WESTERN PLACER UNIFIED SCHOOL DISTRICTLincoln, California
FINANCIAL STATEMENTSJune 30, 2013
WESTERN PLACER UNIFIED SCHOOL DISTRICT
FINANCIAL STATEMENTSWITH SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2013
TABLE OF CONTENTS
Page
Independent Auditor's Report 1
Management's Discussion and Analysis 4
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position 14
Statement of Activities 15
Fund Financial Statements:
Balance Sheet - Governmental Funds 16
Reconciliation of the Governmental Funds Balance Sheet - to theStatement of Net Position 17
Statement of Revenues, Expenditures and Change in FundBalances - Governmental Funds 18
Reconciliation of the Statement of Revenues, Expenditures andChange in Fund Balances - Governmental Funds - to theStatement of Activities 19
Statement of Fiduciary Net Position - Trust and Agency Funds 20
Statement of Change in Fiduciary Net Position - Fiduciary Funds 21
Notes to Basic Financial Statements 22
Required Supplementary Information:
General Fund Budgetary Comparison Schedule 50
Schedule of Other Postemployment Benefits (OPEB) Funding Progress 51
Notes to Required Supplementary Information 52
Supplementary Information:
Combining Balance Sheet - All Non-Major Funds 53
WESTERN PLACER UNIFIED SCHOOL DISTRICT
FINANCIAL STATEMENTSWITH SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2013
TABLE OF CONTENTS(Continued)
Page
Supplementary Information: (Continued)
Combining Statement of Revenues, Expenditures and Change inFund Balances - All Non-Major Funds 54
Combining Statement of Changes in Assets and Liabilities - AllAgency Funds 55
Organization 56
Schedule of Average Daily Attendance 57
Schedule of Instructional Time 58
Schedule of Expenditure of Federal Awards 59
Reconciliation of Unaudited Actual Financial Report with AuditedFinancial Statements 60
Schedule of Financial Trends and Analysis - Unaudited 61
Schedule of Charter Schools 62
Notes to Supplementary Information 63
Independent Auditor's Report on Compliance with State Laws andRegulations 65
Independent Auditor's Report on Internal Control over FinancialReporting and on Compliance and Other Matters Based on anAudit of Financial Statements Performed in Accordance withGovernment Auditing Standards 68
Independent Auditor's Report on Compliance for Each MajorFederal Program and Report on Internal Control Over Compliance 70
Findings and Recommendations:
Schedule of Audit Findings and Questioned Costs 72
Status of Prior Year Findings and Recommendations 76
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Western Placer Unified School DistrictManagement’s Discussion and AnalysisFor the Fiscal Year Ended June 30, 2013
The management’s discussion and analysis of Western Placer Unified School District’s (the District)financial performance provides an overview of the District’s financial activities for the fiscal yearended June 30, 2013. Management has prepared the financial statements and the related footnotedisclosures along with this discussion and analysis. The intent of this discussion and analysis is tolook at the District’s financial performance as a whole.
To provide a complete understanding of the District’s financial performance, please read it inconjunction with the Independent Auditor’s Report on pages 1 and 2, notes to the financialstatements on pages 21 48, and the District’s financial statements, which begin on page 13.
FINANCIAL HIGHLIGHTS
As of June 30, 2013, we are currently being funded $921 per student less than we received in2007 08 and $1,493 below the statutory funding requirement. This translates into a loss for ourDistrict of $9.4 million in 2012 13. These losses in funding have a very real impact on schooldistrict priorities and policies.
Western Placer was fortunate to have identified and received $17 million in prior year funding asa result of its basic aid status. These resources had allowed the Board of Trustees to take abalanced and thoughtful approach to our state required budget cuts by mitigating deficitspending utilizing existing reserves.
Western Placer has taken a balanced approach to manage the state imposed budget cuts of thepast several years. In the past five years the District has made ongoing and one time budgetreductions totaling $14.8 million and used $15.1 million in fund balance reserves to address deficitspending. The primary interest of the Board of Trustees and the various District constituencieshas been to maintain jobs and maintain a positive certification. The Board has directed reservesof 5 percent unrestricted reserve for economic uncertainty. While the District will not meet notmeet this 5 percent target in 2013 14 nor the following two years as deficit spending continues tooccur, the District is meeting the minimum 3 percent reserve for economic uncertainties in the2013 14 budget year. It will be important for the District to focus on restoring the 5 percenteconomic uncertainty reserve as economic conditions allow over the next several years. District enrollment increased 43 students, or .7%, and increased by 21 ADA, or .3%, over the prior
year. The District is projecting increases of 28 students and 42 ADA (95.7% rate) in 2013 14 and 66students and 50 ADA (95.5% rate) in 2014 15. The District has increased focus on studentattendance with the work of the District Attendance Work Group (DAWG) and the attendancerate is projected to remain stable at 95.5% in the next two years.
The housing crisis has had a significant impact on District demographics, and it is unlikely thatsignificant growth will be seen until the housing market begins to fully recover. The first signsof recovery are showing, as developers pull permits for future housing within Districtboundaries.
OVERVIEW OF THE FINANCIAL STATEMENTS
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The financial statements are organized to provide the reader first with a look at the financial statusof the entire Western Placer Unified School District. The statements then proceed to provide anincreasingly detailed look at specific financial activities. This annual report consists of three parts:
Management’s Discussion and Analysis – this section which provides an overall review of thefinancial activity for the past fiscal year as well as a look at the future years.
Basic Financial Statements – a look at Western Placer Unified School District’s financialstatement as a whole for the entire operating entity. The financial statements also includenotes that explain some of the information in the statements and provide more detaileddata.
Required Supplementary Information – detailed information for specific financial activitiesincluding required supplementary information that further explains and supports thefinancial statements with a comparison of the District’s budget for the year.
Reporting on the District as a WholeStatement of Net Position and Statement of Activities
These two statements provide information about the District as a whole using the accrual accountingmethods similar to those used by private sector companies. They help answer the question, “Howdid we do financially during 2012 13?”
The change in net position is reported in the Statement of Net Position. This change in net position isimportant because it tells the reader whether the financial position of the District has improved ordiminished. The causes of this change may be the result of many factors, some of them financial andsome not. Over time, the increases or decreases in the District’s net position, as reported in theStatement of Activities, are one indicator of whether its financial health is improving ordeteriorating.
All current year revenues and expenses are accounted for in the Statement of Activities regardless ofwhen cash is received or paid. The relationship between revenues and expenses indicates theDistrict’s operating results. It is important to remember, the District’s goal is to provide services toits students, not to generate profits as is necessary in commercial entities. One must consider manyother non financial factors, such as the quality of education provided and the safety of the schools inorder to assess the overall health of the District.
In the District wide financial statements, the District’s activities are divided into two categories:
Governmental Activities – All of the District’s services are reported here, includingregular and special education, general administration, transportation, food services,plant services, facilities acquisition and construction, interest, and long term debt.State support from revenue limit funding and categorical apportionments financemost of these activities.
Business type Activities – The District does not currently have any business typeactivities.
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Reporting the District’s Most Significant FundsFund Financial Statements
The fund financial statements provide more detailed information about the District’s most significantfunds. Funds are accounting devices the District uses to keep track of specific sources of fundingand spending on particular programs:
Some funds are required to be established by State law, bond covenants, or throughgrant or program restrictions.
The District establishes other funds to control and manage money for specificpurposes (like repaying its long term debts) or to show that it is properly usingcertain revenues (like federal grants).
A District may have three kinds of funds:
Governmental Funds – Most of the District’s activities are reported in governmentalfunds. The major governmental funds of the District are the General Fund, and theMello Roos Fund. Governmental funds focus on how money flows into and out ofthe funds and the balances that remain at the end of the year. They are reportedusing an accounting method called modified accrual accounting, which measurescash and all other financial assets that can readily be converted to cash. Thegovernmental fund statements provide a detailed short term view of the District’soperations and services that help determine whether there are more or fewerfinancial resources that can be spent in the near future to finance the District’sprograms.
Proprietary Funds – Services for which the District charges a fee are generallyreported in proprietary funds. Proprietary funds use the full accrual basis ofaccounting, the same as the District wide statements. The District does not haveprograms classified in this category.
Fiduciary Funds – The District is the trustee, or fiduciary, for assets that belong toothers, such as the student activities funds. The District is responsible for ensuringthat the assets that are reported in these funds are used only for their intendedpurposes and by those to whom the assets belong. The District’s fiduciary activitiesare reported in a separate statement of fiduciary net assets and a statement ofchanges in fiduciary net assets. We exclude these activities from the District widefinancial statements because the District cannot use these assets to finance itsoperations.
FINANCIAL ANALYSIS OF THE GOVERNMENT WIDE STATEMENTSThe District as a Whole
Statement of Net PositionThe District’s total assets decreased by $11,645,835 to $210,391,770 during the 2012 13 fiscal year.Cash and cash equivalent accounts increased $1,288,686 from FY 2011 12. This increase to the cash
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accounts was primarily due to the transfer if the Deferred Maintenance fund balance reserves at yearend.
Total liabilities decreased by nearly $1 million, primarily due to a decrease in long term liabilities dueafter one year. Long term liabilities decreased $1.1 million primarily due to principal debt servicepayments on long term debt and payments on post employments benefits/PARS.
The District’s net position for FY 2012 13 was $44,977,502, a decrease of $10,664,709 from FY 2011 12.Of this balance, $18,310,494 was restricted while $3,593,896 was unrestricted. Net investment incapital assets, accounted for $23,073,112 of the total net position.The Statement of Net Position is included in the table below and provides the detail information for2011 12 and 2012 13 along with the variances between the years.
2011-12 2012-13 $ Difference % DifferenceAssets:Cash and equivalents 27,669,086$ 28,957,772$ 1,288,686$ 4.66%Receivables 7,545,813 4,068,454 (3,477,359) -46.08%Prepaid expenditures 6,678,015 391,440 (6,286,575) -94.14%Stores inventory 10,578 19,488 8,910 100.00%Capital assets (net of accumulated depreciation) 180,134,113 176,954,616 (3,179,497) -1.77%Total assets 222,037,605 210,391,770 (11,645,835) -5.24%
Liabilities:Accounts payable and other current liabilities 6,208,602 6,301,629 93,027 1.50%Deferred revenue 45,785 94,363 48,578 106.10%Long-term liabilities Due within one year 2,156,540 2,228,498 71,958 3.34%Due after one year 157,984,467 156,789,778 (1,194,689) -0.76%Total liabilities 166,395,394 165,414,268 (981,126) -0.59%
Net PositionInvested in capital assets, net of related debt 25,353,280 23,073,112 (2,280,168) -8.99%Restricted 21,024,392 18,310,494 (2,713,898) -12.91%Unrestricted 9,264,539 3,593,896 (5,670,643) -61.21%Net Investment in Capital Assets 55,642,211$ 44,977,502$ (10,664,709)$ -19.17%
Table 1Net Position
June 30, 2012 and 2013
Governmental Activities
Statement of ActivitiesThe District’s total expenses were $61,652,003; $4,637,950 less in 2012 13 than 2011 12. Programrevenues were $9,139,951; $591,717 lower in 2012 13 than 2011 12. General revenues were $48,121,606;$182,282 higher than 2011 12.
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2011-12 2012-13 $ Difference % DifferenceGeneral RevenuesTaxes Levied for General Purposes 33,136,065$ 32,396,317$ (739,748)$ -2.23%Taxes Levied for Debt Service 1,848,032 1,821,900 (26,132) -1.41%Taxes Levied for Specific Purposes 5,318,438 5,364,587 46,149 0.87%Unrestricted Federal and State Aid 5,101,182 5,453,088 351,906 6.90%Interest and Investment Earnings 484,766 310,394 (174,372) -35.97%Interagency Revenues 182,633 120,141 (62,492) -34.22%Miscellaneous 1,868,208 2,655,179 786,971 42.12%Total General Revenues 47,939,324 48,121,606 182,282 0.38%
Program RevenuesCharges for Services 685,152 707,163 22,011 3.21%Operating Grants & Contributions 8,985,058 8,388,425 (596,633) -6.64%Capital Grants & Contributions 61,458 44,363 (17,095) 0.00%Total Program Revenues 9,731,668 9,139,951 (591,717) -6.08%
Total Revenues 57,670,992 57,261,557 (409,435) -0.71%
ExpensesInstruction 35,046,880 33,523,212 (1,523,668) -4.35%Supervision of Instruction 1,013,542 1,204,021 190,479 18.79%Instructional Library, Media & Technology 523,900 448,510 (75,390) -14.39%School Administration 3,443,239 3,310,593 (132,646) -3.85%Pupil Support Services 1,667,160 1,472,735 (194,425) -11.66%Home-to-School Transportation 1,507,077 1,454,009 (53,068) -3.52%Food Service 1,620,270 1,573,773 (46,497) -2.87%General Administration 5,577,323 3,252,439 (2,324,884) -41.68%Plant Services 4,383,977 4,372,505 (11,472) -0.26%Ancillary Services 888,920 951,070 62,150 6.99%Community Services 133,670 57,178 (76,492) -57.22%Enterprise activities - - - 0.00%Transfer Between Agencies 1,545,548 7,682,070 6,136,522 397.05%Interest on Debt and Fiscal Charges 8,938,447 2,349,888 (6,588,559) -73.71%
Total Expenses 66,289,953 61,652,003 (4,637,950) -7.00%
Change in Net Position (8,618,961) (4,390,446) 4,228,515 -49.06%
Net Position - Beginning 57,986,909 49,367,948 (8,618,961) -14.86%
Net Position - Ending 49,367,948$ 44,977,502$ (4,390,446)$ -8.89%
Governmental Activities
Table 2Net Position
June 30, 2012 and 2013
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The users of the District’s programs paid $707,163 of the cost. This revenue was generated throughcafeteria sales of $641,523 and other miscellaneous revenue of $65,640. The federal and stategovernments subsidized certain programs with grants and contributions of $8,388,425. Most of thegovernmental activities were paid with $39,582,804 in property taxes, $5,453,088 of unrestrictedstate aid based on the statewide education aid formula, and $310,394 of investment earnings. TheMiscellaneous Revenues of $2,655,179 is comprised of a number of items, including interest revenue,facilities use fees, developer fees, Mello Roos receipts and site co curricular revenues.
Sources of Western Placer USD’s Revenue for the 2012 13 Fiscal YearFigure 1
State Aid10.0%
Interest & Misc.0.9%
Grants & Contributions15.4%
Charges for Services1.3%
Property Taxes72.5%
As reported in the Statement of Activities, the cost of all of the District’s governmental activities thisyear was $61,652,003.
Instruction, instructional library, media & technology, and pupil services expenses made upapproximately 62% of total 2012 13 expenditures. This is a 2% increase from the 60% expended in FY2011 12. General administration accounted for approximately 5% of the expenditure budget, adecrease of 3% over the prior year, and interest on debt and fiscal charges expenditures represented4% of all outgo, a decrease of 9%. Plant maintenance and operations accounted for 7% of theexpenditure budget, the same as the prior year.
Figure 2, on the next page, charts the Districts expenditures for the 2012 13 school year.
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Western Placer USD’s Expenses for the Fiscal Year 2012 13Figure 2
Pupil Services7%
Plant Services7%Other Outgo
12%
Debt Service4%
General Administration
5%
All Others2%
Instructional & Inst. Related Services
63%
FINANCIAL ANALYSIS OF THE FUND STATEMENTS
The fund financial statements focus on individual parts of the District’s operations in more detailthan the government wide statements. The individual fund statements provide information oninflows and outflows and balances of spendable resources. The District’s Governmental Fundsreported a combined fund balance of $30.2 million, a decrease of $2.5 million from the previous fiscalyear’s combined ending balance of $32.7 million. The funds with greatest changes were the GeneralFund (decrease of $1.5 million due to deficit spending), Mello Roos Fund (decrease of $.9 million dueto debt service payments) and the Building Fund (decrease of $.4 million due to construction andmodernization projects).
General Fund Budgetary HighlightsOver the course of the year, the District revised the annual operating budget regularly. Significantbudget adjustments fell into the following categories:
Budget revisions acknowledging the inclusion of restricted ending balances, deferredrevenue, and carryover from the prior year.
Budget revisions to update revenues to actual enrollment information and to updateexpenditures for staffing adjustments related to actual enrollments.
Budget revisions to reflect salary settlements. Other budget revisions are routine in nature, including adjustments to categorical
revenues and expenditures based on final awards, and adjustments betweenexpenditure categories for school and department budgets.
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The final revised budget for the General Fund reflected a net decrease to the ending balance ofapproximately $5.4 million. Actual audited activity reflected a net decrease to the ending balance of$1.5 million. The difference between the final budget and the actual ending balance is due primarilyto revenues in excess of budget, State Aid prior year adjustments, deferred federal grant revenues,District and school site federal and state categorical unspent program fund carryovers and supplyand operating expenditure budgets not being spent. This is not uncommon, particularly incategorical programs that carry balances over from year to year.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital AssetsBy the end of the 2012 13 fiscal year, the District had invested $176.9 million in a broad range ofcapital assets, including school sites, school buildings, site improvements, vehicles, equipment, andwork in progress regarding the construction of new schools. This amount represents a decrease of$3.2 million from the previous fiscal year, which consists of additional capital outlay of $521k net ofdeletions and depreciation expense in the current fiscal year of $3.7 million.
2011 12 2012 13 $ Difference % DifferenceLand 38,662,548$ 38,662,548$ $ 0.00%Site Improvement 1,339,493 1,057,322 (282,171) 21.07%Buildings 127,636,432 124,567,179 (3,069,253) 2.40%Equipment& Vehicles 1,948,507 1,885,345 (63,162) 3.24%Work in Progress (WIP) 10,547,133 10,782,222 235,089 2.23%Total 180,134,113$ 176,954,616$ (3,179,497)$ 24.48%
Table 3Capital Assets
(net of depreciation)
The District did not begin or complete any major construction projects during 2012 13. Expendituresfor Twelve Bridges High School make up the majority of the June 30, 2013 WIP balance.
Long Term DebtAt June 30, 2013, the District had $159,018,276 in long term debt outstanding.
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2012 2012General Obligation Bonds 5,601,411$ 4,816,103$ Accreted Interest on G.O. Bonds 9,081,090 9,753,093 Special Tax Bond 13,100,000 12,720,000 Other Post Employment Benefits 618,507 843,390 PARS 1,535,230 1,151,422 Compensated Absences 174,815 136,900 Cerfiticates of Participation 129,990,000 129,575,000 Capital Leases 39,954 22,368
TOTAL 160,141,007$ 159,018,276$
Table 4Outstanding LiabilitiesJune 30, 2012 and 2013
PARS represents the five year payment of an early retirement incentive the District offered in 2010 11.Twenty two employees took the opportunity to retire early under this plan. PARS debt representsjust under 1% of the District’s long term liabilities at June 30, 2013. The General Obligation Bonds arefinanced by the local taxpayers and represent 3.0% of the District’s long term debt. Certificates ofParticipation (COPs) are defeased through Mello Roos special taxes and developer fees. COPsrepresent an additional 81.5% of the District long term debt.
FACTORS BEARING ON THE DISTRICT’S FUTURE
For several years, the District saw rapid growth as new housing developments were completed andnew homeowners moved into the District. The housing crisis and the economic downturn have hada significant impact on this development. Enrollment in 2012 13 increased only 38 students (or .6%)over 2011 12. Enrollment is projected to be on target to increase by 33 students in 2013 14. TheDistrict anticipates that enrollment will increase by approximately 0.6% 1.00% over the next fewyears and will increase steadily once developers begin building houses in Lincoln again.
The District has taken a balanced approach to manage the state imposed budget cuts of the pastseveral years. The primary interest of the Board of Trustees and the various District constituencieshas been to maintain jobs and maintain a positive certification.
The District’s greatest challenge continues to be maintaining a viable relationship between itsrevenues and expenditures while at the same time expanding its infrastructure and services toaddress the educational needs of its existing and future students. The $17 million recovered from theState in realization of the District’s basic aid status has certainly aided in this but over the years ofbalanced budget cuts the District now is faced with reducing expenditures to maintaining a reserveof at least 3% for economic uncertainties. Negotiations with collective bargaining groups for the yearhave been finalized. Other District costs, most notably certificated health and welfare benefits,continue to increase.
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In 2013 14, the District adopted their budget with an effective cost of living adjustment (COLA) forrevenue is 1.565%. The District made $4.4 million in budget reductions for 2013 14, which was acombination of one time and on going savings ($2.4 million) and the use of ending fund balancereserves ($2 million). Of the $4.4 million in 2013 14 budget reductions only $300,000 are ongoing. Theremaining $4.1 million of the 2013 14 reductions will need to be identified again in 2014 15. Anadditional $900,000 of on going reductions will need to be identified in 2014 15 for a total of $5.0million in budget reductions to maintain a positive certification. If $3.45 million of the $5.0 millionbudget reductions made in 2014 15 are on going no further cuts will be needed in 2015 16.
The 2013 14 State Budget was approved before the deadline of June 30, 2013. The State Budget isbalanced and has the first real reserve in years. The structural deficit has been eliminated, at least forthe duration of Proposition 30. With the State budget approval, the Local Control Funding Formula(LCFF) compromise was agreed to by the Legislature. Education received its first slice of restorationof cuts that began in 2008 09. But not all districts benefit equally and the level of funding for mostdistricts remains well below 2007 08. The Governor has used the bulk of the unexpected 2012 13Proposition 98 revenues for one time purposes to buy down deferrals and support Common Corestart up allocations. The Governor’s policy goals in pursuing reforms to the state’s school financesystem have remained consistent throughout the budget process, to increase transparency andreduce complexity, reduce the administrative burden, improve funding equity across school districts,and improve local accountability. To attain these goals, the LCFF eliminates revenue limits and almostall categorical programs, establishes base grants for four grade spans, which will provide absolutedollar equalization at full implementation and establishes supplemental/concentration grants toprovide supplemental services to low income and English learner students. The school district’s LCFFentitlement will be based on three key elements, its base year funding in 2012 13, the demographicsof its student population, specifically the percentage of students who qualify forsupplemental/concentration grants and the state appropriation for LCFF.
With the new LCFF Funding model in place, the District will be increasing their projected 2013 14State revenues by approximately $1.2 million. The actual final calculation will not be known until July1, 2014.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, andcreditors with a general overview of the District’s finances and to demonstrate the District’saccountability for the money it receives. If you have questions about this report or need additionalfinancial information, contact the Business Office, Western Placer Unified School District, 600 SixthStreet, Suite 400, Lincoln, CA 95648, (916) 645 6350.
BASIC FINANCIAL STATEMENTS
WESTERN PLACER UNIFIED SCHOOL DISTRICT
STATEMENT OF NET POSITION
June 30, 2013
GovernmentalActivities
ASSETS
Cash and investments (Note 2) $ 28,957,772Receivables 4,068,454Prepaid expenses 391,440Stores inventory 19,488Non-depreciable capital assets (Note 4) 49,444,770Depreciable capital assets, net of accumulated
depreciation (Note 4) 127,509,846
Total assets 210,391,770
LIABILITIES
Accounts payable 6,301,629Unearned revenue 94,363Long-term liabilities (Note 5):
Due within one year 2,228,498Due after one year 156,789,778
Total liabilities 165,414,268
NET POSITION
Net investment in capital assets 23,073,112Restricted (Note 6) 18,310,494Unrestricted 3,593,896
Total net position $ 44,977,502
See accompanying notes to financial statements.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2013
Net(Expense)
Revenue andChanges in
Program Revenues Net Position Charges Operating Capital
For Grants and Grants and GovernmentalExpenses Services Contributions Contributions Activities
Governmental activities (Note 4):Instruction $ 33,523,212 $ - $ 4,560,066 $ 44,363 $ (28,918,783)Instruction-related services:
Supervision of instruction 1,204,021 - 748,010 - (456,011)Instructional library, media and
technology 448,510 - 3,297 - (445,213)School site administration 3,310,593 - 96,345 - (3,214,248)
Pupil services:Home-to-school transportation 1,454,009 85,252 330,010 - (1,038,747)Food services 1,573,773 589,388 992,804 - 8,419All other pupil services 1,472,735 - 454,218 - (1,018,517)
General administration:Data processing 912,893 - 5,976 - (906,917)All other general administration 2,339,546 32,523 465,382 - (1,841,641)
Plant services 4,372,505 - 9,349 - (4,363,156)Ancillary services 951,070 - 367,438 - (583,632)Community services 57,178 - 17,191 - (39,987)Other outgo 7,682,070 - 338,339 - (7,343,731)Interest on long-term liabilities 2,349,888 - - - (2,349,888)
Total governmental activities $ 61,652,003 $ 707,163 $ 8,388,425 $ 44,363 (52,512,052)
General revenues:Taxes and subventions:
Taxes levied for general purposes 32,396,317Taxes levied for debt service 1,821,900Taxes levied for other specific purposes 5,364,587
Federal and state aid not restricted to specific purposes 5,453,088Interest and investment earnings 310,394Interagency revenues 120,141Miscellaneous 2,655,179
Total general revenues 48,121,606
Change in net position (4,390,446)
Net position, July 1, 2012, as previously stated 55,642,211
Cumulative effect of change in accounting principle (6,274,263)
Net position, July 1, 2012, as restated 49,367,948
Net position, June 30, 2013 $ 44,977,502
See accompanying notes to financial statements.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2013
TotalAll Govern-
General Mello-Roos Non-Major mentalFund Fund Funds Funds
ASSETS
Cash and investments:Cash in County Treasury $ 6,823,830 $ 12,145,074 $ 6,981,808 $ 25,950,712Cash in revolving fund 2,000 - - 2,000Cash with Fiscal Agent - 3,005,060 - 3,005,060
Receivables 3,695,834 11,076 361,544 4,068,454Prepaid expenditures 391,440 - - 391,440Stores inventory - - 19,488 19,488Due from other funds 86,020 - 42,816 128,836
Total assets $ 10,999,124 $ 15,161,210 $ 7,405,656 $ 33,565,990
LIABILITIES ANDFUND BALANCES
Liabilities:Accounts payable $ 3,030,532 $ 6,568 $ 74,651 $ 3,111,751Unearned revenue 88,200 - 6,163 94,363Due to other funds 3,059 - 125,777 128,836
Total liabilities 3,121,791 6,568 206,591 3,334,950
Fund balances:Nonspendable 393,440 - 19,488 412,928Restricted 1,385,237 15,154,642 7,179,577 23,719,456Assigned 2,573,273 - - 2,573,273Unassigned 3,525,383 - - 3,525,383
Total fund balances 7,877,333 15,154,642 7,199,065 30,231,040
Total liabilities and fundbalances $ 10,999,124 $ 15,161,210 $ 7,405,656 $ 33,565,990
See accompanying notes to financial statements.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET -TO THE STATEMENT OF NET POSITION
June 30, 2013
Total fund balances - Governmental Funds $ 30,231,040
Amounts reported for governmental activities in the statement ofnet position are different because:
Capital assets used for governmental activities are not financialresources and, therefore, are not reported as assets ingovernmental funds. The cost of the assets is $211,172,360and the accumulated depreciation is $34,217,744 (Note 4). 176,954,616
In governmental funds, interest on long-term debt is notrecognized until the period in which it matures and is paid. Inthe government-wide statements, it is recognized in theperiod that it is incurred. (3,189,878)
Long-term liabilities are not due and payable in the currentperiod and, therefore, are not reported as liabilities in thegovernmental funds. Long-term liabilities at June 30, 2013consisted of (Note 5):
Special Tax Bonds $ (12,720,000)General Obligation Bonds (4,816,103)Accreted interest (9,753,093)Certificates of Participation (129,575,000)Capitalized lease obligations (22,368)PARS (1,151,422)Other postemployment benefits (Note 8) (843,390)Compensated absences (136,900)
(159,018,276)
Total net position - governmental activities $ 44,977,502
See accompanying notes to financial statements.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
STATEMENT OF REVENUES, EXPENDITURES ANDCHANGE IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended June 30, 2013
TotalAll Govern-
General Mello-Roos Non-Major mentalFund Fund Funds Funds
Revenues:Revenue limit sources:
State apportionment $ 10,965,331 $ - $ - $ 10,965,331Local sources 22,806,488 - - 22,806,488
Total revenue limit 33,771,819 - - 33,771,819
Federal sources 2,189,646 - 968,725 3,158,371Other state sources 6,064,608 - 293,740 6,358,348Other local sources 3,558,205 5,985,525 4,429,289 13,973,019
Total revenues 45,584,278 5,985,525 5,691,754 57,261,557
Expenditures:Certificated salaries 22,947,395 - 44,238 22,991,633Classified salaries 6,269,175 - 917,688 7,186,863Employee benefits 9,981,925 - 431,654 10,413,579Books and supplies 1,745,768 - 665,391 2,411,159Contract services and operating
expenditures 4,386,933 38,482 523,072 4,948,487Capital outlay 40,482 - 283,620 324,102Other outgo 1,385,561 - - 1,385,561Debt service:
Principal retirement 388,394 795,000 798,308 1,981,702Interest 730 7,202,484 919,692 8,122,906
Total expenditures 47,146,363 8,035,966 4,583,663 59,765,992
(Deficiency) excess of revenues(under) over expenditures (1,562,085) (2,050,441) 1,108,091 (2,504,435)
Other financing sources (uses):Operating transfers in 89,146 1,145,000 62,294 1,296,440Operating transfers out (26,419) - (1,270,021) (1,296,440)
Total other financing sources(uses) 62,727 1,145,000 (1,207,727) -
Change in fund balances (1,499,358) (905,441) (99,636) (2,504,435)
Fund balances, July 1, 2012 9,376,691 16,060,083 7,298,701 32,735,475
Fund balances, June 30, 2013 $ 7,877,333 $ 15,154,642 $ 7,199,065 $ 30,231,040
See accompanying notes to financial statements.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES ANDCHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS -
TO THE STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2013
Net change in fund balances - Total Governmental Funds $ (2,504,435)
Amounts reported for governmental activities in the statement ofactivities are different because:
Acquisition of capital assets is an expenditure in thegovernmental funds, but increases capital assets in thestatement of net position (Note 4). $ 520,940
Depreciation of capital assets is an expense that is notrecorded in the governmental funds (Note 4). (3,700,437)
Repayment of principal on long-term liabilities is anexpenditure in the governmental funds, but decreases thelong-term liabilities in the statement of net position (Note 5). 1,981,702
Accreted interest is not accrued in the governmental funds, butis recognized over the life of the debt in the government-widefinancial statements (Note 5). (672,003)
Unmatured interest on long-term liabilities is not recorded inthe governmental funds until it becomes due, but increasesthe liabilities in the statement of net position. 170,755
In the statement of activities, expenses related to otherpostemployment benefits and compensated absences aremeasured by the amounts earned during the year. In thegovernmental funds, expenditures are measured by theamount of financial resources used (Notes 5 and 8). (186,968) (1,886,011)
Change in net position of governmental activities $ (4,390,446)
See accompanying notes to financial statements.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
STATEMENT OF FIDUCIARY NET POSITION
TRUST AND AGENCY FUNDS
June 30, 2013
Agency Trust Funds Fund
Retiree StudentScholarship Benefits Body Total
ASSETS
Cash and investments (Note 2):Cash in County Treasury $ 161,174 $ 6,568 $ - $ 167,742Cash on hand and in banks - - 217,215 217,215
Receivables 158 6 - 164
Total assets 161,332 6,574 217,215 385,121
LIABILITIES
Due to student groups - - 217,215 217,215
NET POSITION
Restricted (Note 6) $ 161,332 $ 6,574 $ - $ 167,906
See accompanying notes to financial statements.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
STATEMENT OF CHANGE IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
For the Year Ended June 30, 2013
Trust Funds
RetireeScholarship Benefits Total
Operating revenues:Other local sources $ 2,146 $ 87 $ 2,233
Operating expenditures:Contract services and operating
expenditures 2,250 - 2,250
Change in net position (104) 87 (17)
Net position, July 1, 2012 161,436 6,487 167,923
Net position, June 30, 2013 $ 161,332 $ 6,574 $ 167,906
See accompanying notes to financial statements.
21
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Western Placer Unified School District (the "District") accounts for its financialtransactions in accordance with the policies and procedures of the CaliforniaDepartment of Education's California School Accounting Manual. The accountingpolicies of the District conform to accounting principles generally accepted in the UnitedStates of America as prescribed by the Governmental Accounting Standards Board.The following is a summary of the more significant policies:
Reporting Entity
The Board of Education is the level of government which has governance responsibilitiesover all activities related to public school education in the District. The Board is notincluded in any other governmental "reporting entity" as defined by the GovernmentalAccounting Standards Board since Board members have decision-making authority, thepower to designate management, the responsibility to significantly influence operationsand primary accountability for fiscal matters.
Mello-Roos Community Facilities District
The District and the Mello-Roos Community Facilities District (the "CFD") have afinancial and operational relationship that meets the reporting entity definition criteria ofGASB Codification Section 2100, The Financial Reporting Entity, for inclusion of theCFD as a blended component unit of the District. Accordingly, the financial activities ofthe CFD have been included in the financial statements of the District within the Mello-Roos Fund, a capital projects fund. Special tax bonds issued by the CFD are included inlong-term liabilities on the government-wide financial statements.
Western Placer Unified School District Financing Corporation
The District and the Western Placer Unified School District Financing Cooperation (theCorporation) have a financial and operational relationship that meets the reporting entitydefinition criteria of GASB Codification Section 2100, The Financial Reporting Entity, forinclusion of the Corporation as a blended component unit of the District. Accordingly,the financial activities of the Corporation have been included in the general-purposefinancial statements of the District within the Building Fund, a capital projects fund. Thecertificates of participation issued by the Corporation are included in long-term liabilitieson the government-wide financial statements.
22
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Western Placer Unified School District Financing Corporation
The following are those aspects of the relationship between the District and theCorporation and the District and the CFD & Corporation which satisfy Codification ofGovernmental Accounting and Financial Reporting Standards, Section 2100, asamended by criteria:
A - Accountability:
1. The CFD & Corporation's Board of Directors were appointed by theDistrict's Board of Education.
2. The CFD & Corporation have no employees. The District's AssistantSuperintendent, Business and Operations functions as the agent of theCFD & Corporation and does not receive additional compensation for workperformed in this capacity.
3. The District's Board exercises significant influence over operations of theCFD & Corporation as the District is the sole lessee of all facilities ownedby the CFD & Corporation.
4. All major financing arrangements, contracts, and other transactions of theCFD & Corporation must have the consent of the District.
5. Any deficits incurred by the CFD & Corporation will be reflected in the leasepayments of the District. Any surpluses of the CFD & Corporation revert tothe District at the end of the lease period.
6. The District's lease payments are the sole revenue source of the CFD &Corporation.
7. The District has assumed a "moral obligation," and potentially a legalobligation, for any debt incurred by the CFD & Corporation.
B - Scope of Public Service:
The CFD & Corporation were formed for the sole purpose of financiallyassisting the District. The CFD & Corporation were formed to provide financingassistance to the District for construction, rehabilitation and acquisition of majorcapital facilities to support the student population.
C - Financial Presentation:
For financial presentation purposes, the CFD & Corporation's financial activityhave been blended with the financial data of the District. The basic financialstatements present the CFD & Corporation's financial activity within the Mello-Roos and Building Funds.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation - Financial Statements
The basic financial statements include a Management's Discussion and Analysis(MD & A) section providing an analysis of the District's overall financial position andresults of operations, financial statements prepared using full accrual accounting for allof the District's activities, including infrastructure, and a focus on the major funds.
Basis of Presentation - Government-Wide Financial Statements
The Statement of Net Position and the Statement of Activities displays information aboutthe reporting government as a whole. Fiduciary funds are not included in thegovernment-wide financial statements. Fiduciary funds are reported only in theStatement of Fiduciary Net Position and the Statement of Change in Fiduciary NetPosition at the fund financial statement level.
The Statement of Net Position and the Statement of Activities are prepared using theeconomic resources measurement focus and the accrual basis of accounting.Revenues, expenses, gains, losses, assets and liabilities resulting from exchange andexchange-like transactions are recognized when the exchange takes place. Revenues,expenses, gains, losses, assets and liabilities resulting from nonexchange transactionsare recognized in accordance with the requirements of Governmental AccountingStandards Board Codification Section (GASB Cod. Sec.) N50.118-.121.
Program revenues: Program revenues included in the Statement of Activities derivedirectly from the program itself or from parties outside the District's taxpayers orcitizenry, as a whole; program revenues reduce the cost of the function to be financedfrom the District's general revenues.
Allocation of indirect expenses: The District reports all direct expenses by function in theStatement of Activities. Direct expenses are those that are clearly identifiable with afunction. Depreciation expense is specifically identified by function and is included in thedirect expense of each function. Interest on general long-term liabilities is considered anindirect expense and is reported separately on the Statement of Activities.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation - Fund Accounting
The accounts of the District are organized on the basis of funds, each of which isconsidered to be a separate accounting entity. The operations of each fund areaccounted for with a separate set of self-balancing accounts that comprise its assets,liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Districtresources are allocated to and accounted for in individual funds based upon the purposefor which they are to be spent and the means by which spending activities are controlled.
A - Major Funds
1. General Fund:
The General Fund is the general operating fund of the District andaccounts for all revenues and expenditures of the District notencompassed within other funds. All general tax revenues and otherreceipts that are not allocated by law or contractual agreement to someother fund are accounted for in this fund. General operating expendituresand the capital improvement costs that are not paid through other fundsare paid from the General Fund. The activities of the Special Reserve forOther Than Capital Outlay Fund have been included in the General Fundfor financial reporting purposes.
2. Mello-Roos Fund:
The Mello-Roos Fund is used to account for resources used for theacquisition or construction of capital facilities by the District.
B - Other Funds
1. Special Revenue Funds:
The Special Revenue Funds are used to account for the proceeds ofspecific revenue sources that are legally restricted to expenditures forspecified purposes. This classification includes the Adult Education,Child Development, Cafeteria and Deferred Maintenance Funds.
2. Capital Projects Funds:
The Capital Projects Funds are used to account for resources used forthe acquisition or construction of capital facilities by the District. Thisclassification includes the Building, County School Facilities, CapitalFacilities and Special Reserve Funds.
25
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of Presentation - Fund Accounting (Continued)
B - Other Funds (Continued)
3. Bond Interest and Redemption Fund:
The Bond Interest and Redemption Fund is used to account for theaccumulation of resources for, and the payment of, general long-termdebt principal, interest, and related costs.
4. Trust Fund:
The Trust Funds are used to account for assets held by the District asTrustee. The District maintains two expendable trust funds, theScholarship Trust, which is to be used to provide financial assistance tostudents of the District, and the Retiree Benefits Fund, which is used bythe District to reserve for funds to pay for retiree benefits.
5. Agency Funds:
The Student Body Funds are used to account for revenues andexpenditures of the various student body organizations. All cash activity,assets and liabilities of the various student bodies of the District areaccounted for in Student Body Funds.
Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses arerecognized in the accounts and reported in the basic financial statements. Basis ofaccounting relates to the timing of the measurement made, regardless of themeasurement focus applied.
Accrual
The governmental activities in the government-wide financial statements and thefiduciary fund financial statements are presented on the accrual basis of accounting.Revenues are recognized when earned and expenses are recognized when incurred.
Modified Accrual
The governmental funds financial statements are presented on the modified accrualbasis of accounting. Under the modified accrual basis of accounting, revenues arerecorded when susceptible to accrual; i.e., both measurable and available. "Available"means collectible within the current period or within 60 days after year end.Expenditures are generally recognized under the modified accrual basis of accountingwhen the related liability is incurred. The exception to this general rule is that principaland interest on general obligation long-term liabilities, if any, is recognized when due.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budgets and Budgetary Accounting
By state law, the Board of Education must adopt a final budget by July 1. A publichearing is conducted to receive comments prior to adoption. The Board of Educationcomplied with these requirements.
Receivables
Receivables are made up principally of amounts due from the State of California forRevenue Limit funding and Categorical programs. The District has determined that noallowance for doubtful accounts was needed as of June 30, 2013.
Cafeteria Food Purchases
Cafeteria purchases include food purchased through the State of California Office ofSurplus Property, for which the District is required to pay only a handling charge. Thestate does not require the Cafeteria Fund to record the fair market value of thesecommodities. The expenditures for these items would have been greater had the Districtpaid fair market value for the government surplus food commodities.
Capital Assets
Capital assets purchased or acquired, with an original cost of $5,000 or more, arerecorded at historical cost or estimated historical cost. Contributed assets are reportedat fair market value as of the date received. Additions, improvements and other capitaloutlay that significantly extend the useful life of an asset are capitalized. Other costsincurred for repairs and maintenance are expensed as incurred. Capital assets aredepreciated using the straight-line method over 5 - 50 years depending on asset types.
Compensated Absences
Compensated absences totaling $136,900 are recorded as a liability of the District. Theliability is for the earned but unused benefits.
Accumulated Sick Leave
Sick leave benefits are not recognized as liabilities of the District. The District's policy isto record sick leave as a operating expenditure or expense in the period taken sincesuch benefits do not vest nor is payment probable; however, unused sick leave is addedto the creditable service period for calculation of retirement benefits for certain STRSand CalPERS employees, when the employee retires.
Unearned Revenue
Revenue from federal, state, and local special projects and programs is recognizedwhen qualified expenditures have been incurred. Funds received but not earned arerecorded as unearned revenue until earned.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Restricted Net Position
Restrictions of the ending net position indicate the portions of net position notappropriable for expenditure or amounts legally segregated for a specific future use.The restriction for unspent categorical program revenues represent programs where therevenue received is restricted for expenditures only in that particular program. Therestriction for special revenues represents the portion of net position restricted forspecial purposes. The restriction for debt service repayments represents the portion ofnet position which the District plans to expend on debt repayment. The restriction forcapital projects represents the portion of net position restricted for capital projects. Therestriction for scholarships represents the portion of net position to be used to providefinancial assistance to students of the District. The restriction for retiree benefitsrepresents the portion of net position to be used by the District to pay for retiree benefits.It is the District's policy to use restricted net position first when allowable expendituresare incurred.
Fund Balance Classifications
Governmental Accounting Standards Board Codification Sections 1300 and 1800, FundBalance Reporting and Governmental Fund Type Definitions (GASB Cod. Sec. 1300 and1800) implements a five-tier fund balance classification hierarchy that depicts the extentto which a government is bound by spending constraints imposed on the use of itsresources. The five classifications, discussed in more detail below, are nonspendable,restricted, committed, assigned and unassigned.
A - Nonspendable Fund Balance:
The nonspendable fund balance classification reflects amounts that are not inspendable form, such as revolving fund cash, prepaid expenditures and storesinventory.
B - Restricted Fund Balance:
The restricted fund balance classification reflects amounts subject to externallyimposed and legally enforceable constraints. Such constraints may be imposedby creditors, grantors, contributors, or laws or regulations of other governments,or may be imposed by law through constitutional provisions or enablinglegislation. These are the same restrictions used to determine restricted netposition as reported in the government-wide and fiduciary trust fund statements.
28
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fund Balance Classifications (Continued)
C - Committed Fund Balance:
The committed fund balance classification reflects amounts subject to internalconstraints self-imposed by formal action of the Board of Education. Theconstraints giving rise to committed fund balance must be imposed no later thanthe end of the reporting period. The actual amounts may be determinedsubsequent to that date but prior to the issuance of the financial statements.Formal action by the Board of Education is required to remove any commitmentfrom any fund balance. At June 30, 2013, the District had no committed fundbalances.
D - Assigned Fund Balance:
The assigned fund balance classification reflects amounts that the District'sBoard of Education has approved to be used for specific purposes, based on theDistrict's intent related to those specific purposes. The Board of Education candesignate personnel with the authority to assign fund balances, however, as ofJune 30, 2013, no such designation has occurred.
E - Unassigned Fund Balance:
In the General Fund only, the unassigned fund balance classification reflects theresidual balance that has not been assigned to other funds and that is notrestricted, committed, or assigned to specific purposes.
In any fund other than the General Fund, a positive unassigned fund balance isnever reported because amounts in any other fund are assumed to have beenassigned, at least, to the purpose of that fund. However, deficits in any fund,including the General Fund that cannot be eliminated by reducing or eliminatingamounts assigned to other purposes are reported as negative unassigned fundbalance.
Fund Balance Policy
The District has an expenditure policy relating to fund balances. For purposes of fundbalance classifications, expenditures are to be spent from restricted fund balances first,followed in order by committed fund balances (if any), assigned fund balances and lastlyunassigned fund balances.
While GASB Cod. Sec. 1300 and 1800 do not require districts to establish a minimumfund balance policy or a stabilization arrangement, GASB Cod. Sec. 1300 and 1800 dorequire the disclosure of a minimum fund balance policy and stabilization arrangements,if they have been adopted by the Board of Education. At June 30, 2013, the District hasestablished a minimum General Fund fund balance policy of 5% of General Fund totaloutgo. As of June 30, 2013, the District has an unassigned balance of $3,525,383 or16.7%.
29
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property Taxes
Secured property taxes are attached as an enforceable lien on property as of March 1.Taxes are due in two installments on or before December 10 and April 10. Unsecuredproperty taxes are due in one installment on or before August 31. The County of Placerbills and collects taxes for the District. Tax revenues are recognized by the District whenreceived.
Encumbrances
Encumbrance accounting is used in all budgeted funds to reserve portions of applicableappropriations for which commitments have been made. Encumbrances are recordedfor purchase orders, contracts, and other commitments when they are written. Allencumbrances are liquidated as of June 30.
Eliminations and Reclassifications
In the process of aggregating data for the Statement of Net Position and the Statementof Activities, some amounts reported as interfund activity and balances in the funds wereeliminated or reclassified. Interfund receivables and payables were eliminated tominimize the "grossing up" effect on assets and liabilities within the governmentalactivities column.
Estimates
The preparation of basic financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management to makeestimates and assumptions. These estimates and assumptions affect the reportedamounts of assets and liabilities and disclosure of contingent assets and liabilities at thedate of the financial statements and the reported amounts of revenues and expendituresduring the reporting period. Accordingly, actual results may differ from those estimates.
Adoption of New Accounting Standards
In November 2010, GASB issued Statement No. 61, The Financial Reporting Entity:Omnibus. The Statement improves financial reporting for a governmental financialreporting entity. The requirements of Statement No. 14, The Financial Reporting Entity,and the related financial reporting requirements of Statement No. 34, Basic FinancialStatements—and Management’s Discussion and Analysis—for State and LocalGovernments, were amended to better meet user needs and to address reporting entityissues. This statement was adopted for the District’s fiscal year ended June 30, 2013with no material impact on the District.
30
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Adoption of New Accounting Standards (Continued)
In December 2010, GASB issued Statement No. 62, Codification of Accounting andFinancial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPAPronouncements. The Statement incorporates into the GASB’s authoritative literaturecertain accounting and financial reporting guidance that is included in the followingpronouncements issued on or before November 30, 1989, which does not conflict with orcontradict GASB pronouncements: (1) Financial Accounting Standards Board(FASB) Statements and Interpretations; (2) Accounting Principles Board Opinions; and(3) Accounting Research Bulletins of the American Institute of Certified PublicAccountants’ (AICPA) Committee on Accounting Procedure. This statement wasadopted for the District’s fiscal year ended June 30, 2013 with no material impact on theDistrict.
In June 2011, GASB issued Statement No. 63, Financial Reporting of Deferred Outflowsof Resources, Deferred Inflows of Resources, and Net Position. This Statementprovides a new statement of net position format to report all assets, deferred outflows ofresources, liabilities, deferred inflows of resources, and net position (which is the netresidual amount of the other elements). This Statement requires that deferred outflowsof resources and deferred inflows of resources be reported separately from assets andliabilities. This Statement also amends certain provisions of GASB Statement No. 34,Basic Financial Statement – and Management’s Discussion and Analysis – for State andLocal Governments, and related pronouncements to reflect the residual measure in thestatement of financial position as net position, rather than net assets.
In March 2012, GASB issued Statement No. 65, "Items Previously Reported as Assetsand Liabilities", this Statement establishes accounting and financial reporting standardsthat reclassify, as deferred outflows of resources or deferred inflow of resources, certainitems were previously reported as assets and liabilities and recognizes, as outflows ofresources or inflow of resources, certain items that were previously reported as assetsand liabilities. The requirements of this Statement are effective for financial statementsfor periods beginning after December 15, 2012. The District early adopted thisStatement and the financial statements as of June 30, 2013 have been retroactivelyrestated for the change. Under this Statement, debt issuance costs, except for prepaidinsurance are recognized as an outflow/expense. The adoption of this Statementresulted in a decrease in net position at July 1, 2012 of $6,274,263 for thegovernmentwide activities for debt issuance costs that were previously recognized asassets.
31
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Adoption of New Accounting Standards (Continued)
In March 2012, GASB issued Statement No. 66, Technical Corrections – 2013, anamendment of GASB Statements No. 10 and No. 61. The objective of this Statement isto improve accounting and financial reporting for a governmental financial reportingentity by resolving conflicting guidance that resulted from the issuance of twopronouncements, Statements No. 64, Fund Balance Reporting and Governmental FundType Definitions, and No. 62, Codification of Accounting and Financial ReportingGuidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements.This Statement amends Statement No. 10, Accounting and Financial Reporting for RiskFinancing and Related Insurance Issues, by removing the provision that limits fund-based reporting of an entity’s risk financing activities to the general fund and theinternal service fund type. As a result, Districts should base their decisions about fundtype classification on the nature of the activity to be reported, as required in StatementNo. 54 and Statement No. 34, Basic Financial Statements-and Management’sDiscussion and Analysis-for State and Local Governments. This Statement also amendsStatement No. 62 by modifying the specific guidance on accounting for (1) operatinglease payments that vary from a straight line basis, (2) the difference between the initialinvestment (purchase price) and the principal amount of a purchased loan or group ofloans, and (3) servicing fees related to mortgage loans that are sold when the statedservice fee rate differs significantly from a current (normal) servicing fee rate. Thesechanges clarify how to apply Statement No. 13, Accounting for Operating Leases withScheduled Rent Increases, and result in guidance that is consistent with therequirements in Statement No. 48, Sales and Pledges of Receivables and FutureRevenues and Intra-Entity Transfers of Assets and Future Revenues, respectively. Theprovisions of this Statement are effective for the District’s fiscal year ended June30, 2014, with earlier application encouraged. Management has not determined whatimpact, if any, this GASB statement will have on the District’s financial statements.
In June 2012, GASB issued Statement 67, Financial Reporting for Pension Plans. ThisStatement replaces the requirements of Statement No. 25, Financial Reporting forDefined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans andStatement No. 50 as they relate to pension plans that are administered through trusts orsimilar arrangements meeting certain criteria. The Statement builds upon the existingframework for financial reports of defined benefit pension plans, which includes astatement of fiduciary net position (the amount held in a trust for paying retirementbenefits) and a statement of changes in fiduciary net position. Statement No. 67enhances note disclosures and RSI for both defined benefit and defined contributionpension plans. Statement No. 67 also requires the presentation of new information aboutannual money-weighted rates of return in the notes to the financial statements and in 10-year RSI schedules. This Statement is effective for the District’s financial periodbeginning June 30, 2014. Management has not determined what impact, if any, thisGASB statement might have on its financial statements.
32
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Adoption of New Accounting Standards (Continued)
In June 2012, GASB issued Statement No. 68, Accounting and Financial Reporting forPensions. This Statement replaces the requirements of Statement No. 27, Accountingfor Pensions by State and Local Governmental Employers and Statement No. 50,Pension Disclosures, as they relate to governments that provide pensions throughpension plans administered as trusts or similar arrangements that meet certaincriteria. Statement 68 requires governments providing defined benefit pensions torecognize their long-term obligation for pension benefits as a liability for the first time,and to more comprehensively and comparably measure the annual costs of pensionbenefits. The Statement also enhances accountability and transparency through revisedand new note disclosures and required supplementary information (RSI). ThisStatement is effective for the District’s financial period beginning June 30, 2015.Management has not determined what impact, if any, this GASB statement might haveon its financial statements.
2. CASH AND INVESTMENTS
Cash and investments at June 30, 2013 are reported at fair value and consisted of thefollowing:
Governmental FiduciaryActivities Activities
Pooled Fund:Cash in County Treasury $ 25,950,712 $ 167,742
Deposits:Cash on hand and in banks - 217,215Cash in revolving fund 2,000 -
Investments:Cash with Fiscal Agent 3,005,060 -
Total cash and investments $ 28,957,772 $ 384,957
Pooled Funds
In accordance with Education Code Section 41001, the District maintains substantiallyall of its cash in the Placer County Treasury. The County pools these funds with thoseof school districts in the County and invests the cash. These pooled funds are carried atcost which approximates fair value. Interest earned is deposited monthly intoparticipating funds. Any investment losses are proportionately shared by all funds in thepool.
33
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
2. CASH AND INVESTMENTS (Continued)
Pooled Funds (Continued)
Because the District's deposits are maintained in a recognized pooled investment fundunder the care of a third party and the District's share of the pooled investment funddoes not consist of specific, identifiable investment securities owned by the District, nodisclosure of the individual deposits and investments or related custodial credit riskclassifications is required.
In accordance with applicable state laws, the Placer County Treasurer may invest inderivative securities. However, at June 30, 2013, the Placer County Treasurer hasrepresented that the Treasurer's pooled investment fund contained no derivatives orother investments with similar risk profiles.
Deposits - Custodial Credit Risk
The District limits custodial credit risk by ensuring uninsured balances are collateralizedby the respective financial institution. Cash balances held in banks are insured up to$250,000 by the Federal Deposit Insurance Corporation (FDIC) and are collateralized bythe respective financial institution. At June 30, 2013, the carrying amount of theDistrict's accounts was $219,215 and the bank balance was $236,597, all of which wasinsured.
Investments
The Cash with Fiscal Agent of $3,005,060 in the Mello-Roos Fund represents debtproceeds that have been set aside for capital projects and the repayment of long-termliabilities. These amounts are held by a third party custodian in the District's name.
Interest Rate Risk
The District does not have a formal investment policy that limits cash and investmentmaturities as a means of managing its exposure to fair value losses arising fromincreasing interest rates. At June 30, 2013, the District had no significant interest raterisk related to cash and investments held.
Credit Risk
The District does not have a formal investment policy that limits its investment choicesother than the limitations of state law.
Concentration of Credit Risk
The District does not place limits on the amount it may invest in any one issuer. AtJune 30, 2013, the District had no concentration of credit risk.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
3. INTERFUND TRANSACTIONS (Continued)
Interfund Activity
Transactions between funds of the District are recorded as interfund transfers, except forthe Self-Insurance Fund activity which is recorded as income and expenditures of theSelf-Insurance Fund and the funds which incur payroll costs, respectively. The unpaidbalances at year end, as a result of such transactions, are shown as due to and duefrom other funds.
Interfund Receivables/Payables
Individual interfund receivable and payable balances at June 30, 2013 were as follows:
Interfund Interfund Fund Receivables Payables
Major Fund:General $ 86,020 $ 3,059
Non-Major Funds:Adult Education 3,926 7,720Cafeteria - 69,649
Child Development 2,863 12,533Deferred Maintenance 152 -Building - 35,875Special Reserve 35,875 -
Totals $ 128,836 $ 128,836
35
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
3. INTERFUND TRANSACTIONS (Continued)
Interfund Transfers
Interfund transfers consist of operating transfers from funds receiving revenue to fundsthrough which the resources are to be expended.
Interfund transfers for the 2012-2013 fiscal year were as follows:
Transfer from the General Fund to the Adult Education Fund forTransition Partnership Program match. $ 23,404
Transfer from the General Fund to the Child Development Fundfor debt payment. 2,863
Transfer from the General Fund to the Deferred MaintenanceFund to balance the Deferred Maintenance Fund. 152
Transfer from the Adult Education Fund to the General Fund forFirst Five indirect costs. 6,964
Transfer from the Child Development Fund to the General Fundfor State Preschool indirect costs. 12,533
Transfer from the Cafeteria Fund to the General Fund forindirect costs. 69,649
Transfer from the Building Fund to the Special Reserve Fundfor Project Lead the Way expenses. 35,875
Transfer from the Capital Facilities Fund to the Mello-RoosFund for developer fee revenues. 1,145,000
$ 1,296,440
36
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
4. CAPITAL ASSETS
A schedule of changes in capital assets for the year ended June 30, 2013 is shownbelow:
Balance Transfers Transfers BalanceJuly 1, and and June 30,2012 Additions Deductions 2013
Governmental Activities
Non-depreciable:Land $ 38,662,548 $ - $ - $ 38,662,548Work-in-process 10,547,133 235,089 - 10,782,222
Depreciable:Buildings 153,948,718 158,591 - 154,107,309Equipment 4,625,840 34,843 - 4,660,683Site improvements 2,867,181 92,417 - 2,959,598
Totals, at cost 210,651,420 520,940 - 211,172,360
Less accumulateddepreciation:
Buildings (26,312,286) (3,227,844) - (29,540,130)Equipment (2,677,333) (98,005) - (2,775,338)Site improvements (1,527,688) (374,588) - (1,902,276)
Total accumulateddepreciation (30,517,307) (3,700,437) - (34,217,744)
Capital assets, net $ 180,134,113 $ (3,179,497) $ - $ 176,954,616
Depreciation expense was charged to governmental activities as follows:
Instruction $ 3,352,000Site administration 2,000Home-to-School transportation 308,034Food services 16,934General administrative 4,242Centralized data processing 6,000Plant services 11,227
Total depreciation expense $ 3,700,437
37
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
5. LONG-TERM LIABILITIES
Special Tax Bonds
In 2005, the District issued Community Facilities District No. 1 Special Tax Bonds in theamount of $15,000,000, to pay for the acquisition and construction of certain schoolfacilities. The bonds bear interest rates ranging from 3.0% to 5.0% and are scheduled tomature in September 2034.
Scheduled payments on Series 2005 Special Tax Bond are as follows:
Year EndedJune 30, Principal Interest Total
2014 $ 390,000 $ 548,190 $ 938,1902015 405,000 534,521 939,5212016 420,000 519,034 939,0342017 435,000 501,934 936,9342018 450,000 484,234 934,234
2019-2023 2,550,000 2,128,824 4,678,8242024-2028 3,110,000 1,543,197 4,653,1972029-2033 3,860,000 765,904 4,625,9042034-2035 1,100,000 47,500 1,147,500
$ 12,720,000 $ 7,073,338 $ 19,793,338
General Obligation Bonds
In 1999, the District issued General Obligation Bonds in the amount of $15,052,284, toconstruct, repair and expand local schools. Repayment of the bonds will be made fromproperty taxes levied. The bonds bear interest rates ranging from 4.6% to 6.05% and arescheduled to mature in June 2019.
Year EndedJune 30, Principal Interest Total
2014 $ 794,898 $ 1,045,102 $ 1,840,0002015 810,899 1,189,101 2,000,0002016 821,052 1,328,948 2,150,0002017 832,116 1,492,884 2,325,0002018 845,720 1,664,280 2,510,0002019 711,418 1,533,582 2,245,000
$ 4,816,103 $ 8,253,897 $ 13,070,000
38
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
5. LONG-TERM LIABILITIES (Continued)
Certificates of Participation (COPs)
In June 2008, the District issued $32,370,000 Refinancing Project COPs, with interestrates ranging from 3.4% to 5.0%, maturing in 2048. The 2008 refinancing COPs wasused to pay the 2003 Series A COPS and the 2003 Series B COPs. In August 2008,the District issued $36,725,000 Refinancing Project COPs, with interest rates rangingfrom 4.0% to 5.13%, maturing in 2048. The 2008B refinancing COPs was used to paythe 2004 Series A COPs. In December 2009, the District issued $53,035,000Refinancing Project COPs, with interest rates ranging from 3.0% to 5.75%, maturing in2050. The 2009 refinancing COPs was used to pay the 2006 Series B COPs. InNovember 2011, the District issued $8,620,000 Refinancing Project COPs, with interestrates between 2.0% and 5.2% and maturing in 2042, for the advance refunding of theDistrict's 2006 Series A COPs.
The 2008, Refinancing Project COPs matured as follows:
Year EndedJune 30, Principal Interest Total
2014 $ - $ 1,569,505 $ 1,569,5052015 - 1,569,505 1,569,5052016 95,000 1,567,890 1,662,8902017 95,000 1,564,613 1,659,6132018 345,000 1,556,740 1,901,740
2019-2023 3,125,000 7,460,911 10,585,9112024-2028 2,785,000 6,697,497 9,482,4972029-2033 1,400,000 6,309,375 7,709,3752034-2038 4,790,000 5,782,750 10,572,7502039-2043 12,225,000 3,420,625 15,645,6252044-2048 7,510,000 568,500 8,078,500
$ 32,370,000 $ 38,067,911 $ 70,437,911
39
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
5. LONG-TERM LIABILITIES (Continued)
Certificates of Participation (COPs) (Continued)
The 2008, Series B COPs matured as follows:
Year EndedJune 30, Principal Interest Total
2014 $ - $ 1,843,194 $ 1,843,1942015 - 1,843,194 1,843,1942016 210,000 1,837,944 2,047,9442017 210,000 1,827,444 2,037,4442018 215,000 1,816,819 2,031,819
2019-2023 1,810,000 8,904,983 10,714,9832024-2028 1,110,000 8,485,606 9,595,6062029-2033 2,525,000 8,189,195 10,714,1952034-2038 5,780,000 7,156,819 12,936,8192039-2043 10,865,000 5,021,659 15,886,6592044-2048 14,000,000 1,865,953 15,865,953
$ 36,725,000 $ 48,792,810 $ 85,517,810
The 2009, Refinancing Project COPs matured as follows:
Year EndedJune 30, Principal Interest Total
2014 $ 350,000 $ 2,813,489 $ 3,163,4892015 365,000 2,802,764 3,167,7642016 250,000 2,792,914 3,042,9142017 240,000 2,784,039 3,024,0392018 340,000 2,773,079 3,113,079
2019-2023 1,730,000 13,630,441 15,360,4412024-2028 5,930,000 12,843,737 18,773,7372029-2033 7,955,000 10,970,345 18,925,3452034-2038 6,580,000 8,677,799 15,257,7992039-2043 630,000 8,046,550 8,676,5502044-2048 12,495,000 6,652,895 19,147,8952049-2050 15,165,000 884,493 16,049,493
$ 52,030,000 $ 75,672,545 $127,702,545
40
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
5. LONG-TERM LIABILITIES (Continued)
Certificates of Participation (COPs) (Continued)
The 2011, Refinancing Project COPs matured as follows:
Year EndedJune 30, Principal Interest Total
2014 $ 155,000 $ 402,456 $ 557,4562015 160,000 397,732 557,7322016 165,000 392,857 557,8572017 170,000 387,832 557,8322018 175,000 382,548 557,548
2019-2023 180,000 1,871,724 2,051,7242024-2028 1,130,000 1,809,611 2,939,6112029-2033 2,375,000 1,257,592 3,632,5922034-2038 1,960,000 777,642 2,737,6422039-2042 1,980,000 212,941 2,192,941
$ 8,450,000 $ 7,892,935 $ 16,342,935
Capitalized Lease Obligations
The District leases various buildings and equipment under agreements that have beencapitalized and recorded as a long term liability in the financial statements. The Districtwill receive no sublease rental revenues nor pay any contingent rentals for thisequipment. The following is a schedule of future lease payments:
Year Ending LeaseJune 30, Payments
2014 $ 18,3162015 4,887
Total payments 23,203
Less amount representing interest (835)
Net minimum lease payments $ 22,368
41
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
5. LONG-TERM LIABILITIES (Continued)
PARS Supplementary Retirement Plan
The District implemented a Public Agency Retirement System (PARS) SupplementaryRetirement Plan, which was available to employees that satisfied all the requirementsoutlined in the execution agreement with an effective date of April 5, 2011. There are 33participants in the Plan. The District will make non-elective employer contributions to theparticipants' 403(b) annuity contract held with Pacific Life Insurance Company. Thefollowing is a schedule of the future payments for the PARS Supplementary RetirementPlan:
Year Ending AnnualJune 30, Payments
2014 $ 383,8082015 383,8072016 383,807
Total payments remaining $ 1,151,422
Schedule of Changes in Long-Term Liabilities
A schedule of changes in long-term liabilities for the year ended June 30, 2013 is shownbelow:
Balance Balance AmountsJuly 1, June 30, Due Within2012 Additions Deletions 2013 One Year
Governmental activities:Special Tax Bonds $ 13,100,000 $ - $ 380,000 $ 12,720,000 $ 390,000General Obligation Bonds 5,601,411 - 785,308 4,816,103 794,898Accreted interest 9,081,090 672,003 - 9,753,093 -Certificates of Participation 129,990,000 - 415,000 129,575,000 505,000Capitalized lease obligations 39,954 - 17,586 22,368 17,892PARS 1,535,230 - 383,808 1,151,422 383,808Other postemployment benefits
(Note 8) 618,507 467,242 242,359 843,390 -Compensated absences 174,815 - 37,915 136,900 136,900
Total $ 160,141,007 $ 1,139,245 $ 2,261,976 $ 159,018,276 $ 2,228,498
Payments on the Special Tax Bonds are made from the Mello-Roos Fund. Payments onthe General Obligation Bonds are made from the Bond Interest and Redemption Fund.Payments on the Certificates of Participation are made from the Mello-Roos Fund.Payments on the capitalized lease obligations are made from the General and ChildDevelopment Funds. Payments for the PARS are made from the General Fund.Payments for the other postemployment benefits and the compensated absences aremade from the fund for which the related employee worked.
42
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
6. NET POSITION / FUND BALANCES
Restricted net position consisted of the following at June 30, 2013:
Governmental FiduciaryActivities Funds
Restricted for unspent categoricalprogram revenues $ 1,385,237 $ -
Restricted for special revenues 306,042 -Restricted for capital projects 15,204,802 -Restricted for debt service 1,414,413 -Restricted for scholarships - 161,332Restricted for retiree benefits - 6,574
Total restricted net position $ 18,310,494 $ 167,906
43
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
6. NET POSITION / FUND BALANCES (Continued)
Fund balances, by category, at June 30, 2013 consisted of the following:
AllGeneral Mello-Roos Non-Major
Fund Funds Funds TotalNonspendable:
Revolving cash fund $ 2,000 $ - $ - $ 2,000Prepaid expenses 391,440 - - 391,440Stores inventory - - 19,488 19,488
Subtotal nonspendable 393,440 - 19,488 412,928
Restricted:Unspent categorical revenues 1,385,237 - - 1,385,237Child development - - 8,594 8,594Adult education - - 77,204 77,204Cafeteria - - 200,756 200,756Capital projects - 15,154,642 5,478,610 20,633,252Debt service - - 1,414,413 1,414,413
Subtotal restricted 1,385,237 15,154,642 7,179,577 23,719,456
Assigned:Deferred maintenance 1,957,000 - - 1,957,000School site carryover 566,273 - - 566,273Lottery carryover 50,000 - - 50,000
Subtotal assigned 2,573,273 - - 2,573,273
Unassigned:Designated for economic
uncertainty 1,412,509 - - 1,412,509Undesignated 2,112,874 - - 2,112,874
Subtotal unassigned 3,525,383 - - 3,525,383
Total fund balances $ 7,877,333 $ 15,154,642 $ 7,199,065 $ 30,231,040
44
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
7. EMPLOYEE RETIREMENT SYSTEMS
Qualified employees are covered under multiple-employer defined benefit pension plansmaintained by agencies of the State of California. Certificated employees are membersof the State Teachers' Retirement System (STRS), and classified employees aremembers of the California Public Employees' Retirement System (CalPERS).
Plan Description and Provisions
California Public Employees' Retirement System (CalPERS)
Plan Description
The District contributes to the School Employer Pool under the California PublicEmployees' Retirement System (CalPERS), a cost-sharing multiple-employer publicemployee retirement system defined benefit pension plan administered by CalPERS.The plan provides retirement and disability benefits, annual cost-of-living adjustments,and death benefits to plan members and beneficiaries. Benefit provisions areestablished by state statutes, as legislatively amended, within the Public Employees'Retirement Law. CalPERS issues a separate comprehensive annual financial reportthat includes financial statements and required supplementary information. Copies ofthe CalPERS annual financial report may be obtained from the CalPERS ExecutiveOffice, 400 Q Street, Sacramento, California 95811.
Funding Policy
Active plan members are required to contribute 7% of their salary and the District isrequired to contribute an actuarially determined rate. The actuarial methods andassumptions used for determining the rate are those adopted by the CalPERS Board ofAdministration. The required employer contribution rate for fiscal year 2012-2013 was11.417% of annual payroll. The contribution requirements of the plan members areestablished by state statute. The District's contributions to CalPERS for the fiscal yearsending June 30, 2011, 2012 and 2013 were $750,389, $706,932 and $700,663respectively, and equal 100% of the required contributions for each year.
State Teachers' Retirement System (STRS)
Plan Description
The District contributes to the State Teachers' Retirement System (STRS), a cost-sharing multiple-employer public employee retirement system defined benefit pensionplan administered by STRS. The plan provides retirement, disability and survivorbenefits to beneficiaries. Benefit provisions are established by state statutes, aslegislatively amended, within the State Teachers' Retirement Law. STRS issues aseparate comprehensive annual financial report that includes financial statements andrequired supplementary information. Copies of the STRS annual financial report may beobtained from the STRS Executive Office, 100 Waterfront Place, West Sacramento,California 95605.
45
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
7. EMPLOYEE RETIREMENT SYSTEMS (Continued)
Plan Description and Provisions (Continued)
State Teachers' Retirement System (STRS) (Continued)
Funding Policy
Active plan members are required to contribute 8% of their salary. The requiredemployer contribution rate for fiscal year 2012-2013 was 8.25% of annual payroll. Thecontribution requirements of the plan members are established by state statute. TheDistrict's contributions to STRS for the fiscal years ending June 30, 2011, 2012 and2013 were $2,083,867, $1,967,588 and $1,878,652, respectively, and equal 100% of therequired contributions for each year.
8. OTHER POSTEMPLOYMENT BENEFITS
In addition to the pension benefits described in Note 7, the District providespostretirement health care benefits to certificated employees (under three distinctagreements between the District and the Western Placer Teachers Association) andclassified employees (under an agreement between the District and the Western PlacerClassified Employees Association) as follows:
A. The District pays the full cost of health care benefits to age 65 for employeeswho retired prior to June 30, 1990 and had reached age 60. The full cost ofbenefits is limited to the amount the District was paying as of June 30, 1990.After age 65, the District continues to pay 50% of the current certificate cap andthe retiree pays the remainder. As of June 30, 2013, there were 7 retireesreceiving benefits under this agreement.
B. The District's certificated retirees who had at least fifteen years of service andhad reached a minimum age of 55 and retire after July 1, 2001 receive up to$6,455 per year in health care benefits for a maximum of 10 years or untilage 65, whichever comes first. As of June 30, 2013, there were 21 retiredemployees receiving benefits under this agreement.
C. The District pays up to $2,775 per year in healthcare benefits for classifiedemployees who had at least fifteen years of service and had reached age 55 andretired after July 1, 2003. These benefits cease after a maximum of five years orat age 65, whichever comes first. As of June 30, 2013, there were 5 retiredemployees receiving benefits under this agreement.
46
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
8. OTHER POSTEMPLOYMENT BENEFITS (Continued)
The District's annual other postemployment benefit (OPEB) cost (expense) is calculatedbased on the annual required contribution of the employer (ARC), an amount actuariallydetermined in accordance with the parameters of GASB Cod. Sec. P50.108-.109. TheARC represents a level of funding that, if paid on an ongoing basis, is projected to covernormal cost each year and amortize any unfunded actuarial liabilities (or funding excess)over a period not to exceed thirty years. The following table shows the components ofthe District's annual OPEB cost for the year, the amount actually contributed to the plan,and changes in the District's net OPEB obligation:
Annual required contribution $ 349,921
Interest on net OPEB obligation 47,068
Adjustment to annual required contribution 70,253
Annual OPEB cost (expense) 467,242
Contributions made (242,359)
Change in net OPEB obligation 224,883
Net OPEB obligation - beginning of year 618,507
Net OPEB obligation - end of year $ 843,390
The District's annual OPEB cost, the percentage of annual OPEB cost contributed to theplan, and the net OPEB obligation for the year ended June 30, 2013 and preceding twoyears were as follows:
Percentageof Annual
Fiscal Year Annual OPEB Cost Net OPEBEnded OPEB Cost Contributed Obligation
June 30, 2011 $ 440,873 585% $ 496,229June 30, 2012 $ 349,502 65% $ 618,507June 30, 2013 $ 467,242 52% $ 843,390
As of July 1, 2013, the most recent actuarial valuation date, the plan was partiallyfunded. The actuarial accrued liability for benefits was $3.7 million and the actuarialvalue of plan assets was $3.1 million, resulting in an unfunded liability of $0.7 million.The covered payroll (annual payroll of active employees covered by the Plan) was$29.3 million, and the ratio of the UAAL to the covered payroll was 2 percent.
47
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
8. OTHER POSTEMPLOYMENT BENEFITS (Continued)
Actuarial valuations of an ongoing plan involve estimates of the value of reportedamounts and assumptions about the probability of occurrence of events far into thefuture. Examples include assumptions about future employment, mortality, and thehealthcare cost trend. Amounts determined regarding the funded status of the plan andthe annual required contributions of the employer are subject to continual revision asactual results are compared with past expectations and new estimates are made aboutthe future. The schedule of funding progress, shown as required supplementaryinformation, presents multiyear trend information about whether the actuarial value ofplan assets is increasing or decreasing over time relative to the actuarial accruedliabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan(the plan as understood by the employer and the plan members) and include the typesof benefits provided at the time of each valuation and the historical pattern of sharing ofbenefit costs between the employer and plan members to that point. The actuarialmethods and assumptions used include techniques that are designed to reduce theeffects of short-term volatility in actuarial accrued liabilities and the actuarial value ofassets, consistent with the long-term perspective of the calculations.
In the July 1, 2013 actuarial valuation, the entry age actuarial cost method was used.The actuarial assumptions included a 7.61 percent investment rate (net of administrativeexpenses), which is a blended rate of the expected long-term investment returns on planassets and on the employer's own investments calculated based on the funded level ofthe plan on the valuation date, and an annual healthcare cost trend rate of 4.0 percent.The actuarial value of assets was determined using a 15 year smoothing formula with a20% corridor around market value, based on the market value of the assets as ofJune 30, 2013.
9. JOINT POWERS AGREEMENT
Schools Insurance Group
The District is a member with other school districts of a Joint Powers Authority, SchoolsInsurance Group (SIG), for the operation of a common risk management and insuranceprogram for property and liability coverage. The following is a summary of financialinformation for SIG at June 30, 2013:
Total assets $ 83,133,130Total liabilities $ 29,410,877Total net position $ 53,722,253Total revenues $ 80,938,807Total expenses $ 79,400,033Change in net position $ 1,538,774
The relationship between the District and the Joint Powers Authority is such that theJoint Powers Authority is not component unit of the District for financial reportingpurposes.
48
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO BASIC FINANCIAL STATEMENTS(Continued)
10. CONTINGENCIES
The District is subject to legal proceedings and claims which arise in the ordinary courseof business. In the opinion of management, the amount of ultimate liability with respectto these actions will not materially affect the financial position or results of operations ofthe District.
The District has received federal and state funds for specific purposes that are subject toreview and audit by the grantor agencies. Although such audits could result inexpenditure disallowances under terms of the grants, it is management's opinion thatany required reimbursements of future revenue offsets subsequently determined will nothave a material effect on the District's financial position or results of operations.
11. SUBSEQUENT EVENTS
On August 22, 2013, the District issued $6,000,000 of Tax and Revenue AnticipationNotes (TRAN). The TRAN mature on September 18, 2014, and yield 2.00 percentinterest. The TRAN were sold to supplement cash flow and are repaid from taxes,income, revenue, cash receipts and other monies received by or accruing to the GeneralFund of the District during the fiscal year.
In October 2013, the District's Board approved a resolution for the acquisition of realproperty, 26 +/- acres, from Sierra Joint Community College District. The District placeda $600,000 deposit, which upon the close of escrow will be applied to the purchase priceof the asset. The purchase price of the property shall be the greater of $2,919,000,which is equal to 70% of the current appraised value of $4,170,000, or 70% of theupdated appraised value subsequent to the close of escrow.
49
REQUIRED SUPPLEMENTARY INFORMATION
WESTERN PLACER UNIFIED SCHOOL DISTRICT
GENERAL FUND
BUDGETARY COMPARISON SCHEDULE
For the Year Ended June 30, 2013
Budget Variance Favorable
Original Final Actual (Unfavorable)
Revenues:Revenue limit sources:
State apportionment $ 9,897,483 $ 9,897,483 $ 10,965,331 $ 1,067,848Local sources 22,581,721 22,581,721 22,806,488 224,767
Total revenue limit 32,479,204 32,479,204 33,771,819 1,292,615
Federal sources 1,901,344 1,901,344 2,189,646 288,302Other state sources 5,120,321 5,120,321 6,064,608 944,287Other local sources 3,426,634 3,426,634 3,558,205 131,571
Total revenues 42,927,503 42,927,503 45,584,278 2,656,775
Expenditures:Certificated salaries 23,167,559 23,167,559 22,947,395 220,164Classified salaries 6,241,098 6,241,098 6,269,175 (28,077)Employee benefits 10,262,435 10,262,435 9,981,925 280,510Books and supplies 2,959,675 2,975,068 1,745,768 1,229,300Contract services and operating
expenditures 3,558,243 3,558,243 4,386,933 (828,690)Capital outlay 10,000 10,000 40,482 (30,482)Other outgo 1,694,974 1,694,974 1,385,561 309,413Debt service:
Principal retirement 390,657 390,657 388,394 2,263Interest 1,775 1,775 730 1,045
Total expenditures 48,286,416 48,301,809 47,146,363 1,155,446
Deficiency of revenues under expenditures (5,358,913) (5,374,306) (1,562,085) 3,812,221
Other financing sources (uses):Operating transfers in 17,400 17,400 89,146 71,746Operating transfers out (23,360) (23,360) (26,419) (3,059)
Total other financing sources (uses) (5,960) (5,960) 62,727 68,687
Change in fund balance (5,364,873) (5,380,266) (1,499,358) 3,880,908
Fund balance, July 1, 2012 9,376,691 9,376,691 9,376,691 -
Fund balance, June 30, 2013 $ 4,011,818 $ 3,996,425 $ 7,877,333 $ 3,880,908
See accompanying notes to required supplementary information.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
SCHEDULE OF OTHER POSTEMPLOYMENT BENEFITS (OPEB)FUNDING PROGRESS
For the Year Ended June 30, 2013
Schedule of Funding Progress Unfunded UAAL as a
Actuarial Actuarial PercentageFiscal Actuarial Actuarial Accrued Accrued ofYear Valuation Value of Liability Liability Funded Covered Covered
Ended Date Assets (AAL) (UAAL) Ratio Payroll Payroll
06/30/09 March 20, 2008 $ - $ 3,000,000 $ 3,000,000 0% $ 5,300,000 45%06/30/10 March 20, 2008 $ - $ 3,000,000 $ 3,000,000 0% $ 5,300,000 45%06/30/11 March 1, 2010 $ 2,400,000 $ 3,000,000 $ 600,000 80% $ 29,100,000 2%06/30/12 June 30, 2011 $ 2,561,858 $ 3,064,036 $ 502,178 84% $ 30,316,435 2%06/30/13 July 1, 2013 $ 3,120,874 $ 3,665,931 $ 688,760 85% $ 29,274,548 2%
See accompanying notes to required supplementary information.
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WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
1. PURPOSE OF SCHEDULES
A - Budgetary Comparison Schedule
The District employs budget control by object codes and by individualappropriation accounts. Budgets are prepared on the modified accrual basis ofaccounting in accordance with accounting principles generally accepted in theUnited States of America as prescribed by the Governmental AccountingStandards Board. The budgets are revised during the year by the Board ofEducation to provide for revised priorities. Expenditures cannot legally exceedappropriations by major object code. The originally adopted and final revisedbudgets for the General Fund are presented as Required SupplementaryInformation. The basis of budgeting is the same as GAAP.
B - Schedule of Other Postemployment Benefits Funding Progress
The Schedule of Funding Progress presents multi-year trend information whichcompares, over time, the actuarially accrued liability for benefits with theactuarial value of accumulated plan assets.
52
SUPPLEMENTARY INFORMATION
WESTERN PLACER UNIFIED SCHOOL DISTRICT
COMBINING BALANCE SHEET
ALL NON-MAJOR FUNDS
June 30, 2013
County BondAdult Child Deferred Capital School Special Interest and
Education Development Cafeteria Maintenance Building Facilities Facilities Reserve RedemptionFund Fund Fund Fund Fund Fund Fund Fund Fund Total
ASSETS
Cash in County Treasury $ 33,999 $ 20,045 $ 139,610 $ (152) $ 2,486,456 $ 307,487 $ 2,572,432 $ 8,816 $ 1,413,115 $ 6,981,808Receivables 50,826 820 132,326 - 2,540 952 2,527 170,255 1,298 361,544Stores inventory - - 19,488 - - - - - - 19,488Due from other funds 3,926 2,863 - 152 - - - 35,875 - 42,816
Total assets $ 88,751 $ 23,728 $ 291,424 $ - $ 2,488,996 $ 308,439 $ 2,574,959 $ 214,946 $ 1,414,413 $ 7,405,656
LIABILITIES ANDFUND BALANCES
Liabilities:Accounts payable $ 113 $ 151 $ 1,532 $ - $ 29,731 $ 15,617 $ 25,343 $ 2,164 $ - $ 74,651Unearned revenue 3,714 2,449 - - - - - - - 6,163Due to other funds 7,720 12,533 69,649 - 35,875 - - - - 125,777
Total liabilities 11,547 15,133 71,181 - 65,606 15,617 25,343 2,164 - 206,591
Fund balances:Nonspendable - - 19,488 - - - - - - 19,488Restricted 77,204 8,595 200,755 - 2,423,390 292,822 2,549,616 212,782 1,414,413 7,179,577
Total fund balances 77,204 8,595 220,243 - 2,423,390 292,822 2,549,616 212,782 1,414,413 7,199,065
Total liabilities and fundbalances $ 88,751 $ 23,728 $ 291,424 $ - $ 2,488,996 $ 308,439 $ 2,574,959 $ 214,946 $ 1,414,413 $ 7,405,656
53
WESTERN PLACER UNIFIED SCHOOL DISTRICT
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES
ALL NON-MAJOR FUNDS
For the Year Ended June 30, 2013
County BondAdult Child Deferred Capital School Special Interest and
Education Development Cafeteria Maintenance Building Facilities Facilities Reserve RedemptionFund Fund Fund Fund Fund Fund Fund Fund Fund Total
Revenues:Federal sources $ 32,834 $ - $ 935,891 $ - - $ - - $ - $ - $ 968,725Other state sources - 217,260 75,344 - - - 1,136 - - 293,740Other local sources 126,813 11,713 641,523 (152) 29,475 1,543,566 43,228 202,949 1,830,174 4,429,289
Total revenues 159,647 228,973 1,652,758 (152) 29,475 1,543,566 44,364 202,949 1,830,174 5,691,754
Expenditures:Certificated salaries - 44,238 - - - - - - - 44,238Classified salaries 100,170 93,040 629,533 - 29,358 65,587 - - - 917,688Employee benefits 31,813 51,220 308,032 - 9,489 31,100 - - - 431,654Books and supplies 13,798 19,873 609,615 - 18,326 356 - 3,423 - 665,391Contract services and
operating expenditures 3,762 517 14,461 - 104,376 138,478 126,681 134,797 - 523,072Capital outlay - - - - 222,819 - 16,563 44,238 - 283,620Debt service:
Principal retirement - 13,000 - - - - - - 785,308 798,308Interest - - - - - - - - 919,692 919,692
Total expenditures 149,543 221,888 1,561,641 - 384,368 235,521 143,244 182,458 1,705,000 4,583,663
Excess (deficiency) ofrevenues over (under)expenditures 10,104 7,085 91,117 (152) (354,893) 1,308,045 (98,880) 20,491 125,174 1,108,091
Other financing sources (uses):Operating transfers in 23,404 2,863 - 152 - - - 35,875 - 62,294Operating transfers out (6,964) (12,533) (69,649) - (35,875) (1,145,000) - - - (1,270,021)
Total other financingsources (uses) 16,440 (9,670) (69,649) 152 (35,875) (1,145,000) - 35,875 - (1,207,727)
Net change in fundbalances 26,544 (2,585) 21,468 - (390,768) 163,045 (98,880) 56,366 125,174 (99,636)
Fund balances, July 1, 2012 50,660 11,180 198,775 - 2,814,158 129,777 2,648,496 156,416 1,289,239 7,298,701
Fund balances, June 30, 2013 $ 77,204 $ 8,595 $ 220,243 $ - $ 2,423,390 $ 292,822 $ 2,549,616 $ 212,782 $ 1,414,413 $ 7,199,065
54
WESTERN PLACER UNIFIED SCHOOL DISTRICT
COMBINING STATEMENT OF CHANGES IN ASSETSAND LIABILITIES
ALL AGENCY FUNDS
For the Year Ended June 30, 2013
Balance BalanceJuly 1, June 30,2012 Additions Deductions 2013
Student Body Funds
Lincoln High School
Assets:Cash on hand and in banks $ 193,851 $ 476,945 $ 536,649 $ 134,147
Liabilities:Due to student groups $ 193,851 $ 476,945 $ 536,649 $ 134,147
Middle Schools
Assets:Cash on hand and in banks $ 80,619 $ 139,661 $ 137,212 $ 83,068
Liabilities:Due to student groups $ 80,619 $ 139,661 $ 137,212 $ 83,068
Total Agency Funds
Assets:Cash on hand and in banks $ 274,470 $ 616,606 $ 673,861 $ 217,215
Liabilities:Due to student groups $ 274,470 $ 616,606 $ 673,861 $ 217,215
55
WESTERN PLACER UNIFIED SCHOOL DISTRICT
ORGANIZATION
June 30, 2013
Western Placer Unified School District, a political subdivision of the State of California,was established in 1966 and is comprised of an area of approximately 170 square miles locatedin Placer County. There were no changes in the boundaries of the District during the year. TheDistrict currently operates seven elementary schools, two middle schools, one high school, onecontinuation school and one adult school.
GOVERNING BOARD
Name Office Term Expires
Kris Wyatt President November 2014Brian Haley Vice President November 2014Damian Armitage Clerk November 2014Paul Carras Member November 2016Paul Long Member November 2016
ADMINISTRATION
Scott LeamanSuperintendent
Mary BoyleDeputy Superintendent, Educational Services
Audrey KilpatrickAssistant Superintendent, Business and Operations
56
WESTERN PLACER UNIFIED SCHOOL DISTRICT
SCHEDULE OF AVERAGE DAILY ATTENDANCE
For the Year Ended June 30, 2013
SecondPeriod AnnualReport Report
Elementary:Kindergarten 554 556First through Third 1,648 1,651Fourth through Eighth 2,515 2,519Home and Hospital 2 2Special Education 120 116
Total Elementary 4,839 4,844
Secondary:Regular Classes 1,359 1,354Special Education 41 37Compulsory Continuation Education 59 57Home and Hospital 1 2
Total Secondary 1,460 1,450
6,299 6,294
57
WESTERN PLACER UNIFIED SCHOOL DISTRICT
SCHEDULE OF INSTRUCTIONAL TIME
For the Year Ended June 30, 2013
Reduced1986-87 1986-87 Reduced NumberMinutes Minutes 1982-83 1982-83 2013-2014 of DaysRequire- Require- Actual Actual Actual Traditional
Grade Level ment ment Minutes Minutes Minutes Calendar Status
Kindergarten 36,000 35,000 31,680 30,800 35,000 175 In Compliance
Grade 1 50,400 49,000 44,494 43,258 52,990 175 In Compliance
Grade 2 50,400 49,000 44,494 43,258 52,990 175 In Compliance
Grade 3 50,400 49,000 44,494 43,258 53,270 175 In Compliance
Grade 4 54,000 49,000 53,261 52,132 54,110 175 In Compliance
Grade 5 54,000 52,500 53,261 52,132 54,110 175 In Compliance
Grade 6 54,000 52,500 53,261 52,132 60,075 175 In Compliance
Grade 7 54,000 52,500 53,261 52,132 60,075 175 In Compliance
Grade 8 54,000 52,500 53,261 52,132 60,075 175 In Compliance
Grade 9 64,800 63,000 59,932 58,267 64,725 175 In Compliance
Grade 10 64,800 63,000 59,932 58,267 64,845 175 In Compliance
Grade 11 64,800 63,000 59,932 58,267 64,725 175 In Compliance
Grade 12 64,800 63,000 59,932 58,267 64,081 175 In Compliance
See accompanying notes to supplementary information.
58
WESTERN PLACER UNIFIED SCHOOL DISTRICT
SCHEDULE OF EXPENDITURE OF FEDERAL AWARDS
For the Year Ended June 30, 2013
Pass-Through
Federal Entity FederalCatalog Federal Grantor/Pass-Through Identifying Expend-Number Grantor/Program or Cluster Title Number itures
U.S. Department of Education - Passed through California Departmentof Education
Special Education Cluster:84.027 Special Ed: IDEA Basic and Local Assistance
Entitlement, Part B, Sec 611 (Formerly 94-142) 13379 $ 1,031,99484.027A Special Ed: IDEA Preschool Local Entitlement,
Part B, Sec 611 (Age 3-5) 13682 289,94484.173 Special Ed: IDEA Preschool Grants, Part B,
Sec 619 13430 33,356
Subtotal Special Education Cluster 1,355,294
84.010 NCLB: Title I, Part A, Basic Grants Low-Incomeand Neglected 14329 479,288
84.365 NCLB: Title III, Limited English Proficiency StudentProgram 14346 83,175
84.367 NCLB: Title II, Part A, Improving Teacher QualityLocal Grants 14341 94,984
84.318 NCLB: Title II, Part D, Enhancing EducationThrough Technology (EETT), Formula Grants 14334 6,008
84.048 Carl D. Perkins Career and Technical Education:Secondary, Section 131 14894 43,497
84.158 Department of Rehabilitation: Workability II, TransitionsPartnership 10006 32,834
84.196 Education for Homeless Children and Youth 60973 14,850
Total U.S. Department of Education 2,109,930
U.S. Department of Agriculture - Passed through CaliforniaDepartment of Education
Child Nutrition Cluster:10.553 Especially Needy School Breakfast 13526 176,21310.555 National School Lunch 13523 759,678
Total U.S. Department of Agriculture 935,891
U.S. Department of Health and Human Services - Passed through CaliforniaDepartment of Education
93.778 Department of Health Care Services (DHCS):Medi-Cal Billing Option 10013 65,445
Total U.S. Department of Health and Human Services 65,445
Total Federal Awards $ 3,111,266
See accompanying notes to supplementary information.
59
WESTERN PLACER UNIFIED SCHOOL DISTRICT
RECONCILIATION OF UNAUDITED ACTUAL FINANCIAL REPORTWITH AUDITED FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
There were no audit adjustments proposed to any funds of the District.
See accompanying notes to supplementary information.
60
WESTERN PLACER UNIFIED SCHOOL DISTRICT
SCHEDULE OF FINANCIAL TRENDS AND ANALYSIS
For the Year Ended June 30, 2013
(UNAUDITED)
(Budget)2014 2013 2012 2011
General Fund
Revenues and other financing sources $ 47,240,561 $ 45,673,424 $ 49,190,052 $ 45,895,100
Expenditures 49,915,591 47,146,363 49,493,015 51,982,248Other uses and transfers out 23,360 26,419 213,226 207,519
Total outgo 49,938,951 47,172,782 49,706,241 52,189,767
Change in fund balance $ (2,698,390) $ (1,499,358) $ (516,189) $ (6,294,667)
Ending fund balance $ 5,178,943 $ 7,877,333 $ 9,376,691 $ 9,892,880
Available reserves $ 1,997,748 $ 3,525,383 $ 8,273,708 $ 6,900,603
Designated for economicuncertainties $ 1,494,815 $ 1,412,509 $ 1,499,954 $ 2,604,590
Undesignated fund balance $ 502,933 $ 2,112,874 $ 6,773,754 $ 4,296,013
Available reserves aspercentages of totaloutgo 4.0% 7.5% 16.7% 13.2%
All Funds
Total long-term liabilities $ 156,789,778 $ 159,018,278 $ 160,141,007 $ 160,493,080
Average daily attendanceat P-2, excluding AdultEducation and CharterSchool 6,341 6,299 6,278 6,230
The General Fund fund balance has decreased by $8,310,214 over the past three years. The fiscal year2013-2014 budget projects a decrease of $2,698,390. For a district this size, the state recommendsavailable reserves of at least 3% of total General Fund expenditures, transfers out, and other uses. Forthe year ended June 30, 2013, the District met this requirement.
Total long-term liabilities have decreased by $1,474,802 over the past two years.
Average daily attendance has increased by 69 over the past two years. An increase of 42 ADA isprojected for the 2013-2014 fiscal year.
See accompanying notes to supplementary information.
61
WESTERN PLACER UNIFIED SCHOOL DISTRICT
SCHEDULE OF CHARTER SCHOOLS
For the Year Ended June 30, 2013
Included in DistrictFinancial Statements, or
Charter Schools Chartered by District Separate Report
Horizon Charter School Separate reportPartnerships for Student Centered Learning Separate report
See accompanying notes to supplementary information.
62
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO SUPPLEMENTARY INFORMATION
1. PURPOSE OF SCHEDULES
A - Schedule of Average Daily Attendance
Average daily attendance is a measurement of the number of pupils attendingclasses of the District. The purpose of attendance accounting from a fiscalstandpoint is to provide the basis on which apportionments of state funds aremade to school districts. This schedule provides information regarding theattendance of students at various grade levels and in different programs.
B - Schedule of Instructional Time
The District has received incentive funding for increasing instructional time asprovided by the Incentives for Longer Instructional Day. This schedule presentsinformation on the amount of instructional time offered by the District, andwhether the District complied with the provisions of Education Code Sections46201 through 46206.
C - Schedule of Expenditure of Federal Awards
OMB Circular A-133 requires a disclosure of the financial activities of allfederally funded programs. This schedule was prepared to comply with A-133requirements, and is presented on the modified accrual basis of accounting.
The following schedule provides a reconciliation between revenues reported onthe Statement of Revenues, Expenditures and Change in Fund Balances andthe related expenditures reported on the Schedule of Expenditure of FederalAwards. The reconciling amounts represent Federal funds that have beenrecorded as revenues that have not been expended by June 30, 2013.
CFDA Description Number Amount
Total Federal revenues, Statement ofRevenues, Expenditures and Changein Fund Balances $ 3,158,371
Less: Medi-Cal Billing Option funds not spent 93.778 (46,903)
Advanced Placement (AP) ProgramTest Fee; Advanced Placement IncentiveProgram Grants funds not spent 84.330 (202)
Total Schedule of Expenditure of FederalAwards $ 3,111,266
63
WESTERN PLACER UNIFIED SCHOOL DISTRICT
NOTES TO SUPPLEMENTARY INFORMATION(Continued)
1. PURPOSE OF SCHEDULES (Continued)
D - Reconciliation of Unaudited Actual Financial Report with Audited FinancialStatements
This schedule provides the information necessary to reconcile the UnauditedActual Financial Report to the audited financial statements.
E - Schedule of Financial Trends and Analysis - Unaudited
This schedule provides information on the District's financial condition over thepast three years and its anticipated condition for the 2013-2014 fiscal year, asrequired by the State Controller's Office. The information in this schedule hasbeen derived from audit information.
F - Schedule of Charter Schools
This schedule provides information for the California Department of Educationto monitor financial reporting by Charter Schools.
2. EARLY RETIREMENT INCENTIVE PROGRAM
Education Code Section 14502 requires certain disclosure in the financial statements ofdistricts which adopt Early Retirement Incentive Programs pursuant to Education CodeSections 22714 and 44929. For the fiscal year ended June 30, 2013, the District did notadopt this program.
64
FINDINGS AND RECOMMENDATIONS
WESTERN PLACER UNIFIED SCHOOL DISTRICT
SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2013
SECTION I - SUMMARY OF AUDITOR'S RESULTS
FINANCIAL STATEMENTS
Type of auditor's report issued: Unmodified
Internal control over financial reporting:Material weakness(es) identified? Yes X NoSignificant deficiency(ies) identified not considered
to be material weakness(es)? Yes X None reported
Noncompliance material to financial statements noted? Yes X No
FEDERAL AWARDS
Internal control over major programs:Material weakness(es) identified? Yes X NoSignificant deficiency(ies) identified not considered
to be material weakness(es)? Yes X None reported
Type of auditor's report issued on compliance formajor programs: Unmodified
Any audit findings disclosed that are required to bereported in accordance with Circular A-133,Section .510(a)? Yes X No
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster
10.553, 10.555 Child Nutrition Cluster
Dollar threshold used to distinguish between Type Aand Type B programs: $ 300,000
Auditee qualified as low-risk auditee? X Yes No
STATE AWARDS
Type of auditor's report issued on compliance forstate programs: Unmodified
72
WESTERN PLACER UNIFIED SCHOOL DISTRICT
SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS(Continued)
Year Ended June 30, 2013
SECTION II - FINANCIAL STATEMENT FINDINGS
No matters were reported.
73
WESTERN PLACER UNIFIED SCHOOL DISTRICT
SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS(Continued)
Year Ended June 30, 2013
SECTION III- FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
74
WESTERN PLACER UNIFIED SCHOOL DISTRICT
SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS(Continued)
Year Ended June 30, 2013
SECTION IV - STATE AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
75
STATUS OF PRIOR YEAR
FINDINGS AND RECOMMENDATIONS
WESTERN PLACER UNIFIED SCHOOL DISTRICT
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
Year Ended June 30, 2013
Finding/Recommendation Current StatusDistrict ExplanationIf Not Implemented
2012-01
The District has not prevented employeesfrom exceeding the maximum vacationaccrual as defined by the District policy.
The District should put procedures inplace to ensure vacation accruals are notexceeded.
2012-02
At Glen Edwards Middle School, thefollowing was noted:
Detailed schedules or receipts used tosupport the cash receipt amount werenot being turned in with monies receivedat the office.Student store inventory is not counted orreviewed periodically.Profit and loss statements for thestudent store are not being prepared orreviewed periodically.On several occasions, the ASB advisorpurchased items from Sam's Club usingpre-signed checks.Cash receipts turned into the officeshould be supported by detailedschedules or receipts to ensureamounts turned in are complete.Student store inventory should becounted and reviewed periodically.Profit and loss statements should beprepared monthly and reviewed.Pre-signed checks should not be writtenfor purchases of goods.
At Sheridan Elementary School onestudent was improperly included for atotal misstatement of 1 day.
Internal control procedures should beenhanced to ensure attendance isproperly determined and recorded.
Implemented
Implemented
76
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