SCHOOL DISTRICT OF THE

BOROUGH OF ENGLEWOOD CLIFFS

COUNTY OF BERGEN, NEW JERSEY

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED

JUNE 30, 2018

School District of

Englewood Cliffs

ENGLEWOOD CLIFFS PUBLIC SCHOOLS Englewood Cliffs, New Jersey

Comprehensive Annual Financial Report Year Ended June 30, 2018

Comprehensive Annual Financial Report

of the

ENGLEWOOD CLIFFS PUBLIC SCHOOLS Englewood Cliffs, New Jersey

Year Ended June 30, 2018

Prepared by

Sue Anne Mather Board Secretary/Business Administrator

OUTLINE OF CAFR

INTRODUCTORY SECTION

Letter of Transmittal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Organizational Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Roster of Officials.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Consultants and Advisors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

FINANCIAL SECTION

Independent Auditor's Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Required Supplementary Information - Part I Management’s Discussion and Analysis.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

BASIC FINANCIAL STATEMENTS

A. District-wide Financial Statements:

A-1 Statement of Net Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 A-2 Statement of Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

B. Fund Financial Statements:

Governmental Funds: B-1 Balance Sheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 B-2 Statement of Revenues, Expenditures and Changes in Fund Balances. . . . . . . . . . . . . 24 B-3 Reconciliation of the Statement of Revenues, Expenditures, and

Changes in Fund Balances of Governmental Funds to the Statement of Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Proprietary Funds: B-4 Statement of Net Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 B-5 Statement of Revenues, Expenses and Changes in Fund Net Position.. . . . . . . . . . . . . 27 B-6 Statement of Cash Flows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Fiduciary Funds: B-7 Statement of Fiduciary Net Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 B-8 Statement of Changes in Fiduciary Net Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Notes to the Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

OUTLINE OF CAFR

Required Supplementary Information - Part II

C. Budgetary Comparison Schedules:

C-1 Budgetary Comparison Schedule - General Fund.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 C-1a Not Applicable C-2 Budgetary Comparison Schedule - Special Revenue Fund.. . . . . . . . . . . . . . . . . . . . . . 72

Notes to the Required Supplementary Information C-3 Budgetary Comparison Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Required Supplementary Information - Part III

L. Schedules Related to Accounting and Reporting for Pensions (GASB 68)

L-1 Schedule of the District's Proportionate Share of the Net Pension Liability – PERS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

L-2 Schedule of District Contributions – PERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 L-3 Schedule of the District's Proportionate Share of the Net Pension

Liability – TPAF.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 L-4 Notes to Requires Schedules of Supplementary Information - Part III.. . . . . . . . . . . . . 77

Other Supplementary Information

D. School Level Schedules: Not Applicable

E. Special Revenue Fund:

E-1 Combining Schedule of Program Revenues and Expenditures - Budgetary Basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

E-2 Not Applicable E-3 Not Applicable E-4 Not Applicable E-5 Not Applicable

F. Capital Projects Fund:

F-1 Summary Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budgetary Basis.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

F-1a Schedule of Project Revenues, Expenditures, Project Balances and Project Status - Budgetary Basis - Renovations - North Cliff School. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

F-1b Schedule of Project Revenues, Expenditures, Project Balances and Project Status - Budgetary Basis - Renovations - Upper School. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

F-2 Summary Statement of Project Expenditures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

OUTLINE OF CAFR

G. Proprietary Funds:

Enterprise Fund: G-1 Combining Statement of Net Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 G-2 Combining Statement of Revenues, Expenses and Changes in

Fund Net Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 G-3 Combining Statement of Cash Flows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Internal Service Fund: Not Applicable

H. Fiduciary Funds:

H-1 Combining Statement of Fiduciary Net Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 H-2 Combining Statement of Changes in Fiduciary Net Position. . . . . . . . . . . . . . . . . . . . . 87 H-3 Student Activity Agency Fund - Schedule of Receipts and Disbursements. . . . . . . . . . 88 H-4 Payroll Agency Fund - Schedule of Receipts and Disbursements. . . . . . . . . . . . . . . . . 89

I. Long-Term Debt:

I-1 Statement of Serial Bonds.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 I-2 Budgetary Comparison Schedule - Debt Service Fund.. . . . . . . . . . . . . . . . . . . . . . . . . 91

J. Statistical Section (Unaudited)

Financial Trends

Introduction to the Statistical Section. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

J-1 Net Position by Component. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 J-2 Changes in Net Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 J-3 Fund Balances - Governmental Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 J-4 Changes in Fund Balances - Governmental Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 J-5 General Fund - Other Local Revenue by Source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

Revenue Capacity

J-6 Assessed Value and Estimated Actual Value of Taxable Property.. . . . . . . . . . . . . . . . 102 J-7 Direct and Overlapping Property Tax Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 J-8 Principal Property Taxpayers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 J-9 Property Tax Levies and Collections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Debt Capacity

J-10 Ratios of Outstanding Debt by Type.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 J-11 Ratios of General Bonded Debt Outstanding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 J-12 Direct and Overlapping Governmental Activities Debt. . . . . . . . . . . . . . . . . . . . . . . . . 108 J-13 Legal Debt Margin Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

Demographic and Economic Information

J-14 Demographic and Economic Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 J-15 Principal Employers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Operating Information

J-16 Full-time Equivalent District Employees by Function/Program.. . . . . . . . . . . . . . . . . . 112 J-17 Operating Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 J-18 School Building Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 J-19 Schedule of Required Maintenance Expenditures for School Facilities.. . . . . . . . . . . . 115 J-20 Insurance Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

K