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RUTHERFORD COUNTY
BOARD OF EDUCATION FOREST CITY, NORTH CAROLINA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2015
Prepared by Heidi Kerns, CMA
and the Finance Department
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RUTHERFORD COUNTY BOARD OF EDUCATION
TABLE OF CONTENTS INTRODUCTORY SECTION Page
Letter of Transmittal ......................................................................................................... i Organizational Chart ......................................................................................................... viii ASBO Certificate of Excellence ........................................................................................ ix FINANCIAL SECTION Exhibit Independent Auditors’ Report ................................................................................ 1 Management’s Discussion and Analysis ................................................................ 4 Basic Financial Statements: Government – Wide Financial Statements: 1 Statement of Net Position ............................................................................... 11 2 Statement of Activities .................................................................................... 12 Fund Financial Statements: 3 Balance Sheet – Governmental Funds ............................................................ 13 4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds ..................................................................................... 14 5 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ............................................................... 16 6 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – State Public School Fund ............................................ 17 7 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Federal Grants Fund .................................................... 18 8 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Local Special Expense ................................................ 19 9 Statement of Net Position – Proprietary Fund .................................................. 20 10 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Fund .......................................................................................... 21 11 Statement of Cash Flows – Proprietary Fund .................................................. 22 12 Statement of Fiduciary Net Position – Fiduciary Funds ................................... 24 13 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ................ 25 Notes to the Financial Statements ...................................................................... 26 Required Supplementary Information: Schedule of the Board’s Proportionate Share of the Net Pension Liability ........ 50 Schedule of Board Contributions ...................................................................... 51
RUTHERFORD COUNTY BOARD OF EDUCATION
TABLE OF CONTENTS Combining and Individual Fund Statements and Schedules: Schedule 1 Schedule of Revenues, Expenditures – Individual School Funds .................... 52 2 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Capital Outlay Fund ...................................................... 53 3 Schedule of Revenues and Expenditures – Budget and Actual (Non-GAAP) – School Food Service Fund ............................................................................ 54 4 Combining Statement of Fiduciary Net Position – Fiduciary Funds – Private Purpose Trust Funds ......................................................................... 56 5 Combining Statement of Changes in Fiduciary Net Position – Fiduciary Funds – Private Purpose Trust Funds ......................................................................... 57 6 Statement of Changes in Assets and Liabilities – Fiduciary Funds – Agency Fund ................................................................................................. 58 7 Rutherford County Head Start – (A Component Unit of Rutherford County Board of Education) Statement of Activities................................................... 59 8 Rutherford County Head Start – (A Component Unit of Rutherford County Board of Education) Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual .............................................................. 60 STATISTICAL SECTION Table Page Page
1 Net Position by Component .................................................................................. 62 2 Changes in Net Position ........................................................................................ 63 3 Governmental Funds – Fund Balances ................................................................. 65 4 Governmental Funds – Changes in Fund Balances .............................................. 66 5 Assessed Value and Actual Value of Taxable Property.......................................... 67 6 Direct and Overlapping Property Tax Rates .......................................................... 68 7 Principal Property Tax Payers ............................................................................... 69 8 Property Tax Levies and Collections for Rutherford County ................................... 70 9 Capital Expenditures .............................................................................................. 71 10 Ratios of Outstanding Debt by Type ...................................................................... 72 11 Principal Employers .............................................................................................. 73 12 Full-time Equivalent Employees by Function ......................................................... 74 13 School Building Information .................................................................................. 75 14 Operating Statistics ............................................................................................... 77 15 Teacher Salaries .................................................................................................... 78 16 Capital Projects and Expenditures ......................................................................... 79 17 School Food Service Fund Expenses .................................................................... 80 18 School Food Service Revenues and Operating Transfer in by Source ................... 81
RUTHERFORD COUNTY BOARD OF EDUCATION
TABLE OF CONTENTS COMPLIANCE SECTION Page Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................................................................ 82
Report on Compliance With Requirements Applicable to Each Major Federal Program and Internal Control Over Compliance in Accordance With OMB Circular A-133 and the State Single Audit Implementation Act ............................................ 84
Report on Compliance With Requirements Applicable to Each Major State Program and Internal Control Over Compliance in Accordance With Applicable Sections of OMB Circular A-133 and the State Single Audit Implementation Act ... 86
Schedule of Findings and Questioned Costs ......................................................... 88
Corrective Action Plan ........................................................................................... 91
Summary Schedule of Prior Audit Findings ............................................................ 92
Schedule of Expenditures of Federal and State Awards ........................................ 93
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INTRODUCTORY SECTION
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BOARD OF EDUCATION Barry Gold, Chair Sherry Bright, Vice-Chair
John Mark Bennett Jackie Hampton
Ritchie Garland Carolyn Keever Brandon Gosey
In compliance with federal law, Rutherford County Schools does not discriminate on the basis of race, sex, religion, color, national or ethnic origin, age, disability, or military service in its policies, programs, activities, admissions, or employment.
Rutherford County Schools Janet H. Mason, Ed.D.
Superintendent
Rutherford County Schools Vision: All Rutherford County students will graduate prepared for college and career success.
382 West Main Street Phone (828) 288-2200
Forest City, NC 28043 Fax (828) 288-2490
January 27, 2016
To the Members of the Rutherford County Board of Education and
Citizens of Rutherford County, North Carolina
In compliance with the Public School Laws of North Carolina, the Comprehensive Annual Financial
Report of the Rutherford County Board of Education (Board) for the fiscal year ended June 30, 2015 is
herewith submitted. This report has been prepared to provide the Board, representatives of financial
institutions, the citizenry, and other interested parties information concerning the financial condition of
the Board. Responsibility for accuracy, completeness, and clarity of the report rests with the
Superintendent and the Finance Officer. The report has been prepared by the Finance Department
following the requirements and guidelines promulgated by the Governmental Accounting Standards
Board. To the best of our knowledge and belief, the enclosed information is accurate in all its material
respects. This data is reported in a manner designed to fairly present the financial and operational results
of the Board as measured by financial activities of its various funds. Disclosures necessary to enable the
reader to gain understanding of such financial operations have been included.
The Comprehensive Annual Financial Report (CAFR) is presented in four sections: Introductory,
Financial, Statistical and Compliance. The Introductory Section includes this transmittal letter, an
organizational chart, including a list of principal officials, and the Certificate of Achievement for
Excellence in Financial Reporting awarded by the Association of School Business Officials for the 2014
Comprehensive Annual Financial Report. The Financial Section includes management’s discussion and
analysis (MD&A) and basic financial statements, as well as the unmodified opinion of independent
certified public accountants on the financial statements. The MD&A provides a narrative introduction,
overview, and analysis of the basic financial statements. This letter of transmittal is designed to
complement the MD&A and should be read in conjunction with it. The Board’s MD&A can be found
immediately following the report of the independent auditors. The Statistical Section includes several
tables of unaudited data providing financial history of the Board as well as demographics and other
informative statistics, generally presented on a multi-year basis. Statistical data for Rutherford County has
been included since the Rutherford County Board of Commissioners provides significant funding to the
School system.
We believe the data presented is accurate in all material respects and that it is presented in a manner
designed to fairly reflect the financial position and results of operations of the Board. All disclosures
necessary to enable the reader to gain the maximum understanding of the Board’s financial activity have
been included.
i
REPORTING ENTITY
The Board is a Local Education Agency empowered by State law [Chapter 115C of the North Carolina
General Statutes (G.S.)] with the responsibility to oversee and control all activities related to public
school education in Rutherford County, North Carolina. The Board consists of seven citizens elected for
staggered terms of four years. The Superintendent serves as secretary to the Board. The Board has no tax
levying authority and borrowing authority is limited by State law [Chapter 115C-528] and is required to
maintain accounting records according to a uniform state format. The Board receives funds from
Rutherford County, the State of North Carolina, the United States government and other agencies and
must comply with the varying legal requirements of each source entity.
North Carolina General Statute 115C-40 empowers the Board with general control and supervision of all
matters pertaining to the schools in the system. During the year, the Board operated eighteen schools and
one center that provided a continuum of service from birth through twelfth grade. These schools include
one preschool, ten elementary schools, three middle schools, one alternative school, three high schools
and one early college high school. The average daily membership for the 2014-2015 year was 8,301
students.
In 1997, the North Carolina General Assembly passed legislation creating charter schools, an alternative
to traditional public schools. The charter school receives a per pupil allocation of local county funds as
defined by the legislation. Although the County funds to the charter school pass through the Board, the
Board has no authority or responsibility related to the charter school and, therefore, it is not a component
unit of the Board.
ACCOUNTING SYSTEM AND BUDGETARY CONTROL
Accounting records of the school system must be maintained in a uniform state format. Monthly reports
of transactions of state and federal funds and details of disbursements from these funds are submitted to
the North Carolina Department of Public Instruction for review. Financial activities throughout the year
are controlled in accordance with the North Carolina School Budget and Fiscal Control Act which
requires a pre-audit procedure to ensure availability of funds prior to the issuance of purchase orders or
payment of claims. We believe that the Board’s internal accounting controls adequately safeguard assets
and provide reasonable assurance of proper recording of financial transactions. The concept of reasonable
assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the
evaluation of cost and benefits requires estimates and judgments by management. All internal control
evaluations occur within the above framework.
North Carolina General Statutes require all governmental units to adopt a balanced budget by July 1 of
each year. The Board’s annual budget resolution authorizes expenditures by purpose on a modified
accrual basis. For internal management purposes, the budget is allocated by line item within each purpose
or function. The Board also uses a purchase order encumbrance system that records encumbrances
outstanding against each line item of expenditure. Outstanding encumbrances at the end of the fiscal year
related to normal operations are considered to be continuing contracts and are transferred at the end of the
fiscal year to appropriations in future years.
ii
ECONOMIC CONDITION AND OUTLOOK
Rutherford County’s population is estimated to be 67,606, a decrease of .3 percent from the 2010 census.
There are 25,158 in the work force. The goods-producing employment has declined over the last decade,
while the service industry employment has increased. The median age is 43.31 as compared to 38 in 2000
with over 26% of the population 60+ years of age. The fastest growth in any age group in NC is 65 and
older, representing over half of the total population growth.
The County trend in jobs, population and unemployment seems to be following the national trends in
rural America. The top employers are now local government entities and service industries rather than
privately-held manufacturing firms. The manufacturing industries that remain still render some of the top
wages in the County yet service industry wages are more prevalent and also provide top wages in the
area.
Unfortunately, the County has not had immunity from continued unemployment issues brought on by
plant slowdowns and layoffs and slow recovery from the recession. Although people commuted into the
county for employment opportunities, nearly commuted out of the county to find employment.
iii
The state and local unemployment rate saw little change in the past year although underemployment and
exits from the workforce all together have made for some dispute as to the accuracy of the quoted rates.
The current unemployment rate of 5.5% is .1% more than a year ago. Rutherford County saw no change
and remains one of the top twenty highest unemployment rates in the state at 7.4% (counties range 4.1%
to 10.3%). The lowest unemployment over the past five years occurred in November 2007 at 5.6% and
peaked in April 2009 at 16% while the state unemployment rate during this time decreased nearly 1.5%.
The percentage of persons living below the poverty level in the US is about 15.40%, in NC the rate jumps
to 17.50% and Rutherford County continues to be one of the most economically distressed in the NC with
a poverty rate of 21.50%. In response, the Rutherford County Schools qualified for and implemented the
Community Eligibility Provision (CEP) in the Child Nutrition program so all students have a free
breakfast and lunch available to them each day.
The short-term outlook shows slight signs of improvement for the near future; however, there is more
optimism for long-term economic growth. The sprawling 1400 acre, $100 million international
equestrian center, Tryon Resort, located on US 74 held its grand opening in June, 2015. When completed
the facility is expected to draw clients and guests from around the world and will stable hundreds of
horses and feature multiple horse rings, a stadium, a full range of accommodations from luxury resorts to
luxury homes and camping facilities as well as other recreational opportunities, including golf and even
retail and dining space. Since Polk County already has one of the lowest unemployment rates in the state
iv
at 5.0%, Rutherford County citizens should have an excellent opportunity for new jobs and the demand
for area retail, dining, accommodations and other equine-related services should grow significantly. In
conjunction with these investments, County tourism is expected to keep growing. The County tourism
industry continues to expand with over 1,170 people employed. The total revenue of $157.59 million, a
4.7% over last year, Rutherford County ranks in the top third of the state in travel impact out of the 100
counties in NC.
ANNUAL OBJECTIVES
In August, 2014, the Rutherford County Board of Education adopted a new, five-year strategic plan for
the school district. The new strategic plan revises the school district's vision statement to read, "All
Rutherford County students will graduate prepared for college and career success." It revises the school
district's mission statement to read, "Rutherford County Schools will prepare all students for lifelong
learning in a global community by partnering with families and communities, providing rigorous
academic and career preparation experiences, and promoting a safe and nurturing school environment."
Against the backdrop of those updated vision and mission statements, the plan establishes unambiguous
performance targets for the school district. By June 30, 2019, Rutherford County Schools will meet or
exceed regional averages in the following indicators of school and student performance:
• Percentage of students achieving Level III or better performance on North Carolina End-of-Grade
Tests of mathematics, reading, and science
• Percentage of students achieving Level III or better performance on North Carolina End-of-
Course Tests of Math I, English II, and Biology
• Percentage of high school juniors meeting or exceeding college readiness benchmarks on the
ACT
• Percentage of Career-Technical Education completers achieving at least Silver level performance
on ACT WorkKeys assessments
• Percentage of graduates passing higher-level secondary mathematics courses
• Average subtest and total SAT scores
• Annual dropout rate
• Cohort graduation rate (four- and five-year cohort models)
Toward that end, the plan articulates three overarching transformation strategies to guide innovation
throughout the school district:
• Engage every student in rigorous 21st century instruction focused on college and career success.
• Deploy a comprehensive, integrated system of support that is responsive to students’ evolving
social, emotional, and developmental needs.
• Ensure all students’ equitable access to safe, modern educational facilities and appropriate
learning resources.
District leaders facilitate the development, monitoring, and coordination of specific, operational work
plans within each of those three transformational strategies.
v
The Rutherford County Board of Education, in conjunction with the Rutherford County Board of
Commissioners, completed work on a long-range facilities and equipment plan during this school year.
Unfortunately no timeline for action on the plan has been established since budget shortfalls and declining
enrollment continue to be problematic. The Boards have pledged to continue to work collaboratively to
appropriately maintain and enhance public education in Rutherford County.
INDEPENDENT AUDIT
The financial statements have been audited by Anderson, Smith & Wike, PLLC, independent certified
public accountants, whose opinion is included in the Financial and Compliance Sections of this report.
The goal of the independent audit was to obtain reasonable assurance that the financial statements of
Rutherford County Schools for the fiscal year ended June 30, 2015 are free of material misstatement. The
independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an
unmodified opinion that the Rutherford County Schools financial statements for the fiscal year ended
June 30, 2015 are fairly presented in conformity with accounting principles generally accepted in the US.
The independent audit of the financial statements of the Rutherford County Schools was part of a broader,
federally and State mandated “Single Audit” designed to meet the special needs of federal and State
grantor agencies. The standards governing Single Audit engagements require the independent auditor to
report not only on the fair presentation of the financial statements, but also on the audited entity’s internal
controls and legal requirements involving the administration of federal and State awards.
FINANCIAL REPORTING AWARDS
The Association of School Business Officials (ASBO) awards Certificates of Excellence (COE) in
financial reporting. This award is made to governmental units which publish a comprehensive annual
financial report that is readable, efficiently organized, and conforms to program standards, as well as
meets accounting principles generally accepted in the United States of America and applicable legal
requirements. The award is valid for a period of one year only. Rutherford County Schools has received
the COE award for the fiscal years ended 1991 through 2014. We believe the accompanying report
conforms to ASBO requirements and will submit it for award consideration again this year.
The NC Department of Public Instruction recognized Rutherford County Schools for Achievement in
Financial Resource Management this past summer. The award is presented annually to districts that
demonstrate effective cash management and use of state funds, accurate and timely financial reporting
and no salary exceptions and position overdrafts as of fiscal year end. Less than half of NC school
districts attain this accomplishment each year.
The NC Treasurer’s Office invites local government entities to share their ideas for innovation and best
practices in the Award for Excellence in Accounting and Financial Management program. The
submission of Rutherford County Schools was chosen to receive this recognition in 2012.
ACKNOWLEDGMENTS
The preparation of this CAFR could not have been accomplished without the efficient and dedicated
services of the staff district-wide, the Finance Department, and our independent audit firm. We would like
to express our appreciation to all of the employees who contributed to the financial results contained
within this report and all who assisted in its compilation. Special thanks to the Finance Department of
Rutherford County for providing the necessary statistical data.
vi
Lastly and appreciatively, we would like to thank the members of the Rutherford County Board of
Education for their dedication and concern in planning and conducting the business and financial
operations of the school system in such a consistent and responsible manner.
Respectfully submitted,
Janet Mason, Ed.D Heidi Faber Kerns
Superintendent Finance Officer
vii
Dr. Janet Mason, Superintendent Charlie Freeman, Director Career Technical Education
Dr. David Sutton, Assistant Superintendent--Curriculum/Instruction Lisa Blanton, Director Exceptional Children
Benny Hendrix, Director Operations/Technology Renee Collins, Director Secondary Education
Dr. Martha Robinson, Director Human Resources Steven Helton, Director Elementary Education
Heidi Kerns, Finance Officer Janice Baynard, Director Federal Programs and Staff Development
Sybil Houser, Administrative Assistant Brian McClung, Director Transportation
Cindy Hogston, Director Accountability and Research Marty Hopper, Director Maintenance
Justin Conner, NCWISE Lori Moore, Director Child Nutrition
Administrative Personnel
Brandon Gosey
Carolyn Keever
Ritchie Garland
Chief Operations Officer Finance Officer
Board of Education
Superintendent
Assistant Superintendant
Curriculum/InstructionPrincipals
Jackie Hampton
Human Resources Director
Sherry Bright, Vice-Chair
Barry Gold, Chairman
RUTHERFORD COUNTY BOARD OF EDUCATION
ORGANIZATIONAL CHART
Dr. John Mark Bennett
viii
Association of School Business Officials International
The Certificate of Excellence in Financial Reporting Award
is presented to
Rutherford County Schools
For Its Comprehensive Annual Financial Report (CAFR)
For the Fiscal Year Ended June 30, 2014
The CAFR has been reviewed and met or exceeded
ASBO International’s Certificate of Excellence standards
Mark C. Pepera, MBA, RSBO, SFO John D. Musso, CAE, RSBA
President Executive Director
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FINANCIAL SECTION
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www.asw-cpa.com
Member • American Institute of Certified Public Accountants • North Carolina Association of Certified Public Accountants
Certified Public Accountants
ANDERSON SMITH & WIKE PLLCA S W
INDEPENDENT AUDITORS’ REPORT
To the Chairman and Members of the Rutherford County Board of Education Forest City, North Carolina Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the Rutherford County Board of Education, North Carolina, as of and for the year then ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Rutherford County Board of Education’s basic financial statements listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.
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Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the Rutherford County Board of Education, North Carolina as of June 30, 2015, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the General, the State Public School, the Federal Grants and the Local Special Expense funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis on pages 4 through 10 and the Schedule of the Board’s Proportionate Share of the Net Pension Liability and the Schedule of Board Contributions on pages 50 and 51, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with the auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements of Rutherford County Board of Education, North Carolina. The introductory section, combining and individual nonmajor fund financial statements and schedules, budgetary schedules, other schedules and statistical tables, as well as the accompanying schedule of expenditures of federal and State awards as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and the State Single Audit Implementation Act, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund statements and schedules, budgetary schedules, other schedules and the accompanying schedule of expenditures of federal and State awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual non-major fund financial statements and schedules, budgetary schedules, other schedules, and the schedule of federal and State awards are fairly stated in all material respects in relation to the financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.
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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 15, 2015 on our consideration of Rutherford County Board of Education’s internal control over financial reporting and our tests of its compliance with certain laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide and opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Rutherford County Board of Education’s internal control over financial reporting and compliance.
Gastonia, North Carolina October 15, 2015
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MANAGEMENT'S DISCUSSIONAND ANALYSIS
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RUTHERFORD COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2015 This section of the Rutherford County Board of Education’s financial report represents our discussion and analysis of the financial performance of the Board for the year ended June 30, 2015. This information should be read in conjunction with the audited financial statements included in this report. Financial Highlights • Rutherford County Schools was awarded the Certificate of Excellence in Financial Reporting
(COE) for the 24th consecutive year. • The NC Department of Public Instruction recognized Rutherford County Schools for Achievement
in Financial Resource Management this summer. The award is presented annually to districts who have effective cash management and use of state funds, accurate and timely financial reporting and no salary exceptions and position overdrafts as of fiscal year end. Less than half of NC school districts attain this accomplishment each year.
• Rutherford County Schools was named an Apple Distinguished Program for 2014-2015. The Going Global initiative has placed laptops in the hands of all middle and high school students and teachers. This investment in technology should help guide the District’s delivery of curriculum and allow our students to be on the cutting edge of technologies going into the 21st Century.
• The Board’s total net position decreased by $16,853,478, or 18.0%. Overview of the Financial Statements The audited financial statements of the Rutherford County Board of Education consist of four components. They are as follows: • Independent Auditors’ Report • Management's Discussion and Analysis (required supplementary information) • Basic Financial Statements • Required supplemental section that presents combining and budgetary statements for non-major
governmental funds and budgetary statements for enterprise funds The Basic Financial Statements include two types of statements that present different views of the Board’s finances. The first is the government-wide statements. The government-wide statements are presented on the full accrual basis of accounting and include the statement of net position and the statement of activities. The statement of net position includes all of the Board’s assets and liabilities. Assets and liabilities are classified in the order of relative liquidity for assets and due date for liabilities. This statement provides a summary of the Board's investment in assets and obligations to creditors. Liquidity and financial flexibility can be evaluated using the information contained in this statement. The Statement of Activities summarizes the Board’s revenues and expenses for the current year. A net (expense) revenue format is used to indicate to what extent each function is self-sufficient. The second set of statements included in the basic financial statements is the Fund Financial Statements, which are presented for the Board’s governmental and proprietary funds. These statements present the governmental funds on the modified accrual basis of accounting, measuring the near term inflows and outflows of financial resources and what is available at year-end to spend in the next fiscal year. The proprietary fund is presented on the full accrual basis of accounting. The fund financial statements focus on the Board’s most significant funds. Because a different basis of accounting is used in the government-wide statements, reconciliation from the governmental fund financial statements to the government-wide statements is required. The government-wide
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RUTHERFORD COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2015 statements provide information about the Board as an economic unit while the fund financial statements provides information on the financial resources of each of the Board’s major funds. Government-wide Statements The government-wide statements report information about the Board as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the Board’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid. The two government-wide statements report the Board’s net position and how they have changed. Net position – the difference between the Board’s assets and liabilities – are one way to measure the unit’s financial health or position.
• Over time, increases or decreases in the Board’s net position are an indicator of whether its financial position is improving or deteriorating.
• To assess the Board’s overall health, you need to consider additional non-financial factors such as changes in the County’s property tax base and the condition of its school buildings and other physical assets.
The unit’s activities are divided into two categories in the government-wide statements:
• Governmental activities: Most of the Board’s basic services are included here, such as regular and special education, transportation, and administration. County funding and state and federal aid finance most of these activities.
• Business-type activities: The Board charges fees to help it cover the costs of certain services it provides. School food service is included here.
The government-wide statements are shown as Exhibits 1 and 2 of this report. Fund Financial Statements The fund financial statements provide more detailed information about the Board’s funds, focusing on its most significant or “major” funds – not the unit as a whole. Funds are accounting devices the Board uses to keep track of specific sources of funding and spending on particular programs.
• Some funds are required by State law, such as the State Public School Fund. • The Board has established other funds to control and manage money for a particular purpose
or to show that it is properly using certain revenues, such as in the Federal Grants fund. Rutherford County Board of Education has three types of funds: Governmental funds: Most of the Board’s basic services are included in the governmental funds, which generally focus on two things – how cash and other assets can readily be converted to cash flow in and out, and the balances left at year-end that are available for spending. As a result of this focus, the governmental funds statements provide a detailed short-term view that helps the reader determine whether there are more or fewer financial resources that can be spent in the coming year to finance the Board’s programs. Because this information does not encompass the additional long-term focus of the government-wide statements, additional information at the bottom of the governmental funds statements, in the form of a reconciliation, explains the relationship (or differences) between the government-wide and the fund financial statements.
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RUTHERFORD COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2015 The Board has several governmental funds: the General Fund, the State Public School Fund, the Federal Grants Fund, the Local Special Expense Fund, the Individual Schools Fund, and the Capital Outlay Fund. The governmental fund statements are shown as Exhibits 3, 4, 5, 6, 7 and 8 of this report. Proprietary fund: Services for which the Board charges a fee are generally reported in the proprietary funds. The proprietary fund statements are reported on the same full accrual basis of accounting as the government-wide statements. Rutherford County Board of Education has one proprietary fund – an enterprise fund – the School Food Service Fund. The proprietary fund statements are shown as Exhibits 9, 10, and 11 of this report. Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Rutherford County Board of Education, North Carolina has fifteen private purpose trust funds and one agency fund. The fiduciary funds are shown as Exhibits 12 and 13 of this report. Financial Analysis of the Schools as a Whole Net position is an indicator of the fiscal health of the Board. Assets exceeded liabilities by $78,626,329 as of June 30, 2015. The largest component of net position is investment in capital assets of $90,913,387. It comprises 115% of the total net position. Following is a summary of the Statement of Net Position:
Note that net position decreased during the year. The decrease in net position (18.0%) was due largely to the restatement for the pension liability. Unrestricted net position decreased in the business-type activities primarily because of the restatement for the pension liability. Also note that the Board carries capital assets for which Rutherford County carries the offsetting debt.
6/30/2015 6/30/2014 6/30/2015 6/30/2014 6/30/2015 6/30/2014
Current assets 7,846,764$ 7,762,990$ 274,906$ 351,207$ 8,121,670$ 8,114,197$
Capital assets 92,503,561 97,167,303 205,380 187,794 92,708,941 97,355,097
Total assets 100,350,325 104,930,293 480,286 539,001 100,830,611 105,469,294
Deferred outflows of resources 4,047,579 - 140,563 - 4,188,142 -
Current liabilities 4,690,892 5,422,495 82,926 101,648 4,773,818 5,524,143 Long-term liabilities 6,504,708 4,454,733 131,721 10,611 6,636,429 4,465,344
Total liabilities 11,195,600 9,877,228 214,647 112,259 11,410,247 9,989,487
Deferred inflows of resources 14,479,345 - 502,832 - 14,982,177 - Net investment in capital assets 90,708,007 93,617,322 205,380 187,794 90,913,387 93,805,116 Restricted net position 6,980,158 5,859,679 - - 6,980,158 5,859,679
Unrestricted net position (18,965,206) (4,423,936) (302,010) 238,948 (19,267,216) (4,184,988) Total net position 78,722,959$ 95,053,065$ (96,630)$ 426,742$ 78,626,329$ 95,479,807$
Total Primary GovernmentGovernmental Activities Business-type Activities
Table 1Condensed Statement of Net Position
as of June 30, 2015 and 2014
Page 7
RUTHERFORD COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2015 Financial Analysis of the Schools as a Whole (Continued) The following table shows the revenues and expenses for the Board for the current fiscal year.
Table 2 Condensed Statement of Revenues, Expenses, and Changes in Net Position
For the year ended June 30, 2015 and 2014 Governmental Activities Business-type Activities Total Primary Government
6/30/2015 6/30/2014 6/30/2015 6/30/2014 6/30/2015 6/30/2014 Revenues: Program revenues: Charges for services $ 531,988 $ 191,171 $ 584,217 $ 1,026,559 $ 1,116,205 $ 1,217,730 Operating grants and contributions 56,155,545 56,671,409 3,892,215 3,904,146 60,082,760 60,575,555 Capital grants and contributions -- -- 63,042 -- 63,042 -- General revenues: Other revenues 20,886,872 18,413,158 -- -- 20,851,872 18,413,158 Total revenues 77,574,405 75,275,738 4,539,474 4,930,705 82,113,879 80,206,443 Expenses: Governmental activities: Instructional programs 58,660,264 58,711,692 -- -- 58,660,264 58,711,692 Supporting services 14,598,257 15,016,671 -- -- 14,598,257 15,016,671 Community services 37,858 30,876 -- -- 37,858 30,876 Non-programmed charges 1,654,775 1,517,460 -- -- 1,654,775 1,517,460 Unallocated depreciation 2,053,779 2,033,752 -- -- 2,053,779 2,033,752 Business-type activities: Food service -- -- 4,522,528 4,851,580 4,522,528 4,851,580 Total expenses 77,004,933 77,310,451 4,522,528 4,851,580 81,527,461 82,162,031 Transfer in (out) (45,000) (57,343) 45,000 57,343 -- -- Increase (decrease) in net position 524,472 (2,092,056) 61,946 136,468 586,418 (1,955,588) Beginning net position, previously reported 95,053,065 97,145,121 426,742 290,274 95,479,807 97,435,395 Beginning net position, restated 78,198,487 -- (158,576) -- 78,039,911 -- Ending net position $ 78,722,959 $ 95,053,065 $ (96,630) $ 426,742 $ 78,626,329 $ 95,479,807
Page 8
RUTHERFORD COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2015 Financial Analysis of the Board’s Funds Total governmental activities generated revenues of $77.5 million while expenses in this category totaled $77.0 million for the year ended June 30, 2015. Comparatively, revenues were $75.3 million and expenses totaled $77.3 million for the year ended June 30, 2014. After transfers to the business-type activities, the decrease in net position stands at $16.9 million at June 30, 2015, compared to $2.1 million in 2014. Instructional expenses comprised 76% of total governmental-type expenses while supporting services made up 19% of those expenses. County funding comprised 17% of total governmental revenue while unrestricted State funding added another 1% for 2015. In 2014, county funding was 18% and unrestricted State funding added 1%. Much of the remaining 82% of total governmental revenue for 2015 consists of restricted State and federal money. This revenue represented 81% of total revenue in 2014. Business-type activities generated revenue of $4.5 million and had expenses of $4.5 million. Net position decreased in the business-type activities by $523,372, after transfers in from the governmental activities of $45,000. Governmental Funds: The focus of Rutherford County Board of Education’s governmental funds is to provide information on near-term inflows, outflows, and balances of usable resources. Such information is useful in assessing the Board’s financing requirements. The Board’s governmental funds reported a combined fund balance of $7,331,426, a $682,931 increase over last year. All of the Board’s governmental funds had revenues that exceeded expenditures and other financing uses, except for the General and Individual School funds thus the increase in total fund balance. Proprietary Fund: Net position decreased by $523,372, after a transfer in from the governmental activities of $45,000. This was due primarily to the restatement for the pension liability. Categorization of Expenditures for Governmental Funds The expenditures for instructional, supporting, and other services were $58,403,015, $14,446,182, and $4,042,710 for the year ended June 30, 2015, respectively. These expenditures are presented on the modified accrual basis of accounting. General Fund Budgetary Highlights Over the course of the year, the Board revised the general fund expenditures several times to account for changes in actual spending as compared with projections and actual proceeds from other sources of funds. The only positive revenue variance was due to collections of fines and forfeitures in excess of projections. The budget for this line item is conservative since those collections fluctuate each month, dependent upon financial collections through the court system, which are beyond the control of the Board. The final funds from this revenue source are not received until after the close of the school year. The board approves the general fund budget only at the broad categorical level so all spending fell well within the budget. Support services are less predictable than those for instructional services and therefore require more significant budget adjustments throughout the year.
Page 9
RUTHERFORD COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2015 Capital Assets Capital assets decreased by $4,646,156 (or 5.0%) from the previous year. This was due to depreciation exceeding additions. The following is a summary of the capital assets, net of depreciation at year-end. Additional information regarding the Board’s debt can be found in the notes to the financial statements on page 36 of the report.
Table 3Summary of Capital Assets
as of June 30, 2015 and 2014
Governmental Activities Business-type Activities Total Primary Government
6/30/2015 6/30/2014 6/30/2015 6/30/2014 6/30/2015 6/30/2014
Land 3,543,827$ 3,543,827$ -$ -$ 3,543,827$ 3,543,827$ Building and improvements 84,741,514 87,174,872 - - 84,741,514 87,174,872 Equipment and furniture 2,834,791 4,659,710 205,380 187,794 3,040,171 4,847,504 Vehicles 1,383,429 1,788,894 - - 1,383,429 1,788,894 Construction in process - - - - - - Total 92,503,561$ 97,167,303$ 205,380$ 187,794$ 92,708,941$ 97,355,097$
Debt Outstanding The Board is limited by North Carolina General Statutes with regards to the types of debt it can issue and for what purposes that debt can be used. The County holds virtually all debt issued for school capital construction. The long-term obligations shown on the statement of net position represent the long-term liability for compensated absences and an installment financing agreement. Additional information regarding the Board’s debt can be found in the notes to the financial statements on page 42 of the report. Economic Factors County funding is a major source of income for the Board; therefore the County’s economic outlook directly affects that of the Board of Education. The following factors have affected the economic outlook of Rutherford County:
• Unfortunately, the economy has still not completely rebounded in North Carolina or especially Rutherford County. Recovery has been slow and in addition to the tax reform passed in 2013, additional revenue limiting legislation is being proposed in the 2015 biennial budget. Teacher and school administrator salaries are expected to increase but most other employees may only see a modest one-time bonus. Locally there has been some retail growth attributed to development of the Tryon Equestrian Center which was dedicated last fall. This multi-million dollar facility opened on the border of Rutherford and Polk counties and is expanding tourism in our area which is hoped to bring additional investment and positive exposure to the community. Facebook also announced construction of a third building in their data center here which will represent an investment of over $200 million and bring over 100 jobs to the County.
Page 10
RUTHERFORD COUNTY BOARD OF EDUCATION MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2015 Economic Factors (Continued) The Board's budget decisions are complicated due to continued shrinking enrollment and competition from charter schools which decreases available funding. Rutherford County has one of the top ten highest concentrations of charter school students in the state. County funding is a major source of revenue, so the economic outlook for the County is critical to the financial planning of the school district. The state unemployment rate started ticking back up this spring and is currently 5.8%, after hitting a low of 5.3%, so it has hovered around the national average. Rutherford County's unemployment rate improved but is still well over the state and national average at 8.4% and is one of the top 15 in NC. Reports indicate that although these statistics do point toward an improving economy, the shrinking work force and underemployment of many workers has to be taken into consideration as well. Due to the high poverty in our district, the decision was made to continue the Community Eligibility Program (CEP) in child nutrition for a second year even though first year financial results and participation were disappointing. This program allows all of our students to eat a healthy breakfast and lunch each day for free. Multiple grants have been received and different meal delivery patterns and changes to the menu are being tested in an attempt to improve results. Studies confirm that good nutrition positively impacts the lives and academic performance of our children so we are making every effort to make the program successful. Rutherford County Schools and the Rutherford County government worked on long-range capital plans last year but have not yet identified funding sources to move forward. Total funding from all sources has still not rebounded to pre-recession levels. Requests for Information This report is intended to provide a summary of the financial condition of Rutherford County Board of Education, North Carolina. Questions or requests for additional information should be addressed to:
Heidi Kerns, CMA, Finance Officer Rutherford County Board of Education
382 West Main Street Forest City, North Carolina 28043
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BASIC FINANCIAL STATEMENTS
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June 30, 2015Exhibit 1
Governmental Activities
Business-type Activities Total
Rutherford County Head
StartASSETSCash and cash equivalents 7,123,865$ 43,333$ 7,167,198$ -$ Due from other governments 411,480 - 411,480 - Receivables (net) 311,419 163,472 474,891 111,460 Internal balances - - - - Inventories - 68,101 68,101 - Capital assets
Land and construction in progress 3,543,827 - 3,543,827 - Other capital assets, net of depreciation 88,959,734 205,380 89,165,114 -
Total capital assets 92,503,561 205,380 92,708,941 -
Total assets 100,350,325 480,286 100,830,611 111,460
DEFERRED OUTFLOWS OF RESCOURCES 4,047,579 140,563 4,188,142 -
LIABILITIESAccounts payable and accrued expenses 444,979 - 444,979 104,260 Accrued salaries and wages payable - - - - Unearned revenue 70,359 12,323 82,682 7,200 Long-term liabilities:
Net pension liabiity 3,792,954 131,721 3,924,675 Due within one year 4,175,554 70,603 4,246,157 - Due in more than one year 2,711,754 - 2,711,754 -
Total liabilities 11,195,600 214,647 11,410,247 111,460
DEFERRED INFLOWS OF RESCOURCES 14,479,345 502,832 14,982,177 -
NET POSITIONNet investment in capital assets 90,708,007 205,380 90,913,387 - Restricted for:
Stabilization by State Statue 112,250 - 112,250 - School Capital Outlay 528,290 - 528,290 - Individual School Funds 735,398 - 735,398 - Local Special Expense 5,604,220 - 5,604,220 -
Unrestricted (18,965,206) (302,010) (19,267,216) - Total net position 78,722,959$ (96,630)$ 78,626,329$ -$
The accompanying notes are an integral part of the financial statements. Page 11
RUTHERFORD COUNTY BOARD OF EDUCATIONSTATEMENT OF NET POSITION
Primary GovernmentComponent
Unit
STATEMENT OF ACTIVITIESFor the Year Ended June 30, 2015
Exhibit 2
Functions/Programs ExpensesCharges for
Services
Operating Grants and
Contributions
Capital Grants and
ContributionsPrimary government:Governmental Activities:
Instructional services:Regular instructional 32,201,869$ 531,988$ 28,475,562$ -$ Special populations 7,583,046 - 7,425,798 - Alternative programs 5,752,869 - 5,719,833 - School leadership 4,073,547 - 2,387,565 - Co-curricular 3,005,722 - 46,724 - School-based support 6,043,211 - 4,206,088 -
System-wide support services:Support and development 548,477 - 250,549 - Special populations support and development 125,012 - 73,747 - Alternative programs and services support and development 179,601 - 177,657 - Technology support 1,024,394 - 890,702 - Operational support 10,532,364 - 5,557,497 - Financial and human resource 1,032,872 - 519,503 - Accountability 136,780 - - - System-wide pupil support 328,509 - 91,938 - Policy, leadership and public relations 690,248 - 141,094 -
Ancillary Services 37,858 - 20,074 - Non-programmed charges 1,554,255 - 171,214 - Interest on long-term debt 100,520 - - - Unallocated depreciation expense** 2,053,779 - - -
Total governmental activities 77,004,933 531,988 56,155,545 -
Business-type activities:School food service 4,888,477 584,217 4,258,164 63,042
Total business-type activities 4,888,477 584,217 4,258,164 63,042
Total primary government 81,893,410$ 1,116,205$ 60,413,709$ 63,042$
Component Unit:Head Start 2,316,066$ -$ 2,316,066$ -$
General revenues:Unrestricted county appropriations - operatingUnrestricted county appropriations - capitalUnrestricted State appropriations - operatingUnrestricted State appropriations - capitalUnrestricted federal appropriations - operatingInvestment earnings, unrestrictedMiscellaneous, unrestricted
TransfersTotal general revenues and transfersChange in net position
Net position-beginning previously reportedRestatementNet position-beginning restatedNet position-ending
** This amount excludes the depreciation that is included in the direct expenses of the various programs
The accompanying notes are an integral part of the financial statements. Page 12
RUTHERFORD COUNTY BOARD OF EDUCATION
Program Revenues
Component Unit
Governmental Activities
Business-type Activities Total
Rutherford County Head
Start
(3,194,319)$ -$ (3,194,319)$ -$ (157,248) - (157,248) - (33,036) - (33,036) -
(1,685,982) - (1,685,982) - (2,958,998) - (2,958,998) - (1,837,123) - (1,837,123) -
(297,928) - (297,928) - (51,265) - (51,265) -
(1,944) - (1,944) - (133,692) - (133,692) -
(4,974,867) - (4,974,867) - (513,369) - (513,369) - (136,780) - (136,780) - (236,571) - (236,571) - (549,154) - (549,154) - (17,784) - (17,784) -
(1,383,041) - (1,383,041) - (100,520) - (100,520) -
(2,053,779) - (2,053,779) -
(20,317,400) - (20,317,400) -
- 16,946 16,946 - - 16,946 16,946 -
(20,317,400) 16,946 (20,300,454) -
-$
12,669,713 - 12,669,713 - - - - - - - - - - - - - - - - - - - - -
8,217,159 - 8,217,159 - (45,000) 45,000 - -
20,841,872 45,000 20,886,872 - 524,472 61,946 586,418 -
95,053,065 426,742 95,479,807 - (16,854,578) (585,318) (17,439,896) 78,198,487 (158,576) 78,039,911 78,722,959$ (96,630)$ 78,626,329$ -$
Primary GovernmentNet (Expense) Revenue and Changes in Net Position
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FUND FINANCIAL STATEMENTS
June 30, 2015Exhibit 3
GeneralState Public
SchoolFederal Grants
FundLocal Special
ExpenseASSETSCash and cash equivalents 788,620$ -$ -$ 5,423,658$ Receivables (net) 38,221 - - 271,218 Due from other funds 60,000 - - - Due from other governments - - - -
Total assets 886,841$ -$ -$ 5,694,876$
LIABILITIES AND FUND BALANCESLiabilities:
Accounts payable and accrued liabilities 423,323$ -$ -$ 21,656$ Due to other funds - - - 60,000 Accrued salaries and wages payable - - - - Unearned revenue - - - 9,000
Total liabilities 423,323 - - 90,656
Fund balances:Restricted:
Stabilization by State Statue 112,250 - - - School Capital Outlay - - - - Individual School Funds - - - - Local Special Expense - - - 5,604,220
Assigned:Subsequent year's expenditures 300,000 - - - County debt - - - -
Unassigned: 51,268 - - -
Total fund balances 463,518 - - 5,604,220
Total liabilities and fund balances 886,841$ -$ -$ 5,694,876$
Deferred outflows of resources related to pensions
Net position of governmental activities
The accompanying notes are an integral part of the financial statements. Page 13
Net pension liabilityDeferred inflows of resources related to pensions
Some liabilities, including bonds payable and accrued interest, are not dueand payable in the current period and therefore are not reported in thefunds.
RUTHERFORD COUNTY BOARD OF EDUCATIONBALANCE SHEET - GOVERNMENTAL FUNDS
Amounts reported for governmental activities in the statement of netposition (Exhibit 1) are different because:Capital assets used in governmental activities are not financial resourcesand therefore are not reported in the funds.
Major Funds
Individual Schools Capital Outlay
Total Governmental
Funds
735,398$ 176,189$ 7,123,865$ - 1,980 311,419 - - 60,000 - 411,480 411,480
735,398$ 589,649$ 7,906,764$
-$ -$ 444,979$ - - 60,000 - - - - 61,359 70,359 - 61,359 575,338
- - 112,250 - 528,290 528,290
735,398 - 735,398 - - 5,604,220
- - 300,000 - - - - - 51,268
735,398 528,290 7,331,426
735,398$ 589,649$
92,503,561 4,047,579
(6,887,308) (3,792,954)
(14,479,345)
78,722,959$
Non-major Funds
For the Year Ended June 30, 2015 , Exhibit 4
Major Funds
GeneralState Public
SchoolFederal Grants
FundLocal Special
ExpenseREVENUESState of North Carolina -$ 50,989,465$ -$ 1,561,293$ Rutherford County 12,669,713 - - - U.S. Government - - 6,422,144 151,692 Other 222,076 - - 2,361,504
Total revenues 12,891,789 50,989,465 6,422,144 4,074,489
EXPENDITURESCurrent:
Instructional services:Regular instructional 1,188,775 28,997,561 443,497 464,445 Special populations 169,674 5,819,156 1,876,338 372 Alternative programs 41,517 1,018,759 3,354,369 1,531,032 School leadership 1,694,278 2,407,287 79,105 81,480 Co-curricular 400,728 - - 78,471 School-based support 1,843,863 3,711,107 181,156 460,314
System-wide support services: - Support and development 299,480 69,498 75,032 139,741 Special populations support and 53,213 101,007 15,084 - Alternative programs and services support and development 2,607 - 164,147 27,916 Technology support 134,313 827,048 - 77,145 Operational support 4,492,757 5,596,751 30,826 84,882 Financial and human resource 514,830 533,411 17,598 240 Accountability 5,761 135,020 - - System-wide pupil support 239,042 70,678 - 21,260 Policy, leadership and public relations 550,326 166,569 - -
Ancillary Services 17,935 - 13,778 9,583 Non-programmed charges 1,383,041 - 171,214 -
Debt service:Principal payments 306,007 1,408,040 - - Interest and other charges 17,947 82,573 - -
Capital outlay:Real property and buildings - - - - Furniture and equipment - - - - Buses and motor vehicles - - - -
Total expenditures 13,356,094 50,944,465 6,422,144 2,976,881
Revenues over expenditures (464,305) 45,000 - 1,097,608
OTHER FINANCING SOURCES (USES)Installment purchase obligations issued - - - - Transfers from other funds - (45,000) - -
Total other financing sources (uses) - (45,000) - - Net change in fund balance (464,305) - - 1,097,608
Fund balances-beginning 927,823 - - 4,506,612 Fund balances-ending 463,518$ -$ -$ 5,604,220$
The accompanying notes are an integral part of the financial statements. Page 14
RUTHERFORD COUNTY BOARD OF EDUCATIONSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Individual Schools Capital Outlay
Total Governmental
Funds
-$ 40,380$ 52,591,138$ - 626,709 13,296,422 - - 6,573,836
2,540,644 34,218 5,158,442 2,540,644 701,307 77,619,838
- - 31,094,278 - - 7,865,540 - - 5,945,677 - - 4,262,150
2,559,731 - 3,038,930 - - 6,196,440
- - - 583,751 - - 169,304
- - 194,670 - - 1,038,506 - - 10,205,216 - - 1,066,079 - - 140,781 - - 330,980 - - 716,895 - - 41,296 - - 1,554,255
- - 40,380 1,754,427 - - 100,520
- - 33,475 33,475 - 474,965 474,965 - 83,772 83,772
2,559,731 632,592 76,891,907
(19,087) 68,715 727,931
- - - - - (45,000) - - (45,000)
(19,087) 68,715 682,931 754,485 459,575 6,648,495 735,398$ 528,290$ 7,331,426$
Non-major Funds
For the Year Ended June 30, 2015 Exhibit 4
(Continued)
Net changes in fund balances - total governmental funds 682,931$
(4,618,309)
4,047,579
1,754,427
(1,417,721)(45,433)
Compensated absences 120,998
Total changes in net position of governmental activities 524,472$
The accompanying notes are an integral part of the financial statements. Page 15
Remaining net book value on disposed capital assets
Some expenses reported in the statement of activities do not require the useof current financial resources and, therefore, are not reported asexpenditures in governmental funds.
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
RUTHERFORD COUNTY BOARD OF EDUCATION
Amounts reported for governmental activities in the statement of activities are differentbecause:
Governmental funds report capital outlays as expenditures. However, in theStatement of Activities the cost of those assets is allocated over theirestimated useful lives and reported as depreciation expense. This is theamount by which depreciation exceeded capital outlays in the currentperiod.
The issuance of long-term debt provides current financial resources togovernmental funds, while the repayment of the principal of long-term debtconsumes the current financial resources of governmental funds. Neithertransaction has any effect on net position. Also, governmental funds reportthe effect of issuance costs, premiums, discounts and similar items whendebt is first issued, whereas these amounts are deferred and amortized inthe statement of activities. This amount is the net effect of these differencesin the treatment of long-term debt and related items.
Contribution to the pension plan in the current fiscal year are not included onthe Statement of Activities
Pension liability
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
For the Year Ended June 30, 2015Exhibit 5
Original Final Actual Amounts
Variance with Final Budget -
Positive (Negative)
Revenues:State of North Carolina -$ -$ -$ -$ Rutherford County 12,669,713 12,669,713 12,669,713 - U.S. Government - - - - Other 210,000 210,000 222,076 12,076 Total revenues 12,879,713 12,879,713 12,891,789 12,076
Expenditures:Current:Instructional sevices:
Regular 1,628,520 1,584,246 1,188,775 395,471 Special populations - 40,000 169,674 (129,674) Alternative programs - - 41,517 (41,517) School leadership 2,191,944 1,931,764 1,694,278 237,486 Co-curricular 404,000 389,500 400,728 (11,228) School-based support 1,147,793 1,554,113 1,843,863 (289,750)
Support services:Support and development 1,335,589 998,500 299,480 699,020 Special population support and development - - 53,213 (53,213) Alternative programs and services support and development - - 2,607 (2,607) Technology support - 122,000 134,313 (12,313) Operational support 4,931,867 4,443,820 4,492,757 (48,937) Financial and human resource 600,000 514,416 514,830 (414) Accountability - - 5,761 (5,761) System-wide pupil support - 64,200 239,042 (174,842) Policy, leadership, and public relations - 255,200 550,326 (295,126)
Ancillary services - 18,000 17,935 65 Non-programmed charges 1,390,000 1,390,000 1,383,041 6,959
Debt service:Principal payments - 306,007 306,007 - Interest payments - 17,947 17,947 -
Total expenditures 13,629,713 13,629,713 13,356,094 273,619
Revenues over (under) expenditures (750,000) (750,000) (464,305) 285,695
Other financing uses:Capital lease obligation issued - - - - Transfers from other funds - - - -
(750,000) (750,000) (464,305) 285,695
Appropriated fund balance 750,000 - - -
Revenue and appropriated fund balance over expenditures and other uses -$ (750,000)$ (464,305) 285,695$
Fund balances, beginning of year 927,823 Fund balances, end of year 463,518$
The accompanying notes are an integral part of the financial statements. Page 16
Revenues over (under) expenditures and other uses
RUTHERFORD COUNTY BOARD OF EDUCATION
General Fund
BUDGET AND ACTUAL - GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
For the Year Ended June 30, 2015
Exhibit 6
State Public School Fund
Original Final Actual Amounts
Variance with Final Budget -
Positive (Negative)
Revenues:State of North Carolina 50,932,223$ 51,514,009$ 50,989,465$ (524,544)$ Rutherford County - - - - U.S. Government - - - - Other - - - -
Total revenues 50,932,223 51,514,009 50,989,465 (524,544)
Expenditures:Current:
Instructional sevices:Regular 32,224,429 30,616,413 28,997,561 1,618,852 Special populations 5,234,927 5,273,032 5,819,156 (546,124) Alternative programs 1,178,226 1,133,703 1,018,759 114,944 School leadership 2,122,417 2,128,238 2,407,287 (279,049) Co-curricular - - - - School-based support 3,105,151 3,205,108 3,711,107 (505,999)
Support services:Support and development 23,061 25,973 69,498 (43,525) Special population support and development 900 900 101,007 (100,107) Alternative programs and services support and development - - - - Technology support 876,224 915,920 827,048 88,872 Operational support 5,240,144 5,751,168 5,596,751 154,417 Financial and human resource 852,373 892,373 533,411 358,962 Accountability - 5,091 135,020 (129,929) System-wide pupil support - - 70,678 (70,678) Policy, leadership, and public relations - - 166,569 (166,569)
Ancillary services - - - - Non-programmed charges - - - -
Debt service:Principal payments - 1,408,040 1,408,040 - Interest payments - 82,573 82,573 -
Total expenditures 50,857,852 51,438,532 50,944,465 494,067
Revenues over (under) expenditures - 75,477 45,000 (30,477)
Other financing uses:Capital lease obligation issued - - - - Transfers from other funds - (75,477) (45,000) 30,477
Total other financing uses - (75,477) (45,000) 30,477
- - - -
Appropriated fund balance - - - -
Revenue and appropriated fund balance over expenditures and other uses -$ -$ - -$
Fund balances, beginning of year - Increase in reserve for inventories - Fund balances, end of year -$
The accompanying notes are an integral part of the financial statements. Page 17
RUTHERFORD COUNTY BOARD OF EDUCATION
BUDGET AND ACTUAL - STATE PUBLIC SCHOOL FUND
Revenues over (under) expenditures and other uses
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
For the Year Ended June 30, 2015
Exhibit 7
Original Final Actual Amounts
Variance with Final Budget -
Positive (Negative)
Revenues:State of North Carolina -$ -$ -$ -$ Rutherford County - - - - U.S. Government - 8,160,632 6,422,144 1,738,488 Other 6,289,671 - - -
Total revenues 6,289,671 8,160,632 6,422,144 1,738,488
Expenditures:Current:
Instructional sevices:Regular 453,291 562,373 443,497 118,876 Special populations 1,889,141 2,667,782 1,876,338 791,444 Alternative programs 3,059,879 3,514,308 3,354,369 159,939 School leadership - 79,490 79,105 385 Co-curricular - - - - School-based support 56,578 179,600 181,156 (1,556)
Support services: - Support and development 186,088 78,701 75,032 3,669 Special population support and development - 55,411 15,084 40,327 Alternative programs and services support and development 179,880 200,460 164,147 36,313 Technology support - 210,128 - 210,128 Operational support 18,616 57,500 30,826 26,674 Financial and human resource 10,315 11,426 17,598 (6,172) Accountability - - - - System-wide pupil support - - - - Policy, leadership, and public relations - - - -
Ancillary services - 13,778 13,778 - Non-programmed charges 435,883 529,675 171,214 358,461
Debt service:Principal paymentsInterest payments
Total expenditures 6,289,671 8,160,632 6,422,144 1,738,488
Revenues over (under) expenditures - - - -
Other financing uses:Capital lease obligation issuedTransfers from other funds - - - -
Total other financing uses
- - - -
Appropriated fund balance - - - -
Revenue and appropriated fund balance over expenditures and other uses -$ -$ - -$
Fund balances, beginning of year - Increase in reserve for inventoriesFund balances, end of year -$
The accompanying notes are an integral part of the financial statements. Page 18
RUTHERFORD COUNTY BOARD OF EDUCATION
BUDGET AND ACTUAL - FEDERAL GRANTS FUND
Federal Grants Fund
Revenues over (under) expenditures and other uses
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
For the Year Ended June 30, 2015
Exhibit 8
Original Final Actual Amounts
Variance with Final Budget -
Positive (Negative)
Revenues:State of North Carolina 2,004,676$ 2,073,554$ 1,561,293$ 512,261$ Rutherford County - - - - U.S. Government 580,000 216,500 151,692 64,808 Other 779,246 2,589,402 2,361,504 227,898
Total revenues 3,363,922 4,879,456 4,074,489 804,967
Expenditures:Current:
Instructional sevices:Regular 822,346 1,426,346 464,445 961,901 Special populations - - 372 (372) Alternative programs 1,631,303 1,814,698 1,531,032 283,666 School leadership 121,000 121,000 81,480 39,520 Co-curricular 110,000 110,000 78,471 31,529 School-based support 524,681 861,140 460,314 400,826
Support services: - Support and development 150,000 157,300 139,741 17,559 Special population support and development - - - - Alternative programs and services support and development 28,775 27,916 27,916 - Technology support - 75,000 77,145 (2,145) Operational support 296,230 591,546 84,882 506,664 Financial and human resource - 200 240 (40) Accountability - - - - System-wide pupil support - - 21,260 (21,260) Policy, leadership, and public relations - - - -
Ancillary services 6,777 11,500 9,583 1,917 Non-programmed charges 274,051 284,051 - 284,051
Debt service:Principal payments - - - - Interest payments - - - -
Total expenditures 3,965,163 5,480,697 2,976,881 2,503,816
Revenues over (under) expenditures (601,241) (601,241) 1,097,608 1,698,849
Other financing uses:Capital lease obligation issuedTransfers from other funds - - - -
Total other financing uses
(601,241) (601,241) 1,097,608 1,698,849
Appropriated fund balance 601,241 601,241 - (601,241)
Revenue and appropriated fund balance over expenditures and other uses -$ -$ 1,097,608 1,097,608$
Fund balances, beginning of year 4,506,612 Increase in reserve for inventoriesFund balances, end of year 5,604,220$
The accompanying notes are an integral part of the financial statements. Page 19
Revenues over (under) expenditures and other uses
RUTHERFORD COUNTY BOARD OF EDUCATION
BUDGET AND ACTUAL - LOCAL SPECIAL EXPENSE
Local Special Expense
June 30, 2015 , Exhibit 9
Major FundSchool Food
ServiceASSETSCurrent assets:
Cash and cash equivalents 43,333$ Receivables (net) 163,472 Inventories 68,101
Total current assets 274,906
Noncurrent assets:Capital assets, net 205,380
Total assets 480,286
DEFERRED OUTFLOWS OF RESOURCES 140,563
LIABILITIESCurrent liabilities:
Accounts payable and accrued expenses - Compensated Absences 70,603 Due to other funds - Unearned revenue 12,323
Total current liabilities 82,926
Noncurrent liabilities:Pension liability 131,721 Compensated absences -
Total noncurrent liabilities 131,721
Total liabilities 214,647
DEFERRED INFLOWS OF RESOURCES 502,832
NET POSITIONNet Investment in capital assets 205,380 Unrestricted (302,010)
Total net position (96,630)$
The accompanying notes are an integral part of the financial statements. Page 20
STATEMENT OF NET POSITION - PROPRIETARY FUNDSRUTHERFORD COUNTY BOARD OF EDUCATION
For the Year Ended June 30, 2015Exhibit 10
Major FundSchool Food
ServiceOPERATING REVENUESFood sales 584,217$
Total operating revenues 584,217
OPERATING EXPENSES
Food costs 1,819,020 Salaries and benefits 2,430,640 Pension expense 49,235 Indirect costs 365,949 Travel 15,883 Contracted services 1,078 Materials and supplies 136,593 Repairs and maintenance 15,708 Depreciation 45,456 Other 8,915 Total operating expenses 4,888,477
Operating loss (4,304,260)
NONOPERATING REVENUES Federal reimbursements 3,622,588 Federal commodities 269,627 Indirect costs not paid 365,949 Miscellaneous -
Total nonoperating revenues 4,258,164
Income (loss) before transfers (46,096)
Transfers from other funds 45,000 Capital contributions 63,042
Change in net position 61,946
Total net position - beginning 426,742 Restatement (585,318) Total net position - beginning, restated (158,576)
Total net position - ending (96,630)$
The accompanying notes are an integral part of the financial statements. Page 21
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION - PROPRIETARY FUNDS
RUTHERFORD COUNTY BOARD OF EDUCATION
For the Year Ended June 30, 2015Exhibit 11
Major FundSchool Food
ServiceCASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 557,385$ Cash paid for goods and services (1,689,719) Cash paid to employees for services (2,583,211) Other operating revenues -
Net cash used by operating activities (3,715,545)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Federal reimbursements 3,622,588 Miscellaneous - Decrease in due to other funds -
Net cash provided by noncapital financing activities 3,622,588
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets -
Net decrease in cash and cash equivalents (92,957)
Balances-beginning of the year 136,290
Balances-end of the year 43,333$
The accompanying notes are an integral part of the financial statements. Page 22
RUTHERFORD COUNTY BOARD OF EDUCATIONSTATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
For the Year Ended June 30, 2015 Exhibit 11
(Continued)
Major FundSchool Food
Service
Reconciliation of operating loss to net cash used by operating activities
Operating loss (4,304,260)$ Adjustments to reconcile operating loss to net cash used by operating activities:
Depreciation 45,456 Pension expense 49,235 Donated commodities consumed 269,627 Salaries paid by special revenue fund 45,000 Indirect costs not paid 365,949
Changes in assets and liabilities:Increase in accounts receivable (9,672) Increase in inventory (6,984) Decrease in accounts payable and accrued liabilities (165) Decrease in unearned revenue (17,160)
Increase in deferred outflows of resources for pension plan contributions in the current fiscal year (140,563) Decrease in compensated absences (12,008)
Total adjustments 588,715
Net cash used by operating activities (3,715,545)$
Noncash investing, capital, and financing activities:
The accompanying notes are an integral part of the financial statements. Page 23
RUTHERFORD COUNTY BOARD OF EDUCATIONSTATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
The State Public School Fund paid salaries and benefits of $45,000 to administrative personnel of the School Food Service Fund during the fiscal year. The payment is reflected by a transfer in and an operating expense on Exhibit 8.
The School Food Service Fund received donated commodities with a value of $269,627 during the fiscal year.The receipt of the commodities is recognized as a nonoperating revenue on Exhibit 10.
Indirect costs of $365,949 that would be due to the General Fund were not paid. These unpaid costs arereflected as a nonoperating revenue and an operating expense on Exhibit 10.
RUTHERFORD COUNTY BOARD OF EDUCATIONSTATEMENT OF FIDUCIARY NET POSITION - FIDUCIARY FUNDSJune 30, 2015
Exhibit 12
PrivatePurpose Agency
Trust Funds Fund
ASSETS
Cash and cash equivalents 116,312$ 57,090$
LIABIITIES
Due to other sources - 57,090$
NET POSITION
Assets held in trust for private purpose 116,312$
The accompanying notes are an integral part of the financial statements. Page 24
RUTHERFORD COUNTY BOARD OF EDUCATIONSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION - FIDUCIARY FUNDSFor the Year Ended June 30, 2015
Exhibit 13
PrivatePurpose
Trust Funds
ADDITIONSContributions and investment earnings 448$
DEDUCTIONSScholarships and grants 8,600
Change in net position (8,152)
NET POSITIONBeginning of year 124,464
End of year 116,312$
The accompanying notes are an integral part of the financial statements. Page 25
NOTES TO THE FINANCIAL STATEMENTS
This page intentionally left blank.
Page 26
RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of Rutherford County Board of Education, North Carolina and its discretely presented component unit conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant accounting policies: Reporting Entity The Rutherford County Board of Education (Board) is a Local Education Agency empowered by State law [Chapter 115C of the North Carolina General Statutes] with the responsibility to oversee and control all activities related to public school education in Rutherford County, North Carolina. The Board receives State, local, and federal government funding and must adhere to the legal requirements of each funding entity. The reporting entity is comprised of the primary government and its component unit. Component units are legally separate organizations for which the Board is financially accountable. The Board is financially accountable if the Board appoints a voting majority of the organization’s governing board and (1) the Board is able to significantly influence the programs or services performed or provided by the organization; or (2) the Board is legally entitled to or can otherwise access the organization’s resources; the Board is legally obligated or has assumed responsibility to finance the deficits of, or provide financial support to, the organization; or the Board is obligated for the debt of the organization. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. The Board is a primary government because it is a special purpose government that is legally separate and is fiscally independent of other State or local governments. The Board is not included in any other governmental reporting entity. Basis of Presentation Government-wide Financial Statements: The statement of net position and the statement of activities display information about the Board. These statements include the financial activities of the overall government. Eliminations have been made to minimize the effect of internal activities upon revenues and expenses. These statements distinguish between the governmental and business-type activities of the Board. Governmental activities generally are financed through intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the Board and for each function of the Board’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expense allocations that have been made in the funds have been reversed for the statement of activities. Program revenues include (a) fees and charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues.
Page 27
RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Basis of Presentation- (continued) Fund Financial Statements: The fund financial statements provide information about the Board’s funds, including its fiduciary funds. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as non-major funds. The fiduciary funds are presented separately. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities. The Board reports the following major governmental funds: General Fund. The General Fund is the general operating fund of the Board. The General Fund accounts for all financial resources except those that are required to be accounted for in another fund. This fund is the “Local Current Expense Fund,” which is mandated by State law [G.S. 115C-426]. State Public School Fund. The State Public School Fund includes appropriations from the Department of Public Instruction for the current operating expenditures of the public school system. Federal Grants Fund. The Federal Grants Fund is used to account for funds provided by the federal government under various federal programs. Local Special Expense Fund. Revenues from reimbursements, including indirect costs, fees for actual costs, tuition, sales tax revenues distributed using the ad valorem method pursuant to G.S. 105-472(b)(2), sales tax refunds, gifts and grants restricted as to use, trust funds, federal grants restricted as to use, federal appropriations made directly to local school administrative units, funds received for pre-kindergarten programs, and special programs. The Board reports the following major enterprise fund: School Food Service Fund. The School Food Service Fund is used to account for the food service program within the school system and is reported as an enterprise fund. The Board reports the following fiduciary funds: Private-Purpose Trust Funds. The private-purpose trust funds consist of the T.W. Smart Scholarship, Alexander School Scholarship, Teacher of the Year Award, Don Waters Scholarship, Hargreen Scholarship, Linda Cantrell Scholarship, G.A. Wilson Scholarship, Daniel Scholarship, Johnnie Glover Scholarship, Rebecca Smith Scholarship, Free Enterprise, Mark Perry Memorial, Project Graduation, Clothing, and Tanner Foundation funds. Each fund was created by donations from various individuals and organizations and is subject to the terms of the respective agreements drawn up by the donors.
Page 28
RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Basis of Presentation- (continued) Agency Fund. The agency fund is used to account for assets held by the Board as an agent for others. An agency fund is custodial in nature (assets equal liabilities) and does not involve measuring the results of operations. The Board maintains one agency fund, the Flexible Spending Fund, which accounts for assets held for Board employees in accordance with the provisions of Internal Revenue Code Section 125. Measurement Focus and Basis of Accounting Governmental-Wide, Proprietary and Fiduciary Fund Financial Statements. The government-wide, proprietary, fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Non-exchange transactions, in which the Board gives (or receives) value without directly receiving (or giving) equal value in exchange, include grants and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Governmental Fund Financial Statements. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The Board considers all revenues reported in the governmental funds to be available if the revenues are collected within 60 days after year-end. These could include federal, State, and county grants, and some charges for services. Expenditures are recorded when the related fund liability is incurred, except for claims and judgments and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Acquisitions under capital leases are reported as other financing sources. Under the terms of grant agreements, the Board funds certain programs by a combination of specific cost-reimbursement grants and general revenues. Thus when program expenses are incurred, there are both restricted and unrestricted net position available to finance the program. It is the Board’s policy to first apply cost-reimbursement grant resources to such programs and then general revenues. All governmental and business-type activities and enterprise funds of the Board follow FASB Statements and Interpretations issued on or before November 30, 1989, Accounting Principles Board Opinions, and Accounting Research Bulletins, unless those pronouncements conflict with GASB pronouncements.
Page 29
RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Budgetary Data The Board’s budgets are adopted as required by the North Carolina General Statutes. Annual budgets are adopted for all funds, except for the individual schools special revenue funds, as required by the North Carolina General Statutes. No budget is required by State law for individual school funds. All appropriations lapse at the fiscal year-end. All budgets are prepared using the modified accrual basis of accounting. Expenditures may not legally exceed appropriations at the functional level for all annually budgeted funds. The Board has authorized the Superintendent to move moneys (up to a certain limit) from one function to another within a fund. Amendments are required for any revisions that alter total expenditures of any fund or that change functional appropriations by more than the limit. All amendments must be approved by the governing board. During the year, several immaterial amendments to the original budget were necessary. The budget ordinance must be adopted by July 1 of the fiscal year or the governing board must adopt an interim budget that covers that time until the annual ordinance can be adopted. Assets, Liabilities and Fund Equity Deposits and Investments All deposits of the Board are made in board-designated official depositories and are secured as required by State law [G.S. 115C-444]. The Board may designate, as an official depository, any bank or savings association whose principal office is located in North Carolina. Also, the Board may establish time deposit accounts such as NOW and SuperNOW accounts, money market accounts, and certificates of deposit. The Board also has money credited in its name with the State Treasurer and may issue State warrants against these funds. State law [G.S. 115C-443] authorizes the Board to invest in obligations of the United States or obligations fully guaranteed both as to principal and interest by the United States; obligations of the State of North Carolina; bonds and notes of any North Carolina local government or public authority; obligations of certain non-guaranteed federal agencies; certain high quality issues of commercial paper and bankers' acceptances; the North Carolina Capital Management Trust (NCCMT), an SEC-registered (2a-7) money market mutual fund; and the North Carolina State Treasurer’s Short Term Investment Fund (STIF). The STIF is managed by the staff of the Department of State Treasurer and operated in accordance with state laws and regulations. It is not registered with the SEC. It consists of an internal portion and an external portion in which the Board participates. Investments are restricted to those enumerated in G.S. 147-69.1. The Board’s investments are reported at fair value as determined by quoted market prices. The NCCMT Cash Portfolio’s securities are valued at fair value, which is the NCCMT’s share price. The STIF securities are reported at cost and maintain a constant $1 per share value. Under the authority of G.S. 147-69.3, no unrealized gains or losses of the STIF are distributed to external participants of the fund.
Page 30
RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Assets, Liabilities and Fund Equity (continued) Cash and Cash Equivalents
The Board pools money from several funds to facilitate disbursement and investment and to maximize investment income. Therefore, all cash and investments are essentially demand deposits and are considered cash and cash equivalents. Inventories The inventories maintained in the proprietary fund are valued at cost and the Board uses the first-in, first-out (FIFO) flow assumption in determining cost. Proprietary fund inventories consist of food and supplies and federal commodities and are recorded as expenses when consumed. Capital Assets
The Board's capital assets are recorded at original cost. Donated assets are listed at their estimated fair value at the date of donation or forfeiture. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets. Certain items acquired before July 1, 1978 are recorded at an estimated original historical cost. The total of these estimates is not considered large enough that any errors would be material when capital assets are considered as a whole. It is the policy of the Board to capitalize all capital assets costing more than $5,000 with an estimated useful life of two or more years. In addition, other items that are purchased and used in large quantities such as student desks are capitalized. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Rutherford County holds title to certain properties which are reflected as capital assets in the financial statements to the Board. The properties have been deeded to the County to permit installment purchases financing of acquisition and construction costs and to permit the County to receive refunds of sales tax paid for construction costs. Agreements between the County and the Board give the schools full use of the facilities, full responsibility for maintenance of the facilities, and provide that the County will convey title of the property back to the Board once all restrictions of the financing agreements and all sales tax reimbursement requirements have been met. Capital assets, excluding land and construction in progress, are depreciated using the straight-line method over the following estimated useful lives: Buildings 50 years Building improvements 15 to 25 years Equipment and furniture 5 to 20 years Vehicles 8 years Depreciation for buildings and equipment that serve multiple purposes cannot be allocated ratably and is therefore reported as “unallocated depreciation” on the Statement of Activities.
Page 31
RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Assets, Liabilities and Fund Equity (continued) Deferred outflows and inflows of resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflow of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The Board has two items that meet this criterion – a pension related deferral and contributions made to the pension plan in the current fiscal year. The statement of financial position also reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. The Board has an item that meet this criterion – pension related deferrals. Long-term obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable government activities. Compensated Absences The Board follows the State’s policy for vacation and sick leave. Employees may accumulate up to thirty (30) days earned vacation leave with such leave being fully vested when earned. For the Board, the current portion of the accumulated vacation pay is not considered to be material. The Board’s liability for accumulated earned vacation and the salary-related payments as of June 30, 2015 is recorded in the government-wide and proprietary fund financial statements on a FIFO basis. An estimate has been made based on prior years’ records, of the current portion of compensated absences. The sick leave policy of the Board provides for an unlimited accumulation of earned sick leave. Sick leave does not vest, but any unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit purposes. Since the Board has no obligation for accumulated sick leave until it is actually taken, no accrual for sick leave has been made. Net Position/Fund Balances Net position in the government-wide and proprietary fund financial statements are classified as investment in capital assets; restricted; and unrestricted. Restricted net position represent constraints on resources that are either externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments, or imposed by law through state statute. Fund Balance In the governmental fund financial statements, fund balance is composed of five classifications designed to disclose the hierarchy of constraints placed on how fund balance can be spent.
Page 32
RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Assets, Liabilities and Fund Equity (continued) The governmental fund types classify fund balances as follows: Non-spendable Fund Balance – This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Inventories – portion of fund balance that is not an available resource because it represents the
year-end balance of ending inventories, which are not spendable resources. Assets held for resale – portion of fund balance that is not an available resource because it
represents the year-end balance of assets held for resale, which are not spendable resources. Restricted Fund Balance – This classification includes amounts that are restricted to specific purposes externally imposed by creditors or imposed by law. Restricted for Stabilization by State Statute – portion of fund balance that is restricted by State
Statute [G.S. 115C-425(a)]. Restricted for School Capital Outlay – portion of fund balance that can only be used for School
Capital Outlay. [G.S. 159-18 through 22]. Restricted for Individual Schools – revenue sources restricted for expenditures for the various
clubs and organizations, athletic events, and various fund raising activities for which they were collected.
Restricted for Local Special Expense Fund – specific revenue sources restricted for expenditures
that are required by Federal, state, and other providers to be spent for specific purposes. Committed Fund Balance – portion of fund balance that can only be used for a specific purpose imposed by a majority vote by quorum of the Board of Education’s governing body (highest level of decision-making authority) and in certain instances approval by the County’s governing body is required. Any changes or removal of specific purpose requires majority action by the governing bodies that approved the original action. Assigned Fund Balance – portion of fund balance that Rutherford County Board of Education, North Carolina intends to use for specific purposes. Subsequent year’s expenditures – portion of fund balance that is appropriated in the next year’s
budget that is not already classified in restricted or committed. The governing body approves the appropriation; however the budget ordinance authorizes the manager to modify the appropriations by resource or appropriation within funds up to $100,000.
County debt – portion of fund balance that is assigned to the county for possible debt repayment Unassigned Fund Balance – the portion of fund balance that has not been restricted, committed, or assigned to specific purposes or other funds. Negative unassigned fund balance may be reported in other governmental funds, if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes.
Page 33
RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Reconciliation of Government-wide and Fund Financial Statements Rutherford County Board of Education, North Carolina has a revenue spending policy that provides guidance for programs with multiple revenue sources. The Finance Officer will use resources in the following hierarchy: bond proceeds, federal funds, State funds, local non-board of education funds, board of education funds. For purposes of fund balance classification, expenditures are to be spent from restricted fund balance first, followed in-order by committed fund balance, assigned fund balance and lastly unassigned fund balance. The Finance Officer has the authority to deviate from this policy if it is in the best interest of the Board of Education. A. Explanation of certain differences between the governmental fund balance sheet and the
government-wide statement of net position. The governmental fund balance sheet includes a reconciliation between fund balance - total governmental funds and net position – governmental activities as reported in the government-wide statement of net position. The net adjustment of $71,391,533 consists of several elements as follows:
Description Amount Capital assets used in governmental activities are not financial resources and are therefore not reported in the funds (total capital assets on government-wide statement in governmental activities column)
$ 167,526,262 Less accumulated depreciation (75,022,701) Net capital assets 92,503,561
Pension related deferred outflows of resources Differences between contributions and proportional share of contributions and changes in proportion (780,204) Contributions made to the pension plan in current fiscal year 4,047,579
Liabilities for revenue deferred but earned and therefore recorded in the fund statements but not the government-wide
-- Liabilities that, because they are not due and payable in the current period, do not require current resources to pay and are therefore not recorded in the fund statements:
Compensated absences (5,091,754) Installment purchases (1,795,554) Net pension liability (3,792,954) Deferred inflows of resources related to pensions Differences between expected and actual experience (884,119) Difference between projected and actual earnings on plan investments (12,815,022) Total adjustment $ 71,391,533
Page 34
RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Reconciliation of Government-wide and Fund Financial Statements (continued) B. Explanation of certain differences between the governmental fund statement of revenues,
expenditures, and changes in fund balance and the government-wide statement of activities. The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. There are several elements of that total adjustment of $(158,459) as follows:
Description Amount Capital outlay expenditures recorded in the fund statements but capitalized as assets in the statement of activities. $ 421,937 Depreciation expense, the allocation of those assets over their useful lives, that is recorded on the statement of activities but not in the fund statements. (5,040,246) Principal payments on debt owed are recorded as a use of funds on the fund statements but affect only the statement of net position in the government-wide statements. 1,754,427 Contribution to the pension plan in the current fiscal year are not included on the Statement of Activities 4,047,579 Expenses reported in the statement of activities that do not require the use of current resources to pay are not recorded as expenditures in the fund statements: Pension expense (1,417,721) Compensated absences are accrued in the government-wide statements but not in the fund statements because they do not use current resources. 120,998 Loss on disposal of assets (45,433) Total adjustment $ (158,459)
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 NOTE 2 – DETAIL ON ALL FUNDS Assets Deposits All of the Board's deposits are either insured or collateralized by using one of two methods. Under the Dedicated Method, all deposits exceeding the federal depository insurance coverage level are collateralized with securities held by the Board's agents in the unit’s name. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the State Treasurer's agent in the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the Board, these deposits are considered to be held by the agent in the entity’s name. The amount of the pledged collateral is based on an approved averaging method for non-interest bearing deposits and the actual current balance for interest-bearing deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the Board or with the escrow agent. Because of the inability to measure the exact amount of collateral pledged for the Board under the Pooling Method, the potential exists for under-collateralization, and this risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method. The Board has no policy regarding custodial credit risk for deposits. At June 30, 2015, the Board had deposits with financial institutions with a carrying amount of $5,062,850 and with the State Treasurer of $ 1,208,334. The bank balances with the financial institutions and the State Treasurer were $6,897,945 and $2,890,006, respectively. Of these balances, $985,398 was covered by federal depository insurance and $8,802,553 was covered by collateral held by authorized escrow agents in the name of the State Treasurer. Investments At June 30, 2015, the Board of Education had $0 invested with the North Carolina Capital Management Trust’s Cash Portfolio which carried a credit rating of AAAm by Standard and Poor’s. There was $896,014 invested with the State Treasurer in the Short Term Investment Fund (STIF). The STIF is unrated and had a weighted average maturity of 1.5 years at June 30, 2015. The Board has no policy for managing interest rate risk or credit risk.
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Accounts Receivable Receivables at the government-wide level at June 30, 2015 were as follows:
Net Due from (to)
Other Funds (Internal
Balances)
Due from Other
Governments
Other
Total Governmental activities: General Fund $ 60,000 $ -- $ 38,221 $ 98,221 Other governmental activities (60,000) 411,480 273,198 624,678 Total $ -- $ 411,480 $ 311,419 $ 722,899 Business-type activities: School Food Service Fund $ -- $ -- $ 163,472 $ 163,472 Internal balances are repaid based on management’s assessment of cash needs and availability between funds and therefore it is possible that not all amounts would be repaid in the next fiscal year. Due from other governments consists of the following: Governmental activities: Capital Outlay $ 411,480 Capital due from county Total $ -- Business-type activities: School Food Service Fund $ -- State reimbursement
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Capital Assets Capital asset activity for the year ended June 30, 2015 was as follows:
Beginning Balances
Increases
Decreases
Transfers
Ending Balances
Governmental activities: Capital assets not being depreciated:
Land $ 3,543,827 $ -- $ -- $ -- $ 3,543,827 Construction in progress -- -- -- -- -- Total capital assets not being depreciated
3,543,827
--
--
--
3,543,827
Capital assets being depreciated:
Buildings 142,264,596 63,869 -- -- 142,328,465 Equipment and furniture 12,034,272 274,293 142,177 -- 12,166,388 Vehicles 9,587,362 83,775 183,555 -- 9,487,582 Total capital assets being depreciated
163,886,230 421,937 325,732
--
163,982,435
Less accumulated depreciation for:
Buildings 55,089,724 2,497,227 -- -- 57,586,951 Equipment and furniture 7,374,562 2,053,779 96,744 -- 9,331,597 Vehicles 7,798,468 489,240 183,555 -- 8,104,153 Total accumulated depreciation
70,262,754 5,040,246 280,299
--
75,022,701
Total capital assets being depreciated, net
93,623,476
88,959,734
Governmental activity capital assets, net
$ 97,167,303
$ 92,503,561
Depreciation was charged to governmental functions as follows: Unallocated depreciation $ 2,053,779 Operational support services 2,986,467 Total $ 5,040,246 Capital asset activity for the business-type activities for the year ended June 30, 2015 was as follows:
Beginning Balances
Additions
Disposals
Ending Balances
Business-type activities: School Food Service Fund: Capital assets being depreciated:
Furniture and office equipment $1,249,769 $ 63,042 $ 26,745 $1,286,066 Less accumulated depreciation for: Furniture and office equipment
1,061,975
45,456
26,745
1,080,686
School Food Service capital assets, net
$187,794
$205,380
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Liabilities
Pension Plan Obligations
a. Teachers’ and State Employees’ Retirement System
Plan Description. The Board is a participating employer in the statewide Teachers’ and State Employees’ Retirement System (TSERS), a cost-sharing multiple-employer defined benefit pension plan administered by the State (state agencies and institutions), universities, community colleges, and certain proprietary component units along with the employees of Local Education Agencies and charter schools. Article 1 of G.S retirement benefits to plan members and beneficiaries. Article 1 of G.S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management of the plan is vested in the TSERS Board of Trustees, which consist of 13 members – nine appointed by the Governor, one appointed by the state Senate, one appointed by the state House of Representatives, and the State Treasurer and State Superintendent, who serve as ex-officio members. The Teachers’ and State Employees’ Retirement System is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State’s CAFR includes financial statements and required supplementary information for TSERS. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, by calling (919) 981-5454, or at www.osc.nc.gov. Benefits Provided. TSERS provides retirement and survivor benefits. Retirement benefits are determined as 1.82% of the member’s average final compensation times the member’s years of creditable service. A member’s average final compensation is calculated as the average of a member’s four highest consecutive years of compensation. General employee plan members are eligible to retire with full retirement benefits at age 65 with five years of creditable service (or 10 years of creditable services for members joining TSERS on or after August 1, 2011), at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. General employee plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service (or 10 years of creditable service for members joining TSERS on or after August 1, 2011). Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last day of service and who have either completed 20 years of creditable regardless of age or have completed five years of service and have reached age 60 (10 years for members joining on or after August 1, 2011). Eligible beneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the member’s contributions. The plan does not provide for automatic post-retirement benefit increases. Increases are contingent upon actuarial gains of the plan.
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015
TSERS plan members who are LEOs are eligible to retire with full retirement benefits at age 55 with five years of creditable service as an officer (or 10 years of creditable service for members joining TSERS on or after August 1, 2011), or at any age with 30 years of creditable service. LEO plan members are eligible to retire with partial retirement benefits at age 50 with 15 years of creditable service as an officer. Survivor benefits are available to eligible beneficiaries of LEO members who die while in active service or within 180 days of their last day of service and who also have either completed 20 years of creditable service regardless of age, or have completed 15 years of service as a LEO and have reached age 50, or have completed five years of creditable service as LEO and have reached age 55, or have completed 15 years of creditable service as a LEO if killed in the line of duty. Eligible beneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the member’s contributions. Contributions. Contributions provisions are established by General Statute 135-8 and may be amended only by the North Carolina General Assembly. Board employees are required to contribute 6% of their compensation. Employer contributions are actuarially determined and set annually by the TSERS Board of Trustees. The Board’s contractually required contribution rate for the year ended June 30, 2015, was 9.15% of covered payroll, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year. Contributions to the pension plan from the Board were $4,188,142 for the year ended June 30, 2015. Refunds of Contributions. Board employees who have terminated service as a contributing member of TSERS, may file an application for a refund of their contributions. By state law, refunds to members with at least five years of service include 4% interest. State law requires a 60 day waiting period after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual’s right to employer contributions or any other benefit provided by TSERS. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2015, the Board reported a liability of $3,924,675 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2014. The total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of December 31, 2013. The total pension liability was then rolled forward to the measurement date of June 30, 2014 utilizing update procedures incorporating the actuarial assumptions. The Board’s proportion of the net pension liability was based on a projection of the Board’s long-term share of future payroll covered by the pension plan, relative to the projected future payroll covered by the pension plan of all participating TSERS employers, actuarially determined. At June 30, 2014 and at June 30, 2013, the Board’s proportion was .335% and .350%, respectively.
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015
For the year ended June 30, 2015, the Board recognized pension expense of $1,466,956. At June 30, 2015, the Board reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of Resources
Deferred Inflows of Resources
Differences between expected and actual experience $ - $ 914,822 Changes of assumptions - - Net difference between projected and actual earnings on pension plan investments - 13,260,057 Changes in proportion and differences between Board contributions and proportionate share of contributions - 807,298 Board contributions subsequent to the measurement date 4,188,142 - Total $ 4,188,142 $ 14,982,177 $39,000 reported as deferred outflows of resources related to pensions resulting from Board contributions subsequent to the measurement date will be recognized as a decrease of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended
June 30 2016 $ 3,769,399 2017 3,769,399 2018 3,769,379 2019 3,673,978 2020 - Thereafter - Actuarial Assumptions. The total pension liability in the December 31, 2013 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.0 percent Salary increases 4.25 to 9.10 percent, including inflation and productivity factor Investment rate of return 7.25 percent, net of pension plan investment expense, including inflation
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 The plan currently uses mortality tables that vary by age, gender, employee group (i.e. general, law enforcement officer) and health status (i.e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a provision to reflect future mortality improvements. The actuarial assumptions used in the December 31, 2013 valuation were based on the results of an actuarial experience study for the period January 1, 2005 through December 31, 2009. Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not included in the measurement. The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections reflect current yields across the U.S. Treasury yield curve and market expectations of forward yields projected and interpolated for multiple tenors and over multiple year horizons. Global public equity return projections are established through analysis of the equity risk premium and the fixed income return projections. Other asset categories and strategies’ return projections reflect the foregoing and historical data analysis. These projections are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 2014 are summarized in the following table:
Asset Class
Target
Allocation
Long-Term Expected Real Rate of Return
Fixed Income 36.0% 2.5% Global Equity 40.5% 6.1% Real Estate 8.0% 5.7% Alternatives 6.5% 10.5% Credit 4.5% 6.8% Inflation Protection 4.5% 3.7% Total 100%
The information above is based on 30 year expectations developed with the consulting actuary for the 2013 asset liability and investment policy study for the North Carolina Retirement Systems, including TSERS. The long-term nominal rates of return underlying the real rates of return are arithmetic annualized figures. The real rates of return are calculated from nominal rates by multiplicatively subtracting a long-term inflation assumption of 3.19%. All rates of return and inflation are annualized. The new asset allocation policy was finalized during the fiscal year ended June 30, 2014 to be effective July 1, 2014. The new asset allocation policy utilizes different asset classes, changes in the structure of certain asset classes, and adopts new benchmarks. Using the asset class categories in the preceding table, the new long-term expected arithmetic real rates of return are: Fixed Income 2.2%, Global Equity 5.8%, Real Estate 5.2%, Alternatives 9.8%, Credit 6.8% and Inflation Protection 3.4%.
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Discount rate. The discount rate used to measure the total pension liability was 7.25%. the projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the County’s proportionate share of the net pension asset to changes in the discount rate. The following presents the Board’s proportionate share of the net pension liability calculated using the discount rate of 7.25 percent, as well as what the Board’s proportionate share of the net pension asset or net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25 percent) or 1-percentage-point higher (8.25 percent) than the current rate:
1%
Decrease (6.25%)
Discount Rate
(7.25%)
1% Increase (8.25%)
Board’s proportionate share of net pension liability (asset) $ 28,174,065 $ 3,924,675 $ (16,550,395)
Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. b. Other Post-employment Benefits Post-employment Healthcare Benefits
Plan Description. The post-employment healthcare benefits are provided through a cost-sharing multiple-employer defined benefit plan administered by the Executive Administrator and the Board of Trustees of the Comprehensive Major Medical Plan (the Plan). The Executive Administrator and the Board of Trustees of the Plan establishes premium rates except as may be established by the General Assembly in an appropriation act. The Plan’s benefit and contribution provisions are established by Chapter 135-7, Article 1, and Chapter 135, Article 3 of the General Statutes and may be amended only by the North Carolina General Assembly. By General Statute, the Plan accumulates contributions from employers and any earnings on those contributions in the Retiree Health Benefit Fund. These assets shall be used to provide health benefits to retired and disabled employees and their applicable beneficiaries. These contributions are irrevocable. Also, by law, these assets are not subject to the claims of creditors of the employers making contributions to the Plan. The State of North Carolina issues a publicly available financial report that includes financial statements and required supplementary information for the State’s Comprehensive Major Medical Plan (also referred to as the State Health Plan). An electronic version of this report is available by assessing the North Carolina Office of the State Controller’s Internet home page http://www.ncosc.net/ and clicking on “Financial Reports”, or by calling the State Controller’s Financial Reporting Section at (919) 981-5454.
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Funding Policy. The Comprehensive Major Medical Plan is administered by the Executive Administrator and Board of Trustees of the Plan, which establish premium rates except as may be established by the General Assembly in an appropriation act. The healthcare benefits for retired and disabled employees are the same as for active employees, except that the coverage becomes secondary when former employees become eligible for Medicare. For employees first hired on and after October 1, 2006, future coverage as retired employees is subject to the requirement that the future retiree have 20 or more years of retirement service credit in order to receive coverage on a noncontributory basis. Employees first hired on and after October 1, 2006 with 10 but less than 20 years of retirement service credit are eligible for coverage on a partially contributory basis. For such future retirees, the State will pay 50% of the State Health Plan’s total noncontributory premium. For employees hired before October 1, 2006, healthcare benefits are provided to retirees (at no charge to the retirees) who have at least five years of contributing retirement membership prior to disability or retirement. In addition, persons who became surviving spouses of retirees prior to October 1, 1986, receive the same coverage as retirees at the State’s expense. Contributions are determined as a percentage of coverage monthly payroll. Annually, the monthly contribution rates to the Plan, which are intended to finance benefits and administrative expenses on a pay-as-you-go basis, are determined by the General Assembly in the Appropriations Bill. For the fiscal years ended June 30, 2015, 2014, and 2013, the Board paid all annual required contributions to the Plan for postemployment healthcare benefits of $2,512,885, $2,355,548, and $2,441,637, respectively. These contributions represented 5.49%, 5.40%, and 5.30%, of covered payroll, respectively. Long-term Disability Benefits Plan Description. Short-term and long-term disability benefits are provided through the Disability Income Plan of North Carolina (DIPNC), a cost-sharing, multiple-employer defined benefit plan. The DIPNC is administered by the Board of Trustees of the Teachers’ and State Employees’ Retirement System. Long-term disability benefits are payable as an other postemployment benefit from DIPNC after the conclusion of the short-term disability period or after salary continuation payments cease, whichever is later, for as long as an employee is disabled. Benefit and contribution provisions are established by Chapter 135, Article 6, of the General Statutes and may be amended only by the North Carolina General Assembly. The Plan accumulates contributions from employers and any earnings on those contributions in the Disability Income Plan Trust Fund. The plan does not provide for automatic post-retirement benefit increases. The State of North Carolina issues a publicly available financial report that includes financial statements and required supplementary information for the DIPNC. An electronic version of this report is available by accessing the North Carolina Office of the State Controller’s Internet home page http://www.ncosc.net/ and clicking on “Financial Reports”, or by calling the State Controller’s Financial Reporting Section at (919) 981-5454.
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Long-term Disability Benefits (continued) Funding Policy. An employee is eligible to receive long-term disability benefits provided the following requirements are met: (1) the employee has five or more years of contributing membership service in the Teachers’ and State Employees’ Retirement System of North Carolina, earned within 96 months prior to the end of the short-term disability period or cessation of salary continuation payments, whichever is later, (2) the employee must make application to receive long-term benefits within 180 days after the conclusion of the short-term disability period or after salary continuation payments cease or after monthly payments for Workers’ Compensation cease (excluding monthly payments for permanent partial benefits), whichever is later; (3) the employee must be certified by the Medical Board to be mentally or physically disabled for the further performance of his/her usual occupation; (4) the disability must have been continuous, likely to be permanent, and incurred at the time of active employment; (5) the employee must not be eligible to receive an unreduced retirement benefit from the Retirement System; and (6) the employee must terminate employment as a permanent, full-time employee. An employee is eligible to receive an unreduced retirement benefit from the Retirement System after (1) reaching the age of 65 and completing five years of creditable service, or (2) reaching the age of 60 and completing 25 years of creditable service, or (3) completing 30 years of creditable service, at any age. For members with five or more years of membership service as of July 31, 2007, the monthly long-term disability benefit is equal to 65% of one-twelfth of an employees’ annual base rate of compensation last payable to the participant of beneficiary prior to the beginning of the short-term disability period, plus the like percentage of one-twelfth of the annual longevity payment to which the participant or beneficiary would be eligible. The monthly benefits are subject to a maximum of $3,900 per month reduced by any primary Social Security disability benefits and by monthly payments for Workers’ Compensation to which the participant or beneficiary may be entitled. The monthly benefit shall be further reduced by the amount of any monthly payments from the Department of Veterans Affairs, any other federal agency or any payments made under the provisions of G.S.127A-108, to which the participant or beneficiary may be entitled on account of the same disability. Provided in any event, the benefits payable shall be no less than $10 a month. When an employee qualifies for an unreduced service retirement allowance from the Retirement System, the benefits payable from DIPNC will cease, and the employee will commence retirement under the TSERS. For members who obtain five years of membership service on or after August 1, 2007, the monthly long-term disability benefit is reduced by the primary Social Security retirement benefit to which you might be entitled should you become age 62 during the first 36 months. After 36 months of long-term disability, there will be no further payments from the DIPNC unless the member is approved for and are in receipts of primary Social Security disability benefits. It is payable as long as the member remains disabled and is in receipt of a primary Social Security disability benefit until eligible for an unreduced service retirement benefit. When an employee qualifies for an unreduced service retirement allowance from the Retirement System, the benefits payable from DIPNC will cease, and the employee will commence retirement under the TSERS.
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 The Board’s contributions are established in the Appropriations Bill by the General Assembly. Benefit and contribution provisions are established by Chapter 135, Article 6, of the General Statues any may be amended only by the North Carolina General Assembly. The contributions cannot be separated between the amounts that relate to other postemployment benefits and employment benefits for active employees. Those individuals who are receiving extended short-term disability benefit payments cannot be separated from the number of members currently eligible to receive disability benefits as another postemployment benefit. For the fiscal year ended June 30, 2015, 2014, and 2013, the Board paid all annual required contributions to the DIPNC for disability benefits of $187,665, $191,934, and $202,702, respectively. These contributions represented 0.41%, 0.44%, and 0.44% of covered payroll, respectively. Accounts Payable Accounts payable as of June 30, 2015, are as follows:
Due to Other Funds
(Internal Balances)
Vendors
Salaries
and Benefits
Total Governmental activities: Current Expense Fund $ (60,000) $ 423,323 $ -- $ 363,323 Other governmental 60,000 21,656 -- 81,656 Total governmental Activities $ -- $ 444,979 $ -- $ 444,979 Business-type activities: School Food Service Fund $ -- $ -- $ -- $ -- Deferred Inflows of Resources The balance in deferred inflows of resources at year-end is composed of the following:
Deferred
Outflows of Resources
Deferred Inflows of Resources
Change in proportion and difference between employer contributions and proportionate share of contributions $ - $ 807,298 Difference between projected and actual earnings on plan investments - 13,260,057 Difference between expected and actual experience - 914,822 Totals $ -- 14,982,177
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Risk Management (continued) Unearned Revenue The balance in unearned revenues at year-end is composed of the following elements:
Unearned Revenues
Prepaid lunch sales (School Food Service Fund) $ 12,323 Activity bus replacement and other (Capital Outlay Fund) 61,359 Local Special Expense Fund 9,000 Risk Management The Board is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Statutory worker’s compensation coverage is purchased through private insurers. Coverage is provided to the extent employees are paid from Federal and local funds. Worker’s Compensation coverage is provided by the State of North Carolina through a self-insured fund, to the extent employees are paid from State funds. The Board carries commercial coverage for all other risks of loss. There have been no significant reductions in insurance coverage in the prior year, and claims settled have not exceeded coverage in any of the past three fiscal years. The general liability coverage provides limits of $1 million per occurrence subject to a $2 million aggregate. Third party medical payments are $15,000. Third party fire damage is $300,000. Employee benefits are covered at $1 million per occurrence and $3 million aggregate. Health Occupational Education coverage is at $1 million per occurrence and $1 million aggregate. Abuse or Molestation coverage provides a $1 million per occurrence subject to a $3 million aggregate. The automobile policy has a $1 million combined single limit for bodily injury and property damage for all owned vehicles. There is not an aggregate limit for automobile liability. Coverage for under insured and uninsured motorist is at $1 million. School Leaders Errors and Omissions liability coverage carries a $1 million per occurrence subject to a $2 million aggregate, which carries a $2,500 deductible. Umbrella coverage in the amount of $2 million per occurrence subject to a $2 million aggregate applies as excess over general liability, automobile liability and employer’s liability, employee benefit liability, school leaders errors and omissions, abuse and molestation, and health occupational education liability; subject to a self-insured retention of $10,000. The property policy provides a blanket real and personal property coverage with a total limit of $302,341,200, which carries a $5,000 deductible per incident. Flood coverage is provided at a limit of $5 million, with a $25,000 deductible in all zones except for zones A, V, and D. There are no schools in zones A, V and D. Earthquake coverage is provided at a limit of $5 million, with a $50,000 deductible. Boiler and machine coverage is provided with a total blanket coverage limit of $50 million subject to a $5,000 deductible. Crime coverage is also provided with a $50,000 limit for public employee’s dishonesty, $50,000 for forgery or altercation and $50,000 inside and outside premises for theft subject to a $1,000 deductible. There is a performance bond provided for the Finance Officer with $100,000 coverage.
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 The Board also participates in the Teacher’s and State Employees Comprehensive Major Medical Plan, a self-funded risk pool of the State administered by Blue Cross Blue Shield of North Carolina. Through the Plan, permanent full-time employees of the Board receive health care benefits up to a $5 million lifetime limit. The Board pays the full cost of coverage for employees enrolled in the Comprehensive Major Medical Plan. Long-term Obligations Installment Purchase The Board is authorized to finance the purchase of school buses under G.S. 115C-528(a). Session law 2003-284, section 7.25 authorized the State Board of Education to allot monies for the payments on financing contracts entered into pursuant to G.S. 115C-528. In 2012-2014, the Board entered into an installment purchase contract to finance the purchase of two buses for $161,508. The net principal payments for all installment purchases are $1,795,554 for the year ending June 30, 2016. Long-Term Obligation Activity The following is a summary of changes in the Board’s long-term obligations for the fiscal year ended June 30, 2015:
Beginning Balance
Increases
Decreases
Ending Balance
Current Portion
Governmental activities: Installment purchases $ 3,549,981 $ -- $ 1,754,427 $ 1,795,554 $ 1,795,554 Net pension liability 20,523,687 -- 16,730,733 3,792,954 -- Compensated absences 5,212,752 2,258,867 2,379,865 5,091,754 2,380,000 $ 29,286,420 $ 2,258,867 $ 20,865,025 $ 10,680,262 $ 4,175,554 . Business-type activities: Compensated absences $ 82,611 $ 92,972 $ 104,980 $ 70,603 $ 70,603 Net pension liability 712,737 -- 581,016 131,721 -- $ 795,348 $ 92,972 $ 685,996 $ 202,324 $ 70,603 Compensated absences are paid by the General Fund and the School Food Service Fund when leave is taken Interfund Balances and Activity The State Public School Fund transferred $45,000 to the School Food Service Fund for certain administrative costs during the year ended June 30, 2015.
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RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 Fund Balance The Board of Education has a revenue spending policy that provides policy for programs with multiple revenue sources. The Finance Officer will use resources in the following hierarchy: federal funds, State funds, local non-Board of Education funds, Board of Education funds. For purposes of fund balance classification expenditures are to be spent form restricted fund balance first, followed in-order by committed fund balance, assigned fund balance and lastly unassigned fund balance. The Finance Officer has the authority to deviate from this policy if it is in the best interest of the Board of Education. The following schedule provides management and citizens with information on the portion of the General Fund balance that is available for appropriation, as of June 30, 2015.
Current Expense
Total fund balance $ 463,518 Less: Stabilization by State Statute 112,250 Subsequent year’s expenditures 300,000 Remaining unassigned fund balance $ 51,268 Encumbrances are amounts needed to pay any commitments related to purchase orders and contracts that remain unperformed at year-end. The Board had $14,029 in encumbrances as of June 30, 2015. NOTE 3 – SUMMARY DISCLOSURE OF SIGNIFICANT CONTINGENCIES Federal and State Assisted Programs The Board has received proceeds from several federal and State grants. Periodic audits of these grants are required and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant monies to the grantor agencies. Management believes that any required refunds will be immaterial. No provision has been made in the accompanying financial statements for the refund of grant monies. Other Contingencies Subsequent events evaluated through October 15, 2015, which is the date the financial statements were available to be issued. There were no recognized subsequent events meriting disclosure.
Page 49
RUTHERFORD COUNTY BOARD OF EDUCATION NOTES TO THE FINANCIAL STATEMENTS For the Year Ended June 30, 2015 NOTE 4 – SIGNIFICANT EFFECTS OF SUBSEQUENT EVENTS Charter School Funding In the case of Francine Delaney New School for Children, Inc. v. Asheville Board of Education, the State Supreme Court ruled that the trial court had not erred in its summary judgment for the plaintiff (Delaney) which, as a charter school, sought additional funding from the school board in the form of an equal per pupil share from the board’s supplemental school tax and penal fines and forfeitures revenues. Subsequently, the General Assembly, in the 2002 Technical Corrections Bill (SB1217), Section 91.1, determined that payments would not begin until July 2, 2003, and that no retroactive payments would be made prior to that date. Therefore, beginning with the fiscal year 2003-2004, the Rutherford County must distribute any supplemental school tax revenue and fines and forfeitures revenue on an equal per-pupil basis to any charter school that has a student or students registered that are residents of that county. Based on the following data, the Board has estimated its additional liability for next year to be $1,428 per student enrolled in a charter school. For the fiscal year ended June 30, 2015, there were 990 residents of Rutherford County enrolled in various charter schools in the State. Total projected supplemental school tax revenue and Fines and forfeitures revenue 2015-2016 $ 13,305,375 Total projected average daily membership for 2015-2016 9,316 Total estimated per-pupil revenue $ 1,428 NOTE 5 – CHANGE IN ACCOUNTING PRINCIPLES/RESTATEMENT The Board implemented Governmental Accounting Standards Board (GASB) statement 68, Accounting and Financial Reporting for Pensions (an amendment of GASB Statement No. 27), in the fiscal year ending June 30, 2015. The implementation of the statement required the City to record beginning net pension liability and the effects on net position of contributions made by the City during the measurement period (fiscal year 2014). As a result, net position for the governmental and business-type activities decreased by $16,854,578 and $585,318, respectively.
RUTHERFORD COUNTY BOARD OF EDUCATIONSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITYTEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEMLAST TWO FISCAL YEARS*
2015 2014
Board's proportion of the net pension liability (asset) 0.335% 0.350%
Board's proportionate share of the net pension liability (asset) $3,924,679 $21,236,424
Board's covered-employee payroll $43,621,273 $46,068,644
Board's proportionate share of the net pension liability (asset) as a percentage of its covered-employee payroll 9.00% 46.10%
Plan fiduciary net position as a percentageof the total pension liability 98.24% 90.60%
* The amounts presented for each fiscal year were determined as of the prior fiscal year ending June 30.
Page 50
RUTHERFORD COUNTY BOARD OF EDUCATIONSCHEDULE OF BOARD CONTRIBUTIONSTEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEMLAST TWO FISCAL YEARS*
2015 2014
Contractually required contribution $4,188,142 $3,790,689
Contributions in relation to the contractually required contribution 4,188,142 3,790,689
Contribution deficiency (excess) $ - $ -
Board's covered-employee payroll $45,772,045 $43,621,273
Contributions as a percentage of covered-employee payroll 9.15% 8.69%
* The amounts presented for each fiscal year were determined as of the prior fiscal year ending June 30.
Page 51
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
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RUTHERFORD COUNTY BOARD OF EDUCATIONSTATEMENT OF REVENUES AND EXPENDITURES - INDIVIDUAL SCHOOLS FUNDFor the Year Ended June 30, 2015
Schedule 1
Fund Balance Fund BalanceJune 30, 2014 Revenues Expenditures June 30, 2015
Elementary schools:
Carver Center 5,651$ 6,086$ 6,385$ 5,352$ Cliffside Elementary 24,812 32,763 45,835 11,740 Ellenboro Elementary 43,838 112,303 108,920 47,221 Forest City-Dunbar Elementary 7,627 44,192 36,782 15,037 Forrest W. Hunt Elementary 12,723 39,147 37,925 13,945 Harris Elementary 7,270 4,141 8,481 2,930 Mt. Vernon-Ruth Elementary 15,751 27,585 28,380 14,956 Pinnacle Elementary 12,114 78,386 75,575 14,925 Rutherford Opportunity Center 9,002 7,445 10,297 6,150 Rutherfordton Elementary 14,383 26,989 25,629 15,743 Spindale Elementary 10,074 27,906 30,074 7,906 Sunshine Elementary 23,383 40,867 48,202 16,048
Total elementary schools 186,628 447,810 462,485 171,953
Middle schools:
Chase Middle 41,373 148,594 161,146 28,821 East Rutherford Middle 35,403 182,863 184,088 34,178 R-S Middle 48,008 152,554 150,004 50,558
Total middle schools 124,784 484,011 495,238 113,557
High schools:
Chase High 92,735 496,606 462,699 126,642 East Rutherford High 142,534 455,864 487,500 110,898 REaCH 20,361 44,916 39,790 25,487 R-S Central High 187,443 611,437 612,019 186,861
Total high schools 443,073 1,608,823 1,602,008 449,888
Total all schools 754,485$ 2,540,644$ 2,559,731$ 735,398$
Page 52
For the Year Ended June 30, 2015Schedule 2
VariancePositive
Budget Actual (Negative)Revenues:
State of North Carolina:State appropriations - buses 281,787$ 40,380$ (241,407)$ Sales tax refund - - -
281,787 40,380 (241,407)
Rutherford County:Appropriations from county 629,388 626,709 (2,679)
629,388 626,709 (2,679)
Other:ABC revenue 23,908 21,322 (2,586) Insurance proceeds - - - Other - 12,896 12,896
23,908 34,218 10,310
Total revenues 935,083 701,307 (233,776)
Expenditures:Furniture and equipment 90,133 474,965 (384,832) Buses and motor vehicles 325,182 83,772 241,410 Site Improvements 479,388 33,475 445,913
Debt serviceInterest expense - - - Principal payments 40,380 40,380 -
Total expenditures 935,083 632,592 302,491
Revenues over (under) expenditures - 68,715 68,715
Other financing sources:Installment purchase obligations issued - - - Transfer to:Child Nutrition - - - General Fund - - -
Total other financing sources (uses) - - -
- 68,715 68,715
Appropriated fund balance - - -
-$ 68,715 68,715$
Fund balances:Beginning of year, July 1 459,575
End of year, June 30 528,290$
Page 53
Revenues and appropriated fund balance over (under) expenditures
RUTHERFORD COUNTY BOARD OF EDUCATIONSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - CAPITAL OUTLAY FUND
Revenues and other sources over (under) expenditures
For the Year Ended June 30, 2015Schedule 3
VariancePositive
Budget Actual (Negative)Operating revenues:
Food sales 591,200$ 584,217$ (6,983)$ Total operating revenues 591,200 584,217 (6,983)
Operating expenditures:Food costs 1,826,004 Salaries and benefits 2,583,211 Pension expense - Indirect costs - Travel 15,883 Contracted services 1,078 Materials and supplies 136,593 Repairs and maintenance 15,708 Other 8,915 Capital Outlay -
Total operating expenditures 4,698,500 4,587,392 111,108
Operating loss (4,107,300) (4,003,175) 104,125
Nonoperating revenues:Federal reimbursements 3,787,300 3,622,588 (164,712) Federal commodities 275,000 269,627 (5,373) Miscellaneous - - -
Total nonoperating revenues 4,062,300 3,892,215 (170,085)
(45,000) (110,960) (65,960)
Other financing sources: Transfers from other funds 45,000 45,000 - Capital contributions - 63,042 63,042
Total other financing sources 45,000 108,042 63,042
- (2,918) (2,918)
Appropriated fund balance - - -
-$ (2,918)$ (2,918)$
Page 54
RUTHERFORD COUNTY BOARD OF EDUCATION
Revenues over (under) expenditures before other financing sources
Revenues and other sources over (under) expenditures
Revenues, appropratied fund balance, and other sources, over (under) expenditures
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (NON-GAAP) - SCHOOL FOOD SERVICE FUND
RUTHERFORD COUNTY BOARD OF EDUCATION
For the Year Ended June 30, 2015Schedule 3
(Continued)
ActualReconciliation of modified accrual to full accrual basis:
Revenues, appropriated fund balance, and other sourcesover (under) expenditures (2,918)$ Reconciling items:
Capital contributions 0Contributions to the pension plan in the current year 140,563Depreciation (45,456) Pension expense (49,235) Indirect costs (365,949) Indirect costs not paid 365,949 Equipment purchases - Increase in inventory 6,984 Decrease in compensated abscences 12,008
Change in net position (full accrual) 61,946$
Page 55
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (NON-GAAP) - SCHOOL FOOD SERVICE FUND
RUTHERFORD COUNTY BOARD OF EDUCATIONCOMBINING STATEMENT OF FIDUCIARY NET POSITION - FIDUCIARY FUNDSPRIVATE PURPOSE TRUST FUNDSJune 30, 2015
Schedule 4
Assets Net Position
Cash and Cash Held in Trust forEquivalents Private Purpose
Alexander School Scholarship 36,081$ 36,081$ Clothing Fund 50 50 Daniel Scholoarship 68 68 Don Walters Scholarship 17 17 Free Enterprise Fund 443 443 G.A. Wilson Scholarship - - Hargreen Scholarship 303 303 Johnnie Glover Scholarship - - Mark Perry Memorial 1,661 1,661 Project Graduation 131 131 Rebecca Smith Scholarship 2,881 2,881 T.W. Smart Scholarship 459 459 Tanner Foundation 4,000 4,000 Teacher of the Year 70,218 70,218
116,312$ 116,312$
Page 56
RUTHERFORD COUNTY BOARD OF EDUCATIONCOMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - FIDUCIARY FUNDSPRIVATE PURPOSE TRUST FUNDSFor the Year Ended June 30, 2015
Schedule 5
Contributions/ Net Position,Investment Change in Beginning of Net Position,
Earnings Awards Net Assets Year End of Year
Alexander School Scholarship 73$ -$ 73$ 36,008$ 36,081$ Clothing Fund - - - 50 50 Daniel Scholoarship 1 - 1 67 68 Don Walters Scholarship 16 (6,600) (6,584) 6,601 17 Free Enterprise Fund - - - 443 443 G.A. Wilson Scholarship (3) - (3) 3 - Hargreen Scholarship - - - 303 303 Johnnie Glover Scholarship - - - - - Mark Perry Memorial - - - 1,661 1,661 Project Graduation - - - 131 131 Rebecca Smith Scholarship 17 (1,000) (983) 3,864 2,881 T.W. Smart Scholarship 3 - 3 456 459 Tanner Foundation - - - 4,000 4,000 Teacher of the Year 341 (1,000) (659) 70,877 70,218
448$ (8,600)$ (8,152)$ 124,464$ 116,312$
Page 57
RUTHERFORD COUNTY BOARD OF EDUCATIONSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES - FIDUCIARY FUNDSAGENCY FUNDFor the Year Ended June 30, 2015
Schedule 6
Balance Funds Funds BalanceJuly 1, 2014 Collected Disbursed June 30, 2015
Flexible Spending Fund
Assets:Cash 59,641$ 405,005$ 407,556$ 57,090$
Liabilities:Due to other sources 59,641$ 405,005$ 407,556$ 57,090$
Page 58
RUTHERFORD COUNTY HEADSTART(A COMPONENT UNIT OF RUTHERFORD COUNTY BOARD OF EDUCATION)STATEMENT OF ACTIVITIESFor the Year Ended June 30, 2015
Schedule 7
Program Revenues
Functions/Programs Expenses
Operating Grants and
Contributions
Net (Expense) Revenue and
Changes in Net Position
Governmental Activities:Instructional services:
Special populations -$ -$ -$ Alternative programs 1,721,044 1,721,044 - School-based support 117,008 117,008 -
System-wide support services: - Special population support and development 29,714 29,714 -
Alternative programs and services support and development 182,064 182,064 - Technology support 3,592 3,592 - Operational support 220,258 220,258 -
Ancillary services 42,386 42,386 - Total governmental activities 2,316,066$ 2,316,066$ -
General revenues:Unrestricted State appropriations - Investment earnings, unrestricted - Miscellaneous, unrestricted -
Total general revenues - Change in net position -
Net position-beginning - Net position-ending -$
Page 59
RUTHERFORD COUNTY HEADSTART(A COMPONENT UNIT OF RUTHERFORD COUNTY BOARD OF EDUCATION)
For the Year Ended June 30, 2015Schedule 8
VariancePositive
Budget Actual (Negative)Revenues:
U. S. Government 2,548,984$ 2,316,066$ (232,918)$ Other - - -
2,548,984 2,316,066 (232,918)
Expenditures:Instructional services 1,968,309 1,838,052 130,257 System-wide supporting services 527,763 435,628 92,135 Ancillary services 52,912 42,386 10,526 Total expenditures 2,548,984 2,316,066 232,918
-$ - -$ Fund balances:
Beginning of year, July 1 -
End of year, June 30 -$
Page 60
Revenues over (under) expenditures
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
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STATISTICAL SECTION
Page 61
STATISTICAL SECTION (Unaudited)
The Statistical Section of the District’s Comprehensive Annual Financial Report (CAFR)
presents detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information say about the District’s
overall financial outlook.
Sections
Financial Trends
These schedules contain trend information to help the reader understand how the
District’s financial performance and operations have changed over time.
Revenue Capacity
Since the District’s local revenues are primarily provided by Rutherford County, these
schedules on the county’s revenue sources are relevant to an understanding of Rutherford
County’s most significant local revenue source, the property tax.
Debt Capacity
Since the District has no tax-levying or debt-issuing authority, the County of Rutherford
provides significant funding to the school system. Selected fiscal data from the County
of Rutherford has been included to help the reader better understand the school system
and its financial operations.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the District’s financial activities take place.
County information is included.
Operating Information
These schedules contain service data to help the reader understand how the information
in the District’s financial report relates to the services the District provides and the
activities it performs.
Tab
le 1
R
UT
HE
RF
OR
D C
OU
NT
Y B
OA
RD
OF
ED
UC
AT
ION
N
et P
osi
tio
n B
y C
om
po
nen
t
L
ast
Ten
Fis
cal
Yea
rs
F
or
the
yea
r en
ded
Ju
ne
30
, 2
01
5
2015
2014
20
13
20
12
20
11
20
10
2009
2008
2007
2006
Gover
nm
enta
l ac
tivit
ies:
Net
inves
tmen
t in
cap
ital
ass
ets
90,7
08,0
07
$
93,6
17,3
22
$
9
5,8
16
,13
9$
98
,03
4,1
13
$
1
00
,60
2,7
17
$
10
5,3
47
,80
8$
106,5
01,2
34
$
99,3
97,7
04
$
97,7
56,2
35
$
95,5
29,5
47
$
Res
tric
ted
6,9
80,1
58
5,8
59,6
79
5,6
58
,16
2
5
,19
8,5
71
1,8
57
,59
4
1
,07
6,7
90
1,0
14,9
30
815,8
68
1,0
98,8
69
1,2
74,4
64
Unre
stri
cted
(18,9
65,2
06)
(4,4
23,9
36
)
(4,3
29
,18
0)
(4
,32
6,5
01
)
(2,4
35
,71
8)
(1
,95
0,2
07
)
(2,0
34,2
16)
(2
,021,8
67)
(1
,357,2
72)
(2
,180,5
24)
78,7
22,9
59
$
95,0
53,0
65
$
9
7,1
45
,12
1$
98
,90
6,1
83
$
1
00
,02
4,5
93
$
10
4,4
74
,39
1$
105,4
81,9
48
$
98,1
91,7
05
$
97,4
97,8
32
$
94,6
23,4
87
$
Busi
nes
s-ty
pe
acti
vit
ies:
Net
inves
tmen
t in
cap
ital
ass
ets
205,3
80
$
187,7
94
$
2
32
,95
7$
27
9,5
21
$
3
35
,03
2$
42
6,5
15
$
275,9
64
$
306,4
50
$
416,2
99
$
526,8
04
$
Unre
stri
cted
(302,0
10)
238,9
48
5
7,3
17
97
,98
6
1
07
,46
7
18
9,2
55
(5
0,2
10)
(1,3
17)
165,4
48
514,3
10
(96,6
30)
$
426,7
42
$
2
90
,27
4$
37
7,5
07
$
4
42
,49
9$
61
5,7
70
$
225,7
54
$
305,1
33
$
581,7
47
$
1,0
41,1
14
$
Dis
tric
t-w
ide:
Net
inves
tmen
ts i
n c
apit
al a
sset
s90,9
13,3
87
$
93,8
05,1
16
$
9
6,0
49
,09
6$
98
,31
3,6
34
$
1
00
,93
7,7
49
$
10
5,7
74
,32
3$
106,7
77,1
98
$
99,7
04,1
54
$
98,1
72,5
34
$
96,0
56,3
51
$
Res
tric
ted
6,9
80,1
58
5,8
59,6
79
5,6
58
,16
2
5
,19
8,5
71
1,8
57
,59
4
1
,07
6,7
90
1,0
14,9
30
815,8
68
1,0
98,8
69
1,2
74,4
64
Unre
stri
cted
(19,2
67,2
16)
(4,1
84,9
88
)
(4,2
71
,86
3)
(4
,22
8,5
15
)
(2,3
28
,25
1)
(1
,76
0,9
52
)
(2,0
84,4
26)
(2
,023,1
84)
(1
,191,8
24)
(1
,666,2
14)
78,6
26,3
29
$
95,4
79,8
07
$
9
7,4
35
,39
5$
99
,28
3,6
90
$
1
00
,46
7,0
92
$
10
5,0
90
,16
1$
105,7
07,7
02
$
98,4
96,8
38
$
98,0
79,5
79
$
95,6
64,6
01
$
stat
ewid
e T
each
ers’
and
Sta
te E
mplo
yee
s’ R
etir
emen
t S
yst
em (
TS
ER
S).
June
30
, 2
01
5.
The
stan
dar
d r
equir
es t
he
Boar
d t
o r
ecord
its
pro
port
ionat
e sh
are
of
the
net
pen
sio
n l
iab
ilit
y a
sso
ciat
ed w
ith i
ts p
arti
cip
atio
n i
n t
he
Sourc
e:
Ruth
erfo
rd C
ounty
Boar
d o
f E
duca
tion,
Annual
Fin
anci
al R
eport
fo
r th
e yea
r en
ded
June
30
, 2
01
5
Note
: N
et p
osi
tio
n f
or
20
14
and b
efore
are
not
com
par
able
to 2
015 (
and a
fter
) net
po
siti
on d
ue
to t
he
imp
lem
enta
tio
n o
f G
AS
B 6
8 f
or
the
yea
r en
ded
62
Ta
ble
2
20
15
20
14
20
13
20
12
20
11
20
10
20
09
20
08
20
07
20
06
Exp
ense
s
Gover
nm
enta
l ac
tivit
ies:
I
nst
ruct
ion
al s
ervic
es5
8,6
60
,26
4$
58
,71
1,6
92
$
62
,36
2,4
60
$
62
,22
5,0
46
$
64
,99
4,9
81
$
63
,12
1,1
20
$
65
,12
0,6
83
$
66
,01
3,3
65
$
59
,09
0,1
48
$
56
,42
7,9
64
$
S
yst
em-w
ide
sup
port
ser
vic
es1
4,5
98
,25
7
15
,01
6,6
71
15
,22
3,3
18
15
,70
5,4
50
15
,29
2,4
77
15
,56
0,4
25
16
,91
1,2
33
17
,74
0,4
46
17
,97
7,8
29
18
,14
9,5
93
A
nci
llar
y s
ervic
es3
7,8
58
30
,87
6
58
,08
2
91
,89
4
17
4,4
35
11
7,8
90
58
,33
3
16
6,1
77
31
5,8
53
37
2,0
14
P
aym
ents
to o
ther
gover
nm
ents
1,5
54
,25
5
1,4
57
,84
2
1,4
72
,78
8
1,3
74
,59
4
1,3
80
,89
1
1,2
46
,74
2
82
7,2
18
76
6,8
32
30
7,5
75
23
5,3
81
C
laim
s an
d j
ud
gem
ents
-
-
-
-
-
73
0,8
89
-
-
-
-
I
nte
rest
on
lon
g-t
erm
deb
t1
00
,52
0
59
,61
8
89
,43
6
90
8
-
-
-
-
1,3
30
2,1
70
U
nal
loca
ted
dep
reci
atio
n e
xp
ense
2,0
53
,77
9
2,0
33
,75
2
2,0
51
,49
6
16
4,4
22
5,7
49
,29
9
2,7
75
,60
4
2,5
82
,31
0
2,6
04
,76
9
2,5
68
,90
8
2,4
18
,10
3
Tota
l gover
nm
enta
l ac
tivit
ies
exp
ense
s7
7,0
04
,93
3
77
,31
0,4
51
81
,25
7,5
80
79
,56
2,3
14
87
,59
2,0
83
83
,55
2,6
70
85
,49
9,7
77
87
,29
1,5
89
80
,26
1,6
43
77
,60
5,2
25
Bu
sin
ess-
typ
e ac
tivit
ies:
S
chool
food
ser
vic
e4
,88
8,4
77
4,8
51
,58
0
5,3
51
,15
0
4,9
68
,73
9
4,9
12
,45
4
4,8
98
,03
9
4,7
93
,25
5
5,1
57
,38
0
5,4
39
,36
5
5,0
28
,93
1
Tota
l d
istr
ict-
wid
e ex
pen
ses
81
,89
3,4
10
$
82
,16
2,0
31
$
86
,60
8,7
30
$
84
,53
1,0
53
$
92
,50
4,5
37
$
88
,45
0,7
09
$
90
,29
3,0
32
$
92
,44
8,9
69
$
85
,70
1,0
08
$
82
,63
4,1
56
$
Pro
gra
m R
even
ues
Gover
nm
enta
l ac
tivit
ies:
C
har
ges
for
serv
ices
:
R
egu
lar
inst
ruct
ion
al s
ervic
es5
31
,98
8$
19
1,1
71
$
56
3,8
50
$
14
0,1
51
$
13
,65
6$
34
,52
8$
33
,39
1$
28
,82
4$
-$
-$
O
ther
-
-
-
-
2,8
29
,42
8
2,4
05
,48
6
2,2
84
,98
6
2,3
47
,61
3
2,2
52
,98
9
2,6
42
,52
4
O
per
atin
g g
ran
ts a
nd
con
trib
uti
on
s5
6,1
55
,54
5
56
,67
1,4
09
61
,16
7,2
09
61
,85
8,0
52
67
,17
7,0
60
60
,06
2,5
32
62
,53
3,6
32
62
,54
3,1
78
61
,45
1,5
89
59
,21
3,2
91
C
apit
al g
ran
ts a
nd
con
trib
uti
on
s-
-
-
-
52
,98
4
61
8,9
66
90
5,6
21
45
9,3
13
73
7,1
27
26
,53
8
Tota
l gover
nm
enta
l ac
tivit
ies
pro
gra
m r
even
ues
56
,68
7,5
33
56
,86
2,5
80
61
,73
1,0
59
61
,99
8,2
03
70
,07
3,1
28
63
,12
1,5
12
65
,75
7,6
30
65
,37
8,9
28
64
,44
1,7
05
61
,88
2,3
53
Bu
sin
ess-
typ
e ac
tivit
ies:
C
har
ges
for
serv
ices
:
S
tud
ent
mea
l se
rvic
es5
84
,21
7
1,0
26
,55
9
1,2
08
,98
8
1,1
93
,00
3
1,2
54
,52
6
1,2
99
,19
9
1,2
70
,42
8
1,5
72
,23
5
1,5
85
,77
9
1,4
15
,52
3
O
per
atin
g g
ran
ts a
nd
con
trib
uti
on
s4
,25
8,1
64
3,9
04
,14
6
4,0
00
,73
5
3,6
57
,71
3
3,4
18
,41
2
3,8
77
,86
3
3,3
75
,09
3
3,2
33
,97
1
3,3
24
,12
8
2,8
75
,53
7
C
apit
al g
ran
ts a
nd
con
trib
uti
on
s6
3,0
42
-
-
-
-
-
-
-
-
-
Tota
l b
usi
nes
s-ty
pe
acti
vit
ies
pro
gra
m r
even
ues
4,9
05
,42
3
4,9
30
,70
5
5,2
09
,72
3
4,8
50
,71
6
4,6
72
,93
8
5,1
77
,06
2
4,6
45
,52
1
4,8
06
,20
6
4,9
09
,90
7
4,2
91
,06
0
Tota
l d
istr
ict-
wid
e p
rogra
m r
even
ues
61
,59
2,9
56
$
61
,79
3,2
85
$
66
,94
0,7
82
$
66
,84
8,9
19
$
74
,74
6,0
66
$
68
,29
8,5
74
$
70
,40
3,1
51
$
70
,18
5,1
34
$
69
,35
1,6
12
$
66
,17
3,4
13
$
Net
(E
xp
ense
) R
even
ue
Gover
nm
enta
l ac
tivit
ies
(20
,31
7,4
00
)$
(2
0,4
47
,87
1)
$
(19
,52
6,5
21
)$
(1
7,5
64
,11
1)
$
(17
,51
8,9
55
)$
(2
0,4
31
,15
8)
$
(19
,74
2,1
47
)$
(2
1,9
12
,66
1)
$
(15
,81
9,9
38
)$
(1
5,7
22
,87
2)
$
Bu
sin
ess-
typ
e ac
tivit
ies
16
,94
6
79
,12
5
(14
1,4
27
)
(11
8,0
23
)
(23
9,5
16
)
27
9,0
23
(14
7,7
34
)
(35
1,1
74
)
(52
9,4
58
)
(73
7,8
71
)
Tota
l d
istr
ict-
wid
e n
et e
xp
ense
(20
,30
0,4
54
)$
(2
0,3
68
,74
6)
$
(19
,66
7,9
48
)$
(1
7,6
82
,13
4)
$
(17
,75
8,4
71
)$
(2
0,1
52
,13
5)
$
(19
,88
9,8
81
)$
(2
2,2
63
,83
5)
$
(16
,34
9,3
96
)$
(1
6,4
60
,74
3)
$
RU
TH
ER
FO
RD
CO
UN
TY
BO
AR
D O
F E
DU
CA
TIO
N
Ch
an
ges
in
Net
Posi
tion
La
st T
en F
isca
l Y
ears
(Acc
rua
l b
asi
s of
acc
ou
nti
ng
)
For
the
yea
r en
ded
Ju
ne
30
, 2
01
5
63
Ta
ble
2 (
con
tin
ued
)
20
15
2014
2013
2012
2011
2010
20
09
20
08
20
07
20
06
Gen
eral
Rev
enu
es a
nd
Oth
er C
ha
ng
es i
n N
et P
osi
tio
n
Gover
nm
enta
l ac
tivit
ies:
Sta
te o
f N
ort
h C
aroli
na
-$
-$
-
$
-
$
576,8
98
$
1,9
21
,58
1$
2,4
14
,86
5$
1
,58
6,0
53
$
2,4
98
,65
4$
2
,04
6,2
70
$
Ruth
erfo
rd C
ounty
12
,66
9,7
13
12,4
99,7
13
12,4
90,1
05
12,4
96,0
39
12,1
26,2
10
14,3
21
,22
2
23
,07
8,0
82
1
7,8
35
,36
5
15
,22
5,7
18
1
4,6
51
,17
1
U.
S.
Gover
nm
ent
-
-
-
-
-
2,6
05
,42
5
8
80
,34
9
2,4
20
,52
5
-
-
Inves
tmen
t ea
rnin
gs,
unre
stri
cted
-
-
-
-
7,3
17
12,0
47
13
,56
5
1
18
,33
6
14
5,4
66
9
5,9
33
Mis
cell
aneo
us,
unre
stri
cted
8,2
17
,15
9
5,9
13,4
45
4,6
58,2
98
4,0
02,6
93
424,9
76
674,3
09
7
10
,27
6
71
7,8
37
8
82
,00
6
1,2
46
,27
4
Tra
nsf
ers
(45
,00
0)
(5
7,3
43)
(5
4,1
94)
(5
3,0
31)
(6
6,2
44)
(1
10
,98
3)
(64
,74
7)
(7
1,5
82
)
(57
,56
1)
(5
5,6
11
)
Tota
l gover
nm
enta
l ac
tivit
ies
20
,84
1,8
72
18,3
55,8
15
17,0
94,2
09
16,4
45,7
01
13,0
69,1
57
19,4
23
,60
1
27
,03
2,3
90
2
2,6
06
,53
4
18
,69
4,2
83
1
7,9
84
,03
7
Busi
nes
s-ty
pe
acti
vit
ies:
Inves
tmen
t ea
rnin
gs,
unre
stri
cted
-
-
-
-
1
1
0
3,6
08
2
,97
8
12
,53
0
2
0,4
49
Loss
on d
isposa
l of
capit
al a
sset
s-
-
-
-
-
-
-
-
-
(3
,06
1)
Tra
nsf
ers
45
,00
0
57,3
43
54,1
94
53,0
31
66,2
44
110,9
83
6
4,7
47
71
,58
2
5
7,5
61
55
,61
1
Tota
l bu
sin
ess-
typ
e ac
tivit
ies
45
,00
0
57,3
43
54,1
94
53,0
31
66,2
45
110,9
93
6
8,3
55
74
,56
0
7
0,0
91
72
,99
9
Tota
l d
istr
ict-
wid
e2
0,8
86
,87
2$
18,4
13,1
58
$
17,1
48,4
03
$
16,4
98,7
32
$
13,1
35,4
02
$
19,5
34
,59
4$
2
7,1
00
,74
5$
22
,68
1,0
94
$
1
8,7
64
,37
4$
18
,05
7,0
36
$
Ch
an
ge
in N
et P
osi
tion
Gover
nm
enta
l ac
tivit
ies
52
4,4
72
$
(2
,092,0
56)
$
(2
,432,3
12)
$
(1
,118,4
10)
$
(4
,449,7
98)
$
(1
,007,5
57
)$
7
,29
0,2
43
$
69
3,8
73
$
2
,87
4,3
45
$
2,2
61
,16
5$
Busi
nes
s-ty
pe
acti
vit
ies
61
,94
6
136,4
68
(8
7,2
33)
(6
4,9
92)
(1
73,2
71)
390,0
16
(7
9,3
79
)
(27
6,6
14
)
(4
59
,36
7)
(66
4,8
72
)
Tota
l dis
tric
t-w
ide
chan
ge
in n
et p
osi
tion
58
6,4
18
$
(1
,955,5
88)
$
(2
,519,5
45)
$
(1
,183,4
02)
$
(4
,623,0
69)
$
(6
17
,54
1)
$
7,2
10
,86
4$
4
17
,25
9$
2,4
14
,97
8$
1
,59
6,2
93
$
RU
TH
ER
FO
RD
CO
UN
TY
BO
AR
D O
F E
DU
CA
TIO
N
Ch
an
ges
in
Net
Po
siti
on
(co
nti
nu
ed)
La
st T
en F
isca
l Y
ears
(Acc
rua
l b
asi
s of
acc
ou
nti
ng)
Fo
r th
e y
ear
end
ed J
un
e 30,
2015
Sourc
e:
Ruth
erfo
rd C
ounty
Boar
d o
f E
du
cati
on
, A
nn
ual
Fin
anci
al R
eport
for
the
yea
r en
ded
June
30,
2015
64
Table 3
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
General fund:
Reserved 405,351$ 300,000$ 300,000$ 96,303$ 187,939$
Unreserved 2,373,133 2,590,377 2,543,507 3,011,398 1,918,418
Total general fund 2,778,484$ 2,890,377$ 2,843,507$ 3,107,701$ 2,106,357$
All other governmental funds:
Reserved -$ -$ -$ -$ -$
Unreserved, reported in:
Special revenue funds 651,998 608,833 593,627 593,625 626,614
Capital outlay fund 227,913 209,218 222,241 505,244 647,850
Activity bus replacement reserve 196,879 196,879 - - -
Total all other governmental funds 1,076,790$ 1,014,930$ 815,868$ 1,098,869$ 1,274,464$
General Fund
Nonspendable -$ -$ -$ 73,127$ -$
Restricted 112,250 139,007 282,318 - 710,542
Assigned 300,000 750,000 564,734 239,787 -
Unassigned 51,268 38,816 (42,705) (65,442) 2,084,175
Total General Fund 463,518$ 927,823$ 804,347$ 247,472$ 2,794,717$
All other governmental funds
Restricted 6,867,908$ 5,720,672$ 5,375,844$ 5,125,444$ 1,147,052$
Total all other governmental funds 6,867,908$ 5,720,672$ 5,375,844$ 5,125,444$ 1,147,052$
NOTE: GASB Statement 54 established new fund balance classification effective beginning 2011.
Previous to FY2011, general and local special expense funds (both part of general fund totals),
were combined in audit schedules. They are now presented separately. The activity bus reserve
is presented as part of the capital outlay fund effective FY 2011.
RUTHERFORD COUNTY BOARD OF EDUCATION
Fund Balance
Last Ten Fiscal Years ended June 30, 2015
Governmental Funds
Source: Rutherford County Board of Education, Annual Financial Report for the year ended June 30, 2015
65
Ta
ble
4
2015
2014
2013
2012
2011
2010
20
09
20
08
20
07
20
06
Rev
enu
es
Sta
te o
f N
ort
h C
aroli
na
52,5
91,1
38
$
50,3
77,0
59
$
51,7
24,8
84
$
52,5
33,9
14
$
52,3
25,7
04
$
52,6
66,8
34
$
59
,54
6,6
32
$
58
,77
3,2
11
$
56
,92
3,2
55
$
52
,85
1,2
40
$
Ruth
erfo
rd C
ounty
13,2
96,4
22
13,5
00,7
28
12,7
01,3
18
12,6
06,2
89
11,9
95,0
14
14,3
21,2
22
23
,07
8,0
82
17
,83
5,3
65
15
,22
5,7
18
14
,65
1,1
71
U.S
. G
over
nm
ent
6,5
73,8
36
7,7
09,5
89
8,1
32,1
97
9,3
12,3
89
14,9
18,2
55
12,4
33,1
84
6,8
81
,15
9
8
,03
0,3
90
7
,64
1,6
44
8
,44
5,9
98
Oth
er5,1
58,4
42
3,6
96,1
20
6,3
46,3
53
4,1
55,0
29
3,9
69,5
56
3,2
00,2
16
3,3
48
,89
4
3
,40
6,3
45
3
,54
8,9
12
4
,09
8,9
76
T
ota
l re
ven
ues
77,6
19,8
38
75,2
83,4
96
78,9
04,7
52
78,6
07,6
21
83,2
08,5
29
82,6
21,4
56
92
,85
4,7
67
88
,04
5,3
11
83
,33
9,5
29
80
,04
7,3
85
Exp
end
itu
res
Inst
ruct
ional
ser
vic
es58,4
03,0
15
55,7
79,0
68
59,2
30,4
90
60,2
71,4
21
65,1
63,5
75
63,2
45,9
73
65
,07
2,3
98
65
,63
2,5
42
58
,83
9,3
48
56
,45
9,6
40
Support
ser
vic
es14,4
46,1
82
14,4
23,5
95
14,6
38,8
64
14,6
08,7
51
15,5
39,2
18
14,4
44,3
73
14
,73
6,2
63
15
,16
1,5
04
17
,94
6,9
97
17
,30
7,6
53
Anci
llar
y s
ervic
es41,2
96
30,4
25
57,6
45
91,9
19
174,4
35
117,8
90
58
,33
3
17
5,4
24
32
1,2
02
41
4,5
94
Non-p
rogra
mm
ed c
har
ges
1,5
54,2
55
1,4
57,8
42
1,4
72,7
88
1,3
74,5
94
1,3
80,8
91
1,2
46,7
42
82
7,2
18
76
6,8
32
45
3,5
55
36
0,7
65
Oth
er
-
-
-
-
-
730,8
89
-
-
-
-
Cap
ital
outl
ay592,2
12
1,2
12,1
15
909,8
26
577,9
99
192,7
91
3,0
55,5
64
12
,19
8,8
95
6,3
33
,86
3
5
,39
6,5
54
3
,98
2,3
26
Deb
t se
rvic
e -
pri
nci
pal
1,7
54,4
27
1,7
95,1
86
1,8
05,7
42
197,8
51
603,0
95
510,4
79
58
8,8
64
45
0,7
59
71
5,1
74
30
3,0
60
Deb
t se
rvic
e -
inte
rest
100,5
20
59,6
18
89,4
36
908
1,7
85
-
-
-
-
-
T
ota
l ex
pen
dit
ure
s76,8
91,9
07
74,7
57,8
49
78,2
04,7
91
77,1
23,4
43
83,0
55,7
90
83,3
51,9
10
93
,48
1,9
71
88
,52
0,9
24
83
,67
2,8
30
78
,82
8,0
38
Rev
enues
over
(und
er)
expen
dit
ure
s727,9
31
525,6
47
699,9
61
1,4
84,1
78
152,7
39
(730,4
54
)
(62
7,2
04
)
(4
75
,61
3)
(3
33
,30
1)
1
,21
9,3
47
Oth
er f
inan
cin
g s
ou
rces
(u
ses)
Inst
allm
ent
purc
has
e obli
gat
ions
issu
ed-
-
161,5
08
-
-
791,4
04
93
7,8
83
-
1,2
16
,61
1
1
20
,69
3
Tra
nsf
ers
in (
ou
t)(4
5,0
00)
(5
7,3
43)
(54,1
94)
(53,0
31)
(66,2
44)
(110,9
83
)
(64
,74
7)
(7
1,5
82
)
(5
7,5
61
)
(5
5,6
11
)
N
et c
han
ge
in f
und b
alan
ce682,9
31
$
468,3
04
$
807,2
75
$
1,4
31,1
47
$
86,4
95
$
(5
0,0
33
)$
24
5,9
32
$
(54
7,1
95
)$
82
5,7
49
$
1,2
84
,42
9$
Rat
io o
f deb
t se
rvic
e to
non-c
apit
al e
xpen
dit
ure
s2.4
9%
2.5
9%
2.5
1%
0.2
6%
0.7
4%
0.6
5%
0.7
3%
0.5
5%
0.9
2%
0.4
1%
RU
TH
ER
FO
RD
CO
UN
TY
BO
AR
D O
F E
DU
CA
TIO
N
Gov
ern
men
tal
Fu
nd
s
Ch
an
ges
In
Fu
nd
Ba
lan
ces
Last
Ten
Fis
cal
Yea
rs
For
the
yea
r en
ded
Ju
ne
30
, 2
01
5
Sourc
e: R
uth
erfo
rd C
ounty
Boar
d o
f E
duca
tion, A
nnual
Fin
anci
al R
eport
for
the
yea
r en
ded
June
30,
2015
66
Tab
le 5
Ass
ess
ed
Va
lue i
n T
ho
usa
nd
sA
ssess
ed
Rea
l P
rop
erty
Per
son
al
Pro
perty
To
tal
Ta
xa
ble
To
tal
Dir
ect
Est
ima
ted
Va
lue a
s a
Fis
ca
lR
esi
den
tia
lC
om
mercia
lM
oto
rP
ub
lic S
erv
ice
Ass
ess
ed
Ta
x R
ate
Actu
al
Per
cen
tag
e o
f
Yea
rP
rop
erty
Pro
perty
Veh
icle
sO
ther
Co
mp
an
ies
Va
lue
per $
10
0T
ax
ab
le V
alu
eA
ctu
al
Va
lue
20
15
3,9
60
,31
2$
4
13
,65
3$
44
9,0
50
$
8
51
,29
4$
5
20
,30
6$
6,1
94
,61
5$
0
.60
7$
6,1
94
,61
5$
1
00
.00
20
14
3,9
36
,92
8$
4
42
,98
3$
36
1,4
28
$
7
04
,26
0$
5
11
,38
0$
5,9
56
,97
9$
0
.60
7$
5,9
56
,97
9$
1
00
.00
20
13
3,8
87
,47
5$
4
35
,67
7$
37
2,3
35
$
3
43
,04
8$
4
81
,55
3$
5,5
20
,08
8$
0
.60
7$
5,4
96
,45
3$
1
00
.43
20
12
4,4
12
,40
8$
4
95
,78
8$
35
8,5
11
$
2
98
,86
7$
4
17
,79
6$
5,9
83
,37
0$
0
.53
0$
5,9
54
,78
7$
1
00
.48
20
11
4,3
89
,35
0$
5
32
,07
0$
34
5,2
80
$
3
35
,88
9$
3
16
,64
4$
5,9
19
,23
3$
0
.53
0$
6,3
44
,98
1$
9
3.2
9
20
10
3,9
89
,45
8$
8
77
,69
9$
37
3,0
25
$
3
59
,31
6$
2
99
,42
2$
5,8
98
,92
0$
0
.53
0$
6,4
63
,15
3$
9
1.2
7
20
09
3,9
36
,14
5$
8
65
,28
2$
42
9,4
56
$
3
71
,89
4$
2
92
,28
6$
5,8
95
,06
3$
0
.53
0$
6,3
22
,46
1$
9
3.2
4
20
08
3,8
66
,90
1$
8
19
,35
7$
42
9,8
70
$
3
71
,20
5$
2
76
,12
0$
5,7
63
,45
3$
0
.53
0$
6,1
54
,90
5$
9
3.6
4
20
07
2,8
45
,47
7$
4
40
,18
9$
40
9,5
69
$
3
44
,29
4$
2
28
,69
4$
4,2
68
,22
3$
0
.61
0$
5,1
76
,74
1$
8
2.4
5
20
06
2,6
45
,50
2$
4
24
,19
9$
42
2,3
95
$
3
53
,88
8$
2
55
,55
3$
4,1
01
,53
7$
0
.62
0$
4,6
28
,75
2$
8
8.6
1
So
urc
e: R
uth
erfo
rd C
ou
nty
Tax
Dep
artm
ent
No
te -
Pro
per
ty w
as r
eval
ued
in
fis
cal
yea
r 2
00
8 a
nd
20
12
.
RU
TH
ER
FO
RD
CO
UN
TY
, N
OR
TH
CA
RO
LIN
A
Ass
ess
ed
Va
lue A
nd
Actu
al
Va
lue O
f T
ax
ab
le P
rop
erty
La
st T
en
Fis
ca
l Y
ea
rs
67
Table 6
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
County Direct Rate 0.607$ 0.607$ 0.607$ 0.530$ 0.530$ 0.530$ 0.530$ 0.530$ 0.610$ 0.620$
Town Rates
Bostic 0.260 0.260 0.260 0.250 0.250 0.250 0.250 0.250 0.250 0.250
Chimney Rock 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.115 0.115
Ellenboro 0.220 0.220 0.220 0.220 0.220 0.220 0.220 0.220 0.250 0.250
Forest City 0.290 0.290 0.290 0.290 0.290 0.290 0.300 0.290 0.300 0.300
Lake Lure 0.191 0.191 0.194 0.210 0.210 0.210 0.210 0.210 0.280 0.280
Ruth 0.280 0.280 0.280 0.260 0.260 0.260 0.260 0.260 0.260 0.260
Rutherfordton 0.567 0.567 0.537 0.520 0.520 0.520 0.520 0.520 0.540 0.540
Spindale 0.633 0.633 0.633 0.600 0.600 0.560 0.560 0.510 0.510 0.510
Special Districts
Bill's Creek Fire 0.060 0.060 0.080 0.080 0.080 0.080 0.080 0.080 0.080 0.080
Bostic Fire 0.060 0.050 0.050 0.050 0.060 0.060 0.060 0.050 0.050 0.050
Broad River Fire 0.100 0.100
Cherry Mountain Fire 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090
Chimney Rock Fire 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.040 0.060 0.060
Cliffside Fire 0.080 0.080 0.080 0.070 0.070 0.080 0.080 0.070 0.055 0.055
Cliffside Sanitary 0.080 0.080 0.080 0.080 0.080 0.070 0.070 0.080 0.080 0.080
Contracted Fire 0.060 0.040 0.030 0.020 0.020 0.020 0.020 0.020 0.030 0.030
Edneyville Fire 0.090 0.090
Ellenboro Fire 0.070 0.070 0.070 0.060 0.060 0.060 0.060 0.060 0.060 0.060
Fairfield Fire 0.100 0.080
Forest City Rural Fire 0.080 0.080
Green Hill Fire 0.070 0.070 0.070 0.070 0.070 0.070 0.070 0.070 0.070 0.070
Hollis/Polkville Fire 0.050 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030
Hudlow Fire 0.080 0.080 0.080 0.080 0.080 0.080 0.080 0.080 0.080 0.080
Lake Lure Rural Fire 0.090 0.080
Rutherfordton Fire 0.090 0.080 0.080 0.080 0.080 0.080 0.080 0.080 0.080 0.080
Sandy Mush Fire 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.040 0.040 0.040
Shiloh Danieltown Oakland Fire 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050
Shingle Hollow Fire 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100
Spindale Rural Fire 0.080 0.080
Union Mills Fire 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050
Source: Rutherford County Tax Department
Year Taxes Are Payable
Note: Property was revalued as of January 1, 2012 which affected the 2013 tax levy, and as of January 1, 2007 which affected the 2008 tax levy.
Rutherford County, North Carolina
Direct and Overlapping Property Tax Rates
Last Ten Years
(rate per $100 af assessed value)
68
Ta
ble
7
Fis
cal
Yea
r 2015
Fis
cal
Yea
r 2
00
6
Per
centa
ge
of
Per
cen
tag
e o
f
Ass
esse
dT
ota
l C
ounty
Ass
esse
dT
ota
l C
ou
nty
Type
Of
Val
ue
Tax
able
Ass
esse
dV
alu
eT
axab
le A
sses
sed
Tax
pay
erB
usi
nes
s(T
housa
nds)
Ran
kV
alue
(Th
ou
san
ds)
Ran
kV
alu
e
An
dal
e In
c. F
KA
Soft
war
e5
59
,15
7$
19
.03
%
Du
ke
En
ergy
Publi
c U
tili
ty4
46
,03
5
27
.20
%1
56
,81
8$
13
.82
%
Ho
rseh
ead
Met
al P
roduct
sM
anu
fact
uri
ng
13
5,8
89
32
.19
%
Del
l E
qu
ipm
ent
Fundin
g L
PL
easi
ng C
om
pan
y8
2,7
05
41
.34
%
DL
P R
uth
erfo
rd R
egio
nal
Hea
lth S
yst
em L
LC
Hosp
ital
23
,35
2
50
.38
%
CS
X T
ran
spo
rtat
ion
Publi
c U
tili
ty3
0,5
40
60
.49
%
Bel
lso
uth
Publi
c U
tili
ty2
0,6
41
70
.33
%2
5,9
04
30
.63
%
Tre
lleb
org
Man
ufa
ctu
rin
g2
0,4
39
80
.33
%
Pub
lic
Ser
vic
e C
o o
f N
C I
nc
Publi
c U
tili
ty1
2,2
78
90
.20
%
Fo
xru
n T
ow
nh
ou
ses
PO
AR
esort
Pro
per
ty1
1,9
49
10
0.1
9%
RC
M M
anag
emen
t S
ervic
es,
LL
PA
via
tio
n1
8,0
00
80
.44
%
Tim
ken
US
Co
rp (
Torr
ingto
n)
Man
ufa
ctu
rin
g1
8,1
99
70
.44
%
Co
ne
Mil
ls C
orp
ora
tion
Tex
tile
s1
8,5
55
60
.45
%
Ru
ther
ford
Ele
ctri
c M
ember
ship
Corp
Publi
c U
tili
ty1
8,9
20
50
.46
%
Ree
ves
Bro
ther
sM
anu
fact
uri
ng
15
,94
6
90
.39
%
Fai
rfie
ld C
om
munit
ies
Res
ort
Pro
per
ty3
1,8
71
20
.78
%
Bro
yh
ill
Fu
rnit
ure
Man
ufa
ctu
rin
g1
9,4
61
40
.47
%
Nat
ion
al T
exti
les
Inc
Tex
tile
s1
5,8
43
10
0.3
9%
Oth
er4
,85
1,6
30
78
.32
%3
,76
2,0
20
91
.73
%
Tota
l6
,19
4,6
15
$
10
0.0
0%
4,1
01
,53
7$
1
00
.00
%
Sourc
e: R
uth
erfo
rd C
ounty
Rev
enue
Dep
artm
ent
Ru
ther
ford
Cou
nty
, N
ort
h C
aro
lin
a
Pri
nci
pal
Pro
per
ty T
ax P
ayer
s
Cu
rren
t Y
ear
an
d N
ine
Yea
rs A
go
69
Table 8
Taxes Levied
Fiscal Year for the Prior Years'
Ended Fiscal Year Percentage of Levy Percentage of
June 30, (Original Levy) Amount Original Levy Collections Amount Original Levy
2015 40,380,840$ 38,820,937$ 96.1% -$ 38,820,937$ 96.1%
2014 39,404,494$ 37,988,441$ 96.4% 608,991$ 38,597,332$ 98.0%
2013 35,511,830$ 33,844,505$ 95.3% 1,049,678$ 34,894,183$ 98.3%
2012 33,887,224$ 31,598,979$ 93.2% 1,357,080$ 32,956,059$ 97.3%
2011 33,478,863$ 31,210,949$ 93.2% 1,459,951$ 32,670,900$ 97.6%
2010 33,253,013$ 31,195,062$ 93.8% 1,400,249$ 32,595,311$ 98.0%
2009 33,213,924$ 31,362,647$ 94.4% 1,295,006$ 32,657,653$ 98.3%
2008 32,461,482$ 31,280,218$ 96.4% 999,002$ 32,279,220$ 99.4%
2007 27,557,905$ 26,491,335$ 96.1% 964,663$ 27,455,998$ 99.6%
2006 26,864,829$ 25,786,091$ 96.0% 993,078$ 26,779,169$ 99.7%
(1) Includes general fund and special districts.
Source: Rutherford County Tax Department
Collected within the
Fiscal Year of the Levy
Total Collections to Date
RUTHERFORD COUNTY, NORTH CAROLINA
Property Tax Levies And Collections For Rutherford County (1)
Last Ten Fiscal Years
70
Table 9
Per
Capita
Fiscal Personal Median School Unemployment
Year Population (1) Income (2) Age (3) Enrollment (4) Rate (5)
2015 67,656 28,379$ 43.31 8,301 8.4
2014 66,956 28,283$ 43.18 8,474 8.7
2013 67,303 28,295$ 42.99 8,554 13.7
2012 68,392 27,059$ 42.89 8,672 14.5
2011 67,412 25,986$ 42.50 8,765 14.6
2010 67,784 25,650$ 40.08 9,016 14.8
2009 67,561 26,020$ 39.69 9,298 15.3
2008 67,145 25,775$ 40.56 9,533 7.7
2007 66,305 24,914$ 36.60 9,915 7.9
2006 65,855 23,847$ 38.30 9,898 8.1
(1) Bureau of Economic Analysis, US Department of Commerce.
(2) Bureau of Economic Analysis, US Department of Commerce.
(3) NC Office of State Budget and Management.
(4) North Carolina Department of Public Instruction (Final ADM). Does not include county charter school students.
(5) NC Department of Commerce, Labor and Economic Analysis Division.
RUTHERFORD COUNTY, NORTH CAROLINA
Demographic and Economic Statistics
Last Ten Fiscal Years
71
Ta
ble
10
Bu
sin
ess-
typ
e A
ctiv
itie
s
Po
pu
lati
on
Gen
era
lT
ota
lP
erce
nta
ge
Fis
cal
in t
ho
usa
nd
sO
bli
ga
tio
nIn
stall
men
t C
ap
ital
Rev
olv
ing
Ca
pit
al
Pri
ma
ryo
f P
erso
na
lP
er
Yea
r(E
stim
ate
d)
Bo
nd
s P
urc
hase
(1)
Lea
ses
Fu
nd
- D
EN
RL
ease
sG
ov
ern
men
tIn
com
e (2
) C
ap
ita
(2
)
20
15
67
3,5
82
,00
0$
37,9
06,8
77
$
1,3
43,8
65
$
198,8
40
$
1
88
,09
7$
43
,21
9,6
79
$
not
avai
lab
le6
45
.07
$
20
14
67
3,9
32
,00
0$
40,4
83,0
26
$
1,2
79,4
09
$
215,4
10
$
3
05
,43
8$
46
,21
5,2
83
$
2.4
5%
68
9.7
8$
20
13
68
4,1
60
,00
0$
43,7
29,8
78
$
1,4
94,9
93
$
231,9
80
$
-
$
49
,61
6,8
51
$
2.6
2%
72
9.6
6$
20
12
68
4,4
90
,00
0$
48,0
52,8
54
$
1,2
35,6
26
$
248,5
50
$
2
4,3
79
$
54
,05
1,4
09
$
2.8
5%
79
4.8
7$
20
11
67
4,8
20
,00
0$
50,6
01,7
31
$
2,3
85,1
02
$
265,1
20
$
1
74
,06
7$
58
,24
6,0
20
$
3.2
2%
86
9.3
4$
20
10
63
7,0
35
,00
0$
54,9
11,2
71
$
3,2
40,0
00
$
281,6
90
$
4
02
,33
0$
65
,87
0,2
91
$
3.7
6%
1,0
45
.56
$
20
09
63
7,7
20
,00
0$
58,0
74,8
56
$
4,7
58,5
37
$
298,2
60
$
6
21
,29
9$
71
,47
2,9
52
$
4.1
6%
1,1
34
.49
$
20
08
63
9,9
75
,00
0$
57,6
68,4
67
$
3,9
63,3
43
$
314,8
30
$
6
67
,63
2$
72
,58
9,2
72
$
4.1
8%
1,1
52
.21
$
20
07
64
10
,67
5,0
00
$
44,9
53,6
77
$
2,2
74,2
11
$
331,4
00
$
5
77
,39
7$
58
,81
1,6
85
$
3.4
6%
91
8.9
3$
20
06
64
13
,01
0,0
00
$
41,1
04,4
19
$
1,8
76,2
14
$
-$
6
88
,42
6$
56
,67
9,0
59
$
3.4
8%
88
5.6
1$
Sou
rce:
R
uth
erfo
rd C
ou
nty
Rev
enu
e D
epar
tmen
t
Note
: D
etai
ls r
egar
din
g t
he
Cou
nty
's o
uts
tan
din
g d
ebt
can
be
found i
n t
he
note
s to
the
finan
cial
sta
tem
ents
.
(1)
Incl
ud
es c
erti
fica
tes
of
par
tici
pat
ion
an
d p
rivat
e p
lace
men
t deb
t.
(2)
See
th
e D
emogra
ph
ic a
nd
Eco
nom
ic S
tati
stic
s p
age
for
per
sonal
inco
me
and p
opula
tion d
ata.
Go
ver
nm
enta
l A
ctiv
itie
s
RU
TH
ER
FO
RD
CO
UN
TY
, N
OR
TH
CA
RO
LIN
A
Ra
tio
of
Ou
tsta
nd
ing
Deb
t b
y T
yp
e
La
st T
en F
isca
l Y
ears
72
Table 11
Employer Employees Rank Employees Rank
Rutherford County Schools(1)
1000+ 1 1000+ 1
Wilson Medical Center Inc (Rutherford Hospital) 500-999 2 500-999 3
County Of Rutherford 500-999 3 250-499 7
American Greetings Corporation 250-499 4 250-499 6
Isothermal Community College 250-499 5 250-499 8
Wal-Mart Associates Inc 250-499 6 1000+ 2
Rock Tenn Services Inc 250-499 7 250-499
Ingles Markets Inc 250-499 8 100-249 18
The Timken Company 100-249 9 100-249
Watts Regulator Company (A Corp) 100-249 10 100-249 9
Rumbling Bald Resort 100-249 11 250-499 23
Ameridial Inc 100-249 12 100-249
Town Of Forest City 100-249 13 100-249 19
Rutherford Management Corp 100-249 14 100-249 20
Parker Hannifin Corporation 100-249 15 100-249 10
Trelleborg Coated Systems Us Inc (formerly Reeves) 100-249 16 100-249 16
Century Employer Organization Llc 100-249 17 100-249
Professional Transportation Inc 100-249 18 100-249
Duke Energy Carolinas Llc 100-249 19 100-249 24
Lowes Home Centers Inc 100-249 20 100-249
Aallied Die Casting Co Of Nc 100-249 21 100-249
Parton Lumber Co Inc 100-249 22 100-249
Heritage Healthcare Inc 100-249 23 100-249
Peoplease Corporation 100-249 24 100-249
White Oak Manor Inc 100-249 25 100-249
ACS Business Process Solutions Inc. 500-999 4
National Textiles 500-999 5
The Torrington Company 100-249 11
A G Industries Inc 100-249 12
All American Homes of NC LLC 100-249 13
United Southern Industries Inc. 100-249 14
Aeroequip Corp. 100-249 15
Tanner Companies LTD 100-249 17
Cone Jacquards LLC 100-249 21
AFA Acquisition Group 100-249 22
Willow Ridge of NC LLC 100-249 25
NC Department of Commerce, Labor and Economic Analysis Division.
(1) includes all permanent full and part-time positions
Rutherford County, North Carolina
Principal Employers
Current Year and Nine Years Ago
20062015
73
Table 12RUTHERFORD COUNTY BOARD OF EDUCATION
Full-Time Equivalent Employees by Function
Last Ten Fiscal Years
Operations &Instructional Programs Support Services Food Services Total
2015 931 47 213 1,191
2014 934 45 207 1,186
2013 940 46 207 1,193
2012 985 46 218 1,249
2011 1,086 44 179 1,309
2010 1,106 52 182 1,340
2009 1,191 55 170 1,416
2008 1,195 54 173 1,422
2007 1,194 55 184 1,433
2006 1,192 56 187 1,435
Source: Rutherford County Board of Education Human Resources Department
74
Table 13
School 2015 2014 2013 2012 2011 2010
Elementary
Cliffside
Square feet 58,844 58,844 58,844 58,844 58,844 58,844
Ninth month membership 333 357 384 382 399 417
Forest City/Dunbar
Square feet 80,881 80,881 80,881 80,881 80,881 80,881
Ninth month membership 448 438 463 449 473 449
Ellenboro
Square feet 93,786 93,786 93,786 93,786 93,786 93,786
Ninth month membership 614 629 595 594 567 582
Forrest Hunt
Square feet 62,352 62,352 62,352 62,352 62,352 62,352
Ninth month membership 406 379 407 415 414 421
Harris
Square feet 76,568 76,568 76,568 76,568 76,568 76,568
Ninth month membership 465 464 465 510 496 533
Mt. Vernon/Ruth
Square feet 62,500 62,500 62,500 62,500 62,500 62,500
Ninth month membership 289 282 279 281 286 279
Pinnacle
Square feet 72,084 72,084 72,084 72,084 72,084 72,084
Ninth month membership 309 316 321 300 332 372
Rutherfordton
Square feet 83,923 83,923 83,923 83,923 83,923 51,034
Ninth month membership 347 347 344 350 366 379
Spindale
Square feet 61,785 61,785 61,785 61,785 61,785 61,785
Ninth month membership 397 416 404 412 421 447
Sunshine
Square feet 62,221 62,221 62,221 62,221 62,221 62,221
Ninth month membership 198 204 224 245 260 243
RUTHERFORD COUNTY BOARD OF EDUCATION
School Building Information
75
Table 13
School 2015 2014 2013 2012 2011 2010
Middle
Chase
Square feet 101,619 101,619 101,619 101,619 101,619 101,619
Ninth month membership 679 724 718 691 687 662
East
Square feet 105,574 105,574 105,574 105,574 105,574 105,574
Ninth month membership 600 617 621 646 632 662
RS
Square feet 149,946 149,946 149,946 149,946 149,946 149,946
Ninth month membership 639 702 716 742 703 728
High
Chase
Square feet 164,031 164,031 164,031 164,031 164,031 164,031
Ninth month membership 780 732 743 793 801 790
East
Square feet 165,345 165,345 165,345 165,345 165,345 165,345
Ninth month membership 688 739 731 738 737 720
RS Central
Square feet 244,741 244,741 244,741 244,741 244,741 244,741
Ninth month membership 844 872 877 872 939 948
Source: District records
Note: 265 additional students attended the alternative or early college schools.
RUTHERFORD COUNTY BOARD OF EDUCATION
School Building Information (Continued)
76
Table 14
Fiscal Year Student Percentage Pupil/
Ended Average Daily Cost Per Change In Teaching Teacher
June 30, Expenses Membership Pupil Per Pupil Cost Staff Ratio
2015 76,443,275$ 8,301 9,209$ 6.00% 546 15.2
2014 73,621,823$ 8,474 8,688$ -4.16% 547 15.5
2013 77,543,351$ 8,554 9,065$ 2.28% 549 15.6
2012 76,858,060$ 8,672 8,863$ -2.86% 579 15.0
2011 79,969,255$ 8,765 9,124$ 4.81% 605 14.5
2010 78,485,495$ 9,016 8,705$ -1.26% 634 14.2
2009 81,969,004$ 9,298 8,816$ 4.26% 656 14.2
2008 80,611,748$ 9,533 8,456$ 8.04% 635 15.0
2007 77,608,050$ 9,915 7,827$ 4.11% 565 17.5
2006 74,411,641$ 9,898 7,518$ 6.59% 558 17.7
Source: NC Department of Public Instruction, Statistical Profile, Current Expense Expenditures by Source of Funds
RUTHERFORD COUNTY BOARD OF EDUCATION
Operating Statistics
Last Ten Fiscal Years
77
Table 15
Fiscal Year
Ended
June 30, Minimum Maximum Average
2015 34,100$ 64,380$ 41,840$
2014 31,900$ 61,668$ 41,727$
2013 31,900$ 62,410$ 41,755$
2012 31,530$ 64,580$ 42,873$
2011 31,530$ 65,850$ 43,469$
2010 31,530$ 65,850$ 44,555$
2009 31,430$ 65,750$ 45,115$
2008 30,650$ 65,060$ N/A
2007 26,610$ 55,600$ N/A
2006 26,210$ 57,230$ N/A
Instruction
Source: Rutherford County Board of Education Finance Department, NC Department of Public
RUTHERFORD COUNTY BOARD OF EDUCATION
Teacher Salaries
Last Ten Fiscal Years
The above tabulation represents total salaries including both state base salary and local teacher
supplement. Longevitity payments (ranging from 1.5% to 4.5% of the annual salary for teachers with
10 or more years of service) were paid separately through the 2013-2014 school year. Beginning in
2014-2015, longevity became a part of the state teacher salary schedule, hence included in the totals.
Bonus payments or payments for performing extra duties are not included.
78
Table 16
Fiscal Year Sites and Furniture Debt Service
Ended Building and Principal
June 30, Improvements Equipment Vehicles & Interest Total
2015 33,475$ 474,965$ 83,772$ 1,854,947$ 2,447,159$
2014 129,460$ 909,583$ 173,072$ 1,854,804$ 3,066,919$
2013 516,561$ 8,667$ 384,598$ 1,895,178$ 2,805,004$
2012 548,308$ 3,362$ 26,329$ 198,759$ 776,758$
2011 -$ 106,435$ 86,356$ 604,880$ 797,671$
2010 749,007$ 1,449,143$ 857,414$ 510,479$ 3,566,043$
2009 9,572,224$ 1,763,607$ 863,064$ 588,864$ 12,787,759$
2008 5,135,641$ 1,144,660$ 53,562$ 450,759$ 6,784,622$
2007 3,631,608$ 487,180$ 1,277,766$ 715,174$ 6,111,728$
2006 3,556,748$ 264,350$ 161,228$ 303,060$ 4,285,386$
Source: Rutherford County Board of Education Finance Department
RUTHERFORD COUNTY BOARD OF EDUCATION
Capital Projects And Expenditures
Last Ten Fiscal Years
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81
COMPLIANCE SECTION
This page intentionally left blank.
Certified Public Accountants
ANDERSON SMITH & WIKE PLLCA S W
Report On Internal Control Over Financial Reporting And On Compliance and Other Matters Based On An Audit Of Financial Statements Performed in Accordance With
Government Auditing Standards
Independent Auditors’ Report
To the Chairman and Members of the Rutherford County Board of Education Forest City, North Carolina We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of Rutherford County Board of Education, North Carolina, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the basic financial statements, and have issued our report thereon dated October 15, 2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Rutherford County Board of Education’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Rutherford County Board of Education’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Board’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Page 82
Compliance and Other Matters As a part of obtaining reasonable assurance about whether the Rutherford County Board of Education’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Gastonia, North Carolina October 15, 2015
Page 83
Certified Public Accountants
ANDERSON SMITH & WIKE PLLCA S W
Report on Compliance With Requirements Applicable to Each Major Federal Program and Internal Control over Compliance in Accordance with OMB
Circular A-133 and the State Single Audit Implementation Act
Independent Auditors’ Report To the Chairman and Members of the Rutherford County Board of Education Forest City, North Carolina Report on Compliance for Each Major Federal Program We have audited the Rutherford County Board of Education, North Carolina, compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement and the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission, that could have a direct and material effect on each of Rutherford County Board of Education’s major federal programs for the year ended June 30, 2015. The Rutherford County Board of Education’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Rutherford County Board of Education’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and the State Single Audit Implementation Act. Those standards, OMB Circular A-133, and the State Single Audit Implementation Act require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Rutherford County Board of Education’s compliance with those requirements and performing such other procedures, as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on the Rutherford County Board of Education’s compliance. Page 84
Opinion on Each Major federal Program In our opinion, the Rutherford County Board of Education complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2015. Report on Internal Control Over Compliance Management of the Rutherford County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Rutherford County Board of Education’s internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of the internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Rutherford County Board of Education’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance; such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.
Gastonia, North Carolina October 15, 2015 Page 85
Certified Public Accountants
ANDERSON SMITH & WIKE PLLCA S W
Report on Compliance With Requirements Applicable To Each Major State Program and Internal Control over Compliance in Accordance with Applicable Sections of OMB
Circular A-133 and the State Single Audit Implementation Act
Independent Auditors’ Report To the Chairman and Members of the Rutherford County Board of Education Forest City, North Carolina Report on Compliance for Each Major State Program We have audited the Rutherford County Board of Education, North Carolina, compliance with the types of compliance requirements described in the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission, that could have a direct and material effect on each of the Rutherford County Board of Education’s major State programs for the year ended June 30, 2015. The Rutherford County Board of Education’s major State programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contract, and grants applicable to its state programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Rutherford County Board of education’s major state programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States; and applicable sections of OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, as described in the Audit Manual for Governmental Auditors in North Carolina and the State Single Audit Implementation Act. Those standards, OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations and the State Single Audit Implementation Act require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major State program occurred. An audit includes examining, on a test basis, evidence about Rutherford County Board of Education’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major state program. However, our audit does not provide a legal determination on the Rutherford County Board of Education’s compliance. Page 86
Opinion on Each Major State Program In our opinion, the Rutherford County Board of Education complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major State programs for the year ended June 30, 2015. Report on Internal Control Over Compliance
Management of the Rutherford County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Rutherford County Board of Education’s internal control over compliance with the types of requirements that could have a direct and material effect on a major State program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major state program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Rutherford County Board of Education’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a State program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a State program will not be prevented, detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a state program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.
Gastonia, North Carolina October 15, 2015 Page 87
Page 88
Rutherford County Board of Education, North Carolina Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2015
Section I. Summary of Auditors’ Results
Financial Statements Type of auditors’ report issued: Unmodified ` Internal control over financial reporting:
Material weakness(es) identified? yes X no
Significant Deficiency(s) identified that are not considered to be material weaknesses? yes X none reported Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major federal programs:
Material weakness(es) identified? yes X no
Significant Deficiency (s) identified that are not considered to be material weaknesses? yes X none reported
Type of auditor’s report issued on compliance for major federal programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133? yes X no Identification of major federal programs:
CFDA Numbers Names of Federal Program or Cluster
84.010 Title I 84.367 Improving Teacher Quality
Page 89
Rutherford County Board of Education, North Carolina Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2015
Dollar threshold used to distinguish between Type A and Type B Programs: $ 383,464 Auditee qualified as low-risk auditee? X yes no
State Awards Internal control over major State programs:
Material weakness(es) identified? yes X no
Significant Deficiency (s) identified that are not considered to be material weaknesses? yes X none reported Type of auditors’ report issued on compliance for major State programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with the State Single Audit Implementation Act? yes X no Identification of major State programs: Program Name State Public School Fund NC Pre-K Program
Page 90
Rutherford County Board of Education, North Carolina Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2015
Section II. Financial Statement Findings
None reported.
Section III. Federal Award Findings and Questioned Costs
None reported.
Section IV. State Award Findings and Questioned Costs
None reported.
Page 91
Rutherford County Board of Education, North Carolina Corrective Action Plan
For the Year Ended June 30, 2015
Section II. Financial Statement Findings
None reported
Section III. Federal Award Findings and Questioned Costs
None reported
Section IV. State Award Findings and Questioned Costs
None reported
Page 92
Rutherford County Board of Education, North Carolina Summary Schedule of Prior Audit Findings
For the Year Ended June 30, 2015
Section II. Financial Statement Findings
None reported.
Section III. Federal Award Findings and Questioned Costs
None reported.
Section IV. State Award Findings and Questioned Costs
None reported.
State/
Federal Pass-through
Grantor/Pass-through CFDA Grantor's
Grantor/Program Title Number Number Expenditures
Federal Grants:
Cash Programs:
U. S. Department of Agriculture
Food and Nutrition Service
Passed-through the N.C. Department of Public Instruction:
Child Nutrition Cluster:
School Breakfast Program 10.553 831,390$
National School Lunch Program - Cash Assistance 10.555 2,786,312
National School Lunch Program - Non-cash (Commodities) 10.555 269,627
Passed-through the N.C. Department of Heath and Human Services:
Division of Public Health:
Summer Food Service Program for Children 10.559 4,886
Total Child Nutrition Cluster: 3,892,215
Total U. S. Department of Agriculture 3,892,215
U.S. Department of Education
Office of Elementary and Secondary Education
Passed-through the N.C. Department of Public Instruction:
Grants to Local Education - Basic and Concentration
Title I Cluster:
Educationally Deprived Children 84.010 PRC 050 2,974,834
School Improvement Cluster
School Improvement - Title I 84.010 PRC 105 197,118
Child Nutrition Equipment 10.579 PRC 053 13,778
Safe and Drug Free Schools and Communities 84.186 PRC 048 & 058 907
21st Century Community Learning Centers 84.287 PRC 110 551,330
Title III, Language Acquisition 84.365 PRC 104 24,006
Race to the Top - ARRA 84.395 PRC 154 36,856
Improving Teacher Quality Cluster
- Teacher Quality Enhancement 84.367 PRC 103 341,581
Office of Special Education and Rehabilitative Services
Passed-through the N.C. Department of Public Instruction:
Special Education Cluster:
Individuals with Disabilities Education Act
Education of the Handicapped 84.027 PRC 060 1,834,392
Preschool Handicapped 84.173 PRC 049 62,197
Targeted Assistance 84.027 PRC 118 10,459
Targeted Assistance 84.027 PRC 119 652
Total Special Education Cluster: 1,907,700
State Personnel Development 84.323 PRC 082 38,469
Page 93
For the Year Ended June 30, 2015
RUTHERFORD COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
(Continued)
v
State/
Federal Pass-through
Grantor/Pass-through CFDA Grantor's
Grantor/Program Title Number Number Expenditures
Education for Homeless Children and Youth Cluster
Education of Homeless Children and Youth 84.196 PRC 026 33,400
Passed-through the N.C. Department of Public Instruction:
Carl D. Perkins Vocational and Applied Technology
Education Act Amendments of 1990
Basic Grants to States
- Program Development 84.048 PRC 017 130,472
Total U. S. Department of Education 6,250,451
Office of the Assistant Secretary for Postsecondary Education
Passed-through the N.C. Department of Public Instruction:
Gear-Up Program 84.344 90,687
Rural Education 84.358 PRC 109 171,693
U.S. Department of Health and Human Services
Direct Programs:
Head Start 93.600 2,316,066
U.S. Department of Defense
Direct Program:
ROTC 12.000 61,005
Total federal assistance 12,782,117
State Grants:
N.C. Department of Public Instruction:
State Public School Fund 47,858,481
Driver Training - SPSF PRC 012 179,069
School Technology Fund - SPSF PRC 015 155,762
Vocational Education
- State Months of Employment PRC 013 2,673,346
- Program Support Funds PRC 014 122,807
Textbooks - Noncash -
State Appropriations- School Buses - Noncash 40,380
Total N.C. Department of Public Instruction 51,029,845
Page 94
For the Year Ended June 30, 2015
RUTHERFORD COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
(Continued)
State/
Federal Pass-through
Grantor/Pass-through CFDA Grantor's
Grantor/Program Title Number Number Expenditures
N.C. Department of Health and Human Services:
Division of Child Development:
NC Pre-Kindergarten Program 1,334,390
Division of Public Health
School Nurse Funding Initiative 250,000
Smart Start 67,084
Total N.C. Department of Health and Human Services 1,651,474
Total State assistance 52,681,319
Total federal and State assistance 65,463,436$
Page 95
The accompanying schedule of expenditures of federal and State awards includes the federal and State grant activity of
Rutherford County Board of Education and is presented on the modified accrual basis of accounting. The information in this
schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of State, Local Governments, and
Non-Profit Organizations and State Single Audit Implementation Act. Therefore some amounts presented in this schedule may
differ from amounts presented in, or used in the preparation of the basic financial statements.
RUTHERFORD COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
For the Year Ended June 30, 2015