ML050660048
| ML050660048 | |
| Person / Time | |
|---|---|
| Site: | Brunswick  |
| Issue date: | 06/30/2004 |
| From: | Brunswick County, NC |
| To: | Emch R Division of Regulatory Improvement Programs |
| Emch R, NRR/DRIP/RLEP, 415-1590 | |
| References | |
| -RFPFR | |
| Download: ML050660048 (114) | |
Text
3 p p.-p D U a B a a U S For the fiscal year ended June 30, 2004 BRUNSWICK COUNTY SCHOOLS Bolivia, North Carolina BRUNSWICK COUNTY BOARD OF EDUCATION COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED June 30, 2004 BOLIVIA, NORTH CAROLINA Prepared by the Finance Department i
Page INTRODUCTORY SECTION* Letter of Transmittal vi i List of Principal Officials xi 41 Organizational Chart xr7 jj Certificates of Excellence l Association of School Business Officials xii i Government Finance Officers Association xiv v IINANCIAL SECTION Independent Auditor's Report 1 Management's Discussion and Analysis 4 Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets 13 Statement of Activities 15 Fund Financial Statements:
xi Balance Sheet-Governmental Funds 16 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 17 Statement of Revenues, Expenditures and Changes in Fund Balances -Governmental Funds 18 As Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of 4 Governmental Funds to the Statement of Activities 19 4 Statement of Revenues, Expenditures and Changes In Fund Balances -Budget and Actual -t General Fund and Annually Budgeted Major Special Revenue Fund 20 Statement of Net Assets -Proprietary Fund 22 Statement of Revenues, Expenses and Changes in Fund Net Assets -Proprietary Fund 23 4 Statement of Cash Flows -Proprietary Fund 24 4 Statement of Net Assets -Fiduciary Fund 25 Statement of Changes in Fiduciary Net Assets -Fiduciary Fund 26 Notes to Basic Financial Statements 29 Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet -Non-Major Governmental Funds 48 0* *i .
Page £FINANCIAL SECTION (Continued)
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Non-Major Ad Governmental Funds 49 £Schedule of Individual Schools Fund Balance Sheet details 52 if Schedule of Individual Schools Fund Revenues, Expenditures and Changes in Fund B Balances details 54 6 Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual -Federal Grants Fund 56 Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual -g Capital Outlay Fund 59 Schedule of Revenues and Expenses -Budget (Accrual Basis) and Actual -Child S Nutrition Fund 63 S Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget (Modified Accrual S Basis) and Actual -Private-Purpose Trust Fund 67 5 Schedule of Capital Assets by Function and Source 70 Schedule of Changes in Capital Assets -by Sources 71 ISTATISTICAL SECTION (Unaudited) e General School System Revenues by Source -Govemment-Wide (Governmental Activities) 73 General School System Expenses by Function -Government-Wide (Governmental Activities) 74 Sources of Governmental Fund Type Revenues 75 General Fund Expenditures by Function in Total 76 General Fund Expenditures by Function Per Pupil 77 O Special Revenue (State and Federal) Fund Expenditures by Function in Total 78 c Special Revenue (State and Federal) Fund Expenditures by Function per Pupil 79 Average Daily Membership 80 Sources of Capital Outlay Revenues 81 Capital Outlay Expenditures in Total 82 Capital Outlay Expenditures Per Pupil 83 Demographic Statistics 84 Property Value, Construction and Bank Deposits 85 M: MENE Page COMPLIANCE SECTION Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based On an Audit of the Basic Financial Statements Performed in Accordance with Government Auditing Standards 87 Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Federal Program and on Internal Control Over Compliance In Accordance with OMB Circular A-1 33 and the State Single Audit Implementation Act 89 Independent Auditors Report on Compliance with Requirements Applicable to Each Major State Program and on Internal Control Over Compliance in Accordance with Applicable Sections of OMB Circular A-1 33 and the State Single Audit Implementation Act .91 Schedule of Findings and Questioned Costs 93 Corrective Action Plan 95 Summary Schedule of Prior Audit Findings 96 Schedule of Expenditures of Federal and State Awards 97 Notes to the Schedule of Expenditures of Federal and State Awards 100.. .. .Iv B nsw County Schools'U v Board Members to Shirley Babson, Chair l I tiie Gore, ce-chair s Jimmy Hobbs* Olaf Thorsen* John Thompson Me* Dpivilonlend,* Georgeffackin, Ass Supt.4 Operations Ann B. Hardy, MPA, CPA, M Assi Supt Finance &0 Administration 1S John Atichaux Exec. Dir.Human Resources* Brunsi'kA Con 30 Beh;/EleElemeii
< Bolivia Elemen 30 Brunswick Lea,* Jessie Mtae Ilnoi Leland Middle Lincoln Elemet Nortl, Brunswih Shallotte Middl South Brunswil South Brunswio Southport Eleir Supply Element Union Element FK~rginia 1f711iaj W accamaw Ele_ West Brunsvicn nty Schools vrary tary rrning Center ,zroe Elementar Itary e'k high Katie McGee, Ed.D., Stiperintendent (IInterim)
LETTER OF TRANSMITTAL TO THE MEMBERS OF THE BRUNSWICK COUNTY BOARD OF EDUCATION AND CITIZENS OF BRUNSWICK COUNTY, NORTH CAROLINA SEPTEMBER 14,2004 In compliance with the Public School Laws of North Carolina, the Comprehensive Annual Financial Report of the Brunswick County Board of Education (Board), operating as 0Brunswick County Schools," for the fiscal year ended June 30, 2004, is herewith submitted.
The accuracy, completeness and clarity of the financial report are the responsibility of the Board. The accompanying financial report has been prepared in accordance with Generally Accepted Accounting Principles by the Finance Department.
We believe the data presented in this financial report is accurate in all material respects and 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 a complete understanding of the Board's financial activities have been included.The comprehensive annual financial report is presented in four sections:
Introductory, Financial, Statistical and Compliance.
The Introductory section, which is unaudited, contains this transmittal letter, a list of the Board members and principal officials, the organizational chart and the Certificates of Achievement for Excellence in Financial Reporting awarded by the Government Finance Officers Association and of Excellence in Financial Reporting awarded by the Association of School Business Officials for the 2003 Comprehensive Annual Financial Report. The Financial section includes the auditor's opinion, management's discussion and analysis, the basic financial statements and the combining and individual fund financial statements and schedules arranged by fund type. The Statistical section includes several tables of unaudited data providing a ten-year financial history of the Board.Finally, the Compliance section includes reports and schedules required by Government Auditing Standards, U.S. Office of Management and Budget Circular A-133, Audits of States. Local Governments, and Non-Profit Organizations and the State of North Carolina's Single Audit Implementation Act.Generally accepted accounting principles (GAAP) require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The Brunswick County Board of Education's MD&A can be found immediately following the report of the independent auditors.vi rl, High kA- AMiddle ientary rary arly Pnson Elementar mentaty k High m 35 Referentdut Drive
- Bolivia, North Carolina 28422 * (910) 253-2900 rFLr- (910) 253-2983 REPORTING ENTITY The Board, a local education agency empowered by the North Carolina General Statutes, has responsibility and control over all activities related to public school education in Brunswick County, North Carolina.
Because the members of the Board are elected officials of Brunswick County and have the authority to designate management, have the ability to significantly influence operations and are primarily accountable for fiscal matters, the. Board is recognized as a separate governmental reporting entity under definition by the Governmental Accounting Standards Board. The Board has limited borrowing authority, can not levy taxes and is required to maintain accounting records in a uniform state format established by the State's General Assembly.
The Board receives government funding from local, State and federal sources and must comply with established legal requirements of each funding entity.ECONOMIC CONDITION AND FUTURE OUTLOOK Brunswick County's diversified economy includes agriculture, manufacturing and non-manufacturing industries.
The majority of the county's economy is split between two industries:
agriculture and non-manufacturing, of which service, trade and tourism are the strongest in this area. Brunswick County has approximately eighty four thousand residents, which ranks the county as the 31st most populous county in North Carolina.The future economic outlook of Brunswick County is positive.
Tourism continues to grow each year and with neighboring counties' growth potential leveling out, trade and service companies are looking to Brunswick County for development.
The county's growth increases the educational needs of the county's children.
The Board of County Commissioners has responded to these needs by adopting the 2004-2005 fiscal budget in which $22.1 million is appropriated for general fund expenditures and $4.2 million for capital outiay.MAJOR INITIATIVES The Board of Education in Brunswick County adopted the Superintendent's Critical Performance Goals as guiding principles and evaluative criteria for 2003-2004.
The administration is working to improve student achievement throughout the school system by providing effective instruction.
The system is developing a cadre of instructional leaders and implementing specific programs to support achievement.
Expectations have been raised not only for students, but also for Board administrators and staff. A system-wide plan for staff development is being implemented and augmentation of existing remediation programs is being provided.The Board was honored to have twelve of sixteen schools receive recognition under the guidelines of the state accountability program (ABCs). Bolivia Elementary School, Southport Elementary School, Union Elementary School, Virginia Williamson Elementary School, Brunswick Learning Center, North Brunswick High School and South Brunswick High School achieved high growth status. Bolivia Elementary School and Jessie Mae Monroe Elementary School were recognized as schools of distinction with over eighty percent of students performing at grade level as measured by the state accountability program. Waccamaw Elementary School was recognized as a school of excellence with over ninety percent of students performing at grade level as measured by the state accountability program. Southport Elementary School, Union Elementary School and Virginia Williamson Elementary School were all recognized as a honor school of excellence with over ninety percent of students performing at grade level as well as meeting adequate yearly progress goals as outlined in the state plan. Finally, Bolivia Elementary School, South Brunswick Middle School, Southport Elementary School, Supply Elementary School, Union Elementary School, Virginia Williamson Elementary School, North Brunswick High School and South Brunswick High School all met adequate yearly progress..
vii The Board and administration continue to improve the perception of students, Board employees and citizens of Brunswick County by striving to establish a system of excellence in education.
To accomplish this, we will provide consistent, effective leadership and maintain a safe and orderly environment in all schools. The administration is working to improve internal and external communications with students, County residents and other school support organizations.
The system works to improve the attendance in the schools and reduce the number of students quitting school or becoming dependent on drugs by strengthening the dropout prevention and drug-free programs.The administration has increased the support services to at-risk students through additional remediation and a dropout prevention task force. The Board continuously seeks appropriate grants supporting improved education and services for the students of Brunswick County.The Board is improving operational services to students by developing and implementing preventive maintenance plans in operational programs.
The Administration strives to provide more efficient and effective transportation, as well as enhancing the nutrition services provided to our students.
The Board continues to strengthen personnel services through intensified recruitment of talented employees and refining procedural processes for employment.
The administration is working to provide improved and safer facilities for students by developing and implementing plans for the construction of new facilities and improvement of existing facilities.
The voters of Brunswick County approved a general obligation bond referendum November 1999 in the amount of $83.5 million to complete construction projects.
The projects are divided into three phases of construction to be completed during five years.The first phase consisted of the construction of the Jessie Mae Monroe Elementary School to serve the western part of the county and renovations of the three high schools for a total budget of $49.1 million. Phase two is expected to be complete September 2004 and consists of renovations to Lincoln Elementary, Southport Elementary, Waccamaw Elementary, Leland Middle and Union Elementary for a total budget of $19.5 million. The majority of the final phase of the construction program is expected to be complete December 2004 and includes renovations to Bolivia Elementary, Shallotte Middle and South Brunswick Middle. Phase three includes the construction of a new alternative school, which is currently being designed and is expected to open August 2006 for a total budget of $14.9 million.The Board and administration are working to update and revise the system-wide long-range facilities plan and recommend additional facilities for the county growth, as well as implement necessary preventive maintenance for existing facilities.
Funds were established in the fiscal year 2004-2005 budget to purchase land for a middle school.The Board continues to integrate technology into the school system. Each individual school and administrative unit in the County has been connected to a wide area network. All schools are now connected through a dark fiber network thus improving the Internet speed for all locations.
In addition, the high schools and the central office have distant learning technology.
The Board seeks to coordinate this technology into student's curriculum and connect outside educational programs through the Internet.In an effort to position the Brunswick County Schools as a leader among North Carolina School Systems in the incorporation of research-based best practices, the Board and administration have established a Business Advisory Council and five separate task forces -each made up of administrators, teachers, parents, community leaders and each with Board representation
-to study the issues facing the school system over the next decade and make recommendations to the Board in the areas of policy, school-based practices and procedures, staff development and resource management designed to address those issues. The Business Advisory Council is joined by the Dropout Prevention, Closing the Achievement Gap, Public Relations and Customer Service, Professional Workplace and'Fundamental Disconnect' Task Forces in bringing these issues to the forefront of local awareness and discussion.
FINANCIAL SYSTEM AND BUDGETARY CONTROLS The Board's accounts are organized in funds, each of which is considered a separate accounting entity, to record the allocation of and accounting for governmental resources for which they are spent and controlled.
Each individual viii fund accounting entity records their operations under a set of self-balancing accounts comprising of assets, £liabilities, fund equity, revenues and expenditures or expenses, as appropriate.
£The Board's funds are divided into three major classifications:
governmental, proprietary and fiduciary.
The governmental fund types include the general fund, the special revenue funds and the capital outlay fund. The i Board's enterprise fund is presented as a proprietary fund type. The scholarship (private-purpose trust) fund is 3 included as a fiduciary fund type of the Board. All governmental fund types are accounted for and reported on the modified accrual basis of accounting in accordance with G.S. 115C-440(b).
The proprietary fund type and fiduciary fund are presented in the financial statement on the accrual basis of accounting.
North Carolina General Statutes also require all governmental units to adopt a balanced budget by July 1st of each year. The Board's annual budget resolution authorizes expenditures at functional level under the modified accrual basis except for the enterprise fund, which is budgeted on the accrual basis, and the individual schools special 3 revenue fund. For internal management purposes, the budget is allocated to line item expenditure accounts.
The g budgetary amounts presented in the accompanying financial statements are in conformity with the legally adopted budget ordinance as amended throughout the fiscal year. The Board uses a purchase order encumbrance system U to record encumbrances outstanding against each expenditure line item to ensure compliance with adopted budget limits. All non-capital outlay outstanding encumbrances are reversed at year-end.
Capital Outlay encumbrances are carried over into the subsequent year and the corresponding budget amounts are reappropriated.
In developing and maintaining an appropriate accounting system, consideration must be given to the adequacy of internal controls.
Internal controls are designed to provide reasonable but not absolute assurance regarding (1) the safeguarding of assets against loss from unauthorized use or disposition and (2) the reliability of financial records for preparing financial statements and maintaining accountability for Board assets. The concept of reasonable P assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the p evaluation of costs and benefits requires estimates and judgments by management.
All internal control evaluations performed by the Board occur within the above framework.
We believe the Board's internal control system adequately protects assets and provides reasonable assurance of proper recording of financial transactions.
e CASH MANAGEMENT e The Board uses a pooled cash concept to maximize funds available for investment.
Temporarily idle cash is e invested in accordance with applicable state law. Total interest earned for the year was $74,564. Other special revenue funds are not available to the Board until warrants are drawn against the State Treasury and therefore are unavailable for investment.
S The objective of our investment policy is to minimize credit and market risks while maintaining a competitive yield on the investment portfolio.
Accordingly, deposits were either insured by federal depository insurance or collateralized in accordance with state guidelines as described in Note 1 to the Basic Financial Statements.
e S RISK MANAGEMENT Exposure to various risks of loss related to torts; errors and omissions; injuries to employees; natural disasters; and 5 theft of, damages to and destruction of Board assets requires the Board to carry various forms of insurance A including, but not limited to general liability, errors and omissions coverage on Board members and school officials, automobile liability and comprehensive/collision and hazard and theft insurance on property and contents.
A more detailed description of our insurance coverage can be found in Note 2 to the Basic Financial Statements.
.S INDEPENDENT AUDIT The state statutes require an annual audit by independent certified public accountants and the Board has selected p the firm of McGladrey
& Pullen, LLP. In addition to meeting the requirements set forth in state statutes, the audit ix ON.. .w was also designed to meet the requirements of the federal Single Audit Act of 1984, as amended, the related U.S.1 0Office of Management and Budget's Circular A-133 and the North Carolina Single Audit Implementation Act, as of stated before. Auditors conducted the audit in accordance with generally accepted auditing standards and standards set forth in the General Accounting Office's Government Auditing Standards.
The Financial section of this' report includes the auditor's report on the managements discussion and analysis, the basic financial statements and go the combining and individual fund statements and schedules.
Board personnel prepared all such statements and schedules.
Auditor's reports on the Board's internal controls and compliance with applicable laws, regulations, contracts and grants can be found in the Compliance section of this report.FINANCIAL REPORTING AWARDS_The Association of School Business Officials (ASBO) and the Governmental Finance Officers Association (GFOA)11 awards Certificates of Achievement for Excellence in Financial Reporting to Boards for their comprehensive annual so financial reports. In order to be awarded the certificate, the Board must publish an easily readable and efficiently organized comprehensive annual financial report that satisfies both generally accepted accounting principles and applicable legal requirements.
The Certificates for Achievement are valid for a period of one year only.zA We believe our current comprehensive annual financial report continues to meet the requirements for the Certificates of Achievement and we are submitting it to the ASBO and GFOA to determine its eligibility.
The Board has received so the awards for seven consecutive years.ACKNOWLEDGMENTS We would like to express appreciation to all employees who performed their duties in accordance with Board policies and assisted in the reporting of the school system's financial records.In conclusion, we express our appreciation to the members of the Board of Education for their interest and support in planning and conducting the financial affairs of the school in a responsible and dedicated manner. We also extend sl our gratitude to the members of the Board of County Commissioners for their continued support throughout this past_1 year.Respectfully submitted, , By Dr. Katie M. McGee Interim Superintendent Mrs. Ann Blackburn Hardy, MPA, CPA Assistant Superintendent of Fiscal Operations do'S'S X --.S BRUNSWICK COUNTY BOARD OF EDUCATION LIST OF PRINCIPAL OFFICIALS June 30, 2004 BOARD OF EDUCATION MEMBERS Mrs. Shirley Babson, Chairperson COL Willie Gore, Vice-Chairperson Mr. Jimmy Hobbs Mr. John Thompson Mr. Olaf Thorsen.1i IVE v (a -Z,I 41 V"-(e'WE fli: te gig 0111i w INTERIM SUPERINTENDENT OF SCHOOLS Dr. Katie M. McGee ASSISTANT SUPERINTENDENT OF FISCAL OPERATIONS Mrs. Ann Blackburn Hardy, MPA, CPA xi -
BRUNSWICK COUNTY SCHOOLS ORGANIZATIONAL CHART 2004-2005 School Year Board of Education Shirley Babson, Chairperson Col. MIlNte Gore rice-Chairperson Jrmmy Hobbs Olaf Thorsen John Thompson_: Prinepals J Cyte Brarr*S eMile len, Pam Coliins.BolvaaL Ele, Eltien Aflliigan-Jense ae AMonroe ELune Bowden.Uncoin ELiem Ilelen Davi-Sourhport Ltem Dr. Atight Irlhfli-Sutply ELen, Rhonda Benton-Unton Elem Heran, fartln- torfnfa lflhlamson Terry Chestnun.lV ncamnawEiem Dlann AftIntr.LeandAflddie Patricia Undewood-SBAIS Dr. Zelptla Gril sse-Shaiione Deanne Afeadows -NB MS Bob Mlhkerion-SBMS Nancy Cobie-JIBHS Ronnei Jrnikfns-BLC O ov SCHOOL BSNS 0-t~ffiq INTERNATIONAL This Certificate of Excellence in Financial Reporting is presented to BRUNSWICK COUNTY SCHOOLS For its Comprehensive Annual Financial Report (CAFR)For the Fiscal Year Ended June 30, 2003 Upon recommendation of the Association's Panel of Review which has judged the Report substantially conforms to principles and standards of ASBO's Certificate of Excellence Program x* Presiet \Executive Director q^ I v. .II, 9, .I q I'I .. t qt-.tttt~-~t Certificate of Achievement for Excellence in Financial Reporting Presented to Brunswick County Schools, North Carolina For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2003 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting.
4 President Executive Director xiv McGladrey&
Pullen Certified Public Accountants Independent Auditor's Report To the Members of Brunswick County Board of Education Bolivia, North Carolina We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Brunswick County Board of Education, North Carolina, as of and for the year ended June 30, 2004, which collectively comprise the Board's basic financial statements as listed in the table of contents.
These financial statements are the responsibility of Brunswick County Board of Education's management Our responsibility is to express opinions on these financial statements based on our audit.We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinions.In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Brunswick County Board of Education as of June 30, 2004, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the general and the State Public School funds for the year then ended in conformity with accounting principles generally accepted in the United States of America.In accordance with GovernmentAuditing Standards, we have also issued our report dated September 14, 2004 on our consideration of Brunswick County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters.The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an 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 and should be considered in assessing the results of our audit.The management's discussion and analysis on pages 4 through 9 is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.McGladrey
& Pullen, LLP Is a member frm of RSM Internatonal, an affiliafion of separate and independent legal entities.1 Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Brunswick County Board of Education, North Carolina's basic financial statements.
The combining and individual fund financial statements and schedules, listed in table of contents as supplementary information, are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The accompanying schedule of expenditures of federal and state awards is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-1 33, Audits of States, Local Govermments, and Non-P fit Organizations and the State Single Audit Implementation Act, and is not a required part of the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.The accompanying introductory and statistical sections, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.
This information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.Wilmington, North Carolina September 14, 2004 Lif it it G U1 it U1 a a, U9 Ut U9 U1 0U Ua S a S S 4W 4P 4w S9 a 4W SW a S&W W ft S S 4 4&2 3
Brunswick County Board of Education, North Carolina Management's Discussion and Analysis June 30, 2004 This section of Brunswick County Board of Education's (the Board) financial report represents management's discussion and analysis of the financial performance of the Board for the year ended June 30, 2004. This information should be read in conjunction with the audited financial statements included in this report and the letter of transmittal.
Financial Highlights
- The Board enjoyed an increased enrollment of 102 students (or 1%) from the previous year.* The Board is renovating existing buildings to accommodate the increased enrollment and to allow it to offer an expanded curriculum to its students.* The Board is working diligently with the Brunswick County Board of Commissioners to find ways to fund increases in supplemental pay for teachers and to fund the continuing need for additional classroom space.* As of the close of the current fiscal year, Brunswick County Board of Education's governmental funds reported combined ending fund balance of $7,305,630.
Approximately 64% of this total, or $4,656,029, is unreserved and undesignated and therefore available for spending at the Board's discretion.
Although special revenue funds include $686,275 in undesignated fund balance, this fund is maintained by individual schools and is not budgeted by the Board.* At the end of the current fiscal year, undesignated fund balance for the General Fund was $3,436,080, or 14% of total general fund expenditures for the fiscal year.Overview of the Financial Statements The Brunswick County Board of Education's financial section consists of three components, excluding the independent auditor's report. They are as follows:* Management's Discussion and Analysis (required supplementary information)
- Basic Financial Statements
- Required supplemental section that presents combining and budgetary statements 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 govemment-wide statements are presented on the full accrual basis of accounting and include the statement of net assets and the statement of activities.
The Statement of Net Assets 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 funds, proprietary fund and fiduciary fund. These statements present the governmental funds on the modified accrual basis of accounting, measuring the near term inflows and outflows of 4
.4 financial resources and what is available at year-end to spend in the next fiscal year. 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 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 Assets 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 assets and how they have changed. Net assets -the difference between the Board's assets and liabilities
-are one way to measure the Board's financial health or position.* Over time, increases or decreases in the Board's net assets 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 condition of its school buildings and other physical assets.In the government-wide financial statements, the Board's activities are divided into two categories:
- Governmental activities:
Most of the Board's basic services are included here, such as regular and special education, transportation and administration.
County appropriations, State aid, Federal grants and other county revenues finance most of these activities.
- Business-type activities:
The Board charges fees to help it cover the costs of certain services it provides.The Board's Child Nutrition Fund is included here.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 Board 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 particular purposes or to show that it is properly using certain revenues, such as in the Federal Grants Fund.The Board has three types of funds: Governmental funds: Most of the Board's basic services are included in the governmental funds, which generally focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending.
Consequently, the governmental funds statements provide a detailed short-term view that helps 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 s governmental funds statements, in the form of a reconciliation, explains the relationship (or differences) between the government-side and the fund financial statements.
The Board has several governmental funds: the State Public School Fund, the General Fund, the Federal Grants Fund, the Capital Outlay Fund and the Individual Schools Fund.Proprietary fund: Services for which the Board charges a fee are generally reported in a proprietary fund. The proprietary fund statements are reported on the accrual basis of accounting, which is the same basis of accounting as the government-wide statements.
The Board has one proprietary fund which is the Child Nutrition Fund.Fiduciary fund: Fiduciary funds are used to account for resources held for the benefit of parties outside the government.
The Board has one fiduciary fund -the Administrative Fund, which is a scholarship fund under the control of the administrative unit. The Board is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. This is accounted for as a private-purpose trust fund.Financial Analysis of the Schools as a Whole Net assets are an indicator of the fiscal health of the Board. Assets exceeded liabilities by $128,470,436 as of June 30, 2004. The largest component of net assets is invested in capital assets, net of related debt, of $125,251,094.
It comprises 97.5% of the total net assets. Debt related to these assets is recorded in the financial statements of Brunswick County. Brunswick County Board of Education uses these capital assets to provide services to citizens;consequently, these assets are not available for future spending.
Of the remaining net assets, $123,398 is restricted and $3,095,944 is, unrestricted.
Following is a summary of the Statement of Net Assets: Figure 1 Condensed Statement of Net Assets As of June 30,2004 Governmental Activities Business-type Activities Total Primary Government 613012004 613012003 613012004 613012003 613012004 613012003 Current assets Capital assets Total assets Current liabilities Long-term liabilities Total liabilities Invested in capital assets, net of related debt Restricted net assets Unrestricted net assets (deficit)Total net assets$ 13,741,609
$124.489,578 14,359,382
$111.136.472 244,362 $805.678 171,316 $270,477 13,985,971
$125.295.256 14,530,698 111,406,949 138,231,187 125,495,854 1,050,040 441,793 139,281,227 125,937,647 6,435,979 6,821,947 119,647 109,276 6,555,626 6.931,223 4,102,034 3,648,355 153,131 112,052 4,255,165 3,760,407 10,538,013 10,470,302 272,778 221,328 10,810,791 10,691,630 124,445,416 111,136,472 805,678 270,477 125,251,094 111,406,949 123,398 149,014 --123,398 149,014 3,124,360 3,740,066 (28,416) (50,012) 3,095,944 3,690,054$ 127,693,174
$ 115,025,552
$ 777,262 $ 220.465 $ 128,470,436
$ 115,246,017 Note that net assets increased during the year, indicating an improvement in the financial condition of the unit. The increase in net assets (11%) was due largely to the increase in capital assets in the governmental activities due to the new school construction.
Unrestricted net assets increased in the business-type activities primarily because of 6 an increase in current assets in the School Food Service fund. Also note that the Board carries capital assets for which Brunswick County carries the offsetting debt.The following table shows the revenues and expenses for the Board for the current fiscal year.Figure 2 Condensed Statement of Revenues, Expenses and Changes In Net Assets Year Ended June 30,2004 Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Otherrevenues Total revenues Expenses: Governmental activities:
Instructional programs Supporting services community services Non-programmed charges Depreciation Business-type activities:
Child nutrition Total expenses Transfers in (out)Increase in net assets Beginning net assets Ending net assets Governmental Activities Business-type Activities Total Primary Government 63012004 63012003 613012004 613012003 63012004 613012003 s 15,943 s 188,109 $ 1,962,734
$ 1,762,009
$ 1,978,677
$ 1,950,118 56,005,294 53.237,418 2,399,399 2,273.900 58.404,693 55.511,318 120,148 --120,148 40,613,932 39.912,620
-15.894 40,613,932 39,928,514 96,635,169 93,458,295 4,362,133 4,051,803 100,997,302 97,510,098-55,725,876 53,045,879
- -55,725,876 53,045.879 23.627,013 22.574,340
- -23.627,013 22,574,340 22,207 24,848 --22,207 24.848 390.839 372,597 --390,839 372,597 3,558,926 2,756.252
--3,558,926 2.756,252-4,448,022 3,908,140 4,448.022 3,908.140 83.324,861 78,773.916 4,448,022 3,908.140 87.772,883 82,682,056 (642,686)
-642.686 --12,667,622 14,684,379 556,797 143.663 13,224.419 14.828.042 115,025,552 100,341,173 220,465 76,802 115,246,017 100,417,975
$ 127,693,174 S 115,025,552
$ 777,262 s 220.465 $ 128.470.436 s 115,246,017 Total governmental activities generated revenues of $96.6 million while expenses in this category totaled $83.3 million. After transfers to the business-type activities, the increase in net assets stands at approximately
$12.6 million. Instructional expenses comprised 67% of total governmental-type expenses while support services made up 28% of those expenses.
County funding comprised 41% of total governmental revenue. Much of the remaining 59% of total governmental revenue consists of restricted State and federal money. Business-type activities generated revenue of $4.3 million and had expenses of $4.4 million. Net assets increased in the business-type activities by $556,797, after transfers in from the governmental activities of $642,686.FinancialAnalysis of the Board's Funds Governmental Funds: The focus of Brunswick 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.
Specifically, unreserved fund balance can be a useful measure of a government's net resources available for spending in the next fiscal year, The Board's governmental funds reported a combined fund balance of $7,305,630, a $231,805 decrease over last year. All of the Board's governmental funds, except for the Non-Major Governmental Funds, had expenditures and other uses that exceeded revenues and other financing sources, thus the decrease in total fund balance. This was partially due to a $108,040 decrease in reserve for inventories.
State funding increased approximately
$1.6 million 7
- and county funding increased by $484,685.
Expenditures increased as well, and included over $18 mr outlay. There was no State spending freeze issued by the Governor.Categorization of Expenditures for Governmental Funds.I .Miilion in capital WI VF W WF WI 1%l Instructional Programs* Supporting Services o Nonprogram Charges O Capital Projects 58%22%Proprietary Funds: The Child Nutrition Fund had a loss before capital contributions of $85,889. Expenses increased by $539,882 while revenues increased by $310,330.
This brought about a $229,552 decrease in the impact of operations on net assets over that experienced last year. Although the total ending net assets increased by$556,797 this was due in large part to capital contributions of $642,686.General Fund Budgetary Highlights Over the course of the year, the Board amended the budget several times to account for changes in revenue expectations and to recognize appropriations in light of the revised revenue estimates.
The favorable variance of$93,245 and $155,283 in the General Fund regular instructional program function and special instructional program function, respectively, is attributable to lapsed salaries and benefit costs.Capital Assets Brunswick County Board of Education's investment in capital assets for its governmental and business-type activities as of June 30, 2004, totals $125,295,256 (net of accumulated depreciation).
This was a $13,888,307 (or 12%) increase from the previous year. Expenditures in the various 1999 Brunswick County General Obligation School Bond Projects accounted for most of the capital asset transactions during the year. These expenditures include furniture and equipment, computers, renovations to existing buildings and new construction.
8.W W=_ I I'011 0:=so UP9_!.-I_
The following is a summary of the capital assets, net of depreciation at year-end.-Figure 3 Summary of Capital Assets As of June 30,2004 Land Improvements Construction In progress Buildings Vehicles Furniture and equipment Total Governmental Activities Business-type Activities Total PrImary Government 613012004 613012003 613012004 613012003 613012004 613012003$ 1,994,235
$ 1,924,662
$ -$ -1,994,235
$ 1,924,662 3,144,742 3,178,622
--3,144,742 3,178,622 18,548,933 41,674,672
--18,548,933 41,674,672 97,954,346 61,096,547
-97,954,346 61.096,547 2,039,885 2,268,656
--2,039,885 2,268,656 807,437 993,313 805,678 270,477 1,613,115 1,263,790 5 124,489,578
$ 111,136,472
$ 805,678 $ 270,477 $ 125,295,256
$ 111,406,949 Additional information can be found in Note 2 of the notes to basic financial statements.
Long Term Obligations During the year, the Board's outstanding long-term obligations increased by $44,162 due to capital leases for modular units and $409,51T due to an increased compensated absences accrual. The Board is limited by North Carolina General Statutes with regards to the types of debt it can issue and for what purpose that debt can be used.Brunswick County and the State of North Carolina have issued all debt for school capital construction.
Additional information can be found in Note 2 of the notes to basic financial statements.
Economic Factors and Next Year's Budget Highlights The Board anticipates an increased enrollment over the next several years and will need continued increases in classroom space, teachers and equipment.
County funding is a major source of income for the Board; therefore the County's economic outlook directly affects that of the schools. Brunswick County's unemployment rate as of June 2004 was 6%, which was .5% less than the State average of 6.5%. Brunswick County was also able to continue funding for 2003-2004 at slightly increased levels and the Board has seen continued support for 2004-2005.
Requests for Information This report is intended to provide a summary of the financial condition of Brunswick County Board of Education.
Questions or requests for additional information should be addressed to: Ann Blackbum Hardy, MPA, CPA, Assistant Superintendent of Fiscal Operations Brunswick County Board of Education 35 Referendum Drive NE Bolivia, NC 28422 (THIS PAGE INTENTIONALLY LEFT BLANK)NV W-r 6_,_10 b1... ., --.... ...
BASIC FINANCIAL STATEMENTS I I (THIS PAGE INTENTIONALLY LEFT BLANK).W7 OF w7 4ro OX OM._zr=.I:_ : soE -0 I00 Ih Im 12 I.......-
Brunswick County Board of Education, North Carolina Statement of Net Assets June 30, 2004 Primary Government Governmental Activities Assets: Cash and cash equivalents Due from other governments Accounts receivable, net Inventories Capital assets: Land and construction in progress Other capital assets, net of depreciation Total capital assets$ 6,929,234 6,276,820 41,571 493,984 20,543,168 103,946,410 124,489,578 Business-type Activities
$ 93,681 7,514 6,298 136,869 805,678 805,678 Total$ 7,022,915 6,284,334 47,869 630,853 20,543,168 104,752,088 125,295,256 Total assets 138,231,187 1,050,040 Liabilities:
Accounts payable and accrued expenses Uneamed revenues Long-term liabilities:
Due within one year Due in more than one year Total liabilities 6,157,885 278,094 2,400,282 1,701,752 10,538,013 106,122 13,525 85,147 67,984 272,778 139,281,227 6,264,007 291,619 2,485,429 1,769,736 10,810,791 Net Assets: Invested in capital assets, net of related debt Restricted Unrestricted (deficit)Total net assets 124,445,416 123,398 3,124,360$ 127,693,174 805,678 (28,416)$ 777,262 125,251,094 123,398 3,095,944$ 128,470,436 The notes to the basic financial statements are an integral part of this statement.
13 (THIS PAGE INTENTIONALLY LEFT BLANK)14 i Al 4. Ai Ai Ai Ai a A I I I I I a a A A I A i it a it I i i i i a i i i i a a A d I I Brunswick County Board of Education, North Carolina Statement of Activities For the Year Ended June 30, 2004 Program Revenues Net (Expense)
Revenue and Changes in Net Assets Primary Government FunctionslPrograms Primary Government:
Governmental Activities:
Instructional programs: Regular Special Co-curricular Student service Other Support services: Pupil Instructional Administrative School administration Business tA Central Other Community services Non-programmed charges Depreciation Total governmental activities Charges for Services -Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-type Activities Expenses Total$ 35,665,552
$10,915,436 1,951,244 6,713,413 480,231 5,150 11,668 948,206 851,507 5,207,957 14,869,756 1,506,816 231,103 22,207 10,793 390,839 3,558,926 83,324,861 15,943$ 30,486,421
$10,424,061 1,482,444 4,904,169 416,129 10,936 579,163 547,297 3,322,532 3,359,714 182,099 64,334 1,436 224,559 56,005,294
$ (5.179,131)
(486,225)(468,800)(1,809,244)
(64,102)$$ (5,179,131)
(486,225)(468,800)(1,809,244)
(64,102)(732)(369,043)(304,210)(1,885,425)
(11,510,042)
(1,324,717)
(166,769)(9,978)(166,280)(3,558,926)
(27,303,624)
(732)(369,043)(304,210)(1,885,425)
(11,510,042)
(1,324.717)
(166,769)(9,978)(166,280)(3,558,926)
(27,303,624)
Business-type activities:
Child nutrition Total primary government 4,448,022 1,962,734 2,399,399$ 87,772,883
$ 1,978,677
$ 58,404,693
$ -(27303624)
(85,889) (85,889)(85,889) (27,389,513)
General revenues: Unrestricted county appropriations
-operating Unrestricted county appropriations
-capital Investment earnings, unrestricted Miscellaneous, unrestricted Transfers Total general revenues and transfers Change in net assets Net assets -beginning Net assets -ending 21,085,213 18,433,458 70,073* 1,025,188 (642.686)39,971,246 12,667,622 115,025,552
$ 127,693,174 642,686 642,686 556,797 220,465$ 777,262 21,085,213 18,433,458 70,073 1,025,188 40,613,932 13,224,419 115,246,017
$ 128,470,436 The notes to the basic financial statements are an integral part or this statement.
Brunswick County Board of Education, North Carolina Balance Sheet Governmental Funds June 30, 2004 Jar Malor Funds Assets: Cash and cash equivalents Due from other governments Accounts receivable, net Inventories General Fund$ 5,708,897 598,610 41,571 493,984 State Public School Fund Capital Outlay Fund$* 491,793 2.717,239 Non-Major Governmental Funds Total Governmental Funds$85,096 2,679,118$643,448 $ 6,929.234 281,853 6,276,820-41,571-493.984 Total assets$ 6,843,062
$ 2,764.214
$ 3.209,032
$ 925,301$ 13,741.609 Liabilities and Fund Balances: Liabilities:
Accounts payable and accrued liabilities Unearned revenue Total liabilities
$ 757,381 757,381$ 2,686,813 77,401 2,764,214$ 2,500,055 175,303 2,675,358$ 213,636 25,390 239,026$ 6,157,885 278,094 6,435,979 Fund balances: Reserved for Inventories State statute Unreserved:
Designated for subsequent years expenditures Undesignated, reported in: General fund Capital projects fund Special revenue funds Total fund balances Total liabilities and fund balances 493,984 640,181 1,515,436 3,436,080 6,085,681
-$ 6,843,062
$ 2.764,214-493.984 &-640,181 W-1,515,436
&-3,436,080 533.674 -533,674 f-686,275 686,275 533,674 686,275 7,305,630 W$ 3,209,032
$ 925,301 I 13,741,609 W 4b The notes to the basic financial statements are an integral part of this statement.
16 M" Brunswick County Board of Education, North Carolina Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2004 Amounts reported for governmental activities In the statement of net assets are different because: Total fund balance -governmental funds$ 7,305,630 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds.Less accumulated depreciation Net capital assets Long-term liabilities, including compensated absences payable, are not due and payable in the current period and therefore are not reported in the funds.Total net assets -governmental activities 168,313,829 43,824,251 124,489,578 (4,102,034)
$ 127,693,174
.The notes to the basic financial statements are an integral part of this statement.
17 Brunswick County Board of Education, North Carolina Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2004 Major Funds General State Public Capital-Fund School Fund Outlay Fund Revenues: Stale of North Carolina Brunswick County U.S. Govemment Other Total revenues$ 1,206,332 21,085,213 320,625 1,168,200 23,780,370
$ 47,274,527
$-18,433.458 47,274,527 18,433,458 Expenditures:
Current Instructional programs: Regular 3,984,350 Special 358,239 Co-curricular 576,782 Student services 1,430,091 Other 3,483,581 Total instructional 9,833,043 Support services: Pupil 54 Instructional staff 253,574 Administrative 239,608 School administration 1,379,225 Business 8,554,500 Central 1,052,491 Other 2,041,786 Total support services 13,521,238 Community services 22,207 Non-programmed charges 390,839 Capital outlay: Real property and buildings Furniture and equipment Buses and motor vehicles Total capital outlay _Total expenditures 23,767,327 Excess (deficiency) of revenues over expenditures 13,043 Other financing sources (uses): Transfers from other funds Transfers to other funds (175,000)Capitalized leases Total other financing sources (uses) (175,000)23,409,498 5,780,305 3,299,427 7,018,404 39,507,634 474,722 250,233 2,779,074 2,863,474 146,434 1,252,956 7,766,893 Non-Major Governmental Funds$5,481,728 1,486,935 6,968,663 1,217,322 2,513,005 793,436 557,385 1,305,316 6,386,464 8,734 2,950 166,653 13,881 72,529 264,747 Total Governmental Funds$ 48,480,859 39,518,671 5,802,353 2,655 135 96,457,018 28,611,170 8,651,549 1,370,218 5,286,903 11,807,301 55,727,141 8,788 731,246 656,494 4,158,299 11,417,974 1,212,806 3,367,271 21,552,878 22,207 594,239 18,131,507 370,360 226,613 18,728,480 96,624,945 (167,927)175,000 (175,000)44,162 44,162 (123,765)49-(9 it IF V W W W W W W W W W W 0: W W W_Or-W or-W W W_WW=410%7 W W W W=W W=06-4W as-W_4".GO: W_ -__ 203,400 47,274,527 18,131,507 370,360 226,613 18,728,480 18,728,480 6,854,611-(295,022) 114,052 175,000 44,162 219,162 Net change in fund balance Fund balances -beginning Decrease in reserve for inventories Fund balances -ending (161,957)(75,860)114,052 572,223 7,537,435 6,355,678 (108,040)S 6,085,681 609,534-_ --(108,040)$ -$ 533,674 $ 686,275 $ 7,305,630 The notes to the basi financial statements are an integral part ofthis statement.
Brunswick County Board of Education, North Carolina Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2004 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances -total governmental funds Change in fund balance due to change in reserve for inventory$ (123,765)(108,040)Governmental funds report capital outlays as expenditures.
However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.This is the amount by which capital outlays exceeded depreciation in the current period.Expenditures in the capital outlay fund that were capitalized Expenditures in the other funds that were capitalized Depreciation expense Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.Amount of donated assets Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.Compensated absences Capitalized leases 16,515,911 45,581 (3,558,926) 350,541 (409,518)(44,162)Total changes In net assets of governmental activities
$ 12,667,622 The notes to the basic financial statements are an integral part of this statement.
19 Brunswick County Board of Education, North Carolina Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual General Fund and Annually Budgeted Major Special Revenue Fund For the Year Ended June 30. 2004 General Fund Budgeted Amounts Original Final variance wth Final Budget-Actual Positive Amounts (Negative)
(9 (1 64£1 Revenues: State of North Carolina Brunswick County U.S. Government Other Total revenues$ 718,051 21.003,440 285,000 492,091 22.498,582 S1,157,490 21,003,440 345,000 545,777 23,051,707
$ 1,206,332 21.085,213 320,625 1,168.200 23.780,370
$ 48,842 81,773 (24,375)622,423 728,663 Expenditures:
Instructional programs: Regular Special Co-curricular Student services Other Total instructional Support services: Pupil Instructional staff Administrative School administration Business Central Other Total support services Community services Non-programmed charges Total expenditures 3,769,836 307,068 577,063 1,369,108 3,839,901 9,862,976 189,807 279,136 1,349,526 8,316,986 1,041,588 2,132,299 13,309.342 27,215 330,397 23.529,930 4,077,595 513,522 586,652 1,468,417 3.546,293 10,192,479 54 260,285 272,542 1,393,707 8,616,122 1,069,416 2,082.809 13,694,935 29,158 413,997 24,330,569 3,984,350 358,239 576,782 1,430,091 3.483,581 9,833,043 54 253,574 239,608 1,379,225 8,554,500 1,052,491 2.041,786 13.521,238 22,207 390.839 23.767,327 93,245 155,283 9,870 38,326 62,712 359,436 6,711 32,934 14,482 61,622 16,925 41,023 173,697 6,951 23.158 563,242 Revenues over (under) expenditures (1,031,348)
(1,278,862) 13,043 1,291,905 Other financing sources (uses): Transfers to other funds Fund balance appropriations Total other financing sources (uses)1.031,348 1,031,348 (175,000)1,453,862 1,278,862 (175,000)(175,000)(1,453.862)
(1,453,862)
IF IF WS Revenues and other sources under expenditures and other uses S $(161,957) 5 (161,957)6,355,678 Fund balances, beginning of the year Decrease In reserve for inventories (108,040)S 6.085.681 Fund balances, end of the year S a W W The notes to the basic financial statements are an integral part or this statement.
20 ..S 0S S 4 State Public School Fund Budgeted Amounts Original Final$44,400,933
$48,646,400 44,400.933 48,646,400 22,855.430 5,253.751 3,194,861 6,239,445 37,543,487 1.000 476,804 208,539 2,725,619 2.342,173 140,490 962,821 6,857.446 44.400,933 24,170.257 6.105,510 3.301,167 7,232,472 40,809,406 474,722 281,242 2,785,287 2,886,435 146,434 1,262,874 7,836.994 48.646,400 Actual Amounts$47,274,527 47,274,527 23.409,498 5,780,305 3,299,427 7,018,404 39.507,634 474,722 250,233 2,779,074 2,863,474 146,434 1,252,956 7,766,893 47.274,527 Variance with Final Budget.Positive (Negative)
$ (1,371,873)
(1,371,873) 760.759 325.205 1,740 214,068 1.301,772 31,009 6,213 22,961 9,918 70.101 1.371,873 S -S S$The notes to the basic financial statements are an integral part of this statement.
21 Brunswick County Board of Education, North Carolina Statement of Net Assets Proprietary Fund June 30, 2004 Enterprise Fund Major Fund Child Nutrition Assets: Current assets: Cash and cash equivalents Due from other governments Accounts receivable, net Inventories Total current assets Noncurrent assets: Capital assets: Equipment, net of depreciation Total assets$ 93,681 7,514 6,298 136,869 244,362 805,678 1,050,040 Liabilities:
Current liabilities:
Accounts payable and accrued expenses Compensated absences due within one year Deferred revenue Total current liabilities Non-current liabilities:
Compensated absences Total non-current liabilities 106,122 85,147 13,525 204,794 67,984 67,984 Total liabilities 272,778 Net assets:-Invested in capital assets, net of related debt Unrestricted (deficit)Total net assets 805,678 (28,416)$ 777,262 The notes to the basic financial statements are an integral part of this statement.
22 a a a S a a a a3 a3 a3 on so s.2S so la so me as AD 20%a A'U AD Am AD Am Al 03:0 Brunswick County Board of Education, North Carolina Statement of Revenues, Expenses and Changes in Fund Net Assets Proprietary Fund For the Year Ended June 30, 2004 Enterprise Fund Malor Fund Child Nutrition Operating revenues: Food sales Operating expenses: Food costs Salaries and benefits Materials and supplies Repairs and maintenance oepreciation Utlities Other Indirect costs Total operating expenses Operating loss Nonoperating revenues: Federal reimbursements and commodities Other Indirect costs not paid Total nonoperating revenues Loss before capital contributions Capital contributions Change in net assets Total net assets -beginning Total net assets -ending$ 1,580,253 1,550,878 2,162,538 190,384 38,983 107,485 9,031 14,789 373,934 4,448,022 (2,867,769) 2,399,399 8,547 373,934 2,781,880 (85,889)642,686 556,797 220,465$ 777,262 The notes to the basic financial statements are an integral part of this statement.
.23 Brunswick County Board of Education, North Carolina Statement of Cash Flows Proprietary Fund For the Fiscal Year Ended June 30.2004 Enterprise Fund 49'£(9£9 W Ua a a a S p6 fa Cash flows from operating activities:
Cash received from customers Cash paid for goods and services Cash paid to employees for services Net cash used in operating activities Cash flows from noncapital financing activities:
Federal reimbursements Net cash provided by noncapital financing activities Net increase in cash and cash equivalents Cash and cash equivalents
-beginning of the year Cash and cash equivalents
-end of the year Major Fund Child Nutrition 1.583,929 (1.539.828)
(2,162,38)
(2.118,437) 2.181,407 2,181.407 62,970 30,711 lS 93,681 Reconciration of operating loss to net cash used in operating activities Operating lass (2,867,76 Adjustments to reconcile operating loss to net cash used in operating activities:
Depreciation Indirect cost Donated commodities consumed Prepaid meals Changes in assets and liabilities:
Decrease in due from other govemmenls Increase in accounts receivable Increase in inventory Increase in accounts payable and accrued liabilities Increase in deferred revenue Total adjustments Net cash used in operating activities Supplemental schedule of non-cash activities:
Transfer of equipment from Capital Projects Fund 107.485 373,934 217.992 8,547 508 (5,379)(5,203)48.032 3,416 749,332 8 (2,118,437)
$ 642,686 The notes to the basic financial statements are an integral part of this statement.
24 Brunswick County Board of Education, North Carolina Statement of Fiduciary Net Assets June 30, 2004 Private-Purpose Trust Fund Assets: .Cash and cash equivalents Total assets Net Assets: Net assets held In trust for private purposes Total net assets$ 102,905$ 102,905$ 102,905$ 102,905 The notes to the basic financial statements are an integral part of this statement.
25 Brunswick County Board of Education, North Carolina Statement of Changes In Fiduciary Net Assets Year Ended June 30, 2004 Private-Purpose Trust Fund Additions:
Private donations Deductions:
Scholarships awarded$ 3,411 6,352 (2,941)Change in Net Assets Net assets -beginning Net assets -ending 105,846$ 102,905 Gro Of*VW.4W OX.so The notes to the basic financial statements are an integral part of this statement.
-.26 NOTES TO BASIC FINANCIAL STATEMENTS 27 4F (THIS PAGE INTENTIONALLY LEFT BLANK) i OFF w OF 28F BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies The accounting policies of Brunswick County Board of Education conform to generally accepted accounting principles as applicable to governments.
The following is a summary of the more significant accounting policies: A. Reporting Entity The Brunswick County Board of Education (Board) is a Local Education Agency empowered by Chapter 115C of the North Carolina General Statutes with the responsibility for the general control and supervision of matters pertaining to public school education in Brunswick County, North Carolina.
The Board receives State, local and federal government funding and must adhere to the legal requirements of each funding source entity. The Board is a primary government with an elected governing body.The Board, a local education agency empowered by the North Carolina General Statutes, has responsibility and control over all activities related to public school education in Brunswick County, North Carolina.
Because the members of the Board are elected officials of Brunswick County and have the authority to designate management, have the ability to significantly influence operations and are primarily accountable for fiscal matters, the Board is recognized as a separate governmental reporting entity under definition by the Governmental Accounting Standards Board.The Board has limited borrowing authority, cannot levy taxes and is required to maintain accounting records in a uniform state format established by the State's General Assembly.Accounting principles generally accepted in the United States of America, as applied to government units, require the financial statements to include those units or entities for which the Board is considered to be financially accountable.
The Board has no component units or entities for which it is considered to be financially accountable and is not itself considered to be a component unit of another government unit.B. Basis of Presentation Government-wide Statements:
The statement of net assets and the statement of activities display information about the Board. These statements include the financial activities of the overall government, except for fiduciary funds. 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.29 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies (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 nonmajor 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. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchage 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 and is used to account for all financial resources except for those required to be accounted for in another fund.This fund is the 6Local Current Expense Fund," mandated by G.S. 115C426.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.Capital Outlay Fund -The Capital Outlay Fund is used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and fiduciary funds). It is mandated by G.S. 115C426. Capital projects are funded by Brunswick County appropriations, restricted sales tax monies, proceeds of Brunswick County bonds issued for the construction of public schools, as well as certain State assistance.
The Board reports the following major enterprise fund: Child Nutrition Fund -The Child Nutrition Fund is used to account for the Board's food service program within the school system. It is the intent of the Board that the costs (including depreciation) of providing food services to the individual schools be partially recovered by user charges.The Board reports the following fiduciary fund: Private-Purpose Trust Funds -The Private-Purpose Trust Fund (Williamson
& Gause Scholarship Fund) was created by gifts. By terms of the agreements some of the corpus may not be spent.Income and certain contributions may be expended through scholarship grants and other awards.These funds are maintained separate from other funds of the Board and are subject to the terms of the trust agreements.
It is accounted for in essentially the same manner as a proprietary fund.C. Measurement Focus and Basis of Accounting Government-wide, Proprietary and Fiduciary Fund Financial Statements.
The government-wide, proprietary and 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 30--
BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies (Continued) 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 sixty 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 assets 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.
D. 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 school 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 except for the Enterprise Fund, which uses the accrual basis of accounting.
Budgetary control is exercised in all funds. Expenditures or expenses may not legally exceed appropriations at the functional level for all annually budgeted funds. A budget comparison statement is presented for the General Fund and the State Public School Special Revenue Fund, which includes a comparison of original budget, final budget and actual data.The Board has authorized the Superintendent to transfer appropriations within a fund under the following conditions:
With respect to General, Capital Outlay, Child Nutrition and Private-Purpose Trust Fund the Superintendent may transfer amounts between Program, Purpose and Object codes of the respective funds. With respect to the State Public School Fund and the Federal Grants Fund, the Superintendent may transfer amounts within Program, Purpose and Object codes of the respective funds.31 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies (Continued)
As specified in G.S. 115C-433, the Board of Education retains the authority to approve all amendments which would increase the total of any fund. The governing board must approve all amendments.
During the year, several immaterial amendments to the original budget were necessary.
Amendments that alter the County appropriation or transfer moneys to or from the capital outlay fund also require the approval of the Brunswick County Board of Commissioners.
A budget calendar is included in G.S. 115C, Article 31 and prescribes the last day on which certain steps of the budget procedure are to be performed.
The following schedule lists the tasks to be performed and the date each is required to be completed.
May 1 -The Superintendent must submit the budget request along with a copy of the budget message to the Board of Education not later than May 1.May 15 -The Board of Education should make changes, if necessary, to the budget request as submitted by the Superintendent and forward an approved budget request to the Board of County Commissioners not later than May 15, unless the County Commissioners have established a later date.July 1 -The Board of County Commissioners must complete its actions on the school budget not later than July 1, unless a later date is agreed upon between the Board of Education and the County Commissioners.
Month of July -The Board of Education must adopt its balanced budget resolution after the Board of County Commissioners has decided upon the amount of appropriations to be provided by the County or after the appeal procedures as set forth in G.S. 115C-431.E. Assets, Liabilities and Fund Equity 1. Deposits and Investments All deposits of the Board are made in board-designated official depositories and are secured as required by 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 consists of an internal portion and an external portion in which the Board participates.
Investments are restricted to those enumerated in G.S. 147-69.1.32 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies (Continued)
The Board's investments with maturity of more than one year at acquisition and non-money market 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. Money market investments that have a remaining maturity at the time of purchase of one year or less are reported at amortized cost.Non-participating interest earning investment contracts are reported at cost.2. 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.
- 3. Inventories The inventories of the Board are valued at cost and the Board uses the first-in, first-out (FIFO) flow assumption in determining cost. The inventories of the Board's General Fund consist of expendable materials and supplies, which are recorded as expenditures when purchased.
The General Fund inventories do not reflect current appropriable resources and, thus, an equivalent portion of fund balance is reserved.Proprietary Fund inventories are valued at lower of cost (first-in, first-out method) or market and consist of food and supplies and are recorded as expenses when consumed.
Also included in the inventory figures and deferred revenue are unused commodity inventories donated by the federal government.
- 4. 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.
Certain items acquired before July 1, 1988 are recorded at an estimated original historical cost. The total of such estimates are not considered large enough that errors would be material when the capital assets are considered as a whole. Items that are purchased and used in large quantities, such as student desks, chairs and library books, are not 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.
Brunswick County holds title to certain properties, which are reflected as capital assets in the financial statements of the Board. The properties have been deeded to the County to permit installment purchase financing of acquisition and construction costs. Agreements between the County and the Board gives the schools full use of the facilities, full responsibility for maintenance of the facilities and provides that the County will convey title of the property back to the Board once all restrictions of the financing agreement requirements have been met.33 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies (Continued)
Capital assets are depreciated using the straight-line method over the following estimated useful lives:-Item Land Land Improvements
$Buildings Building Improvements Mobile Classrooms Furniture Vehicles (excluding buses)Buses Equipment (non-computer)
Cafeteria Equipment Computer Equipment and Software $Capitalization Level All land and easements regardless of cash value 10,000 20,000 20,000 20,000 5,000 5,000 5,000 5,000 5,000 5,000 Years N/A 20 50 20 20 10 6 10 5 12 3 Depreciation for properties serves multiple purposes and cannot be allocated ratably.Therefore, it is reported as *depreciation on the statement of activities.
- 5. Long-term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities.
- 6. 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 and such leave is fully vested when earned. The Board's liability for accumulated earned vacation and the salary-related payments as of June 30, 2004 are recorded in the government-wide and proprietary fund financial statements.
The current portion was estimated based on leave used during the current year.Employees can accumulate an unlimited amount of sick leave. Sick leave does not vest, but 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 the accumulated sick leave until it is actually taken, no accrual for sick leave has been made.7. Net AssetslFund Balances Net assets in the government-wide and proprietary fund financial statements are classified as invested in capital assets, net of related debt; restricted; and unrestricted.
Restricted net assets 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.In the governmental fund financial statements, reservations or restrictions of fund balance represent amounts that are not appropriable, are legally segregated for a specific purpose or are restricted by the grant agreement.
Designations of fund balance represent tentative management plans that are subject to change.34 off,-I too, 00,11, low Ow000 vital Ofs, age 06M U*=0&= 0=0.01 asks corn It=fl!=&t=is=as 4P 4P Vr IPS W 0 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA 3 a NOTES TO BASIC FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies (Continued)
G. S. 115C425(a) restricts appropriation of fund balance or fund equity to an amount not to exceed the sum of cash and investments minus the sum of liabilities, encumbrances and deferred revenues arising from cash receipts, as those amounts stand at the close of the fiscal year preceding the budget year.The governmental fund types classify fund balances as follows: Reserved: Reserved for inventories
-portion of fund balance not available for appropriation because it represents the year-end fund balance of ending inventories, which are not expendable, available resources.
Reserved by State statute -portion of fund balance that is not available for appropriation under State law. This amount is usually comprised of accounts receivable and interfund receivables that are not offset by deferred revenues.Unreserved:
Designated for subsequent year's expenditures
-portion of total fund balance available for appropriation, which has been designated, for the adopted 2004-2005 budget ordinance.
Undesignated
-portion of total fund balance available for appropriation, which is uncommitted at year-end.8. Reconciliation of Govemment-wide and Fund Financial Statements
- a. Explanation of certain differences between the governmental fund balance sheet and the govemment-wide statement of net assets.The governmental fund balance sheet includes a reconciliation between fund balance-total governmental funds and net assets -governmental activities as reported in the government-wide statement of net assets. The net adjustment of $120,387,544 consists of several elements as follows: Description Amount Capital assets used in governmental actvities are not financial resources and therefore are not reported in the funds (total capital assets on government-wide statement in governmental acvities column) $ 168,313,829 Less Accumulated Depreciation (43,824,251)
Net capital assets 124,489,578 Liabilities that, because they are not due and payable in the current period, do not require current resources to pay and therefore are not recorded in the fund statements:
Compensated absences Total adjustment (4,102,034)
$ 120,387,544 35 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies (Continued)
- b. Explanation of certain differences between the governmental fund revenues, expenditures and changes in fund balances and the govi statement of activities.
The governmental fund statement of revenues, expenditures and cha balances includes a reconciliation between net changes in fund bal, governmental funds and changes in net assets of governmental activitie in the govemment-wide statement of activities.
There are several elei total adjustment of $12,791,387 as follows: Description Change in fund balance due to change in reserve for inventory Capital ouUay expenditures recorded in the fund statements but capitalized as assets in the statement of activities Depreciation expense, the allocation of those assets over their useful lives, that is recorded on the statement of activities but not in the fund statements Expenses reported in the statement of activities that do not require the use of current resources to pay are not recorded as expenditures in the fund statements:
Compensated absences are accrued in the government-wide statements but not in the fund statements because they do not use current resources Capital leases Revenues reported in the statement of activities that do not provide current resources are not recorded as revenues in the fund statements:
Fair value of assets donated that Is not recorded in the fund statements but is recorded in the government-wide statements Total adjustment Note 2. Detail Notes on All Funds A. Assets 1. Deposits w statement of amment-wide nges in fund 3nces -total s as reported rnents of that Amount$ (108,040).16,561,492
-(3,558,926)
- %(409,518)(44,162) *350,541 a.F_$ 12,791,387 g two methods.coverage are ,r the Pooling ecurities held Treasurer is held by the based on an rrent balance w to the State s. The State ,cause of the All of the Board's deposits are either insured or collateralized by using one of I Under the Dedicated Method, all deposits over the federal depository insurance.
collateralized with securities held by the Board's agent in the Board's name. Unde Method, which is a collateral pool, all uninsured deposits are collateralized with si by the State Treasurer's agent in the name of the State Treasurer.
Since the State acting in a fiduciary capacity for the Board, these deposits are considered to be Board's agent in the Board's name. The amount of the pledged collateral is I approved averaging method for non-interest bearing deposits and the actual cui for interest-bearing deposits.
Depositories using the Pooling Method report Treasurer the adequacy of their pooled collateral covering uninsured deposit: Treasurer does not confirm this information with the Board or the escrow agent. Be 36 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 2. Detail Notes on All Funds (Continued) 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.At June 30, 2004, the Board had deposits with banks and savings and loans with a carrying amount of $5,535,984 and with the State Treasurer of $92,463. The bank balances with the financial institutions and the State Treasurer were $6,215,287 and $600,696 respectively.
Of these balances, $100,000 was covered by federal depository insurance and $6,715,983 was covered by collateral held by authorized escrow agents in the name of the State Treasurer.
- 2. Investments The Board's investments are categorized to give an indication of the level of custodial risk assumed by the entity at year-end.
In the following table, Column A includes investments that are insured or registered or for which the securities are held by the Board or its agent in the Board's name. Column B includes uninsured and unregistered investments for which the securities are held by the counter-party's trust department or agent in the Board's name.Column C includes uninsured and unregistered investments for which the securities are held by the counter-party, or by its trust department or agent but not in the Board's name. The Board's investments in the North Carolina Capital Management Trust and the State Treasurer's Short Term Investment Fund are exempt from risk categorization because the Board does not own any identifiable securities in these mutual funds.At June 30, 2004, the Board's investment balances were as follows: A B C Reported Value Fair Value State Treasurer's Short Term Investment Fund $ 1,496,973
$ 1,496,973 Cash and investments can be summarized as follows at June 30, 2004: Total Cash on hand and undeposited items $ 400 Deposits 5,628,447 Investments 1,496,973 Total $ 7,125,820 37 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 2. Detail Notes on All Funds (Continued)
- 3. Accounts Receivable Receivables at the government-wide level at June 30, 2004, were as follows: Governmental activities:
General Fund Other governmental activities Total Business-type activites:
Child Nutrition Due from other governments
-Accounts receivable
$ 598,610 $ 41,571 5,678,210$ 6,276,820
$ 41,571$ 7,514 $ 6,298 Due from other governments consists of the following:
Description Governmental activities:
Miscellaneous revenue from County, State and Federal sources, as well as sales tax refund 598,610 from Department of Revenue General Fund TV State Public School Fund Capital Outlay Fund Operating funds from DPI and sales tax refund 2,679,118 from Department of Revenue Operating funds from Brunswick County and.2,717,239 sales tax refund from Department of Revenue AM WI W.IF O,, W, WM Operating funds from DPI and sales tax refund from Department of Revenue Non-Major Funds Total 281,853$ 6,276,820 Business-type activities:
Child Nutrition$ 7,514 Sales tax refund from Department of Revenue 38 A)ial a'is 4 e 0 e 40 49 e as so so 210 so so so me la me so Zs U.=0 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 2. Detail Notes on All Funds (Continued)
- 4. Capital Assets Capital asset activity for the year ended June 30, 2004, was as follows: Beginning Balances Increases Governmental activities:
Capital assets not being depreciated:
Land $ 1,924,662
$ 69,573 $Construction in progress 41,674,672 16,162,855 Total capital assets not being depreciated 43,599,334 16,232,428 Capital assets being depreciated:
Buildings 92,510,517 39,419,891 Land and building improvements 5,199,240 293,215 Vehicles 7,787,017 259,908 Furniture and equipment 2,367,433 81,544 Total capital assets being depreciated 107,864,207 40,054,558 Less accumulated depreciation for: Buildings 31,413,970 2,562,092 Land and building improvements 2,020,618 240,735 Vehicles 5,518,361 488,679 Furniture and equipment 1,374,120 267,420 Total accumulated depreciation 40,327,069 3,558,926 Total capital assets being depreciated, net 67,537,138 36,495,632 Governmental activity capital assets, net $ 111,136,472
$ 52,728,060
$Business-type activities:
Child Nutrition Fund: Equipment
$ 901,356 $ 642,686 $Less accumulated depreciation 630,879 107,485 Business-type activities capital assets, net $ 270,477 $ 535,201 $Depreciation expense was charged to functions of the Board as follows: Governmental activities:
Depreciation
$ 3,558,926 Business-type activities:
Child Nutrition
$ 107,485 Ending Decreases Balances-$ 1,994,235 (39,288,594) 18,548,933 (39,288,594) 20,543,168
-131,930,408 (86,360) 5,406,095 (13,666) 8,033,259 (48,078) 2,400,899 (148,104) 147,770,661
.- 33,976,062 2,261,353 (13,666) 5,993,374 (48,078) 1,593,462 (61,744) 43,824,251 (86,360) 103,946,410 (39,374,954)
$ 124,489,578
-$ 1,544,042-738,364-$ 805,678-Capital assets increases and decreases include transfers from construction in progress to buildings and miscellaneous adjustments totaling approximately
$39.7 million.39 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 2. Detail Notes on All Funds (Continued)
O 5. Construction Commitments The Board has active construction projects as of June 30, 2004. The projects include renovations of Bolivia Elementary, Leland Middle, Lincoln Elementary, Shallotte Middle, South Brunswick Middle, Southport Elementary, Union Elementary, Waccamaw Elementary and the construction of a new alternative school, Brunswick Leaming Center. These projects are all part of a general obligation bond approved in November 1999 in the amount of $83.5 million.At year-end, the Board's commitments with contractors for school construction that were re-encumbered in the new year are as follows: Remaining Project Spent-to-date Commitment School construction
$ 55,844,156
$ 7,825,233 5. Financing Commitments Recent legislation permits the State Board of Education to finance the purchase of replacement school buses through installment purchases.
Brunswick County Board of Education has entered into an agreement to purchase 9 buses in this manner. The term of the financing cannot exceed three years and the Board must purchase the buses from vendors approved by the Department of Public Instruction.
The Department of Public Instruction will make the payments to the lender on behalf of the Brunswick County Board of Education out of funds allocated to the Brunswick County Board of Education.
Because future resources will be used to fund the payments under the installment agreement, no encumbrance of fund balance at June 30, 2004, has been recorded.The payments due in the fiscal year ended June 30, 2005 are as follows: Total purchase price, 9 buses $ 578,628 Total payments due in 04-05 $ 192,876 Remaining payments in subsequent years 5 385,752 B. Liabilities V 1. Pension Plan Obligations
- a. Teachers' and State Employees' Retirement SVstem Plan Description.
Brunswick County Board of Education contributes to the statewide Teachers' and State Employees' Retirement System (TSERS), a cost sharing multiple-employer defined benefit pension plan administered by the State of North Carolina.
TSERS provides retirement (including health care), death and disability 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.
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
- 40 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA C NOTES TO BASIC FINANCIAL STATEMENTS Note 2. Detail Notes on All Funds (Continued)
- 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, or by calling (919) 981-5454.* Funding Policy. Plan members are required by State statute to contribute six percent of their annual covered salary to the System and the Board is required to contribute at* an actuarially determined rate. The rate for 2004 was 3.42% of annual covered payroll* for all pension and post-employment benefits.
The contribution requirements of plan members and Brunswick County Board of Education are established and may be amended by the North Carolina General Assembly.
The Board's contributions to* TSERS for all benefits for the years ended June 30, 2004, 2003 and 2002 were* $1,763,454, $1,474,203 and $2,071,931 respectively, equal to the required contributions for each year.* b. Post-employment Benefits AIn addition to providing pension benefits, the Board provides disability benefits and* post-retirement health care benefits and death benefits, in accordance with State Am statutes, to certain employees.
These benefits are provided through multiple-employer cost-sharing plans administered by the State. The Board makes monthly contributions to the State for these benefits.
Health care benefits are available to* retirees of the Teachers' and State Employees' Retirement System (System) who A have at least five years of contributing membership in the System. If a retiree was hired prior to October 1, 1995, and retires with at least 5 years of service, the System 36 pays the full cost of coverage for all retirees enrolled in the State's self-funded
- Teachers' and State Employees' Comprehensive Major Medical Plan. 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. If a retiree was hired on or 4 after October 1, 1995, and retires with at least 5 years of service, health care 4b coverage is available to the retiree if he or she pays the full premium for coverage.
If the retiree has at least 10 years of service but less than 20, coverage is available if the retiree contributes 50% of the premium cost. If the retiree has 20 or more years of 4 service, coverage is provided at no cost if the retiree chooses the State Employees' Comprehensive Major Medical Plan. The health benefit plans are funded by the State on a pay-as-you-go basis.s Death benefits are provided through the Benefit Plan for members of the Teachers'so and State Employees' Retirement System (Death Benefit Plan), a multiple-employer State-administered cost-sharing plan funded on a one-year term cost basis.so Employees who die in active service after one year of contributing membership 4 service in the System, or who die within 180 days after retirement or termination of service and have at least one year of contributing membership service in the System at the time of death are eligible for death benefits.
Lump sum death benefit payments 4 to beneficiaries are equal to the employee's highest 12 months salary in a row during the 24 months prior to his/her death, not to exceed $20,000. Effective July 1, 2004, the death benefit will be at least $25,000 and no more than $50,000.*4 7, .4 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 2. Detail Notes on All Funds (Continued)
Short-term and long-term disability benefits are provided through the Disability Income Plan of North Carolina (Disability Income Plan), a multi-employer State-administered cost-sharing plan, which also is funded on a one-year term cost basis. Long-term disability benefits are payable from the Disability Income Plan 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.
An employee is eligible to receive long-term disability benefits if the following requirements are met: 1) the employee has five years of contributing membership service in the System earned within 96 months prior to the end of the short-term disability period; 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, whichever is later, 3) the employee must be certified by the Medical Board to be mentally and 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; and 5) the employee must not be eligible to receive an unreduced retirement benefit from the System. In addition, recipients of long-term disability benefits are eligible to receive State-paid health insurance coverage.
The monthly long-term disability benefit is equal to 65 percent of one-twelfth of an employee's annual base rate of compensation reduced by any social security or workers' compensation to which the recipient may be entitled up to a maximum of$3,900 per month, plus additional minor adjustments.
When an employee qualifies for an unreduced service retirement allowance from the System, the benefits payable from the Disability Income Plan will cease, and the employee will commence retirement under the Teachers' and State Employees' Retirement System.All short-term disability benefit payments are made by various State-administered plans. The Board has no liability beyond payment of monthly contributions except for short-term disability benefits, which are paid by the Board during the first six months of the short-term period. Contributions are determined as a percentage of covered monthly payrolls.
Annually, the State sets monthly contribution rates for post-retirement health care benefits, death benefits and disability benefits, which are the same for all boards of education across the State. For the fiscal year ended June 30, 2004, the Board made contributions to the State for post-employment health care benefits of $1,650,015; this contribution represented 3.20% of covered payroll. No contributions were required or made for death and disability benefits.
The contributions for post-retirement health care cannot be separated between the post-retirement benefit amounts and the other employee benefit amounts. Because the benefit payments are made by the various State-administered plans and not by the Board, the Board does not determine the number of eligible participants.
42.f 7e*CO_s6 W_e c Wiz Wf_W V-b BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 2. Detail Notes on All Funds (Continued)
- 2. Accounts Payable Accounts payable as of June 30, 2004, are as follows: Governmental activities:
General Other Governmental Total Business-type activities Child Nutrition 3. Unearned Revenues The balance in unearned following elements: Sales tax refunds receh Sales tax refunds receh Sales tax refunds receh Total 4. Risk Management Vendors Salaries and Benefits
- Total$ 326,449 $ 430,932 $ 757,381 2,500,055 2,900,449 5,400,504$ 2,826,504
$ 3,331,381
$ 6,157,885$ -S 106,122 $ 106,122 revenues of governmental activities at year-end is composed of the table (State Public School Fund)/able (Federal Grants Fund)/able (Capital Outlay Fund)Uneamed Revenue$ 77,401 25,390 175,303$ 278,094 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.
The Board participates in the North Carolina School Boards Trust (the Trust), a member funded risk management program administered by the North Carolina School Boards Association.
Through the Trust, the Board maintains general liability and errors and omissions coverage of 51 million per claim and workers' compensation coverage up to the statutory limits for employees not paid from State funds. The State of North Carolina provides workers'compensation for employees paid from State funds. The Trust has an annual aggregate limit for general liability of $2,000,000 and $1,400,000 for errors and omissions.
The Trust is reinsured through commercial companies for losses in excess of $100,000 per claim for errors and omissions and general liability coverage, and for losses in excess of $275,000 per claim for workers' compensation coverage.
The Board also participates in the Public School Insurance Fund (the Fund), a voluntary, self-insured risk control and risk-financing fund administered by the North Carolina Department of Public Instruction, insuring the tangible property assets of the Board. The Fund provides coverage up to $10 million per occurrence and $20 million in aggregate annually.
Excess reinsurance is purchased through commercial insurers, who participate in property losses in excess of the Fund's self-insured retention of$10 million. A total limit of $100 million per occurrence is purchased for covered catastrophic events and $400 million maximum per occurrence for any one flood or earthquake.
43 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 2. Detail Notes on All Funds (Continued)
The Board also participates in the Teachers' and State Employees' Comprehensive Major Medical Plan, a self-funded risk financing pool of the State administered by Blue Cross and Blue Shield of North Carolina.
Through the Plan, permanent full-time employees of the Board are eligible to receive health care benefits up to a $5 million lifetime limit. In addition, employees had the option of receiving health care benefits through one of the health maintenance organizations (HMOs) offering coverage to teachers and State employees.
Effective October 1, 2001, HMOs were no longer offered to Board employees.
The Board pays the full cost of coverage for employees enrolled in the Comprehensive Major Medical Plan.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 have not exceeded coverage in any of the past three fiscal years.5. Long-Term Obligations
- a. Capital Leases As authorized in State law G.S. 115C-528(a), the Board entered into various lease agreements to lease modular units. The leasing arrangements were made for three years, and, at the conclusion of each of the leases, ownership is transferred to the Board. The lease agreements qualify as capital leases for accounting purposes; therefore, the obligations have been recorded at the present value of the future minimum lease payments as of the date of their inception.
At June 30, 2004, assets recorded under the capital lease were as follows: Accumulated Net Book Classes of Property Cost Depreciation Value Modular units $ 91,497 $ 4,168 $ 87,329 The following is a schedule of the future minimum lease payments and the net present value of the minimum lease payments as of June 30, 2004: Year Ending June 30 Governmental Activities 2005 $ 32,931 2006 12,612 2007 1,051 Total minimum lease payments 46,594 Less: amount representing interest 2,432 Present value of the minimum lease payments $ 44,162 44 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 2. Detail Notes on All Funds (Continued)
- b. 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, 2004: Balance Balance Current Governmental activities:
Capitalized leases Compensated absences Total Business-type activities:
Compensated absences July 1, 2003 Increases Decreases June 30, 2004 .Portion$ -$ 44,162 $ -$ 44,162 $ 30,499 3,648,355 2,779,300 2,369,783 4,057,872 2,369,783$ 3,648,355
$ 2,823,462
$ 2,369,783
$ 4,102,034
$ 2,400,282$112,052 $ 125,104 S 84,025 $153,131 $ 85,147 Compensated absences are typically liquidated by the general and other governmental funds.C. Interfund Balances and Activity From the General Fund to the Capital Outlay Fund for renovation of the freezer and refrigeration warehouse in the Child Nutrition Program.Amount$ 175,000 Note 3. Jointly Governed Organization The Board of Trustees of Brunswick Community College is comprised of thirteen members.Brunswick County Board of Education appoints four trustees, the Board of County Commissioners appoints four trustees, the Governor appoints four trustees, and the President of the student body is an ex officio nonvoting member of the Board.Note 4. Summary Disclosure of Significant Commitments and Contingencies A. 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 moneys 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 moneys.B. Litigation At June 30, 2004, the Board was involved in various items of pending or threatened litigation.
The estimated costs of settlement are not considered material.45 E BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA NOTES TO BASIC FINANCIAL STATEMENTS Note 4. Summary Disclosure of Significant Commitments and Contingencies (Continued)
C. Fines, Forfeitures and Supplemental School Tax 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 (SB 1217), section 91.1, determined that payments would not begin until July 1, 2003, and that no retroactive payments would be made prior to that date. Therefore, beginning with the fiscal year 2003-2004, the Brunswick County Board of Education 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$39.06 per student enrolled in a charter school. For the fiscal year ended June 30, 2004, there were 203 residents of Brunswick County enrolled in various charter schools in the State.Total fines and forfeitures revenue 2003-2004
$ 411,176 Total ADM for 2003-2004 10,528 Total per-pupil revenue $ 39.06 Note 5. Pronouncements Issued, Not Yet Effective The Governmental Accounting Standards Board (GASB) has issued several pronouncements that have effective dates that may impact future financial presentations.
Management has not currently determined what, if any, impact implementation of the following statements may have on the financial statement of Brunswick County Board of Education.
- GASB Statement Number 42, "Accounting and Financial Reporting for Impairment of Capital Assets and Insurance Recoveries."* GASB Statement Number 45, *Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions." Additionally, the Governmental Accounting Standards Board issued Statement Number 44,"Economic Condition Reporting:
The Statistical Section" which amends portions of previous guidance related to the preparation of a statistical section when presented as a required part of a comprehensive annual financial report (CAFR).46 SUPPLEMENTARY INFORMATION COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES NON-MAJOR GOVERNMENTAL FUND DESCRIPTIONS:
The Federal Grants Fund is used to account for all federal grants that pass through the North Carolina Department of Public Instruction.
The Individual Schools Fund is used to account for the activity funds of the individual schools. The primary revenue sources include funds held on behalf of various clubs and organizations, receipts from athletic events and proceeds from various fund raising activities.
The individual schools are not required to operate pursuant to a legally adopted budget.47 Brunswick County Board of Education, North Carolina* Combining Balance Sheet Non-major Governmental Funds June 30,2004 Special Revenue Assets: Cash and cash equivalents Due from other governments Total assets Liabilities and Fund Balances: Uabilities:
Accounts payable and accrued fiabilities Unearned revenue Total liabilities Fund balances: Unreserved:
Undesignated Total fund balances Total liabilities and fund balances Federal Grants Fund$ 7,367 231,659$ 239,026$ 213,636 25.390 239,026$ 239,026 Individual Schools$. 636,081 50,194$ 686,275$686.275 686,275$ 686,275 Total Non-major Governmental Funds$ 643,448 281,853$ 925,301$ 213,636 25,390 239,026 686,275 686,275$ 925,301 48 Brunswick County Board of Education, North Carolina Combining Statement of Revenues, Expenditures and Changes In Fund Balances Non-major Governmental Funds For the Year Ended June 30,2004 Special Revenue Federal Grants Fund$ 5,481,728 Revenues: U.S. Government Fund raising activities Athletics Local ABC profits Clubs and organizations Interest Contributions and other Total revenues 5,481,728 Individual Schools$280,956 281,025 46,364 520,183 4,491 353,916 1.486,935 579,447 793,436 1,372,883 Total Non-major Governmental Funds$ 5,481,728 280,956 281,025 46,364 520,183 4,491 353,916 6,968,663 1,217,322 2,513,005 793,436 557,385 1,305,316 6,386,464 Expenditures:
Instructional programs: Regular Special Co-curricular Student services Other Total instructional 637,875 2513,005 557,385 1,305,316 5,013,581 Support services: Pupil Instructional staff Administrative Central Other Total support services 8,734 2,950 166,653 13,881 72,529 264,747 8,734 2,950 166,653 13,881 72,529 264,747 Non-programmed charges Total expenditures Revenues over expenditures 203,400 5,481,728 1,372,883 114,052 203,400 6,854,611 114,052 Fund balances -beginning Fund balances -ending 572,223$ 686,275 572,223 S 686,275 49 w fw.(THIS PAGE INTENTIONALLY LEFT BLANK)50 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for specific revenues that are restricted to expenditure for particular purposes.Individual Fund Descriptions:
Federal Grants Fund accounts for funds received from various federal grant programs and must also be accounted for according to the provisions of G.S. 11 5C438.The Individual Schools Special Revenue Fund accounts for the revenues and expenditures of the individual school activity funds.51 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA SCHEDULE OF INDMDUAL SCHOOLS FUND BALANCE SHEET DETAILS Detail by Individual Schools June 30,2004 Elementary Schools -w Jessie Mae Belvile Bolivia Monroe Lincoln Southport Supply Union w ASSETS Cash and investments Due from other governments Total assets S 20,833 1,845 S 22.678$ 49,979 2,831$ 52,810$ 14,928 $ 4,859 $ 19.076 $ 21.173 1,199 1,678 3,274 1.490 S 16.127 $ 6,537 S 22.350 $ 22.663 2 -.-.-=LIABILITIES AND FUND BALANCES Fund balances: Unreserved Total fund balances 22.678 52.810 16,127 6.537 22,350 22,663 22.678 52,810 16.127 6,537 22,350 22,663 Total liabilities and fund balances$ 22,678 $ 52,810 S 16,127 S 6,537 S 22,350 S 22,663 3== ~= ~= ~= =S 58 774 2,821W S 61,595 .61,595 61.595 W S 61,595 O*C: SC p B_ _p 5-c 1--_w F 52 Middle Schools High Schools-Virginia Williamson Waccamaw Brunswick South North South West Learning Leland Shallofte Brunswick Brunswick Brunswick Brunswick Center Totals$ 22.508 1.716$ 24.224$ 36.897 2A453$ 39,350$ 19,238 1.566$ 20,804$ 29,264 2,812$ 32.076 5 19,153 7,064 5 26,217 S 51,508 2,527$ 54,035$ 165,887 10,039$ 175,926$ 85,378 6,450$ 91,828$ 16,626 429$ 17,055$ 636,081 50.194 S 686,275 24,224 39,350 20.804 32,076 26.217 54,035 175,926 91.828 17,055 686,275 24.224 39,350 20,804 32,076 26,217 54,035 175,926 91,828 17,055 686,275$ 24,224 $ 39,350 $ 20,804 S 32,076 S 26.217 S 54,035 $175,926 $ 91,828 S 17,055 $ 686,275= == =.= = .=53 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA SCHEDULE OF INDMDUAL SCHOOLS FUND REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DETAILS Detail by Individual Schools For the Fiscal Year Ended June 30,2004 Revenues: Fund raising activities (Net of Costs)Athletics Clubs and organizations Local ABC profits Interest Contributions and other Total revenues Expenditures:
Current Instructional programs: Regular AthleticlCo-Curricular Total expenditures Excess of revenues over (under) expenditures Fund balance, beginning Fund balance, ending Elementary Schools Jessie Mae Beville Borivia Monroe Lincoln Southport Supply Union$ 542 5 467 $ 7,529 5 2,540 $ 8,101 5 6,607 $ 9,827 10,877 28,444 27,443 14,805 43,924 25,451 31,878----6,004 50 220 18 14 31 23 56 16,643 15,685 6,399 7,558 24,166 7.363 11.711 28,112 44.816 41,389 24.917 76,222 39,444 59.476 23,213 22.562 25,833 15,013 71,471 32,028 42,188 11,859 10,896 6,337 5,870 7,708 3,793 12.854 35,072 33,458 32,170 20,883 79,179 35,821 55,042 (6,960) 11,358 9,219 4,034 (2,957) 3,623 4,434 29,638 41,452 6,908 2,503 25,307 19,040 57,161 22,678 S 52,810 $ 16,127 $ 6,537 $ 22,350 S 22.663 $ 61,595 W...:F IF IpF IF IF IF: wIF 0IF*I=WI OF OF IjF (PF&W IF OR=IF-VZ aim IF 4w 4w IF IF or or 54 Middle Schools High Schools Middle Schools Hiah Schools Virginia Williamson South North South Leland Shanlotte Brunswick Brunswick Brunswick Brunswick West Learning Brunswick Center Waccamaw Totals...... .. _ _ .... .. _ ... ._ .,$ 7.008 29,718 26 12,449 49,201 30,941 11,474 42,415 6,786$ 7,336 1,468 16,752 38 5,118 30,712 15,398 11,404 26,802 3,910$ 3,835 3,610 18,298 30 10.336 36.109$ 3,701 16,192 40,460 36 11.616 72,005$ 16,100 24,801 23,212 15,930 26 76,828 156,897 106,252 45,044'151.296 5,601$ 13,533 55,592 57,758 69 15,834 142,786$ 142,375 90,929 53,684 15,930 3,703 64,066 370,687$ 48,847 88.433 97,479 8,500 135 42,266 285,660 43,626 202,265 245,891 39,769$ 2,608 $ 280,956-281,025-520,183 46,364 16 4,491 25,878 353,916 28,502 1,486,935 21,986 15,657 17,984 38,669 39,970 54,326 (3,861) 17,679 24,600 77,402 117,071 283,035 141,671 360,437 1,115 10,250 11,277 7,173 18,450 579,447 793,436 1,37,2883 10,052 114,052 17,438 35,440 24,665 14,397 20,616 52,920 165,676 52.059 7,003 572,223 S 24.224 $ 39,350 $ 20,804 $ 32,076 $ 26,217 $ 54.035 S 175,926 $ 91,828 S 17,055 $ 686,275 55 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL Federal Grants Fund For the Fiscal Year Ended June 30, 2004 Federal Grants Fund Budget Actual Revenues: U.S. Government Total revenues 6,423,470
.6,423,470 Expenditures:
Current: Instructional programs: Regular Special Student services Fringe benefits Total instructional Supporting services: Pupil Instructional staff General administrative Business and operating Fringe benefits Total supporting Nonprogram charges Total expenditures Revenues over expenditures 666,704 2,911,328 644,514 1,577,700 5,800,246 8,734 9,806 169,254 31,164 98,020 316,978 306,246 6,423,470=$5,481,728 5,481,728 637,875 2,513,005 557,385 1,305,316 5,013,581 8,734 2,950 166,653 13,881 72,529 264,747 203,400 5,481,728 Variance Favorable (Unfavorable)
(941,742)(941,742)28,829 398,323 87,129 272,384 786,665 6,856 2,601 17,283 25,491 52,231 102,846 941,742-$Fund balance, beginning Fund balance, ending$0: Or Orz 410Z 11W 0--OM%k--0:7 w go: W: IN*--00: NO: 10-10-1 f0k: 4w w OM W-.w or 4w 56 A CAPITAL OUTLAY FUND The Capital Outlay Fund is used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and fiduciary funds.I-57 ELF f ff e f f* w (THIS PAGE INTENTIONALLY LEFT BLANK) @;* P v v P v v I'v P-P P.*A,.TIC, Qua'I'v s. 1...* .* &* v* pimp...
BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL Capital Outlay Fund For the Fiscal Year Ended June 30, 2004 2004 Revenues: Brunswick County State of North Carolina Total revenues Budget$ 36,833,850 69 36,833,919 Expenditures:
Capital outlay: Category I (land, building, etc.)Category II (furniture and equipment)
Category III (vehicles)
Total expenditures Excess of revenues over (under)expenditures Other financing sources: Transfer in Fund balance appropriated Capitalized leases Total other financing sources 36,666,212 465,737 231,566 37,363,515 (529,596)175,000 354,596 529,596 Actual$ 18,433,458 18,433,458 18,131,507 370,360 226,613 18,728,480 (295,022)175,000 44,162.219,162 Variance Favorable (Unfavorable)
$ (18,400,392)
(69)(18,400,461) 18,534,705 95,377 4,953 18,635,035 234,574 (354,596)44,162.(310,434)
Excess of revenues and other financing sources over (under) expenditures
$(75,860) $ (75,860)Fund balance, beginning 609,534 Fund balance, ending$ 533,674 59 (THIS PAGE INTENTIONALLY LEFT BLANK)I 60 F-a B di r 30i J*gi 61 (THIS PAGE INTENTIONALLY LEFT BLANK)t 62 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA SCHEDULE OF REVENUES AND EXPENSES -BUDGET (ACCRUAL BASIS) AND ACTUAL -CHILD NUTRITION FUND Enterprise Fund For the Fiscal Year Ended June 30, 2004 2004 Variance Favorable (Unfavorable)
Budget Actual Operating revenues: Food sales Total operating revenues$ 1,581,247 1,581,247$ 1,580,253
$ (994)1,580,253 (994)Operating expenditures:
Support Services: Food costs: Purchased food Salaries and fringe benefits Materials and supplies Repairs and maintenance Depreciation Utilities Other Total operating expenses 1,550,878 2,114,816 202,364 40,057 108,322 9,031 380,644 4,406,112 1,550,878 2,162,538 190,384 38,983 107,485 9,031 388,723 4,448,022 (47,722)11,980 1,074 837 (8,079)(41,910)Operating revenue under expenses (2,824,865)
(2,867,769)
(42,904)Nonoperating revenues: Federal reimbursements and commodities Other revenues Total nonoperating revenues Loss before capital contributions 2,378,927 445,938 2,824,865 2,399,399 382,481 2,781,880 (85,889)20,472 (63,457)(42,985)(85,889)Capital contributions 642,686 642,686 Revenue and other financing sources over expenditures
$ -$ 556,797 $ 556,797 63
- e1 eK (THI PAG INTNTINALL LEF BLAK)6K* K 6K vK 6, 6K 6K 6K 6K 6K eK 6K* RK 64e As An'U EU m s FIDUCIARY FUND: .Fiduciary Funds are used to account for assets held by the Board in a trustee capacity.Individual Fund Descriptions:
Private-Purpose Trust Fund accounts for the accumulation of resources for scholarship grants and other EU awards to qualified students.*! 65 EU ...Al &
(THIS PAGE INTENTIONALLY LEFT BLANK)66 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET (MODIFIED ACCRUAL BASIS) AND ACTUAL Private-Purpose Trust Fund For the Fiscal Year Ended June 30, 2004 2004 Variance Favorable (Unfavorable)
Budget -Actual Operating revenue: Other Operating expense: Scholarship payments Revenues over (under) expenditures Fund balance, beginning Fund balance, ending$ 6,960 $ 3,411 6,960$6,352 (2,941)*105,846$ 102,905$ (3,549)608$ (2,941)67 (THIS PAGE INTENTIONALLY LEFT BLANK)68 CAPITAL ASSETS--69 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA SCHEDULE OF CAPITAL ASSETS BY FUNCTION AND SOURCE As of June 30,2004£1 I (C Land and Land Improvements Buildings Vehicles Furniture and Equipment Construction in Progress Total BY FUNCTION e Instructional:
Elementary Schools Middle Schools High Schools Special Schools Administrative:
General Transportation Total Capital Assets by Function BY SOURCE Capital Projects Fund General Fund Special Revenue Fund Donations Total Investment In Capital Assets$ 2,218,252 1,872,707 2,963,173 69,573$ 53,116,710 23,525,859 53,769,699 106,389$18,939$ 488,272 264,029 486,459 20,814 1,027,818 113,507$10,833,148 7,339,837 375,948$ 66,656,382 33,002,432 57,238,270 572,724 25,404 870,027 20,141 251,221 541,724 7,994,179 1,943,390-8,900,631 I$ 7,400,330
$131,930,408
$8,033,259
$2,400,899
$18,548,933
$168,313,$ 164,755, 211, 1,950, 1,397,$ 168,313, 829 (I.025 ,379 4 ,233 t ,192 e ,829 ((l ((((70 BRUNSWICK COUNTY BOARD OF EDUCATION, NORTH CAROLINA SCHEDULE OF CHANGES IN CAPITAL ASSETS -BY SOURCES For the Fiscal Year Ended June 30,2004 Land and Land Improvements Buildings
-$ 7,123,902
$ 92,510,517 Capital assets, beginning Additions by source: Expenditures from Capital Projects Expenditures from Special Revenue Fund Donations Total additions Less retirements Capital assets, ending 58,477 304,311 362,788 86,360$ 7,400,330 39,419,891 39,419,891
$131,930,408
.Vehicles$7,787,017 213,678 46,230 259,908 13,666$8,033,259 Furniture and Equipment$2,367,433 35,964 45,580 81,544 48,078$2,400,899 Construction in Progress Total$41,674,672
$ 151,463,541 16,162,855 16,162,855 39,288,594
$18,548,933 55,890,865 45,580 350,541 56,286,986 39,436,698
$ 168,313,829 71 (THIS PAGE INTENTIONALLY LEFT BLANK)J.72 BRUNSWICK COUNTY BOARD OF EDUCATION GENERAL SCHOOL SYSTEM REVENUES BY SOURCE GOVERNMENT-WIDE (GOVERNMENTAL ACTIVITIES)
A$60,000,000-
$55,000,000
-$50,000,000
-$45,000,000
$40,000,000
-$35,000,000
-$30,000,000
$25,000,000
-$20,000,000
$15,000,000
-$10,000,000
-,$5,000,000
-o CHARGES FOR SERVICES* OPERATING GRANTS/CONTRIBLIrTONS o CAPITAL GRANTS/CONTRJBUTIONS o GENERAL 2003 2004 I V -General revenues include transfers to business-type activities I I FISCAL YEAR ENDED SOURCE 2003 2004 CHARGES FOR SERVICES $ 188,109 $ 15,943 OPERATING GRANTS/CONTRIBUTIONS 53,237,418 56,005,294 CAPITAL GRANTS/CONTRIBUTIONS 120,148 _GENERAL 1 39,912,620 l 39,971,246 TOTAL $93,458,295 1 $ 95,992,483 73 4 BRUNSWICK COUNTY BOARD OF EDUCATION GENERAL SCHOOL SYSTEM EXPENSES BY FUNCTION GOVERNMENT-WIDE (GOVERNMENTAL ACTIVITIES)
$60,000.000
$55,000,000
$50,000,000
-$45,000,000
$40,000,000
-$35,000,000
-$30,000,000
-$25,000,000
-$20,000,000
-$15,000,000 r$10,000.000
$5,000,000
-o INSTRUCTIONAL PROGRAMS*SUPORTSER/ICES o NON-PROGRAME CHARGES o IERCATION I, wo, w5 WZ ASW.I W., 2003 2004 I -Non-programmed charges include community services I FISCAL YEAR ENDED FUNCTION 2003 2004 INSTRUCTIONAL PROGRAMS $53,045,879
$ 55,725,8 SUPPORT SERVICES 22,574,340 23,627,0 NON-PROGRAMMED CHARGES 397,445 413,0 DEPRECIATION 2,756,252
.3,558,9 TOTAL $78,773,916
$ 83,324,8 3 ~, 876W 146 W W.I. W, 74 BRUNSWICK COUNTY BOARD OF EDUCATION SOURCES OF GOVERMENTAL FUND TYPE REVENUES (EXCLUDING INDIVIDUAL SCHOOL FUNDS) -LAST TEN FISCAL YEARS$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000 I P 8 r o OTHER I oFEDERAL* COUNlY a STATE-J V.FISCAL YEAR ENDED FUND TYPE 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 STATE S 29.914,782 S 30,190,558 S 33.406,603
$ 38,741,462 5 46,940,845 S 43,316,749
$ 46,900,724 S 45,931,331 S 46,873,935 S 48,480,859 COUNTY 12,369,066 19,515,831 14,823,512 15,846.529 20,470,9 3 8 24,367,834 28,330,409 48,741,903 39,033,986 39,518,671 FEDERAL 1,941,172 1,756,155 2,637,985 2,722,721 3.132,735 3,444,132 3,714,044 4,491,074 4,816,902 5,802,353 OTHER 594,055 514,895 645,040 1.549,819 1.704,572 1,283,662 1,384,637 993,789 1,036,998 1,168,200 TOTAL $ 44,819,075
$ 51,977,439
$ 51,513,140
$ 58,860,531
$ 72,249,090
$ 72,412,377
$ 80,329,814
$ 100,158,097
$ 91,761,821
$ 94,970,083 BRUNSWICK COUNTY BOARD OF EDUCATION GENERAL FUND EXPENDITURES BY FUNCTION IN TOTAL -LAST TEN FISCAL YEARS S25,000,000 520,000,000 S15,000,000 o COMMY SERVES 1 n StFFrT SEBVIES L_ .I$10,000.000-a 0'.S5.000,000 MD 199o 1997 199o IAF wuJ ZWu 1 LuJ ZW4 1 -CowMunity services indude nopogrm char FISCAL YEAR ENDED FUNCTION 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 INSTRUCTIONAL S 3.638,550 S- 4,465,875 S 4,716,718 S 5,016.710 S 5,785,800 S 6,544,143 S 8,003,372 S 7,818,461 S 8,770,197 S 9,833,043 SUPPORT SERVICES 6,741,101 6.842,240 8.518,628 9,192,693 8,502,051 9,843,918 11,798,027 11,988,306 12,034,515 13,521,238 COMMUNITY SERVICES 19,203 27,183 23,284 127,196 91,990 128,822 11,766 182.210 289,593 413,046 TOTAL S 10,398,854 S 11,335,298 S 13,258,630 S 14,336,599
[S 14,379,841 S 16,516,883 S 19,913,165 S 19,988,977 S 21,094,305 S 23,767,327 i i A t I i s s Xs a u s I I I I I e s a 6 W 6 b 6 I I I 0 6 I I I a I I I I I I I I I a BRUNSWICK COUNTY BOARD OF EDUCATION GENERAL FUND EXPENDITURES BY FUNCTION PER PUPIL -LAST TEN FISCAL YEARS 51,__0 ID o~&,r ~~SI .250 a SUFPORTSERVICES
[ar'NSTRLE7ION4AL-J-J 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Il -cofnmity services inehrde rw"Ya m chae I FISCAL YEAR ENDED FUNCTION -- 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 INSTRUCTIONAL S 410 S 493 $ 506 $ 524 S 594 $ 656 S 794 $ 758 S 841 S 934 SUPPORT SERVICES 759 756 913 961 873 986 1,170 1,162 1,154 1,284 COMMUNITY SERVICES 2 3 3 13 10 13 11 17 28 39 TOTAL S 1,171 S 1,252 S 1,422 S 1,498 S 1,477 S 1,655 S 1,975 S 1,937 S 2,023 S 2,257 BRUNSWICK COUNTY BOARD OF EDUCATION SPECIAL REVENUE (STATE AND FEDERAL) FUND EXPENDITURES BY FUNCTION IN TOTAL -LAST TEN FISCAL YEARS).000,000
_).000.000 , .-.00_0_ I __).000 000 a ?ISRUZUNAL-j 00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004l .Conwrn" services Indude non prorn car j_ _ _ _ _ _ I i .._FUNCTION INSTRUCTIONAL SUPPORT SERVICES COMMUNITY SERVICES TOTAL t 1995 I 1996 l 1997 l_ S 22,937,338 S 22,726.674 S 25,381,169 S 7,331,519 8,147,404 9,161,057
_79,991 35,012 53,485 _S 30.348.848 S 30.909.090 S 34.695.711t S 1998 I)202 13S FISCAL YEAR ENDED 1999 2000 36,151,526 S 38,278,057
$ S 7,210,329 7,631,867
_98,214 91,959 _43,458,069 S 46,.001,883 S I 48,659,064 S I 2002 1 41,478,190 K 7,646,026
=139,558 _--49,263,774 S 2003 2004 1 42,630,311 S 4 7,821,254 8,071640 147,400
- 20,0 S0,698,9$5 S 52,7566,255 I : 1 1 I I I I I I 'll% % %
.~~I s:'.1ls 114 I I I' t1 I .0 I .14 I I'l'l <l IF A I (,I A A j iv I I A. I l X X X <l M BRUNSWICK COUNTY BOARD OF EDUCATION SPECIAL REVENUE (STATE AND FEDERAL) FUND EXPENDITURES BY FUNCTION PER PUPIL -LAST TEN FISCAL YEARS_6.000 S5,000$4,000 jxlll;77-0:COMMUNITY SERVICESJ$3.00 U SUPPORT SERVICES a INSTRUCTIONAL 10$2,000$1,000 s.I Co"fy serices m rown- am chvi S PaSCAL YEAR ENDED.~ ~I...FuNCTiON INSTRUCTIONAL SUPPORT SERVICES COMMUNITY SERVICES TOTAL_s 3,4165 1996 1 2,510 S 900_4. _3.414 5 1997_2,721 5 3,709 5-1998 3,348 5 712_6=4,066 5 FISCAL YEAR ENDED 1999 2000 _3,713 S 3,835 5 740 765 _10 9=4.4$3 S 4,609 5 l 2001_4,825 2002 2003 _4,020 S 4.089 S 741 750_140 140 4,775 5 4,853 5 2004 4,229 763 19 5,011_
It---: BRUNSWICK COUNTY BOARD OF EDUCATION AVERAGE DAILY MEMBERSHIP
-LAST TEN FISCAL YEARS 11,000 10,500 0,000 0o So 9,500 9,000 8,500 8,000 1995 1996 1997 -1998 1999 2000 2001 2002 2003 2004 I FISCAL YEAR ENDED FISCAL YEAR ENDED I 199 199199997 199199999 2000 2001 2002 2003 2004 PUPILS 8.885 9,056 9.327 9.568 9,737 1 9,980 10.085 10,318 10.426 10.528 oft, % P... 0% ^ ^ 0-% #-% oft% on-. ^ #-% 0-.. 0-% vok -% m% -% --% ---------
t lZibll bb ) 3 ) 1 *
- ab AA e. as Il Go as a a a, BRUNSWICK COUNTY BOARD OF EDUCATION SOURCES OF CAPITAL OUTLAY REVENUES -LAST TEN FISCAL YEARS$35,000,000 f+ +$30.000,000
$25,000,000
$20,000,000
$15,000,000 H_ I §00$10,000,000
$5,000,000 S-77/ -i I I-II_,_i_I.1/' f o OTHME a STATE* co(JJ1 1995 1996 1998 2000 2004 FISCAL YEAR ENDED SOURCE 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 COUNTY $ 2,466,734
$ 7?684,601 S 2,541,048 S 2,631,717 S 5,918,762 S 8,126,794 S 11,019.039 S 30,312,990 S 18,890,529 S 18,433,458 STATE 770.000 184.619 656.521 2.202.788 6.267,571 398,668 376.067 66.868 8,132 -OTHER 82,941 626 2.733 .700,000 --TOTAL S 3.319,675
$ 7.869,846 S 3,200,302 S 4.834,505
$ 12,886,333 S 8,525,462 S 11.395.106
$ 30.379,858 S 18,898,661 S 18,433,458 BRUNSWICK COUNTY BOARD OF EDUCATION CAPITAL OUTLAY EXPENDITURES IN TOTAL -LAST TEN FISCAL YEARS$35,000,000 I j E$30,000,000
-____ --_ -I$25,000,000
/-; -' -________ ._-$20,000,000 00 F ov~~~1 FuwRAflM&EOUwmuwi 1 D BUL0NGS & GROLNMS$15,000,000 s10.000,000
$5s000,000 EXPENDITURE 1996 BUILDINGS 1& GROUNDS S 2,814,963 S FURNITURE
& EQUIPMENT 698734_VEHICLES 80,481 _TOTAL S 3,694,178 S FISCAL YEAR ENDED 1996 1997 1998 1999 2000 2001 2002 7,167,028 S 1,814,297 S 3,929,268 S 12,478,898 S 7,847,409 S 9,967,373 S 29,732,415 S 801,741 1,120,037 732,392 423,463 1,210,384 1,402,679 1,050,260
_80,066 ' 405,052 209,660 309,813 400,198 519,077 147,958 _8.048.833
$ 3,339,386 S 4.871,318 S 13,210.174 S 9,457.991 S 11.889,129 S 30,930,633
$2003 2004 18,034j514 S 18,131,507 501,188 370,360 364,983 228,.913 18,S00,685 S 18,728,480-, A A A A A A o Oi O onA 0 0 0 O --o ---^
() ij (1 IS t 1 tj .J 4U , ll ...J J is.I U a BRUNSWICK COUNTY BOARD OF EDUCATION CAPITAL OUTLAY EXPENDITURES PER PUPIL -LAST TEN FISCAL YEARS$3,000$2=lj----tl
$2,5000 t995 1996 1902 1200 a Bttt~t.S A GROUNDS$1,000 -.-_ _ _ _ _ _$5-FISCAL YEAR ENDED EXPENDITRE 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 BUILDINGS
& GROUNDS S 317 S 791 S 195 S 411 S 1,281 S 7865 988 S 2,882 S 1,730 S 1.722 FURNITURE
& EQUIPMENT 79 89 120 76 44 121 139 102 48 35 VEHICLES 9 9 43 22 32 40 52 14 35 22 TOTAL S 405 $ 889 S 358 $ 509 S 1,357 S 947 $ 1,179 S 2,998 $ 1,813$S 1,779 BRUNSWICK COUNTY, NORTH CAROLINA DEMOGRAPHIC STATISTICS
-LAST TEN FISCAL YEARS FISCALYEAR ENDED POPULATION PERCAPITAINCOME MEDIAN AGE SCHOOLENROLLMENT UNEMPLOYMENT RATE 1995 61,667 16,628 39.7 8,885 8.7%1996 63,803 17,305 40.2 9,056 7.2%1997 65,938 17,978 40.7 9,327 5.2%1998 68,074 19,731 41.2 9,568 5.1%1999 71,437 20,178 41.8 9,737 4.1%2000 73,692 20,507 42.3 9,980 4.6%2001 .75,563 21,707 42.5 10,085 *5.4%2002 78,822 23,046 42.8 10,318 6.1%2003 80,751 23,714 43.2 10,426 6.4%2004 83,787 24,568 43.6 10,528 6.0%(Note 1) (Note 1) (Note 1) (Note 1)co Note 1: Source -Brunswick County Finance Department BRUNSWICK COUNTY, NORTH CAROLINA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS -LAST TEN FISCAL YEARS FISCAL COMMERCIAL CONSTRUCTION YEAR NUMBER VALUE RESIDENTIAL CONSTRUCTION NUMBER VALUE ENDED* 1995* 1996 1997 1998 1999 2000 2001 2002 2003 2004 OF UNITS 36 50 102 110 187 227 268 292 400 344 (IN 1000'S)6,700 9,300 15,500 16,300 12,350 26,970 23,269 22,965 47,672 40,699 OF UNITS 226 316 486 524 704 788 783 848 1,155 1,561 (IN 1000'S)21,800 27,800 32,700 40,000 60,260 122,830 113,925 115,376 137,653 184,687 BANK DEPOSITS (IN 1000'S)534,039 572,990 608,974 658,182 704,672 752,000* 812,000 887,000 994,000 UNAVAILABLE COMMERC* (IN 1000'S 3,484,04!2,294,98E 2,351,799 2,376,98W 2,205,54E 2,962,95E 3,047,13C 3,101,51k 3,095,687 3,456,35(PROPERTY VALUE IAL RESIDENTIAL
- ) (IN 1000'S)5 2,269,949 3,659,762 5 3,830,859 3 4,174,097 i 4,378,307 6,600,673 6,788,669 5 7,237,899 7 7,587,669 9,451,060___ ..TOTAL (IN 1000'S)5,753,994 5,954,750 6,182,654 6,551,080 6,583,855 9,563,632 9,835,799 10,339,414 10,683,356 12,907,410 Source -Brunswick County Finance Department (THIS PAGE INTENTIONALLY LEFT BLANK)
McGladrey&
Pullen Certified Public Accountants Independent Auditor's Report On Intemal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards To the Members of the Brunswick County Board of Education Bolivia, North Carolina We have audited the financial statements of the governmental activities, the business type activities, each major fund, and the aggregate remaining fund information of Brunswick County Board of Education as of and for the year ended June 30, 2004, which collectively comprise Brunswick County Board of Education's basic financial statements and have issued our report thereon dated September 14, 2004. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.Internal Control Over Financial Reporting In planning and performing our audit, we considered Brunswick County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting.
Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be material weaknesses.
A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses.
Compliance and Other Matters As part of obtaining reasonable assurance about whether Brunswick 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.
McGladrey
& Pullen. LLP is a member firn of RSM International, an altirlation of separate and Independent legal entities.87 We noted certain matters that we reported to management of Brunswick County Board of Education in a separate letter dated September 14, 2004.This report is intended solely for the information and use of the Board, management, others within the organization, federal and state awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.Wilmington, North Carolina September 14, 2004 88 McGladrey&
Pullen Certified Public Accountants Independent Auditor's Report On Compliance With Requirement Applicable To Each Major Federal Program And On Internal Control Over Compliance In Accordance With OMB Circular A-133 And The State Single Audit Implementation Act To the Members of the Brunswick County Board of Education Bolivia, North Carolina Compliance We have audited the compliance of Brunswick County Board of Education with the types of compliance requirements described in the U. S. Office of Management and Budget (OMB) CircularA-133 Compliance Supplement and the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission, that are applicable to each of its major federal programs for the year ended June 30, 2004. Brunswick County Board of Education's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of Brunswick County Board of Education's management.
Our responsibility is to express an opinion on Brunswick County Board of Education's compliance based on our audit.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 Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-1 33, Audits of States, Local Govemments, 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 Brunswick 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. Our audit does not provide a legal determination on Brunswick County Board of Education's compliance with those requirements.
In our opinion, Brunswick County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2004.FcGladrey
& PuMen, LLP is a member firm of RSM Intemational, an affiliation of separate and Independent legal entities.89 Internal Control Over Compliance The management of Brunswick County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts and grants applicable to federal programs.
In planning and performing our audit, we considered Brunswick County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-1 33 and the State Single Audit Implementation Act.Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses.
A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the Board, management, others in the organization, and federal and state awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.Wilmington, North Carolina September 14, 2004'90-McGladrey&
Pullen Certified Public Accountants Independent Auditor's Report On Compliance With Requirements Applicable To Each Major State Program And On Internal Control Over Compliance In Accordance With Applicable Sections Of OMB Circular A-133 And The State Single Audit Implementation Act To the Members of the Brunswick County Board of Education Bolivia, North Carolina Compliance We have audited the compliance of Brunswick County Board of Education, North Carolina, with the types of compliance requirements described in the Audit Manualfor GovemmentalAuditors in North Carolina, issued by the Local Government Commission, that are applicable to each of its major state programs for the year ended June 30, 2004. Brunswick County Board of Education's major state programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major state programs is the responsibility of Brunswick County Board of Education's management.
Our responsibility is to express an opinion on Brunswick County Board of Education's compliance based on our audit.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 Government Auditing Standards, issued by the Comptroller General of the United States; applicable sections of OMB Circular A-133, as described in the Audit Manual for Governmental Auditors in North Carolina, and the State Single Audit Implementation Act. Those standards, applicable sections of 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 state program occurred.
An audit includes examining, on a test basis, evidence about Brunswick 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. Our audit does not provide a legal determination on Brunswick County Board of Education's compliance with those requirements.
In our opinion, Brunswick County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major state programs for the year ended June 30, 2004.McGladrey
& Pullen, LLP i a member fArm of RSM International, an affiliation of separate and Independent legal entities.91 Internal Control Over Compliance The management of Brunswick County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts and grants applicable to State programs.
In planning and performing our audit, we considered Brunswick County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major State program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with applicable sections of OMB Circular A-133 and the State Single Audit Implementation Act.Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses.
A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major state program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the Board, management, others in the organization, state awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.Wilmington, North Carolina September 14, 2004 92 Brunswick County Board Of Education, North Carolina Schedule Of Findings And Questioned Costs For the Year Ended June 30, 2004 Section I .- Summary of Auditor's Results Financial Statements Type of auditor's opinion issued: Unqualified Internal control over financial reporting:
Material weakness(es) identified?
-yes/ no Reportable condition(s) identified that are not considered to be material weaknesses?
Noncompliance material to financial statements noted?yes yes/ none reported V no Federal Awards Internal control over major programs: Material weakness(es) identified?
Reportable condition(s) identified that are not considered to be material weakness(es)?
-yes yes-no V none reported Type of auditor's report issued on compliance for major programs:
Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-1 33? yes / no Identification of major federal programs: CFDA Number(s)84.010 Name of Federal Program or Cluster Title I, Educationally Deprived Children Dollar threshold used to distinguish between type A and type B programs: Auditee qualified as low-risk auditee?$300,000/ yes no 93 Brunswick County Board Of Education, North Carolina Schedule Of Findings And Questioned Costs'For the Year Ended June 30, 2004 Section I -- Summary of Auditor's Results (Continued)
State Awards Internal control over major programs: Material weakness(es) identified?
yes V no Reportable condition(s) identified that are not considered to be material weakness(es)?
yes ( none reported Type of auditor's report issued on compliance for major programs:
Unqualified Any audit findings disclosed that are required to be reported in accordance with the State Single Audit Implementation Act?-yes/ no Identification of major State programs: State Public School Fund Section II. -- Financial Statement Findings The results of our auditing procedures disclosed no findings that are required to be reported in accordance with Government Auditing Standards.
Section 1II. -- Federal Award Findings and Questioned Costs The results of our auditing procedures disclosed no audit findings that are required to be reported in accordance with OMB Circular A-1 33.Section IV. -- State Awards Findings and Questioned Costs The results of our auditing procedures disclosed no audit findings that are required to be reported in accordance with applicable sections of OMB Circular A-1 33 and the State Single Audit Implementation Act.94&&'
Brunswick County Board Of Education, North Carolina Corrective Action Plan For the Year Ended June 30, 2004 Section 11. Financial Statement Findings The results of the auditors procedures disclosed no findings that require a corrective action plan.Section Ill.-- Federal Award Findings and Questioned Costs The results of the auditors procedures disclosed no findings that require a corrective action plan.Section IV. -- State Awards Findings and Questioned Costs The results of the auditor's procedures disclosed no findings that require a corrective action plan.95 Brunswick County Board Of Education, North Carolina Summary Schedule Of Prior Audit Findings .For the Year Ended June 30, 2004 There were no prior audit findings requiring comment./96 Brunswick County Board Of Education Schedule Of Expenditures Of Federal And State Awards For the Year Ended June 30, 2004 (Page I of 3)...U U U U U..a a a a a a a a a a a a a a.S o_M__a a__a A A, 111_Grantor/Pass-through Grantor/Program or Cluster Title Federal CFDA Number State/Pass-through Entity -Identifying Number Federal Grants: Cash Assistance:
Expenditures U.S. Department of Education Passed-through the N.C. Department of Public Instruction:
Special Education Cluster Individual with Disabilities Education Act-Grants to States-Preschool Grants Total Special Education Cluster Improving America School Act of 1994 (IASA)Title I, Grants to Local Educational Agencies-Educationally Deprived Children-Migrant Education Carl D. Perkins Vocational and Applied Technology Education Act Amendments of 1990-Basic Grants to States IASA Title IV, Part A-Safe and Drug Free Schools and Communities IASA Title II -Professional Development Program-Dwight D. Eisenhower Program IASA Title VI -Federal, State and Local Partnership for Innovative Programs IDEA VI-B -Capacity Building and Improvement FIE Low Performing Schools Improving Teacher Quality.Language Acquisition Grant Educational Technology Grant Even Start Family Literacy 84.027A 84.173A 060 $ 1,735,657 049 107,698 1,843,355 050 2,306,987 051 43,058 017 176,629 84.010A 84.011A 84.048A 84.186A 048 84.281A 067 84.298A 84.027A 84.332 84.367-84.365 84.318X 84.213C 059 044 041 103 104 107 341 85,560 10,097 79,817 31,977 93,488 711,308 25,646 58,806 56,092 Total U.S. Department of Education 5,522,820 97 Brunswick County Board Of Education Schedule Of Expenditures Of Federal And State Awards For the Year Ended June 30, 2004 (Page 2 of 3)Grantor/Pass-through GrantorlProgram or Cluster Title U.S. Department of Agriculture (Food and Nutrition)
Passed-through the N.C. Department of Public Instruction:
Child Nutrition Cluster: School Breakfast Program National School Lunch Program Total U.S. Department of Agriculture
-Child Nutrition Cluster Corporation for National and Community Service Passed-through the N.C. Department of Public Instruction:
National and Community Service Act of 1990-Learn and Serve America Program U.S. Department of Health and Human Services Passed-through the N.C. Department of Health and Human Services: Abstinence Until Marriage Family Preservation
-Teen Family Development Federal CFDA Number State/Pass-through Entity Identifying Number Expenditures
.10.553 10.555 035 $ 461,070 035 .1,690,144 2,151,214 94.004 93.235 93.556 064 057 390 7,980 7,020 78,119 85,139 VI el V.OW V0W V1W V W evl 11 15 or C9 Other Federal Assistance:
U.S. Department of Defense Direct Program: ROTC Program 12.XXX 301 192,232 Total federal cash assistance 7,959,385.
Noncash Assistance:
U.S. Department of Agriculture Passed-through the N.C. Department of Agriculture:
Food Distribution Program 10.550 035 217,992 Total federal assistance
$ 8,177,377 98 a'la di la la la to la la la 0 la A la la a a A a a a a a p a a 0 p a a Brunswick County Board Of Education Schedule Of Expenditures Of Federal And State Awards For the Year Ended June 30, 2004 (Page 3 of 3)GrantorlPass-through GrantorlProgram or Cluster Title Federal CFDA Number State/Pass-through Entity Identifying Number Expenditures State Grants: Cash Assistance:
N.C. Department Of Public Instruction Direct Program: State Public School Fund Vocational Education-State Months of Employment
-Program Support Funds-$ 44,892,724 013 014 2,178,449 203,354 Total N.C. Department of Public Instruction 47,274,527 Office of the Governor Smart Start More @ Four Teacher on Loan Leadership Pilot Grant North Carolina Partnership for Excellence Behavioral Support Grant Early Literacy Grant for Preschool EC I 473 472 504 406 340 329 449 101,578 94,331 65,866 9,432 18,351 3,648 16,837 Total State cash assistance 47,584,570 Noncash Assistance:
N.C. Department of Public Instruction Textbooks 440 907,630$ 48,492,200 Total State assistance 99 Brunswick County Board Of Education Notes To The Schedule Of Expenditures Of Federal And State Awards (For the Year Ended June 30, 2004 Note 1. General £The accompanying Schedule of Expenditures of Federal and State Awards represents the activity of all .federal and state award programs of Brunswick County Board of Education, North Carolina.
All Federal and State awards received directly or indirectly (flow through) from Federal and State awarding I agencies are included on the schedule.
The information in the schedule is presented in accordance.
with the requirements of OMB Circular A-133 and the State Single Audit Implementation Act.e q Note 2. Basis of Accounting The accompanying schedule has been prepared on the modified accrual basis. Under this method of I accounting, revenues are recognized in the accounting period in which they become measurable and available to pay liabilities of the current period. Expenditures are recognized in the accounting period in which a fund liability is incurred.e Note 3. Relationship to Basic Financial Statements Amounts reported in the accompanying schedule for the U.S. Department of Agriculture are accounted for in the Board's Enterprise Fund. All other Federal and State financial award programs are accounted for in the Board's Governmental Funds.U'100 k i