Services 11,852.00 100.16 11,952.16
Cleaning Repair & Maintenance 20,320.69 20,320.69
Utilities 4,853.89 4,853.89
Other Purchased Services 65.00 65.00
Miscellaneous Expense 13,789.75 5,532.31 19,322.06
Transportation 1,205.00 1,205.00
Depreciation 17,681.82 17,681.82
Total Operating Expenses 667,521.57 304,767.25 972,288.82
Operating Income (Loss) (642,122.52) (3,597.21) (645,719.73)
Nonoperating Revenues (Expenses):
State Sources:
State School Lunch Program 7,935.52 7,935.52
Federal Sources:
National School Lunch Program 362,954.84 362,954.84
School Breakfast Program 103,176.77 103,176.77
After School Snack Program 30,422.48 30,422.48
HHFKA Program 8,877.12 8,877.12
U.S.D.A. Commodities:
Food Distribution Program 44,170.48 44,170.48
Interest and Investment Revenue 72.54 72.54
Total Nonoperating Revenues (Expenses) 557,609.75 557,609.75
Income (Loss) Before Contributions & Transfers (84,512.77) (3,597.21) (88,109.98)
Cancellation of Prior Year Receivable (2,063.14) (2,063.14)
Change in Net Position (86,575.91) (3,597.21) (90,173.12)
Total Net Position—Beginning 375,808.04 208,353.76 584,161.80
Total Net Position—Ending 289,232.13 204,756.55 493,988.68
-85-
Exhibit G-3
BOROUGH OF HALEDON SCHOOL DISTRICT
Combining Statement of Cash Flows
Enterprise Funds
For the Year Ended June 30, 2018
After Care /
Food Service Summer Camp
Program Program Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers 25,475.18 298,753.13 324,228.31
Payments for Interfunds (10,697.95) (10,697.95)
Payments to Employees (29,749.01) (279,388.32) (309,137.33)
Payments for Employee Benefits (2,403.56) (14,567.04) (16,970.60)
Payments to Suppliers (30.00) (3,306.84) (3,336.84)
Payments for Miscellaneous Expenses (5,696.80) (6,837.47) (12,534.27)
Payments to Food Service Management Company (514,500.17) (514,500.17)
Net Cash Provided by (Used for) Operating Activities (537,602.31) (5,346.54) (542,948.85)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
State Sources 8,806.53 8,806.53
Federal Sources 529,404.96 529,404.96
Net Cash Provided by (Used for) Non-Capital Financing Activities 538,211.49 538,211.49
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchases of Capital Assets (48,090.36) (48,090.36)
Net Cash Provided by (Used for) Capital and Related Financing Activities (48,090.36) (48,090.36)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends 72.54 72.54
Net Cash Provided by (Used for) Investing Activities 72.54 72.54
Net Increase (Decrease) in Cash and Cash Equivalents (47,408.64) (5,346.54) (52,755.18)
Balances—Beginning of Year 133,287.05 205,252.80 338,539.85
Balances—End of Year 85,878.41 199,906.26 285,784.67
Reconciliation of Operating Income (Loss) to Net Cash Provided
(Used) by Operating Activities:
Operating Income (Loss) (642,122.52) (3,597.21) (645,719.73)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided
(Used for) Operating Activities
Depreciation and Net Amortization 17,681.82 17,681.82
Food Distribution Program Donated Commodities 44,170.48 44,170.48
(Increase) Decrease in Accounts Receivable, Net 59.79 59.79
(Increase) Decrease in Inventories (1,826.79) (1,826.79)
Increase (Decrease) in Accounts Payable 4,551.24 667.58 5,218.82
Increase (Decrease) in Other Current Liabilities 39,943.46 (2,476.70) 37,466.76
Total Adjustments 104,520.21 (1,749.33) 102,770.88
Net Cash Provided by (Used for) Operating Activities (537,602.31) (5,346.54) (542,948.85)
-86-
FIDUCIARY FUND
Exhibit H-1
BOROUGH OF HALEDON SCHOOL DISTRICT
Combining Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2018
Unemployment
Compensation Agency
Trust Fund Fund
ASSETS
Cash and Cash Equivalents 323,800.19 538,794.21
Interfund Receivable 4,745.31 2,496.84
Total Assets 328,545.50 541,291.05
LIABILITIES
Interfund Payable 4,771.20
Payable to Student Groups 25,575.45
Payroll Deductions and Withholdings 510,944.40
Total Liabilities 541,291.05
NET POSITION
Held in Trust for Unemployment
Claims and Other Purposes 328,545.50
-87-
Exhibit H-2
BOROUGH OF HALEDON SCHOOL DISTRICT
Combining Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2018
Unemployment
Compensation
Trust Fund
ADDITIONS
Contributions:
Plan Member 24,429.61
Total Contributions 24,429.61
Investment Earnings:
Interest 359.10
Net Investment Earnings 359.10
Total Additions 24,788.71
DEDUCTIONS
Quarterly Contribution Reports 7,101.48
Unemployment Claims 25,130.17
Total Deductions 32,231.65
Change in Net Position (7,442.94)
Net Position—Beginning of the Year 335,988.44
Net Position—End of the Year 328,545.50
-88-
Exh
ibit
H-3
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Stu
den
t A
ctiv
ity A
gen
cy F
un
d
Sch
edu
le o
f R
ecei
pts
an
d D
isb
urs
em
ents
For
the
Yea
r E
nd
ed J
un
e 30,
2018
Bal
ance
Bal
ance
July
1, 2017
Rev
enues
Ex
pen
dit
ure
sJu
ne
30, 2018
EL
EM
EN
TA
RY
SC
HO
OL
S:
Gen
eral
Org
aniz
atio
n A
ll S
chools
31,2
09.3
473,1
14.8
378,7
48.7
225,5
75.4
5
31,2
09.3
473,1
14.8
378,7
48.7
225,5
75.4
5
-89-
Exhibit H-4
BOROUGH OF HALEDON SCHOOL DISTRICT
Payroll Agency Fund
Schedule of Receipts and Disbursements
For the Year Ended June 30, 2018
Balance Cash Cash BalanceJuly 1, 2017 Receipts Disbursed June 30, 2018
Net Payroll 5,553,248.85 5,553,248.85
Payroll Deductions
and Withholdings 517,894.70 5,213,579.55 5,220,529.85 510,944.40
Interfunds Receivable (11,342.10) 11,342.10 2,496.84 (2,496.84)
Interfunds Payable 6,323.63 21,119.52 22,671.95 4,771.20
512,876.23 10,799,290.02 10,798,947.49 513,218.76
-90-
STATISTICAL SECTION
STATISTICAL SECTION (UNAUDITED)
Introduction to the Statistical Section
Financial Trends
J-1 Net Assets/Position by Component
J-2 Changes in Net Assets/Position
J-3 Fund Balances - Governmental Funds
J-4 Changes in Fund Balances - Governmental Funds
J-5 General Fund Other Local Revenue by Source
Revenue Capacity
J-6 Assessed Value and Estimated Actual Value of Taxable Property
J-7 Direct and Overlapping Property Tax Rates
J-8 Principal Property Taxpayers
J-9 Property Tax Levies and Collections
Debt Capacity
J-10 Ratios of Outstanding Debt by Type
J-11 Ratios of General Bonded Debt Outstanding
J-12 Direct and Overlapping Governmental Activities Debt
J-13 Legal Debt Margin Information
Demographic and Economic Information
J-14 Demographic and Economic Statistics
J-15 Principal Employers
Operating Information
J-16 Full-time Equivalent District Employees by Function/Program
J-17 Operating Statistics
J-18 School Building Information*
J-19 Schedule of Allowable Maintenance Expenditures by School Facility
J-20 Insurance Schedule
Exh
ibit
J-1
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Net
Po
sit
ion
by C
om
po
nen
t
Last
Ten
Fis
cal
Years
(accru
al
basis
of
acco
un
tin
g)
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Go
vern
men
tal
Acti
vit
ies
Investe
d in C
apital A
ssets
5,3
73,8
09.7
35,6
46,7
42.0
66,9
14,6
24.8
76,7
23,1
06.4
07,4
10,6
92.3
98,6
77,9
63.9
610,1
43,7
96.8
910,5
10,2
34.3
610,8
57,0
94.9
011,0
59,8
43.4
6
Restr
icte
d2,2
46,2
08.8
63,1
16,1
24.8
73,2
03,5
89.8
94,0
80,4
18.5
14,5
00,4
35.8
73,9
80,1
20.9
73,4
25,3
54.1
22,4
95,4
67.7
51,6
21,6
96.9
1981,5
36.1
8
Unre
str
icte
d(1
89,3
27.6
8)
(169,4
28.2
7)
(306,9
05.8
3)
(452,3
78.2
0)
(507,9
21.5
3)
(451,7
67.6
3)
(3,3
43,7
37.3
7)
(3,3
08,4
58.8
1)
(3,4
90,6
39.7
1)
(3,6
77,9
35.7
7)
Tota
l G
overn
menta
l A
ctivitie
s N
et
Positio
n7,4
30,6
90.9
18,5
93,4
38.6
69,8
11,3
08.9
310,3
51,1
46.7
111,4
03,2
06.7
312,2
06,3
17.3
010,2
25,4
13.6
49,6
97,2
43.3
08,9
88,1
52.1
08,3
63,4
43.8
7
Bu
sin
ess-t
yp
e A
cti
vit
ies
Investe
d in C
apital A
ssets
, N
et
of
Rela
ted D
ebt
19,9
18.8
750,2
44.5
044,9
45.4
9190,8
04.9
1176,8
51.7
3187,3
21.4
7171,6
23.7
9163,5
23.3
1202,0
22.3
7232,4
30.9
1
Unre
str
icte
d358,3
73.4
2367,2
24.4
9388,6
66.9
1223,7
65.7
8249,9
82.0
2328,7
50.5
4421,6
64.8
1476,5
84.4
4382,1
39.4
3261,5
57.7
7
Tota
l B
usin
ess-t
ype A
ctivitie
s N
et
Positio
n378,2
92.2
9417,4
68.9
9433,6
12.4
0414,5
70.6
9426,8
33.7
5516,0
72.0
1593,2
88.6
0640,1
07.7
5584,1
61.8
0493,9
88.6
8
Dis
tric
t-w
ide
Investe
d in C
apital A
ssets
, N
et
of
Rela
ted D
ebt
5,3
93,7
28.6
05,6
96,9
86.5
66,9
59,5
70.3
66,9
13,9
11.3
17,5
87,5
44.1
28,8
65,2
85.4
310,3
15,4
20.6
810,6
73,7
57.6
711,0
59,1
17.2
711,2
92,2
74.3
7
Restr
icte
d2,2
46,2
08.8
63,1
16,1
24.8
73,2
03,5
89.8
94,0
80,4
18.5
14,5
00,4
35.8
73,9
80,1
20.9
73,4
25,3
54.1
22,4
95,4
67.7
51,6
21,6
96.9
1981,5
36.1
8
Unre
str
icte
d169,0
45.7
4197,7
96.2
281,7
61.0
8(2
28,6
12.4
2)
(257,9
39.5
1)
(123,0
17.0
9)
(2,9
22,0
72.5
6)
(2,8
31,8
74.3
7)
(3,1
08,5
00.2
8)
(3,4
16,3
78.0
0)
Tota
l D
istr
ict
Net
Positon
7,8
08,9
83.2
09,0
10,9
07.6
510,2
44,9
21.3
310,7
65,7
17.4
011,8
30,0
40.4
812,7
22,3
89.3
110,8
18,7
02.2
410,3
37,3
51.0
59,5
72,3
13.9
08,8
57,4
32.5
5
Sou
rce:
C
AF
R S
ched
ule
A-1
-91-
Exh
ibit
J-2
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Ch
an
ges in
Net
Po
sit
ion
Last
Ten
Fis
cal Y
ears
(accru
al b
asis
of
acco
un
tin
g)
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Exp
en
ses
Govern
menta
l A
ctivitie
s:
Instr
uction:
Regula
r5,2
53,6
23.0
25,6
59,5
28.4
45,9
40,3
08.1
85,6
73,4
58.3
56,3
53,8
57.5
36,4
92,9
24.7
96,7
63,1
40.4
36,8
08,2
86.0
76,8
79,6
19.1
87,3
72,9
97.0
5
Specia
l E
ducation
1,1
39,7
83.2
01,1
92,1
68.3
11,1
13,3
62.6
61,2
73,1
83.8
61,3
77,6
24.2
91,5
93,2
87.9
21,7
69,4
25.2
92,0
08,9
66.2
72,2
62,3
65.0
12,0
39,1
84.9
1
Oth
er
Specia
l In
str
uction
387,8
05.2
7311,5
21.8
3271,5
83.6
0581,4
21.6
9490,7
80.5
3488,3
78.1
4762,0
92.5
6808,0
95.6
2771,8
49.7
2736,1
54.6
6
Oth
er
Instr
uction
127,3
36.5
2130,1
84.9
1110,4
99.1
689,4
27.3
3101,8
30.4
4104,8
75.1
0123,5
63.5
2107,1
75.7
1111,6
45.1
1125,4
07.3
6
Support
Serv
ices:
Tuitio
n665,2
51.9
8401,7
78.9
0461,2
09.2
3439,8
36.2
4255,1
39.0
3180,9
15.5
8151,8
32.0
5212,7
62.2
5184,2
21.4
7248,5
68.5
6
Stu
dent &
Instr
uction R
ela
ted S
erv
ices
1,5
21,8
59.3
81,6
95,8
37.7
81,9
32,0
72.3
71,6
75,5
47.8
51,8
53,2
38.5
21,8
59,4
97.8
11,8
35,9
99.4
52,0
55,3
30.0
42,0
25,6
20.6
72,0
59,5
05.7
0
School A
dm
inis
trative S
erv
ices
601,6
83.2
4626,2
51.6
7691,9
39.6
3624,7
35.1
9604,5
42.9
5614,0
21.7
1629,7
49.8
1621,4
25.5
2664,0
65.9
2677,8
04.6
3
Genera
l A
dm
inis
trative S
erv
ices
342,4
18.7
2415,6
90.6
8353,0
50.5
0310,0
97.6
6393,1
01.3
0351,3
38.6
6350,0
41.4
5342,1
27.6
1373,5
10.5
1351,0
17.9
6
Centr
al S
erv
ices &
Adm
in. In
fo. T
echnolo
gy
521,9
56.6
0453,3
23.0
6461,1
19.0
7381,6
43.3
6445,8
42.4
8454,3
93.0
4455,9
04.8
9431,5
74.9
5484,3
49.1
4502,0
03.9
9
Pla
nt O
pera
tions a
nd M
ain
tenance
938,9
52.9
7917,7
09.5
2904,1
73.3
8953,1
02.3
8772,5
68.9
8942,4
15.1
6959,2
84.4
7927,2
84.3
9977,9
31.1
2925,7
20.7
3
Pupil
Tra
nsport
ation
274,5
58.4
7229,6
27.9
6214,4
47.7
0267,7
38.7
2239,1
45.3
4244,3
43.9
2238,0
03.7
8288,8
37.5
0257,4
55.6
0345,1
77.6
9
Unallo
cate
d B
enefits
812,7
19.9
0869,2
19.1
6872,2
91.8
81,0
77,7
79.6
71,3
68,5
12.3
81,1
95,8
14.9
52,9
29,9
33.7
93,1
59,3
14.2
45,2
32,0
80.2
26,3
51,1
01.8
8
Specia
l S
chools
3,6
50.0
0
Chart
er
Schools
76,9
03.0
046,4
96.0
0117,5
16.0
0
Inte
rest on L
ong-t
erm
Debt
41,2
50.0
032,2
50.0
023,2
50.0
014,2
50.0
05,2
50.0
0
Capital O
utlay -
Non-d
epre
cia
ble
30.7
437,5
08.8
82,8
11.0
011,8
87.0
02,5
90.0
05,4
53.0
05,4
53.0
05,4
53.0
05,4
53.0
05,4
53.0
0
Unallo
cate
d D
epre
cia
tion
188,3
21.8
2183,6
42.2
4183,6
48.5
5170,0
40.3
0179,1
72.4
3236,8
45.7
1325,0
33.6
3373,7
24.5
0419,1
32.1
1452,6
12.4
9
Tota
l G
overn
menta
l A
ctivitie
s E
xpenses
12,8
21,2
01.8
313,1
56,2
43.3
413,5
35,7
66.9
113,5
44,1
49.6
014,4
43,1
96.2
014,7
64,5
05.4
917,2
99,4
58.1
218,2
27,2
60.6
720,6
95,7
94.7
822,3
10,2
26.6
1
Busin
ess-t
ype A
ctivitie
s:
Food S
erv
ice
404,9
11.7
8460,3
34.0
2381,4
14.2
5469,1
33.6
5440,7
01.9
0476,4
77.1
9469,7
18.0
6539,6
68.8
5643,6
36.7
2667,5
21.5
7
After
Care
Pro
gra
m166,1
22.9
6171,6
42.4
0178,1
31.2
5172,8
13.4
4180,0
83.1
1151,7
79.7
8218,6
42.0
8253,6
33.1
5267,9
86.5
9304,7
67.2
5
Sum
mer
Cam
p P
rogra
m29,8
30.5
1
Tota
l B
usin
ess-t
ype A
ctivitie
s E
xpenses
600,8
65.2
5631,9
76.4
2559,5
45.5
0641,9
47.0
9620,7
85.0
1628,2
56.9
7688,3
60.1
4793,3
02.0
0911,6
23.3
1972,2
88.8
2
Tota
l D
istr
ict E
xpenses
13,4
22,0
67.0
813,7
88,2
19.7
614,0
95,3
12.4
114,1
86,0
96.6
915,0
63,9
81.2
115,3
92,7
62.4
617,9
87,8
18.2
619,0
20,5
62.6
721,6
07,4
18.0
923,2
82,5
15.4
3
Pro
gra
m R
even
ues
Govern
menta
l A
ctivitie
s:
Opera
ting G
rants
and C
ontr
ibutions
1,1
84,0
25.9
91,4
45,4
96.6
81,8
87,0
84.4
91,3
23,2
85.6
51,5
79,1
10.8
31,4
99,3
23.9
21,2
25,2
14.2
01,4
42,2
79.7
61,2
53,9
68.2
21,5
15,0
57.3
7
Tota
l G
overn
menta
l A
ctivitie
s P
rogra
m R
evenues
1,1
84,0
25.9
91,4
45,4
96.6
81,8
87,0
84.4
91,3
23,2
85.6
51,5
79,1
10.8
31,4
99,3
23.9
21,2
25,2
14.2
01,4
42,2
79.7
61,2
53,9
68.2
21,5
15,0
57.3
7
Busin
ess-t
ype A
ctivitie
s:
Charg
es for
Serv
ices:
Food S
erv
ice
112,2
85.5
0101,7
21.3
797,3
15.2
497,7
29.2
298,6
20.4
297,4
68.0
1104,2
75.5
0114,6
67.2
732,6
54.8
125,3
99.0
5
After
Care
Pro
gra
m149,6
44.3
4150,4
41.7
0139,5
25.9
0140,2
48.8
8142,2
17.9
0196,5
60.0
2238,2
54.1
8251,8
28.9
0277,1
03.1
9301,1
70.0
4
Sum
mer
Cam
p P
rogra
m25,5
49.1
2
Opera
ting G
rants
and C
ontr
ibutions
345,7
14.3
5418,9
90.0
5338,8
47.7
7384,9
25.0
7392,1
98.9
7423,4
45.0
5423,0
03.4
8472,0
79.6
5545,7
84.0
7557,5
37.2
1
Tota
l B
usin
ess-t
ype A
ctivitie
s P
rogra
m R
evenues
633,1
93.3
1671,1
53.1
2575,6
88.9
1622,9
03.1
7633,0
37.2
9717,4
73.0
8765,5
33.1
6838,5
75.8
2855,5
42.0
7884,1
06.3
0
Tota
l D
istr
ict P
rogra
m R
evenues
1,8
17,2
19.3
02,1
16,6
49.8
02,4
62,7
73.4
01,9
46,1
88.8
22,2
12,1
48.1
22,2
16,7
97.0
01,9
90,7
47.3
62,2
80,8
55.5
82,1
09,5
10.2
92,3
99,1
63.6
7
-92-
Exh
ibit
J-2
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Ch
an
ges in
Net
Po
sit
ion
Last
Ten
Fis
cal Y
ears
(accru
al b
asis
of
acco
un
tin
g)
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Net
(Exp
en
se)/
Reven
ue
Govern
menta
l A
ctivitie
s(1
1,6
37,1
75.8
4)
(11,7
10,7
46.6
6)
(11,6
48,6
82.4
2)
(12,2
20,8
63.9
5)
(12,8
64,0
85.3
7)
(13,2
65,1
81.5
7)
(16,0
74,2
43.9
2)
(16,7
84,9
80.9
1)
(19,4
41,8
26.5
6)
(20,7
95,1
69.2
4)
Busin
ess-t
ype A
ctivitie
s32,3
28.0
639,1
76.7
016,1
43.4
1(1
9,0
43.9
2)
12,2
52.2
889,2
16.1
177,1
73.0
245,2
73.8
2(5
6,0
81.2
4)
(88,1
82.5
2)
Tota
l D
istr
ict-
wid
e N
et E
xpense
(11,6
04,8
47.7
8)
(11,6
71,5
69.9
6)
(11,6
32,5
39.0
1)
(12,2
39,9
07.8
7)
(12,8
51,8
33.0
9)
(13,1
75,9
65.4
6)
(15,9
97,0
70.9
0)
(16,7
39,7
07.0
9)
(19,4
97,9
07.8
0)
(20,8
83,3
51.7
6)
Gen
era
l R
even
ues a
nd
Oth
er
Ch
an
ges in
Net
Assets
Govern
menta
l A
ctivitie
s:
Pro
pert
y T
axes L
evie
d for
Genera
l P
urp
oses
5,2
61,8
21.0
05,2
45,2
29.0
05,4
55,0
38.0
05,5
64,1
38.0
05,6
19,8
09.0
05,8
35,2
05.0
05,9
51,9
09.0
06,0
70,9
48.0
06,3
30,0
00.0
06,4
56,6
00.0
0
Taxes L
evie
d for
Debt S
erv
ice
108,9
73.0
0104,1
90.0
0112,5
44.0
0107,1
28.0
0101,7
11.0
0
Sta
te F
acili
ties G
rant
144,2
70.4
8267,3
27.7
419,3
37.7
8158,1
43.5
11,2
27,0
59.4
68,6
34.4
2
Cancella
tion o
f S
tate
Facili
ties G
rant R
eceiv
able
(109,3
10.0
0)
Unre
str
icte
d F
edera
l and S
tate
Aid
6,9
18,0
87.8
27,4
13,1
40.8
27,0
87,7
95.2
27,5
88,8
07.4
58,1
10,7
71.6
08,0
47,9
74.4
79,7
94,6
61.2
010,0
81,5
25.8
012,1
79,3
72.7
413,5
86,3
86.8
6
Tuitio
n R
eceiv
ed
41,1
97.0
03,8
08.5
0
Oth
er
Local G
overn
ment U
nits -
Restr
icte
d52,2
40.0
055,3
80.1
410,8
62.5
617,8
50.0
0
Investm
ent E
arn
ings
18,6
53.6
86,9
89.2
51,3
95.8
81,3
46.3
4380.9
51,8
54.7
01,0
45.6
4251.1
6429.0
1827.9
4
Mis
cella
neous Incom
e87,9
25.2
051,7
05.3
410,1
28.9
719,6
89.1
264,1
35.0
67,2
64.4
669,5
49.9
695,4
51.1
9181,7
36.6
1122,8
37.7
1
Tota
l G
overn
menta
l A
ctivitie
s12,3
95,4
60.7
012,8
73,4
94.4
112,8
66,5
52.6
913,4
49,9
89.2
113,9
16,1
45.3
914,0
68,2
92.1
417,0
44,2
25.2
616,2
56,8
10.5
718,7
32,7
35.3
620,1
70,4
61.0
1
Busin
ess-t
ype A
ctivitie
s:
Investm
ent E
arn
ings
2.2
110.7
822.1
543.5
748.8
2135.2
972.5
4
Cancella
tion o
f P
rior
Year
Receiv
able
(2,0
63.1
4)
Mis
cella
neous Incom
e1,4
96.5
1
Tota
l B
usin
ess-t
ype A
ctivitie
s0.0
00.0
00.0
02.2
110.7
822.1
543.5
71,5
45.3
3135.2
9(1
,990.6
0)
Tota
l D
istr
ict-
wid
e12,3
95,4
60.7
012,8
73,4
94.4
112,8
66,5
52.6
913,4
49,9
91.4
213,9
16,1
56.1
714,0
68,3
14.2
917,0
44,2
68.8
316,2
58,3
55.9
018,7
32,8
70.6
520,1
68,4
70.4
1
Ch
an
ge in
Net
Po
sit
ion
Govern
menta
l A
ctivitie
s758,2
84.8
61,1
62,7
47.7
51,2
17,8
70.2
71,2
29,1
25.2
61,0
52,0
60.0
2803,1
10.5
7969,9
81.3
4(5
28,1
70.3
4)
(709,0
91.2
0)
(624,7
08.2
3)
Busin
ess-t
ype A
ctivitie
s32,3
28.0
639,1
76.7
016,1
43.4
1(1
9,0
41.7
1)
12,2
63.0
689,2
38.2
677,2
16.5
946,8
19.1
5(5
5,9
45.9
5)
(90,1
73.1
2)
Tota
l D
istr
ict
790,6
12.9
21,2
01,9
24.4
51,2
34,0
13.6
81,2
10,0
83.5
51,0
64,3
23.0
8892,3
48.8
31,0
47,1
97.9
3(4
81,3
51.1
9)
(765,0
37.1
5)
(714,8
81.3
5)
Sourc
e: C
AF
R S
ched
ule
A-2
-93-
Exh
ibit
J-3
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Fu
nd
Ba
lan
ce
s G
ove
rnm
en
tal
Fu
nd
s
Last
Ten
Fis
cal Y
ears
(mo
dif
ied
ac
cru
al
bas
is o
f a
cc
ou
nti
ng
)
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Gen
era
l F
un
d
Re
se
rve
d2,2
46,2
08.7
53,0
63,1
11.2
4
Unre
serv
ed
(97
,914
.72
)(5
6,3
31
.87
)
Restr
icte
d2,5
14,7
03.2
83,6
28,7
58.6
54,0
44,0
63.7
53,1
20,9
01.5
83,3
47,1
84.6
62,4
95,4
67.7
51,6
21,6
96.9
1981,5
36.1
8
Assig
ned
259,0
37.5
028,0
04.2
027,1
35.0
7294,4
72.4
6172,3
04.9
3240,5
13.6
7408,6
09.4
8372,2
68.7
8
Unassig
ned
(97
,914
.72
)(5
6,3
31
.87
)(3
17
,77
5.2
6)
(31
6,8
57
.74)
(37
0,9
04
.00)
(36
7,5
67
.68)
(40
0,0
39
.89)
(35
4,9
29
.42)
(35
8,1
54
.34)
(37
4,5
68
.27)
Tota
l G
enera
l fu
nd
2,0
50,3
79.3
12,9
50,4
47.5
02,4
55,9
65.5
23,3
39,9
05.1
13,7
00,2
94.8
23,0
47,8
06.3
63,1
19,4
49.7
02,3
81,0
52.0
01,6
72,1
52.0
5979,2
36.6
9
All O
ther
Go
vern
men
tal F
un
ds
Unre
serv
ed, R
eport
ed in:
Capital P
roje
cts
Fund
53,0
13.5
2554,8
49.0
0423,6
55.5
8429,2
37.0
5617,1
71.3
978,1
69.4
6
De
bt
Serv
ice
0.1
10.1
10.1
10.1
1
Tota
l A
ll O
ther
Govern
menta
l F
unds
0.1
153,0
13.6
3554,8
49.1
1423,6
55.6
9429,2
37.0
5617,1
71.3
978,1
69.4
60.0
00.0
00.0
0
Sourc
e:
CA
FR
Sch
edule
B-1
GA
SB
No. 54 w
as im
ple
mente
d in the 2
011 fis
cal year,
whic
h r
equir
ed the p
resenta
tion o
f fu
nd b
ala
nces to b
e r
eport
ed in d
iffe
rent cla
ssific
ations
from
those p
resente
d in p
rior
years
. P
rior
years
have n
ot been r
esta
ted a
bove, nor
or
they r
equir
ed to b
e.
-94-
Exh
ibit
J-4
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Ch
an
ges i
n F
un
d B
ala
nces G
overn
men
tal
Fu
nd
s
Last
Ten
Fis
cal
Years
(mo
dif
ied
accru
al
basis
of
acco
un
tin
g)
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Reven
ues
Tax L
evy
5,3
70,7
94.0
05,3
49,4
19.0
05,5
67,5
82.0
05,6
71,2
66.0
05,7
21,5
20.0
05,8
35,2
05.0
05,9
51,9
09.0
06,0
70,9
48.0
06,3
30,0
00.0
06,4
56,6
00.0
0
Tuitio
n17,8
50.0
041,1
97.0
03,8
08.5
0
Oth
er
Local G
overn
ment
Units -
Restr
icte
d52,2
40.0
055,3
80.1
410,8
62.5
6
Inte
rest
Earn
ed o
n E
merg
ency R
eserv
e F
unds
25.0
0101.7
817.4
019.5
9
Inte
rest
Earn
ed o
n C
apital R
eserv
e F
unds
1,4
04.7
2259.8
9516.4
0274.5
5111.4
8495.0
0196.3
952.0
097.0
0179.0
0
Inte
rest
Earn
ed o
n M
ain
tenance R
eserv
e F
unds
112.8
825.0
0115.6
575.0
0176.4
2105.0
026.0
031.0
046.0
0
Inte
rest
Earn
ing
s17,2
48.9
66,6
16.4
8829.4
8854.3
6194.4
71,1
83.2
8744.2
5173.1
6283.6
1583.3
5
Mis
cella
neous
89,2
96.0
351,7
05.3
410,1
28.9
719,6
89.1
264,1
35.0
67,2
64.4
669,5
49.9
695,4
51.1
9181,7
36.6
1122,8
37.7
1
Sta
te S
ourc
es
7,4
84,7
32.0
96,8
08,1
12.3
47,8
88,3
56.4
28,2
69,3
49.9
98,7
21,2
06.7
48,7
26,0
86.1
29,9
45,9
07.1
49,0
91,4
67.7
79,3
81,8
00.6
510,1
69,4
15.9
5
Federa
l S
ourc
es
616,0
10.8
92,0
50,5
25.1
61,2
30,7
93.7
7910,0
70.8
5988,0
13.4
7979,3
55.7
8823,1
86.5
2985,0
34.2
1876,2
09.3
1960,6
30.2
8
Tota
l R
evenues
13,5
79,4
86.6
914,3
18,9
91.0
914,7
53,6
37.1
814,8
82,5
84.8
615,4
95,2
56.2
215,5
67,6
16.0
616,7
91,5
98.2
616,2
43,1
52.3
316,8
11,3
72.5
817,7
14,1
20.3
8
Exp
en
dit
ure
s
Instr
uction:
Reg
ula
r4,5
25,2
58.3
34,8
14,4
36.7
95,0
47,3
47.1
44,7
58,3
47.7
45,3
03,3
38.8
45,3
82,6
35.5
05,5
16,2
35.1
35,4
70,4
57.1
55,2
72,6
42.2
45,6
71,8
50.1
3
Specia
l 919,4
98.9
7944,4
58.5
9867,2
24.6
4990,9
41.6
01,0
55,3
39.4
51,2
32,1
77.8
01,3
54,1
97.1
21,5
07,5
30.2
31,6
35,9
37.1
61,5
20,5
05.9
3
Oth
er
Specia
l In
str
uction
312,4
90.5
0245,8
30.4
9209,3
66.0
2451,7
50.8
2375,2
22.1
6377,2
04.3
7582,5
98.7
1599,7
26.5
1545,5
76.3
3537,6
60.7
2
School-S
ponsore
d/O
ther
Instr
uctional
106,9
54.4
4105,6
17.3
888,9
66.2
772,8
32.7
680,8
62.3
184,6
24.9
398,9
87.6
184,4
39.1
084,9
89.0
896,7
77.5
9
Support
Serv
ices:
Instr
uction -
Tuitio
n665,2
51.9
8401,7
78.9
0461,2
09.2
3439,8
36.2
4255,1
39.0
3180,9
15.5
8151,8
32.0
5212,7
62.2
5184,2
21.4
7248,5
68.5
6
Stu
dent
& I
nstr
uction R
ela
ted S
erv
ices
1,3
14,7
74.4
31,4
18,7
60.1
21,6
17,7
01.8
11,3
66,1
40.2
71,5
21,7
42.4
81,5
70,5
92.0
11,4
99,5
61.0
71,6
66,3
55.7
01,5
80,3
19.4
91,6
37,1
16.7
0
School A
dm
inis
tration
457,7
15.6
9452,0
33.4
0477,5
14.4
5430,7
17.8
2431,1
94.8
8451,4
99.8
5462,0
62.6
7457,9
68.7
1472,9
88.2
3494,7
40.7
9
Genera
l A
dm
inis
tration
316,5
12.7
5389,3
73.8
3317,7
51.7
6287,8
26.2
4371,6
79.8
3321,8
25.0
4324,3
16.8
2312,2
28.9
8337,0
48.3
3327,5
29.8
1
Centr
al S
erv
ices &
Adm
in.
Info
. T
echnolo
gy
486,0
94.7
4432,2
44.0
5446,3
73.0
4368,2
50.1
4431,6
82.1
2440,5
62.2
6440,8
94.3
6414,1
30.3
6463,1
05.6
2482,5
73.6
4
Opera
tions a
nd M
ain
tenance
874,3
09.2
7837,4
45.9
7817,5
52.1
4872,4
17.7
8681,6
03.7
1859,4
26.0
6879,0
88.9
3828,9
86.4
0844,1
98.5
1801,0
90.7
0
Stu
dent
Tra
nsport
ation
259,8
71.4
7213,7
71.0
8197,4
44.8
1251,4
73.9
1237,4
38.7
6226,5
81.0
8217,0
15.1
9265,6
35.3
6229,7
87.4
8323,4
39.4
4
Em
plo
yee B
enefits
2,2
58,2
18.2
22,5
42,0
26.4
42,6
74,8
97.1
72,9
34,3
72.3
53,4
16,5
13.7
33,2
99,7
33.1
63,8
58,7
84.9
54,3
34,8
08.7
74,9
34,4
58.1
35,3
45,6
66.5
1
Specia
l S
chools
Chart
er
School
3,6
50.0
076,9
03.0
046,4
96.0
0117,5
16.0
0
Capital O
utlay
465,4
14.8
8413,7
15.1
91,3
92,2
67.0
7617,6
21.0
2798,5
27.8
51,6
53,5
05.9
41,8
73,3
82.2
4827,7
86.9
7888,5
04.4
6801,9
99.2
2
Debt
Serv
ice:
Princip
al
160,0
00.0
0160,0
00.0
0160,0
00.0
0160,0
00.0
0160,0
00.0
0
Inte
rest
and O
ther
Charg
es
45,0
00.0
036,0
00.0
027,0
00.0
018,0
00.0
09,0
00.0
0
Tota
l G
overn
menta
l F
und E
xpenditure
s13,1
71,0
15.6
713,4
07,4
92.2
314,8
02,6
15.5
514,0
20,5
28.6
915,1
29,2
85.1
516,0
81,2
83.5
817,2
58,9
56.8
517,0
59,7
19.4
917,5
20,2
72.5
318,4
07,0
35.7
4
Excess (
Deficie
ncy)
of
Revenues
Over
(Under)
Expenditure
s408,4
71.0
2911,4
98.8
6(4
8,9
78.3
7)
862,0
56.1
7365,9
71.0
7(5
13,6
67.5
2)
(467,3
58.5
9)
(816,5
67.1
6)
(708,8
99.9
5)
(692,9
15.3
6)
Oth
er
Fin
an
cin
g S
ou
rces (
Uses)
Opera
ting
Tra
nsfe
rs I
n131,1
35.0
01,4
61,5
00.0
0312,8
60.9
30.1
11,1
15,8
75.0
5231,7
10.5
5
Opera
ting
Tra
nsfe
rs O
ut
(131,1
35.0
0)
(1,4
61,5
00.0
0)
(312,8
60.9
3)
(0.1
1)
(1,1
15,8
75.0
5)
(231,7
10.5
5)
Cancella
tion o
f A
ccounts
Receiv
able
(109,3
10.0
0)
Capital Leases (
non-b
udg
ete
d)
49,1
13.4
0
Tota
l O
ther
Fin
ancin
g S
ourc
es (
Uses)
(109,3
10.0
0)
49,1
13.4
0
Net
Chang
es in F
und B
ala
nce
408,4
71.0
2911,4
98.8
6(4
8,9
78.3
7)
752,7
46.1
7365,9
71.0
7(4
64,5
54.1
2)
(467,3
58.5
9)
(816,5
67.1
6)
(708,8
99.9
5)
(692,9
15.3
6)
Debt
Serv
ice a
s a
perc
enta
ge o
f
noncapital expenditure
s1.6
1%
1.5
1%
1.3
9%
1.3
3%
1.1
8%
So
urc
e: C
AF
R S
ched
ule
B-2
Note
: N
oncapital expenditure
s a
re t
ota
l expenditure
s less c
apital outlay.
-95-
Exhibit J-5
BOROUGH OF HALEDON SCHOOL DISTRICT
General Fund Other Local Revenue by Source
Last Ten Fiscal Years
Unaudited
Interlocal
Fiscal Year Interest on Agree- Various
Ended June 30, Tuition Investments ments E-Rate Misc. Total
2009 18,653.68 49,620.00 38,305.20 106,578.88
2010 6,989.25 52,240.00 51,705.34 110,934.59
2011 1,395.88 55,380.14 10,128.97 66,904.99
2012 1,346.34 10,862.56 19,689.12 31,898.02
2013 17,500.00 380.95 46,254.11 64,135.06
2014 17,850.00 1,854.70 7,264.46 26,969.16
2015 744.25 69,549.96 70,294.21
2016 173.16 95,451.19 95,624.35
2017 41,197.00 429.01 104,462.05 77,274.56 223,362.62
2018 3,808.50 583.35 79,337.27 39,691.94 123,421.06
Source: District records.
-96-
Ex
hib
it J
-6
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
As
se
ss
ed
an
d E
sti
ma
ted
Ac
tua
l V
alu
e o
f T
ax
ab
le P
rop
ert
y
La
st
Te
n F
isc
al Y
ea
rs
Un
au
dit
ed
Es
tim
ate
d
Ne
t A
ss
es
se
dA
ctu
al (C
ou
nty
To
tal D
ire
ct
Ye
ar
To
tal A
ss
es
se
dP
ub
lic
Uti
liti
es
Va
lua
tio
nE
qu
alize
d)
Sc
ho
ol T
ax
Ra
te
En
de
d D
ec
. 3
1,
Va
ca
nt
La
nd
Re
sid
en
tia
lC
om
me
rcia
lIn
du
str
ial
Ap
art
me
nt
Va
lue
aT
ax
ab
leV
alu
eb
20
08
3,8
50
,10
02
65
,55
9,2
00
36
,98
1,1
00
13
,45
4,8
00
8,5
19
,00
03
28
,36
4,2
00
2,1
07
,17
23
30
,47
1,3
72
72
8,2
89
,99
21
.07
82
20
09
3,7
19
,00
02
69
,21
3,0
00
36
,12
1,1
00
12
,22
5,5
00
8,4
79
,30
03
29
,75
7,9
00
2,0
85
,71
83
31
,84
3,6
18
73
1,4
23
,30
41
.12
51
20
10
3,7
53
,80
02
68
,75
8,2
00
36
,30
5,3
00
12
,22
5,5
00
8,4
79
,30
03
29
,52
2,1
00
2,2
63
,70
03
31
,78
5,8
00
68
6,4
45
,11
51
.21
60
20
11
3,7
69
,40
02
68
,48
2,0
00
36
,68
0,8
00
12
,23
5,3
00
8,4
79
,30
03
29
,64
6,8
00
32
9,6
46
,80
06
52
,80
3,3
90
1.2
98
6
20
12
4,2
61
,70
02
66
,85
5,2
00
36
,20
3,8
00
12
,23
5,3
00
8,4
79
,30
03
28
,03
5,3
00
32
8,0
35
,30
06
16
,79
0,5
75
1.3
09
1
20
13
3,7
23
,50
02
66
,02
4,1
00
35
,89
7,5
00
12
,12
4,5
00
8,4
79
,30
03
26
,24
8,9
00
32
6,2
48
,90
05
81
,27
8,5
10
1.3
54
9
20
14
(A
)5
,72
3,6
00
39
3,0
38
,50
07
7,4
73
,40
02
3,7
67
,20
01
6,9
74
,60
05
16
,97
7,3
00
51
6,9
77
,30
05
32
,57
6,3
89
0.8
31
0
20
15
5,3
85
,60
03
92
,16
0,0
00
77
,02
7,1
00
22
,96
2,7
00
17
,58
6,6
00
51
5,1
22
,00
05
15
,12
2,0
00
53
8,2
82
,43
90
.92
40
20
16
5,3
85
,60
03
90
,92
7,2
00
75
,45
1,0
00
23
,17
1,7
00
18
,01
5,4
00
51
2,9
50
,90
05
12
,95
0,9
00
52
1,5
01
,46
10
.94
40
20
17
5,3
17
,40
03
91
,59
6,8
00
72
,09
4,3
00
23
,11
9,7
00
18
,08
7,3
00
51
0,2
15
,50
05
10
,21
5,5
00
53
7,1
52
,25
60
.99
70
(A
) R
eva
lua
tio
n Y
ea
r
So
urc
e: P
assa
ic C
ou
nty
, A
bstr
act o
f R
ata
ble
s a
nd
Mu
nic
ipa
l T
ax A
sse
sso
r
No
te: R
ea
l p
rop
ert
y is r
eq
uire
d to
be
asse
sse
d a
t so
me
pe
rce
nta
ge
of tr
ue
va
lue
(fa
ir o
r m
ark
et va
lue
) e
sta
blis
he
d b
y e
ach
Co
un
ty B
oa
rd o
f T
axa
tio
n.
R
ea
sse
ssm
en
t o
ccu
rs w
he
n C
ou
nty
Bo
ard
of T
axa
tio
n r
eq
ue
sts
Tre
asu
ry to
ord
er
a r
ea
sse
ssm
en
t.
a
T
axa
ble
Va
lue
of M
ach
ine
ry, Im
ple
me
nts
an
d E
qu
ipm
en
t o
f T
ele
ph
on
e, T
ele
gra
ph
an
d M
esse
ng
er
Syste
m C
om
pa
nie
s.
b
T
ax r
ate
s a
re p
er
$1
00
of a
sse
sse
d v
alu
e.
-97-
Exhibit J-7
BOROUGH OF HALEDON SCHOOL DISTRICT
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Per $100 of Assessed Valuation
Overlapping Rates
General Total Direct and
Assessment Obligation Local Regional overlapping Tax
Year Basic Ratea
Debt Service b
School District School District Municipality County Rate
2008 1.0782 1.0782 1.6158 1.5166 1.1124 5.3230
2009 1.1251 1.1251 1.6062 1.6419 1.1048 5.4780
2010 1.2160 1.2160 1.6380 1.7950 1.1090 5.7580
2011 1.2986 1.2986 1.6989 1.9033 1.1402 6.0410
2012 1.3091 1.3091 1.7300 1.9649 1.1860 6.1900
2013 1.3549 1.3549 1.7648 2.0535 1.2008 6.3740
2014* 0.8310 0.8310 1.1430 1.3800 0.7250 4.0790
2015 0.9237 0.9237 1.1628 1.4234 0.7943 4.3042
2016 0.9440 0.9440 1.2050 1.4510 0.7610 4.3610
2017 0.9970 0.9970 1.2489 1.4836 0.7755 4.5050
* Revaluation Year
Source: District Records and Municipal Tax Collector.
-98-
Exh
ibit
J-8
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Sch
ed
ule
of
Pri
ncip
al
Taxp
ayers
Cu
rren
t an
d N
ine Y
ears
Ag
o
2017
2008
Taxab
le%
of
Dis
tric
t's
Taxab
le%
of
Dis
tric
t's
Assessed
Ran
kN
et
Assessed
Assessed
Ran
kN
et
Assessed
Taxp
ayer
Valu
eO
pti
on
al
Valu
ati
on
Valu
eO
pti
on
al
Valu
ati
on
Acquakanonk V
illage
11,8
37,0
00
12.3
2%
6,0
23,3
00
11.8
2%
Self S
tora
ge o
f H
ale
don
5,7
02,0
00
31.1
2%
2,1
30,0
00
40.6
4%
Belm
ont
Esta
tes,
LLC
5,3
01,0
00
41.0
4%
A.M
. R
ealty A
ssoc.
4,7
67,5
00
20.9
3%
3,3
53,1
00
21.0
1%
Nationw
ide E
nte
rpri
ses,
LLC
3,4
99,0
00
50.6
9%
1,2
03,8
00
60.3
6%
Bel-
Jo A
ssoc.
LP
3,4
45,0
00
60.6
8%
2,0
90,7
00
50.6
3%
Sto
ne I
ndustr
ies
2,4
47,8
00
70.4
8%
2,8
29,4
00
30.8
6%
Taxpayer
#1
2,3
71,0
00
80.4
6%
C &
P R
ealty
2,2
62,0
00
90.4
4%
Beazer
Hom
es C
orp
.1,8
68,1
00
10
0.3
7%
Faber
Bro
s.
Hold
ings,
LLC
1,1
50,0
00
70.3
5%
Salv
ato
re L
aR
osa
840,0
00
80.2
5%
20 H
als
ey C
orp
800,0
00
90.2
4%
Veri
zon
800,0
00
10
0.2
4%
43,5
00,4
00
8.5
3%
21,2
20,3
00
6.4
2%
-99-
Exhibit J-9
BOROUGH OF HALEDON SCHOOL DISTRICT
School Tax Levies and Collections
Last Ten Years
Collected within the Fiscal Year
Fiscal Taxes Levied of the Levya
Collections in
Year Ended for the Percentage Subsequent
June 30, Fiscal Year Amount of Levy Years
2009 5,370,794 4,932,309 91.84% 438,485
2010 5,349,419 5,349,419 100.00%
2011 5,567,582 5,567,582 100.00%
2012 5,671,266 4,743,910 83.65% 927,356
2013 5,721,520 5,253,203 91.81% 468,317
2014 5,835,205 4,862,671 83.33% 972,534
2015 5,951,909 5,455,917 91.67% 495,992
2016 6,070,948 5,565,036 91.67% 505,912
2017 6,330,000 5,683,768 89.79% 646,232
2018 6,456,600 6,456,600 100.00% 0
Source: District records including the Certificate and Report of School Taxes (A4F form)
a School Taxes are collected by the Municipal Tax Collector. Under New Jersey Statute,
a municipality is required to remit to the school district the entire property tax balance,
in the amount voted upon or certified prior to the end of the school year.
-100-
Exh
ibit
J-1
0
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Rati
os o
f O
uts
tan
din
g D
eb
t b
y T
yp
e
Last
Ten
Fis
cal Y
ears
Busin
ess-T
ype
Activitie
s
Fis
cal
Year
Ended
June 3
0,
Genera
l
Oblig
ation
Bonds
Cert
ific
ate
s o
f
Part
icip
ation
Capital
Leases
Bond
Anticip
ation
Note
s
(BA
Ns)
Capital Leases
Tota
l D
istr
ict
Perc
enta
ge o
f
Pers
onal
Incom
e a
Per
Capita a
2009
640,0
00.0
0640,0
00.0
00.1
9%
74
2010
480,0
00.0
0480,0
00.0
00.1
4%
58
2011
320,0
00.0
0320,0
00.0
00.1
0%
38
2012
160,0
00.0
0160,0
00.0
00.0
5%
19
2013
0.0
00.0
00.0
0%
2014
0.0
00.0
00.0
0%
2015
0.0
00.0
00.0
0%
2016
0.0
00.0
00.0
0%
2017
0.0
00.0
00.0
0%
2018
0.0
00.0
00.0
0%
No
te:
Deta
ils r
egard
ing the d
istr
ict's
outs
tandin
g d
ebt can b
e f
ound in the n
ote
s to the f
inancia
l sta
tem
ents
.
aS
ee E
xhib
it N
J J
-14 f
or
pers
onal in
com
e a
nd p
opula
tion d
ata
. T
hese r
atios a
re c
alc
ula
ted u
sin
g p
ers
onal in
com
e a
nd
popula
tion f
or
the p
rior
cale
ndar
year.
Govern
menta
l A
ctivitie
s
-101-
Exh
ibit
J-1
1
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Rati
os o
f N
et
Gen
era
l B
on
ded
Deb
t O
uts
tan
din
g
Last
Ten
Fis
cal Y
ears
Fis
cal
Year
Ended
June 3
0,
Genera
l
Oblig
ation
Bonds
Deductions
Net G
enera
l
Bonded D
ebt
Outs
tandin
g
Perc
enta
ge o
f
Actu
al T
axable
Valu
e a
of
Pro
pert
yP
er
Capita b
2009
640,0
00.0
0-
640,0
00.0
00.1
9%
8,4
68
2010
480,0
00.0
0-
480,0
00.0
00.1
4%
8,7
05
2011
320,0
00.0
0-
320,0
00.0
00.1
0%
8,3
31
2012
160,0
00.0
0-
160,0
00.0
00.0
5%
8,3
84
2013
-
0.0
00.0
0%
8,3
96
2014
-
0.0
00.0
0%
8,4
18
2015
0.0
00.0
0%
8,4
39
2016
0.0
00.0
0%
8,4
50
2017
0.0
00.0
0%
8,4
50
2018
0.0
00.0
0%
8,4
63
No
tes:
Deta
ils r
egard
ing the d
istr
ict's o
uts
tandin
g d
ebt can b
e f
ound in the n
ote
s to the f
inancia
l sta
tem
ents
.
aS
ee E
xhib
it N
J J
-6 f
or
pro
pert
y tax d
ata
.
bP
opula
tion d
ata
can b
e f
ound in E
xhib
it N
J J
-14.
Genera
l B
onded D
ebt O
uts
tandin
g
Deductions a
re a
llow
able
for
resourc
es that are
restr
icte
d to r
epayi
ng the p
rincip
al of
debt outs
tandin
g.
-102-
Ex
hib
it J
-12
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Dir
ec
t a
nd
Ove
rla
pp
ing
Go
ve
rnm
en
tal A
cti
vit
ies
De
bt
As
of
Ju
ne
30
, 2
01
8
Go
ve
rnm
en
tal U
nit
De
bt
Ou
tsta
nd
ing
(1)
Estim
ate
d
Pe
rce
nta
ge
Ap
plic
ab
le a
Estim
ate
d
Sh
are
of
Ove
rla
pp
ing
De
bt
De
bt re
pa
id w
ith
pro
pe
rty ta
xe
s
Bo
rou
gh
of
Ha
led
on
9,5
32
,13
0$
10
0.0
00
%9
,53
2,1
30
$
Oth
er
de
bt
Pa
ssa
ic C
ou
nty
Ge
ne
ral O
blig
atio
n D
eb
t3
56
,65
4,8
74
1
.15
06
%4
,10
3,5
34
Pa
ssa
ic C
ou
nty
Utilit
y A
uth
ori
ty5
1,0
80
,00
0
1.1
50
6%
58
7,7
07
Su
bto
tal, o
ve
rla
pp
ing
de
bt
14
,22
3,3
71
Ha
led
on
Sc
ho
ol D
istr
ict
Dir
ec
t D
eb
t-
To
tal d
ire
ct
an
d o
ve
rla
pp
ing
de
bt
14
,22
3,3
71
$
So
urc
es
:A
sse
sse
d v
alu
e d
ata
use
d to
estim
ate
ap
plic
ab
le p
erc
en
tag
es p
rovid
ed
by th
e P
assa
ic C
ou
nty
Bo
ard
of
Ta
xa
tio
n.
De
bt o
uts
tan
din
g d
ata
pro
vid
ed
by e
ach
go
ve
rnm
en
tal u
nit.
No
te:
Ove
rla
pp
ing
go
ve
rnm
en
ts a
re th
ose
th
at co
incid
e, a
t le
ast in
pa
rt, w
ith
th
e g
eo
gra
ph
ic b
ou
nd
ari
es o
f th
e D
istr
ict.
Th
is s
ch
ed
ule
estim
ate
s th
e p
ort
ion
of
the
ou
tsta
nd
ing
de
bt o
f th
ose
ove
rla
pp
ing
go
ve
rnm
en
ts th
at is
bo
rne
by th
e r
esid
en
ts a
nd
bu
sin
esse
s o
f H
ale
do
n. T
his
pro
ce
ss r
eco
gn
ize
s th
at, w
he
n c
on
sid
eri
ng
th
e D
istr
ict's
ab
ility
to
issu
e a
nd
re
pa
y lo
ng
-te
rm d
eb
t, th
e
en
tire
de
bt b
urd
en
bo
rne
by th
e r
esid
en
ts a
nd
bu
sin
esse
s s
ho
uld
be
ta
ke
n in
to a
cco
un
t. H
ow
eve
r th
is d
oe
s n
ot im
ply
th
at
eve
ry ta
xp
aye
r is
a r
esid
en
t, a
nd
th
ere
fore
re
sp
on
sib
le f
or
rep
ayin
g th
e d
eb
t, o
f e
ach
ove
rla
pp
ing
pa
ym
en
t.
aF
or
de
bt re
pa
id w
ith
pro
pe
rty ta
xe
s, th
e p
erc
en
tag
e o
f o
ve
rla
pp
ing
de
bt a
pp
lica
ble
is e
stim
ate
d u
sin
g ta
xa
ble
asse
sse
d p
rop
ert
y v
alu
es.
Ap
plic
ab
le p
erc
en
tag
es w
ere
estim
ate
d b
y d
ete
rmin
ing
th
e p
ort
ion
of
an
oth
er
go
ve
rnm
en
tal u
nit's
ta
xa
ble
va
lue
th
at is
with
in th
e
dis
tric
t's b
ou
nd
ari
es a
nd
div
idin
g it b
y e
ach
un
it's
to
tal ta
xa
ble
va
lue
.
(1)
De
bt In
form
atio
n a
s o
f D
ece
mb
er
31
, 2
01
7.
-103-
Exh
ibit
J-1
3
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Le
ga
l D
eb
t M
arg
in I
nfo
rma
tio
n,
Last
Ten
Fis
cal Y
ears
Le
ga
l D
eb
t M
arg
in C
alc
ula
tio
n f
or
Fis
ca
l Y
ea
r 2
018
Equalized v
alu
ation b
asis
2017
554,8
23,2
93
$
2016
538,2
48,5
83
2015
521,8
53,9
16
[A]
1,6
14,9
25,7
92
$
Avera
ge e
qualized v
alu
ation o
f ta
xable
pro
pert
y[A
/3]
538,3
08,5
97
$
16,1
49,2
58
[C]
16,1
49,2
58
$
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Debt lim
it20,8
14,7
95
$
21,1
61,2
75
$
20,5
45,2
63
$
19,4
87,3
25
$
18,4
92,7
19
$
17,4
21,1
79
$
16,6
30,9
55
$
16,0
28,1
05
$
15,9
83,9
62
$
16,1
49,2
58
$
Tota
l net debt applicable
to lim
it640,0
00
480,0
00
320,0
00
160,0
00
-
-
-
-
-
Legal debt m
arg
in20,1
74,7
95
$
20,6
81,2
75
$
20,2
25,2
63
$
19,3
27,3
25
$
18,4
92,7
19
$
17,4
21,1
79
$
16,6
30,9
55
$
16,0
28,1
05
$
15,9
83,9
62
$
16,1
49,2
58
$
Tota
l net debt applicable
to the lim
it
as a
perc
enta
ge o
f debt lim
it3.0
7%
2.2
7%
1.5
6%
0.8
2%
0.0
0%
0.0
0%
0.0
0%
0.0
0%
0.0
0%
0.0
0%
So
urc
e:
Equalized v
alu
ation b
ases w
ere
obta
ined fro
m the A
nnual R
eport
of th
e S
tate
of N
ew
Jers
ey,
De
pa
rtm
ent
of
Tre
asury
, D
ivis
ion o
f T
axa
tio
n
Fis
cal Y
ear
Debt lim
it (
3 %
of avera
ge e
qualization v
alu
e)
Tota
l N
et D
ebt A
pplicable
to L
imit
L
egal debt m
arg
in
-104-
Exhibit J-14
BOROUGH OF HALEDON SCHOOL DISTRICT
Demographic and Economic Statistics
Last Ten Years
Personal
Year Ended School District Income in Per Capita Unemployment
December 31, Population (1) Thousands $ (2) Income (3) Rate (4)
2008 8,468 326,890,204 38,603 9.00%
2009 8,705 350,080,280 40,216 16.80%
2010 8,334 330,051,402 39,603 17.10%
2011 8,384 339,040,576 40,439 16.90%
2012 8,396 353,354,056 42,086 16.60%
2013 8,418 360,324,072 42,804 9.00%
2014 8,439 363,889,680 43,120 8.50%
2015 8,450 380,697,850 45,053 6.60%
2016 8,450 395,798,000 46,840 6.50%
2017 8,463 402,390,261 47,547 6.00%
Source: (1) U.S. Bureau of the Census, Population Division,
(Estimates July 1, 2008-2017)
(2) Personal income of the District is based on County Information.
(3) U.S. Department of Commerce, County Information 2007-2016.
(4) N.J. Department of Labor.
-105-
Exhibit J-15
BOROUGH OF HALEDON SCHOOL DISTRICT
Schedule of Principal Employers
Current and Nine Years Ago
2016 2007
INFORMATION IS NOT AVAILABLE
-106-
Exh
ibit
J-1
6
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Fu
ll-t
ime E
qu
ivale
nt
Dis
tric
t E
mp
loyees b
y F
un
cti
on
/Pro
gra
m,
Last
Ten
Fis
cal Y
ears
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Fu
ncti
on
/Pro
gra
m
Instr
uction
Regula
r70
68
68
68
71
74
80
82.5
80.0
81.0
Specia
l education
13
13
13
15
17
17
17
18.5
21.7
20.0
Oth
er
specia
l education
10
13
13
13
14
14
14
12.8
212.9
13.0
Oth
er
instr
uction
33
33
33
33
Support
Serv
ices:
Stu
dent &
instr
uction r
ela
ted s
erv
ices
14
15
15
15
15
15
15.5
19
20.5
20.5
Genera
l adm
inis
tration
11
11
12
22
1.0
1.0
School adm
inis
trative s
erv
ices
55
55
55
55
5.0
6.0
Centr
al serv
ices
11
11
12
22
1.0
1.0
Adm
inis
trative Info
rmation T
echnolo
gy
11
11
12
22
0.0
0.0
Pla
nt opera
tions a
nd m
ain
tenance
99
99
99
98.5
9.5
9.0
Pupil
transport
ation
22
22
22
22
1.5
1.5
Oth
er
support
serv
ices
34
44
44
44
4.0
1.0
Food S
erv
ice
55
66
66
65
6.0
6.0
Child
Care
66
66
66
10
14.6
15.5
18.5
Tota
l143
146
147
149
155
161
171.5
180.9
2178.6
3178.5
0
So
urc
e:
Dis
tric
t P
ers
onnel R
ecord
s
-107-
Exh
ibit
J-1
7
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Op
era
tin
g S
tati
sti
cs,
Last
Ten
Fis
cal
Years
Pupil/
Teacher
Ratio
Fis
cal
Year
En
roll
men
t
a
Exp
en
dit
ure
sC
ost
Per
Pu
pil
% C
han
ge
b
Teach
ing
Sta
ffE
lem
en
tary
Avera
ge
Dail
y
En
roll
men
t
c
A
vera
ge
Dail
y
Att
en
dan
ce
% C
han
ge
in A
vera
ge
Dail
y
En
roll
men
t
Stu
den
t
Att
en
dan
ce
Perc
en
tag
e
2008-2
009
1046
12,5
00,6
00.7
911,9
50.8
66.3
2%
83
12.6
1046
988.0
0-3
.77%
94.4
6%
2009-2
010
1052
12,7
97,7
77.0
412,1
65.1
91.7
9%
81
13.0
1052
998.0
00.5
7%
94.8
7%
2010-2
011
1039
13,2
23,3
48.4
812,7
27.0
04.6
2%
81
12.8
1039
982.6
0-1
.24%
94.5
7%
2011-2
012
1037
13,3
83,3
07.6
712,9
05.7
91.4
0%
83
12.5
1037
987.3
1-0
.19%
95.2
1%
2012-2
013
1004
14,1
61,7
57.3
014,1
05.3
49.2
9%
88
11.4
1004
953.4
0-3
.18%
94.9
6%
2013-2
014
1018
14,4
27,7
77.6
414,1
72.6
70.4
8%
91
11.2
1018
960.7
41.3
9%
94.3
8%
2014-2
015
1029
15,3
85,5
74.6
114,9
51.9
75.5
0%
97
10.6
1029
971.8
01.0
8%
94.4
4%
2015-2
016
1050
16,2
31,9
32.5
215,4
58.9
83.3
9%
100.5
10.4
1050
976.8
72.0
4%
93.0
4%
2016-2
017
1041
16,6
31,7
68.0
715,9
76.7
23.3
5%
80
13.0
1041
983.7
8-0
.86%
94.5
0%
2017-2
018
1039
17,6
05,0
36.5
216,9
44.2
16.0
6%
101
10.3
1039
944.0
0-0
.19%
90.8
6%
Sourc
es:
Dis
tric
t R
ecord
s
Note
: E
nro
llment
based o
n a
nnual O
cto
ber
dis
tric
t count.
a-O
pera
ting E
xpenditure
s e
qual to
tal expenditure
s less d
ebt
serv
ice a
nd c
apital outlay.
b-T
eachin
g s
taff
inclu
des o
nly
full-
tim
e e
quiv
ale
nts
of
cert
ific
ate
d s
taff
.
c-A
vera
ge d
aily
enro
llment
and a
vera
ge d
aily
att
endance a
re o
bta
ined f
rom
the S
chool R
egis
ter
Sum
mary
.
-108-
Exh
ibit
J-1
8
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Sch
oo
l B
uild
ing
In
form
ati
on
Last
Ten
Fis
cal Y
ears
Dis
tric
t B
uild
ing
s2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Ele
menta
ry
Hale
don S
chool
S
quare
Feet
102,9
69
102,9
69
102,9
69
102,9
69
107,6
63
107,6
63
107,6
63
107,6
63
107,6
63
107,6
63
C
apacity(
stu
dents
)764
764
764
764
994
994
994
994
994
994
E
nro
llment
1,0
32
1,0
52
1,0
50
1,0
37
1,0
12
1,0
25
1,0
30
1,0
51
1,0
41
1,0
39
Num
ber
of
Schools
at June 3
0, 2018
Ele
menta
ry=
1
Sourc
e: D
istr
ict F
acili
ties O
ffic
e
-109-
J-1
9
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Ge
ne
ral
Fu
nd
Sc
he
du
le o
f R
eq
uir
ed
Ma
inte
na
nc
e f
or
Sc
ho
ol
Fa
cil
itie
s
Fo
r th
e F
isc
al
Ye
ar
En
de
d J
un
e 3
0,
UN
DIS
TR
IBU
TE
D E
XP
EN
DIT
UR
ES
- R
EQ
UIR
ED
MA
INT
EN
AN
CE
FO
R S
CH
OO
L F
AC
ILIT
IES
11-0
00-2
61-x
xx
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
* S
ch
oo
l F
ac
ilit
ies
Pro
jec
t #
(s
)
Ha
led
on
Sch
oo
lN
/A1
80
,75
9.0
71
80
,24
5.3
42
04
,53
7.7
71
98
,93
5.9
92
05
,02
7.0
01
70
,76
3.0
02
52
,95
6.0
12
12
,38
4.8
72
41
,21
8.8
62
17
,57
8.6
5
To
tal S
ch
oo
l F
acili
tie
s1
80
,75
9.0
71
80
,24
5.3
42
04
,53
7.7
71
98
,93
5.9
92
05
,02
7.0
01
70
,76
3.0
02
52
,95
6.0
12
12
,38
4.8
72
41
,21
8.8
62
17
,57
8.6
5
* S
ch
oo
l fa
cili
tie
s a
s d
efin
ed
un
de
r E
FC
A.
(N.J
.A.C
. 6
A:2
6-1
.2 a
nd
N.J
.A.C
. 6
:24
-1.3
)
-110-
Exhibit J-20
BOROUGH OF HALEDON SCHOOL DISTRICT
Insurance Schedule
June 30, 2018
Coverage Deductible
School Package Policy - Suburban Essex JIF
Reinsurer: Selective Insurance Company
Property - Blanket Limit of JIF 500,000
Member Limit: 27,945,870 5,000
Owner Group Retention: 100,000 p/occurrence
Owner Group District Deductible: 500 p/occurrence
Comprehensive General Liability (per occurrence) 16,000,000
Employee Benefits Liability (per occurrence) 16,000,000
Comprehensive Automobile Liability (per occurrence) 16,000,000
School Leaders Errors & Omissions
A C E American Insurance Company 16,000,000 p/district
Owner Group District Deductible: None
Workers Compensation 10,000
Suburban Essex JIF
Limit of Liability WC Statutory
EL 11,000,000
Public Employees' Faithful Performance Bond 500,000 1,000
Owner Group District Deductible: 0
Public Employees' Faithful Performance
Position Bond
Treasurer of School Moneys 100,000
Travelers Insurance Co.
Board Secretary/Business Administrator 100,000
Travelers Insurance Co.
-111-
SINGLE AUDIT SECTION
Ferraioli, Wielkotz, Cerullo & Cuva, P.A.Charles J. Ferraioli, Jr., MBA, CPA, RMA Certified Public Accountants Newton Office Steven D. Wielkotz, CPA, RMA 401 Wanaque Avenue 100B Main Street James J. Cerullo, CPA, RMA Pompton Lakes, New Jersey 07442 Newton, NJ 07860Paul J. Cuva, CPA, RMA 973-835-7900 973-579-3212Thomas M. Ferry, CPA, RMA Fax 973-835-6631 Fax 973-579-7128
K-1 Page 1 of 2
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVERFINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED INACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable President andMembers of the Board of EducationBorough of Haledon School DistrictCounty of Passaic, New Jersey
We have audited, in accordance with auditing standards generally accepted in the United States ofAmerica; audit requirements as prescribed by the Office of School Finance, Department ofEducation, State of New Jersey; and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States, thefinancial statements of the governmental activities, the business-type activities and each major fundand the aggregate remaining fund information of the Board of Education of the Borough of HaledonSchool District, in the County of Passaic, New Jersey, as of and for the year ended June 30, 2018,and the related notes to the financial statements, which collectively comprise the District’s basicfinancial statements, and have issued our report thereon dated January 22, 2019.
Internal Control Over Financial Reporting
In planning and performing our audit on the financial statements, we considered the Borough ofHaledon Board of Education’s internal control over financial reporting (internal control) todetermine the audit procedures that are appropriate in the circumstances for the purpose ofexpressing our opinions on the financial statements, but not for the purpose of expressing an opinionon the effectiveness of the Borough of Haledon Board of Education’s internal control. Accordingly,we do not express an opinion on the effectiveness of the Borough of Haledon Board of Education’sinternal control.
A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, to prevent,or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or acombination of deficiencies, in internal control, such that there is a reasonable possibility that amaterial misstatement of the entity’s financial statements will not be prevented, or detected and
-112-
Honorable President and K-1Members of the Board of Education Page 2 of 2
corrected on a timely basis. A significant deficiency is a deficiency, or a combination ofdeficiencies, in internal control that is less severe than a material weakness, yet important enough tomerit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph ofthis section and was not designed to identify all deficiencies in internal control that might bematerial weaknesses or significant deficiencies. Given these limitations, during our audit we did notidentify any deficiencies in internal control that we consider to be material weaknesses. However,material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Borough of Haledon Board ofEducation’s financial statements are free of material misstatement, we performed tests of itscompliance with certain provisions of laws, regulations, contracts and grant agreements,noncompliance with which could have a direct and material effect on the determination of financialstatement amounts. However, providing an opinion on compliance with those provisions was not anobjective of our audit and, accordingly, we do not express such an opinion. The results of our testsdisclosed no instances of noncompliance or other matters that are required to be reported underGovernment Auditing Standards or the audit requirements as prescribed by the Office of SchoolFinance, Department of Education, State of New Jersey.
We noted certain matters that were required to be reported to the Board of Education of the Boroughof Haledon School District in the separate Auditors’ Management Report on AdministrativeFindings - Financial, Compliance and Performance dated January 22, 2019.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control andcompliance and the results of that testing, and not to provide an opinion on the effectiveness of theentity’s internal control or on compliance. This report is an integral part of an audit performed inaccordance with Government Auditing Standards in considering the entity’s internal control andcompliance. Accordingly, this communication is not suitable for any other purpose.
James Cerullo, C.P.A.Licensed Public School AccountantNo. 881
FERRAIOLI, WIELKOTZ, CERULLO & CUVA, P.A.Certified Public AccountantsPompton Lakes, New Jersey
January 22, 2019
James Cerullo
Ferraioli, Wielkotz, Cerullo & Cuva,P.A.
-113-
Ferraioli, Wielkotz, Cerullo & Cuva, P.A.Charles J. Ferraioli, Jr., MBA, CPA, RMA Certified Public Accountants Newton Office Steven D. Wielkotz, CPA, RMA 401 Wanaque Avenue 100B Main Street James J. Cerullo, CPA, RMA Pompton Lakes, New Jersey 07442 Newton, NJ 07860Paul J. Cuva, CPA, RMA 973-835-7900 973-579-3212Thomas M. Ferry, CPA, RMA Fax 973-835-6631 Fax 973-579-7128
K-2 Page 1 of 3
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJORPROGRAM AND REPORT ON INTERNAL CONTROL OVER
COMPLIANCE AS REQUIRED BY THE UNIFORM GUIDANCEAND N.J. OMB CIRCULAR 15-08
Honorable President andMembers of the Board of EducationBorough of Haledon School DistrictCounty of Passaic, New Jersey
Report on Compliance for Each Major Federal and State Program
We have audited the Board of Education of the Borough of Haledon School District in the County ofPassaic, New Jersey, compliance with the types of compliance requirements described in the OMBCompliance Supplements and the New Jersey State Aid/Grant Compliance Supplement that couldhave a direct and material effect on each of the Borough of Haledon Board of Education’s majorfederal and state programs for the year ended June 30, 2018. The Borough of Haledon Board ofEducation’s major federal and state programs are identified in the summary of auditor’s resultssection of the accompanying 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 and state programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the Borough of Haledon Boardof Education’s major federal and state programs based on our audit of the types of compliancerequirements referred to above. We conducted our audit of compliance in accordance with auditingstandards generally accepted in the United States of America; the standards applicable to financialaudits contained in Government Auditing Standards, issued by the Comptroller General of theUnited States; and Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)and N.J. OMB Circular 15-08. Those standards, the Uniform Guidance and N.J. OMB Circular 15-08 require that we plan and perform the audit to obtain reasonable assurance about whether
-114-
Honorable President and K-2Members of the Board of Education Page 2 of 3
noncompliance with the types of compliance requirements referred to above that could have a directand material effect on a major federal and state program occurred. An audit includes examining, ona test basis, evidence about the Borough of Haledon Board of Education’s compliance with thoserequirements and performing such other procedures as we considered necessary in thecircumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each majorfederal and state program. However, our audit does not provide a legal determination of theBorough of Haledon Board of Education’s compliance.
Opinion on Each Major Federal and State Program
In our opinion, the Borough of Haledon Board of Education complied, in all material respects, withthe types of compliance requirements referred to above that could have a direct and material effecton each of its major federal and state programs for the year ended June 30, 2018.
Report on Internal Control Over Compliance
Management of the Borough of Haledon Board of Education is responsible for establishing andmaintaining effective internal control over compliance with the types of compliance requirementsreferred to above. In planning and performing our audit of compliance, we considered the Boroughof Haledon Board of Education’s internal control over compliance with the type of requirements thatcould have a direct and material effect on each major federal and state program to determine theauditing procedures that are appropriate in the circumstances for the purpose of expressing anopinion on compliance for each major federal and state program and to test and report on internalcontrol over compliance in accordance with the Uniform Guidance and N.J. OMB Circular 15-08,but not for the purpose of expressing an opinion on the effectiveness of internal control overcompliance. Accordingly, we do not express an opinion on the effectiveness of Borough of HaledonBoard of Education’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a controlover compliance does not allow management or employees, in the normal course of performing theirassigned functions, to prevent, or detect and correct, noncompliance with a type of compliancerequirement of a federal and state program on a timely basis. A material weakness in internalcontrol over compliance is a deficiency, or combination of deficiencies, in internal control overcompliance, such that there is a reasonable possibility that material noncompliance with a type ofcompliance requirement of a federal and state program will not be prevented, or detected andcorrected, on a timely basis. A significant deficiency in internal control over compliance is adeficiency, or a combination of deficiencies, in internal control over compliance with a type ofcompliance requirement of a federal and state program that is less severe than a material weaknessin internal control over compliance, yet important enough to merit attention by those charged withgovernance.
-115-
Honorable President and K-2Members of the Board of Education Page 3 of 3
Our consideration of internal control over compliance was for the limited purpose described in thefirst paragraph of this section and was not designed to identify all deficiencies in internal controlover compliance that might be material weaknesses or significant deficiencies. We did not identifyany deficiencies 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 requirementsof the Uniform Guidance and N.J. OMB Circular 15-08. Accordingly, this report is not suitable forany other purpose.
James Cerullo, C.P.A.Licensed Public School AccountantNo. 881
FERRAIOLI, WIELKOTZ, CERULLO & CUVA, P.A.Certified Public AccountantsPompton Lakes, New Jersey
January 22, 2019
Ferraioli, Wielkotz, Cerullo & Cuva,P.A.
James Cerullo
-116-
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07
/01
/17
-06
/30
/18
60
1,7
48
.00
32
4,8
56
.00
(57
5,0
22
.00
)(2
50
,16
6.0
0)
*5
75
,02
2.0
0
Tit
le I
- I
mp
rovin
g B
asic
Pro
gra
ms
84
.01
0S
01
0A
16
00
30
NC
LB
19
20
-17
07
/01
/16
-06
/30
/17
62
6,0
98
.00
(35
7,8
40
.00
)3
57
,84
0.0
0*
(35
7,8
40
.00
)6
82
,69
6.0
0(5
75
,02
2.0
0)
(25
0,1
66
.00
)*
57
5,0
22
.00
*
Tit
le I
I-A
- T
each
er &
Pri
nci
pal
Tra
inin
g/R
ecru
itin
g8
4.3
67
AS
36
7A
17
00
29
ES
SA
19
20
-18
07
/01
/17
-06
/30
/18
74
,72
6.0
04
3,5
72
.00
(57
,72
4.0
0)
(14
,15
2.0
0)
*5
7,7
24
.00
Tit
le I
I-A
- T
each
er &
Pri
nci
pal
Tra
inin
g/R
ecru
itin
g8
4.3
67
AS
36
7A
16
00
29
NC
LB
19
20
-17
07
/01
/16
-06
/30
/17
48
,86
9.0
0(2
2,4
32
.00
)2
2,4
32
.00
*
(22
,43
2.0
0)
66
,00
4.0
0(5
7,7
24
.00
)(1
4,1
52
.00
)*
57
,72
4.0
0
*
Tit
le I
II -
Par
t A
Engli
sh L
angu
age
Enhan
cem
ents
84
.36
5S
36
5A
17
00
30
ES
SA
19
20
-18
07
/01
/17
-06
/30
/18
42
,66
8.0
09
,33
8.0
0(1
3,9
13
.00
)(4
,57
5.0
0)
*1
3,9
13
.00
Tit
le I
II -
Par
t A
Engli
sh L
angu
age
Enhan
cem
ents
84
.36
5S
36
5A
16
00
30
NC
LB
19
20
-17
07
/01
/16
-06
/30
/17
50
,62
3.0
0(1
0,1
76
.00
)1
0,1
76
.00
*
(10
,17
6.0
0)
19
,51
4.0
0(1
3,9
13
.00
)(4
,57
5.0
0)
*1
3,9
13
.00
Tit
le I
V -
Stu
den
t S
up
po
rt a
nd
Aca
dem
ic E
nri
ch.
84
.42
4S
42
4A
17
00
31
ES
SA
19
20
-18
07
/01
/17
-06
/30
/18
10
,00
0.0
03
,70
3.0
0(4
,39
2.0
0)
(68
9.0
0)
*4
,39
2.0
0
3,7
03
.00
(4,3
92
.00
)(6
89
.00
)4
,39
2.0
0
*
I.D
.E.A
. P
art
B -
Bas
ic R
egu
lar
84
.02
7H
02
7A
17
01
00
IDE
A1
92
0-1
80
7/0
1/1
7-0
6/3
0/1
82
97
,16
5.0
01
68
,54
4.0
0(2
66
,27
5.0
0)
(97
,73
1.0
0)
*2
66
,27
5.0
0
I.D
.E.A
. P
art
B -
Bas
ic R
egu
lar
84
.02
7H
02
7A
16
01
00
IDE
A1
92
0-1
70
7/0
1/1
6-0
6/3
0/1
72
73
,38
2.0
0(6
3,7
56
.00
)6
3,7
56
.00
*
I.D
.E.A
. P
art
B -
Pre
scho
ol
84
.17
3H
17
3A
17
01
14
IDE
A1
92
0-1
80
7/0
1/1
7-0
6/3
0/1
81
3,3
73
.00
5,7
89
.00
(8,4
05
.00
)(2
,61
6.0
0)
*8
,40
5.0
0
I.D
.E.A
. P
art
B -
Pre
scho
ol
84
.17
3H
17
3A
16
01
14
IDE
A1
92
0-1
70
7/0
1/1
6-0
6/3
0/1
71
5,0
06
.00
(7,1
37
.00
)7
,13
7.0
0*
(70
,89
3.0
0)
24
5,2
26
.00
(27
4,6
80
.00
)(1
00
,34
7.0
0)
*2
74
,68
0.0
0
*
Tem
po
rary
Em
ergen
cy I
mp
act
Aid
84
.93
8C
S9
38
C1
80
05
07
/01
/17
-06
/30
/18
12
,75
0.0
0(1
2,7
50
.00
)(1
2,7
50
.00
)1
2,7
50
.00
(12
,75
0.0
0)
(12
,75
0.0
0)
12
,75
0.0
0
T
ota
l S
pec
ial
Rev
enu
e F
und
(46
1,3
41
.00
)1
,01
7,1
43
.00
(93
8,4
81
.00
)(3
82
,67
9.0
0)
*9
38
,48
1.0
0
*
U.S
. D
ep
art
men
t o
f A
gri
cu
ltu
re P
ass
ed-T
hro
ug
h S
tate
Dep
art
men
t o
f E
du
cati
on
:*
E
nte
rp
rise
Fu
nd
:*
No
n-C
ash
Ass
ista
nce
*
Fo
od
Dis
trib
uti
on P
rogra
m1
0.5
55
18
1N
J30
4N
10
99
07
/01
/17
-06
/30
/18
44
,01
9.0
91
,27
8.4
14
4,0
19
.09
(44
,17
0.4
8)
1,1
27
.02
*4
4,1
70
.48
Fo
od
Dis
trib
uti
on P
rogra
m1
0.5
55
17
1N
J30
4N
10
99
07
/01
/16
-06
/30
/17
39
,11
9.1
41
,27
8.4
1(1
,27
8.4
1)
*
Ca
sh A
ssis
tan
ce*
Sch
oo
l B
reak
fast
Pro
gra
m1
0.5
53
18
1N
J30
4N
10
99
07
/01
/17
-06
/30
/18
10
3,1
76
.77
96
,41
7.5
6(1
03
,17
6.7
7)
(6,7
59
.21
)*
10
3,1
76
.77
Sch
oo
l B
reak
fast
Pro
gra
m1
0.5
53
17
1N
J30
4N
10
99
07
/01
/16
-06
/30
/17
12
0,4
75
.10
(7,2
41
.08
)7
,24
1.0
8*
Nat
ional
Sch
oo
l L
unch
Pro
gra
m1
0.5
55
18
1N
J30
4N
10
99
07
/01
/17
-06
/30
/18
37
1,8
31
.96
34
2,6
82
.63
(37
1,8
31
.96
)(2
9,1
49
.33
)*
37
1,8
31
.96
Nat
ional
Sch
oo
l L
unch
Pro
gra
m1
0.5
55
17
1N
J30
4N
10
99
07
/01
/16
-06
/30
/17
34
8,9
92
.20
(30
,48
7.0
4)
30
,48
7.0
4*
(36
,44
9.7
1)
52
0,8
47
.40
(51
9,1
79
.21
)(3
5,9
08
.54
)1
,12
7.0
2*
51
9,1
79
.21
*
Aft
er S
cho
ol
Snac
k P
rogra
m1
0.5
58
18
1N
J30
4N
10
99
07
/01
/17
-06
/30
/18
30
,42
2.4
82
8,0
28
.88
(30
,42
2.4
8)
(2,3
93
.60
)*
30
,42
2.4
8
Aft
er S
cho
ol
Snac
k P
rogra
m1
0.5
58
17
1N
J30
4N
10
99
07
/01
/16
-06
/30
/17
29
,39
3.9
4(4
,57
9.5
0)
2,5
16
.36
2,0
63
.14
*
(4,5
79
.50
)3
0,5
45
.24
(30
,42
2.4
8)
2,0
63
.14
(2,3
93
.60
)*
30
,42
2.4
8
*
T
ota
l E
nte
rpri
se F
und
(41
,02
9.2
1)
55
1,3
92
.64
(54
9,6
01
.69
)2
,06
3.1
4(3
8,3
02
.14
)1
,12
7.0
2*
54
9,6
01
.69
*
TO
TA
L F
ED
ER
AL
FIN
AN
CIA
L A
WA
RD
S(5
02
,37
0.2
1)
1,5
90
,68
4.9
2(1
,51
0,2
31
.97
)2
,06
3.1
4(4
20
,98
1.1
4)
1,1
27
.02
*1
,51
0,2
31
.97
See
acc
om
pan
ying n
ote
s to
sch
edu
les
of
exp
end
itu
res
of
fed
eral
aw
ard
s an
d s
tate
fin
anci
al a
ssis
tance
.
K-3
-117-
Sch
edule
B
BO
RO
UG
H O
F H
AL
ED
ON
SC
HO
OL
DIS
TR
ICT
Sch
edule
of
Expen
dit
ure
s o
f S
tate
Fin
anci
al A
ssis
tance
for
the
Fis
cal Y
ear
Ended
June
30,
2018
Bal
ance
at
J
une
30,
2017
Bal
ance
at
June
30,
2018
ME
MO
Def
erre
dC
arry
over
/C
um
ula
tive
Gra
nt
or
Sta
teA
war
dR
even
ue/
Wal
ko
ver
Cas
hB
udget
ary
Acc
ounts
Def
erre
dB
udget
ary
To
tal
Sta
te G
ranto
r/P
rogra
m T
itle
Pro
ject
Num
ber
Gra
nt
Per
iod
Am
ount
(Acc
ts.
Rec
eivab
le)
Am
ount
Rec
eived
Expen
dit
ure
sR
ecei
vab
leR
even
ue
Rec
eivab
leE
xpen
dit
ure
s
Sta
te D
epart
men
t of
Ed
uca
tion
:
G
ener
al
Fu
nd
:
E
qual
izat
ion A
id18-4
95-0
34-5
120-0
78
07/0
1/1
7-0
6/3
0/1
86,3
13,5
56.0
05,6
93,9
02.0
0(6
,313,5
56.0
0)
*619,6
54.0
06,3
13,5
56.0
0
S
pec
ial E
duca
tio
n C
ateg
ori
cal A
id18-4
95-0
34-5
120-0
89
07/0
1/1
7-0
6/3
0/1
8600,8
86.0
0541,9
11.0
0(6
00,8
86.0
0)
*58,9
75.0
0600,8
86.0
0
S
ecuri
ty A
id18-4
95-0
34-5
120-0
84
07/0
1/1
7-0
6/3
0/1
8114,2
10.0
0103,0
01.0
0(1
14,2
10.0
0)
*11,2
09.0
0114,2
10.0
0
P
er P
upil G
row
th A
id18-4
95-0
34-5
120-0
97
07/0
1/1
7-0
6/3
0/1
89,8
30.0
08,8
65.0
0(9
,830.0
0)
*965.0
09,8
30.0
0
P
AR
CC
Rea
din
ess
18-4
95-0
34-5
120-0
98
07/0
1/1
7-0
6/3
0/1
89,8
30.0
08,8
65.0
0(9
,830.0
0)
*965.0
09,8
30.0
0
P
rofe
ssio
nal
Lea
rnin
g C
om
munit
y A
id18-4
95-0
34-5
120-1
01
07/0
1/1
7-0
6/3
0/1
810,2
30.0
09,2
26.0
0(1
0,2
30.0
0)
*1,0
04.0
010,2
30.0
0
U
nder
Adeq
uac
y A
id18-4
95-0
34-5
120-0
96
07/0
1/1
7-0
6/3
0/1
8135,9
63.0
0122,6
19.0
0(1
35,9
63.0
0)
*13,3
44.0
0135,9
63.0
0
Tota
l S
tate
Aid
Pu
bli
c6,4
88,3
89.0
0(7
,194,5
05.0
0)
*706,1
16.0
07,1
94,5
05.0
0*
E
xtr
aord
inar
y A
id18-1
00-0
34-5
120-0
44
07/0
1/1
7-0
6/3
0/1
828,8
26.0
0(2
8,8
26.0
0)
(28,8
26.0
0)
*28,8
26.0
0
E
xtr
aord
inar
y A
id17-1
00-0
34-5
120-0
44
07/0
1/1
6-0
6/3
0/1
731,5
89.0
0(3
1,5
89.0
0)
31,5
89.0
0*
T
ransp
ort
atio
n A
id18-4
95-0
34-5
120-0
14
07/0
1/1
7-0
6/3
0/1
810,6
69.0
09,6
22.0
0(1
0,6
69.0
0)
*1,0
47.0
010,6
69.0
0
R
eim
burs
emen
t o
f N
onpu
blic
Tra
nsp
ort
atio
n18-4
95-0
34-5
120-0
14
07/0
1/1
7-0
6/3
0/1
813,3
40.0
0(1
3,3
40.0
0)
(13,3
40.0
0)
*13,3
40.0
0
R
eim
burs
emen
t o
f N
onpu
blic
Tra
nsp
ort
atio
n17-4
95-0
34-5
120-0
14
07/0
1/1
6-0
6/3
0/1
78,5
26.0
0(8
,526.0
0)
8,5
26.0
0*
L
ead T
esti
ng
18-4
95-0
34-5
120-1
04
07/0
1/1
7-0
6/3
0/1
81,4
11.7
51,4
11.7
5(1
,411.7
5)
1,4
11.7
5
R
eim
burs
ed T
PA
F -
So
cial
Sec
uri
ty18-4
95-0
34-5
094-0
03
07/0
1/1
7-0
6/3
0/1
8559,4
42.8
3532,5
07.5
3(5
59,4
42.8
3)
(26,9
35.3
0)
*559,4
42.8
3
R
eim
burs
ed T
PA
F -
So
cial
Sec
uri
ty17-4
95-0
34-5
094-0
03
07/0
1/1
6-0
6/3
0/1
7538,5
78.4
3(2
6,9
37.4
2)
26,9
37.4
2*
O
n-B
ehal
f T
PA
F -
Po
st R
etir
emen
t M
edic
al18-4
95-0
34-5
094-0
01
07/0
1/1
7-0
6/3
0/1
8704,9
86.0
0704,9
86.0
0(7
04,9
86.0
0)
*704,9
86.0
0
O
n-B
ehal
f T
each
ers'
Pen
sio
n a
nd A
nnuit
y18-4
95-0
34-5
094-0
02
07/0
1/1
7-0
6/3
0/1
81,0
65,6
54.0
01,0
65,6
54.0
0(1
,065,6
54.0
0)
*1,0
65,6
54.0
0
O
n-B
ehal
f T
PA
F -
LT
DI
18-4
95-0
34-5
094-0
04
07/0
1/1
7-0
6/3
0/1
81,8
48.0
01,8
48.0
0(1
,848.0
0)
*1,8
48.0
0
O
n-B
ehal
f T
PA
F -
No
n-c
ontr
ibuto
ry I
nsu
rance
18-4
95-0
34-5
094-0
04
07/0
1/1
7-0
6/3
0/1
825,8
61.0
025,8
61.0
0(2
5,8
61.0
0)
*25,8
61.0
0
To
tal G
ener
al F
und
(67,0
52.4
2)
8,8
97,3
31.7
0(9
,606,5
43.5
8)
(69,1
01.3
0)
*707,1
63.0
09,6
06,5
43.5
8*
S
pec
ial
Rev
enu
e F
un
d:
*
P
resc
ho
ol E
duca
tio
n A
id18-4
95-0
34-5
120-0
86
07/0
1/1
6-0
6/3
0/1
7656,9
73.0
032,6
72.5
1592,4
93.0
0(5
89,3
26.3
7)
35,8
39.1
4*
64,4
80.0
0589,3
26.3
7
P
resc
ho
ol E
duca
tio
n A
id17-4
95-0
34-5
120-0
86
07/0
1/1
6-0
6/3
0/1
7428,2
74.0
0(9
,765.4
9)
(32,6
72.5
1)
42,4
38.0
0*
To
tal S
pec
ial R
even
ue
Fund
(9,7
65.4
9)
634,9
31.0
0(5
89,3
26.3
7)
35,8
39.1
4*
64,4
80.0
0589,3
26.3
7*
Sta
te D
epart
men
t of
Agri
cult
ure
:*
E
nte
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K-4
-118-
Borough of Haledon School District K-5Notes to the Schedules of Expenditures of Federal Awards and Page 1 of 3 State Financial Assistance June 30, 2018
NOTE 1. GENERAL
The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance include theactivity of all federal and state award programs of the Board of Education, Borough of Haledon SchoolDistrict. The Board of Education is defined in Note 1 to the Board's basic financial statements. All federaland state awards received directly from federal and state agencies, as well as federal and state awards passedthrough other government agencies is included on the Schedules of Expenditures of Federal Awards and StateFinancial Assistance.
NOTE 2. BASIS OF ACCOUNTING
The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance are presentedon the budgetary basis of accounting with the exception of programs recorded in the food service fund, whichare presented using the accrual basis of accounting. These bases of accounting are described in Notes 1(D)and 1(E) to the Board's basic financial statements. The information in these schedules is presented inaccordance with the requirements of 2 CFR 200-Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ inamounts presented in or used in the preparation of the basic financial statements.
NOTE 3. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
The basic financial statements present the general fund and the special revenue fund on a GAAP basis. Budgetary comparison statements or schedules (RSI) are presented for the general fund and special revenuefund to demonstrate finance-related legal compliance in which certain revenue is permitted by law or grantagreement to be recognized in the audit year, whereas for GAAP reporting, revenue is not recognized untilthe subsequent year or when expenditures have been made.
The general fund is presented in the accompanying schedules on the modified accrual basis with the exceptionof the revenue recognition of the last state aid payment in the current budget year, which is mandated pursuantto N.J.S.A. 18A:22-44.2. For GAAP purposes, that payment is not recognized until the subsequent budgetyear due to the state deferral and recording of the last state aid payment in the subsequent year. The specialrevenue fund is presented in the accompanying schedules on the grant accounting budgetary basis whichrecognizes encumbrances as expenditures and also recognizes the related revenues, whereas the GAAP basisdoes not. The special revenue fund also recognizes the last state aid payment in the current budget year,consistent with N.J.S.A. 18A:22-44.2.
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Borough of Haledon School District K-5Notes to the Schedules of Expenditures of Federal Awards and Page 2 of 3 State Financial AssistanceJune 30, 2018
NOTE 3. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS, (continued)
The net adjustment to reconcile from the budgetary basis to the GAAP basis is $(26,454.00) for areconciliation of the budgetary basis to the modified accrual basis of accounting for the general and specialrevenue funds. Awards and financial assistance revenues are reported in the Board’s financial statements ona GAAP basis as follows:
Federal State Total
General Fund $22,149.28 $9,580,089.58 $9,602,238.86Special Revenue Fund 925,731.00 589,326.37 1,515,057.37Food Service Fund 549,601.69 7,935.52 557,537.21Total Awards and Financial $1,497,481.97 $10,177,351.47 $11,674,833.44
NOTE 4. RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS
Amounts reported in the accompanying schedules agree with the amounts reported in the related federal andstate financial reports.
NOTE 5. OTHER
Revenues and expenditures reported under the Food Distribution Program represent current year valuereceived and current year distributions, respectively. The amount reported as TPAF Pension Contributionsrepresents the amount paid by the state on behalf of the District for the year ended June 30, 2018. The amountreported as TPAF Social Security Contributions represents the amount reimbursed by the state for theemployer's share of social security contributions for TPAF members for the year ended June 30, 2018.
NOTE 6. ON-BEHALF PROGRAMS NOT SUBJECT TO STATE SINGLE AUDIT
On-behalf State Programs for TPAF Pension and Post-Retirement Medical Benefits Contributions are notsubject to a State single audit and, therefore, are excluded from major program determination. The Scheduleof State Financial Assistance provides a reconciliation of State financial assistance reported in the District’sfinancial statements and the amounts subject to State single audit and major program determination.
NOTE 7. INDIRECT COST RATE
The Borough of Haledon School District has elected not to use the 10-percent de minimis indirect cost rateas allowed under the Uniform Guidance.
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Borough of Haledon School District K-5Notes to the Schedules of Expenditures of Federal Awards and Page 3 of 3 State Financial AssistanceJune 30, 2018
NOTE 8. SCHOOLWIDE PROGRAM FUNDS
Schoolwide programs are not separate federal programs as defined in Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards (Uniform Grant Guidance); amounts used inschoolwide programs are included in the total expenditures of the program contributing the funds in theSchedule of Expenditures of Federal Awards. The following funds by program are included in schoolwideprograms in the school district:
Program Total
Title I, Part A: Grants to Local Educational Agencies $575,022.00Title II, Part A: Improving Teacher Quality State Grants 57,724.00Title III: English Language Acquisition State Grants 13,913.00
Total $646,659.00
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K-6Page 1 of 2
BOROUGH OF HALEDON SCHOOL DISTRICTSCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Section I - Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued: unmodified
Internal control over financial reporting:
1. Material weakness(es) identified? yes X no
2. Significant deficiencies identified that arenot considered to be material weaknesses? yes X none reported
Noncompliance material to basic financialstatements noted? yes X no
Federal Awards
Internal Control over major programs:
1. Material weakness(es) identified? yes X no
2. Significant deficiencies identified that are not considered to be material weaknesses? yes X none reported
Type of auditor’s report issued on compliance for major programs: unmodified
Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200 section .516(a) of theUniform Guidance? yes X no
Identification of major programs:
CFDA Number(s) FAIN Number(s) Name of Federal Program or Cluster
84.010 S010A170030 Title I
Dollar threshold used to distinguish between type A and type B programs: $750,000
Auditee qualified as low-risk auditee? X yes no
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K-6Page 2 of 2
BOROUGH OF HALEDON SCHOOL DISTRICTSCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018(continued)
State Awards
Dollar threshold used to distinguish between type A and type B programs: $ 750,000
Auditee qualified as low-risk auditee? X yes no
Type of auditor’s report issued on compliance for major programs: unmodified
Internal Control over major programs:
1. Material weakness(es) identified? yes X no
2. Significant deficiencies identified that are not considered to be material weaknesses? yes X none reported
Any audit findings disclosed that are required to be reported in accordance with NJ OMB Circular Letter 15-08? yes X no
Identification of major programs:
State Grant/Project Number(s) Name of State Program
Cluster - State Aid – Public: 18-495-034-5120-078 Equalization Aid 18-495-034-5120-089 Special Education Aid 18-495-034-5120-084 Security Aid 18-495-034-5120-096 Under Adequacy Aid 18-495-034-5120-097 Per Pupil Growth Aid 18-495-034-5120-098 PARCC Readiness 18-495-034-5120-101 Professional Learning Community Aid
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K-7
BOROUGH OF HALEDON SCHOOL DISTRICTSCHEDULE OF FINANCIAL, FEDERAL AND STATE FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Section II - Financial Statement Findings
None
Section III - Federal Awards and State Financial Assistance Findings and Questioned Costs
None
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K-8
BOROUGH OF HALEDON SCHOOL DISTRICTSUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Status of Prior Year Findings
There were no prior year findings.
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