BYRON-BERGEN CENTRAL SCHOOL DISTRICT

FINANCIAL STATEMENTS

JUNE 30, 2020

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Table of Contents

June 30, 2020

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 Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position
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 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
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

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 and related notes

Reports on Federal Award Programs
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

We have audited the accompanying 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, 2020, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the 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, 2020, 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.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require 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, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the 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.

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 financial statements.

The accompanying supplementary information including the schedule of expenditures of federal awards is the responsibility of management and is derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such 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 auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information including the schedule of expenditures of federal awards 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 October 8, 2020 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 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.

October 8, 2020

2

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Management’s Discussion and Analysis (unaudited)

June 30, 2020

Introduction

Management’s Discussion and Analysis (MD&A) of Byron-Bergen Central School District (the District) provides an overview of the District’s financial activities and performance for the year ended June 30, 2020. 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) agency 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, deferred outflows of resources, liabilities, and deferred inflows of resources. The difference between them is 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.

Agency funds are used to account for resources held for the benefit of parties outside the District. Agency 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 and governmental fund financial statements.

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

3

Change Condensed Statement of Net Position	2020	2019	$	%

Current and other assets Capital assets
Total assets

$	12,991,000     $ 42,579,000 55,570,000

20,608,000 $ 32,005,000 52,613,000

(7,617,000) 10,574,000
2,957,000

(37.0%) 33.0%
5.6%

Deferred outflows of resources

Long-term liabilities Other liabilities
Total liabilities

Deferred inflows of resources

Net position
Net investment in capital assets Restricted
Unrestricted

6,044,000

32,691,000 2,301,000 34,992,000

1,879,000

21,060,000 4,516,000
(833,000)

5,760,000

16,674,000 16,133,000 32,807,000

1,510,000

20,596,000 4,197,000
(737,000)

284,000

16,017,000 (13,832,000)
2,185,000

369,000

464,000 319,000
(96,000)

4.9%

96.1% (85.7%)
6.7%

24.4%

2.3% 7.6% 13.0%

Total net position	$	24,743,000     $	24,056,000 $	687,000	2.9%

Net position amounted to $24,743,000 and $24,056,000 as of June 30, 2020 and 2019, 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 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. These reserves are set aside for specific purposes governed by statutory law and regulations and 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 Local Employees’ Retirement System (ERS) and the; the capital reserve, which is dedicated for future renovations 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, insurance, and tax certiorari reserves.

Current and other assets decreased by $7,617,000 ($11,492,000 increase in 2019). These balances consist of cash and receivables from other governments and third parties. The changes in individual account balances reflect cash spent on the ongoing 2018 capital improvements project. Capital assets increased $10,574,000 ($3,314,000 increase in 2019) as a result of the previously mentioned capital improvement project.

Long-term liabilities increased by $16,017,000 ($682,000 decrease in 2019) primarily due to the District’s $15,425,000 bond issuance to permanently fund its previously mentioned capital improvement project.     The decrease in other liabilities of $13,832,000 (increase of $13,599,000 in 2019) is primarily a result of payment of $13,000,000 on certain bond anticipation notes (BANs) from the aforementioned bond proceeds.

Many of the District’s employees participate in TRS and ERS, which is reflected in the amounts reported as net pension asset, net pension liability, and deferred outflows and deferred inflows of resources related to pensions. Changes in these balances are heavily influenced by actuarial assumptions and investment performance versus expected performance. See the footnotes to the financial statements for further details.

4

Change Condensed Statement of Activities	2020	2019	$	%

Revenues
Program revenues Charges for services
Operating 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

$	 219,000     $ 1,466,000

9,101,000 13,111,000 431,000 24,328,000

17,483,000

3,503,000 1,581,000 470,000 604,000 23,641,000

687,000

24,056,000
$	24,743,000     $

357,000     $ 1,550,000

8,817,000 13,332,000 549,000 24,605,000

16,497,000

3,399,000 1,678,000 526,000 295,000 22,395,000

2,210,000

21,846,000 24,056,000     $

(138,000) (84,000)

284,000 (221,000) (118,000) (277,000)

986,000

104,000 (97,000) (56,000)
309,000 1,246,000

(1,523,000)

2,210,000 687,000

(38.7%) (5.4%)

3.2% (1.7%)
(21.5%) (1.1%)

6.0%

3.1% (5.8%)
(10.6%) 104.7%
5.6%

(68.9%)

10.1% 2.9%

District revenues decreased $277,000 in 2020 (2.7% or $642,000 increase in 2019). State aid decreased $221,000 ($90,000 or 0.7% decrease in 2019) primarily from decreases in BOCES aid and foundation aid. The decrease of $138,000 in charges for services ($70,000 or 24.4% increase in 2019) is mainly from a reduction in non-reimbursable meals due to COVID-19 and a discontinuation of a special education program offered to other districts. These decreases were offset by real property taxes, which increased $284,000 ($227,000 or 2.6% increase in 2019) while staying within the tax levy cap.

Total expenses increased $1,246,000 ($1,132,000 or 5.3% increase in 2019). Employee benefits, which are allocated amongst all instruction and support services expenses and include pension expense, OPEB expense, and health insurance premiums, increased $1,328,000 ($472,000 or 13.3% increase in 2019). Interest increased $309,000 ($32,000 decrease or 9.8% decrease in 2019) due to required BAN and bond interest payments. These increases were offset by payroll which decreased $229,000 or 2.2% ($324,000 or 3.2% increase in 2019) due to retirements at the end of 2019 and reductions caused by COVID-19 offsetting new hires and contractual salary increases.

Financial Analysis of the District’s Funds

Total fund balances for the governmental funds increased $5,872,000 from $3,676,000 to $9,548,000 as follows:

	Total fund revenue decreased $156,000 or 0.6% (increase of $521,000 or 2.2% in 2019) and total fund expenditures increased by $6,887,000 or 25.1% (increase of $4,001,000 or 17.1% in 2019). The overall revenue decrease is due to a decrease in State aid as previously mentioned. The overall increase in expenditures is due to an increase in capital outlay expenditures of $7,072,000 or 160.4% ($3,497,000 or 383.8% increase in 2019) as spending continued on the 2018 improvements project.
	The general fund experienced an increase in fund balance of $1,622,000 compared to an increase in fund balance of $1,057,000 in 2019. This change was attributable to a reduction in transfers to other funds.

5

General Fund Budgetary Highlights

The revenue budget for 2020 was $22,960,000, with actual revenues amounting to $22,706,000, an unfavorable variance of $254,000 or 1.1%. This was primarily caused by State sources less than budgeted amounts.

Actual expenditures and carryover encumbrances were less than the final budget by $2,489,000 or 11.6%. The difference is attributable to many factors and many unknown items at the time the budget is prepared, as well as the impact of COVID-19 on District operations. The District was able to generate savings in teaching, pupil transportation, and programs for children with disabilities.

Capital Assets

Land
Construction in progress Buildings and improvements Machinery and equipment

Accumulated depreciation

2020
$		139,000     $ 14,487,000 44,736,000
3,935,000 63,297,000
(20,718,000)
$	42,579,000     $

2019 139,000
3,293,000 44,535,000 3,577,000 51,544,000
(19,539,000) 32,005,000

The investment in capital assets of $11,954,000 during the year was offset by current year depreciation of $1,380,000.

Debt

At June 30, 2020, the District had $23,085,000 in bonds outstanding, with $2,275,000 due within one year ($8,945,000 outstanding at June 30, 2019). Outstanding compensated absences payable were $5,185,000, with $845,000 expected to be paid within one year ($5,037,000 outstanding at June 30, 2019).

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

Current Financial Issues and Concerns

The extent of the impact of COVID-19 on the District’s operational and financial performance will depend on further developments, including the duration and spread of the outbreak and its impact on all school districts and their residents, employees, and vendors, none of which can be predicted. The District has already experienced a 20% holdback of State aid that could become permanent. Significant reductions are expected in 2020-2021 for State aid. Federal revenue sources are expected to increase but the extent of Federal assistance is not yet known.

The District will continue to mitigate the impact of rising costs of education on the overall budget, including using reserve funds as permitted by law to lessen their budgetary impact. The property tax levy requires using reserves judiciously. These issues and concerns are exacerbated by COVID-19 requiring management to plan carefully and prudently to provide the educational resources necessary to meet student needs and flexibility on how students are taught.

Contacting the District’s Financial Management

This financial report is designed to provide our citizens, taxpayers, and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact Lori Prinz, School Business Administrator, Byron-Bergen Central School District, 6917 W. Bergen Road, Bergen, New York 14416-9747.

6

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Statement of Net Position

June 30, 2020

(With comparative totals as of June 30, 2019)	2020	2019

Assets Cash
Due from other governments, net State and federal aid receivable, net Due from fiduciary funds
Inventory and prepaid expenses Investments
Net pension asset Capital assets (Note 5)

$	4,423,626     $ 528,696 755,688
-47,487
6,060,351 1,175,563 63,296,676

18,193,480 790,702 777,992 257
18,714 -826,614
51,544,798

Accumulated depreciation Total assets

Deferred Outflows of Resources

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 Due to fiduciary funds Unearned revenue
Bond anticipation notes Long-term liabilities
Due within one year: Bonds
Compensated absences Due beyond one year:
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

(20,718,130) 55,569,957

5,033,157 1,010,432 6,043,589

519,495 59,787 857,305 410 93,874 769,924

2,275,402 845,000

21,104,844 4,340,000 1,786,596 2,339,355 34,991,992

1,703,912 175,021 1,878,933

(19,539,688) 52,612,869

4,819,429 940,478 5,759,907

1,119,862 220,758 976,618
-70,648
13,744,832

1,285,000 812,000

7,775,808 4,225,000 481,904 2,094,217 32,806,647

1,309,290 201,144 1,510,434

Net Position
Net investment in capital assets Restricted
Unrestricted
Total net position

21,060,055 4,516,381
(833,815)
$	24,742,621     $

20,596,222 4,197,186
(737,713) 24,055,695

See accompanying notes.	7

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Statement of Activities

For the year ended June 30, 2020

(with summarized comparative totals for June 30, 2019)

Program Revenues	Net (Expense) Revenue

Charges for Functions/Programs	Expenses	Services

Operating Grants and
Contributions	2020	2019

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

$	 3,502,867	$ 17,483,185
1,581,342 603,889 470,247
$	23,641,530	$

-     $ 105,746
--
113,362 219,108     $

-1,065,395 -
-400,310
1,465,705

$	 (3,502,867) $ (16,312,044)
(1,581,342) (603,889)
43,425 (21,956,717)

(3,399,597) (15,100,285) (1,678,025) (294,861) (15,174) (20,487,942)

General revenues

Real property and sales taxes Miscellaneous
State aid

Total general revenues

Change in net position

9,100,961 431,110 13,111,572 22,643,643

686,926

8,816,647 549,108 13,331,740 22,697,495

2,209,553

Net position - beginning Net position - ending

24,055,695
$	24,742,621     $

21,846,142 24,055,695

See accompanying notes.	8

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Balance Sheet - Governmental Funds

June 30, 2020

(With summarized comparative totals as of June 30, 2019)

General

Assets

Capital Projects

Special Aid

Debt Service

School	Total Governmental Funds Lunch                    2020	2019

Cash
Due from other governments, net State and federal aid receivable, net Due from other funds, net Inventory and prepaid expenses

$     2,007,016 528,696 222,263 1,632,671 25,106

$ 1,400,591     $ -
---

39,986     $ -
491,823 --

831,057     $ -
-73,994 -

144,976     $ -
41,602 -22,381

4,423,626 528,696 755,688 1,706,665 47,487

$ 18,193,480 790,702 777,992 613,942 18,714

Investments Total assets

3,304,963 $     7,720,715

2,755,388
$ 4,155,979     $

-531,809     $

-905,051     $

-208,959

6,060,351 $ 13,522,513

-$ 20,394,830

Liabilities and Fund Balances Accounts payable
Accrued liabilities
Due to retirement systems

$	212,079      $ 13,548
854,517

206,539      $ -
-

91,464      $ -
-

-     $	9,413     $ -                 13,739
-	2,788

519,495     $ 27,287
857,305

1,119,862 193,058 976,618

Due to other funds, net Unearned revenue Bond anticipation notes
Total liabilities

-42,843 -
1,122,987

1,317,761 -
769,924 2,294,224

389,314 51,031 -531,809

-	--	--	--                 25,940

1,707,075 93,874 769,924 3,974,960

613,685 70,648 13,744,832 16,718,703

Fund Balances Nonspendable:
Inventory and prepaid expenses Restricted:
Debt service Liability
Unemployment insurance Capital
Employee benefit accrued liability Insurance
Retirement contribution Tax certiorari
Workers' compensation Assigned:
Designated for subsequent year's expenditures
Other purposes Unassigned
Total fund balances
Total liabilities and fund balances

25,106

-5,863
127,292 984,583 1,439,372 2,836 663,798 153,828 233,758

1,000,000 79,131 1,882,161 6,597,728
$     7,720,715

-

---
1,861,755 -----

---
1,861,755
$ 4,155,979     $

-

---------

----
531,809     $

-

905,051 --------

---
905,051 905,051     $

22,381

---------

-160,638 -183,019 208,959

47,487

905,051 5,863 127,292 2,846,338 1,439,372 2,836 663,798 153,828 233,758

1,000,000 239,769 1,882,161 9,547,553
$ 13,522,513

18,714

763,568 5,823 126,425 977,686 1,429,574 2,836 506,328 152,780 232,166

300,000 564,107
(1,403,880) 3,676,127
$ 20,394,830

See accompanying notes.	9

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

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

June 30, 2020

Total fund balances - governmental funds	$	9,547,553

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.	42,578,546

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

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

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

1,175,563 5,033,157 (1,786,596) (1,703,912)

1,010,432 (2,339,355)
(175,021)

(23,380,246) (32,500) (5,185,000)

2,718,212

(1,503,944)

(28,597,746)

Net position - governmental activities	$	24,742,621

See accompanying notes.	10

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

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

For the year ended June 30, 2020

(with summarized comparative totals for June 30, 2019)

Capital General	Projects

Special Aid

Debt Service

School	Total Governmental Funds Lunch                 2020	2019

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

$ 7,227,221     $ 1,827,376
46,364 91,900 40,974 9,551 316,152 13,111,572 34,729
-22,705,839

-     $	-     $ -	-
-	--	--	--	--	--           135,658 -           895,008 -	--       1,030,666

-     $	--	--	--	-
78,279	--	--               6,992 -             75,416 -          324,894 -          106,370
78,279	513,672

$     7,227,221 1,827,376 46,364 91,900 119,253 9,551 323,144 13,322,646 1,254,631 106,370 24,328,456

$     6,910,719 1,872,679 33,249 163,388 86,015 51,931 316,645 13,943,615 938,644 167,747 24,484,632

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)

Proceeds from issuance of serial bonds BANs redeemed from appropriations Bond and BAN premiums
Operating transfers

Total other financing sources (uses)

Net change in fund balances

2,853,858 11,161,660 1,053,025 3,910,862

----
18,979,405

3,726,434

---
(2,104,665) (2,104,665)

1,621,769

--
258,114 -

---
11,293,861 11,551,975

(11,551,975)

15,425,402 236,408
-100,000
15,761,810

4,209,835

-977,478 25,841 27,347

----
1,030,666

-

-----

-

----

1,521,408 615,633
--
2,137,041

(2,058,762)

--
195,580 2,004,665 2,200,245

141,483

98,979 --
44,208

--
285,914 186,232 615,333

(101,661)

-----

(101,661)

2,952,837 12,139,138 1,336,980 3,982,417

1,521,408 615,633 285,914 11,480,093 34,314,420

(9,985,964)

15,425,402 236,408 195,580
-15,857,390

5,871,426

2,613,275 12,545,251 1,456,733 4,078,757

1,708,841 322,089 293,786 4,408,574 27,427,306

(2,942,674)

-243,841 132,376 -376,217

(2,566,457)

Fund balances (deficit) - beginning Fund balances - ending

4,975,959 $ 6,597,728

(2,348,080)
$ 1,861,755     $

-          763,568 -     $ 905,051

284,680
$ 183,019     $

3,676,127 9,547,553     $

6,242,584 3,676,127

See accompanying notes.	11

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, 2020

Total net change in fund balances - governmental funds	$	5,871,426

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 expense.
This is the amount by which capital outlays exceed depreciation expense.	10,573,436

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:
2020 TRS and ERS contributions 2020 ERS accrued contribution 2019 ERS accrued contribution 2020 TRS pension expense 2020 ERS pension expense

991,088 101,651 (111,019)
(1,442,680)
(675,677)	(1,136,637)

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.

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

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

(149,061)

(15,620,982)

1,285,000

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

16,544 (4,800)
(148,000)	(136,256)

Change in net position - governmental activities	$	686,926

See accompanying notes.	12

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, 2020

Budgeted Amounts Original	Final
Revenues

Actual (Budgetary Basis)

Variance with Final Budget
Encumbrances	Over/(Under)

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

$	7,230,011     $ 1,774,000
35,000 46,000 15,000 5,000 150,000 13,665,831 39,500 22,960,342

7,230,011 1,774,000 35,000 46,000 15,000 5,000 150,000 13,665,831 39,500 22,960,342

$     7,227,221 1,827,376 46,364 91,900 40,974
9,551 316,152 13,111,572 34,729 22,705,839

$	 (2,790) 53,376 11,364 45,900 25,974
4,551 166,152
(554,259) (4,771) (254,503)

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 Community service Employee benefits
Total expenditures

Excess revenues (expenditures)

33,786 257,038 310,733 114,500 2,082,651 436,950

635,072 6,257,506 2,972,857 775,880 44,500 645,906 1,162,738 1,301,431 4,000 4,512,080 21,547,628

1,412,714

46,286 254,043 323,148 119,756 2,078,846 524,886

694,967 6,584,134 2,674,606 657,769 44,500 797,467 1,208,989 1,383,033 4,000 4,151,198 21,547,628

1,412,714

33,968 247,599 293,374 110,171 1,706,380 462,366

657,359 5,799,516 2,350,819 643,276 41,265 764,726 904,699 1,053,025 -3,910,862
18,979,405

3,726,434

--
1,937 -66,413 -

-7,561 -
---
1,204 2,016 -
-79,131

(79,131)

(12,318) (6,444) (27,837) (9,585) (306,053) (62,520)

(37,608) (777,057) (323,787) (14,493) (3,235) (32,741) (303,086) (327,992) (4,000) (240,336) (2,489,092)

2,234,589

Other financing sources (uses) Operating transfers in Operating transfers out
Appropriated fund balance, reserves, and carryover encumbrances
Total other financing sources (uses)

25,000 (2,295,855)

858,141 (1,412,714)

25,000 (2,295,855)

858,141 (1,412,714)

-(2,104,665)

-(2,104,665)

25,000 (191,190)

(858,141) (691,951)

Excess revenues (expenditures)

and other financing sources (uses)	$	-     $	-     $     1,621,769     $	(79,131) $	1,542,638

See accompanying notes.	13

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Statement of Fiduciary Net Position

June 30, 2020

Assets Cash
Investments
Due from governmental funds Total assets

Liabilities
Extraclassroom activities balances Agency liabilities
Total liabilities

Private-Purpose Trusts

$		4,476     $ 702,224
-706,700     $

-     $ 50
50     $

Agency

429,850 80,197 410 510,457

101,119 409,338 510,457

Net Position
Restricted for scholarships	$	706,650

* * *

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Statement of Changes in Fiduciary Net Position

For the year ended June 30, 2020

Additions

Gifts and donations Interest income
Total additions

Deductions Scholarship awards
Change in net position

Private-Purpose Trusts

$               15,835 9,511
25,346

8,050 17,296

Net position - beginning Net position - ending

689,354 $	706,650

See accompanying notes.	14

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, nor does it contain any component units.

The financial statements of the District have been prepared in conformity with generally accepted accounting principles (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 BOCES (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 no such debt issued by the District.

During the year ended June 30, 2020, the District was billed $3,808,000 for BOCES administrative and program costs and recognized revenue of $282,000 as a refund from prior year expenditures paid to BOCES. Audited financial statements are available from BOCES’ administrative offices.

Public Entity Risk Pools

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 presented in Note 10.

15

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 and (b) grants and contributions that are restricted to meeting the operational requirements of a particular program. 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, including fiduciary 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.
 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.

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

 Debt service fund. This fund is used to account for resources that are restricted, committed, or assigned to expenditure for principal and interest. Financial resources that are being accumulated for principal and interest payments maturing in future years are also included in this fund.
 School lunch 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.

The District reports the following fiduciary funds:

 Private-purpose trust fund. This fund reports trust arrangements under which principal and income benefit various third party scholarship arrangements.
 Agency fund. This fund accounts for assets held by the District as agent for various student groups and clubs, payroll, and employee third party withholdings. The agency fund is custodial in nature and does not involve measurement of results of operations.

16

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 accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the District's financial statements for the year ended June 30, 2019, from which the summarized information was derived.

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 and sales 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 and equipment and property purchased under capital leases 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 accounting principles generally accepted in the United States of America 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, 2020, the tax lien was issued on August 8, 2019 for collection from September 2, 2019 through October 31, 2019. 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 a temporary reduction in the assessed value of the property involved. The abatement agreements stipulate a percentage reduction of property taxes, which can be as much as 100%.

For the year ended June 30, 2020, the District’s taxes were abated $114,000 under these agreements. However, because the abated amounts are spread across the District’s entire tax base, there is no impact on the overall property taxes collected.

17

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, 2019 was approved by a majority of the voters in a general election held on May 21, 2019.

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.

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 as budgeted appropriations.

Investments

Investments include certificates of deposit, repurchase agreements, and U.S. Treasury Securities held in external investment pools and recorded at fair value.

Inventory

Inventory consists of food and similar food service goods related to school lunch 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. Contributed assets are recorded at fair value at the time received. Depreciation is 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 asset purchases 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

$     50,000                          15-50 $       1,000                            5-25

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.

18

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 of 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 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

 Net investment in capital assets – consists of capital assets, net of accumulated depreciation, 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 liabilities and deferred inflows of resources related to those assets if their use is constrained to a particular purpose. Restrictions are imposed by external organizations such as federal or state laws or 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.

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.

19

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. Nonspendable fund balances represents resources that cannot be spent as they are not expected to be converted to cash and include inventory and prepaid expenses.

Fund balance restrictions consist of 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, voters approved the establishment of two reserves, with funding not to exceed $2,000,000 and $500,000, plus interest, over a 10-year period. The reserves have been funded $984,583 to date.
 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.
 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.
 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, 2020, the retirement contribution reserve includes $302,028 for TRS and $361,770 for ERS.
 Tax certiorari – is used to pay judgments and claims resulting from certiorari proceedings. Funds not used by July 1 of the fourth fiscal year following their deposit must be returned to unassigned fund balance.
 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.

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 District’s unassigned fund balance in the general fund exceeds the 4% limit of the 2021 budget, which is a limitation imposed by New York State Real Property Tax Law §1318.

20

3. Cash and Investments

Cash management is governed by State laws and as established in the District’s written policies. Cash resources must be deposited in FDIC-insured commercial banks or trust companies located within the State. The District’s banking policies permit the Treasurer to use demand accounts and certificates of deposit. Invested resources are limited to obligations of the United States Treasury and its Agencies, repurchase agreements, and obligations of the State or its localities.

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.

Custodial credit risk is the risk that in the event of a bank failure the District’s deposits may not be returned to it. At June 30, 2020, the District’s bank deposits were fully insured by FDIC coverage or collateralized with securities held in trust by the pledging institution’s agent or in an undivided security interest in pooled assets in the District’s name.

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 from S&P’s 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, 2019, the most recent information available, is 54 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 79 days.

4. Interfund Transactions – Fund Financial Statements

Transfers

Fund	Receivable	Payable	In	Out

General
Capital projects Special aid Debt service Fiduciary

$	1,633,081     $ -
-73,994 410
$	1,707,485     $

410	$ 1,317,761
389,314 --
1,707,485	$

-     $ 100,000
-2,004,665 -
2,104,665     $

2,104,665 ----
2,104,665

The District’s general fund provides cash flow to the various other funds; these amounts are repaid in the subsequent year when funds are received from the State after final expenditure reports have been submitted and approved or when permanent financing is obtained. Amounts owed to the debt service fund from the capital projects fund represent interest earned on BANs, the proceeds of which were originally deposited into the capital projects fund, and which are restricted for debt service. The general fund made permanent transfers to the capital projects fund to pay the local share of capital projects costs and to the debt service fund for principal and interest payments.

21

5. Capital Assets

July 1, 2019

Retirements/
Increases	Reclassifications	June 30, 2020

Land
Construction in progress
Total non-depreciable assets

$	 139,383 3,293,113 3,432,496

$		-	$ 11,293,861 11,293,861

-(100,000) (100,000)

$		139,383 14,486,974 14,626,357

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

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

Total depreciable assets, net

44,535,246 3,577,056 48,112,302

17,182,318 2,357,370 19,539,688

28,572,614

100,400 559,054 659,454

1,036,640 343,239 1,379,879

(720,425)

100,000 (201,437) (101,437)

-(201,437) (201,437)

100,000

44,735,646 3,934,673 48,670,319

18,218,958 2,499,172 20,718,130

27,952,189

$     32,005,110	$ 10,573,436	$	-	$	42,578,546

Depreciation expense has been allocated to the following functions: general support $152,416, instruction $1,104,678, school lunch $12,568, and pupil transportation $110,217.

At June 30, 2020, net investment in capital assets consists of the following:

Capital assets, net of accumulated depreciation Bonds anticipation notes
Bonds and related premiums, net of unspent proceeds

$     42,578,546 (769,924)
(20,748,567)

$     21,060,055

6. Short-Term Debt

Aggregate bond anticipation notes (BANs) outstanding at June 30, 2020 amounted to $769,924 ($13,744,832 at June 30, 2019) and carry interest from 1.78% to 1.98% (2.50% to 3.00% at June 30, 2019). In 2020, BANs of $261,500 were issued, $236,408 were redeemed from appropriations, and $13,000,000 were repaid with the proceeds from serial bonds. The District intends to continue to reissue the BANs until paid or converted to permanent financing.

7. Long-Term Liabilities

July 1, 2019

June 30, Increases	Decreases	2020

Amount Due in One Year

Bonds
Bond premiums Compensated absences

$        8,945,000 115,808 5,037,000
$	14,097,808

$ 15,425,402 195,580 148,000
$ 15,768,982

$     1,285,000 16,544
-$     1,301,544

$ 23,085,402 $ 294,844
5,185,000
$ 28,565,246 $

2,275,402 -
845,000 3,120,402

22

Existing Obligations

Description
Serial bonds – 2012 Serial bonds – 2020

Maturity June 2026 June 2035

Rate
2.5% - 3.0% $ 2%
$

Balance 7,660,000
15,425,402 23,085,402

Debt Service Requirements

Years ending June 30, 2021 2022 2023 2024 2025
2026 - 2030 2031 - 2035

Principal
$	2,275,402 2,335,000 2,395,000 2,380,000 2,440,000 5,680,000 5,580,000
$	23,085,402

Interest
$	542,593 479,550 419,200 357,250 295,150 885,050 334,600
$	3,313,393

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 8.86% for 2020. 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 2020, these rates ranged from 9.4% - 21.4%.

The amount outstanding and payable to TRS for the year ended June 30, 2020 was $670,394. A liability to ERS of $101,651 is also accrued based on the District’s legally required contribution for employee services rendered from April 1 through June 30, 2020.

23

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

At June 30, 2020, the District reported an asset of $1,175,563 for its proportionate share of the TRS net pension position and a liability of $1,786,596 for its proportionate share of the ERS net pension position.

The TRS net pension position was measured as of June 30, 2019, and the total pension liability was determined by an actuarial valuation as of June 30, 2018, with update procedures applied to roll forward the net pension position to June 30, 2019. 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, 2019, the District’s proportion was 0.045249%, a decrease of 0.000464 from its proportion measured as of June 30, 2018.

The ERS net pension position was measured as of March 31, 2020, and the total pension liability was determined by an actuarial valuation as of April 1, 2019. 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 the March 31, 2020 measurement date, the District’s proportion was 0.0067468%, a decrease of 0.0000547 from its proportion measured as of March 31, 2019.

For the year ended June 30, 2020, the District recognized pension expense of $2,118,357 on the government-wide statements (TRS expense of $1,442,680 and ERS expense of $675,677). At June 30, 2020, 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

$         796,649 2,220,795

-

70,573 670,394
$     3,758,411

$          87,417 541,493

942,741

94,558 -
$ 1,666,209

$         105,148      $                      -35,974                   31,063

915,896	-

116,077                      6,640 101,651                              -

$     1,274,746	$	37,703

District contributions subsequent to the measurement date will be recognized as an addition to (a reduction of) the net pension asset (liability) in the year ending June 30, 2021. 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, 2021 2022 2023 2024 2025
Thereafter

TRS
$             521,638 23,544
519,711 340,186 49,588
(32,859) $	1,421,808

ERS
$	218,492 290,067 349,900 276,933
--
$ 1,135,392

24

Actuarial Assumptions

For TRS, the actuarial assumptions used in the June 30, 2018 valuation, with update procedures used to roll forward the total pension liability to June 30, 2019, were based on the results of an actuarial experience study for the period July 1, 2009 to June 30, 2014. These assumptions are:

Inflation – 2.2%
Salary increases – Based on TRS member experience, dependent on service, ranging from 1.90%-4.72% Projected Cost of Living Adjustments (COLA) – 1.3% compounded annually
Investment rate of return – 7.1% 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-2018, applied on a generational basis
Discount rate – 7.1%

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.

For ERS, the actuarial assumptions used in the April 1, 2019 valuation, with update procedures used to roll forward the total pension liability to March 31, 2020, were based on the results of an actuarial experience study for the period April 1, 2010 to March 31, 2015. These assumptions are:

Inflation – 2.5%
Salary increases – 4.2% COLA – 1.3% annually
Investment rate of return – 6.8% compounded annually, net of investment expense, including inflation Mortality – Society of Actuaries’ Scale MP-2018
Discount rate – 6.8%

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 included in the Systems’ target asset allocations as of the applicable valuation dates are summarized as follows:

TRS
Long-Term Expected
Target	Real Rate Asset Class	Allocation	of Return

Target Allocation

ERS
Long-Term Expected Real Rate of Return

Domestic equities
Global and International equities Private equities
Real estate
Inflation-indexed bonds Domestic fixed income securities Global fixed income securities Bonds and mortgages
Short-term Other

33%	6.3% 20%                7.2%-7.8%
8%                      9.9% 11%                     4.6%
-                            -16%                     1.3%
2%	0.9% 7%	2.9% 1%	0.3% 2%                 3.6%-6.5%
100%

36%                       4.1% 14%                       6.2% 10%                       6.8% 10%                       5.0% 4%                        0.5% -                              --                              -
17%	0.8% 1%                            -
8%	3.3%-6.0% 100%

25

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 7.1% (TRS) and 6.8% (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)

$	(5,306,369) $

$	(3,278,908) $

1,175,563	$

(1,786,596)     $

6,613,172

(412,170)

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 at age 55 or older 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, 2018, employees covered by the Plan include:

Active employees                                                                                                                               131 Inactive employees or beneficiaries currently receiving benefits                                               75 Inactive employees entitled to but not yet receiving benefits                                                        -206

Total OPEB Liability

The District’s total OPEB liability of $2,339,355 was measured as of June 30, 2020 and was determined by an actuarial valuation as of July 1, 2018 with update procedures used to rollforward the total OPEB liability to June 30, 2020.

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 – initially 6.1%, decreasing 0.5% per year to an ultimate rate of 4.1% after 2076 Salary increases – 2.6%
Mortality – RP-2014 Adjusted to 2006 Total Data Set Mortality Table projected to the valuation date with Scale MP-2016, fully generational
Discount rate – 2.21% based on a yield or index rate for 20-Year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher as of the measurement date
Inflation rate – 2.6%

26

Changes in the Total OPEB Liability

Total OPEB Liability

Balance at June 30, 2019 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, 2020

$	2,094,217

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

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 (1.21%)

Discount Rate (2.21%)

1.0% Increase (3.21%)

Total OPEB liability	$	(2,503,021)	$	(2,339,355)	$	(2,173,284)

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 (5.1% to 3.1%)

Healthcare Cost Trend Rate (6.1% to 4.1%)

1.0% Increase (7.1 to 5.1%)

Total OPEB liability	$	(2,049,206)	$	(2,339,355)	$	(2,671,797)

OPEB Expense and Deferred Outflows and Deferred Inflows of Resources

For the year ended June 30, 2020, the District recognized OPEB expense of $284,554. At June 30, 2020, 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
$

242,883     $ 767,549
1,010,432     $

175,021 -175,021

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,
2021	$ 2022
2023 2024 2025
Thereafter
$

117,601 117,601 117,601 117,601 117,601 247,406 835,411

27

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, 2019 (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 the remaining liabilities.

The Plan has published its own financial report for the year ended June 30, 2019, which can be obtained from Genesee Valley BOCES, 80 Munson Street, LeRoy, NY 14482.

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, 2019 (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, 2019 which can be obtained from Genesee County Self-Insurance Workers’ Compensation Plan, 15 Main Street, Batavia, NY 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.

Construction Commitments

The District has entered into contracts with various construction companies for its ongoing capital project. District voters approved spending up to $18,452,902 and the District currently has open commitments totaling $1,949,000.

28

12. Risks and Uncertainties

On January 31, 2020, the United States Secretary of Health and Human Services (HHS) declared a public health emergency related to the global spread of coronavirus COVID-19, and a pandemic was declared by the World Health Organization in February 2020. Efforts to fight the widespread disease included limiting or closing many businesses and all schools, resulting in a severe disruption of operations for organizations. The extent of the impact of COVID-19 on the District’s operational and financial performance will depend on further developments, including the duration and spread of the outbreak and its impact on school districts and its residents, employees, and vendors, none of which can be predicted.

29

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Required Supplementary Information

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

2019

0.045249%

2018

0.045713%

2017

0.046315%

2016

0.044178%

2015

0.044391%

2014

0.043960%

2013

0.045931%

District's proportionate share of the net pension asset (liability)	$ 1,175,563	$	826,614	$	352,039     $	(473,160) $ 4,610,808     $ 4,896,911	$	302,339

District's covered payroll	$ 7,552,740     $ 7,446,153     $ 7,339,377     $ 6,817,044     $ 6,805,183     $ 6,580,736     $ 6,788,265

District's proportionate share of the net pension position as a percentage of its covered payroll

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

15.56%

102.17%

11.10%

101.53%

4.80%

100.66%

6.94%	67.75%

99.01%	110.46%

74.41%

111.48%

4.45%

100.70%

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

2.2% 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

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

Data prior to 2013 is unavailable.

30

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

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

For the years ended June 30,	2020	2019	2018	2017	2016	2015	2014	2013

Contractually required contribution	$	670,394     $	802,101     $	729,723     $	860,175     $	903,940     $     1,168,923     $     1,055,215     $	796,575

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

(670,394)
$	-     $

(802,101)
-     $

(729,723)
-     $

(860,175)
-     $

(903,940)	(1,168,923)	(1,055,215)
-     $	-     $	-     $

(796,575) -

District's covered payroll	$	7,566,524     $     7,552,740     $     7,446,153     $     7,339,377     $     6,817,044     $     6,805,183     $     6,580,736     $     6,788,265

Contributions as a percentage of covered payroll	8.86%	10.62%	9.80%	11.72%	13.26%	17.18%	16.03%	11.73%

Data prior to 2013 is unavailable.

31

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Required Supplementary Information

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

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 liability	$     (1,786,596) $	(481,904) $	(221,884) $	(645,081) $     (1,131,975) $	(224,368)

District's covered payroll	$	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 position as a percentage of its covered payroll

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

76.46%	21.51%

86.39%	96.27%

9.52%	27.94%	54.53%	11.71%

98.24%	94.70%	90.70%	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

2.5% 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

Data prior to 2015 is unavailable.

32

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

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

For the years ended June 30,	2020	2019	2018	2017	2016	2015	2014	2013

Contractually required contribution	$	320,694     $	313,085     $	338,197     $	346,515     $	409,084     $	365,998     $	417,270     $	347,923

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

(320,694)
$	-     $

(313,085)
-     $

(338,197)
-     $

(346,515)
-     $

(409,084)
-     $

(365,998)
-     $

(417,270)
-     $

(347,923) -

District's covered payroll	$ 2,336,602     $ 2,240,209     $ 2,331,766     $ 2,308,649     $ 2,075,859     $ 1,916,607     $ 1,974,974     $ 2,001,052

Contributions as a percentage of covered payroll	13.72%	13.98%	14.50%	15.01%	19.71%	19.10%	21.13%	17.39%

Data prior to 2013 is unavailable.

33

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

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

June 30,	2020	2019	2018

Total OPEB liability - beginning	$	2,094,217     $	1,598,229     $	1,588,609

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

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

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

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

Covered-employee payroll	$	8,980,099     $	8,980,099     $	9,483,905

Total OPEB liability as a percentage of covered-employee payroll	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 2019 represent a decrease 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.

The following is a summary of changes of assumptions:

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

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.

34

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, 2020

Original expenditure budget	$	23,545,342

Encumbrances carried over from prior year	298,141

Revised expenditure budget	$	23,843,483

* * *

Unrestricted Fund Balance

Assigned Unassigned

$	1,079,131 1,882,161 2,961,292

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

(79,131) (1,000,000)

Amount subject to 4% limit pursuant to Real Property Tax Law §1318	$	1,882,161

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

2021 expenditure budget (unaudited) 4% of budget

$       24,599,800 983,992

Actual percentage of 2021 expenditure budget	7.7%

35

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Supplementary Information

Schedule of Capital Project Expenditures

June 30, 2020

Project Title

2018 Capital Improvements Project 2019-2020 Capital Outlay Project Smart Schools Bond Act

Original Budget

18,452,902 100,000 1,060,464

Prior Years

5,111,537 -
-

Expenditures Current
Year

10,637,312 73,500 583,049

Total

15,748,849 73,500 583,049

Unexpended Balance

2,704,053 26,500 477,415

Total	$     19,613,366     $ 5,111,537     $ 11,293,861     $ 16,405,398     $	3,207,968

36

BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Supplementary Information

Schedule of Expenditures of Federal Awards

For the year ended June 30, 2020

CFDA Federal Grantor/Pass-Through Grantor/Program Title	Number

Grantor
Number	Expenditures

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

84.027	0032-20-0278	$ 84.173	0033-20-0278

262,124 12,706 274,830

Title I Grants to Local Educational Agencies	84.010 Career and Technical Education -- Basic Grants to States	84.048 Supporting Effective Instruction State Grants	84.367 Student Support and Academic Enrichment Program	84.424 Disaster Recovery Assistance for Education	84.938
Total U.S. Department of Education

U.S. Department of Agriculture:

Passed Through New York State Education Department: Child Nutrition Cluster:
School Breakfast Program	10.553 National School Lunch Program	10.555 Summer Food Service Program for Children	10.559 COVID-19 - Summer Food Service Program for Children	10.559

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

0021-20-1005 8039-20-0003 0147-20-1005 0204-20-1005 0084-19-1005

N/A N/A N/A N/A

N/A

195,032 376,624 31,060 17,066 396 895,008

35,069 109,334 13,332 140,452 298,187

26,707 324,894

Total Expenditures of Federal Awards	$	1,219,902

See accompanying notes.	37

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, 2020, the District used $26,707 worth of commodities under the National School Lunch Program (CFDA Number 10.555).

38

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 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, 2020, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated October 8, 2020.

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) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the 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 may exist that have not been identified.

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 determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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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.

October 8, 2020

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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

We have audited Byron-Bergen Central School District’s (the District) compliance with the types of compliance requirements described 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, 2020. The District’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditors’ Responsibility

Our responsibility is to express an opinion on compliance for each of the District’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; 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). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the District’s compliance.

Opinion on Each Major Federal Program

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, 2020.

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Report on Internal Control over Compliance

Management of the District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the District’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program 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 internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or 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 first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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

October 8, 2020

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BYRON-BERGEN CENTRAL SCHOOL DISTRICT

Schedule of Findings and Questioned Costs

For the year ended June 30, 2020

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	CFDA # Child Nutrition Cluster:
School Breakfast Program	10.553 National School Lunch Program	10.555 Summer Food Service Program for Children	10.559 COVID-19 - Summer Food Service Program
for Children	10.559

Amount

35,069 136,041 13,332

140,452 324,894

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.

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