BYRON-BERGEN CENTRAL SCHOOL DISTRICT

FINANCIAL STATEMENTS

JUNE 30, 2024

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Table of Contents

June 30, 2024

Independent Auditors’ Report

Management’s Discussion and Analysis

Financial Statements Statement of Net Position Statement of Activities
Balance Sheet – Governmental Funds
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities
Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP) and Actual – General Fund Statements of Fiduciary Net Position and Changes in Fiduciary Net Position – Custodial Fund
Notes to Financial Statements

Required Supplementary Information (Unaudited)
Schedule of the District’s Proportionate Share of the Net Pension Position – New York State Teachers’ Retirement System and Related Notes
Schedule of District Contributions – New York State Teachers’ Retirement System
Schedule of the District’s Proportionate Share of the Net Pension Position – New York State and Local Employees’ Retirement System and Related Notes
Schedule of District Contributions – New York State and Local Employees’ Retirement System
Schedule of Changes in the District’s Total Other Postemployment Benefits (OPEB) Liability and Related Ratios and Notes

Supplementary Information
Schedule of Change from Original to Final Budget and Calculation of Unrestricted Fund Balance Limit – General Fund Schedule of Capital Project Expenditures
Schedule of Expenditures of Federal Awards (SEFA) Notes to SEFA

Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

Independent Auditors' Report on Compliance for Each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance

Schedule of Findings and Questioned Costs

INDEPENDENT AUDITORS’ REPORT

The Board of Education
Byron-Bergen Central School District

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the governmental activities, each major fund, and the remaining fund information of Byron-Bergen Central School District (the District), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the remaining fund information of the District as of June 30, 2024, and the respective changes in financial position and budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America (GAAP).

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.     We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with GAAP, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for one year beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

	Exercise professional judgment and maintain professional skepticism throughout the audit.
	Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.
	Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
	Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

GAAP requires that management’s discussion and analysis and other required supplementary information, as listed in the table of contents, be presented to supplement the financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board (GASB), who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The accompanying supplementary information as listed in the table of contents, including the schedule of expenditures of federal awards required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the accompanying supplementary information is fairly stated in all material respects in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated September 20, 2024 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is solely 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 effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

September 20, 2024

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BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Management’s Discussion and Analysis (unaudited)

June 30, 2024

Introduction

Management’s Discussion and Analysis (MD&A) of Byron-Bergen Central School District (the District) provides an overview of the District’s financial performance and activities for the year ended June 30, 2024. The information contained in the MD&A should be considered in conjunction with the information presented as part of the District’s financial statements that follow. This MD&A, the financial statements, and notes thereto are essential to a full understanding of the District’s financial position and results of operations. The District’s financial statements have the following components: (1) government-wide financial statements, (2) governmental fund financial statements, (3) reconciliations between the government-wide and governmental fund financial statements, (4) fiduciary fund statements; (5) notes to the financial statements, and (6) supplementary information.

The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances in a manner similar to a private-sector business. The statement of net position presents information on all of the District’s assets and deferred outflows of resources less liabilities and deferred inflows of resources with the difference reported as net position. The statement of activities presents information showing how the District’s net position changed during each year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in the statement for some items that will result in cash flows in future periods. The government-wide financial statements present information about the District as a whole. All of the activities of the District are considered to be governmental activities.

Governmental fund financial statements focus on near-term inflows and outflows of resources, as well as on balances of resources available at the end of the year. Such information may be useful in evaluating the District’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide statements, it is useful to compare the information presented for governmental activities in the government-wide financial statements. By doing so, the reader may better understand the long-term impact of the District’s near-term financing decisions. The reconciliation portion of the financial statements facilitates the comparison between governmental funds and governmental activities.

Fiduciary funds are used to report fiduciary activities, which may include pension and other postemployment benefit trust funds, investment trust funds, private-purpose trust funds, and custodial funds. The District maintains a custodial fund for student activity accounts. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the District’s programs.

The notes to the financial statements provide additional information that is essential for a full understanding of the government-wide, governmental fund, and fiduciary fund financial statements.

Supplementary information further explains and supports the financial statements and includes information required by generally accepted accounting principles, the New York State Education Department, and the Federal government.

4

Change Condensed Statement of Net Position	2024	2023	$	%

Current and other assets Capital assets
Total assets

$	26,062,000     $ 50,771,000 76,833,000

26,767,000 $ 44,049,000 70,816,000

(705,000)	(2.6%) 6,722,000                        15.3% 6,017,000                           8.5%

Deferred outflows of resources

Long-term liabilities Other liabilities
Total liabilities

Deferred inflows of resources

Net position
Net investment in capital assets Restricted
Unrestricted

5,620,000

23,719,000 14,898,000 38,617,000

1,475,000

28,889,000 15,802,000
(2,330,000)

7,261,000

26,963,000 10,479,000 37,442,000

1,227,000

27,872,000 12,041,000
(505,000)

(1,641,000)

(3,244,000) 4,419,000 1,175,000

248,000

1,017,000 3,761,000 (1,825,000)

(22.6%)

(12.0%) 42.2%
3.1%

20.2%

3.6% 31.2% 361.4%

Total net position	$	42,361,000     $	39,408,000 $	2,953,000	7.5%

Net position amounted to $43,361,000 and $39,408,000 as of June 30, 2024 and 2023, respectively. The largest portion of the District’s net position reflects its investment in capital assets consisting of land, buildings and improvements, and furniture and equipment, less outstanding debt used to acquire or lease those assets. The District uses capital assets to provide services to students; consequently, these assets are not available for future spending.

The District’s net position includes resources that are subject to external restrictions on how they may be used, which include scholarships donated for the benefit of students and reserves set aside for specific purposes governed by laws. These reserves include the retirement contribution reserve, restricted to fund contributions paid by the District to the New York State Teachers’ Retirement System (TRS) and New York State and Local Employees’ Retirement System (ERS); the capital reserve, which is dedicated for future renovations or equipment as approved by the District’s voters; and an employee benefit accrued liability reserve, which must be used to pay future accumulated vacation and sick time. Other restricted resources include debt service, workers’ compensation, unemployment insurance, liability, repair, tax certiorari, and insurance reserves.

Current and other assets decreased by $705,000 ($1,509,000 or 6.0% increase in 2023) primarily as a result of spending on the District’s capital project, offset by positive operating results, causing a net decrease in cash and investments of $764,000. Capital assets increased $6,722,000 ($1,302,000 or 3.0% increase in 2023) due to capital spending of $9,322,000 in excess of depreciation, amortization, and disposals.

Long-term liabilities decreased by $3,244,000 ($786,000 or 3.0% increase in 2023) as a result of principal repayments of $2,436,000 on bonds and leases outstanding as well as a decrease in the District’s proportionate share of the TRS and ERS net pension liability of $851,000. The increase in other liabilities of $4,419,000 ($8,348,000 or 391.7% increase in 2023) is due to a net increase of $5,093,000 in bond anticipation notes (BANs), offset by a decrease in accounts payable of $687,000 due to timing of capital project payments at year end.

Changes in deferred outflows and deferred inflows of resources include changes in pension activity at the State level which are required to be reflected on the District’s financial statements. Deferred outflows of resources include contributions paid by the District to the State pension systems after the measurement date. Deferred outflows and deferred inflows of resources also reflect variances from actuarial assumptions, actual results of investment earnings compared to projected earnings, and changes of assumptions. Also included in deferred outflows and deferred inflows of resources are differences between expected and actual experience and changes of assumptions related to the District’s total OPEB liability.

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Change Condensed Statement of Activities	2024	2023	$	%

Revenues
Program revenues Charges for services
Operating and capital grants and contributions General revenues
Property taxes and sales tax State aid
Other
Total revenues

Expenses Instruction Support services
General support Pupil transportation Food service
Interest
Total expenses

Change in net position

Net position – beginning Net position – ending

$	 336,000     $ 2,593,000

9,600,000 15,273,000 1,415,000 29,217,000

18,876,000

4,289,000 1,768,000 668,000 663,000 26,264,000

2,953,000

39,408,000
$	42,361,000     $

419,000     $ 2,955,000

9,485,000 15,019,000 915,000 28,793,000

17,426,000

4,457,000 1,712,000 603,000 361,000 24,559,000

4,234,000

35,174,000 39,408,000     $

(83,000) (362,000)

115,000 254,000 500,000 424,000

1,450,000

(168,000) 56,000 65,000
302,000 1,705,000

(1,281,000)

4,234,000 2,953,000

(19.8%) (12.3%)

1.2% 1.7% 54.6% 1.5%

8.3%

(3.8%) 3.3%
10.8% 83.7% 6.9%

(30.3%)

12.0% 7.5%

District revenues increased $424,000 (2.8% or $778,000 increase in 2023). The increase in other revenues of $500,000 (increase of 166.8% or $572,000 in 2023) is due to an additional $512,000 in interest income in 2024 as the District was able to take advantage of higher interest rates. State aid increased $254,000 ($280,000 or 1.9% increase in 2023) primarily from increases in general aid of $410,000, offset by decreases in lottery aid of $110,000. The decrease of $362,000 in operating and capital grants and contributions ($428,000 or 12.7% decrease in 2023) was primarily due to a decrease in COVID-related Education Stabilization Fund grants of $388,000, a decrease in reimbursement for the Smart School Bond Act of $152,000, offset by increases in Federal disaster assistance grant from the U.S. Department of Homeland Security of $75,000 and State reimbursements for food service of $157,000.

Total expenses increased $1,705,000 ($2,048,000 or 9.1% increase in 2023). Payroll increased $261,000 or 2.4% ($13,000 or 0.1% increase in 2023) due to new hires and contractual salary increases exceeding the cost of retirements. ERS and TRS pension expense increased $215,000 and OPEB expense increased $82,000 due to changes in actuarial estimates. Other increases include depreciation and amortization expense, which increased $160,000 due to capital assets additions from ongoing capital projects; interest expense, which increased $302,000 due to BANs required to finance those capital projects; BOCES services, which increased $133,000; and tuition for students attending private schools, which increased $157,000.

Financial Analysis of the District’s Funds

Total fund balances for the governmental funds decreased $5,297,000 from $16,320,000 to $11,023,000 as follows:

	 Total fund revenue increased $252,000 or 0.9% (increase of $711,000 or 2.5% in 2023) and total fund expenditures increased by $6,346,000 or 22.4% (increase of $3,017,000 or 11.9% in 2023). The overall revenue increase is due to increases in interest income and property taxes, offset by decreases in Federal Education Stabilization Fund and Smart Schools Bond Act revenue, as previously mentioned. The overall increase in expenditures is due to an increase in capital outlay by $5,105,000 or 137.5% ($2,942,000 or 382.4% increase in 2023) as the 2021 Capital Improvements Project continued during 2024.
      The general fund experienced an increase in fund balance of $2,631,000, compared to an increase in fund balance of $3,474,000 in 2023. This change was attributable to the State aid and interest income increases previously mentioned.

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	 The deficit fund balance of $7,697,000 in the capital projects fund will be eliminated once the District issues bonds to finance its capital project.

General Fund Budgetary Highlights

The final revenue budget for 2024 was $25,672,000, with actual revenues amounting to $26,313,000, a favorable difference of $641,000 or 2.5%. This difference is primarily attributable to more interest earnings than expected. There were no significant budget changes during the year.

Actual expenditures and carryover encumbrances were less than the final budget by $2,736,000 or 11.8%. The difference is attributable to many factors and many unknown items when they budget is prepared. Significant positive variances between budgeted and actual expenditures occurred in central services, teaching, programs for children with disabilities, and employee benefits.

Capital Assets

Land
Construction in progress Buildings and improvements Machinery and equipment

Accumulated depreciation

Right-to-use leased equipment, net

2024
$	139,000     $ 374,000
73,627,000 4,500,000 78,640,000
(28,172,000) 50,468,000
303,000
$	50,771,000     $

2023 139,000
4,076,000 61,388,000 4,355,000 69,958,000
(26,144,000) 43,814,000
235,000 44,049,000

The increase in capital assets in the current year is a result of current year additions of $9,322,000 offset by depreciation expense, amortization expense, and disposals of $2,600,000.

Debt

At June 30, 2024, the District had $13,848,000 in bonds and leases outstanding, with $2,491,000 due within one year ($16,091,000 of bonds and leases outstanding at June 30, 2023). Outstanding compensated absences payable were $5,258,000, with $836,000 expected to be paid within one year ($5,306,000 outstanding at June 30, 2023).

Additional information on the District’s long-term liabilities can be found in the notes to the financial statements.

Current Financial Issues and Concerns

Federal revenue sources remain elevated due to additional pandemic-related funding but are expected to decrease in 2024-2025. The District continues to plan for years when these additional funds are no longer available. School districts in New York State also remain impacted by the political pressures imposed on elected officials in funding of education. Year to year changes in funding levels and State aid formulas complicate this process.

Contacting the District’s Financial Management

This financial report is designed to provide District residents, taxpayers, parents, students, investors, and creditors with a general overview of the District’s finances, and to show the District’s accountability for the money it receives. For more detailed information, questions may be directed to Lori Prinz, School Business Administrator, Byron-Bergen Central School District, 6917 W. Bergen Road, Bergen, New York 14416-9747.

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BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Statement of Net Position

June 30, 2024

(With comparative totals as of June 30, 2023)	2024	2023

Assets Cash
Due from other governments State and federal aid receivable Investments
Inventory
Capital assets (Note 5)
Accumulated depreciation and amortization Total assets

$	5,361,191     $ 897,198
1,210,147 18,561,005 33,305 79,589,727
(28,819,151) 76,833,422

6,142,169 912,515 1,134,395 18,544,356 34,028 70,714,979
(26,666,135) 70,816,307

Deferred Outflows of Resources Defeasance loss
Deferred outflows of resources related to pensions Deferred outflows of resources related to OPEB
Total deferred outflows of resources

Liabilities

Accounts payable Accrued liabilities
Due to retirement systems Unearned revenue
Bond anticipation notes Long-term liabilities
Due within one year: Leases
Bonds

Compensated absences Due beyond one year:
Leases

Bonds and related premiums Compensated absences
Net pension liability Total OPEB liability Total liabilities

Deferred Inflows of Resources
Deferred inflows of resources related to pensions Deferred inflows of resources related to OPEB
Total deferred inflows of resources

37,002 4,309,050 1,273,732 5,619,784

546,064 158,613 1,014,513 86,448 13,092,802

131,460 2,360,000 836,000

166,763 11,563,703 4,422,000 1,532,664 2,706,495 38,617,525

881,199 593,429 1,474,628

55,503 5,661,447 1,543,926 7,260,876

1,232,995 131,997 1,007,781 106,023 8,000,000

145,843 2,285,000 832,000

110,531 14,051,880 4,474,000 2,383,463 2,680,041 37,441,554

568,384 658,858 1,227,242

Net Position
Net investment in capital assets Restricted
Unrestricted (deficit) Total net position

28,889,111 15,802,131
(2,330,189)
$	42,361,053     $

27,872,737 12,040,749
(505,099) 39,408,387

See accompanying notes.	8

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Statement of Activities

For the year ended June 30, 2024

(With summarized comparative totals for June 30, 2023)

Program Revenues Operating
Charges for	Grants and

Net (Expense) Revenue Capital
Grants and

Functions/Programs	Expenses	Services	Contributions	Contributions	2024	2023

Governmental activities General support Instruction
Pupil transportation Interest expense School food service

$         4,289,175      $ 18,875,978
1,768,280 662,673 667,922
$	26,264,028	$

72,000     $ 176,320
--
87,459 335,779     $

-     $ 1,787,781
--
626,059 2,413,840     $

-	$ 179,306
---
179,306

(4,217,175) $ (16,732,571)
(1,768,280) (662,673)
45,596 (23,335,103)

(4,384,982) (14,777,384) (1,711,979) (361,110)
51,591 (21,183,864)

General revenues

Real property and sales taxes Miscellaneous
State aid

Total general revenues

Change in net position

9,600,285 1,414,746 15,272,738 26,287,769

2,952,666

9,485,067 914,956 15,018,594 25,418,617

4,234,753

Net position - beginning Net position - ending

39,408,387
$	42,361,053     $

35,173,634 39,408,387

See accompanying notes.	9

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Balance Sheet - Governmental Funds

June 30, 2024

(With summarized comparative totals as of June 30, 2023)

Miscellaneous

Capital	Special	Debt	Food	Special	Total Governmental Funds

Assets Cash
Due from other governments State and federal aid receivable Due from other funds, net Investments
Inventory

Total assets

Liabilities
Accounts payable Accrued liabilities
Due to retirement systems Due to other funds, net Unearned revenue
Bond anticipation notes Total liabilities

General

$         2,940,914 897,198 318,202 659,037 13,032,361
-$	17,847,712

$            452,185 107,986 1,009,905
-36,448 -
1,606,524

Projects

$	711,148     $ -
179,306 -
4,770,989 -
$	5,661,443     $

$	50,460      $ -
-35,416 -
13,092,802 13,178,678

Aid

84,998     $ -
674,313 ---
759,311     $

-      $ -
-709,311 50,000 -759,311

Service

996,687     $ -
-35,416 -
-1,032,103     $

-	$ -
-----

Service

618,722 -
38,326 50,274 -33,305
740,627

43,419 12,827 4,608 -
--
60,854

Revenue

$	8,722     $ -
--
757,655 -
$	766,377     $

$	-     $ -
-----

2024

5,361,191     $ 897,198
1,210,147 744,727 18,561,005 33,305
26,807,573     $

546,064     $ 120,813
1,014,513 744,727 86,448 13,092,802 15,605,367

2023

6,142,169 912,515 1,134,395 1,221,456 18,544,356 34,028 27,988,919

1,232,995 100,597 1,007,781 1,221,456 106,023 8,000,000 11,668,852

Deferred Inflows of Resources Unavailable revenue

Fund Balances Nonspendable Restricted Committed Assigned Unassigned (deficit)
Total fund balances (deficit)

-

-14,003,651 519,584 455,178 1,262,775 16,241,188

179,306

----
(7,696,541) (7,696,541)

-	-

-	--               1,032,103 -	--	--	--               1,032,103

-

33,305 --
646,468 -679,773

-

400,000 366,377 -
--
766,377

179,306

433,305 15,402,131 519,584 1,101,646
(6,433,766) 11,022,900

-

434,028 12,002,393 494,264 1,250,201 2,139,181 16,320,067

Total liabilities, deferred inflows

of resources, and fund balances (deficit)	$	17,847,712     $	5,661,443     $	759,311     $	1,032,103     $	740,627     $	766,377     $	26,807,573     $	27,988,919

See accompanying notes.	10

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position

June 30, 2024

Total fund balances - governmental funds	$	11,022,900

Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds.

Certain revenues not collected within ninety days after year end are not considered available until received in the governmental funds but are recognized when earned in the government-wide statements.

Defeasance losses associated with bond refundings are recognized as deferred outflows of resources in the government-wide statements.

50,770,576

179,306

37,002

The District's proportionate share of the net pension position as well as pension-related deferred outflows and deferred inflows of resources are recognized on the government-wide statements and include:
Deferred outflows of resources related to pensions Net pension liability
Deferred inflows of resources related to pensions

The District's total OPEB liability as well as OPEB-related deferred outflows and deferred inflows of resources are recognized on the government-wide statements and include:
Deferred outflows of resources related to OPEB Total OPEB liability
Deferred inflows of resources related to OPEB

4,309,050 (1,532,664)
(881,199)

1,273,732 (2,706,495)
(593,429)

1,895,187

(2,026,192)

Certain liabilities are not due and payable currently and therefore are not reported as liabilities of the governmental funds. These liabilities are:
Accrued interest Leases
Bonds and related premiums Compensated absences

(37,800) (298,223) (13,923,703)
(5,258,000)	(19,517,726)

Net position - governmental activities	$	42,361,053

See accompanying notes.	11

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds

For the year ended June 30, 2024

(With summarized comparative totals for June 30, 2023)

Revenues
Real property taxes Real property tax items Nonproperty taxes Charges for services
Use of money and property
Sale of property and compensation for loss Miscellaneous
State sources Federal sources Sales
Total revenues

General

$	7,918,165     $ 1,596,072
86,048 154,628 799,512 45,837 327,961 15,272,738 111,897
-26,312,858

Capital Projects

-      $ -
--
255,675 -----
255,675

Special Aid

-      $ -
-----
665,725 1,010,159 -1,675,884

Debt Service

$

43,698

43,698

Food Service

5,100 242,070 383,989 82,359 713,518

Miscellaneous Special Revenue

$	-     $ -
--
38,573 -13,100 -
--
51,673

Total Governmental Funds 2024                           2023

7,918,165     $           7,812,824 1,596,072                 1,594,975 86,048                       77,268 154,628                     167,207 1,137,458                     642,062 45,837                       98,963 346,161                     269,725 16,180,533               16,128,325 1,506,045                 1,845,585 82,359                     164,087 29,053,306               28,801,021

Expenditures General support Instruction
Pupil transportation Employee benefits Debt service
Principal Interest
Cost of sales Capital outlay
Total expenditures

Excess revenues (expenditures)

Other financing sources (uses) Lease proceeds
BANs redeemed from appropriations Operating transfers, net
Total other financing sources (uses)

Net change in fund balances

2,976,615 11,542,759 1,664,586 4,081,233

150,904 3,905
--
20,420,002

5,892,856

--
(3,262,044) (3,262,044)

2,630,812

----

---
8,721,613 8,721,613

(8,465,938)

192,753 115,000 100,000 407,753

(8,058,185)

-1,382,612 16,569 276,703

----
1,675,884

-

----

-

2,400,000 762,044

3,162,044 (3,118,346)

3,162,044 3,162,044

43,698

136,010

42,370

391,973 95,312 665,665

47,853

47,853

-                  3,112,625 13,018                12,938,389 -                  1,681,155
-	4,400,306

-	2,550,904 -                     765,949 -                     391,973 -	8,816,925
13,018	34,658,226

38,655	(5,604,920)

-	192,753 -	115,000 -                                   --	307,753

38,655	(5,297,167)

2,855,518 12,516,496 1,284,383 4,232,184

2,913,478 459,587 338,842 3,711,626 28,312,114

488,907

83,156 462,258 -545,414

1,034,321

Fund balances - beginning

Fund balances (deficit) - ending

See accompanying notes.

13,610,376
$	16,241,188     $

361,644 (7,696,541) $

-	988,405
-     $	1,032,103     $

631,920 679,773     $

727,722 766,377     $

16,320,067 11,022,900     $

15,285,746 16,320,067

12

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities

For the year ended June 30, 2024

Total net change in fund balances - governmental funds	$	(5,297,167)

Amounts reported for governmental activities in the statement of activities are different because:

Capital outlays are reported in governmental funds as expenditures. In the statement of activities, the cost of the assets is allocated over estimated useful lives as depreciation and
amortization expense. This is the amount by which capital outlays exceed depreciation

and amortization expense and disposals.	6,721,732

Pension expense is recognized when paid on the fund statement of revenues, expenditures, and changes in fund balances and actuarially determined on the statement of activities. These differences are:
2024 TRS and ERS contributions 2024 ERS accrued contribution 2023 ERS accrued contribution
2024 TRS net pension expense 2024 ERS net pension expense

1,052,716 105,449
(110,859) (1,379,447)
(482,272)	(814,413)

OPEB expense is recognized when paid on the fund statement of revenues, expenditures, and changes in fund balances and actuarially determined on the statement of activities.

Leases are recorded as other financing sources in the governmental funds but increase long-term liabilities in the statement of net position.

Revenue is recorded to the extent received within 90 days of year end for the governmental funds, but on the statement of activities, revenue is recognized when earned.

Payments of long-term liabilities are reported as expenditures in governmental funds and as a reduction of debt in the statement of net position.

(231,219)

(192,753)

179,306

2,435,904

In the statement of activities, certain operating expenses are measured by the amounts earned during the year. In the governmental funds these expenditures are reported when paid.
The differences are: Interest
Amortization of bond premiums and defeasance loss Compensated absences

(6,400) 109,676
48,000	151,276

Change in net position - governmental activities	$	2,952,666

See accompanying notes.	13

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Statement of Revenues, Expenditures, and Changes in

Fund Balance Budget (Non-GAAP) and Actual - General Fund

For the year ended June 30, 2024

Actual Budgeted Amounts	(Budgetary

Variance with Final Budget

Original	Final	Basis)	Encumbrances	Over/(Under) Revenues

Local sources
Real property taxes Real property tax items Nonproperty taxes Charges for services
Use of money and property
Sale of property and compensation for loss Miscellaneous
State sources Federal sources
Total revenues

$	7,840,000     $ 1,636,401
50,000 35,722 182,000 30,000 164,500 15,503,779 230,000 25,672,402

7,840,000 1,636,401 50,000 35,722 182,000 30,000 164,500 15,503,779 230,000 25,672,402

$ 7,918,165 1,596,072 86,048 154,628 799,512 45,837 327,961 15,272,738 111,897 26,312,858

$	 78,165 (40,329)
36,048 118,906 617,512 15,837 163,461
(231,041) (118,103) 640,456

Expenditures General support
Board of education Central administration Finance
Staff

Central services Special items
Instruction

Instruction, administration, and improvement Teaching - regular school
Programs for children with handicapping conditions Occupational education
Teaching - special schools Instructional media
Pupil services Pupil transportation Employee benefits Debt service
Principal Interest
Total expenditures

Excess revenues (expenditures)

32,135 253,932 388,366 143,612 2,120,126 460,542

754,528 6,668,215 3,093,868 762,875 35,000 811,286 1,232,925 1,520,866 4,838,335

--
23,116,611

2,555,791

44,235 256,042 338,589 145,917 2,329,895 457,542

755,428 6,543,552 2,989,300 779,650 56,808 726,941 1,245,495 1,873,226 4,648,659

150,904 3,905 23,346,088

2,326,314

38,728 218,289 303,118 136,714 1,848,174 431,592

592,446 6,085,690 2,385,155 742,200 53,528 626,126 1,057,614 1,664,586 4,081,233

150,904 3,905 20,420,002

5,892,856

735 2,037 -
-176,071 -

-11,106 204
--
25 ---

--
190,178

(190,178)

(4,772) (35,716) (35,471) (9,203) (305,650) (25,950)

(162,982) (446,756) (603,941) (37,450) (3,280) (100,790) (187,881) (208,640) (567,426)

--
(2,735,908)

3,376,364

Other financing sources (uses)

Operating transfers out	(3,208,100)	(3,262,044)	(3,262,044)	-

Appropriated fund balance, reserves, and carryover encumbrances
Total other financing sources (uses) Excess revenues (expenditures)
and other financing sources (uses)

652,309 (2,555,791)

$	-     $

935,730	-(2,326,314)        (3,262,044)

-     $ 2,630,812     $

(935,730) (935,730)

(190,178) $	2,440,634

See accompanying notes.	14

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Statement of Fiduciary Net Position - Custodial Fund

June 30, 2024

Assets Cash

Net Position
Extraclassroom activity balances

$	126,696

$	126,696

* * *

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Statement of Changes in Fiduciary Net Position - Custodial Fund

For the year ended June 30, 2024

Additions

Student activity receipts	$	120,380

Deductions

Student activity disbursements

Change in net position

100,555

19,825

Net position - beginning Net position - ending

106,871 $	126,696

See accompanying notes.	15

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Notes to Financial Statements

1. Summary of Significant Accounting Policies

Reporting Entity

Byron-Bergen Central School District (the District) is governed by Education and other laws of the State of New York (the State). The District’s Board of Education has responsibility and control over all activities related to public school education within the District. The District’s Superintendent is the chief executive officer and the President of the Board serves as the chief fiscal officer. The Board members are elected by the public and have decision-making authority, the power to designate management, the ability to influence operations, and the primary accountability for fiscal matters.

The District provides education and support services such as administration, transportation, and plant maintenance. The District receives funding from local, state, and federal sources and must comply with requirements of these funding sources. However, the District is not included in any other governmental reporting entity as defined by accounting principles generally accepted in the United States of America (GAAP), nor does it contain any component units.

The financial statements of the District have been prepared in conformity with GAAP as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the District's accounting policies are described below.

Joint Venture

The District is one of 22 participating school districts in the Genesee Valley Board of Cooperative Educational Services (BOCES). Formed under §1950 of Education Law, a BOCES is a voluntary cooperative association of school districts in a geographic area that shares planning, services, and programs, and also provides educational and support activities. There is no authority or process by which the District can terminate its status as a component of BOCES.

The component school district boards elect the members of the BOCES governing body. There are no equity interests and no single participant controls the financial or operating policies. BOCES may also contract with other municipalities on a cooperative basis under State General Municipal Law.

A BOCES’ budget is comprised of separate spending plans for administrative, program, and capital costs. Each component school district shares in administrative and capital costs determined by its enrollment. Participating districts are charged a service fee for programs in which students participate, and for other shared contracted administrative services. Participating districts may issue debt on behalf of BOCES; there is currently no such debt issued by the District.

During the year ended June 30, 2024, the District was billed $3,533,000 for BOCES administrative and program costs and recognized revenue of $264,000 as a refund from prior year expenditures paid to BOCES and $72,000 in short-term classroom rental income. Audited financial statements are available from BOCES’ administrative offices.

Risk Management

The District participates in the Genesee Area Healthcare Plan and the Genesee County Self-Insurance Workers’ Compensation Plan, which are public entity risk pools. These plans are designed to provide health insurance and workers’ compensation coverage for participating entities. These activities are further discussed in Note 10.

16

Basis of Presentation

Government-Wide Statements: The statement of net position and the statement of activities display financial activities of the overall District, except for fiduciary activities. Eliminations have been made to minimize double counting of internal activities. These statements are required to distinguish between governmental and business-type activities of the District. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. The District does not maintain any business-type activities.

The statement of activities presents a comparison between direct expenses and program revenues for each function of the District’s governmental activities:

 Direct expenses are those that are specifically associated with a program or are clearly identifiable to a particular function. Indirect expenses relate to the administration and support of the District’s programs, including personnel, overall administration, and finance. Employee benefits are allocated to functional expenses as a percentage of related payroll expense.
 Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational requirements of a particular program, and (c) capital grants and contributions limited to the purchase or construction of specific capital assets, if any. Revenues that are not classified as program revenues, including all taxes and state aid, are presented as general revenues.

Fund Financial Statements: The fund financial statements provide information about the District’s funds. Separate statements for each fund category – governmental and fiduciary – are presented. The emphasis of the fund financial statements is on major governmental funds, each displayed in a separate column.

The District reports the following major funds:

 General fund. This is the District’s primary operating fund. It accounts for all financial resources except those required to be accounted for in another fund.
 Capital projects fund. This fund is used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.

The District also elected to display the following as major funds:

 Special aid fund. This fund is used to account for the proceeds of specific revenue sources – other than expendable trusts or major capital projects – such as federal, state, and local grants and awards that are restricted or committed to expenditure for specific purposes. Either governments or other third parties providing the grant funds impose these restrictions.
 Debt service fund. This fund is used to account for resources that are restricted, committed, or assigned to expenditure for principal and interest.
 Food service fund. This fund is a special revenue fund whose specific revenue sources, including free and reduced meal subsidies received from state and federal programs, are assigned to the operation of the District's breakfast and lunch programs.
 Miscellaneous special revenue fund. This fund is used to account for resources that are restricted to student scholarships. Donations are made by third parties and District personnel manage the funds and assist with determination of scholarship recipients.

Fiduciary fund reporting focuses on net position and changes in net position. Fiduciary funds are used to report fiduciary activities, which may include pension and other postemployment benefit trust funds, investment trust funds, private-purpose trust funds, and custodial funds. The District maintains a custodial fund for its student activity accounts.

The financial statements include certain prior year summarized comparative information in total but not by separate governmental activities and major funds. Such information does not include sufficient detail to constitute a presentation in conformity with GAAP. Accordingly, such information should be read in conjunction with the District’s financial statements for the year ended June 30, 2023, from which the summarized information was derived.

17

Basis of Accounting and Measurement Focus

The government-wide 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. Nonexchange transactions, in which the District receives value directly without giving equal value in exchange, include property taxes, grants, and donations. Revenue from property taxes is recognized in the fiscal year for which taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

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 District considers all revenues reported in the governmental funds to be available if they are collected within ninety days after year end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset purchases are reported as expenditures in governmental funds. Proceeds of long-term liabilities are reported as other financing sources.

Under the terms of grant agreements, revenues are recognized to the extent of program expenditures. Amounts received in advance of the expenditures are considered unearned and reported as revenue when the expense is incurred.

Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Property Taxes

The District levies real property taxes no later than September 1. For the year ended June 30, 2024, the tax lien was issued on July 31, 2023 for collection from September 1, 2023 through October 30, 2023. Thereafter, uncollected amounts became the responsibility of Monroe, Orleans, and Genesee Counties. Such amounts were submitted to the District by April 1st of the following year as required by law.

The District is subject to tax abatements granted by the Genesee County Industrial Development Agency (GCIDA), a public benefit corporation created by an act of the New York State Legislature to promote and assist private sector industrial and business development. Through GCIDA, companies promise to expand or maintain facilities or employment within the communities served by the District, to establish a new business, or to relocate an existing business to the communities. Economic development agreements entered into by GCIDA can include the abatement of county, town, and school district taxes, in addition to other assistance. In the case of the District, these abatements have resulted in reductions of property taxes, which the District administers as temporary reductions in the assessed value of the properties involved. The abatement agreements stipulate a percentage reduction of property taxes, which can be as much as 100%. For the year ended June 30, 2024, the District’s taxes were abated $71,000 under these agreements.

Budget Process, Amendments, and Encumbrances

District administration prepares a proposed budget for the general fund requiring approval by the Board. A public hearing is held upon completion and filing of the tentative budget. Subsequently, the budget is adopted by the Board. The proposed budget is then presented to voters of the District. The budget for the fiscal year beginning July 1, 2023 was approved by a majority of the voters in a general election held on May 16, 2023.

Annual appropriations are adopted and employed for control of the general fund. These budgets are adopted on a GAAP basis under the modified accrual basis of accounting. Appropriations established by the adoption of the budget constitute a limitation on expenditures (and encumbrances) which may be incurred. Appropriations authorized for the current year may be increased by the planned use of specific restricted, committed, and assigned fund balances and subsequent budget amendments approved by the Board as a result of new revenue sources not included in the original budget.
18

Major capital expenditures are subject to individual project budgets based on the cost of the project and external financing rather than annual appropriations. For the capital projects fund, these budgets do not lapse at year end and are carried over to the completion of the project.

Encumbrance accounting is used to assure budgetary control over commitments related to unperformed (executory) contracts for goods or services outstanding at the end of each year. Encumbrances are budgetary expenditures in the year committed and again in the subsequent period when the expenditure is paid. All budget appropriations that are unencumbered lapse at the end of the fiscal year. Encumbrances outstanding at year end are presented for GAAP-related purposes as committed or assigned fund balances and do not constitute expenditures or liabilities. At July 1, encumbrances carried forward from the prior year are reestablished through budget appropriations.

Cash and Investments

Cash and investment management is governed by State laws and as established in the District’s written policies. Cash must be deposited in FDIC-insured commercial banks or trust companies located within the State. The District’s policies permit the Treasurer to use demand and time accounts, certificates of deposit, obligations of the United States Treasury and its Agencies, and obligations of the State or its localities, including those held under repurchase agreements or in external investment pools.

Custodial credit risk is the risk that in the event of a bank failure the District’s deposits may not be returned to it. Collateral is required for demand and time deposits and certificates of deposit not covered by Federal Deposit Insurance. Obligations that may be pledged as collateral are obligations of the United States and its agencies and obligations of the State and its municipalities and school districts. At June 30, 2024, the District’s bank deposits were fully collateralized by FDIC coverage and securities held by the pledging institution’s agent or an undivided security interest in pooled assets in the District’s name.

Inventory

Inventory consists of food and similar goods related to food service operations and is recorded at the lower of first-in, first-out cost or net realizable value. Donated commodities are stated at values which approximate market.

Capital Assets

Capital assets are reported at actual or estimated historical cost based on appraisals. Financed right-to-use lease assets are recorded at the present value of the initial lease liability. Contributed assets are recorded at fair value at the time received. Depreciation and amortization are provided in the government-wide statements over estimated useful lives using the straight-line method. Maintenance and repairs are expensed as incurred; significant improvements are capitalized.

Capitalization thresholds for determining which assets are added to capital accounts and the estimated useful lives of capital assets are:

Capitalization Policy

Estimated Useful Life in Years

Buildings and improvements Machinery and equipment

Bond Defeasances

$     50,000                          15-50 $       5,000                            5-25

In the government-wide financial statements, gains or losses on bond refundings represent the difference between the price required to repay previously issued debt and the net carrying amount of the retired debt, and are recorded as either a deferred outflow or deferred inflow of resources. In subsequent years, these amounts are amortized on a straight-line basis as a component of interest expense over the shorter of the life of the old or new debt.

Deferred Inflows of Resources

In the governmental funds, certain Smart Schools Bond Act payments not received within ninety days of year end are considered unavailable and recognized as deferred inflows of resources.

19

Bond Premiums

Premiums received upon the issuance of debt are included as other financing sources in the governmental funds statements when issued. In the government-wide statements, premiums are recognized with the related debt issue and amortized on a straight-line basis as a component of interest expense over the life of the related obligation.

Pensions

The District participates in the New York State Teachers’ Retirement System (TRS) and the New York State and Local Employees’ Retirement System (ERS) (the Systems) as mandated by State law. The Systems recognize benefit payments when due and payable in accordance with benefit terms; investment assets are reported at fair value. On the government-wide statements, the District recognizes its proportionate share of net pension position, deferred outflows and deferred inflows of resources, pension expense (revenue), and information about and changes in the fiduciary net position on the same basis as reported by the respective defined benefit pension plans.

Other Postemployment Benefits (OPEB)

On the government-wide statements, the total OPEB liability, deferred outflows and deferred inflows of resources, and OPEB expense for the District’s defined benefit healthcare plan (Note 9) have been measured on the same basis as reported by the plan. Benefit payments are due and payable in accordance with benefit terms.

Compensated Absences

The liability for compensated absences reported in the government-wide financial statements consists of unpaid accumulated sick and vacation time. The liability has been calculated using the vesting method, in which leave amounts for both employees currently eligible to receive payments and those expected to become eligible to receive such payments are included. Sick pay is accrued on the basis of negotiated contracts with administrative and employee groups which provide for the payment of accumulated sick time at retirement or the option of converting this vested amount to provide for the payment of health insurance until exhausted.

The government-wide financial statements reflect the entire liability, while in the governmental funds financial statements, only the amount of matured liabilities is accrued based on expendable available financial resources.

Equity Classifications

Government-Wide Statements

The District is required to classify net position into three categories:

 Net investment in capital assets – consists of capital assets, net of accumulated depreciation and amortization, reduced by outstanding balances of any related debt obligations that are attributable to the acquisition, construction, or improvement of those assets.
 Restricted – consists of restricted assets reduced by related liabilities and deferred inflows of resources. Restrictions are imposed by external organizations such as federal or state laws or required by the terms of the District’s bonds.
 Unrestricted – the net amount of assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position and therefore are available for general use by the District.

Governmental Fund Statements

The District considers unrestricted resources to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, unless the use of the restricted amount was appropriated in the current year’s budget. Within unrestricted fund balance, the District considers committed, assigned, then unassigned resources to have been spent when an expenditure is incurred for which amounts in any of those fund balance classifications could be used.

20

Fund balance is categorized as follows:

Nonspendable:
Inventory	$ Scholarships - principal portion
Restricted: Debt service Liability
Unemployment insurance Capital
Employee benefit accrued liability Tax certiorari
Insurance
Retirement contribution Workers’ compensation Repair
Scholarships Committed:
Employee benefits Assigned:
Designated for subsequent year Encumbrances
Food service Unassigned
$

33,305 400,000

1,032,103 751,971 265,656 4,309,917 2,409,308 25,000 846,167 3,847,749 547,883 1,000,000 366,377

519,584

265,000 190,178 646,468
(6,433,766) 11,022,900

Nonspendable fund balances represent resources that cannot be spent as they are not expected to be converted to cash.

Restricted fund balances generally result from reserves created by the State of New York Legislature and included in General Municipal Law, State Education Law, or Real Property Tax Law as authorized for use by the Board of Education. Certain reserves may require voter approval for their establishment and/or use. Earnings on invested resources are required to be added to the various reserves.

Fund balance restrictions include scholarships donated to the District by third parties for the benefit of students and the following reserves:

 Debt service – is used to account for proceeds from the sale of property that was financed by obligations still outstanding, interest and earnings on outstanding obligations (including bond and BAN premiums), and remaining bond proceeds not needed for their original purpose as required under §165 of Finance Law. This reserve must be used to pay the debt service obligations for which the original money was generated.
 Liability – is used to pay for liability claims incurred. Annual funding of this reserve may not exceed 3% of the budget.
 Unemployment insurance – is used to pay the cost of reimbursement to the State Unemployment Insurance Fund for payments made to claimants as the District has elected to use the benefit reimbursement method.
 Capital – is used to accumulate funds to finance all or a portion of future capital projects for which bonds may be issued. Voter authorization is required for both the establishment of the reserve and payments from the reserve. In 2019 and 2023, voters approved the establishment of three reserves, with funding not to exceed $1,000,000, $2,000,000, and $4,000,000 plus interest, respectively, over a 10-year period. The 2019 reserve has been fully funded. To date, to the two 2023 reserves have been funded $3,100,000. Amounts remaining and available for use in the general fund at June 30, 2023 total $4,309,917.
 Employee benefit accrued liability – is used to account for the payment of accumulated vacation and sick time due upon termination of an employee’s services.     It is established by a majority vote of the Board and is funded by budgetary appropriations and such other reserves and funds that may be legally appropriated.
 Tax certiorari - is used to pay for judgments and claims in tax certiorari proceedings in accordance with Real Property Tax Law. Current year refunds should be paid through the budget. It is established by a majority vote of the Board and is funded by budgetary appropriations and other legally appropriate sources.
 Insurance – is used to pay liability, casualty, and other types of losses except losses incurred for which insurance may be purchased. The amount is funded through budgetary appropriations which may not exceed 5% of the budget.

21

 Retirement contribution – is used to finance retirement contributions payable to TRS and ERS. For TRS, funding is limited to 2% annually of eligible salaries with a maximum reserve of 10% of eligible salaries. At June 30, 2024, the retirement contribution reserve includes $833,839 for TRS and $3,013,910 for ERS.
 Workers’ compensation – is used to pay for compensation benefits and other expenses authorized by Article 2 of the Workers’ Compensation Law, and for payment of expenses of administering this program.
 Repair – is used to accumulate funds to finance costs of major repairs to capital improvements or equipment, and requires a public hearing for its use.

Committed fund balances are authorized by the Board of Education as recommended by the District’s management prior to the end of the fiscal year, although funding of the commitment may be established subsequent to year end.

Assigned fund balances include the planned use of existing fund balance to offset the subsequent year’s tax levy. Additionally, the Board of Education has given the District’s management the authority to assign fund balances for specific purposes that are neither restricted nor committed.

Interfund Balances

The operations of the District include transactions between funds including resources for cash flow purposes. These interfund receivables and payables are repaid within one year. Permanent transfers of funds provide financing or other services.

In the government-wide statements, the amounts reported on the statement of net position for interfund receivables and payables represent amounts due between different fund types (governmental activities and fiduciary funds). Eliminations have been made for all interfund receivables and payables between the funds, with the exception of those due from or to fiduciary funds.

Interfund receivables and payables are netted on the accompanying governmental funds balance sheet as the right of legal offset exists. It is the District’s practice to settle these amounts at the net balances due between funds.

2. Stewardship and Compliance

The capital projects fund balance reflects a deficit of $7,696,541 as of June 30, 2024, which will be funded when bond anticipation notes are converted to permanent financing.

The District’s unassigned fund balance in the general fund exceeds 4% of the 2025 budget, which is a limitation imposed by New York State Real Property Tax Law §1318.

3. Investments

At June 30, 2024, the District’s investments were held in an external investment pool comprised of U.S. Treasury Securities, repurchase agreements, and deposits held by custodian banks. Investments are recognized at fair value using quoted prices for similar assets and liabilities in active markets. The external investment pool issues its own financial statements which are included in its annual report available at www.newyorkclass.org.

Credit risk is the risk of loss attributed to the magnitude of the District’s investment in a single issuer. The District’s external investment pool is rated AAAm by S&P Global Ratings.

Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In order to limit its exposure, the District’s external investment pool limits the maturity date of its investments. The dollar weighted average days to maturity (WAM) at June 30, 2024 is 38 days. Next interest rate reset dates for floating rate securities are used in the calculation of the WAM. The weighted average life of the pool is 72 days.

22

4. Interfund Transactions - Fund Financial Statements

Transfers

Fund	Receivable	Payable	In	Out

General
Capital projects Special aid Debt service Food service

$	709,311     $ -
-35,416 50,274
$	795,001     $

50,274	$ 35,416
709,311 --
795,001	$

-     $ 100,000
-3,162,044 -
3,262,044     $

3,262,044 ----
3,262,044

The general fund provides cash flow to the various other funds; these amounts will be repaid when funds are received from the State after final expenditure reports have been submitted and approved or when permanent financing is obtained. The general fund made permanent transfers to the capital projects fund for a capital project and to the debt service fund for principal and interest payments.

5. Capital Assets

July 1, 2023

Retirements/
Increases	Reclassifications	June 30, 2024

Non-depreciable and non-amortizable capital assets: Land
Construction in progress
Total non-depreciable and non-amortizable assets

$           139,383        $ 4,075,902 4,215,285

-233,711 233,711

$                          -         $ (3,936,108) (3,936,108)

139,383 373,505 512,888

Depreciable capital assets: Buildings and improvements Machinery and equipment
Total depreciable assets

Accumulated depreciation: Buildings and improvements Machinery and equipment
Total accumulated depreciation

Total depreciable assets, net

Right-to-use lease assets: Equipment
Accumulated amortization Total right-to-use assets, net

61,388,123 4,354,882 65,743,005

(23,425,189) (2,719,156) (26,144,345)

39,598,660

756,689 (521,790) 234,899

8,302,646 592,524 8,895,170

(2,083,744) (375,020) (2,458,764)

6,436,406

192,753 (125,220)
67,533

3,936,108 (446,886)
3,489,222

-430,968 430,968

3,920,190

---

73,626,877 4,500,520 78,127,397

(25,508,933) (2,663,208) (28,172,141)

49,955,256

949,442 (647,010) 302,432

$     44,048,844	$	6,737,650	$	(15,918)	$	50,770,576

Depreciation and amortization expense have been allocated to the following functions: general support $268,084, instruction $2,089,561, pupil transportation $197,057, and food service $29,282.

At June 30, 2024, net investment in capital assets consists of the following:

Capital assets, net of accumulated depreciation and amortization Defeasance loss
Lease liability
BANs, bonds, and related premiums, net of unspent proceeds

$     50,770,576 37,002
(298,223) (21,620,244)

$     28,889,111

23

6. Short-Term Debt

Aggregate bond anticipation notes (BANs) outstanding at June 30, 2024 amounted to $13,092,802 ($8,000,000 as of June 30, 2023) and carried interest at 4.10% (4.75% as of June 30, 2023). In 2024, BANs of $5,207,802 were issued, $7,885,000 were rolled over from previous BANs, and $115,000 were redeemed from appropriations.

7. Long-Term Liabilities

July 1, 2023

June 30, Increases	Decreases	2024

Amount Due in One Year

Leases Bonds
Bond premiums Compensated absences

$          256,374 15,835,000 501,880 5,306,000
$ 21,899,254

$	192,753 ---
$	192,753

$        150,904 2,285,000 128,177 48,000
$     2,612,081

$         298,223 13,550,000 373,703 5,258,000
$ 19,479,926

$        131,460 2,360,000
-836,000
$ 3,327,460

Existing Obligations

Description
Equipment lease – 2020 Equipment lease – 2021 Equipment lease – 2022 Equipment lease – 2022 Equipment lease – 2023 Equipment lease – 2024 Serial bonds – 2020 Refunding bonds – 2020

Maturity October 2024 October 2025 November 2024 November 2026 March 2026 May 2027 June 2035 June 2026

Rate	Balance 1.78%       $                 4,464 0.93%                       12,825 0.34%                       16,065 0.34%                       27,473 3.00%                       49,705 3.00%                     187,691
2%                  11,585,000 1%-4%                 1,965,000 $       13,848,223

Debt Service Requirements

Bonds	Leases

Years ending June 30,	Principal	Interest	Principal	Interest

2025 2026 2027 2028 2029
2030-2034 2035

$        2,360,000 1,520,000 985,000 1,005,000 1,035,000 5,580,000 1,065,000
$	13,550,000

$           310,300          $ 234,900 193,400 173,700 153,600 446,200
21,300
$	1,533,400	$

131,460       $              6,107 100,751                        3,690 66,012                        1,179 -                                -
-	--	--	-
298,223	$	10,976

24

8. Pension Plans

Plan Descriptions

The District participates in the following cost-sharing, multiple employer, public employee retirement systems:

 TRS is administered by the New York State Teachers’ Retirement Board and provides benefits to plan members and beneficiaries as authorized by the Education Law and the Retirement and Social Security Law of the State of New York. TRS issues a publicly available financial report that contains financial statements and required supplementary information. The report may be obtained from the New York State Teachers’ Retirement System at www.nystrs.org.
 ERS provides retirement benefits as well as death and disability benefits. New York State Retirement and Social Security Law governs obligations of employers and employees to contribute and provide benefits to employees. ERS issues a publicly available financial report that includes financial statements and required supplementary information. This report may be obtained from the New York State and Local Retirement System at www.osc.state.ny.us/retire.

Benefits: The Systems provide retirement, disability, and death benefits for eligible members, including automatic cost of living adjustments. In general, retirement benefits are determined based on an employee’s individual circumstances using a pension factor, an age factor, and final average salary. The benefits vary depending on the individual’s employment tier. Pension factors are determined based on tier and an employee’s years of service, among other factors.

Contribution Requirements: No employee contribution is required for those hired prior to July 1976. The Systems require employee contributions of 3% of salary for the first 10 years of service for those employees who joined the Systems from July 1976 through December 2009. Participants hired on or after January 1, 2010 through March 31, 2012 are required to contribute 3.5% (TRS) or 3% (ERS) of compensation throughout their active membership in the Systems. Participants hired on or after April 1, 2012 are required to contribute a percentage ranging from 3% to 6% each year, based on their level of compensation. Pursuant to Article 11 of Education Law, an actuarially determined contribution rate is established annually for TRS by the New York State Teachers’ Retirement Board. This rate was 9.76% for 2024. For ERS, the Comptroller annually certifies the rates used, expressed as a percentage of the wages of participants, to compute the contributions required to be made by the District to the pension accumulation fund. For 2024, these rates ranged from 9.6% - 19.9%.

The amount outstanding and payable to TRS for the year ended June 30, 2024 was $782,642. A liability to ERS of $105,449 is accrued based on the District’s legally required contribution for employee services rendered from April 1 through June 30, 2024.

Net Pension Position, Pension Expense, and Deferred Outflows and Deferred Inflows of Resources

At June 30, 2024, the District reported a liability of $484,350 for its proportionate share of the TRS net pension position and a liability of $1,048,314 for its proportionate share of the ERS net pension position.

The TRS total pension liability at the June 30, 2023 measurement date was determined by an actuarial valuation as of June 30, 2022, with update procedures applied to roll forward the total pension liability to June 30, 2023. The District’s proportion of the net pension position was based on the ratio of its actuarially determined employer contribution to TRS’s total actuarially determined employer contributions for the fiscal year ended on the measurement date. At June 30, 2023, the District’s proportion was 0.042354%, a decrease of 0.00204 from its proportion measured as of June 30, 2022.

The ERS total pension liability at the March 31, 2024 measurement date was determined by an actuarial valuation as of April 1, 2023, with update procedures applied to roll forward the total pension liability to March 31, 2024. The District’s proportion of the net pension position was based on the ratio of its actuarially determined employer contribution to ERS’s total actuarially determined employer contributions for the fiscal year ended on the measurement date. At March 31, 2024, the District’s proportion was 0.0071197%, a decrease of 0.0000226 from its proportion measured as of March 31, 2023.

25

For the year ended June 30, 2024, the District recognized net pension expense of $1,861,719 on the government-wide statements (TRS expense of $1,379,447 and ERS expense of $482,272). At June 30, 2024, the District reported deferred outflows and deferred inflows of resources as follows:

TRS	ERS

Deferred Outflows of Resources

Deferred Inflows of Resources

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience Changes of assumptions
Net difference between projected and actual earnings on pension plan investments
Changes in proportion and differences between contributions and proportionate share of contributions
District contributions subsequent to the measurement date

$     1,174,421      $ 1,042,792

247,590

176,723 782,642
$     3,424,168	$

(2,902) (227,271)

-

(98,782) -
(328,955)

$	337,661	$ 396,344

-

45,428 105,449
$	884,882	$

(28,585) -

(512,096)

(11,563) -
(552,244)

District contributions subsequent to the measurement date will be recognized as an addition to (a reduction of) the net pension asset (liability) in the subsequent year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Years ending June 30, 2025 2026 2027 2028 2029
Thereafter

TRS
$	 220,278	$ (229,660)
1,963,801 154,112 119,967 84,073
$	2,312,571	$

ERS (174,801)
211,348 305,790 (115,148)
--
227,189

Actuarial Assumptions

For TRS, the actuarial assumptions used in the June 30, 2022 valuation, with update procedures used to roll forward the total pension liability to June 30, 2023, were based on the results of an actuarial experience study for the period July 1, 2015 to June 30, 2020. These assumptions are:

Inflation – 2.4%
Salary increases – Based on TRS member experience, dependent on service, ranging from 1.95%-5.18% Projected Cost of Living Adjustments (COLA) – 1.3% compounded annually
Investment rate of return – 6.95% compounded annually, net of investment expense, including inflation
Mortality – Based on TRS member experience, with adjustments for mortality improvements based on Society of Actuaries’ Scale MP-2021, applied on a generational basis
Discount rate – 6.95%

The long-term expected rate of return on TRS pension plan investments was determined in accordance with Actuarial Standard of Practice No. 27, Selection of Economic Assumptions for Measuring Pension Obligations. Consideration was given to expected future real rates of return (expected returns, net of pension plan investment expense and inflation) for each major asset class as well as historical investment data and plan performance.

26

For ERS, the actuarial assumptions used in the April 1, 2023 valuation, with update procedures used to roll forward the total pension liability to March 31, 2024, were based on the results of an actuarial experience study for the period April 1, 2015 to March 31, 2020. These assumptions are:

Inflation – 2.9%
Salary increases – 4.4% COLA – 1.5% annually
Investment rate of return – 5.9% compounded annually, net of investment expense, including inflation Mortality – Society of Actuaries’ Scale MP-2021
Discount rate – 5.9%

The long-term expected rate of return on ERS pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected return, net of investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

Investment Asset Allocation

Best estimates of arithmetic real rates of return (net of the long-term inflation assumption) for each major asset class and the Systems’ target asset allocations as of the applicable valuation dates are summarized as follows:

TRS	ERS

Asset Class Domestic equities
Global and international equities Private equities
Real estate equities
Domestic fixed income securities Global fixed income securities Bonds and mortgages
Short-term Other

Target Allocation 33% 19%
9% 11% 16% 2% 6% 1% 3% 100%

Long-Term Expected Real Rate of Return 6.8%
7.2%-7.6% 10.1% 6.3% 2.2% 1.6% 3.2% 0.3%
4.4%-6.0%

Target Allocation
32% 15% 10% 9% 23%
--
1% 10% 100%

Long-Term Expected Real Rate of Return 4.0% 6.7% 7.3% 4.6% 1.5% --
0.3% 5.3%-5.8%

Discount Rate

The discount rate projection of cash flows assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Systems’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The following presents the District’s proportionate share of its net pension position calculated using the discount rate of 6.95% (TRS) and 5.9% (ERS) and the impact of using a discount rate that is 1% higher or lower than the current rate.

At Current

1.0% Decrease	Discount Rate	1.0% Increase

District’s proportionate share of the TRS net pension asset (liability)

District’s proportionate share of the ERS net pension asset (liability)

$	(7,376,902) $

$	(3,296,005) $

(484,350)     $

(1,048,314)     $

5,312,583

828,975

27

9. OPEB

Plan Description

The District maintains a single-employer defined benefit healthcare plan (the Plan) providing for continuation of medical insurance benefits for District employees and their spouses based on various bargaining unit agreements and individual contracts. Eligibility for benefits is based on covered employees who retire from the District and have met vesting requirements. The Plan provides an implicit rate subsidy for retirees that choose to remain on the District’s healthcare plans at their own expense subsequent to retirement. The Plan has no assets, does not issue financial statements, and is not a trust.

At July 1, 2022, employees covered by the Plan include:

Active employees                                                                                                                               111 Inactive employees or beneficiaries currently receiving benefits                                               27 Inactive employees entitled to but not yet receiving benefits                                                        -138

Total OPEB Liability

The District’s total OPEB liability of $2,706,495 was measured as of June 30, 2024 and was determined by an actuarial valuation as of July 1, 2022, with update procedures to roll forward the total OPEB liability to June 30, 2024.

The total OPEB liability was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:

Healthcare cost trend rates – based on the Society of Actuaries’ Getzen Trend Model, initially 5.8% to an ultimate rate of 3.8% after 2073
Salary increases – 2.4%
Mortality – Pub-2010 Mortality Table with generational projection of future improvements with Scale MP-2021
Discount rate – 3.93% based on the Bond Buyer General Obligation 20-Bond Municipal Index as of the measurement date Inflation rate – 2.4%

Changes in the Total OPEB Liability

Total OPEB Liability

Balance at June 30, 2023 Changes for the year:
Service cost Interest
Changes of benefit terms
Differences between expected and actual experience Changes of assumptions or other inputs
Benefit payments Net changes
Balance at June 30, 2024

$	(2,680,041)

(135,350) (100,103)
--
61,963 147,036
(26,454) $	(2,706,495)

The following presents the sensitivity of the District’s total OPEB liability to changes in the discount rate, including what the District’s total OPEB liability would be if it were calculated using a discount rate that is 1% higher or lower than the current discount rate:

1.0% Decrease (2.93%)

Discount Rate (3.93%)

1.0% Increase (4.93%)

Total OPEB liability	$	(2,933,639)	$	(2,706,495)	$	(2,495,748)

28

The following presents the sensitivity of the District’s total OPEB liability to changes in the healthcare cost trend rates, including what the District’s total OPEB liability would be if it were calculated using trend rates that are 1% higher or lower than the current healthcare cost trend rates:

1.0% Decrease (4.8% to 2.8%)

Healthcare Cost Trend Rate (5.8% to 3.8%)

1.0% Increase (6.8% to 4.8%)

Total OPEB liability	$	(2,370,228)	$	(2,706,495)	$	(3,106,168)

OPEB Expense and Deferred Outflows and Deferred Inflows of Resources

For the year ended June 30, 2024, the District recognized OPEB expense of $378,255. At June 30, 2024, the District reported deferred outflows and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience	$ Changes of assumptions or other inputs
$

574,166     $ 699,566
1,273,732     $

(499,583) (93,846) (593,429)

Amounts reports as deferred outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Years ending June 30, 2025 2026 2027 2028 2029
Thereafter

$          142,802 142,802 124,643 55,564
25,196 189,296
$	680,303

10. Risk Management

General Liability

The District purchases commercial insurance for various risks of loss due to torts, theft, damage, errors and omissions, and natural disasters. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three years.

Health Insurance

The District participates in the Genesee Area Healthcare Plan (the Plan). The Plan has been established to administer a health insurance program to lower the costs of such coverage to the 24 participating members as of June 30, 2023 (the most recent information available).

The District has transferred all risk to the Plan. Plan members pay monthly premium equivalents based upon a pro-rata share of expenditures. All funds received are pooled and administered as a common fund. Refunds are not made nor additional assessments charged other than the annual premium equivalents. If the Plan’s assets were to be exhausted, members would be equally responsible for remaining liabilities.

The Plan has established its own financial report for the year ended June 30, 2023, which can be obtained from Genesee Valley BOCES, 80 Munson Street, LeRoy New York 14482.

29

Workers’ Compensation

The District participates in the Genesee County Self-Insurance Workers’ Compensation Plan (the Plan) sponsored by Genesee County. The Plan administers a workers’ compensation insurance fund pursuant to Article 5 of the Workers’ Compensation Law to finance the liability and risk related to workers’ compensation claims and to lower the costs of coverage to the participating members. The Plan includes 47 members as of December 31, 2023 (the most recent information available).

The District has transferred partial risk to the Plan. Plan members pay monthly premium equivalents based upon a pro-rata share of expenditures. All funds received are pooled and administered as a common fund. Plan members could be subjected, however, to pro-rata supplemental assessments in the event that the Plan's assets are not adequate to meet claims. To date, these supplemental assessments have not been required.

The Plan has published its own financial report for the year ended December 31, 2023 which can be obtained from Genesee County Self-Insurance Workers’ Compensation Plan, 15 Main Street, Batavia, New York 14020.

11. Commitments and Contingencies

Grants

The District receives financial assistance from federal and state agencies in the form of grants and calculated aid as determined by the State. The expenditure of grant funds generally requires compliance with the terms and conditions specified in the agreements and is subject to audit by the grantor agencies. State aid payments are based upon estimated expenditures and pupil statistics, are complex, and subject to adjustment. Any disallowed claims resulting from such audits could become a liability of the District. Based on prior experience, management expects such amounts to be immaterial.

Commitments

The District’s taxpayers have approved a capital improvement project that remains in progress at year end and is expected to cost $17,108,000. As of June 30, 2024, $12,148,000 has been expended on the project and numerous open contracts are in place.

Litigation

The District is subject to claims and lawsuits that arise in the ordinary course of business. In the opinion of management, these claims and lawsuits will not have a material adverse effect upon the financial position of the District.

30

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Required Supplementary Information (Unaudited)

Schedule of the District's Proportionate Share of the Net Pension Position New York State Teachers' Retirement System

As of the measurement date of June 30,

District's proportion of the net pension position

2023

0.042354%

2022

0.044394%

2021

0.042165%

2020

0.044579%

2019

0.045249%

2018

0.045713%

2017

0.046315%

2016

0.044178%

2015

0.044391%

2014

0.043960%

District's proportionate share of the

net pension asset (liability)	$     (484,350) $     (851,867) $ 7,306,843     $ (1,231,847) $ 1,175,563     $	826,614     $	352,039      $     (473,160) $ 4,610,808      $ 4,896,911

District's covered payroll	$ 7,822,362      $ 7,864,469     $ 7,156,800      $ 7,566,524      $ 7,552,740      $ 7,446,153      $ 7,339,377      $ 6,817,044      $ 6,805,183      $ 6,580,736

District's proportionate share of the net pension asset (liability) as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total pension liability

(6.19%)

99.17%

(10.83%)

98.57%

102.10%

113.20%

(16.28%)

97.76%

15.56%

102.17%

11.10%

101.53%

4.80%

100.66%

(6.94%)

99.01%

67.75%

110.46%

74.41%

111.48%

The following is a summary of changes of assumptions:

Inflation
Salary increases
Cost of living adjustments Investment rate of return Discount rate
Society of Actuaries' mortality scale

2.4% 1.95%-5.18%
1.3% 6.95% 6.95% MP-2021

2.4%	2.4% 1.95%-5.18% 1.95%-5.18%
1.3%                   1.3% 6.95%                 6.95% 6.95%                 6.95% MP-2021           MP-2020

2.2% 1.90%-4.72%
1.3% 7.1% 7.1%
MP-2019

2.2% 1.90%-4.72%
1.3% 7.1% 7.1%
MP-2018

2.25% 1.90%-4.72%
1.5% 7.25% 7.25% MP-2014

2.5% 1.90%-4.72%
1.5% 7.25% 7.25% MP-2014

2.5% 1.90%-4.72%
1.5% 7.5% 7.5%
MP-2014

3.0% 4.0%-10.9%
1.625% 8.0% 8.0% AA

3.0% 4.0%-10.9%
1.625% 8.0% 8.0% AA

31

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Required Supplementary Information (Unaudited) Schedule of District Contributions
New York State Teachers' Retirement System

For the years ended June 30,	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015

Contractually required contribution	$	782,642     $	804,921     $      770,718     $	682,043     $      670,394     $	802,101     $	729,723     $	860,175     $	903,940     $     1,168,923

Contribution in relation to the contractually required contribution
Contribution deficiency (excess)

(782,642)
$	$

(804,921)
-     $

(770,718)
-     $

(682,043)
-     $

(670,394)
-     $

(802,101)
-     $

(729,723)
-     $

(860,175)
-     $

(903,940)	(1,168,923) -     $                      -

District's covered payroll	$     8,018,873     $     7,822,362     $ 7,864,469     $ 7,156,800     $ 7,566,524     $     7,552,740     $     7,446,153     $     7,339,377     $     6,817,044     $     6,805,183

Contributions as a percentage of covered payroll	9.76%	10.29%	9.80%	9.53%	8.86%	10.62%	9.80%	11.72%	13.26%	17.18%

32

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Required Supplementary Information (Unaudited)

Schedule of the District's Proportionate Share of the Net Pension Position New York State and Local Employees' Retirement System

As of the measurement date of March 31,

District's proportion of the net pension position

2024

0.0071197%

2023

0.0071423%

2022

0.0067881%

2021

0.0066437%

2020

0.0067468%

2019

0.0068015%

2018

0.0068749%

2017

0.0068653%

2016

0.0070527%

2015

0.0066416%

District's proportionate share of the

net pension asset (liability)	$ (1,048,314) $ (1,531,596) $	554,902     $	(6,615) $ (1,786,596) $      (481,904) $     (221,884) $     (645,081) $ (1,131,975) $     (224,368)

District's covered payroll	$ 2,285,462     $ 2,281,792     $ 2,224,998     $ 2,293,915     $ 2,336,602     $ 2,240,209     $ 2,331,766     $ 2,308,649     $ 2,075,859     $ 1,916,607

District's proportionate share of the net pension asset (liability) as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total pension liability

(45.87%)

93.88%

(67.12%)

90.78%

24.94%

103.65%

(0.29%)

99.95%

(76.46%)

86.39%

(21.51%)

96.27%

(9.52%)

98.24%

(27.94%)

94.70%

(54.53%)

90.70%

(11.71%)

97.90%

The following is a summary of changes of assumptions:

Inflation
Salary increases
Cost of living adjustments Investment rate of return Discount rate
Society of Actuaries' mortality scale

2.9% 4.4% 1.5% 5.9% 5.9%
MP-2021

2.9% 4.4% 1.5% 5.9% 5.9%
MP-2021

2.7% 4.4% 1.4% 5.9% 5.9%
MP-2020

2.7% 4.4% 1.4% 5.9% 5.9%
MP-2020

2.5% 4.2% 1.3% 6.8% 6.8%
MP-2018

2.5% 4.2% 1.3% 7.0% 7.0%
MP-2014

2.5% 3.8% 1.3% 7.0% 7.0%
MP-2014

2.5% 3.8% 1.3% 7.0% 7.0%
MP-2014

2.5% 3.8% 1.3% 7.0% 7.0%
MP-2014

2.7% 4.9% 1.4% 7.5% 7.5%
MP-2014

33

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Required Supplementary Information (Unaudited) Schedule of District Contributions
New York State and Local Employees' Retirement System

For the years ended June 30,	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015

Contractually required contribution	$	270,074     $	244,509     $	339,906     $	315,908     $	320,694     $	313,085     $	338,197     $	346,515     $	409,084     $	365,998

Contribution in relation to the contractually required contribution
Contribution deficiency (excess)

(270,074)
$	-     $

(244,509)
-     $

(339,906)
-     $

(315,908)
-     $

(320,694)
-     $

(313,085)
-     $

(338,197)
-     $

(346,515)
-     $

(409,084)
-     $

(365,998) -

District's covered payroll	$ 2,285,462     $ 2,281,792     $ 2,224,998     $ 2,293,915     $ 2,336,602     $ 2,240,209     $ 2,331,766     $ 2,308,649     $ 2,075,859     $ 1,916,607

Contributions as a percentage of covered payroll	11.82%	10.72%	15.28%	13.77%	13.72%	13.98%	14.50%	15.01%	19.71%	19.10%

34

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Required Supplementary Information (Unaudited) Schedule of Changes in the District's
Total OPEB Liability and Related Ratios

For the years ended June 30,	2024	2023	2022	2021	2020	2019	2018

Total OPEB liability - beginning

Changes for the year: Service cost Interest
Changes of benefit terms
Differences between expected and actual experience Changes of assumptions or other inputs
Benefit payments
Net change in total OPEB liability Total OPEB liability - ending

$	(2,680,041) $

(135,350) (100,103)
--
61,963 147,036
(26,454)
$	(2,706,495) $

(1,645,789) $

(87,326) (58,457)
-(587,863) (465,579)
164,973 (1,034,252) (2,680,041) $

(1,660,184) $

(83,970) (36,891)
--
62,372 72,884 14,395 (1,645,789) $

(2,339,355) $

(78,951) (52,491)
-772,294
(48,464) 86,783
679,171 (1,660,184) $

(2,094,217) $

(92,759) (74,194)
--
(213,678) 135,493 (245,138)
(2,339,355) $

(1,598,229) $

(53,894) (47,597)
-227,267
(753,889) 132,125 (495,988)
(2,094,217) $

(1,588,609)

(72,974) (43,287)
-(333,963)
-440,604
(9,620) (1,598,229)

Covered-employee payroll	$	6,545,346     $	6,545,346     $	6,808,215     $	6,808,215     $	8,980,099     $	8,980,099     $	9,483,905

Total OPEB liability as a percentage of
covered-employee payroll	41.3%	40.9%	24.2%	24.4%	26.1%	23.3%	16.9%

No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.

Differences between expected and actual experience for 2023 reflect removal of current and future post-65 retirees that will be or are paying 100% of the benefit; such employees had a negative liability and removal from the Plan therefore increased the liability. Differences between expected and actual experience for 2021 and 2019 represent decreases in active members included in the valuation. Such differences for 2018 are due to differences between projected benefit payments and the District's actual contributions.

Covered-employee payroll was adjusted in 2021 to properly exclude employees who waived health insurance coverage.

The following is a summary of changes of assumptions:

Healthcare cost trend rates Inflation rate
Salary increases Discount rate
Society of Actuaries' mortality scale

5.8%-3.8% 2.4% 2.4%
3.93% MP-2021

5.8%-3.8% 2.4% 2.4%
3.65% MP-2021

5.3%-4.1% 2.6% 2.6%
3.54% MP-2019

5.3%-4.1% 2.6% 2.6%
2.16% MP-2019

6.1%-4.1% 2.6% 2.6%
2.21% MP-2016

6.1%-4.1% 2.6% 2.6% 3.5%
MP-2016

7.5%-4.5% 2.6% 3.0% 3.0%
MP-2016

Data prior to 2018 is unavailable.	35

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Supplementary Information

Schedule of Change from Original to Final Budget and Calculation of Unrestricted Fund Balance Limit - General Fund

For the year ended June 30, 2024

Original expenditure budget	$	25,972,402

Encumbrances carried over from prior year
Proposition #2 - purchase of two buses and three minivans

352,309 283,421

Revised expenditure budget	$	26,608,132

* * *

Unrestricted Fund Balance

Committed Assigned Unassigned

$            519,584 455,178 1,262,775 2,237,537

Encumbrances included in assigned fund balance Appropriated fund balance used for tax levy

(190,178) (265,000)

Amount subject to 4% limit pursuant to Real Property Tax Law §1318	$	1,782,359

§1318 of Real Property Tax Law - unrestricted fund balance limit calculation

2025 expenditure budget (unaudited) 4% of budget

$       27,563,772 1,102,551

Actual percentage of 2025 expenditure budget	6.5%

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BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Supplementary Information

Schedule of Capital Project Expenditures

June 30, 2024

Original Project Title	Budget

Expenditures Prior	Current
Years	Year	Total

Unexpended Balance

2021 Capital Improvements Project 2023-2024 Capital Outlay Project Smart Schools Bond Act

$     17,107,802     $ 100,000
1,060,464
$     18,268,266     $

3,836,108     $ -
770,065 4,606,173     $

8,312,066 100,000 116,794 8,528,860

$     12,148,174     $ 100,000 886,859
$     13,135,033     $

4,959,628 -
173,605 5,133,233

37

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Supplementary Information

Schedule of Expenditures of Federal Awards

For the year ended June 30, 2024

Assistance Listing
Federal Grantor/Pass-Through Grantor/Program Title	Number

Grantor
Number	Expenditures

U.S. Department of Homeland Security:
Passed Through New York State Division of Homeland Security and Emergency Services:
Disaster Grants - Public Assistance (Presidentially Declared Disasters)	97.036	4480DR-NY	$	87,917

U.S. Department of Education:
Passed Through New York State Education Department: Special Education Cluster:
Special Education Grants to States Special Education Preschool Grants
Total Special Education Cluster

Title I Grants to Local Educational Agencies Supporting Effective Instruction State Grants Student Support and Academic Enrichment Program

Education Stabilization Fund:
American Rescue Plan Elementary and Secondary School Emergency Relief Fund
American Rescue Plan Elementary and Secondary School Emergency Relief Fund
American Rescue Plan Elementary and Secondary School Emergency Relief Fund
Total Education Stabilization Fund

84.027 84.173

84.010 84.367 84.424

84.425U

84.425U

84.425U

0032-24-0278 0033-24-0278

0021-24-1005 0147-24-1005 0204-24-1005

5880-21-1005

5883-21-1005

5884-21-1005

288,069 13,342 301,411

136,120 20,646 11,734

353,348

117,214

69,686 540,248

Total U.S. Department of Education	1,010,159

U.S. Department of Agriculture:
Passed Through New York State Education Department: Child Nutrition Cluster:
School Breakfast Program	10.553	N/A National School Lunch Program	10.555	N/A Summer Food Service Program for Children	10.559	N/A

Passed Through New York State Office of General Services: Child Nutrition Cluster:
National School Lunch Program	10.555	N/A Total Child Nutrition Cluster and U.S. Department of Agriculture

63,355 269,991 10,948

39,695 383,989

Total Expenditures of Federal Awards	$	1,482,065

See accompanying notes.	38

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Notes to Schedule of Expenditures of Federal Awards

1. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs administered by Byron-Bergen Central School District (the District), an entity as defined in Note 1 to the District’s basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the Schedule of Expenditures of Federal Awards.

Basis of Accounting

The District uses the modified accrual basis of accounting for each federal program, consistent with the fund basis financial statements.

The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable programs and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program, which are periodically reconciled with the District’s financial reporting system.

Indirect Costs

The District does not use the 10% de minimis indirect cost rate permitted by the Uniform Guidance.

Non-Monetary Federal Program

The District is the recipient of a federal award program that does not result in cash receipts or disbursements, termed a “non-monetary program.” During the year ended June 30, 2024, the District used $39,695 worth of commodities under the National School Lunch Program (Assistance Listing Number 10.555).

39

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Board of Education
Byron-Bergen Central School District

We have audited, in accordance with the auditing standards generally accepted in the United States of America (GAAP) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the remaining fund information of Byron-Bergen Central School District (the District) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated September 20, 2024.

Report on Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District’s financial statements are free from 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 financial statements. 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.

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Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

September 20, 2024

41

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE

The Board of Education
Byron-Bergen Central School District

Report on Compliance for Each Major Federal Program

Opinion on Each Major Federal Program

We have audited Byron-Bergen Central School District’s (the District) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the District’s major federal programs for the year ended June 30, 2024. The District’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.

In our opinion, the District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2024.

Basis for Opinion on Each Major Federal Program

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the District’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance

Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the District’s federal programs.

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Auditors’ Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the District’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the District’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:

	Exercise professional judgment and maintain professional skepticism throughout the audit.
	Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the District’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
	Obtain an understanding of the District’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

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The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

September 20, 2024

44

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Schedule of Findings and Questioned Costs

For the year ended June 30, 2024

Section I.	Summary of Auditors’ Results

Financial Statements

Type of auditors’ report issued:

Internal control over financial reporting: 	Material weakness(es) identified?
	Significant deficiency(ies) identified?

Noncompliance material to financial statements noted?

Federal Awards

Internal control over major programs:       Material weakness(es) identified?
	Significant deficiency(ies) identified?

Type of auditors’ report issued on compliance for major programs:

Any audit findings disclosed that are required to be reported in accordance with section 2 CFR 200.516(a)?

Identification of major programs:

Unmodified

No
None reported

No

No
None reported

Unmodified

No

Name of Federal Program or Cluster Education Stabilization Fund

Assistance Listing Number 84.425

Amount
$	540,248

Dollar threshold used to distinguish between type A and type B programs:

Auditee qualified as low-risk auditee?

$750,000

Yes

Section II.	Financial Statement Findings

No matters were reported.

Section III.	Federal Award Findings and Questioned Costs

No matters were reported.

45