clinton-glen gardner school board of education ... · .1

CLINTON-GLEN GARDNER SCHOOL

BOARD OF EDUCATION

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED JUNE 30, 2014

COMPREHENSIVE ANNUALFINANCIAL REPORT

OF THE

CLINTON-GLEN GARDNER SCHOOL BOARD OF EDUCATION

CLINTON, NEW JERSEY


Prepared by

CLINTON-GLEN GARDNER SCHOOL BOARD OF EDUCATION

DEPARTMENT OF ADMINISTRATION

CLINTON-GLEN GARDNER SCHOOL DISTRICTTABLE OF CONTENTS

PAGEINTRODUCTORY SECTION

Letter of Transmittal 2Organizational Chart 3Roster of Officials 4Consultants and Advisors 5

FINANCIAL SECTION

Independent Auditor's Report 7-9

Required Supplemental Information — Part IManagement's Discussion and Analysis 11

Basic Financial Statements

A. District-Wide Financial Statements:A-1 Statement of Net Position

14

A-2 Statement of Activities

15

B. Fund Financial StatementsGovernmental Funds:

B-1 Balance Sheet 17-18B-2 Statement of Revenues, Expenditures, and Changes in

Fund Balances 19-20B-3 Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Funds to theStatement of Activities 21

Proprietary Funds:B-4 Combining Statement of Fund Net Position 22B-5 Combining Statement of Revenues, Expenses, and Changes in

Fund Net Position 23B-6 Combining Statement of Cash Flows 24

Fiduciary Funds:B-7 Statement of Fiduciary Net Position 25B-8 Statement of Changes in Fiduciary Net Position 26

Notes to the Financial Statements 28-50

Required Supplementary Information — Part II

C. Budgetary Comparison SchedulesC-1 Budgetary Comparison Schedule-General Fund 53-58C-1A Combining Schedule of Revenues, Expenditures, and

Changes in Fund Balance-Budget and Actual N/AC-2 Budgetary Comparison Schedule-Special Revenue Fund 59

Notes to the Required Supplementary Information:C-3 Budget-to-GAAP Reconciliation 61


(Continued)

PAGEFINANCIAL SECTION (Continued)

Other Supplemental Information

School Level Schedule N/A

Special Revenue Fund:E-1 Combining Schedule of Revenue and Expenditures Special

Revenue Fund-Budgetary Basis 65

Capital Projects Fund:F-1 Summary Schedule of Revenues, Expenditures and Change

in Fund Balance 67F-la Schedule of Project Revenues, Expenditures, Project Balance

and Project Status Facilities Improvement Project 68

Proprietary FundsEnterprise Fund:

G-1 Combining Statement of Fund Net Position 70G-2 Combining Statement of Revenues, Expenses and Changes

in Fund Net Position 71G-3 Combining Statement of Cash Flows 72

H. Fiduciary Funds:H-1 Combining Statement of Fiduciary Fund Net Position 74H-2 Statement of Changes in Fiduciary Net Position 75H-3 Student Activity Agency Fund Statement of Changes in Assets

and Liabilities 76H-4 Payroll Agency Fund Statement of Changes in Assets

and Liabilities 77

I. Long-Term Debt:1-1 Schedule of Serial Bonds 791-2 Schedule of Obligations Under Capital Leases 801-3 Debt Service Fund Budgetary Comparison Schedule 81

STATISTICAL SECTION (Unaudited)

Table of Contents 83J-1 Net Position by Component 84J-2 Changes in Net Position 85-87J-3 Fund Balances, Governmental Funds 88J-4 Changes in Fund Balances, Governmental Funds 89J-5 Local Tax Levy by Constituent District 90J-6 General Fund-Other Local Revenues by Source 91J-7 Assessed Value and Actual Value of Taxable Property-

All Constituent Districts Combined 92J-8 Assessed Value and Actual Value oftoJ-9 Taxable Property by Constituent District 93-94


(Continued)

PAGESTATISTICAL SECTION (Unaudited)

(Continued)Table of Contents (Cont'd)

J-10 Direct and Overlapping Property Tax Ratesto

J-11 by Constituent DistrictJ-12 Principal Property Tax Payers

to

J-13 by Constituent DistrictJ-14 Property Tax Levies and Collections

to

J-15 by Constituent DistrictJ-16 Ratios of Outstanding Debt by TypeJ-17 Ratios of General Bonded Debt OutstandingJ-18 Direct and Overlapping Governmental

to

J-19 Activities Debt by Constituent DistrictJ-20 Legal Debt Margin InformationJ-21 Demographic and Economic StatisticsJ-22 Principal EmployersJ-23 Full Time Equivalent District Employees by Function/ProgramJ-24 Operating StatisticsJ-25 School Building InformationJ-26 Required MaintenanceJ-27 Insurance Schedule

SINGLE AUDIT SECTION

95-96

97-98

99-100101102

103-104105106107108109110111112

114-115116-118119120-121122-123124-126126

K-1 Independent Auditor's Report-Government Auditing StandardsK-2 Independent Auditor's Report-OMB Circular A-133K-3 Schedule of Expenditures of Federal Awards, Schedule AK-4 Schedule of Expenditures State Financial Assistance, Schedule BK-5 Notes to the Schedules of Awards and Financial AssistanceK-6 Schedule of Findings and Questioned CostsK-7 Summary Schedule of Prior Audit Findings

INTRODUCTORY SECTION

1

Clinton Public School10 School StreetClinton, New Jersey 08809Main Office: 908-735-8512Business Office: 908-735-4460Fax: 908-735-5895

Dr. Seth Cohen, Superintendent/[email protected]

Lisa 3. Craft, Business [email protected]

Jacqueline Evans-Turner, AssistantPrincipal/Curriculum Coordinator

iturnercosni.orqJenine Kastner, Supervisor of Special Services

.1<astnet

2.0

October 15, 2014

Honorable President andMembers of the Board of EducationClinton Public SchoolClinton, NJ 08809

Dear Board Members and Citizens of the District:

The Comprehensive Annual Financial Report of the Clinton-Glen Gardner SchoolDistrict for the fiscal year ending June 30, 2014, is hereby submitted. Responsibility forboth the accuracy of the data and completeness and fairness of the presentation,including all disclosures, rests with the management of the Board of Education (Board).To the best of our knowledge and belief, the data presented in this report is accurate inall material respects and is reported in a manner designed to present fairly the financialposition and results of operations of the various funds and account groups of theDistrict. All disclosures necessary to enable the reader to gain an understanding of theDistrict's financial activities have been included.

The Comprehensive Annual Financial Report (CAFR) is presented in four sections:introductory, financial, statistical and single audit. The introductory section includes thistransmittal letter, the District's organizational chart and a list of principal officials. Thefinancial section includes the general-purpose financial statements and schedules, aswell as the auditor's report thereon. The statistical section includes selected financialand demographic information, generally presented on a multi-year basis. The District isrequired to undergo an annual single audit in conformity with the provisions of theSingle Audit Act of 1996 the U.S. Office of Management and Budget Circular A-133,"Audits of States, Local Governments, and Non-Profit Organizations", and New JerseyOMB's Circular 04-04, "Single Audit Policy for Recipients of Federal Grants, State Grants,and State Aid". Information related to this single audit, including the auditor's report onthe internal control structure and compliance with applicable laws and regulations andfindings and recommendations, are included in the single audit section of this report.

1) REPORTING ENTITY AND ITS SERVICES :

The Clinton-Glen Gardner School District is an independent reporting entity within thecriteria adopted by the GASB as established by Statement No. 14. All funds and accountgroups of the District are included in this report. The Clinton-Glen Gardner Board ofEducation and one school constitute the District's reporting entity.

The District provides a full range of educational services appropriate to grade levels, 2.1

preschool through grade eight. These include regular, as well as, special educationprograms for disabled students. The District completed the 2013-2014 fiscal year withan enrollment of 475. The following depicts district enrollment variations over the past10 years:

Average Daily Enrollment

Fiscal Year: Student Enrollment: Percent Change:

2004-2005 572.6 0.4%

2005-2006 547.4 (4.4%)

2006-2007 555.8 1.5%

2007-2008 542.2 (2.4%)

2008-2009 533.6 (8.6%)

2009-2010 521.4 (2.3%)

2010-2011 508.9 (2.4%)

2011-2012 496.0 (2.5%)

2012-2013 480.0 (3.2%)

2013-2014 475.4 (0.9%)

ECONOMIC CONDITION AND OUTLOOK:

The communities of Clinton and Glen Gardner have seen a decline in studentenrollments in recent years. Although there has been no growth due to the nationaleconomic decline in the housing market, it appears that the Town of Clinton andBorough of Glen Gardner remain attractive to parents with school age children.

MAJOR INITIATIVES:

Clinton Public School has a long history of over 125 years of continuous operation.The school is located on a 9.6 acre site situated at the crest of the School Street hilljust east of Leigh Street in the Town of Clinton. The current brick structure was builtin September, 1923, and additions were constructed in 1963 and in 1969. A thirdaddition in 1995 included a full size gymnasium, art and computer rooms, a modernscience lab, several classrooms and offices. Another addition in 2000 accommodatedthe classrooms and students that had been displaced to substandard areas.

During its history, Clinton Public School has been recognized for its progressiveeducational programs. Offerings for children with special needs, opportunities for thegifted, a commitment to the arts, advanced technology opportunities, before school,and after school child care programs, and a world language program are but a few ofthe areas that have been provided for our students.

Our students have consistently scored above the State averages on standardizedtests and have achieved success with their high school education. Our staff has

demonstrated their dedication to our students in numerous ways. While a majority aftour staff has advanced degrees, they continue to search for innovative ways tochallenge their students.

INTERNAL ACCOUNTING CONTROLS:

Management of the District is responsible for establishing and maintaining aninternal control structure designed to ensure that the assets of the District areprotected from loss, theft or misuse and to ensure that adequate accounting data arecompiled to allow for the preparation of financial statements in conformity withgenerally accepted accounting principles (GAAP). The internal control structure isdesigned to provide reasonable, but not absolute, assurance that these objectives aremet. The concept of reasonable assurance recognizes that: (1) the cost of a controlshould not exceed the benefits likely to be derived; and (2) the evaluation of costsand benefits requires estimates and decisions by management.

As a recipient of federal and state financial assistance, the District also isresponsible for ensuring that an adequate internal control structure is in place toensure compliance with applicable laws and regulations related to those programs.This internal control structure is also subject to periodic evaluation by the Districtmanagement.

As part of the District's single audit described earlier, tests are made to determinethe adequacy of the internal control structure, including that portion related to federaland state financial assistance programs, as well as to determine that the District hascomplied with applicable laws and regulations.

BUDGETARY CONTROLS:

In addition to internal accounting controls, the District maintains budgetarycontrols. The objective of these budgetary controls is to ensure compliance with legalprovisions embodied in the annual appropriated budget. Annual appropriatedbudgets are adopted for the general fund, the special revenue fund, and the debtservice fund. Project-length budgets are approved for the capital improvementsaccounted for in the capital projects fund. The final budget amount as amended forthe fiscal year is reflected in the financial section.

An encumbrance accounting system is used to record outstanding purchasecommitments on a line item basis. Open encumbrances at year-end are either.cancelled or are included as appropriation of fund balance in the subsequent year.

6) ACCOUNTING SYSTEM AND REPORTS:

The District's accounting records reflect generally accepted accounting principles,as promulgated by the Governmental Accounting Standards Board (GASB). The

accounting system of the District is organized on the basis of funds and accounting 2.3groups. These funds and account groups are explained in "Notes to the FinancialStatements". Note 1.

DEBT ADMINISTRATION:

On March 11, 2014, the District successfully passed a Bond Referendum in theamount of $2,104,000. The bonds were issued in August, 2014, at an interest rate of2.1% payable over 10 years. The District received a AA Rating from Standard andPoor's Rating agency. The Debt from the 1996 referendum will be paid off as thesenew bonds come on. As a result of this timing, we are able to minimize the taximpact to the community. Projects included in the Referendum include replacementof the 1996 Roof, HVAC equipment and controls and installation of a new Fire AlarmSystem.

In June 1994, the District issued general obligation bonds in the amount of$4,985,000 at an interest rate of 5.625%. The proceeds of this bond issue wereplaced in the District's debt service fund for use to provide funds for a third additionand building improvements to the District's present buildings. In 2002, the Districtrefunded these bonds and issued $3,335,000 in new debt at an interest rate range of3.75-5.0%. The building renovations included installation of fire doors, a sprinklersystem, three new classrooms, a health suite and a child study team office, while theaddition contained four classrooms, plus computer and science rooms, a gymnasium,and a physical education office.

The most recent building project was completed in September, 2001. This projectwas financed from bonds totaling $2,070,000 at an interest rate range of 4.8-4.25%,a state grant of $1,580,000, and interest on invested principal. In January 2010, theDistrict refunded these bonds and issued $1,505,000 in new debt at an interest raterange of 3.0-4.0%. This project added a wing of 5 new classrooms, updated heatingand air conditioning, and renovated and expanded school office areas.

CASH MANAGEMENT:

The investment policy of the District is guided in large part by state statute asdetailed in "Notes to the Financial Statement", Notes 1 & 3. The District has adopteda cash management plan, which requires it to deposit funds in public depositoriesprotected from loss under the provisions of the Governmental Unit Deposit ProtectionAct ("GUDPA"). GUDPA was enacted in 1970 to protect Governmental Units from aloss of funds on deposit with a failed banking institution in New Jersey. The lawrequires governmental units to deposit public funds only in public depositories locatedin New Jersey, where the funds are secured in accordance with the Act.

RISK MANAGEMENT: 2.4The Board carries various forms of insurance, including but not limited to general

liability - $1,000,000 per occurrence plus $50,000 fire legal liability and $5,000medical expense, excess Umbrella Liability - $10,000,000.00 Automobile Liability,School Board Liability, Property and Contents, Systems Breakdown, WorkersCompensation, Supplemental Group Disability, Fidelity Bonds and Student AccidentInsurance.

OTHER INFORMATION:

Elimination of Glen-Gardner Non-OP On June 30, 2009, pursuant to P.L. 2007, Chapter 63, and A-4141, the State

eliminated thirteen Non-Operating Districts including Glen Gardner. TheSending/Receiving Agreement between Clinton and Glen Gardner was dissolved,and the two districts were merged as one entity. A report filed on June 30, 2009by Assistant Commissioner of Field Services, Dr. Gerald Vernotica provided thedetails of the merger.

Independent Audit

State Statutes require an annual audit by independent certified publicaccountants or registered municipal accountants. The Board selected theaccounting firm of William Colantano, CPA's. In addition to meeting therequirements set forth in state statutes, the audit also was designed to meet therequirements of the Single Audit Act of 1996, and the related OMB Circular A-133and New Jersey OMB's Circular 04-04. The auditor's report on the general-purpose financial statements and combining and individual fund statements andschedules is included in the financial section of this report. The auditor's reportsrelated specifically to the single audit are included in the single audit section ofthis report.

Awards The ExxonMobil Research and Engineering Company awarded sponsorship to

two educators from Clinton Public School to the 2013 Mickelson ExxonMobilTeachers Academy. The weeklong program was held in New Orleans, Louisianain July of 2013. The Academy's mission is "to conduct a professional developmentacademy for teachers of grades 3-5 that results in improved learning experiencesfor their students..." The focus of the training was in the areas of teaching scienceand math.

The ExxonMobil Research and Engineering Company awarded sponsorship to threeeducators from Clinton Public School to the 2012 Sally Ride Science Academy.The weeklong program was held in New York, New York in July 2012. The

Academy is a "train the trainer" program. Teachers were expected to return totheir districts and train their colleagues during the academic year using materials 2.5

and strategies from the Academy. The focus of the training was to infuse careereducation within the curriculum, especially in the areas of science, technology,engineering, and math.

In 2006, the Dodge Foundation awarded the school a $20,000 grant to bringthe acclaimed Schools Attuned program to Clinton Public School. Twenty teachersand administrators were trained in August, 2004 in how to better meet theindividual needs of students.

In 1995, Clinton Public School was selected as one of ten schools in NewJersey to be recognized as a "Star School". This honor was especially rewarding,as we were the only elementary school in the State to be so honored. Schools areselected for this award as a result of "their innovative teaching approaches, afaculty engaged in research, significant student achievement and a "cutting edge"awareness of education needs of the 21 st Century".

Technology

We at Clinton Public School believe that modern technology andtelecommunication are essential resources for the classroom. We provideresources to our students and classrooms that are not normally found within thewalls of a traditional school. Our board of education has made a commitment toinvest in personnel, equipment and training to implement this vision. The Boardbegan an initiative in 2013 to use IPADs in middle school classrooms.

12) ACKNOWLEDGEMENTS:

We would like to express our appreciation to the members of the Clinton-GlenGardner School Board for their concern in providing fiscal accountability to thecitizens and taxpayers of the school district and thereby contributing their full supportto the development and maintenance of our financial operation. The preparation ofthis report could not have been accomplished without the efficient and dedicatedservices of our financial and accounting staff.

Respectfully submitted,

(7(

Dr. Seth Cohen Lisa Craft

Superintendent/Principal Business Administrator

IchonlAdministrattir oar'

Secretaryenure onies

incipal/Curriculumcoordinator

Facilities Manager

Board of Education

Instructional Staff(certificated)

Network Adminstrator

Supet visor of Special'lei y e cs

School Office Staff

Child Study Team

Student Support Services

Special Education Aides

Superintendent/ Principal

Clinton-Glen Gardner Board of Education Organizational Chart

Cp4

BOARD OF EDUCATION

ROSTER OF OFFICIALSJUNE 30, 2014

Members of the Board of Education Year Term Expir(es)(ed)

Margaret Layding 2014 President (2014)

Robert Moul 2015 Vice-President (2014)

Patty Cooper 2014

Brendan Mclsaac 2015

Craig Sowell 2016

Robert Pyle 2013 President (2013)

OTHER OFFICIALS

Judith Burd Interim Supt/Principal (08/01-06/30/14)

Dr. Richard Katz Superintendent/Principal (07/01-07/31/14))

Lisa Craft Business Administrator

Kathleen Olsen Treasurer

Matthew Giacobbe Attorney

4

CLINTON-GLEN GARDNERBOARD OF EDUCATION

CONSULTANTS AND ADVISORSJUNE 30, 201-1

FINANCIAL

William M. Colantano, Jr. (Auditor)Certified Public Accountant

100 Route 31 NorthWashington, NJ 07882-1530

Phoenix Advisors, LLC (Financial Advisor)4 West Park Street

Bordentown, NJ 08505

ARCHITECT

Gianforcaro, Architects, Engineers & Planners555 East Main Street, Suite One

Chester, NJ 08930

ATTORNEY

Cleary, Giacobbe, Alfieri & Jacobs (General Counsel)5 Ravine Drive

Matawan, NJ 07747

Wilenz, Goldman & Spitzer (Bond Counsel)90 Woodbridge Center Drive

Woodbridge, NJ 07095

OFFICIAL DEPOSITORY

Peapack-Gladstone Bank189 Center Street

Clinton, NJ 08809

5

FINANCIAL SECTION

6

70eleaot- W. eateutteuitt, P-Pt. 7Prolie&tzeutae eepriztvratioo

Certified Public Accountant 100 Route 31 NorthPublic School Accountant Washington, NJ 07882 - 1530Registered Municipal Accountant Fax # (908) 689-8388

(908) 689-5002

INDEPENDENT AUDITOR'S REPORT

October 15, 2014

Honorable President andMembers of the Board of EducationClinton-Glen Gardner School DistrictCounty of Hunterdon, New Jersey

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, thebusiness-type activities, each major fund, and the aggregate remaining fund information of theBoard of Education of the Clinton-Glen Gardner School District (the District) in the County ofHunterdon, as of and for the year ended June 30, 2014, and the related notes to the financialstatements, which collectively comprise the Board's basic financial statements as listed in thetable of contents.

Management's Responsibility for the Financial Statements

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

Auditor's Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity's preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriate in the circumstances, but notfor 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 appropriatenessof accounting policies used and the reasonableness of significant accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements.

8

We believe the audit evidence we have obtained is sufficient and appropriate to provide a basisfor 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, the business-type activities, eachmajor fund, and the aggregate remaining fund information of the District, as of June 30, 2014,and the respective changes in financial position and, where applicable, cash flows thereof forthe year then ended in accordance with accounting principles generally accepted in the UnitedStates of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that themanagement's discussion and analysis and budgetary comparison information identified in thetable of contents be presented to supplement the basic financial statements. Such information,although not a part of the basic financial statements, is required by the GovernmentalAccounting Standards Board who considers it to be an essential part of financial reporting forplacing the basic financial statements in an appropriate operational, economic, or historicalcontext. We have applied certain limited procedures to the required supplementary informationin accordance with auditing standards generally accepted in the United States of America, whichconsisted of inquiries of management about the methods of preparing the information andcomparing the information for consistency with management's responses to our inquiries, thebasic financial statements, and other knowledge we obtained during our audit of the basicfinancial statements. We do not express an opinion or provide any assurance on theinformation because the limited procedures do not provide us with sufficient evidence to expressan opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the District's basic financial statements. The combining and individualnon-major fund financial statements and schedule of expenditures of federal awards, asrequired by Office of Management and Budget Circular A-133, Audits of States, LocalGovernments, and Non-Profit Organizations and the schedule of state financial assistance asrequired by NJ OMB 04-04 and the introductory and statistical sections are presented forpurposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual non-major fund financial statements, schedule of expenditures offederal awards, as required by Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, the schedule of and the schedule ofstate financial assistance as required by NJ OMB 04-04 is the responsibility of management andwas derived from and relates directly to the underlying accounting and other records used toprepare the basic financial statements.

Zateeetot 7P1.

9

Such information has been subjected to the auditing procedures applied in the audit of the basicfinancial statements and certain additional procedures, including comparing and reconcilingsuch information directly to the underlying accounting and other records used to prepare thebasic financial statements or to the basic financial statements themselves, and other additionalprocedures in accordance with auditing standards generally accepted in the United States ofAmerica.

In our opinion, the combining and individual non-major fund financial statements, schedule ofexpenditures of federal awards, as required by Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and the schedule ofstate financial assistance as required by NJ OMB 04-04 is fairly stated, in all material respects,in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subject to the auditing proceduresapplied in the audit of the basic financial statements, and accordingly, we do not express anopinion or provide any assurance on it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report datedOctober 15, 2014 on our consideration of the District's internal control over financial reportingand on our tests of its compliance with certain provisions of laws, regulations, contracts. andgrant agreements and other matters. The purpose of that report is to describe the scope of ourtesting of internal control over financial reporting and compliance and the results of that testing,and not to provide an opinion on internal control over financial reporting or on compliance. Thatreport is an integral part of an audit performed in accordance with Government AuditingStandards in considering the District's internal control over financial reporting and compliance.

11Z(1.-t4 e William M. Colantano, Jr.Public School AccountantNo. CS 0128

REQUIRED SUPPLEMENTARY INFORMATION-PART I

10

CLINTON-GLEN GARDNER SCHOOL DISTRICTClinton Public School

11.0

MANAGEMENT'S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2014

UNAUDITED

The discussion and analysis of the Clinton-Glen Gardner School District's financial performance providesan overall review of the school district's financial activities for the fiscal year ended June 30, 2014. Theintent of this discussion and analysis is to look at the school district's financial performance as a whole;readers should also review the notes to the basic financial statements and financial statements toenhance their understanding of the school district's financial performance

Financial Highlights

Pursuant to P.L. 2009, c.78, signed into law on June 30, 2009, the non-operating GlenGardner Borough School District was merged with the Town of Clinton School Districteffective July 1, 2009. A report was issued by the Assistant Commissioner that providedguidance on the implementation. The budgets were merged, and Surplus of $226,510 wasreturned to the Borough of Glen Gardner. Final accumulated tuition adjustments were settledthrough an agreement to reallocate taxes of $50,710 for 5 years to Clinton Town from theBorough of Glen Gardner utilizing the "Other" line on the Tax Certification. Equalized Valueswill be phased to 100% over a 5 year period for the purpose of calculating the taxapportionment among the two communities. The Clinton-Glen Gardner Board of Educationwas reduced to 5 members, eliminating the former Glen Gardner Representative position.Elections will now be held at large between the two communities, with no guaranteedrepresentation.

Key financial highlights for 2014 are as follows:

In total, net position increased $515,913 which represents a 9.20% increase from 2013.

General revenues accounted for $8,586,472 or 94.8% of all revenues. Program specificrevenues in the form of charges for services, operating grants and contributions, and capitalgrants and contributions accounted for $465,004 or 5.2% of total revenues of $9,051,476.

Total assets of governmental activities decreased by $39,479 as cash and cash equivalentsincreased by $114,250 receivables and other assets decreased by $100,175 and capitalassets decreased by $53,554.

The school district had $8,545,563 in expenses; only $465,004 of these expenses was offsetby program specific charges for services, grants or contributions. General revenues(primarily property taxes) of $8,082,369 were adequate to provide for these programs.

The General Fund had $8,082,369 in revenues and $8,062,363 in expenditures andtransfers. The General Fund's balance increased $20,006 over 2013.

Using this Comprehensive Annual Financial Report (CAFR)

This annual report consists of a series of financial statements and notes to those statements. Thesestatements are organized so the reader can understand the Clinton-Glen Gardner School District as afinancially whole operating entity. The statements then proceed to provide an increasingly detailed lookat specific financial activities.

The Statement of Net Position and Statement of Activities provide information about the activities of thewhole school district, presenting both an aggregate view of the school district's finances and a longer-term view of those finances. Fund financial statements provide the next level of detail. For governmentalfunds, these statements tell how services were financed in the short-term as well as what remains forfuture spending. In the case of the Clinton-Glen Gardner School District, the General Fund is by far themost significant fund.



UNAUDITED

Reporting the School District as a Whole

Statement of Net Position and the Statement of Activities

While this document contains the large number of funds used by the school district to provide programsand activities, the view of the school district as a whole looks at all financial transactions and asks thequestion, "How did we do financially during fiscal year 2014?" The Statement of Net Position and theStatement of Activities helps answer this question. These statements include all assets and liabilitiesusing the accrual basis of accounting similar to the accounting used by most private-sector companies.

This basis of accounting takes into account, all of the current year's revenues and expenses regardless ofwhen cash is received or paid.

These two statements report the school district's net position and changes in position. This change in netposition is important because it tells the reader that, for the school district as a whole, the financialpositions of the school district have improved or diminished. The causes of this change may be the resultof many factors, some financial, and some not. Non-financial factors include the school district's propertytax base, current laws in New Jersey restricting revenue growth, facility condition, required educationalprograms and other factors.

In the Statement of Net Position and the Statement of Activities, the school district is divided into twodistinct kinds of activities:

Governmental Activities — All of the school district's programs and services are reported hereincluding, but not limited to, instruction, support services, operation and maintenance of plantfacilities, pupil transportation and extracurricular activities.

Business-Type Activities — This service is provided on a charge for goods or services basis torecover all the expenses of the goods or services provided. The Food Service and ChildCare Enterprise Funds are reported as a business activity.

Reporting the School District's Most Significant Funds

Fund Financial Statements

The analysis of the school district's funds begins on page 17. Fund financial reports provide detailedinformation about the school district's major funds. The school district uses many funds to account for amultitude of financial transactions. However, these fund financial statements focus on the school district'smost significant funds. The school district's major governmental funds are the General Fund, SpecialRevenue Fund, Capital Projects Fund and Debt Service Fund.

Governmental Funds

The school district's activities are reported in governmental funds, which focus on how money flows intoand out of those funds and the balances left at year-end available for spending in the future years.These funds are reported using an accounting method called modified accrual accounting, whichmeasures cash and all other financial assets that can readily be converted to cash. The governmentalfund statements provide a detailed short-term view of the school district's general government operationsand the basic services it provides. Governmental fund information helps you determine whether there aremore or fewer financial resources that can be spent in the near future to finance educational programs.

The relationship (or differences) between governmental activities (reported in the Statement of NetPosition and the Statement of Activities) and governmental funds is reconciled in the financial statements.


11.2


UNAUDITED

Enterprise Fund

The enterprise fund uses the same basis of accounting as business-type activities; therefore, thesestatements are essentially the same.

The School District as a Whole

Recall that the Statement of Net Position provides the perspective of the school district as a whole.

Table 1 provides a summary of the school district's net position for 2014 with net position comparisons tofiscal year 2013.

Table 1Net Position

Assets

6/30/2014 6/30/2013Variance

Dollars

Current and other Assets $ 838,013 $ 818,614 $ 19,399 2.37%Capital Assets 6,839,661 6,896,962 (57,301) -0.83%

Total Assets 7,677,674 7,715,576 (37,902) -0.49%

LiabilitiesLong-term Liabilities 1,511,071 2,045,562 (534,491) -26.13%Other Liabilities 44,815 64,139 (19,324) -30.13%

Total Liabilities 1,555,886 2,109,701 (553,815) -26.25%

Net assetsInvested in Capital Assets, net of Debt 5,393,503 4,904,988 488,515 9.96%Restricted 577,993 397,671 180,322 45.34%Unrestricted 150,292 303,216 (152,924) -50.43%

Total Net Assets $ 6,121,788 $ 5,605,875 $ 515,913 9.20%

Total assets decreased by $37,902. Cash and cash equivalents increased by $115,589 receivables andother assets decreased by $96,190 and capital assets decreased by $57,301. Unrestricted net position,the part of net position that can be used to finance day to day activities without constraints established bygrants or legal requirements of the School District, decreased by $152,924 primarily due to transfers toreserve accounts of $135,000.


11.3


UNAUDITED

Table 2 shows the changes in net position from fiscal year 2014.

Table 2Changes in Net Position

Fiscal Year Ending Variance6/30/2014 6/30/2013 Dollars OA

RevenuesProgram revenues:Charges for services $ 256,503 $ 223,097 $ 33,406 14.97%Operating grants and contributions 208,501 218,182 (9,681) -4.44

Capital Grants 10,124 (10,124) 100General revenues:

Property taxes 6,714,064 6,587,841 126,223 1.92Unrestricted Grants 1,861,933 1,986,350 (124,417) -6.26Other 10,475 2,165 8,310 383.83

Total revenues 9,051,476 9,027,759 23,717 -0.26

Program ExpensesInstruction:

Regular 3,215,086 3,307,290 (92,204) -2.79Special 1,626,623 1,650,654 (24,031) -1.46Other 86,365 84,814 1,551 1.83

Support services:Tuition 266,197 244,655 21,542 8.81Student & Instructional staff 1,348,496 1,392,448 (43,952) -3.16General & Business Administration 501,436 569,239 (67,806) -11.91School Administration 299,817 273,660 26,157 9.56Maintenance 581,535 671,284 (89,749) -13.37Pupil Transportation 274,744 273,342 1,402 0.51Food Service 126,646 129,346 (2,700) 2.09Child Care Service 136,384 123,450 12,934 10.48Interest and Long Term Debt 82,234 102,179 (19,945) -19.52

Total expenses 8,545,563 8,822,361 (276,798) -3.14

Increase (Decrease) Before Special Item 505,913 205,398 300,515 146 31%

Special Item:Insurance Claim Proceeds for Storm Damage 55,266 (55,266)

Increase (Decrease) in Net Position $ 505,913 $ 260,664 $ 245,249 94.09%

Charges forService

30/0

Property Taxes74%

Federal/StateGrants

23%

Instruction58%

Interest10/0

Transportation30/0

Other Tuition

4%3%

StudentSupportServices

16%

Adminstrabon9°/0

Facility6%



UNAUDITED

Sources of Revenues for Fiscal Year 2014

Instruction comprised 58% of district expenses.

11.4

Expenses for Fiscal Year 2014


11.5


UNAUDITED

Governmental Activities

Property taxes made up 74.1% of revenues for governmental activities for the Clinton-Glen GardnerSchool District for fiscal year 2014.

Instruction comprises 57.6% of district expenses. Support services expenses make up 41.5% andinterest on long-term debt equals 0.9% of district expenses.

The Statement of Activities shows the cost of program services and the charges for services and grantsoffsetting those services. Table 3 shows the total cost of services and the net cost of services. That is, itidentifies the cost of these services supported by tax revenue and unrestricted State entitlements.

The Statement of Activities shows the cost of program services and the charges for services and grantsoffsetting those services. Table 3 shows the total cost of services and the net cost of services. The netcost shows the financial burden that was placed on the district's taxpayers by each of these functions.

Table 3Cost and Net Cost of Services

Total Net6/30/2014 6/30/2013 6/30/2014 6/30/2013

Instruction $ 4,928,074 $ 5,042,758 $ 4,873,767 $ 4,990,880Support services:Tuition 266,197 244,655 171,096 142,727Student & Instructional Services 1,348,496 1,392,448 1,300,813 1,329,436General & Business Admin 501,436 569,239 501,436 568,429School Administration 299,817 273,660 299,817 273,356Maintenance 581,535 671,284 573,490 670,342Pupil Transportation 274,744 273,342 274,744 273,342Food Service 126,646 129,346 966 6,899Child Care Service 136,384 123,450 (7,804) 13,368

Interest on Long-Term Debt 82,234 102,179 82,234 102,179

Total expenses $ 8,545,563 $ 8,822,361 $ 8,070,559 $ 8,370,958

Instruction expenses include activities directly dealing with the teaching of pupils and the interactionbetween teacher and student, including extracurricular activities.

Pupils and instructional related services include the activities involved with assisting staff with the contentand process of teaching to students, including curriculum and staff development.

General administration, school administration and business include expenses associated withadministrative and financial supervision of the district.

Operation and maintenance of facilities activities involve keeping the school grounds, buildings andequipment in an effective working condition.

Pupil transportation includes activities involved with the conveyance of students to and from school, aswell as to and from school activities, as provided by state law.


11.6


UNAUDITED

Interest and fiscal charges involve the transactions associated with the payment of interest and otherrelated charges to debt of the school district.

The dependence upon tax revenue is apparent. For all activities general revenue support is 94.9%. Thecommunities, as a whole, are the primary support for the Clinton-Glen Gardner School District.

The School District's Funds

Information about the school district's funds starts on page 17. These funds are accounted for using themodified accrual basis of accounting. All governmental funds (i.e., general fund, special revenue fund,capital projects and debt service fund presented in the fund-based statements) had total revenues of$8,791,561 and expenditures of $8,771,555. The net positive change in all fund balances for the yearwas most significant in the General Fund, an increase of $20,006.

General Fund Budgeting Highlights

The school district's budget is prepared according to New Jersey law, and is based on accounting forcertain transactions on a basis of modified accrual and encumbrance accounting. The most significantbudgeted fund is the General Fund.

The school district uses program based budgeting and the budgeting systems are designed to tightlycontrol total program budgets but provide flexibility for program management. During the course of thefiscal year 2014, the school district amended its General Fund budget as needed for tuition revenue andexpenditures of specific special education programs as allowed by law.

For the General Fund, budget revenue and other financing sources was $7,433,382, $53,922 overoriginal budgeted estimates of $7,379,450. This difference was due primarily to additional staterevenues, tuition and miscellaneous.

The General fund expenditures and other financing uses were exceeded by revenues and other financingsources of the School district by approximately $23,208.

Capital Assets

At the end of the fiscal year 2014, the school district had $6,839,661 invested in land, buildings, furnitureand equipment, and vehicles. Table 4 shows fiscal 2014 balances compared to 2013.

Table 4Capital Assets (Net of Depreciation) at June 30, 2014

6/30/2014 6/30/2013Variance

Dollars PercentLand and Improvements $ 320,100 $ 320,100 0.00Construction in Progress 19,084 $ 19,084 *Land Improvements 88,289 94,284 (5,995) (6.36)Building and Improvements 6,306,336 6,363,125 (56,789) (0.89)Furniture and Equipment 105,852 119,453 (13,601) (11.39)

Total $ 6,839,661 $ 6,896,962 $ (57,301) (0.83)

* = Undefined


11.7


UNAUDITED

Overall capital assets decreased $195,772 from fiscal year 2013 to fiscal year 2014. Increases in capitalassets of $195,772 were offset by depreciation expenses of $253,073 for the year. A complete fixedasset inventory report was completed for the entire district in 2012.

Debt Administration

At June 30, 2014, the school district had $1,511,071 as outstanding debt. Of this amount $64,913 is forcompensated absences, $41,158 for a lease, and the balance of $1,405,000 for bonds for schoolconstruction.

At June 30, 2014, the school district's overall legal debt margin was $16,530,684 and the unvoted debtmargin was $13,021,434. See footnote 5 for a more detailed discussion of the district's debt. Following isa listing of all bond issues for which the district is currently paying debt service.

Table 5Outstanding Bonded Debt at June 30, 2014

Variance2014 2013 Dollars

Issue:

Refunding Bonds of 2002 $ 335,000 $ 685,000 $ (350,000) -51.09%Refunding Bonds of 2009 1,070,000 1,185,000 (115,000) -9.07

Total $ 1,405,000 $ 1,870,000 $ (465,000) -24.87%

For the Future

It is the opinion of the Superintendent and Business Administrator that the Clinton-Glen Gardner SchoolDistrict is presently in good financial condition. However, future finances are not without challenges asThe state continues to impose unfunded mandates on schools while simultaneously restricting the abilityto fiscally manage school budgets.

The Town of Clinton and Borough of Glen Gardner are primarily residential communities, with very fewratables; thus the tax burden is focused on homeowners.

In conclusion, the Clinton-Glen Gardner School District has committed itself to an excellent system forfinancial planning, budgeting and internal financial controls. The school district plans to continue itssound fiscal management to meet the challenges of the future.

Contacting the School District's Financial Management

This financial report is designed to provide our citizens, taxpayers, investors and creditors with a generaloverview of the school district's finances and to show the school district's accountability for the money itreceives. If you have questions about this report or need additional information, please contact LisaCraft, School Business Administrator at the Clinton-Glen Gardner Board of Education, 10 School Street,Clinton, NJ 08809 or email at Icraft©cpsnj.org .

BASIC FINANCIAL STATEMENTS

12

DISTRICT-WIDE FINANCIAL STATEMENTS

The statement of net position and the statement of activities display informationabout the District. These statements include the financial activities of the overallDistrict, except for fiduciary activities. Eliminations have been made to minimizethe double counting of internal activities. These statements distinguish between

the governmental and business-type activities of the District.

13

14A-1

CLINTON-GLEN GARDNER SCHOOL DISTRICTSTATEMENT OF NET POSITION

JUNE 30, 2014

ASSETS

Govern-mental

Activities

Business-Type

Activities Total

Cash & Cash Equivalents $ 136,621 $ 65,141 $ 201,762Receivables, Net 31,614 6,300 37,914Interfund Receivable 13,869 2,769 16,638Inventory 3,706 3,706Restricted Assets:

Capital Reserve Account-Cash 402,897 402,897Maintenance Reserve Account-Cash 100,000 100,000Emergency Reserve Account-Cash 75,096 75,096

Capital Assets (Note 4):Land 320,100 320,100Capital Assets Not Being Depreciated 19,084 19,084Other Capital Assets, Net of Depreciation 6,492,698 7,779 6,500,477

Total Assets 7,591,979 85,695 7,677,674

LIABILITIES

Accounts Payable 1,016 1,016Accrued Interest 22,026 22,026Other Current Liabilities 12,305 12,305Unearned Revenue 7,987 1,481 9,468Long-Term Liabilities (Note 5):

Due Within One Year 491,158 491,158Due Beyond One Year 955,000 955,000Compensated Absences Payable 64,913 64,913

Total Liabilities 1,554,405 1,481 1,555,886

NET POSITION

Net Investment in Capital Assets 5,385,724 7,779 5,393,503Restricted For:

Capital Reserve 402,897 402,897Maintenance Reserve 100,000 100,000Emergency Reserve 75,096 75,096

Unrestricted 73,857 76,435 150,292

TOTAL NET POSITION $ 6,037,574 $ 84,214 $ 6,121,788

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

A-2CLINTON-GLEN GARDNER SCHOOL DISTRICT

STATEMENT OF ACTIVITIESFOR THE FISCAL YEAR ENDED JUNE 30, 2014

Functions/ProgramsDirect

Expenses

IndirectExpensesAllocation

Program RevenuesNet (Expense)

ChangesRevenue &

in Net PositionBusiness-

TypesActivities Total

OperatingCharges for Grants &Services Contribution

CapitalGrants & Governmental

Contribution Activities Government Activities:

Instruction:Regular $ 2,241,431 $ 973,655 $ 23,072 $ 9,190 $ (3,182,824) $ (3,182,824)Special Education 891,693 426,061 (1,317,754) (1,317,754)Other Special Education 219,468 89,401 22,045 (286,824) (286,824)Other Instruction 82,361 4,004 (86,365) (86,365)

Support Services:Tuition 266,197 95,101 (171,096) (171,096)Students and Instruction Related Services 988,914 359,582 3,490 44,193 (1,300,813) (1,300,813)General and Business Administrative Services 407,555 93,881 (501,436) (501,436)School Administrative Services 187,559 112,258 (299,817) (299,817)Plant Operations and Maintenance 510,361 71,174 8,045 (573,490) (573,490)Pupil Transportation 274,744 (274,744) (274,744)Interest on Long-Term Debt 82,234 (82,234) (82,234)

Total Government Activities 6,152,517 2,130,016 34,607 170,529 $ (8,077,397) $ (8,077,397)Business-Type Activities:

Food Service 126,646 87,708 37,972 (966) (966)Other-Child Care 126,384 134,188 7,804 7,804

Total Business-Type Activities 253,030 221,896 37,972 6,838 6,838Total Primary Government $ 6,405,547 $ 2,130,016 $ 256,503 $ 208,501 $ (8,077,397) 6,838 (8,070,559)

6,176,403Property Taxes Levied for General Purposes 6,176,403Property Taxes Levied for Debt Service 537,661 537,661Federal & State Aid not Restricted 1,861,933 1,861,933Investment Earnings 1,390 48 1,438Miscellaneous Income 9,037 9,037Total General Revenues and Special Items 8,586,424 48 8,586,472Change in Net Position 509,027 6,886 515,913Net Position-Beginning 5,528,547 77,328 5,605,875Net Position-Ending $ 6,037,574 $ 84,214 $ 6,121,788


(71

FUND FINANCIAL STATEMENTS

The individual fund statements and schedules present more detailed informationfor the individual fund in a format that segregates information by fund type.

16

B-11 of 2

CLINTON-GLEN GARDNER SCHOOL DISTRICTBALANCE SHEET

GOVERNMENTAL FUNDSJUNE 30, 2014

ASSETS

GeneralFund

SpecialRevenue

Fund

CapitalProjects

Fund

TotalDebt Govern-

Service mentalFund Funds

Cash & Cash Equivalents $ 136,621 $ 136,621Receivables from Other Governments:

State. 22,546 22,546Federal 9,068 9,068

Due from Other Funds 19,159 19,159Restricted Cash & Equivalents 577,993 577,993

TOTAL ASSETS $ 756,319 $ 9,068 $ - $ - $ 765,387

LIABILITIES AND FUND BALANCES

Liabilities:Accounts Payable $ 1,016 $ 1,016Due to Other Funds 2,769 $ 2,521 5,290Other Current Liabilities 12,305 12,305Unearned Revenue 1,440 6,547 7,987

Total Liabilities 17,530 9,068 $ - $ - 26,598


B-12 of 2

CLINTON-GLEN GARDNER SCHOOL DISTRICTBALANCE SHEET

GOVERNMENTAL FUNDSJUNE 30, 2014

(Continued)

LIABILITIES AND FUND BALANCES (Cont'd)Fund Balances:

Committed Fund Balance:

General

Fund

SpecialRevenue

Fund

CapitalProjects

Fund

TotalDebt Govern-

Service mental

Fund Funds

Capital Reserve Account $ 402,897 $ 402,897Maintenance Reserve Account 100,000 100,000Emergency Reserve Account 75,096 75,096

Assigned Fund Balance:Year-End Encumbrances 29,479 29,479

Unassigned Fund Balance 131,317 131,317Total Fund Balances 738,789 $ 738,789

TOTAL LIABILITIES AND FUND BALANCES $ 756,319 $ 9,068 $ - $

Amounts Reported for Governmental Activities in the Statement of Net Assets(A-1) are Different Because:

Capital assets used in government activities are not financial resources & thereforeare not reported in the funds. The cost of the assets is $ 11,503,146and the accumulated depreciation is 4,671,264

6,831,882Long-term liabilities, Including bonds payable, are not due & payable in the current period& therefore are not reported as liabilities in the funds (1,511,071)

Interest on long-term debt is not accrued in governmental funds, but rather is recognized asan expenditure when due. (22,026)

Total Net Assets of Governmental Activities $ 6,037,574


OD

B-2

1 of 2CLINTON-GLEN GARDNER SCHOOL DISTRICT

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDS


REVENUESLocal Sources:

GeneralFund

SpecialRevenue

Fund

Capital DebtProjects Service

Fund Fund

TotalGovern-mentalFunds

Local Tax Levy $ 6,176,403 $ 537,661 $ 6,714,064Tuition Charges:

Individuals 23,072 23,072Interest on Investments 1,390 1,390Miscellaneous 20,573 $ 10,030 30,603

Total 6,221,438 10,030 $ 537,661 6,769,129

State Sources 1,860,931 1,002 1,861,933Federal Sources 160,499 160,499Total Revenues 8,082,369 170,529 538,663 8,791,561

EXPENDITURESCurrent:

Instructional:Regular Instruction 2,315,569 9,190 2,324,759Special Education Instruction 891,693 891,693Other Special Instruction 197,423 22,045 219,468Other Instruction 82,361 82,361

Support Service & Undistributed Costs:Tuition 171,096 95,101 266,197Student & Instruction Related Services 944,721 44,193 988,914General & Business Administrative Services 407,555 407,555School Administrative Services 187,559 187,559Plant Operations & Maintenance 510,361 510,361Pupil Transportation 274,744 274,744Unallocated Benefits 1,869,366 1,869,366


CD

B-22 of 2

CLINTON-GLEN GARDNER SCHOOL DISTRICTSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDSFOR THE FISCAL YEAR ENDED JUNE 30, 2014

(Continued)

EXPENDITURES (Cont'd)

GeneralFund

SpecialRevenue

Fund

Capital DebtProjects Service

Fund Fund

TotalGovern-mentalFunds

Capital Outlay $ 195,772 $ 195,772Debt Service:

Principal $ 465,000 465,000Interest & Other Charges 14,143 73,663 87,806

Total Expenditures 8,062,363 $ 170,529 $ - 538,663 8,771,555

Net Change in Fund Balance 20,006 - 20,006

Fund Balances, July 1 718,783 718,783

Fund Balances, June 30 $ 738,789 $ $ 738,789


O

21

B-3CLINTON-GLEN GARDNER SCHOOL DISTRICT

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF ACTIVITIESFOR THE FISCAL YEAR ENDED JUNE 30, 2014

Total Net Changes in Fund Balances-Governmental Fund (from B-2) $ 20,006

Amounts Reported for Governmental Activities in the Statement ofActivities (A-2) are Different Because:

Capital outlays are reported in governmental funds as expenditures. However,in the statement of activities, the cost of those assets is allocated over theirestimated useful lives as depreciation expense. This is the amount by whichdepreciation exceeds capital outlays in the period:

Capital OutlaysDepreciation Expense

$ 185,972(239,526)

(53,554)Repayment of debt principal and capital leases are expendi-

tures in the governmental funds, but the repayment reduceslong-term liabilities in the statement of net assets and arenot reported in the statement of activities:

Bond Principal PaymentsCapital Lease Payments

465,00080,816

545,816In the statement of activities, interest on long-term debt is

accrued regardless of when due. In the governmental fundsinterest is reported when due. The accrued interest is areconciling item.

In the statement of activities, compensated absences & early retirementbenefits are measured by the amounts earned during the year. Inthe governmental funds, however, expenditures for these items are reportedin the amount of financial resources used (paid). When the earnedamount exceeds the paid amount, the difference is a reduction inthe reconciliation; when the paid amount exceeds the earned amount, thedifference is an addition to the reconciliation.

8,084

(11,325)

Change in Net Position of Governmental Activities $ 509,027


22B-4

CLINTON-GLEN GARDNER SCHOOL DISTRICTCOMBINING STATEMENT OF FUND NET POSITION

PROPRIETARY FUNDSJUNE 30, 2014

Current Assets:

FoodServices

Child CareProgram Total

Cash & Cash Equivalents $ 37,322 $ 27,819 $ 65,141Accounts Receivable:

Intergovernmental-Federal 5,947 5,947Intergovernmental-State 353 353Due From Other Funds 2,769 2,769

Inventories 3,706 3,706Total Current Assets 50,097 27,819 77,916

Fixed Assets:Capital Assets 97,416 97,416Accumulated Depreciation 89,637 89,637

Total Fixed Assets 7,779 - 7,779

Total Assets 57,876 27,819 85,695

LIABILITIES

Current Liabilities:Unearned Revenue 1,481 1,481

Total Current Liabilities 1,481 1,481

NET POSITION

Net Investment in Capital Assets 7,779 7,779Unrestricted 48,616 27,819 76,435

TOTAL NET POSITION $ 56,395 $ 27,819 $ 84,214


23

B-5CLINTON-GLEN GARDNER SCHOOL DISTRICT

COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITIONPROPRIETARY FUNDS


Operating Revenues:Charges for Services:

FoodServices

Child CareProgram Total

Daily Sales-Reimbursable Programs $ 56,360 $ 56,360Daily Sales-Nonreimbursable Programs 31,348 31,348Child Care Revenues $ 134,188 134,188

Total Operating Revenues 87,708 134,188 221,896

Operating Expenses:Costs of Sales 56,408 56,408Commodity Food Costs 7,642 7,642Salaries 32,481 76,459 108,940Employee Benefits 4,937 26,822 31,759Insurance 3,316 3,316Management Fees 7,546 7,546Other Purchased Services 7,074 19,008 26,082General Supplies 3,495 4,095 7,590Depreciation 3,747 3,747

Total Operating Expenses 126,646 126,384 253,030

Operating Income (Loss) (38,938) 7,804 (31,134)

Nonoperating Revenues (Expenses):State Sources:

State School Lunch Program 1,348 1,348Federal Sources:

National School Lunch Program:Cash Assistance 28,982 28,982Non-Cash Assistance (Commodities) 7,642 7,642

Interest Earned on Investments 48 48Total Nonoperating Revenues (Expenses) 38,020 38,020

Change in Net Position (918) 7,804 6,886

Total Net Position, Beginning 57,313 20,015 77,328

Total Net Position, Ending $ 56,395 $ 27,819 $ 84,214


24B-6

CLINTON-GLEN GARDNER SCHOOL DISTRICTCOMBINING STATEMENT OF CASH FLOWS

PROPRIETARY FUNDSFOR THE FISCAL YEAR ENDED JUNE 30, 2014

Cash Flows from Operating Activities:

FoodServices

ChildCare Program Total

Receipts from Customers $ 87,708 $ 129,009 $ 216,717Payments to Employees (76,459) (76,459)Payments for Employee Benefits (26,822) (26,822)Payments to Food Services Management Co (106,932) (106,932)Payments to Vendors (8,514) (23,103) (31,617)

Net Cash Provided by (Used For) OperatingActivities (27,738) 2,625 (25,113)

Cash Flows from Noncapital Financing Activities:State Sources 1,289 1,289Federal Sources 27,884 27,884Interfund Activity (2,769) (2,769)

Net Cash Provided by (Used For) NoncapitalFinancing Activities 26,404 26,404

Cash Flows from Investing Activities:Interest Earned on Investments 48 48

Net Cash Provided by Investing Activities 48 48

Net Increase (Decrease) in Cash and CashEquivalents (1,286) 2,625 1,339

Cash and Cash Equivalents, July 1, 2013 38,608 25,194 63,802

Cash and Cash Equivalents, June 30, 2014 $ 37,322 $ 27,819 $ 65,141

Reconciliation of Operating Income (Loss) to NetCash Provided by (Used For) Operating Activities:

Operating Income (Loss) $ (38,938) $ 7,804 $ (31,134)Adjustments to Reconcile Operating Income (Loss)to Net Cash Provided by (Used For) Operating Activities:

Depreciation 3,747 3,747Federal Food Donation Program 7,512 7,512(Increase) Decrease in Inventory (59) (59)Increase (Decrease) in Deferred Revenue (5,179) (5,179)

Net Cash Provided by (Used For) Operating Activities $ (27,738) $ 2,625 $ (25,113)


25B-7

CLINTON-GLEN GARDNER SCHOOL DISTRICTSTATEMENT OF FIDUCIARY NET POSITION

JUNE 30, 2014

ASSETS

UnemploymentCompensation

Fund

StudentActivityAgency

Fund

PayrollAgency

Fund

Cash & Cash Equivalents $ 57,908 $ 59,043 $ 4,589

TOTAL ASSETS 57,908 $ 59,043 $ 4,589

LIABILITIES

Accounts Payable 4,010Due to Other Funds 12,638 $ 4,000Due to Student Groups 46,405Payroll Deductions & Withholdings 589

TOTAL LIABILITIES 4,010 $ 59,043 $ 4,589

NET POSITION $ 53,898


26B-8

CLINTON-GLEN GARDNER SCHOOL DISTRICTSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION



FundADDITIONS

Contributions:Plan Members $ 7,989

Investment Earnings-Interest 67Total Additions 8,056

DEDUCTIONS

Unemployment Claims 28,168 Total Deductions 28,168

Change in Net Position (20,112)

Net Position, Beginning of the Year 74,010

Net Position, End of the Year $ 53,898


NOTES TO FINANCIAL STATEMENTS

27

28CLINTON-GLEN GARDNER SCHOOL DISTRICT

NOTES TO THE FINANCIAL STATEMENTSJUNE 30, 2014

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Board of Education (Board) of the Clinton-Glen Gardner SchoolDistrict (District) have been prepared in conformity with accounting principles generally acceptedin the United States of America (GAAP) as applied to local governmental units. TheGovernmental Accounting Standards Board (GASB) is the accepted standard-setting body forestablishing governmental accounting and financial reporting principles. The more significantaccounting policies of the District are described below.

The basic financial statements include:

A Management's Discussion and Analysis (MD&A) providing an analysis of the Districts over-all financial position and results of operations.

Basic financial statements prepared using full-accrual accounting for all of the District'sactivities.

A. Reporting Entity

The District is a Type II district located in the County of Hunterdon, State of New Jersey. As aType II district, the School District functions independently through a Board of Education. TheBoard is comprised of five members elected to three-year-terms. The purpose of the district is toeducate students in Grades K-8. The District serves the communities of the Town of Clinton andthe Borough of Glen Gardner. The District had an approximate enrollment at June 30, 2014 of478 students.

The primary criterion for including activities within the District's reporting entity as set forth inSection 2100 of the GASB Codification of Governmental Accounting and Financial ReportingStandards, is whether:

The organization is legally separate (can sue or be sued in their own name.)

The District holds the corporate powers of the organization.

The District appoints a voting majority of the organization's board.

The District is able to impose its will on the organization.

The organization has the potential to impose a financial benefit/ burden on the District.

There is a fiscal dependency by the organization on the District.

Based on the aforementioned criteria, the District has no component units.



(Continued)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)

Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement ofchanges in net position) report information on all of the nonfiduciary activities of the District. Forthe most part, the effect of interfund activity has been removed from these statements.

The statement of activities demonstrates the degree to which the direct expenses of a givenprogram are offset by program revenues. Direct expenses are those that are clearly identifiablewith a specific program. Program revenues include 1) charges to students or applicants whopurchase, use, or directly benefit from goods, services, or privileges provided by a given functionand 2) grants and contributions that are restricted to meeting the operational or capitalrequirements of a particular function.

Taxes and other items not properly included among program revenues are reported instead asgeneral revenues.

Separate financial statements are provided for governmental funds, proprietary funds, andfiduciary funds, even though the latter are excluded from the government-wide financialstatements. The District has elected to treat all of its governmental funds as major funds and theyare reported as separate columns in the fund financial statements.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measure-ment focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fundfinancial statements. Revenues are recorded when earned and expenses are recorded when aliability is incurred, regardless of the timing of related cash flows. Property taxes are recognizedas revenues in the year for which they are levied. Grants and similar items are recognized asrevenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognized assoon as they are both measurable and available. Revenues are considered to be available whenthey are collectible within the current period or soon enough thereafter to pay liabilities of thecurrent period. For this purpose, the District considers revenues to be available if they arecollected within 60 days of the end of the current fiscal period. Expenditures generally arerecorded when a liability is incurred, as under accrual accounting. However, debt service expendi-tures, as well as expenditures related to compensated absences, early retirement, arbitragerebates, and post employment healthcare benefits, are recorded only when payment is due.

Property taxes, tuition and interest associated with the current fiscal period are all considered tobe susceptible to accrual and so have been recognized as revenues of the current fiscal period.As under New Jersey State Statute, a municipality is required to remit to its school district theentire property tax balance, in the amount voted upon or certified prior to the end of the schoolyear. The District records the entire approved tax levy as revenue (accrued) at the start of thefiscal year, since the revenue is both measurable and available. The District is entitled to receivemoneys under the established payment schedule and the unpaid amount is considered to be anaccounts receivable. All other revenue items are considered to be measurable and available onlywhen the District receives cash.



(Continued)


C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Cont'd)

Amounts reported as program revenues include 1) charges to students for tuition, fees, rental,material, supplies, or services, provided, 2) operating grants and contributions, and 3) capitalgrants and contributions. Internally dedicated resources are reported as general revenues ratherthan as program revenues. Likewise, general revenues include all property taxes, andunrestricted state aids.

Proprietary funds distinguish operating revenues and expenses from nonoperating items.Operating revenues and expenses generally result from providing services and producing anddelivering goods in connection with a proprietary fund's principal ongoing operations.

When both restricted and unrestricted resources are available for use, it is the District's policy touse restricted resources first, then unrestricted, as they are needed.

The District reports the following major governmental funds:

General Fund - The General Fund is the general operating fund of the District and is used toaccount for all financial resources except those required to be accounted for in another fund.Included are certain expenditures for vehicles and movable instructional or noninstructionalequipment, which are classified in the Capital Outlay sub fund.

As required by the New Jersey State Department of Education, the District includes budgetedCapital Outlay in this fund. Generally accepted accounting principles as they pertain togovernmental entities state that General Fund resources may be used to directly financecapital outlays for long-lived improvements as long as the resources in such cases arederived exclusively from unrestricted revenues.

Resources for budgeted capital outlay purposes are normally derived from State of NewJersey aid, district taxes and appropriated fund balance. Expenditures are those that resultin the acquisition of or additions to fixed assets for land, existing buildings, improvements ofgrounds, construction of buildings, additions to or remodeling of buildings and the purchaseof built-in equipment. These resources can be transferred from and to Current Expense byboard resolution.

Special Revenue Fund - The District accounts for the proceeds of specific revenue sourcesfrom State and Federal Government (other than major capital projects, Debt Service or theEnterprise Funds) and local appropriations that are legally restricted to expenditures forspecified purposes in the Special Revenue Fund.

Capital Projects Fund - The Capital Projects Fund is used to account for all financialresources to be used for the acquisition or construction of major capital facilities (other thanthose financed by Proprietary Funds). The financial resources are derived from temporarynotes or serial bonds that are specifically authorized by the voters as a separate question onthe ballot either during the annual election or at a special election.

Debt Service Fund - The Debt Service Fund is used to account for the accumulation ofresources for, and the payment of principal and interest on bonds issued to finance majorproperty acquisition, construction and improvement programs.



(Continued)


C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Cont'd)

Additionally, the District reports the following fund types:

Proprietary Fund Types

Proprietary Fund - The focus of Proprietary Fund measurement is upon determination of netincome, financial position and cash flows. The generally accepted accounting principlesapplicable are those similar to businesses in the private sector. The following is a descriptionof the Proprietary Funds of the District:

Enterprise Fund - The Enterprise Fund is utilized to account for operations that are financedand operated in a manner similar to private business enterprises. The stated intent is thatthe cost (i.e. expenses including depreciation and indirect costs) of providing goods orservices to the students on a continuing basis are financed or recovered primarily throughuser charges; or, where the District has decided that periodic determination of revenuesearned, expenses incurred, and/or net income is appropriate for capital maintenance, publicpolicy, management control, accountability or other purposes.

The District's Enterprise Fund is comprised of the Food Service Fund and Child Care Fund.

All proprietary funds are accounted for on a current financial resources measurement focus.This means that all assets and liabilities, whether current or noncurrent, associated with theiractivity are included on their balance sheets. Their reported fund equity (total net position) issegregated into contributed capital and unreserved retained earnings, if applicable.Proprietary fund type operating statements present increases (revenues) and decreases(expenses) in total net position.

Depreciation of all exhaustive fixed assets used by proprietary funds is charged as anexpense against their operations. Accumulated depreciation is reported on proprietary fundbalance sheets. Depreciation has been provided over the estimated useful lives using thestraight-line method. The estimated useful lives are as follows:

Equipment 12 Years

Light Trucks & Vehicles 4 Years

Heavy Trucks & Vehicles 6 Years



(Continued)


Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Cont'd)

Fiduciary Fund Types

Trust and Agency Funds - The Trust and Agency Funds are used to account for assets heldby the District in a trustee capacity or as an agent for individuals, private organizations, othergovernment's and/ or other funds. Agency funds are custodial in nature and do not involvemeasurement of results of operations. The following is a description of the Trust and AgencyFunds of the District.

Unemployment Compensation Trust Fund — This fund is used to account for the portion ofemployee deductions for unemployment compensation required to be deposited andaccumulated for future unemployment claims under the "Benefit Reimbursement Method."

Student Activities Agency Fund — This fund is used to account for funds derived from athleticevents or other activities of pupil organizations and accumulated for payment of student groupactivities.

Payroll Agency Fund — This fund accounts for the withholding and remittance of employeesalary deductions.

Budgets/Budgetary Control

Annual appropriated budgets are prepared in the spring of each year for the General, SpecialRevenue, and Debt Service Funds. The budgets are submitted to the county office and, ifnecessary are voted upon at the annual school election in November. Budgets are prepared usingthe modified accrual basis of accounting. The legal level of budgetary control is established at lineitem accounts within each fund. Line item accounts are defined as the lowest (most specific) levelof detail as established pursuant to the minimum chart of accounts referenced in NJAC 6:20-2A.2(m)1. All budget amendments must be approved by School Board resolution. Budgetamendments during the year ended June 30, 2014 were insignificant.

Formal budgetary integration into the accounting system is employed as a management controldevice during the year. For Governmental Funds there are no substantial differences between thebudgetary basis of accounting and generally accepted accounting principles with the exception ofthe legally mandated revenue recognition of the last state aid payment for budgetary purposes onlyand the special revenue fund as noted below. Encumbrance accounting is also employed as anextension of formal budgetary integration in the Governmental Fund Types. Unencumberedappropriations lapse at fiscal year end.



(Continued)


Budgets/Budgetary Control (Cont'd)

The accounting records of the Special Revenue Fund are maintained on the grant accountingbudgetary basis. The grant accounting budgetary basis differs from GAAP in that the grantaccounting budgetary basis recognizes encumbrances as expenditures and also recognizes therelated revenues, whereas the GAAP basis does not. Sufficient supplemental records aremaintained to allow for the presentation of GAAP basis financial reports.

Encumbrances

Under encumbrance accounting purchase orders, contracts and other commitments for theexpenditure of resources are recorded to reserve a portion of the applicable appropriation. Openencumbrances in Governmental Funds other than the Special Revenue Fund are reported asreservations of fund balances at fiscal year end as they do not constitute expenditures or liabilitiesbut rather commitments related to unperformed contracts for goods and services.

Open encumbrances in the Special Revenue Fund for which the District has received advancesare reflected in the balance sheet as unearned revenues at fiscal year end.

The encumbered appropriation authority carries over into the next fiscal year. An entry will bemade at the beginning of the next fiscal year to increase the appropriation reflected in the certifiedbudget by the outstanding encumbrance amount as of the current fiscal year end.

F. Tuition Receivable

Tuition charges were established by the Board of Education based on estimated costs. Thecharges are subject to adjustment when the final costs have been determined.

Tuition Payable

Tuition charges for the fiscal years 2013-2014 and 2012-2013 were based on rates established bythe receiving district. These rates are subject to change when the actual costs have beendetermined.

Short-Term Interfund Receivables/Payables

Short-Term Interfund receivables/payables represents amounts that are owed, other than chargesfor goods or services rendered to/from a particular fund in the District and that are due within oneyear.

I. Inventories and Prepaid Items

Inventories and prepaid items, which benefit future periods, other than those recorded in theEnterprise Fund are recorded as an expenditure during the year of purchase.

Enterprise Fund inventories are valued at cost, which approximates market, using the first-in-first-out (FIFO) method. The commodities inventory value at balance sheet date is reported as aunearned revenue as title does not pass to the school district until the commodities are used.Prepaid items in the Enterprise Fund represent payments made to vendors for services that willbenefit periods beyond June 30, 2014.



(Continued)


Capital Assets

Capital assets, which include land, land improvements, buildings and improvements, vehicles andfurniture and equipment, are reported in the government-wide financial statements. The Districtdefines capital assets as assets with an initial, individual cost of more than $2,000 and anestimated useful life in excess of one year. Such assets are recorded at historical cost orestimated historical cost if purchased or constructed. Donated capital assets are recorded atestimated fair value at the date of donation.

The cost of normal maintenance and repairs that do not add to the value of the asset or materiallyextend assets lives are not capitalized.

All reported capital assets, except for land and construction in progress, of the District aredepreciated using the straight-line method over the following estimated lives:

Assets YearsBuildings 50Building Improvements & Portable Classroom 50Land Improvements 20Furniture 20Maintenance Equipment 15Musical Instruments 10Athletic Equipment 10Audio Visual Equipment 10Office Equipment 5 to 10Computer Equipment 5 to 10

Compensated Absences

The District accounts for compensated absences (e.g., unused vacation and sick leave) asdirected by Governmental Accounting Standards Board statement number 16 (GASB 16),"Accounting for Compensated Absences." A liability for compensated absences attributable toservices already rendered and not contingent on a specific event that is outside the control of theemployer and employee is accrued as employees earn the rights to the benefits.

District employees are granted varying amounts of vacation and sick leave in accordance with theDistrict's personnel policy. The District's policy permits employees to accumulate unused sickleave and carry forward the full amount to subsequent years. Upon retirement employees shall bepaid by the District for the unused sick leave in accordance with the Districts' agreements with thevarious employee unions.

The liability for compensated absences was accrued using the vesting method, whereby theliability is calculated by vesting balances as of the balance sheet date for which a payment isprobable. Salary related payments for the employer's share of social security and medicare taxesare included.

For the government-wide statements, the current portion is the amount estimated to be used inthe following year. In accordance with GAAP, in the fund financial statements, all of thecompensated absences are considered long-term and therefore are not a fund liability. Thisrepresents a reconciling item between the fund and government-wide presentations.



(Continued)


Unearned revenue

Unearned revenue in the General Fund and Special Revenue Fund represents cash, which hasbeen received but not yet earned. See Note 1 (E) regarding the Special Revenue Fund.

Unearned revenue in the Enterprise Fund includes United States government commodityinventories at year-end. The aid revenue associated with this commodity inventory is deferreduntil it is used in the operations of the Food Service Fund. Prepaid lunch debit card revenuebalances at year-end are also included in unearned revenue.

Long-Term Obligations

In the government-wide financial statements and in internal service fund types in the fundfinancial statements, long-term debt and other long-term obligations are reported as liabilities inthe applicable statement of net position. Bond premiums and discounts are deferred andamortized over the life of the bonds using the straight-line method which approximates theeffective interest method. Bonds payable are reported net of the applicable bond premium ordiscount.

In the fund financial statements, governmental fund types recognize bond premiums anddiscounts during the current period. The face amount of debt issued is reported as otherfinancing sources. Premiums received on debt issuances are reported as other financingsources while discounts on debt issuance are reported as other financing uses.

N. Fund Balances-Governmental Funds

In the fund financial statements, governmental funds report the following classifications of fundbalance:

Non-spendable—includes amounts that cannot be spent because they are either notspendable in form or are legally or contractually required to be maintained intact.

Restricted—includes amounts restricted by external sources (creditors, laws of othergovernments, etc.) or by constitutional provision or enabling legislation.

Committed—includes amounts that can only be used for specific purposes. Committed fundbalance is reported pursuant to resolutions passed by the Board of Education, the District'shighest level of decision making authority. Commitments may be modified or rescinded onlythrough resolutions approved by the Board of Education.

Assigned—includes amounts that the District intends to use for a specific purpose, but do notmeet the definition of restricted or committed fund balance. Under the District's policy,amounts may be assigned by the Business Administrator.

Unassigned—includes amounts that have not been assigned to other funds or restricted,committed or assigned to a specific purpose within the General Fund. The District reportsall amounts that meet the unrestricted General Fund Balance Policy described below asunassigned:



(Continued)


N. Fund Balances-Governmental Funds (cont'd)When an expenditure is incurred for purposes for which both restricted and unrestricted fundbalance is available, the District considers restricted funds to have been spent first. When anexpenditure is incurred for which committed, assigned, or unassigned fund balance are available,the District considers amounts to have been spent first out of committed funds, then assignedfunds, and finally unassigned funds, as needed.

0. Comparative Data/Reclassifications

Comparative total data for the prior year have been presented in selected sections of theaccompanying financial statements in order to provide an understanding of the changes in theDistrict's financial position and operations. Also, certain immaterial amounts presented in the prioryear data have been reclassified in order to be consistent with the current year's presentation.

P. Allocation of Indirect Expenses

Certain expenses, which have not been charged to a specific function in the District's fundfinancial statements, have been allocated to the functions for the government-wide statements.Employee benefits, on-behalf TPAF pension contributions, reimbursed TPAF social securitycontributions and compensated absences accruals have been allocated based on salaries byfunction. Depreciation expense which was not specifically identified by function has beenallocated based on the current year expenses by function.

NOTE 2. TAX ASSESSMENTS AND PROPERTY TAXES

Property valuations (assessments) are determined on true values as arrived at by a costapproach, market data approach and capitalization of net income where appropriate. Currentassessments are the results of new assessments on a like basis with established comparableproperties for newly assessed or purchased properties. This method assures equitable treatmentto like property owners.

Upon the filing of certified adopted budgets by the municipality, the municipality's local schooldistricts, and the county, the tax rate is struck by the County Board of Taxation based on thecertified amounts in each of the taxing districts for collection to fund the budgets. The statutoryprovision for the assessment of property, levying of taxes and the collection thereof are set forth inNJSA 54:4 et seq. Special taxing districts are permitted in New Jersey for various specialservices rendered to the properties located within the special districts.

Tax bills are mailed annually in June. The taxes are due August 1 and November 1 respectively,and are adjusted to reflect the current fiscal year's total tax liability. The preliminary taxes dueFebruary 1 and May 1 of the succeeding fiscal year are based upon one-half of the current year'stotal tax.



(Continued)

NOTE 2. TAX ASSESSMENTS AND PROPERTY TAXES (Cont'd)

Tax installments not paid on or before the due date are subject to interest penalties of eightpercent per annum on the first $1,500 of the delinquency and eighteen percent per annum on anyamount in excess of $1,500. Pursuant to Chapter 75, PL 1991, the governing body may also fix apenalty to be charged to a taxpayer with a delinquency in excess of $10,000 who fails to pay thatdelinquency prior to the end of the calendar year. The penalty so fixed shall not exceed sixpercent of the amount of the delinquency. These interest and penalties are the highest permittedunder the New Jersey statutes. Delinquent taxes are annually included in a tax sale inaccordance with New Jersey statutes.

School taxes are guaranteed as to amount of collection by the municipality, the collection agency,and are transmitted to the school district in accordance with the schedule of tax installments ascertified by the school district's Board of Education on an annual basis.

NOTE 3. DEPOSITS AND CASH EQUIVALENTS AND INVESTMENTS

Cash and cash equivalents include petty cash, change funds, cash in banks and all highly liquidinvestments with a maturity of three months or less at the time of purchase and are stated at costplus accrued interest. US Treasury and agency obligations and certificates of deposit withmaturities of one year or less when purchased are stated at amortized cost. All otherinvestments are stated at fair value.

New Jersey school districts are limited as to the types of investments and types of financialinstitutions they may invest in. New Jersey statute 18A:20-37 provides a list of permissibleinvestments that may be purchased by New Jersey school districts.

Additionally, the District has adopted a cash management plan that requires it to deposit publicfunds in public depositories protected from loss under the provisions of the Governmental UnitDeposit Protection Act ("GUDPA"). GUDPA was enacted in 1970 to protect Governmental Unitsfrom a loss of funds on deposit with a failed banking institution in New Jersey.

NJSA 17:9-41 e.t. seq establishes the requirements for the security of deposits of governmentalunits. The statute requires that no governmental unit shall deposit public funds in a publicdepository unless such funds are secured in accordance with the Act. Public depositories includeSavings and Loan institutions, banks (both state and national banks) and saving banks thedeposits of which are federally insured. All public depositories must pledge collateral, having amarket value at least equal to five percent of the average daily balance of collected public funds,to secure the deposits of Governmental Units. If a public depository fails, the collateral it haspledged, plus the collateral of all other public depositories, is available to pay the full amount oftheir deposits to the Governmental Units.

Deposits at June 30, 2014 appear in the financial statements as summarized below:

Cash $ 901,295 Ref.

Cash:Governmental Funds, Balance Sheet B-1 $ 714,614Enterprise Fund, Statement of Net Position B-4 65,141Fiduciary Funds, Statement of Net Position B-7 121,540

Total Cash $ 901,295



(Continued)

NOTE 3. DEPOSITS AND CASH EQUIVALENTS AND INVESTMENTS (Cont'd)

Deposits — The District's carrying amount of bank deposits at June 30, 2014 is $901,295 and thebank balance is $1,067,462. Of the bank balance, $250,000 is covered by federal depositaryinsurance and $817,462 is insured by GUDPA.

Deposit and Investment Risk

GASB Statement No. 40 "Deposit and Investment Risk Disclosures" requires state and localgovernments to communicate key information about deposit and investment risks. Requireddisclosures are as follows:

1. Custodial credit risk disclosures are required for:deposits that are uninsured and either (a) uncollateralized or (b) collateralized withsecurities held by the pledging financial institution, or its trust department or agent butnot in the government's nameInvestment securities that are uninsured, are not registered in the name of thegovernment, and are held by either (a) the counterparty or (b) the counterparty's trustdepartment or agent but not in the government's name

As the district has no such investments, this disclosure is not applicable.

2. Credit quality ratings for investments in debt securities, external investment pools, moneymarket funds, bond mutual funds, and other pooled investments of fixed-income securities.As the district has no such investments, this disclosure is not applicable.

Disclosure of investments by amount and issuer for any issuer that represents five percent ofmore of total investments. This requirement does not apply to investments issued or explicitlyguaranteed by the US government and investments in mutual funds or pools. This disclosureis reported below under Concentration of Credit Risk.

Interest rate risk disclosures are required for all debt investments and non-money market likepools. As the district has no such investments, this disclosure is not applicable.

5. Investments that are exposed to foreign currency risk should be disclosed. As the district hasno such investments this disclosure is not applicable.

Concentration of Credit Risk

The State of New Jersey does not place any limit on the amount that the district may invest with anyone issuer. As of June 30, 2014, the district has no investments.



(Continued)

NOTE 4. CAPITAL ASSETS

Capital asset activity for the fiscal year ended June 30, 2014 is as follows:

GOVERNMENTAL ACTIVITIES

Capital Assets, Not BeingDepreciated:

BeginningBalance Increases Decreases

EndingBalance

Land $ 320,100 $ 320,100Construction in Progress $ 19,084 19,084

Total 320,100 19,084 $ -0- 339,184

Capital Assets, BeingDepreciated:Land Improvements 206,106 206,106Building & Improvements 10,078,159 143,318 10,221,477Furniture & Equipment 712,809 33,370 9,800 736,379

Total 10,997,074 176,688 9,800 11,163,962

Accumulated Depreciation:Land Improvements 111,822 5,995 117,817Building & Improvements 3,715,034 200,107 3,915,141Furniture & Equipment 604,882 43,224 9,800 638,306

Total 4,431,738 249,326 9,800 4,671,264

Total Capital Assets, BeingDepreciated, Net 6,565,336 (72,638) -0- 6,492,698

Governmental Activities CapitalAssets, Net $ 6,885,436 $ (53,554) $ -0- $ 6,831,882

Business-Type Activities:Furniture & Equipment $ 97,416 $ 97,416Less: Accum Depreciation 85,890 $ 3,747 89,637

Business-Type Activities CapitalAssets, Net $ 11,526 $ (3,747) $ -0- $ 7,779

Depreciation expense was charged to governmental functions in the current year as follows:Instruction:

Regular $ 113,033Special Education 43,355Other Special Instruction 10,671Co-Curricular Activities 4,004

Support Services:Student & Instruction 48,082General & Business Admin 19,816School Administration 9,119Plant & Maintenance 1,246

Total Depreciation Expense,Governmental Activities $ 249,326

CLINTON-GLEN GARDNER SCHOOL DISTRICTNOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2014(Continued)

NOTE 5. LONG-TERM DEBT

Long-Term Liability Activity for the Year Ended June 30, 2014 is as Follows:

Governmental Activities:

BeginningBalance Additions Reductions

EndingBalance

Due WithinOne Year

General Obligation Bonds Payable $ 1,870,000 $ 465,000 $ 1,405,000 $ 450,000Lease Obligations Payable 121,974 80,816 41,158 41,158Compensated Absences Payable 53,588 $ 23,100 11,775 64,913

Total Governmental Activities Long-Term Liabilities $ 2,045,562 $ 23 100 $ 557,591 $ 1 511,071 $ 491,158

Payments on the general obligation bonds are made in the debt service fund from property taxes and state aid. The other long-termdebts are paid in the current expenditures budget of the District's general fund.

The annual requirements to amortize all general obligation bonds outstanding as of June 30, 2014 including interest payments arelisted as follows:

Year Ending June 30, Principal Interest Total2015 $ 450,000 $ 52,712 $ 502,7122016 120,000 31,837 151,8372017 130,000 27,487 157,4872018 140,000 22,737 162,7372019 145,000 17,581 162,5812020 140,000 12,775 152,7752021 140,000 7,787 147,7872022 140,000 2,625 142,625

Total $ 1,405,000 $ 175,541 $ 1,580,541



(Continued)

NOTE 5. GENERAL LONG-TERM DEBT (Cont'd)

General Obligation Bonds - General obligation school building bonds payable at June 30, 2014,with their outstanding balances are comprised of the following individual issues:

$1,505,000 - 2009 refunding school bonds, due in annualinstallments of $100,000 to $140,000, beginning Aug 15, 2010,through Aug 15, 2021, interest at 3.00% to 4.00% $ 335,000

$3,335,000 - 2002 refunding school bonds, due in annual in-stallments of $285,000 to $335,000, beginning Feb 1, 2005through Feb 1, 2015, interest from 2.90% to 5.00%

1,070,000

$ 1405,000

Debt Authorized Not Issued - On January 7, 2014 the Board of Education authorized debt in theamount of $2,104,250 for the "Clinton-Glen Gardner School District-School Facilities ImprovementProject". The authorized debt was subsequently approved by referendum of the citizens of GlenGardner and the Town of Clinton.

The general obligation bonded debt of the District is limited by state law to 3% of the averageequalized assessed values of the total taxable property in the District for the past three years. Thelegal debt limit at June 30, 2014 is $16,530,684. General obligation debt at June 30, 2014 is$3,509,250, resulting in a legal debt margin of $13,021,434.

School Bonds of 2014 - On August 15, 2014 the District issued $2,104,000 in general obligationbonds with an interest rate of 2.00% to 2.375%. The proceeds of the bond were to finance thedebt authorized for the School Facilities Project. Principal payments are due in annualinstallments of $155,000 to $249,000 beginning February 15, 2015 through February 15, 2016.

Capital Leases Payable

The District is leasing technology equipment totaling $240,000 under a capital lease. Thefollowing is a schedule of the future minimum lease payments under the lease and the netminimum lease payments at June 30, 2014:

GeneralYear Ending June Fund 2015 $ 41,664Amount Representing Interest 507

41,157



(Continued)

NOTE 6. PENSION PLANS

Description of Systems

Substantially all of the Board's employees participate in one of the following contributory definedbenefit public employee retirement systems which have been established by State statute: theTeachers' Pension and Annuity Fund (TPAF), Public Employees' Retirement System (PERS) andthe Defined Contribution Retirement Program (DCRP). The PERS and TPAF systems aresponsored and administered by the State of New Jersey. The DCRP system is administered byPrudential Financial for the Division of Pensions and Benefits. The Teachers' Pension andAnnuity Fund retirement system is considered a cost-sharing multiple-employer plan with aspecial funding situation, as under current statute, all employer contributions are made by theState of New Jersey on behalf of the Board and the system's other related non-contributingemployers. The Public Employees Retirement System and Defined Contribution RetirementProgram are considered cost sharing multiple-employer plans.

A. Teachers' Pension and Annuity Fund - The Teachers' Pension and Annuity Fund wasestablished in January, 1955 under the provisions of NJSA 18A:66 to provide coverage includingpost-retirement health care to substantially all full time public school employees in the State.Membership is mandatory for such employees and vesting occurs after 10 years of service forpension benefits and 25 years for health care coverage. Members are eligible for retirement atage 55 with an annual benefit generally determined to be 1/55th of the average annualcompensation for the highest three fiscal years' compensation for each year of membership duringyears of creditable service. Early retirement is available to those under age 55 with 25 or moreyears of credited service. Anyone who retires early and is under age 55 receives retirementbenefits as calculated in the above mentioned formula but at a reduced rate (one quarter of onepercent for each month the member lacks of attaining age 55).

B Public Employees' Retirement System - The Public Employees' Retirement System wasestablished in January, 1955 under the provisions of NJSA 43:15A to provide coverage includingpost-retirement health care to substantially all full time employees of the State or any county,municipality, school district or public agency provided the employee is not a member of anotherState-administered retirement system. Membership is mandatory for such employees and vestingoccurs after 8 to 10 years of service and 25 years for health care coverage. Members are eligiblefor retirement at age 55 with an annual benefit generally determined to be 1/55th of the averageannual compensation for the highest three fiscal years' compensation for each year of membershipduring years of creditable service. Early retirement is available to those under age 55 with 25 ormore years of credited service. Anyone who retires early and is under age 55 receives retirementbenefits as calculated in the above mentioned formula but at a reduced rate (one quarter of onepercent for each month the member lacks of attaining age 55).

C. Defined Contribution Retirement Program — The Defined Contribution Retirement Program(DCRP) was established under the provisions Ch 92, PL 2007 and expanded under the provisionsof Ch 89, PL 2008 and Ch 1, PL 2010 to provide eligible members with a tax sheltered, definedcontribution retirement benefit, along with life insurance and disability coverage. Employeeseligible to enroll in the program include the following: First, employees enrolled in the PublicEmployees Retirement System (PERS) or Teachers Pension and Annuity Fund (TPAF) on or afterJuly 1, 2007 who earn salary in excess of maximum compensation limits. Also, employeesotherwise eligible to enroll in the TPAF and PERS who do not earn the minimum salary ($8,000 in2013) but who earn salary of at least $5,000 annually are eligible to participate. The programadministrator, Prudential Financial, makes information regarding the program available on its NewJersey Defined Contribution Program Web Site: www.prudential.com/njdcrp.



(Continued)

NOTE 6. PENSION PLANS (Cont'd)

The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, issuespublicly available financial reports that include the financial statement and required supplementaryinformation for TPAF and PERS. The financial reports may be obtained by writing to the State ofNew Jersey, Department of the Treasury, Division of Pensions and Benefits, PO Box 295, Trenton,New Jersey 08625-0295.

Significant Legislation During the year ended June 30, 1997, legislation was enacted authorizing the New Jersey EconomicDevelopment Authority (the "Authority") to issue bonds, notes or other obligations for the purpose offinancing, in full or in part, the State of New Jersey's portion of the unfunded accrued liability underthe State of New Jersey retirement systems. On June 30, 1997, the Authority issued bonds pursuantto this legislation and $1,547,688,633 and $241,106,642 from the proceeds of the bonds weredeposited into the investment account of TPAF and PERS, respectively.

As a result of additional legislation enacted during the year ended June 30, 1997 (Ch 115, PL 1997),the asset valuation method was changed from market related value to full market value for thevaluation reports dated March 31, 1996. The legislation also provides for a reduction in the normalcontributions of the State to the systems from excess assets for FY's 1997 and 1998, and localemployers for FY 1999, and, thereafter, authorizes the State Treasurer to reduce the normalcontributions of State and local employers to the systems, to the extent possible, from up to 100% ofexcess assets through FY 2002, and on a declining maximum percentage of excess thereafter.

Due to the enactment of the legislation described above, the State of New Jersey's portion of theunfunded accrued liability under each retirement system was eliminated except for the unfundedliability for local early retirement incentive benefits; accordingly, the pension costs for TPAF andPERS were reduced.

Contribution RequirementsThe contribution policy is set by state statutes and contributions are required by active members andcontributing employers. Plan member and employer contributions may be amended by State of NewJersey legislation. Significant legislation which became effective October 1, 2011 will graduallyincrease the employee contribution rate for PERS and TPAF members. Effective October 1, 2011 therate increased from 5.50% to 6.50% of annual contractual compensation for employees enrolled inthe TPAF and PERS pension plans. The rate will increase each year on the first of July over a sevenyear phase-in period until the withholding rate reaches 7.50% effective July 1, 2018. Contributionrates for DCRP provide for employee contributions of 5.50% of annual contractual compensation asdefined. Employers are required to contribute at an actuarially determined rate in TPAF, PERS andDCRP. The actuarially determined contribution includes funding for cost-of-living adjustments, non-contributory death benefits and post-retirement medical premiums. Under current statute, the Board isa noncontributing employer of the TPAF.



(Continued)

NOTE 6. PENSION PLANS (Cont'd)

Contribution Requirements (cont'd)

Three-Year Trend Information for TPAF (Paid On-Behalf of the District)Percentage

Year TPAF of APCFunding Benefit Costs Contributed06/30/14 $ 396,616 100%06/30/13 508,526 100%06/30/12 365,111 100%

Three-Year Trend Information for PERSAnnual Percentage

Year Pension of APCFunding Cost (APC) Contributed06/30/14 $ 54,000 100%06/30/13 59,103 100%06/30/12 65,728 100%

During the year ended June 30, 2014, the State of New Jersey contributed $246,361 to the TPAF forpost-retirement medical benefits, $12,187 for the non-contributory insurance premiums and$138,068 for TPAF normal costs and accrued liability costs on behalf of the Board. Also, inaccordance with NJSA 18A:66-66 the State of New Jersey reimbursed the Board $255,573 duringthe year ended June 30, 2014 for the employer's share of social security contributions for TPAFmembers calculated on their base salaries. These amounts have been included in the financialstatements and the combining and individual fund and account group statements and schedules asrevenues and expenditures in accordance with GASB 27.

NOTE 7. POST-RETIREMENT BENEFITS

Chapter 384 of PL 1987 and Ch 6 of PL 1990 required TPAF and PERS, respectively, to fund post-retirement medical benefits for those State employees who retire after accumulating 25 years ofcredited service or on a disability retirement. PL 2007, Ch.103 amended the law to eliminate thefunding of post-retirement medical benefits through the TPAF and PERS. It created separate fundsoutside of the pension plans for the funding and payment of post-retirement medical benefits forretired State employees and retired educational employees. As of June 30, 2013, there were100,134 retirees eligible for post-retirement medical benefits and the state contributed $1.07 billion ontheir behalf. The cost of these benefits is funded through contributions by the State in accordancewith Ch 62, PL 1994. Funding of post-retirement medical premiums changed from a prefunding basisto a pay-as-you-go basis beginning the fiscal year 1994.

The State is also responsible for the cost attributable to Ch 126, PL 1992, which provides free healthbenefits to members of PERS and the Alternate Benefit Program who retired from a board ofeducation or county college with 25 years of service. In fiscal year 2013, the State paid $173.8million toward Ch 126 benefits for 17,356 eligible retired members.

GASB Statement 45 requires certain disclosures relating to governmental entities obligations forother post-employment benefits (OPEB), which are post-employment benefits other than pensions.The District's only material OPEB obligation is for healthcare provided to eligible retirees through theNJ State Health Benefits Program.



(Continued)

NOTE 7. POST-RETIREMENT BENEFITS (Cont'd)

Plan Description -The School District contributes to the State Health Benefits Program (SHBP), acost-sharing, multiple-employer definer benefit post-employment healthcare plan administered by theState of New Jersey Division of Pensions and Benefits. SHBP was established in 1961 under NJSA52:14-17.25 et seq., to provide health benefits to State employees, retirees, and their dependents.Rules governing the operation and administration of the program are found in Title 17, Chapter 9 ofthe New Jersey Administrative Code, SHBP provides medical, prescription drugs, mentalhealth/substance abuse, and Medicare Part B reimbursement to retirees and their covereddependents.

The SHBP was extended to employees, retirees, and dependents of participating local publicemployers in 1964. The school district adopted a resolution to participate in the SHBP. The StatesHealth Benefits Commission is the executive body established by the statute to be responsible forthe operation of the SHBP. The State of New Jersey Division of Pensions and Benefits issues apublicly available financial report that includes financial statements and required supplementaryinformation for the SHBP. That report may be obtained by writing to: State of New Jersey Divisionof Pensions and Benefits, PO Box 295, Trenton, NJ 08625-0295 or by visiting their website at(www.nj.gov/treasury/pensions).

Funding Policy-Participating employers are contractually required to contribute based on the amountof premiums attributable to their retirees. Post-retirement medical benefits under the plan have beenfunded on a pay-as-you-go basis since 1994. Prior to 1994, medical benefits were funded on anactuarial basis. Information regarding the State's annual contributions, annual OPEB cost and netOPEB obligations is available through the State as noted in the previous paragraph.

NOTE 8. DEFERRED COMPENSATION

The Board offers its employees a choice of the following deferred compensation plans created inaccordance with Internal Revenue Code Section 403 (b). The plans, which are administered by theentities listed below, permit participants to defer a portion of their salary until future years. Amountsdeferred under the plans are not available to employees until termination, retirement, death orunforeseeable emergency. The plan administrators are as follows:

The Equitable Lincoln National LifeVALIC Benefits Siracusa Benefits

Lincoln Financial Group



(Continued)

NOTE 9. INTERFUND RECEIVABLE AND PAYABLES

Interfund balances at June 30, 2014 are as follows:Receivable Payable

General Fund $ 19,159Special Revenue Fund $ 2,521Student Activities 12,638Payroll Agency Fund 4,000

$ 19,159 $ 19,159

The interfund owed by the Special Revenue Fund represents a loan due to the delay in receipt ofgrant funds. The balance due by the Payroll Agency Fund represents employee withholdings nottransferred by the end of the year.

All interfund balances are to be liquidated within one year.

NOTE 10. INVENTORY

Inventory in the Food Service Fund June 30, 2014 consisted of the following:

Food 2,863Supplies 843

3,706

The value of Federal donated commodities as reflected on Schedule A (required by the Single AuditLaw of 1984) is the difference between market value and cost of the commodities at the date ofpurchase and has been included as an item of nonoperating revenue in the financial statements.

NOTE 11. CONTINGENT LIABILITIES

The District is involved in various legal proceedings that are incidental to its operations. These legalproceedings are not likely to have a material adverse effect on the financial position of the SchoolDistrict.

NOTE 12. RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors and omissions; injuries to employees; and natural disasters.

Property and Liability Insurance - The District maintains commercial insurance coverage for property,liability, and student accident and surety bonds. A complete schedule of insurance coverage can befound in the Statistical Section of the Comprehensive Annual Financial Report.

47



NOTE 12. RISK MANAGEMENT

New Jersey Unemployment Compensation Insurance - The District has elected to fund its NJUnemployment Compensation Insurance under the "Benefit Reimbursement Method." Under thisplan, the District is required to reimburse the NJ Unemployment Trust Fund for benefits paid to itsformer employees and charged to it's account with the State. The District is billed quarterly foramounts due to the State. The following is a summary of District contributions, and interest earnings,employee contributions, reimbursements to the State for benefits paid and the ending balance of theDistrict's unemployment trust fund for the current and previous two years:

Fiscal YearBoard Interest

Contrib EarningsEmployeeContrib

Amount EndingReimbursed Balance

2013-2014 $ -0- $ 67 $ 7,989 $ 28,168 $ 53,8982012-2013 -0- 76 7,523 1,514 74,0102011-2012 -0- 208 6,539 22,934 67,925

NOTE 13. LEGAL RESERVE ACCOUNTS

A capital reserve account was established by the District by inclusion of $100 on October 6, 2001 forthe accumulation of funds for use as capital outlay expenditures in subsequent fiscal years. Thecapital reserve account is maintained in the general fund and its activity is included in the generalfund annual budget.

Funds placed in the capital reserve account are restricted to capital projects in the districts approvedLong Range Facilities Plan (LRFP) and updated annually in the Quality Assurance Annual Report(QAAR). Upon submission of the LRFP to the Department of Education, a district may increase thebalance in the capital reserve by appropriating funds in the annual general fund budget certified fortaxes. A district may also appropriate additional amounts when the express approval of the votershas been obtained either by a separate proposal at budget time or by a special question at one of thefour special elections authorized pursuant to NJSA 19:60-2. Pursuant to NJAC 6A:26-9.1(d)1, thebalance in the account cannot at any time exceed the local support costs of uncompleted capitalprojects in its approved LRFP.

Beginning in fiscal year 2008, Districts are allowed as per NJSA 18A:7F-41(a) & 41(b) to deposit tothe legal reserves by board resolution during the month of June for any unanticipated revenue and/orunexpended line-item appropriation amounts. Pursuant to this state statute, the District deposited$180,000 to their Reserve accounts.

The following is a summarization of the Legal Reserve Accounts for the Current year.Return ofUnused

Beginning District Interest With- With-Type Balance Contribution Earnings drawal drawal

Capital $ 257,650 $ 145,000 $ 247Maintenance 65,000 35,000Emergency 75,021 75

EndingBalance

$ 402,897100,00075,096

Totals $ 397,671 $ 180,000 $ 322 $ -0- $ -0- $ 577,993

48



NOTE 14. FUND BALANCES-BUDGETARY BASIS

As described in Note 1 N-Fund Equity (Fund Balance) may be restricted, committed or assigned. Ananalysis of the General Fund Balance on June 30, 2014 and 2013 is as follows:

2014 2013Committed:

Capital Reserve Account-represents funds restricted tocapital projects in the Districts Long Range Facilities Plan $ 402,897 $ 257,650

Maintenance Reserve-Represents funds accumulated forthe required maintenance of a facility in accordancewith the EFCFA (NJSA18A:76-9) 100,000 65,000

Emergency Reserve-Represents funds accumulated tofinance unanticipated general fund expendituresrequired for a thorough and efficient education 75,096 75,021

Assigned:Year End Encumbrance-Represents fund balance committed

for purchase orders that have been issued but goods orservices were not received as of June 30, 29,479 146,262

Designated Surplus-Designated for Subsequent Year'sExpenditures-Represents amount appropriated in thesuceeding year's budget to reduce tax requirements 30,000

Unassigned:Undesignated-Represents fund balance which has not been

restricted or designated 248,772 259,103

Total Fund Balance $ 856,244 $ 833,036

NOTE 15. CALCULATION OF EXCESS SURPLUS

In accordance with NJSA 18A:7F-7, as amended by PL 2004, Ch 73 (S1701), the designation forReserved Fund Balance-Excess Surplus is a required calculation pursuant to the New JerseyComprehensive Educational Improvement and Financing Act of 1996 (CEIFA). New Jersey schooldistricts are required to reserve General Fund, fund balance at the fiscal year end of June 30, if theydid not appropriate a required minimum amount as budgeted fund balance in their subsequentyears' budget. The excess fund balance at June 30, 2014 is $-0-.

49



NOTE 16. CONSOLIDATION

Pursuant to PL 2007, Ch 63 and A-4141. on June 30, 2009 non operating school districts wereeliminated. Effective July 1, 2009 the New Jersey Department of Education merged the GlenGardner School District with the Town of Clinton School District to operate as one entity.

As such, the Town of Clinton, School District assumed all contractual obligations of the GlenGardner School District and provided for the liquidation of the assets of the Glen Gardner SchoolDistrict. Upon completion of the liquidation any cash balances, including reserve balances, weredistributed to the Borough of Glen Gardner.

For the school year 2009-2010 and subsequent years the following will occur:

For 2009-2010 the two district budgets will be merged into one and taxes collected by GlenGardner have been forwarded to the Clinton-Glen Gardner School district.For subsequent school years taxes will be apportioned though a five year phase in to 100%equalized valuationA representative of Glen Gardner was appointed as a voting member of the Clinton Board ofEducation for a one year period. In subsequent years members of the Board of Educationwill be elected "at-large."All existing debt and applicable debt service requirements of the Town of Clinton will remainthe responsibility of the Town of Clinton. All future debt authorizations will be theresponsibility of the merged district.

5. State school aid for the merged district will be calculated as if the two districts were stilloperating as separate school districts.

NOTE 17: SUBSEQUENT EVENTS

The District has evaluated subsequent events through October 15, 2014, which is the date thefinancial statements were available to be issued and no additional items were noted for disclosure.

NOTE 18: RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE

The following is a list of recent accounting pronouncements which are not yet effective as of the yearend date of this report:

In June 2012, the Governmental Accounting Standards Board (GASB) issued Statement No. 68"Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27". Thisstatement, which is effective for fiscal periods beginning after June 15, 2014, is not anticipated tohave any effect on the District's financial reporting.

In January 2013, the Governmental Accounting Standards Board (GASB) issued Statement No. 69"Government Combinations and Disposals of Government Operations". This statement, which iseffective for fiscal periods beginning after December 15, 2013, is not anticipated to have any effecton the District's financial reporting.

50



NOTE 18: RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE (Cont'd)

In April 2013, the Governmental Accounting Standards Board (GASB) issued Statement No.70"Accounting and Financial Reporting for Nonexchange Financial Guarantees". This statement,which is effective for fiscal periods beginning after June 15, 2013, is not anticipated to have anyeffect on the District's financial reporting.

In November 2013, the Governmental Accounting Standards Board (GASB) issued Statement No. 71"Pension Transition for Contributions Made Subsequent to the Measurement Date- an amendment ofGASB Statement No. 68". This statement, which is effective for fiscal periods beginning after June30, 2014, is not expected to have an effect on the District's financial reporting.

REQUIRED SUPPLEMENTARY INFORMATION-PART II

51

BUDGETARY COMPARISON SCHEDULES

52

53C-1


BUDGETARY COMPARISON SCHEDULEGENERAL FUND


REVENUESLocal Sources:

OriginalBudget

BudgetTransfers

FinalBudget Actual

VarianceFinal

to Actual

Local Tax Levy $6,176,402 $ 6,176,402 $ 6,176,403 1Tuition-Individuals $ 23,355 23,355 23,072 (283)Tuition-Summer School 3,000 3,000 (3,000)Miscellaneous-Unrestricted 9,000 9,000 20,573 11,573Interest on Investments 1,800 1,800 1,068 (732)Interest on Emergency Reserve 300 300 75 (225)Interest on Capital Reserve Funds 300 300 247 (53)

Total 6,190,802 23,355 6,214,157 6,221,438 7,281

State Sources:Categorical Transportation Aid 25,514 25,514 25,514Categorical Special Education Aid 230,446 230,446 230,446Equalization Aid 613,561 613,561 613,561Categorical Security Aid 26,469 26,469 26,469Adjustment Aid 292,658 292,658 292,658Non-public Transportation Aid 3,719 3,719Extraordinary Special Education Costs Aid 18,827 18,827Other State Aid 750 750On-Behalf TPAF Pension Contributions 150,255 150,255On-Behalf TPAF Post Retirement Medical

Benefits 246,361 246,361Reimbursed TPAF Social Security Contribution 255,573 255,573

Total 1,188,648 1,188,648 1,864,133 675,485

TOTAL REVENUES $7,379,450 $ 23,355 $ 7,402,805 $ 8,085,571 $ 682,766

EXPENDITURESCurrent:

Regular Programs:Instruction-Salaries of Teachers:

Kindergarten $ 92,742 $ 53,188 $ 145,930 $ 145,930Grades 1-5 1,087,927 (36,925) 1,051,002 1,033,244 $ 17,758Grades 6-8 852,710 (1,990) 850,720 849,179 1,541

Home Instruction:Salaries for Teachers 2,030 (2,030)Purchased Prof-Education Services 15,350 15,350 7,487 7,863

Undistributed Instruction:Other Purchased Services 83,700 (1,844) 81,856 81,856General Supplies 186,400 (4,187) 182,213 178,135 4,078Textbooks 2,500 17,330 19,830 19,738 92Other Objects 500 500 500

Total 2,308,509 38,892 2,347,401 2,315,569 31,832Resource Room/Center:

Salaries of Teachers 426,257 29,510 455,767 455,767Other Salaries for Instruction 201,949 (29,349) 172,600 171,605 995General Supplies 9,600 2,500 12,100 9,803 2,297Textbooks 2,500 (2,500)

Total 640,306 161 640,467 637,175 3,292

54C-1



FOR THE FISCAL YEAR ENDED JUNE 30, 2014(Continued)

Original Budget FinalVariance

FinalEXPENDITURES (Cont'd) Budget Transfers Budget Actual to ActualCurrent: (cont'd)

Special Education: (cont'd)Autism:

Salaries of Teachers $ 68,345 $ (7,626) $ 60,719 $ 60,719Other Salaries for Instruction 28,058 23,812 51,870 51,870General Supplies 2,000 6 2,006 1,966 $ 40

Total 98,403 16,192 114,595 114,555 40

Preschool Disabilities-Part Time:Salaries of Teachers 90,137 (2,703) 87,434 87,434Other Salaries for Instruction 12,158 38,985 51,143 50,818 325General Supplies 1,500 251 1,751 1,711 40

Total 103,795 36,533 140,328 139,963 365

Total Special Education 842,504 52,886 895,390 891,693 3,697

Basic Skills/Remedial:Salaries of Teachers 219,920 (53,234) 166,686 162,557 4,129General Supplies 1,500 166 1,666 1,666

Total 221,420 (53,068) 168,352 164,223 4,129

Bilingual Education:Salaries of Teachers 33,021 33,021 33,021General Supplies 400 1,069 1,469 179 1,290

Total 33,421 1,069 34,490 33,200 1,290

School Sponsored Co/Extra-Curr Activities:Salaries 44,350 (6,354) 37,996 36,279 1,717Supplies and Materials 150 150 121 29

Total 44,350 (6,204) 38,146 36,400 1,746

School Sponsored Athletics:Salaries 23,300 23,300 23,073 227Purchased Services 6,000 6,000 6,000Supplies and Materials 3,000 3,000 2,167 833

Total 32,300 32,300 31,240 1,060

Summer School.Salaries of Teachers 14,721 14,721 14,721

Total 14,721 14,721 14,721

Total Instruction Regular $ 3,482,504 $ 48,296 $ 3,530,800 $ 3,487,046 $ 43,754

Undistributed Expenditures:Instruction Tuition:

Other LEAs within the State-Special $ 11,989 $ 11,989 $ 8,804 $ 3,185Private Schools for the Disabled W/I State $ 166,065 32,807 198,872 162,292 36,580

Total 166,065 44,796 210,861 171,096 39,765

Health Services:Salaries 79,912 1,360 81,272 81,272Purch Professional and Technical Services 1,750 1,750 1,750Other Purchased Services 250 250 85 165Supplies and Materials 4,850 964 5,814 4,965 849

Total 86,762 2,324 89,086 88,072 1,014

55C-1






Speech, OT, PT & Related Services:Salaries $ 171,959 $ 171,959 $ 171,959Purchased Professional Educational Services 25,000 $ 10,000 35,000 30,936 $ 4,064Supplies and Materials 1,000 201 1,201 1,201

Total 197,959 10,201 208,160 204,096 4,064

Other Support Services-Students-Extraordinary Serv:Salaries 71,400 (58,696) 12,704 12,704Purchased Professional-Educational Services 50,953 50,953 43,433 7,520

Total 71,400 (7,743) 63,657 56,137 7,520

Guidance:Salaries of Other Professional Staff 87,117 87,117 87,117Supplies and Materials 700 700 288 412

Total 87,817 - 87,817 87,405 412

Child Study Team:Salaries of Other Professional Staff 200,026 (940) 199,086 195,857 3,229Salaries of Secretarial and Clerical Assistants 46,671 7,892 54,563 54,563Purchased Professional Educational Services 5,000 924 5,924 5,924Supplies and Materials 9,600 522 10,122 9,982 140

Total 261,297 8,398 269,695 266,326 3,369

Improvement of Instructional Services:Salaries of Supervisor of Instruction 13,260 13,260 13,260Salaries of Other Professional Staff 12,200 21,675 33,875 28,061 5,814Salaries of Facilitators, Math & Literacy Coaches 38,848 38,848 38,848

Total 64,308 21,675 85,983 80,169 5,814

Educational Media Service/School Library:Salaries 83,992 83,992 82,972 1,020Salaries of Technology Coordinators 62,705 1 62,706 62,706Supplies and Materials 8,500 227 8,727 8,391 336

Total 155,197 228 155,425 154,069 1,356

Instructional Staff Training Services:Other Purchased Services 11,035 (10,074) 961 961Supplies and Materials 10,000 (1,965) 8,035 7,486 549

Total 21,035 (12,039) 8,996 8,447 549

Support Services General Administration:Salaries 149,914 (10,067) 139,847 137,512 2,335Legal Services 12,000 11,000 23,000 15,498 7,502Audit Fees 14,717 14,717 14,375 342Architect/Engineer Services 2,500 2,500 2,500Other Purchased Professional Services 4,000 40 4,040 4,040Communications/Telephone 10,400 2,933 13,333 11,569 1,764BOE Other Purchased Services 1,500 1,500 141 1,359Miscellaneous Purchased Services 8,920 7,624 16,544 16,544General Supplies 4,436 1,115 5,551 5,537 14BOE In-House Training/Meeting Supplies 250 250 100 150Miscellaneous Expenditures 5,567 7,054 12,621 11,887 734BOE Membership Dues and Fees 4,669 431 5,100 4,400 700

Total 218,623 20,380 239,003 221,603 17,400

56C-1






Support Services School Administration:Salaries of Principals/Asst Principals/Program Director $ 138,604 $ 138,604 $ 136,719 $ 1,885Salaries of Secretarial and Clerical Assistants 50,140 50,140 50,020 120Other Purchased Services 1,000 1,000 1,000Supplies and Materials 500 500 500Other Objects 1,500 1,500 820 680

Total 191,744 $ 191,744 187,559 4,185

Central Services:Salaries 153,000 239 153,239 153,239Purchased Professional Services 500 500 500Miscellaneous Purchased Services 1,000 1,000 140 860Supplies and Materials 1,000 1,000 659 341Miscellaneous Expenditures 2,800 2,800 2,510 290

Total 157,800 739 158,539 157,048 1,491

Administrative Information Technology:Salaries 6,968 6,968 6,967 1Purchased Technical Services 23,823 1,434 25,257 21,937 3,320

Total 30,791 1,434 32,225 28,904 3,321

Required Maintenance for School Facilities:Salaries 75,000 75,000 75,000Cleaning, Repair and Maintenance Services 65,319 12,398 77,717 70,228 7,489Other Purchased Services 200 200 100 100General Supplies 8,227 12,503 20,730 14,776 5,954

Total 73,546 100,101 173,647 160,104 13,543

Custodial Services:Salaries 125,502 125,502 121,102 4,400Purchased Professional and Technical Services 242,868 (239,598) 3,270 3,270Cleaning, Repair and Maintenance Services 10,318 1,637 11,955 7,169 4,786Other Purchased Property Services 8,700 303 9,003 9,003Insurance 41,000 401 41,401 41,401General Supplies 15,000 7,506 22,506 22,506Energy (Natural Gas) 32,000 11,185 43,185 43,185Energy (Electricity) 108,000 (5,791) 102,209 95,962 6,247Other Objects 275 275 275

Total 457,886 (98,580) 359,306 343,873 15,433

Care and Upkeep of Grounds:Cleaning, Repair and Maintenance Services 2,886 314 3,200 3,200General Supplies 5,141 5,141 53 5,088

Total 8,027 314 8,341 53 8,288

Security:Purchased Professional and Technical Services 304 473 777 645 132Cleaning, Repair and Maintenance Services 5,000 5,000 4,886 114Other Purchased Services 800 800 800

Total 5,304 1,273 6,577 6,331 246

Student Transportation Services:Management Fee-ESC & CTSA Transportation Program 5,176 (2,676) 2,500 2,500Contracted Service-Aid in Lieu Pymts-Non Public Schools 16,210 2,867 19,077 18,326 751Contracted Service-Aid in Lieu Pymts-Choice Schools 5,075 (2,423) 2,652 2,652Contracted Service (Oth than Between Home & Sch)-Vendors 10,000 505 10,505 8,225 2,280Contracted Service (Between Home & Sch)-Joint Agreements 6,698 6,698 6,698Contracted Service (Reg Students)-ESCs & CTSAs 150,468 (5,468) 145,000 144,449 551Contracted Service (Sp Ed Students)-ESCs & CTSAs 93,000 20,230 113,230 98,592 14,638

Total 279,929 19,733 299,662 274,744 24,918

Unallocated Benefits:Social Security Contributions 60,000 37,000 97,000 93,928 3,072Other Retirement Contributions-PERS 60,000 2,302 62,302 54,000 8,302Other Retirement Contributions-DCRP 5,000 5,000 3,379 1,621Workmen's Compensation 32,819 10,744 43,563 43,563Health Benefits 1,176,188 (173,643) 1,002,545 995,171 7,374Tuition Reimbursement 15,000 1,769 16,769 16,769Other Employee Benefits 10,000 367 10,367 10,367

Total 1,359,007 (121,461) 1,237,546 1,217,177 20,369

57C-1

CLINTON-GLEN GARDNER SCHOOL DISTRICTBUDGETARY COMPARISON SCHEDULE

GENERAL FUNDFOR THE FISCAL YEAR ENDED JUNE 30, 2014

(Continued)

Original Budget Final

5 of 6

VarianceFinal

EXPENDITURES (Cont'd) Budget Transfers Budget Actual to ActualCurrent: (cont'd)

On-Behalf TPAF Pension Contributions $ 150,255 $ (150,255)On-Behalf TPAF Post Retirement Medical

Benefits 246,361 (246,361)Reimbursed TPAF Social Security Contribution 255,573 (255,573)Total $ $ 652,189 (652,189)

Total Undistributed Expenditures 3,894,497 (8,227) 3,886,270 4,365,402 (479,132)

TOTAL EXPENDITURES $ 7,377,001 $ 40,069 $ 7,417,070 $ 7,852,448 $ (435,378)

CAPITAL OUTLAYEquipment:

Central Services $ 15,000 $ 3,353 $ 18,353 $ 18,353Instructional 22,954 22,954 5,954 $ 17,000Custodial 9,063 9,063 9,063

Facilities Acquisition & ConstructionServices:

Construction Services 140,443 44,462 184,905 162,402 22,503Assessment for Debt Service on SDA Funding 22,668 (8,525) 14,143 14,143

TOTAL CAPITAL OUTLAY 178,111 71,307 249,418 209,915 39,503

GENERAL FUND TOTAL EXPENDITURES $ 7,555,112 $ 111,376 $ 7,666,488 $ 8,062,363 $ (395,875)

Excess (Deficiency) of Revenues Over(Under) Expenditures $ (175,662) $ (88,021) $ (263,683) $ 23,208 $ 286,891

Other Financing Sources (Uses):Transfer from Other Funds 45,000 45,000 (45,000)

Total Other Financing Sources (Uses) 45,000 45,000 (45,000)

Excess (Deficiency) of Revenues & OtherFinancing Sources Over (Under) Expenditures& Other Financing Uses (130,662) (88,021) (218,683) 23,208 241,891

Fund Balances, July 1 833,036 833,036 833,036

Fund Balances, June 30 $ 702,374 $ (88,021) $ 614,353 $ 856,244 $ 241,891

Recapitulation of Excess (Deficiency) ofRevenues Over (Under) Expenditures

Adjustment for Prior Year Encumbrances $ (146,262) $ (146,262) $ (146,262)Increase in Capital Reserve 45,300 $ 100,000 145,300 145,247 $ (53)Increase in Maintenance Reserve 35,000 35,000 35,000Increase in Emergency Reserve 300 300 75 (225)Budgeted Fund Balance (30,000) (223,021) (253,021) (10,852) 242,169

TOTAL $ (130,662) $ (88,021) $ (218,683) $ 23,208 $ 241,891

58C-1




RECAPITULATION OF FUND BALANCE

Committed Fund Balance:Capital Reserve $ 402,897Maintenance Reserve 100,000Emergency Reserve 75,096

$ 577,993Assigned Fund Balance:

Year-End Encumbrances 29,479

Unassigned Fund Balance 248,772856,244

Reconciliation to Governmental Statements (GAAP):Last State Aid Payments not Recognized on GAAP Basis (117,455)

Fund Balance Per Governmental Funds (GAAP) $ 738,789

C-2CLINTON-GLEN GARDNER SCHOOL DISTRICT

BUDGETARY COMPARISON SCHEDULESPECIAL REVENUE FUND


REVENUES

OriginalBudget

BudgetTransfers

FinalBudget Actual

VarianceFinal toActual

Local Sources $ 7,740 $ 3,062 $ 10,802 $ 10,030 $ (772)Federal Sources 162,973 3,301 166,274 160,499 (5,775)

TOTAL REVENUES $ 170,713 $ 6,363 $ 177,076 $ 170,529 $ (6,547)

EXPENDITURESInstruction:

Salaries for Teachers $ 22,045 $ 22,045 $ 22,045General Supplies 7,740 $ 2,222 9,962 9,190 $ 772

Total 29,785 2,222 32,007 31,235 772

Support Services:Other Salaries 840 840 840Personnel Services Employee Benefits 5,465 2,991 8,456 2,991 5,465Other Purchased Professional Services 29,329 300 29,629 29,329 300Tuition 95,101 95,101 95,101Other Purchased Services 11,033 10 11,043 11,033 10

Total 140,928 4,141 145,069 139,294 5,775

TOTAL EXPENDITURES $ 170,713 $ 6,363 $ 177,076 $ 170,529 $ 6,547

NOTES TO THE REQUIRED SUPPLEMENTAL INFORMATION

60

61C-3

CLINTON-GLEN GARDNER SCHOOL DISTRICTNOTES TO REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE

Explanation of Differences Between Budgetary Inflows and Outflows and GAAP Revenues and Expenditures

Sources/Inflows of Resources

GeneralFund

SpecialRevenue

Fund

Actual amounts (budgetary) "revenues" from thebudgetary comparison schedules $ 8,085,571 $ 170,529

The last State aid payment is recognized as revenue for budgetarypurposes, and differs from GAAP which does not recognizethis revenue until the subsequent year when the State recognizesthe related expenses (GASB 33):State Aid Receivable Prior Year 114,253State Aid Receivable Current Year (117,455)

Total Revenues (GAAP Basis) $ 8,082,369 $ 170,529

Uses/Outflows of ResourcesActual Amounts (budgetary basis) "total outflows" from the

budgetary comparison schedule $ 8,062,363 $ 170,529

Total Expenditures (GAAP Basis) $ 8,062,363 $ 170,529

OTHER SUPPLEMENTAL INFORMATION

62

SCHOOL LEVEL SCHEDULES

(NOT APPLICABLE TO THIS REPORT)

63

SPECIAL REVENUE FUND

DETAIL STATEMENTS

The special revenue tund is used to account for the proceeds of specific revenuesources (other than major capital projects) that are legally restricted expenditures

for specific purposes.

64

E-1CLINTON-GLEN GARDNER SCHOOL DISTRICT

SPECIAL REVENUE FUNDCOMBINING SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES-BUDGETARY BASIS


REVENUES

NCLBTitle IA

NCLBTitle II A

IDEABasic

IDEAPre-school

LocalGrants

Total2013

Local Sources $ 10,030 $ 10,030Federal Sources $ 26,484 $ 9,585 $ 119,101 $ 5,329 160,499

TOTAL REVENUES $ 26,484 $ 9,585 $ 119,101 $ 5,329 $ 10,030 $ 170,529

EXPENDITURESInstruction:

Salaries for Teachers $ 22,045 $ 22,045General Supplies $ 9,190 9,190

Total 22,045 $ $ $ - 9,190 31,235

Support Services:Other Salaries 840 840Personnel Services Employee Benefits 2,991 2,991Other Purchased Professional Services 24,000 5,329 29,329Tuition 95,101 95,101Other Purchased Services 1,448 9,585 11,033

Total 4,439 9,585 119,101 5,329 840 139,294

TOTAL EXPENDITURES $ 26,484 $ 9,585 $ 119,101 $ 5,329 $ 10,030 $ 170,529

CAPITAL PROJECTS FUND

DETAIL STATEMENTS

The capital projects fund is used to account for the acquisition and construction ofmajor capital facilities and equipment purchases other than those financed by

proprietary funds.

66

67F-1

CLINTON-GLEN GARDNER SCHOOL DISTRICTCAPITAL PROJECTS FUND

SUMMARY SCHEDULE OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCE-BUDGETARY BASIS


(NOT APPLICABLE TO THIS REPORT)

68

F-1ACLINTON-GLEN GARDNER SCHOOL DISTRICT

CAPITAL PROJECTS FUNDSCHEDULE OF PROJECT REVENUES, EXPENDITURES, PROJECT BALANCE AND

PROJECT STATUS-BUDGETARY BASIS-FACILITIES IMPROVEMENT PROJECTFOR THE FISCAL YEAR ENDED JUNE 30, 2014

Revenues and Other Financing Sources:Local Sources:

PriorPeriods

CurrentYear

RevisedAuthorized

Totals Cost

Bond Proceeds $ 2,104,000Other 250

Total Revenues $ $ 2,104,250

Expenditures and Other Financing Uses:Construction:

Exterior Closure 800,000HVAC 850,000Miscellaneous 135,000

Other Allowable Costs:Architect/Engineering. 90,000Bonding/Legal Fees 25,000Construction Management 50,000Testing Consulting Fees 15,000Perm it Fees 50,000Construction Contingency 89,250

Total Expenditures 2,104,250

Excess (Deficiency) of Revenues Over (Under)Expenditures $ $ $ $

Additional Project Information:Project Number 0910-030-14-2000Grant Date N/AOriginal Bonds Authorized Date 01/07/14Original Bonds Authorized $ 2,104,250Original Bonds Issued $ 2,104,000Additional Bonds Issued N/APercentage Completion 0.00%

PROPRIETARY FUND

DETAIL STATEMENTS

Proprietary Funds are used to account tor operations that are financed and operatedin a manner similar to private business enterprises-where the intent of the district's

board is that the costs of providing goods or services be financed through usercharges.

69

70G-1

CLINTON-GLEN GARDNER SCHOOL DISTRICTCOMBINING STATEMENT OF FUND NET POSITION

ENTERPRISE FUNDJUNE 30, 2014

Current Assets:

FoodService Fund

ChildCare

Program Total

Cash & Cash Equivalents $ 37,322 $ 27,819 $ 65,141Accounts Receivable:

Intergovernmental-Federal 5,947 5,947Intergovernmental-State 353 353Due From Other Funds 2,769 2,769

Inventories 3,706 3,706Total Current Assets 50,097 27,819 77,916

Fixed Assets:Capital Assets 97,416 97,416Accumulated Depreciation 89,637 89,637

Total Fixed Assets 7,779 7,779

Total Assets 57,876 27,819 85,695

LIABILITIES

Current Liabilities:Unearned Revenue 1,481 1,481

Total Current Liabilities 1,481 - 1,481

NET POSITION

Net Investment in Capital Assets 7,779 7,779Unrestricted 48,616 27,819 76,435

TOTAL NET POSITION $ 56,395 $ 27,819 $ 84,214

71G-2

CLINTON-GLEN GARDNER SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION

ENTERPRISE FUNDSFOR THE FISCAL YEAR ENDED JUNE 30, 2014

Operating Revenues:Charges for Services:

Food ServicesChild CareProgram Total

Daily Sales-Reimbursable Programs $ 56,360 $ 56,360Daily Sales-Nonreimbursable Programs 31,348 31,348Child Care Revenues $ 134,188 134,188

Total Operating Revenues 87,708 134,188 221,896

Operating Expenses:Costs of Sales 56,408 56,408Commodity Food Costs 7,642 7,642Salaries 32,481 76,459 108,940Employee Benefits 4,937 26,822 31,759Insurance 3,316 3,316Management Fees 7,546 7,546Other Purchased Services 7,074 19,008 26,082General Supplies 3,495 4,095 7,590Depreciation 3,747 3,747

Total Operating Expenses 126,646 126,384 253,030

Operating Income (Loss) (38,938) 7,804 (31,134)

Nonoperating Revenues (Expenses):State Sources:

State School Lunch Program 1,348 1,348Federal Sources:

National School Lunch Program:Cash Assistance 28,982 28,982Non-Cash Assistance (Commodities) 7,642 7,642

Interest Earned on Investments 48 48Total Nonoperating Revenues (Expenses) 38,020 38,020

Change in Net Position (918) 7,804 6,886

Total Net Position, Beginning 57,313 20,015 77,328

Total Net Position, Ending $ 56,395 $ 27,819 $ 84,214

72G-3

CLINTON-GLEN GARDNER SCHOOL DISTRICTCOMBINING STATEMENT OF CASH FLOWS

ENTERPRISE FUNDSFOR THE FISCAL YEAR ENDED JUNE 30, 2014

Cash Flows from Operating Activities:

Food ServicesChild

Care Program Total

Receipts from Customers 87,708 $ 129,009 $ 216,717Payments to Employees (76,459) (76,459)Payments for Employee Benefits (26,822) (26,822)Payments to Food Services Management Co (106,932) (106,932)Payments to Vendors (8,514) (23,103) (31,617)

Net Cash Provided by (Used For) OperatingActivities (27,738) 2,625 (25,113)

Cash Flows from Noncapital Financing Activities:State Sources 1,289 1,289Federal Sources 27,884 27,884Interfund Activity (2,769) (2,769)

Net Cash Provided by (Used For) NoncapitalFinancing Activities 26,404 26,404

Cash Flows from Investing Activities:Interest Earned on Investments 48 48

Net Cash Provided by Investing Activities 48 48

Net Increase (Decrease) in Cash and CashEquivalents (1,286) 2,625 1,339

Cash and Cash Equivalents, July 1, 2013 38,608 25,194 63,802

Cash and Cash Equivalents, June 30, 2014 37,322 $ 27,819 $ 65,141

Reconciliation of Operating Income (Loss) to NetCash Provided by (Used For) Operating Activities:

Operating Income (Loss) $ (38,938) $ 7,804 $ (31,134)Adjustments to Reconcile Operating Income (Loss)to Net Cash Provided by (Used For) Operating Activities:

Depreciation 3,747 3,747Federal Food Donation Program 7,512 7,512(Increase) Decrease in Inventory (59) (59)Increase (Decrease) in Deferred Revenue (5,179) (5,179)

Net Cash Provided by (Used For) Operating Activities $ (27,738) $ 2,625 $ (25,113)

FIDUCIARY FUND

DETAIL STATEMENTS

Fiduciary Fund are used to account for tunds received by the school district asan agent for individuals, private organizations, other governments and/or other

funds.

73

74H-1

CLINTON-GLEN GARDNER SCHOOL DISTRICTCOMBINING STATEMENT OF FIDUCIARY FUND NET POSITION

FIDUCIARY FUNDSJUNE 30, 2014

ASSETS


Fund

StudentActivityAgency

FundPayroll

Agency Fund Totals

Cash & Cash Equivalents $ 57,908 $ 59,043 $ 4,589 $ 121,540

TOTAL ASSETS 57,908 59,043 4,589 121,540

LIABILITIES

Accounts Payable 4,010 4,010Due to Other Funds 12,638 4,000 16,638Due to Student Groups 46,405 46,405Payroll Deductions & Withholdings 589 589

TOTAL LIABILITIES 4,010 59,043 4,589 67,642

NET POSITION

Held in Trust for UnemploymentClaims & Other Purposes $ 53,898 $ - $ - $ 53,898

75H-2

CLINTON-GLEN GARDNER SCHOOL DISTRICTSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDSFOR THE FISCAL YEAR ENDED JUNE 30, 2014


FundADDITIONS

Contributions:Plan Members $ 7,989

Investment Earnings-Interest 67Total Additions 8,056

DEDUCTIONS

Unemployment Claims 28,168 Total Deductions 28,168

Change in Net Position (20,112)

Net Position, Beginning of the Year 74,010

Net Position, End of the Year $ 53,898

76H-3

CLINTON-GLEN GARDNER SCHOOL DISTRICTSTUDENT ACTIVITY AGENCY FUND

STATEMENT OF CHANGES IN ASSETS AND LIABILITIESFOR THE FISCAL YEAR ENDED JUNE 30, 2014

Balance07/01/13 Additions Deletions

Balance06/30/14

ASSETS

Cash and Cash Equivalents $ 48,212 $ 69,891 $ 59,060 $ 59,043

TOTAL ASSETS $ 48,212 $ 69,891 $ 59,060 $ 59,043

LIABILITIES

Due to Other Funds $ 12,638 $ 12,638Due to Student Groups $ 48,212 57,253 $ 59,060 46,405

TOTAL LIABILITIES $ 48,212 $ 69,891 $ 59,060 $ 59,043

77H-4

CLINTON-GLEN GARDNER SCHOOL DISTRICTPAYROLL AGENCY FUND

STATEMENT OF CHANGES IN ASSETS AND LIABILITIESFOR THE FISCAL YEAR ENDED JUNE 30, 2014

ASSETS

Balance07/01/13 Additions Deletions

Balance06/30/14

Cash and Cash Equivalents $ 55,906 $ 8,323,004 $ 8,374,321 $ 4,589

TOTAL ASSETS $ 55,906 $ 8,323,004 $ 8,374,321 $ 4,589

LIABILITIES AND RESERVES

Due to Other Funds $ 47,366 $ 43,366 $ 4,000Payroll Deductions & Withholdings 8,538 $ 5,228,319 5,236,268 589Net Payroll 2 3,094,685 3.094,687

TOTAL LIABILITIES AND RESERVES $ 55,906 $ 8,323,004 $ 8,374,321 $ 4,589

LONG-TERM DEBT SCHEDULES

The long-term debt schedules are used to reflect the outstanding principal balancesof the general long-term liabilities of the school district. This includes serial bonds

outstanding, obligations under capital leases, and early retirement program.

78

CLINTON-GLEN GARDNER SCHOOL DISTRICTLONG-TERM DEBT

SCHEDULE OF SERIAL BONDSJUNE 30, 2014

IssueDate ofIssue

Amount ofIssue

Annual Maturities InterestRate

Balance07/01/13 Issued Retired

Balance06/30/14Date Amount

Refunding SchoolBonds of 2002 02/01/02 $ 3,335,000 02/01/15 $ 335,000 5.000% $ 685,000 $ 350,000 $ 335,000

Refunding SchoolBonds of 2009 08/15/09 1,505,000 08/15/14 115,000 3.000%

08/15/15 120,000 4.000%08/15/16 130.000 3.000%08/15/17 140,000 4.000%08/15/18 145,000 3.250%08/15/19 140,000 3.500%08/15/20 140,000 3.625%08/15/21 140,000 3.750% 1,185,000 115,000 1,070,000

$ 1,870,000 $ $ 465,000 $ 1.405,000

1-2CLINTON-GLEN GARDNER SCHOOL DISTRICT

LONG-TERM DEBTSCHEDULE OF OBLIGATIONS UNDER CAPITAL LEASES

JUNE 30,2014

Interest Amount ofRate Original Balance Balance

Payable Issue 07/01/13 Issued Retired 06/30/14

2.48% $ 240,000 $ 121,974 $ 80,816 $ 41,158

$ 121,974 $ - $ 80,816 $ 41,158

03O

CLINTON-GLEN GARDNER SCHOOL DISTRICTBUDGETARY COMPARISON SCHEDULE

DEBT SERVICE FUNDFOR THE FISCAL YEAR ENDED JUNE 30, 2014

REVENUES

Local Sources:

OriginalBudget

BudgetTransfers

FinalBudget Actual

VarianceFinal toActual

Local Tax Levy-Pre Merger Debt $ 537,661 $ 537,661 $ 537,661State Sources:

Debt Service Aid Type II 1,002 1,002 1,002Total Revenues 538,663 $ 538,663 538,663 $

EXPENDITURES

Regular Debt Service:Redemption of Principal 465,000 465,000 465,000Interest on Bonds 73,663 73,663 73,663

Total Expenditures 538,663 538,663 538,663

Excess (Deficiency) of Revenues Over (Under) Expenditures _ -

Fund Balance, July 1

Fund Balance, June 30 $ - $ - $ - $ - $

STATISTICAL SECTION

82


STATISTICAL SECTION J SERIES

CONTENTS PAGE

FINANCIAL TRENDS

These Schedules Contain Trend Information to Help theReader Understand how the District's Financial Performanceand Well Being have Changed Over Time.

REVENUE CAPACITY

These Schedules Contain Trend Information to Help theReader Assess the District's most Significant Local RevenueSources, the Property Tax.

DEBT CAPACITY

I nese 6cheduies uontain I rend Intormation to Help theReader Assess the Affordability of the District's Current Levelsof Outstanding Debt and the District's Ability to Issue AdditionalDebt in the Future.

DEMOGRAPHIC AND ECONOMIC INFORMATION

These Schedules Offer Demographic and Economic Indicatorsto Help the Reader Understand the Environment Within Whichthe District's Financial Activities Take Place.

OPERATING INFORMATION

These Schedules Contain Service and Infrastructure Data toHelp the Reader Understand how the Information in theDistrict's Financial Report Relates to the Services the DistrictProvides and the Activities it Performs.

Sources: Unless Otherwise noted, the Information in these Schedules isDerived from the Comprehensive Annual Financial Reports (CAFR) for the

Relevant Year.

J-1 to J-6

J-7 to J-15

J-16 to J-20

J-21 to J-22

J-23 to J-27

CLINTON-GLEN GARDNER SCHOOL DISTRICTNET POSITION BY COMPONENT

LAST TEN FISCAL YEARS(ACCRUAL BASIS OF ACCOUNTING)

Fiscal Year Ending June 30,

J-1

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014GOVERNMENTAL ACTIVITIESNet Investment in Capital Assets $ 3,252,681 $ 3,541,002 $ 3,683,929 $ 3,839,597 $ 3,982,503 $ 4,128,574 $ 4,371,285 $ 4,537,465 $ 4,893,462 $ 5,385,724Restricted 41,122 139 139 139 40,140 102,774 167,217 197,547 397,671 577,993Unrestricted 90,115 (45,517) 139,065 71,661 61,887 21,637 182.420 422,659 237,414 73,857

TOTAL GOVERNMENTAL ACTIVITIES NET POSITION $ 3,383,918 $ 3,495,624 $ 3,823,133 $ 3,911.397 $ 4,084,530 $ 4,252,985 $ 4,720,922 $ 5,157,671 $ 5.528,547 $ 6,037,574

BUSINESS-TYPE ACTIVITIESInvested in Capital Assets, Net of Related Debt $ 50,638 $ 44,338 $ 40,534 $ 39,422 $ 32,523 $ 25,920 $ 19,570 $ 13,217 $ 11,526 $ 7,779Unrestricted 54.822 81,453 100,750 103,787 25,184 82,823 131,618 174,323 65,802 76,435

TOTAL BUSINESS-TYPE ACTIVITIES $ 105,460 $ 125,791 $ 141,284 $ 143,209 $ 57,707 $ 108,743 $ 151,188 $ 187,540 $ 77,328 $ 84,214

DISTRICT-WIDENet Investment in Capital Assets $ 3,303,319 $ 3,585,340 $ 3,724,463 $ 3,879,019 $ 4,015,026 $ 4,154,494 $ 4,390,855 $ 4,550,682 $ 4,904,988 $ 5,393,503Restricted 41,122 139 139 139 40,140 102,774 167,217 197,547 397,671 577,993Unrestricted 144,937 35,936 239,815 175,448 87,071 104,460 314,038 596,982 303,216 150,292

TOTAL DISTRICT-WIDE $ 3,489,378 $ 3,621,415 $ 3,964,417 $ 4,054,606 $ 4,142,237 $ 4,361,728 $ 4,872,110 $ 5,345,211 $ 5,605,875 $ 6,121,788

Note-Effective for the school year 2009-2010 the schooldistricts of the Town of Clinton and Borough of GlenGardner were merged to operate as one entity. Priorto the merger the Borough of Glen Gardner was asending district to the Town of Clinton on a tuitionbasis. As such, some financial data may not becomparable.

J-21 of 3

CLINTON-GLEN GARDNER SCHOOL DISTRICTCHANGES IN NET POSITION


Fiscal Year Ending June 30,2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EXPENSESGovernmental Activities:

Instruction:Regular $ 2,984,802 $ 3,264,590 $ 3,442,154 $ 3,569,937 $ 3,564,328 $ 3,424,234 $ 3,064,929 $ 3,282,752 $ 3,307,290 $ 3,215,086Special Education 1,203,671 1,167,694 1,230,670 1,374,904 1,187,652 1,397,612 1,557,303 1,537,296 1,650,654 1,626,623Other Instruction 48,296 60,738 77,265 91,294 80,667 98,492 74,827 75,067 84,814 86,365

Support Services:Tuition 87,523 130,806 117,067 120,312 176,784 242,911 181,942 258,451 244.655 266,197Student and Instruction Related Services 957,084 941,943 943,654 1,085,543 1,280,294 1,442,001 1,346,673 1,250,154 1,392,448 1,348,496General and Business Administrative Services 474,719 554,549 512,815 588,641 583,662 568,098 553,444 678,237 569,239 501,436School Administrative Services 178,708 191,823 214,526 242,139 236,339 269,045 268,637 244,835 273,660 299,817Plant Operations and Maintenance 445,671 471,873 550,439 559,551 587,830 582,103 536,418 567,423 671,284 581,535Pupil Transportation 47,956 114,654 97,408 85,674 104,463 310,020 294,709 314,598 273,342 274,744

Interest on Long-Term Debt 230,835 218,045 203,497 189,502 179,431 128,690 142,942 128,355 102,179 82,234Total Governmental Activities Expenses 6,659,265 7,116,715 7,389,495 7,907,497. 7,981,450 8,463,206 8,021,824 8,337,168 8,569,565 8,282,533

Business-Type Activities:Food Services 114,028 120,293 119.300 132,969 135,927 125,742 127,014 124,732 129,346 126,646Child Care 113,651 114,826 118,049 121,767 145,249 133,131 142,781 139,139 123,450 126,384

Total Business-Type Activities 227,679 235,119 237,349 254,736 281,176 258,873 269,795 263,871 252,796 253,030

TOTAL DISTRICT EXPENSES $ 6,886,944 $ 7,351,834 $ 7,626,844 $ 8,162,233 $ 8,262,626 $ 8,722,079 $ 8,291,619 $ 8,601,039 $ 8,822,361 $ 8,535,563


J-22 of 3



(Continued)Fiscal Year Ending June 30,

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014PROGRAM REVENUESGovernmental Activities:

Charges for Services $ 2,383,327 $ 2,203,781 $ 2,296,557 $ 2,307,758 $ 2,438,090 $ 172,761 $ 143,409 $ 73,900 $ 27,742 $ 34,607Operating Grants & Contributions 236,263 214,215 201,794 225,534 217,793 261,008 197,376 167,463 181,008 170,529Capital Grants & Contributions 55,020 64,576 10,124

Total Governmental Activities Program Revenues 2,619,590 2,473,016 2,498,351 2,533,292 2,655,883 433,769 340,785 305,939 218,874 205,136

Business-Type Activities:Charges for Services:

Food Service 91,981 98,572 97,512 105,742 98,162 104,785 101,467 95,156 85,273 87,708Child Care 124,113 132,247 130,280 122.783 109,159 178,063 181,453 178,671 110,082 134,188

Operating Grants & Contributions 19,873 24,631 24,770 27,790 28,258 26,969 29,152 26,255 37,174 37,972Total Business-Type Activities Program Revenues 235,967 255,450 252,562 256,315 235,579 309,817 312,072 300,082 232,529 259,868

TOTAL DISTRICT-PROGRAM REVENUES $ 2,855,557 $ 2,728,466 $ 2,750,913 $ 2,789,607 $ 2,891,462 $ 743,586 $ 652,857 $ 606,021 $ 451,403 $ 465,004

NET (EXPENSE) REVENUESGovernmental Activities $ (4,039,675) $ (4,643,699) $ (4,891,144) $ (5,374,205) $ (5,325,567) $ (8,029,437) $ (7,681,039) $ (8,031,229) $ (8,350,691) $ (8,077,397)Business-Type Activities 8,288 20,331 15,213 1,579 (45,597) 50,944 42,277 36,211 (20,267) 6,838

TOTAL DISTRICT-WIDE NET EXPENSES $ (4,031,387) $ (4,623,368) $ (4,875,931) $ (5 372 626) $ (5,371,164) $ (7,978,493) $ (7 638 762) $ (7,995,018) $ (8,370,958) $ (8,070,559)

GENERAL REVENUES & OTHER CHANGES IN NET POSITIONGovernmental Activities:

Property Taxes Levied for General Purposes, Net $ 3,010,117 $ 3,488,226 $ 3,714,408 $ 3,910,915 $ 4,086,329 $ 5,790,375 $ 5,979,490 $ 6,055,296 $ 6,055,296 $ 6,176,403Taxes Levied for Debt Service 584,087 565,336 551,123 568,356 553,625 538,505 509,311 526,121 532,545 537,661Unrestricted Grants & Contributions 638,776 689,659 941,125 972,218 813,646 1,865,231 1,651,392 1,883,405 1,986,350 1,861,933Investment Earnings 2,891 4,038 11,997 10,386 1,686 1,931 3,590 3,073 1,689 1,390Miscellaneous Income 5,836 8,146 594 3,414 1,850 5,193 83 441 9,037Special Item-Insurance Claim Proceeds for Storm Damage 55,286Operating Transfer 40,000 90,000

Total Governmental Activities 4,241,707 4,755,405 5,218,653 5,462,469 5,498,700 8,197,892 8,148,976 8,467,978 8,721,607 8,586,424

J-23 of 3



(Continued)

GENERAL REVENUES & OTHER CHANGES IN NETBusiness-Type Activities:


POSITION (Cont'd)

Investment Earnings $ 20 $ 280 $ 346 $ 95 $ 92 $ 168 $ 141 $ 55 $ 48Operating Transfer (40,000) (90,000)

Total Business-Type Activities 20 $ 280 346 (39,905) 92 168 141 (89,945) 48

TOTAL DISTRICT-WIDE $ 4,241,727 $ 4,755,405 $ 5,218,933 $ 5,462,815 $ 5,458,795 $ 8,197,984 $ 8,149,144 $ 8,468,119 $ 8,631,662 $ 8,586,472

CHANGE IN NET POSITIONGovernmental Activities $ 202,032 $ 111,706 $ 327,509 $ 88,264 $ 173,133 $ 168,455 $ 467,937 $ 436,749 $ 370,916 $ 509,027Business-Type Activities 8,308 20,331 15,493 1,925 (85,502) 51,036 42,445 36,352 (110,212) 6,886

TOTAL DISTRICT $ 210,340 $ 132,037 $ 343,002 $ 90,189 $ 87,631 $ 219,491 $ 510,382 $ 473,101 $ 260,704 $ 515,913

J-3CLINTON-GLEN GARDNER SCHOOL DISTRICTFUND BALANCES, GOVERNMENTAL FUNDS,

LAST TEN FISCAL YEARS(MODIFIED ACCRUAL BASIS OF ACCOUNTING)


General Fund:Restricted $ 2,214 $ 10,835 $ 8,631 $ 2,862 $ 2,862Committed 61,122 20,139 20,139 $ 139 $ 40,140 $ 70,276 167,217 197,547 $ 397,671 $ 577,993Assigned 83,889 6,837 65,452 3,576 4,311 316,332 176,262 29,479Unassigned 100,994 100,882 118,249 148,114 140,435 25,594 189,267 193,869 144,850 131,317

Total General Fund $ 248.219 $ 138,693 $ 212,471 $ 151,829 S 180,575 $ 95,870 $ 363,657 $ 710,610 $ 718.783 $ 738,789

All Other Governmental Funds:Restricted, Reported In:

Capital Projects Fund $ (16,114) $ 290Debt Service Fund (1,036) $ 32,498

Total All Other Governmental Funds $ (17,150) S 290 $ 32,498 $ $


2005

CLINTON-GLEN GARDNER SCHOOL DISTRICTCHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS,

LAST TEN FISCAL YEARS(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

2006 2007 2008 2009 2010 2011 2012 2013

J-4

2014Revenues:

Tax Levy $ 3,594,204 $ 4,053,562 $ 4,265,531 $ 4,479,271 $ 4,639,954 $ 6,328,880 $ 6.488,801 $ 6,581,417 $ 6,587,841 $ 6,714,064Tuition Charges 2,383,327 2,203,781 2,296,557 2,307,758 2,438,090 167,641 142,369 64,450 26,650 23,072Interest Earnings 2,891 4,038 11,997 10,386 1,686 1,931 3,590 3,073 1,669 1,390Miscellaneous 25,836 8,146 2,500 594 3,414 6,970 15,597 18,745 19,739 30,603State Sources 644,085 698,277 942,613 972,218 813,646 1,744,283 1,626,274 1,860,552 1,986.350 1,861,933State Sources-Capital Projects 55,020 64,576Federal Sources 210,954 205,597 197,806 225,534 217,793 381,956 213,130 181,104 172,926 160,499

Total Revenues 6,861,297 7,228.421 7,717,004 7,995,761 8,114,583 8,631,661 8,489,761 8,773,917 8,795,175 8,791,561Expenditures:

Instruction:Regular Instruction 2,130,709 2,253,707 2,259,424 2,398,807 2,505,608 2,350,284 2,167,949 2,140,059 2,297,341 2,315,569Special Education Instruction 541,423 532,463 579,784 632,853 634,331 860,755 861,954 813,675 851,116 891,693Other Special Instruction 144,228 157,326 180,375 200,480 112,272 148,018 182,015 192,768 218,102 197,423Other Instruction 64,895 57,749 72,779 87,107 76.656 93,907 71,266 71,386 80,908 82,361

Support Services:Tuition 87,523 130,806 117,067 120,312 176,784 96,486 95,361 166,803 142,727 171,096Student and Instruction Related Services 646,171 645,459 684,543 733,736 854.322 964,733 872,713 820,473 912,176 944,721General Administration 246,281 267,917 273,163 281,301 265,808 231,371 221,784 219,939 242,270 221,603School Administration Services 133,789 140,062 145,882 163,362 166,327 194,046 177,960 183,410 186,453 187,559Central Services/Business 145,827 152,329 158,005 143,074 159,785 157,272 147,860 151,469 152,881 157,048Administrative Information Technology 6,462 27,903 6,784 6,166 13,582 24,364 27,914 31,597 28,904Plant Operations and Maintenance 443,804 470,006 548,746 558,031 579,231 572,610 535,505 566.606 674,443 510,361Pupil Transportation 47,956 114,654 97,408 85,674 104,463 310,020 294,709 314,598 273,342 274,744Employee Benefits 935,680 1,006,020 1,097,901 1,143,407 1,172.060 1,378,060 1,288,745 1,274,384 1,280.565 1,217,177On-Behalf TPAF Pension & Soc Sec Contributions 390,523 449,451 669,706 703,327 539,398 544,550 547,095 624,779 781,792 652,189

Capital Outlay 37,568 14,994 4,300 3,000 225,000 240,000 67,743 195,772Capital Projects 15,515 122,035 153,845Special Revenue Funds 234,954 212,946 201,794 225,534 217,793 261,008 197,376 167,463 191,132 170,529Debt Service:

Principal 355,000 350,000 350,000 380,000 380,000 380,000 405,000 415,000 440,000 465,000Interest & Other Charges 230,122 214,680 202,639 189,614 174,833 127,166 137,816 122,393 107,680 87,806

Total Expenditures 6,838,430 7,320,507 7,643,516 8,056,403 8,350,837 8,683,868 8,229,472 8,666,964 8,932,268 8,771,555Excess (Deficiency) of RevenuesOver (Under) Expenditures 22,867 (92,086) 73,488 (60,642) (236,254) (52,207) 260,289 106,953 (137,093) 20,006

Other Financing Sources (Uses):Capital Leases (Non-Budgeted) 225,000 240,000Proceeds from Bond Issue 1,445,000Payments to Refunding Bond Escrow Agent (1,445,000)Insurance Claim Proceeds for Storm Damage 55,266Transfers In (Out) 40,000 (25,000) 90,000

Total Other Financing Sources (Uses) - 265,000 1,445,000 (25,000) 240,000 145,266 -

Net Change in Fund Balances $ 22,867 $ (92,086) $ 73,488 $ (60,642) $ 28,746 $ 1,392,793 $ 235,289 $ 346,953 $ 8,173 $ 20,006

Debt Service as a Percentage of Non-Capital Expenditures 9.44% 8.53% 7.80% 7.61% 7.33% 6.20% 7.06% 6.95% 6.59% 6.89%

Source: District Records

NOTE: Non-capital expenditures are total expenditures less capital outlay,capital projects and debt service.

NOTE: Effective for the school year 2009-2010 the school districts of the Town of Clinton and Borough of Glen Gardner were mergedto operate as one entity. Prior to the merger the Borough of Glen Gardner was a sending district to the Town of Clion a tuition basis. As such. some financial data may not be comparable.

90

J-5CLINTON-GLEN GARDNER SCHOOL DISTRICTLOCAL TAX LEVY BY CONSTITUENT DISTRICT

LAST FIVE FISCAL YEARS

Fiscal YearEnded June 30 Total

Town of Clinton Borough ofGlen GardnerGeneral Debt Service

2010 $ 6,328,880 $ 4,274,142 $ 538,505 $ 1,516,233

2011 6,488,801 4,418,753 509,311 1,560,737

2012 6,581,417 4,415,494 526,121 1,639,802

2013 6,587,841 4,392,907 532,545 1,662,389

2014 6,714,064 4,478,679 537,661 1,697,724



J -6CLINTON-GLEN GARDNER SCHOOL DISTRICT

GENERAL FUND-OTHER LOCAL REVENUES BY SOURCELAST TEN FISCAL YEARS

(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

Fiscal Year Ending June 30,Description 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Interest Income $ 2,891 $ 4,038 $ 11,997 $ 10,386 $ 1,686 $ 1,931 $ 3,590 $ 3,156 $ 1,669 $ 1,390Tuition 2,383,327 2,203,781 2,296,557 2,307,758 2,438,090 167,641 142,369 64,450 26,650 23,072Insurance Recovery 3,542 3,750Prior Year Refunds 1,800 1,651 440 1,025Miscellaneous Refunds 800Miscellaneous 82 50 114Building Use Fees 512 5,120 1,040 9,450 943 8,045Workshop Fee 150 3,490I Pad Insurance Fees 2,657Outstanding Checks Canceled 5,836 8,146 3,414 692

Annual Totals $ 2.392,054 $ 2,215,965 $ 2.308,554 $ 2,318,738 $ 2,443,190 $ 176,542 $ 152,192 77,056 $ 29,852 $ 45,035



J -7CLINTON-GLEN GARDNER SCHOOL DISTRICT

ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY,ALL CONSTITUENT DISTRICTS COMBINED

LAST TEN FISCAL YEARS

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Vacant Land $ 5,232,803 $ 5,376,003 $ 5,567,604 $ 6,342,904 $ 6,327,863 $ 6,521,263 $ 6,521,263 $ 6,223,363 $ 8,037,603 $ 7,321,203Residential 404,612,600 437,863,900 450,355,800 447,988,700 448,191,300 447,685,200 446,949,000 443,077,600 397,137,900 394,649,100Farm Regular 2,109,700 2,125,000 2,645,000 2,642,100 2,642,100 2,642,100 2,430,300 2,430,300 2,479,000 2,085,150Qualified Farm 123,487 124,737 124,737 110,237 110,237 110,237 88,887 88,887 88,887 92,392Commercial 76,816,100 85,988,300 89,357,300 94,565,400 95,029,050 94,853,850 94,238,800 86,116,000 80,205,200 78,468,600Industrial 568,600 568,600 568,600 568,600 568,600 568,600 568,600 568,600 568,600 568,600Apartment 7,638,200 8,251,200 9,034,300 12,196,000 12,196,000 12,196,000 10,843,800 10,843,800 9,900,000 9,606,500

Total AssessedValue 497,101,490 540,297,740 557,653,341 564,413,941 565,065,150 564,577,250 561,640,650 549,348,550 498,417,190 492,791,545

Public Utilities (a) 1,656,039 1,542,889 1,299,116 1,135,630 1,004,639 1,308,038 1,439,503 1,496,855 1,207,689

Net ValuationTaxable $ 498,757,529 $ 541,840,629 $ 558,952,457 $ 565,549,571 $ 566,069,789 $ 565,885,288 $ 563,080,153 $ 550,845,405 $ 499,624,879 $ 492,791,545

Estimated ActualCounty Equalized)Value $ 529,293,172 $ 576,021,554 $ 659,726,428 $ 647,526,471 $ 619 587.923 $ 608,258,225 $ 583,151,701 $ 562,668,493 $ 540,639,395 $ 539,108,373

Percentage of NetValuation to EstimatedActual CountyEqualized Value 94.23% 94.07% 84.72% 87.34% 91.36% 93.03% 96.56% 97.90% 92.41% 91.41%

Source: Municipal Tax Assessors

NOTE Real property is required to be assesses at some percentage of true value (fair or market value) established by each county board of taxation.Reassessment occurs when the County Board of Taxation requests Treasury to order a reassessment.

(a)

Taxable Value of Machinery, Implements and Equipment of Telephone and Message System Companies.

J-8CLINTON-GLEN GARDNER SCHOOL DISTRICT

ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY,BY CONSTITUENT DISTRICT-TOWN OF CLINTON


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Vacant Land $ 3,893,900 $ 4,048,000 $ 4,204,500 $ 4,979,800 $ 4,964,760 $ 5,158,160 $ 5,158,160 $ 4,891,560 $ 6,798,400 $ 5,995,800Residential 275,107,400 308,688,000 321,691,200 318,996,900 319,427,500 318,510,000 318,264,300 314,374,900 268,505,400 265,511,000Farm Regular 201,500 210,300 214,700 211,800 211,800 211,800 119,750Qualified Farm 73,800 73,800 73,800 59,300 59,300 59,300 38,200 38,200 38,200 53,850Commercial 71,988,300 81,165,500 84,436,500 89,817,400 90,159,550 89,984,350 89,369,300 81,246,500 75,335,700 73,645,300IndustrialApartment 6,758,200 7,371,200 7,829,100 10,990,800 10,990,800 10,990,800 9,638,600 9,638,600 8,694,800 8,401,300


Public Utilities (a) 1,182,636 1,069,486 1,012,182 884,156 753,165 1,056,564 1,150,337 1,207,689 1,207,689

Net ValuationTaxable $ 359,205,736 $ 402,626,286 $ 419,461,982 $ 425.940,156 $ 426,566,875 $ 425,970,974 $ 423,618,897 $ 411,397,449 $ 360,580,189 $ 353,727,000

Estimated ActualCounty Equalized)Value $ 363,127.513 $ 394,059,112 $ 452,680,802 $ 442,351,393 $ 420,954,544 S 419,286,974 $ 401,632,430 $ 390.744,000 $ 378,185,031 $ 381,523,007


Source: Municipal Tax Assessor

NOTE

Real property is required to be assesses at some percentage of true value (fair or market value) established by each county board of taxation.Reassessment occurs when the County Board of Taxation requests Treasury to order a reassessment.

(a) Taxable Value of Machinery, Implements and Equipment of Telephone and Message System Companies.


ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY,BY CONSTITUENT DISTRICT-BOROUGH OF GLEN GARDNER


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Vacant Land $ 1,338,903 $ 1,328,003 $ 1,363,104 $ 1,363,104 $ 1,363,103 $ 1,363,103 $ 1,363,103 $ 1,331,803 $ 1,239,203 $ 1,325,403Residential 129,505,200 129,175,900 128,664,600 128,991,800 128,763,800 129,175,200 128,684,700 128,702,700 128,632,500 129,138,100Farm Regular 1,908,200 1,914,700 2,430,300 2,430,300 2,430,300 2,430,300 2,430,300 2,430,300 2,479,000 1,965,400Qualified Farm 49,687 50,937 50,937 50,937 50,937 50,937 50,687 50,687 50,687 38,542Commercial 4,827,800 4,822,800 4,920,800 4,748,000 4,869,500 4,869,500 4,869,500 4,869,500 4,869,500 4,823,300Industrial 568,600 568.600 568,600 568,600 568,600 568,600 568,600 568,600 568,600 568,600Apartment 880,000 880,000 1,205,200 1,205,200 1,205,200 1,205,200 1,205,200 1,205,200 1,205,200 1,205,200


Public Utilities (a) 473,403 473,403 286,934 251,474 251,474 251,474 289,166 289,166

Net ValuationTaxable $ 139,551,793 $ 139,214,343 $ 139,490,475 $ 139,609,415 $ 139 502,914 $ 139,914,314 $ 139,461,256 $ 139,447,956 $ 139,044,690 $ 139,064,545

Estimated ActualCounty Equalized)Value $ 166,165,659 $ 181,962,442 $ 207,045,626 $ 205,175,078 $ 198,633,379 $ 188,971,251 $ 181,519,271 $ 171,924,493 $ 162,454,364 $ 157,585 366



NOTE

Real property is required to be assesses at some percentage of true value (fair or market value) established by each county board of taxation.Reassessment occurs when the County Board of Taxation requests Treasury to order a reassessment.

(a) Taxable Value of Machinery, Implements and Equipment of Telephone and Message System Companies.


DIRECT AND OVERLAPPING PROPERTY TAX RATESBY CONSTITUENT DISTRICT-TOWN OF CLINTON

LAST TEN FISCAL YEARS(RATE PER $100 OF ASSESSED VALUE)

AssessmentYear

School District Direct Rate

RegionalSchool

Tax Rate

Overlapping RatesTotal

Direct &Basic

Rate (a)

GeneralObligation Debt

Service (b)

(From J-6)Total

Direct SchoolTax Rate Municipality4 County

Fire OverlappingDistrict Tax Rate

2005 $ 0.91 $ 0.15 $ 1.06 $ 0.51 $$

0.38 $ 2.442006 0.90 0.13 1.03 0.48 0.44 0.35 2.302007 0.90 0.14 1.04 0.47 0.42 0.36 2.292008 0.94 0.13 1.07 0.47 0.44 0.35 2.332009 0.98 0.13 1.11 0.50 0.44 0.34 2.392010 1.03 0.12 1.15 0.51 0.46 0.34 2.462011 1.04 0.12 1.16 0.52 0.46 0.32 2.462012 1.08 0.12 1.20 0.53 0.48 0.33 2.54

2013 * 1.23 0.15 1.38 0.59 0.63 0.37 2.97

2014 1.27 0.15 1.42 0.57 0.69 0.40 3.08

Sources: Municipal Tax Collector

NJSA 18A:7F-5d limits the amount that the district can submit for a general fund tax levy. The levy when added to other components of the district's net budget mayNOTE: not exceed the pre-budget by more than the spending growth limitation calculated as follows: the prebudget year net budget increased by the cost of living or 2.5

percent, whichever is greater, plus any spending growth adjustments.

The district's basic tax rate is calculated from the A4F form which is submitted with the budget and the Net valuation taxable.Rates for debt service are based on each year's requirements.

* Revalued/Reassessed


DIRECT AND OVERLAPPING PROPERTY TAX RATESBY CONSTITUENT DISTRICT-BOROUGH OF GLEN GARDNER

LAST TEN FISCAL YEARS(RATE PER $100 OF ASSESSED VALUE)

School District Direct Rate

RegionalSchool

Tax Rate

Overlapping RatesTotal

Direct &Assessment Basic

Year Rate (a)

(From J-6)General Total

Obligation Debt Direct SchoolService (b) Tax Rate Municipality County

Fire OverlappingDistrict Tax Rate

2005 $ 0.97 $ 0.97 $ 0.63 $ 0.42 $ 0.45 $ 2.472006 1.04 1.04 0.73 0.44 0.42 2.632007 1.06 1.06 0.68 0.45 0.49 2.682008 1.10 1.10 0.75 0.45 0.49 2.792009 1.09 1.09 0.79 0.46 0.49 2.832010 1.11 1.12 0.76 0.48 0.46 2.822011 1.18 1.18 0.74 0.49 0.45 2.862012 1.19 1.19 0.69 0.50 0.44 2.822013 1.22 1.22 0.69 0.53 0.42 2.862014 1.21 1.21 0.74 0.58 0.42 2.95

Sources: Municipal Tax Collector

NJSA 18A:7F-5d limits the amount that the district can submit for a general fund tax levy. The levy when added to other components of the districts net budget mayNOTE: not exceed the pre-budget by more than the spending growth limitation calculated as follows: the prebudget year net budget increased by the cost of living or 2.5

percent, whichever is greater, plus any spending growth adjustments.

The district's basic tax rate is calculated from the A4F form which is submitted with the budget and the Net valuation taxable.Rates for debt service are based on each year's requirements.

* Revalued/Reassessed

J - 1 2CLINTON-GLEN GARDNER SCHOOL DISTRICT

PRINCIPAL PROPERTY TAXPAYERS,BY CONSTITUENT DISTRICT-TOWN OF CLINTON

CURRENT YEAR AND NINE YEARS AGO

2014 2005Taxable

AssessedValue Rank

% of TotalDistrict Net

Assessed Value

TaxableAssessed

Value Rank


Assessed Value

SNG Properties LLC $ 5,112,000 1 1.45%FMCD Realty 4,338,900 2 1.23% $ 1,828,900 7 0.51%Great Atlantic & Pacific Tea Co 3,860,400 3 1.09% 2,605,700 4 0.73%Clinton Garden Associates 3,615,700 4 1.02% 2,400,000 5 0.67%Clinton Unity Group LLC 3,281,500 5 0.93% 3,221,200 2 0.90%Goldstar Property LLC 3,257,800 6 0.92% 0.00%Hunterdon Realty LLC 3,091,000 7 0.87%RowlandHouse LLC & Clinton II LLC 2,677,800 8 0.76%Bank of America 1,823,600 9 0.52%Chrisellan Investors 1,725,300 10 0.49% 1,800,000 8 0.50%Clinton Hotel Assoc (Holiday Inn) 7,000,000 1 1.95%Century Development 2,765,900 3 0.77%Clinton Manor Associates 1,978,200 6 0.55%Individual Property Owner 1,322,900 9 0.37%Z & F LLC 1,210,800 10 0.34%

$ 32,784,000 9.27% $ 26,133,600 7.28%


J - 1 3

CLINTON-GLEN GARDNER SCHOOL DISTRICTPRINCIPAL PROPERTY TAXPAYERS,

BY CONSTITUENT DISTRICT-BOROUGH OF GLEN GARDNERCURRENT YEAR AND NINE YEARS AGO

2014 2005Taxable

AssessedValue Rank

Yo of TotalDistrict Net

Assessed Value

TaxableAssessed

Value Rank


Assessed Value

Individual Property Owner #1 $ 1,216,700 1 0.87% $ 1,196,996 1 0.86%Individual Property Owner #2 990,400 2 0.71% 738,838 3 0.53%Eastern Concrete Materials Inc 794,500 3 0.57%Individual Property Owner #3 604,900 4 0.43% 706,471 4 0.51%Individual Property Owner #4 595,700 5 0.43% 636,490 5 0.46%Glen Gardner Partnership 585,500 6 0.42% 576,018 6 0.41%Heartland Inc 584,000 7 0.42% 574,542 7 0.41%Individual Property Owner #5 535,400 8 0.39% 543,651 8 0.39%Individual Property Owner #6 531,600 9 0.38%Terminus Occidentalis LLC 531,200 10 0.38% 522,597 9 0.37%Pinnacle Materials Inc 781,634 2 0.56%United Telephone 510,059 10 0.37%

$ 6,969,900 5 01% $ 6,787,296 4.86%


99

J-14

CLINTON-GLEN GARDNER SCHOOL DISTRICTPROPERTY TAX LEVIES AND COLLECTIONS

BY CONSTITUENT DISTRICT-TOWN OF CLINTONLAST TEN FISCAL YEARS

Year EndingDecember 31,

Taxes Leviedfor the Year

Collected Within the Fiscal Yearof the Levy (a)

AmountPercentage

of Levy2004 $ 8,379,680 $ 8,281,860 98.83%2005 8,793,690 8,657,175 98.45%2006 9,275,600 9,045,726 97.52%2007 9,598,684 9,401,251 97.94%2008 9,917,195 9,686,129 97.67%2009 10,209,913 9,926,875 97.23%2010 10,456,542 10,188,834 97.44%2011 10,638,767 10,040,857 94.38%2012 10,461,890 10,193,519 97.43%2013 10,703,566 10,453,171 97.66%

Sources: District records including the Certificate and Report of School Taxes (A4F form)

School taxes are collected by the Municipal Tax Collector. Under New Jersey State Statute, a municipality(a) is required to remit to the school district the entire property tax balance, in the amount voted upon or

certified prior to the end of the school year.

100

J-15

CLINTON-GLEN GARDNER SCHOOL DISTRICTPROPERTY TAX LEVIES AND COLLECTIONS

BY CONSTITUENT DISTRICT-BOROUGH OF GLEN GARDNERLAST TEN FISCAL YEARS

Year EndingDecember 31,

Taxes Leviedfor the Year

Collected Within the Fiscal Yearof the Levy (a)

AmountPercentage

of Levy

2004 $ 3,401,029 $ 3,330,169 97.92%2005 3,447,499 3,384,229 98.16%2006 3,748,187 3,627,812 96.79%2007 3,743,444 3,664,547 97.89%2008 3,898,996 3,847,017 98.67%2009 3,952,336 3,861,141 97.69%2010 3,943,892 3,865,672 98.02%2011 3,983,013 3,912,840 98.24%2012 3,934,219 3,861,396 98.15%2013 3,979,459 3,935,405 98.89%

Sources: District records including the Certificate and Report of School Taxes (A4F form)

School taxes are collected by the Municipal Tax Collector. Under New Jersey State Statute, a(a) municipality is required to remit to the school district the entire property tax balance, in the amount voted

upon or certified prior to the end of the school year.


RATIOS OF OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARS

Fiscal YearEndingJune 30,

Governmental ActivitiesBusiness-Type

Activities% of

PersonalIncome (a)

PerCapita (a)

GeneralObligationBonds (b)

Certificates Bondof Capital Anticipation

Participation Leases Notes (BANs)Capital TotalLeases District

2005 $ 4,910,000 $ 64,020 $ 4,974,020 3.17% 1,9072006 4,560,000 28,021 4,588,021 2.93% 1,7722007 4,210,000 4,210,000 2.51% 1,6332008 3,830,000 3,830,000 2.18% 1,4882009 3,450,000 198,983 3,648,983 1.17% 1,4232010 3,130,000 121,478 3,251,478 1.09% 7182011 2,725,000 41,205 2,766,205 0.96% 5912012 2,310,000 200,834 2,510,834 1.34% 5692013 1,870,000 121,974 1,991,974 1.03% 4562014 1,405,000 41,158 1,446,158 N/A 331

Note Details regarding the district's outstanding debt can be found in the notes to the financial statements.

See Exhibit NJ J-14 for personal income and population data. These ratios are calculated using personal income and population forthe prior calendar year.Includes Early Retirement Incentive Plan (ERIP) refunding.

Effective for the school year 2009-2010 the school districts of the Town of Clinton and the Borough of Glen Gardnerwere merged to operated as one entity. Information prior to the school year 2009-2010 is based only on the Town ofClinton.

Note


RATIOS OF NET GENERAL BONDED DEBT OUTSTANDINGLAST TEN FISCAL YEARS

General Bonded Debt OutstandingFiscal Year General

Ending ObligationJune 30, Bonds

Net GeneralBonded Debt

Deductions Outstanding2005 $ 4,910,000 $ 4,910,0002006 4,560,000 4,560,0002007 4,210,000 4,210,0002008 3,830,000 3,830,0002009 3,450,000 3,450,0002010 3,130,000 3,130,0002011 2,725,000 2,725,0002012 2,310,000 2,310,0002013 1,870,000 1,870,0002014 1,405,000 1,405,000

Note Details regarding the district's outstanding debt can be found in the notes to the financial statements.

See Exhibit J-7 for property tax data.Population data can be found in Exhibit J-21.

Note Effective for the school year 2009-2010 the school districts of the Town of Clinton and the Borough of Glen Gardnerwere merged to operated as one entity. Information prior to the school year 2009-2010 is based only on the Town ofClinton

of ActualTaxable

Value (a) ofProperty

PerCapita (a)

1.37% 1,8961.13% 1,7691.00% 1,6360.90% 1,4940.81% 1,3440.55% 7080.48% 6180.42% 5320.37% 4270.29% N/A

103J - 1 8

CLINTON-GLEN GARDNER SCHOOL DISTRICTDIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

BY CONSTITUENT DISTRICT-TOWN OF CLINTONAS OF DECEMBER 31, 2013

GOVERNMENTAL UNIT

Debt Repaid with Property Taxes:

DebtOutstanding

Estimated %Applicable (a)

EstimatedShare of

OverlappingDebt

Municipality $ 3,130,380 100.00% $ 3,130,380Regional High School 2,815,000 5.00% 132,131County General Obligation Debt 69,514,672 1.81% 1,259,199

Subtotal, Overlapping Debt 4,521,710

School District Direct Debt 1,755,000

Total Direct and Overlapping Debt $ 6,276,710

Sources: Assessed Value Data Used to Estimate Applicable PercentagesProvided by the County Board of Taxation. Debt Outstanding DataProvided by Each Governmental Unit.

Note:

Overlapping Governments are those that Coincide, at least in Part, with the GeographicBoundaries of the District. This Schedule Estimates the Portion of the Outstanding Debt of ThoseOverlapping Governments that is Borne by the Residents and Businesses of the Municipality.This Process Recognizes that, when Considering the District's Ability to Issue and Repay Long-Term Debt, the Entire Debt Burden Borne by the Residents and Businesses Should be Taken intoAccount. However this Does Not Imply that Every Taxpayer is a resident, and ThereforeResponsible for Repaying the Debt, of Each Overlapping Payment.

For Debt Repaid with Property Taxes, the Percentage of Overlapping Debt Applicable is

(a) Estimated Using Taxable Assessed Property Values. Applicable Percentages were Estimated by

Determining the Portion of Another Governmental Unit's Taxable Value that is Within the District'sBoundaries and Dividing it by Each Unit's Total Taxable Value.

104J - 1 9

CLINTON-GLEN GARDNER SCHOOL DISTRICTDIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

BY CONSTITUENT DISTRICT-BOROUGH OF GLEN GARDNERAS OF DECEMBER 31, 2013

GOVERNMENTAL UNIT

Debt Repaid with Property Taxes:

DebtOutstanding

Estimated %Applicable (a)

EstimatedShare of

OverlappingDebt

Municipality $ 2,739,185 100.00% $ 2,739,185Regional High School 2,815,000 2.00% 56,300County General Obligation Debt 69,514,672 77.00% 532,781

Subtotal, Overlapping Debt 3,328,266

School District Direct Debt

Total Direct and Overlapping Debt $ 3,328,266

Sources: Assessed Value Data Used to Estimate Applicable PercentagesProvided by the County Board of Taxation. Debt Outstanding DataProvided by Each Governmental Unit.

Note:

Overlapping Governments are those that Coincide, at least in Part, with the GeographicBoundaries of the District. This Schedule Estimates the Portion of the Outstanding Debt of ThoseOverlapping Governments that is Borne by the Residents and Businesses of the Municipality.This Process Recognizes that, when Considering the District's Ability to Issue and Repay Long-Term Debt, the Entire Debt Burden Borne by the Residents and Businesses Should be Taken intoAccount. However this Does Not Imply that Every Taxpayer is a resident, and ThereforeResponsible for Repaying the Debt, of Each Overlapping Payment.

For Debt Repaid with Property Taxes, the Percentage of Overlapping Debt Applicable is

(a) Estimated Using Taxable Assessed Property Values. Applicable Percentages were Estimated byDetermining the Portion of Another Governmental Unit's Taxable Value that is Within the District'sBoundaries and Dividing it by Each Unit's Total Taxable Value.


LEGAL DEBT MARGIN INFORMATION,LAST TEN FISCAL YEARS

Legal Debt Margin Calculation for Fiscal Year 2014

Equalized Valuation Basis2013 $ 551,022,7862012 542,978,413201 1 573,055,975

$ 1,116,034,388

Average Equalized Valuation of Taxable Property $ 372,011,463

Debt Limit (3.0% of Average Equalization Value) $ 11,160,344 (a)Total Net Debt Applicable to Limit

Legal Debt Margin $ 11,160,344

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Debt Limit $ 9.429,178 $ 10,329,999 $ 11,327,610 $ 12,290,248 $ 12,832,722 $ 18,724,350 $ 18,243,612 $ 17,813,780 $ 17,007,105 $ 16,530,684

Total Net DebtApplicable 4,910,614 4,560,000 4,210,000 3,830,000 3,450,000 3,130,000 2,725,000 2,310 000 1,870,000 3,509,250

Legal Debt Margin $ 4,518,564 $ 5,769,999 $ 7,117,610 $ 8,460,248 $ 9,382,722 $ 15,594,350 $ 15,518,612 $ 15.503.780 $ 15,137,105 $ 13,021,434

Total Net DebtApplicable to theLimit as a Percent-age of Debt Limit 52.08% 44.14% 37.17% 31.16% 26.88% 16.72% 14.94% 12.97% 11.00% 21.23%

Source: Equalized Valuation Bases were Obtained from the Annual Report of the State of New Jersey.Department of Treasury, Division of Taxation

(a) Limit Set by NJSA 18A:24-19

Note Effective for the school year 2009-2010 the school districts of the Town of Clinton and the Borough of Glen Gardnerwere merged to operated as one entity. Information prior to the school year 2009-2010 is based only on the Town ofClinton

CLINTON-GLEN GARDNER SCHOOL DISTRICTDEMOGRAPHIC AND ECONOMIC STATISTICS


CONSTITUENT DISTRICT 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

SCHOOL DISTRICT POPULATION (a)

Town of Clinton 2,589 2,578 2,574 2,564 2,567 2,719 2,711 2,669 2,696 N/ABorough of Glen Gardner 1,974 1,970 1,964 1,958 1,961 1,705 1,700 1,675 1,685 N/A

4,563 4,548 4,538 4,522 4,528 4,424 4,411 4,344 4,381

PERSONAL INCOME (b)

Town of Clinton $ 156,743,238 $ 167,575,156 $ 175,986,954 $ 176,472,428 $ 169,578,587 $ 177,675,774 $ 188,034,960 $ 192,517,639 N/A N/ABorough of Glen Gardner 119,509,908 128,053,940 134,280,644 134,763,266 129,545,621 111,414,930 117,912,000 120,819,425 N/A N/A

$ 276,253,146 $ 295,629,096 $ 310,267,598 $ 311,235,694 $ 299,124,208 $ 289,090,704 $ 305,946,960 $ 313,337,064 $ $

PER CAPITA PERSONAL INCOME

County of Hunterdon 60,542 $ 65,002 $ 68,371 $ 68,827 $ 66,061 $ 65.346 $ 69,360 $ 72,131 N/A N/A

UNEMPLOYMENT RATE (c)

Town of Clinton 2.4%

2.6% 2.3%

3.0% 5.5%

5.6% 5.5%

5.7% 7.6% N/ABorough of Glen Gardner 2.2%

2.5% 2.2%

2.8% 5.2%

5.3% 5.2%

5.4% 4.9% N/A

Population Information Provided by the NJ Dept of Labor and Workforce DevelopmentPersonal Income has Been Estimated Based Upon Municipal Population and Per Capita Income Presented for the County of HunterdonUnemployment Data Provided by the NJ Dept of Labor and Workforce Development

J21

J-22 CLINTON-GLEN GARDNER SCHOOL DISTRICT

PRINCIPAL EMPLOYERSCURRENT YEAR AND NINE YEARS AGO

2014 2005

Employer

Percentage of Percentage ofTotal Municipal Total Municipal

Employees Rank Employment Employees Rank Employment

INFORMATION IS NOT AVAILABLE FOR THIS SCHOOL DISTRICT

J-23

2005

CLINTON-GLEN GARDNER SCHOOL DISTRICTFULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY FUNCTION/PROGRAM


2006 2007 2008 2009 2010 2011 2012 2013 2014FUNCTION/PROGRAM

Instruction:

Regular 55.6 54.3 50.2 45.7 39.3 35.2 33.2 29.8 33.2 34.2

Special Education 4.0 4.0 8.5 12.0 22.0 19.0 19.0 18.0 19.0 19.5

Support Services:

Student and Instruction Related Services 8.8 8.8 8.6 10.0 11.2 12.4 12.9 12.9 11.9 10.9

General Administration 2.2 2.2 2.2 2.2 2.2 1.5 1.5 1.5 1.5 1.5

School Administration Services 2.0 2.0 2.0 2.0 2.5 3.3 2.3 2.3 2.3 2.3

Central Services 2.3 2.3 2.3 2.3 1.8 1.9 1.9 1.9 1.8 1.8

Plant Operations and Maintenance 0.9 5.0

Total 74.9 73.6 73.8 74.2 79.0 74.2 70.8 66.4 69.7 75.2

Sources: District Personnel Records

N/A: Information not available


OPERATING STATISTICSLAST TEN FISCAL YEARS

Fiscal Year EnrollmentOperating

Expenditures ( a )Cost Per

PupilPercentage

ChangeTeachingStaff ( b) Teacher Ratio

Average DailyEnrollment(ADE) ( c )

Average DailyAttendance(ADA) ( c )

% Change inAverage Daily

Enrollment

StudentAttendancePercentage

2005 573 $ 6,200,225 $ 10,821 4.13% 57.0 1 to 10.05 572.6 547.5 0.39% 95.62%

2006 548 6,616,798 12,074 11.59% 57.0 1 to 9.61 547.4 523.1 -4.40% 95.56%

2007 555 7,086,577 12,769 5.75% 47.0 1 to 11.81 555.8 532.3 1.53% 95.77%

2008 542 7,483,789 13,808 8.14% 46.7 1 to 11.61 542.2 518.6 -2.45% 95.65%

2009 532 7,571,004 14,231 3.07% 49.2 1 to 10.80 533.6 511.0 -1.59% 95.76%

2010 517 8,176,702 15,816 11.13% 44.2 1 to 11.80 521.4 498.6 -2.29% 95.63%

2011 507 7,686,656 15,161 -4.14% 42.2 1 to 12.06 508.9 484.2 -2.40% 95.15%

2012 496 7,735,726 15,596 2.87% 42.2 1 to 11.75 492.1 472.7 -3.30% 96.06%

2013 477 8,316,845 17,436 11.79% 42.5 1 to 11.25 477.1 457.4 -3.05% 95.87%

2014 478 8,022,977 16,784 -3.74% 43.0 1 to 11.12 475.4 455.5 -0.36% 95.81%


( a ) Operating Expenditures Equal Total Expenditures Less Debt Service and Capital Outlay.

( b ) Teaching Staff Includes Only Full-Time Equivalents or Certificated Staff.

( c ) Average Daily Enrollment and Average Daily Attendance are Obtained from the School Register Summary (SRS).


SCHOOL BUILDING INFORMATIONLAST TEN FISCAL YEARS

DISTRICT BUILDING 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Elementary (1923)

Square Feet 75,668 75,668 75,668 75,668 75,668 75,668 75,668 75,668 75,668 75,668

Capacity (Students) 605 605 605 605 605 605 605 605 605 605

Enrollment 566 541 555 542 532 517 507 496 477 478

Number of Schools at June 30, 2014:Elementary 1Middle School 0High School 0Other 0

District Facilities Office

Year of Original Construction is shown in Parentheses. Increase in Square Footage and Capacity are the Result of Renovations andAdditions. Enrollment is Based on the Annual October District Count.

111J-26

CLINTON-GLEN GARDNER SCHOOL DISTRICTSCHEDULE OF REQUIRED MAINTENANCE


UNDISTRIBUTED EXPENDITURES - REQUIREDMAINTENANCE FOR SCHOOL FACILITIES

*School FacilitiesAmount Total

2005 $ 38,779 $ 38,7792006 42,521 42,5212007 87,825 87,8252008 61,246 61,2462009 66,116 66,1162010 75,229 75,2292011 45,886 45,8862012 144,525 144,5252013 153,784 153,7842014 160,104 160,104Total School Facilities $ 715,911 $ 715,911

* School Facilities as Defined Under EFCFA.(NJAC 6A:26-1.2 and NJAC 6A:26A-1 3)


112J-27

CLINTON-GLEN GARDNER SCHOOL DISTRICTINSURANCE SCHEDULE

JUNE 30, 2014(UNAUDITED)

Coverage DeductibleSchool Package Policy-New Jersey School Boards Association

Insurance Group:Property-Blanket Building & Contents (Fund Limit) $ 350,000,000 $ 5,000Comprehensive General Liability 16,000,000 1,000Excess Liability 10,000,000Workmen's Compensation 2,000,000School Board Legal Liability 16,000,000 5,000Crime/Dishonesty 1,000,000 1,000

Student Accident-Bollinger Insurance Co:Student Accident Policy 5,000,000

Catastrophe-Fireman's Fund 50,000,000

Public Employees' Faithful Performance-Selective Insurance:Treasurer 180,000School Board Secretary 175,000


SINGLE AUDIT SECTION

113

Veeeeetaf eataateotex, pt.Pulix44.eagae ewriz.w.

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Certified Public AccountantPublic School AccountantRegistered Municipal Accountant

100 Route 31 NorthWashington, NJ 07882 - 1530

Fax # (908) 689-8388(908) 689-5002


October 15, 2014


We have audited, in accordance with the auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government AuditingStandards issued by the Comptroller General of the United States, the financial statements of thegovernmental activities, the business-type activities, each major fund, and the aggregate remainingfund information of the Board of Education of the Clinton-Glen Gardner School District, as of and forthe year ended June 30, 2014, and the related notes to the financial statements, which collectivelycomprise the Board of Education's basic financial statements, and have issued our report thereondated October 15, 2014.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Board ofEducation's control over financial reporting (internal control) to determine the audit procedures thatare appropriate in the circumstances for the purpose of expressing our opinions on the financialstatements but not for the purpose of expressing an opinion on the effectiveness of the Board ofEducation's internal control. Accordingly, we do not express an opinion on the effectiveness of theBoard of Education's internal control.

A deficiency in internal control exists when the design or operation of a control does not allowmanagement 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 acombination of deficiencies, in internal control, such that there is a reasonable possibility that amaterial misstatement of the entity's financial statements will not be prevented, or detected andcorrected 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 meritattention by those charged with governance.

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

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Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Board of Education's financialstatements are free from material misstatement, we performed tests of its compliance with certainprovisions of laws, regulations, contracts, and grant agreements, noncompliance with which couldhave 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, andaccordingly, we do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance or other matters that are required to be reported under Government AuditingStandards.

Purpose of this Report

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

7)(Y/1/1,1 17 & 0_ e -11=-1----.71William M. Colantano, Jr.Public School Accountant

20€64e4t, ill. ecdetatemet.

70deeetot7:)14(recwooai etvritouttedio

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Certified Public AccountantPublic School AccountantRegistered Municipal Accountant

100 Route 31 NorthWashington, NJ 07882 - 1530

Fax # (908) 689-8388(908) 689-5002


October 15, 2014


Report on Compliance for Each Major Federal and State Program

We have audited the Board of Education of the Clinton-Glen Gardner School District's (theDistrict) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement and the New Jersey OMB State Grant Compliance Supplement thatcould have a direct and material effect on each of the Board of Education's major federal andstate programs for the year ended June 30, 2014. The Board of Education's major federal andstate programs are identified in the summary of auditor's results section of the accompanyingschedule of findings and questioned costs.

Management's Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts,and grants applicable to its federal and state programs.

Auditor's Responsibility

Our responsibility is to express an opinion on compliance for each of the Board of Education'smajor federal and state programs based on our audit of the types of compliance requirementsreferred to above. We conducted our audit of compliance in accordance with auditing standardsgenerally accepted in the United States of America; the standards applicable to financial auditscontained in Government Auditing Standards, issued by the Comptroller General of the UnitedStates; and OMB Circular A-133, Audits of States, Local Governments, and Non-ProfitOrganizations and New Jersey OMB 04-04. Those standards, OMB Circular A-133 and NJ OMB04-04 require that we plan and perform the audit to obtain reasonable assurance about whethernoncompliance with the types of compliance requirements referred to above that could have adirect and material effect on a major federal or state program occurred. An audit includesexamining, on a test basis, evidence about the Board of Education's compliance with thoserequirements and performing such other procedures as we considered necessary in thecircumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for eachmajor federal and state program. However, our audit does not provide a legal determination of theBoard of Education's compliance.

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Opinion on Each Major Federal and State Program

In our opinion, the Board of Education complied, in all material respects, with the types ofcompliance requirements referred to above that could have a direct and material effect on eachof its major federal and state programs for the year ended June 30, 2014.

Report on Internal Control Over Compliance

Management of The Board of Education is responsible for establishing and maintaining effectiveinternal control over compliance with the types of compliance requirements referred to above. Inplanning and performing our audit of compliance, we considered the Board of Education'sinternal control over compliance with the types of requirements that could have a direct andmaterial effect on each major federal and state program to determine the auditing proceduresthat are appropriate in the circumstances for the purpose of expressing an opinion on compliancefor each major federal program and to test and report on internal control over compliance inaccordance with OMB Circular A-133 and NJ OMB 04-04, but not for the purpose of expressingan opinion on the effectiveness of internal control over compliance. Accordingly, we do notexpress an opinion on the effectiveness of the Board of Education's internal control overcompliance.

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

Our consideration of internal control over compliance was for the limited purpose described in thefirst paragraph of this section and was not designed to identify all deficiencies in internal controlover compliance that might be material weaknesses or significant deficiencies. We did notidentify any deficiencies in internal control over compliance that we consider to be materialweaknesses. 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 ofour testing of internal control over compliance and the results of that testing based on therequirements of OMB Circular A-133. Accordingly, this report is not suitable for any otherpurpose.

20deiew 71t. eaeaataptex, Pt.

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Report on Schedules of Expenditures of Federal Awards Required by OMB Circular A-133and Expenditures of State Financial Assistance Required by NJ OMB 04-04

We have audited the financial statements of the District as of and for the year ended June 30,2014, and have issued our report thereon dated October 15, 2014, which contained anunmodified opinion on those financial statements. Our audit was conducted for the purpose offorming an opinion on the financial statements as a whole. The accompanying schedules ofexpenditures of federal awards and state financial assistance are presented for purposes ofadditional analysis as required by OMB Circular A-133 and NJ Circular 04-04 and are not arequired part of the financial statements. Such information is the responsibility of managementand was derived from and relates directly to the underlying accounting and other records used toprepare the financial statements. The information has been subjected to the auditing proceduresapplied in the audit of the financial statements and certain additional procedures, includingcomparing and reconciling such information directly to the underlying accounting and otherrecords used to prepare the financial statements or to the financial statements themselves, andother additional procedures in accordance with auditing standards generally accepted in theUnited States of America. In our opinion, the schedule of expenditure of federal awards is fairlystated in all material respects in relation to the financial statements as a whole.

William M. Colantano, Jr.Public School AccountantNo. CS 0128

K-3CLINTON-GLEN GARDNER SCHOOL DISTRICT

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS, SCHEDULE AFOR THE FISCAL YEAR ENDED JUNE 30, 2014

Grantor/Program Title

FederalCFDA

NumberProjectNumber

Programor AwardAmount

GrantPeriod

From To

Balance June 30, 2013Cash

ReceivedBudgetary

Expenditure Adjustment Repay of PriorYear Balance

Balance June 30, 2014(Acct Rec)

Def RevenueCarryoverAmount

Accounts Deferred Due toReceivable Revenue Grantor

US Department of Education Passed ThroughState Department of Education:

Special Revenue Fund:NCLB Title I 84.010A NCLB- $ 17,530 09/01/12-

091013 08/31/13 $ (4,820) $ 7,811 $ 2,991NCLB Title I 84.010A NCLB- 28,958 09/01/13-

091014 08/31/14 20,113 23,493 $ (8,845) $ 5,465NCLB Title II A 84.367A NCLB- 9,174 09/01/12-

091013 08/31/13 (4,215) 4,215NCLB Title II A 84.367A NCLB- 11,466 09/01/11-

091012 08/31/12 10 10NCLB Title II A 84.367A NCLB- 9,585 09/01/13-

091014 08/31/14 9,362 9,585 (223)IDEA Basic 84.027 IDEA- 138,408 09/01/12-

091013 08/31/13 (27,294) 27,294IDEA Basic 84.027 IDEA- 119,101 09/01/13-

091014 08/31/14 119,101 119,101IDEA Basic 84.027 IDEA- 130,002 09/01/10-

091011 08/31/11 300 300IDEA Pre School 84.173 IDEA- 5,329 09/01/13-

091014 08/31/14 5,329 5,329

Total Special Revenue Fund (36,019) $ 193,225 160,499 $ $ (9,068) 5,775 $

US Department of Agriculture PassedThrough State Department of Education:

Enterprise Fund:Food Donation Program 10.555 N/A 7,512 07/01/13-

06/30/14 7,512 6,031 1,481Food Donation Program 10.555 N/A 10,553 07/01/12-

06/30/13 1,611 1,611National School Lunch Program 10.555 N/A 28,982 07/01/13-

06/30/14 23,035 28,982 (5,947)National School Lunch Program 10.555 N/A 24,665 07/01/12-

06/30/13 (4,849) 4,849Total Enterprise Fund (3,238) 35,396 36,624 (5,947) 1,481

TOTAL FEDERAL FINANCIAL ASSISTANCE $ (39,257) $ $ 228,621 $ 197,123 $ $ $ (15,015) $ 7,256 $

SEE ACCOMPANYING NOTES TO SCHEDULES OF FINANCIAL ASSISTANCE

CO

K-41 of 2

CLINTON-GLEN GARDNER SCHOOL DISTRICTSCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE, SCHEDULE B


Grantor/Program TitleProjectNumber

BalanceProgram Grant 06/30/13or Award Period (Acct Rec) Cash BudgetaryAmount From To Def Revenue Received Expenditure Adjustment

Balance June 30, 2014 MEMOAccounts

ReceivableDeferredRevenue

Due toGrantor

Budgetary CumulativeReceivable Expenditures

State Department of EducationGeneral Fund:

Special Education Aid 13-495-034 $ 244,953 07/01/2012--5120-089 6/30/2013 $ (24,196) $ 24,196

Special Education Aid 14-495-034 230,446 07/01/2013--5120-089 6/30/2014 207,675 $ 230,446 $ (22,771) $ (22,771) $ 230,446

Equalization Aid 13-495-034 579,232 07/01/2012--5120-078 6/30/2013 (57,216) 57,216

Equalization Aid 14-495-034 613,561 07/01/2013--5120-078 6/30/2014 552,933 613,561 (60,628) (60,628) 613,561

Security Aid 13-495-034 25,136 07/01/2012--5120-084 6/30/2013 (2,483) 2,483

Security Aid 14-495-034 26,469 07/01/2013--5120-084 6/30/2014 23,853 26,469 (2,616) (2,616) 26,469

Adjustment Aid 13-495-034 276,489 07/01/2012--5120-085 6/30/2013 (27,312) 27,312

Adjustment Aid 14-495-034 292,658 07/01/2013--5120-085 6/30/2014 263,739 292,658 (28,919) (28,919) 292,658

Transportation Aid 13-495-034 30,835 07/01/2012--5120-014 6/30/2013 (3,046) 3,046

Transportation Aid 14-495-034 25,514 07/01/2013--5120-014 6/30/2014 22,993 25,514 (2,521) (2,521) 25,514

Non-Public Transportation Aid 13-495-034 2,349 07/01/2012--5120-014 6/30/2013 (2,349) 2,349 -

Non-Public Transportation Aid 14-495-034 3,719 07/01/2013--5120-014 6/30/2014 3,719 (3,719) (3,719) 3,719

Extraordinary Special Education Cost Aid 14-100-034 18,827 07/01/2013--5120-473 6/30/2014 18,827 (18,827) (18,827) 18,827

Extraordinary Special Education Cost Aid 13-100-034 40,672 07/01/2012--5120-473 6/30/2013 (40,672) 40,672

Reimbursement TPAF Social Security Contribution 13-495-034 273,266 07/01/2012--5095-002 6/30/2013 (23,474) 23,474

Reimbursement TPAF Social Security Contribution 14-495-034 255,573 07/01/2013--5095-002 6/30/2014 255,573 255,573 255,573

Other State Aid N/A N/A 07/01/2013-6/30/2014 750 750 750

On-Behalf TPAF Pension Contribution- 14-495-034 138,068 07/01/2013-Teachers' Pension and Annuity Fund -5095-006 6/30/2014 138,068 138,068 138,068

On-Behalf TPAF Pension Contribution- 14-495-034 12,187 07/01/2013-Non-Contributory Insurance -5095-007 6/30/2014 12,187 12,187 12,187

On-Behalf TPAF Pension Contribution- 14-495-034 246,361 07/01/2013-Post Retirement Medical Benefits -5095-001 6/30/2014 246,361 246,361 246,361

Total General Fund (180,748) 1,904,880 1,864,133 $ (140,001) $ $ (140,001) 1,864,133


N.)O

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CLINTON-GLEN GARDNER SCHOOL DISTRICTSCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE, SCHEDULE B


Grantor/Program TitleProjectNumber

Programor AwardAmount

GrantPeriod

From To

Balance6/30/2013(Acct Rec)

Def RevenueCash

ReceivedBudgetary

Expenditure Adjustment

Balance June 30, 2014 MEMO

AccountsReceivable

DeferredRevenue

Due to Budgetary CumulativeGrantor Receivable Expenditures

State Department of EducationDebt Service Fund:

Debt Service Aid-State Support 14-495-034 $ 1,002 07/01/13--5120-017 06/30/14 $ 1,002 $ 1,002 1,002

Total Debt Service Fund 1,002 1,002 $ 1,002

State Department of AgricultureEnterprise Fund:

State School Lunch Program 13-100-010 1,163 07/01/12--3350-023 06/30/13 (215) 215

State School Lunch Program 14-100-010 1,348 07/01/13--3350-023 06/30/14 995 1,348 (353) 1,348

Other State Aid 13-100-010 79 07/01/12--3350-023 06/30/13 (79) 79

Total Enterprise Fund (294) 1,289 1,348 (353) 1,348

TOTAL STATE FINANCIAL ASSISTANCE $ (181,042) $ 1,907,171 $ 1,866,483 $ $ (140,354) $ $ (140,001) $ 1,866,483


122K-5


NOTES TO THE SCHEDULES OF AWARDS AND FINANCIAL ASSISTANCEJUNE 30, 2014

NOTE 1. GENERAL

The accompanying schedules of financial assistance present the activity of all federal and statefinancial assistance programs of the Board of Education, Clinton-Glen Gardner School District.The Board of Education is defined in Note 1 (A) to the Board's financial statements. All federalfinancial assistance received directly from federal agencies, as well as federal financial assistancepassed through other government agencies, is included on the schedule of federal financialassistance.

NOTE 2. BASIS OF ACCOUNTING

The accompanying schedules of financial assistance are presented using the budgetary basis ofaccounting with the exception of programs recorded in the food service fund, which are presentedusing the accrual basis of accounting. These bases of accounting are described in Notes 1 (C)and 1 (D) to the Board's financial statements.

NOTE 3. RELATIONSHIP OF GENERAL PURPOSE FINANCIAL STATEMENTS

The financial statements present the general fund and special revenue fund on a GAAP basis.Budgetary comparison statements or schedules are presented for the general fund and specialrevenue fund to demonstrate finance-related legal compliance in which certain revenue ispermitted by law or grant agreement to be recognized in the audit year, whereas for GAAPreporting, revenue is not recognized until the subsequent year or when expenditures have beenmade.

The general fund is presented in the accompanying schedules on the modified accrual basis withthe exception of the revenue recognition of the last state aid payment in the current budget year,which is mandated pursuant to PL 2003, Ch 97 (A3521). For GAAP purposes, that payment is notrecognized until the subsequent budget year due to the state deferred and recording of the laststate aid payment in the subsequent year. The special revenue fund is presented in theaccompanying schedules on the grant accounting budgetary basis, which recognizesencumbrances as expenditures and also recognizes the related revenues, whereas the GAAPbasis does not.

The net adjustment to reconcile from the budgetary basis to the GAAP basis is $3,202 for thegeneral fund and $-0- for the special revenue fund. See Exhibit C-3 for a reconciliation of thebudgetary basis to the modified accrual basis of accounting for the general and special revenuefunds.

Financial assistance revenues are reported in the Board's financial statements on a GAAP basis asfollows:

Federal State TotalGeneral Fund $ 1,860,931 $ 1,860,931Special Revenue Fund $ 160,499 160,499Debt Service Fund 1,002 1,002Food Service Fund 36,624 1,348 37,972

$ 197,123 $ 1,863,281 $ 2,060,404

123K-5


NOTES TO THE SCHEDULES OF AWARDS AND FINANCIAL ASSISTANCEJUNE 30, 2014

NOTE 4. RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS

Amounts reported in the accompanying schedules agree with the amounts reported in the relatedfederal and state financial reports.

NOTE 5. OTHER

Revenues and expenditures reported under the USDA Commodities Program represent currentyear distributions respectively. The amount reported as TPAF Pension Contributions representsthe amount paid by the state on behalf of the district for the year ended June 30, 2014. TPAFSocial Security Contribution represents the amount reimbursed by the State for the employer'sshare of social security contributions for TPAF members for the year ended June 30, 2014.

124K-6

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CLINTON-GLEN GARDNER SCHOOL DISTRICTSCHEDULE OF FINDINGS AND QUESTIONED COSTS


SECTION I-SUMMARY OF AUDITOR'S RESULTS

Financial Statements

Type of Auditor's Report Issued: Unmodified

Internal Control Over Financial Reporting:Material weakness(es) identified? Yes X NoReportable conditions identifiedthat are not considered to be materialweaknesses? Yes X No

Noncompliance Material to Financial Statements Noted? Yes X No

Federal Awards NOT APPLICABLE

Internal Control Over Major Programs:Material weakness(es) identified?Reportable conditions identifiedthat are not considered to be materialweaknesses?

Type of Auditor's Report Issued on Compliancefor Major Programs? NOT APPLICABLE

Any Audit Findings Disclosed that are Requiredto be Reported in Accordance with Section .510(a) of Circular A-133 Yes No

Identification of Major Programs:

CFDA Numbers Amount Name of Federal Program

Yes

Yes

No

No

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CLINTON-GLEN GARDNER SCHOOL DISTRICTSCHEDULE OF FINDINGS AND QUESTIONED COSTS


SECTION I-SUMMARY OF AUDITOR'S RESULTS

Federal Awards (Cont'd) NOT APPLICABLE

Dollar Threshold used to Distinguish BetweenType A and Type B Programs:

Auditee qualified as a low-risk auditee

State Awards

Dollar Threshold used to Distinguish BetweenType A and Type B Programs:

Auditee Qualified as low-risk auditee

Type of Auditor's Report Issued on Compliancefor Major Programs:

Internal Control Over Major Programs:Material weakness(es) identified? Yes X NoReportable conditions identifiedthat are not considered to be materialweaknesses? Yes X No

Any Audit Findings Disclosed That are Requiredto be Reported in Accordance with NJ OMBCircular Letter 04-04? Yes X No

Identification of Major Programs:

GMIS Numbers 14-495-034-5120-07814-495-034-5120-08514-495-034-5120-08914-495-034-5095-002

Amount $ 613,561

292,658230,446255,573

Name of State ProgramEqualization AidAdjustment AidSpecial Education AidSocial Security Reimbursement

Yes No

$300,000

X Yes No

Unmodified

126K-6


SCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE FISCAL YEAR ENDED JUNE 30, 2014

SECTION II-FINANCIAL STATEMENT FINDINGS

There were no findings or questioned costs for the year ended June 30, 2014.

SECTION III-FEDERAL AWARDS AND STATE FINANCIALASSISTANCE FINDINGS AND QUESTIONED COSTS

There were no findings or questioned costs for the year ended June 30, 2014.

CLINTON-GLEN GARDNER SCHOOL DISTRICTSUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


There were no prior year findings or questioned costs.

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