Pequea Valley School District 2020 Audit December 1

Pequea Valley School District 2020 Audit December 1, 2020

Introduction Independent Auditors’ Report for the year ended June 30, 2020 Management’s Discussion and Analysis. Unaudited information prepared by John Bowden, Chief of Finance and Operations. Government Wide Statements - Full accrual basis statements. For Management Use Only.

Governmental Activities Highlights Capital asset additions of $273 k included Audio Equipment for Salisbury and PVIS, Laser Cutting Engraving System, and Technology Upgrades. $3. 61 M of principal payments made during the year. Ending balance of outstanding debt at June 30, 2020 is $2. 97 M. Net position increased by $1. 06 M as of June 30, 2020. For Management Use Only.

PSERS Rates Employer Contribution Rates 2019 -2020 34. 29% 2020 -2021 34. 51% 2021 -2022 34. 95% 2022 -2023 35. 62% 2023 -2024 36. 12% As of 6/30/19, PSERS Plan was approximately 55. 7% funded (about $46. 8 billion unfunded liability) PV’s proportionate share is. 0958% with a liability of $44, 818, 600 The PSERs OPEB Plan is 5. 7% funded as of June 30, 2019 PV’s portion of the unfunded OPEB liability is $2, 038, 000 For Management Use Only.

Governmental Activities Historical Analysis June 30, 2018 June 30, 2019 June 30, 2020 Current Assets 18, 789, 686 19, 338, 311 20, 419, 851 Noncurrent Assets 39, 614, 303 38, 108, 162 36, 206, 492 Total Assets 58, 403, 989 57, 446, 473 56, 626, 343 9, 489, 310 8, 922, 766 8, 657, 807 8, 438, 368 8, 061, 886 7, 805, 398 Noncurrent Liabilities 56, 668, 158 53, 138, 580 50, 352, 942 Total Liabilities 65, 106, 526 61, 200, 466 58, 158, 340 740, 000 847, 000 1, 741, 000 2, 046, 773 4, 321, 773 5, 384, 810 Deferred Outflows Current Liabilities Deferred Inflows Total Net Position For Management Use Only.

General Fund Results 2018 2019 2020 Actual 2020 Final Budget Local Revenues 27, 736, 091 28, 409, 142 29, 007, 788 28, 445, 348 State Revenues 8, 487, 247 8, 686, 447 8, 725, 158 8, 876, 770 Federal Revenues 1, 094, 343 1, 273, 617 1, 393, 117 1, 356, 484 37, 317, 681 38, 369, 206 39, 126, 063 38, 678, 602 2. 9% 2. 8% 2. 0% 19, 132, 698 20, 454, 122 21, 056, 721 21, 333, 756 Instructional Student Support 3, 710, 573 3, 544, 641 4, 119, 427 4, 159, 325 Admin & Financial Support 3, 258, 967 3, 126, 982 3, 477, 993 3, 342, 387 Operation & Maintenance 2, 398, 950 2, 691, 890 2, 756, 499 2, 645, 731 Student Transportation 2, 395, 086 2, 535, 786 2, 174, 085 2, 480, 945 749, 485 955, 379 1, 010, 610 687, 995 31, 645, 759 33, 308, 800 34, 595, 335 34, 650, 139 2. 8% 5. 3% 3. 9% 5, 671, 922 5, 060, 406 4, 530, 728 Total Revenues % Increase vs. Prior Year Instructional Services Other Total Expenditures % Increase vs. Prior Year Excess of Revenues over Expenditures For Management Use Only. 4, 028, 463

General Fund Results 2018 2019 2020 Actual 2020 Final Budget Excess of Revenues over Expenditures 5, 671, 922 5, 060, 406 4, 530, 728 4, 028, 463 (4, 630, 542) (6, 145, 703) (3, 736, 400) (4, 203, 053) 314, 553 57, 901 188, 195 -0 - (4, 315, 989) (6, 087, 802) (3, 548, 205) (4, 203, 053) Change in Fund Balance 1, 355, 933 (1, 027, 396) 982, 523 (174, 590) Ending Fund Balance 12, 590, 957 11, 563, 561 12, 546, 084 Transfers Out Other Sources Total Net Other Financing Uses For Management Use Only.

General Fund – Expense Analysis $ 35 000 $ 30 000 [CELLREF] 8. 17% [CELLREF] $ 25 000 [CELLREF] [CELLREF] Other [CELLREF] Student Transportation [CELLREF] Operation & Maintenance $ 20 000 Admin & Financial Suppor $ 15 000 $ 10 000 Instructional Student Support [CELLREF] 2019 2020 $ 5 000 $2018 For Management Use Only. Instructional Services

Capital Projects Fund 2019 -20 28, 269 371, 316 Ending Fund Balance 2, 053, 277 2018 -19 2, 035, 119 570, 070 2, 396, 324 2017 -18 18, 078 1, 158, 541 931, 275 Fiscal Year For Management Use Only. Fund Additions Expenditures

Fund Balance Components Capital Projects Fund 171, 689 -0 - General Fund Nonspendable Prepaid Expenses Committed (Board) for Future Retirement Contributions Committed (Board) for Future Health Care Costs Assigned for Future Capital Outlays Unassigned (Residual General Fund Balance) Total For Management Use Only. 5, 300, 000 -0 - 2, 900, 000 -0 - 2, 053, 277 4, 174, 395 -0 - 17, 816, 817 2, 053, 277

Food Service Fund 2017 -18 2018 -19 2019 -20 Operating Revenues 210, 794 248, 261 176, 911 Non-operating Revenues 570, 146 534, 054 423, 232 Other Financing Sources -0 - 4, 203 -0 - Total Revenues 780, 940 786, 518 600, 143 Salaries and Benefits 238, 274 216, 460 261, 348 Purchased Services 192, 062 215, 567 176, 018 Supplies 298, 050 282, 464 230, 109 19, 194 747, 580 733, 685 686, 669 33, 360 52, 833 (86, 526) Depreciation Total Expenses Change in Net Position For Management Use Only.

Internal Service Fund 2017 -18 2018 -19 2019 -20 Charges for Services 2, 910, 942 3, 279, 770 3, 935, 870 Employee Benefits 2, 910, 942 3, 204, 737 4, 010, 904 3, 377 16, 437 4, 209 500, 000 -0 - 503, 377 91, 470 (70, 825) Non Operating Revenues Interfund Transfers Change in Net Position For Management Use Only.

Other Financial Statement Components Notes to Financial Statements Note 1 - Summary of Significant Accounting Policies Note 10 - Long-Term Debt Note 14 - Defined Benefit Pension Plan Note 15 - Other Postemployment Benefits (OPEB) Supplemental Schedules provide additional detail to basic financial statements Single Audit (Compliance Audit of the School District’s Federal Grants) and Related Reports For Management Use Only.

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

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

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