COLOMA COMMUNITY SCHOOLS
Coloma, Michigan
FINANCIAL STATEMENTS
JUNE 30,2015
TABLE OF CONTENTS
Independent Auditors'Report
Management's Discussion and Analysis
1 -2
3-11
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position
Statement of Activities
12
13
Fund Financial Statements:
Balance Sheet - Governmental Funds
14
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Reconciliation of the Governmental Funds Statement of Net Position with the
Balance Sheet
15
16
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Balance Sheet - Fiduciary Fund
Notes to Financial Statements
17
18
19 - 39
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
MSPSERS Cost-Sharing Multiple-Employer Plan
Schedule of the School District's Proportionate Share of the Net Pension Liability
Schedule of School District Contributions
40
41
42
Other Supplemental Information
General Fund:
Balance Sheet
Schedule of Revenues
Schedule of Expenditures
43
44
45-48
Nonmajor Special Revenue Funds:
Balance Sheet
49
Statement of Revenues, Expenditures, and Changes in Fund Balances
50
Nonmajor Capital Projects Fund:
Balance Sheet
51
Statement of Revenues, Expenditures, and Changes in Fund Balance
52
Nonmajor Debt Retirement Fund:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures, And Changes in Fund Balance
53
54
TABLE OF CONTENTS
Trust Funds:
Combining Balance Sheet - All Trust Funds
Statement of Revenues, Expenditures, and Fund Balance - Trust Fund High School Activities Account
Statement of Revenues, Expenditures, and Fund Balance - Trust Fund
Junior High School and Middle School Activities Account
Statement of Revenues, Expenditures, and Fund Balance - Trust Fund
Elementary School Activities Account
Statement of Revenues, Expenditures, and Fund Balance - Trust Fund
Administrative Activity Funds
Statement of Revenues, Expenditures, and Fund Balance - Trust Fund
Scholarship and Memorial Funds
55
56 - 57
58
59
60
-
Statement of General Long-Term Debt
61
62
Additional Information
Schedule of Expenditures of Federal Awards
Notes to Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs
Schedule of Prior Audit Findings
63 - 66
67
68 - 69
70
Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
Independent Auditor's Report on Compliance with Requirements That Could Have a
Direct and Material Effect on Each Major Program and on Internal Control Over
Compliance in Accordance with OMB CircularA-133
71 - 72
73 - 74
401 North Sage Street, Kalamazoo, Ml 49006
Tel 269-382-5027
Bruce E. Justin, CPA
dl & C O M P A N Y
CERTIFIED
PUBLIC
www.ullrey.com
Jack A. Ullrey, CPA
f f U LLRE Y
b
Fax 269-382-3775
Jason M. Martin, CPA
ACCOUNTANTS
David W. Marshall, CPA
Jessica M. Ullrey, CPA
INDEPENDENT AUDITORS' REPORT
David S. Ullrey, CPA
To the Board of Education
Coloma Community Schools
Coloma, Michigan
We have audited the accompanying financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information of Coloma Community Schools as of, and for the year ended June 30,
2015, and the related notes to the financial statements, which collectively comprise the District's basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment ofthe
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, each major fund, and the aggregate remaining fund information of
the Coloma Community Schools, as ofJune 30, 2015, and the respective changes in financial position thereof for
the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and budgetary comparison information on pages 3 through 11 and 40 be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial statements,
is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial
Member of American Institute of Certified Public Accountants and Michigan Association of Certified Public Accountants
reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management about
the methods of preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of
the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the Coloma Community School's basic financial statements. The combining and individual nonmajor fund financial
statements are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional
analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations, and is also not a required part of the basic financial statements of Coloma Community
Schools.
The combining and individual nonmajor fund financial statements and the schedule of expenditures of federal
awards are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
-iXiS^^^TAf^^
Ullrey & Company
Certified Public Accountants
Kalamazoo, Michigan
October 27, 2015
(This page intentionally left blank)
MANAGEMENT'S DISCUSSION AND ANALYSIS
COLOMA COMMUNITY SCHOOLS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
This section of Coloma Community Schools' (the "District") annual financial report presents the Management's Discussion and
Analysis of the District's financial performance during the fiscal year ended June 30, 2015. It is required by Governmental
Accounting Standards Board Statement 34 (GASB 34). It should be read in conjunction with the District's financial statements
and the notes to the basic financial statements which immediately follow this section.
Generally accepted accounting principles (GAAP) according to GASB 34, require the reporting of two types of financial
statements: District-Wide Financial Statements and Fund Financial Statements.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual financial report consists of five sections:
1.
Management's Discussion and Analysis
2.
Basic Financial Statements and Notes to the Financial Statements
3.
4.
Required Supplementary Information
Other Supplemental Information
5.
Additional Information
The basic financial statements include two kinds of statements that present different views of the District's financial position
and activities:
The Statement of Net Position and the Statement of Activities provide information on a district-wide basis using accounting
methods similar to those used by private-sector companies. These statements present an aggregate view of The District's
finances. District-wide statements provide both short-term and long-term information about the District's overall financial
status. These two district-wide statements report the District's net assets and how they have changed.
•
The Statement of Net Position includes all of the District's assets, deferred outflows of resources, liabilities, and
deferred inflows of resources. Net position, computed as the difference between the District's assets plus deferred
outflows of resources and liabilities plus deferred inflows of resources, provides one way to measure the District's
financial health or financial position. Over time, increases or decreases in the District's net position are an indicator of
whether its financial position is improving or deteriorating, respectively. Additional non-financial factors, such as
changes in the District's property tax base, the political climate at the State of Michigan, student enrollment growth,
birth rates, and the condition of the school buildings and other facilities, should also be considered in assessing the
overall financial health of Coloma Community Schools.
•
The Statement of Activities includes all of the current year's revenues and expenses, regardless of when cash is
received or paid. The District's basic services are included in this statement, such as regular and special education,
transportation, other support services, food service, and administration. Property taxes and state school aid finance
most of these activities.
The remaining basic financial statements are fund financial statements that focus on individual parts of the District. Fund
financial statements generally report operations in more detail than district-wide financial statements. Some funds are
required by State law and by bond covenants. Coloma Community Schools establishes other funds to control and manage
money for particular purposes (like repayment of long-term debts) orto show that it is properly using certain revenues (like
school lunch and athletics).
•
The financial statements relating to the governmental funds include the District's basic services and provide a detailed
short-term view that can be used to determine whether there are more or fewer financial resources that can be spent
in the near future to finance the District's programs and services. Because this information does not encompass the
additional long-term focus of the district-wide financial statements, additional information is provided with the
governmental fund statements to explain the relationship ordifferences between them.
•
The fiduciary funds statements provide information about the financial relationships in which the District acts solely as
a trustee or agent for the benefit of others. The District is responsible for ensuring that the assets reported in these
funds are used only by the owners of these funds for the funds' intended purposes. We exclude these activities from
the district-wide financial statements because the District cannot use these assets to finance its operations.
The Notes to the Financial Statements provide further explanation of some of the information in the statements and provide
additional disclosures so statement users have a complete picture of the District's financial activities and position.
The Required Supplementary Information further explains and supports the financial statements with a comparison of the
District's budget for the year.
The section of Other Supplemental Information supports the basic fund financial statements and presents the financial
statements in more detail by including the General Fund, the Special Revenue Fund, the Debt Retirement Funds, and the
Trust Funds.
The Additional Information section provides information required by the federal government.
The following table summarizes the major features of the District's financial statements, including the portion of the District's
activities covered and the types of information they contain.
Major Features of District-Wide and Fund Financial Statements
Fund Financial Statements
Scope
District-wide Statements
Governmental
Entire district (except fiduciary
The
funds)
district,
basic
Fiduciary
services
of
the
such as instructional,
support
services,
and
Assets held by the district on
behalf of someone else
Student and other organizations
that have funds on deposit with
community services
the district are reported here
Required financial statements
Statement of Net Position
Balance Sheet
Statement of Activities
Statement
Balance Sheet
of
Revenues,
Expenditures, and Changes in
Statements
of
Changes
in
Fiduciary Net Assets
Fund Balances
Basis
of
accounting
and
measurement focus
Accrual accounting
Modified accrual accounting
Accrual accounting
Economic resources focus
Current
Economic resources focus
All assets and liabilities, both
Generally, assets expected to
financial and capital, short-term
be used up and liabilities that
financial and capital, short-term
and long-term
come due in the short-term
and long-term
No capital assets or long-term
These funds do not currently
financial
resources
focus
Type
of
asset and
liability
information
contain any capital assets
liabilities
Type of inflow and
information
outflow
All revenues and
expenses
Revenues for
All assets and liabilities, both
which cash is
All
additions
and
deductions
during the year, regardless of
received during or soon after
during the year, regardless of
when cash is received or paid
the end of the year
when cash is received or paid
Expenditures when goods or
services have been received
and the related liabilities are
due and payable
FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE
SUMMARY OF NET POSITION
The following summarizes the net position at fiscal years ended June 30, 2014 and 2015:
NET POSITION SUMMARY
TOTAL
as Restated
2014
2015
% CHANGE
ASSETS
Current assets
Capital assets, net of accumulated depreciation
TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
6,839,077
-39.5%
25,454,629
27,519,009
8.1%
36,754,845
34,358,086
-6.5%
1,385,775
3,189,494
130.2%
4,675,682
3,764,033
-19.5%
49,643,368
47,538,572
-4.2%
54,319,050
51,302,605
-5.6%
$ 11,300,216
$
LIABILITIES
Current liabilities
Non-current liabilities
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
-
2,366,149
n/a
NET POSITION
Investment in capital assets, net of related debt
Nonspendable
Restricted for capital projects
Restricted for debt service
Restricted for food service
Unrestricted
TOTAL NET POSITION
(2,573,646)
-107.6%
2,669,537
1,965,949
98,802
(18,359,029)
195,734
22,346
59,237
2,233,829
158,604
(18,790,924)
$(16,178,430)
$(16,121,174)
-0.4%
19,957
12.0%
-97.8%
13.6%
60.5%
2.4%
RESULTS OF OPERATIONS
For the fiscal years ended June 30, 2014 and 2015, the district-wide results of operations were:
CHANGE IN NET POSITION
TOTAL
2014
2015
% CHANGE
REVENUES
Program Revenue
Charges for services
Operating grants
$
542,967
3,380,260
21.1%
2,852,543
3,044,009
6.7%
1,425,520
9,603,146
1,259,906
9,332,443
-11.6%
46,571
189,308
2,693
297,687
-94.2%
18,084,979
17,859,965
-1.2%
10,338,610
5,100,799
22,304
725,200
478,853
740,328
12,622
9,429,823
5,125,192
19,901
791,002
439,178
720,815
-8.8%
448,196
3,519,695
$
-4.0%
General Revenue
Property taxes, levied for general operations
Property taxes, levied for debt service
State of Michigan aid, unrestricted
Interest and investment earnings
Other
TOTAL REVENUES
-2.8%
57.3%
EXPENSES
Instruction
Support services
Community services
Food services
Athletics
Interest on long-term debt
Transfers to and from other governmental units
Loss on disposal of fixed assets
Depreciation (unallocated)
436,116
680,041
596,757
17,854,832
17,802,709
-
TOTAL EXPENSES
INCREASE IN NET POSITION
-
$
230,147
$
57,256
0.5%
-10.8%
9.1%
-8.3%
-2.6%
-100.0%
n/a
36.8%
-0.3%
75.1%
Factors that directly affect revenue are as follows:
Property taxes levied forgeneral operations
Coloma Community Schools levies property taxes for operations of 18.0 mills (1.8%) on the taxable value of nonhomestead properties. Annually, the increase in the taxable value is capped at the rate of the prior year's Consumer
Price Index increase or 5%, whichever is less. If a property is sold, the taxable value may be adjusted to the State
Equalized Value, which theoretically represents 50% of the fair market value of the property. The property tax levies
for operations for the past five years have been steadily increasing.
The following summarizes the District's non-homestead levy for the past five years:
NON-HOMESTEAD
% INCREASE
TAX LEVY
FROM PRIOR YEAR
FISCAL YEAR
2014-2015
2013-2014
2012-2013
2011-2012
2010-2011
$
2,991,354
2,816,867
2,775,618
2,805,937
2,755,361
6.19%
1.49%
-1.08%
1.84%
1.94%
Average increase over past 5 years:
2.07%
The unpaid personal property taxes at fiscal years ended 2014 and 2015 was $0 and $0, which represents approximately
.00% and .00% of the total tax levy for general operations, respectively.
Property taxes levied for debt service
The District's debt fund tax levy, which is used to pay the principal and interest of the bond obligations, was 3.44 mills
(0.344%) in 2015 and 3.95 mills (0.395%) in 2014, of the taxable value of all properties, both homestead and non-homestead.
In addition, the District collects Industrial Facilities Taxes (IFT) in lieu of property taxes for taxpayers with a special exemption
related to capital expansions. The revenue from the debt fund property tax levy for fiscal years ended 2015 and 2014 was
$1,259,906 and $1,425,520, respectively.
State of Michigan School Aid
The State of Michigan School Aid is determined by the following variables:
•
•
•
State of Michigan State Aid Act per student foundation allowance
Student Enrollment - Blended at 90% of the current year fall count and 10% of the prior year winter count
The District's non-homestead levy
Annually, the State of Michigan sets the per student foundation allowance. The District's allowance was increased to $7,026
per student for the 2014 - 2015 school year.
The District's student enrollment for 2014 - 2015 was 1,608 students. The District's enrollment has been slowly declining the
past few years. With an unlimited number of School of Choice slots and an expanded enrollment period, the District benefited
from being a School of Choice School in Berrien County.
The following summarizes fall student enrollments in the past five years:
FTE CHANGE
FISCAL YEAR
2014-2015
2013-2014
2012-2013
2011-2012
2010-2011
STUDENT FTE
FROM PRIOR YEAR
1,608
1,718
1,746
1,813
1,823
(110)
(28)
(67)
(10)
-
REVENUE SOURCES
Coloma Community Schools
Revenue by Source
Property taxes,
County special othersources
education tax |
transfers
2%
Other local revenues
2%
Charges for services
1%
levied for debt
retirement
7%
CAPITAL ASSETS
At the end of fiscal year 2015, the District had $38.6 million invested in capital assets, including land, buildings and
improvements, furniture and equipment, and transportation equipment. The net book value of these assets is $26.7 million,
which reflects $11.1 million of accumulated depreciation. During the fiscal year 2014 - 2015, there were $10,764,310 in
additions of capital assets, of which $7,233,729 were recategorized from construction in process to buildings and
improvements upon projectcompletion during the 2014-15 school year.
CAPITAL ASSETS AT YEAR-END
(NET OF ACCUMULATED DEPRECIATION)
TOTAL %
$
Land
Buildings and improvements
Furniture and equipment
Construction in process
Buses
Other transportation equipment
Total net investment in capital assets
$
CHANGE
2015
2014
158,406
17,661,448
185,337
7,233,728
214,014
$
103,406
27,064,425
167,054
$
53.2%
-9.9%
n/a
-
1,696
25,454,629
-34.7%
184,037
-14.0%
87
-94.9%
27,519,009
8.1%
DEBT
At the end of this year, the District had $27,323 million in bonds outstanding versus $28,028 million the previous year - a 2.5%
decrease.
LONG TERM DEBT AT YEAR-END
2014
1991 Bond
2012 Bond
$
2,000,000
19,475,000
2015
$
1,575,000
19,195,000
Qualified Zone
Academy Bonds
1,553,275
1,553,275
5,000,000
5,000,000
Qualified Zone
Academy Bonds
$
28,028,275
$
27,323,275
The District's general obligation bond rating from Standard and Poor's remained at AAA. The state limits the amount of
general obligation debt that schools can issue to 15 percent of the assessed value of all taxable property within the District's
boundaries. If the District issues"qualified debt," i.e., debt backed bythe State of Michigan, such obligations are not subject to
thisdebt limit. We present more detailed information about our long-term liabilities in the notes to the financial statements.
In May 2012, voters approved two bond proposals totaling $19,910,000. Thefirst bond included remodeling, refurnishing, and
equipping school facilities, improving athletic and playgrounds, purchasing buses, and improving sites. The second bond,
which has been in effect the past two years, added new high school offices, a new kitchen/cafeteria common area, and
expanded and remodeled the auditorium. The project was completed during the 2014-15 school year. The approved rate is
2.75 mills.
BUDGET HIGHLIGHTS
The Uniform Budget Act of the State of Michigan requires the local Board of Education approve the original budget prior to
July 1for the upcoming fiscal year. Budgets are prepared for the General Fund, the Special Revenue Fund, Capital Projects
Fund, and the DebtService Fund. The District amends the budget during the year as needed.
ANALYSIS OF GENERAL FUND BUDGET VS. ACTUAL
Total Revenues
ORIGINAL
FINAL
BUDGET
BUDGET
ACTUAL
$15,410,546
$ 15,338,676
$
$
$ 15,809,736
Increase (Decrease) in Revenues
(399,190)
Percentage Increase (Decrease) in Revenues
Total Expenditures
(71,870)
-0.47%
-2.52%
$ 15,838,954
Increase (Decrease) in Expenditures
$ 16,020,997
$ 15,625,009
$
$
182,043
Percentage Increase (Decrease) in Expenditures
(395,988)
1.15%
-2.47%
The final General Fund Revenue Budget reflects the following major changes from the original budget:
•
Federal source revenues are under budget by $231 thousand including $213 thousand in Title I and $81 thousand in
Title II funding that will be available for expenditure in 2015-16. This is offset by other federal programs that were over
budget including Summer Migrant and Medicaid Outreach.
•
State source revenues are under budget by $114 thousand. This includes $228 thousand of Great Start Readiness
Program/Little Learners revenue that was included in the State source budget but is properly classified as an
Intermediate source as it comes from Berrien RESA. This is offset by other state programs that were over budget
includingAt-Risk, Technology Infrastructure and Special Education.
•
Intermediate source revenues are over budget by $228 thousand of Great Start Readiness Program/Little Learners
revenue that was included in the State source budget but should have been budgeted as an Intermediate source.
The final General Fund Expenditure Budgetreflects the following majorchanges from the original budget:
•
Title I is under budget by $213 thousand.
•
Title II is under budget by $81 thousand.
•
Pupil Transportation is under budget by$42 thousand as a resultof an improvement in route planning.
•
Athletics are under budget by $30 thousand due to an improved purchasing process.
•
The changes in professional staff members can be summarized as follows:
FTE
FTE
INCREASE
2013-2014
2014-2015
(DECREASE)
Instructional Teachers
81
81
Special Education Teachers
12
11
8
7
Support Teachers
10
(D
(1)
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Coloma Community Schools' finances. Questions
concerning any of the information provided in this report orrequests for additional information should be addressed to:
Administration Office
Coloma Community Schools
P.O. Box 550
Coloma, Ml 49038-0550
Telephone: (269)468-2424
11
BASIC FINANCIAL STATEMENTS
COLOMA COMMUNITY SCHOOLS
STATEMENT OF NET POSITION
JUNE 30, 2015
GOVERNMENTAL
ACTIVITIES
ASSETS
$
Cash and certificates of deposit
Investments
3,948,723
172,535
439
Accounts receivable
2,695,034
8,357
13,989
38,588,329
(11,069,320)
Due from other governmental units
Inventory
Prepaid expenses
Capital assets
Less: accumulated depreciation
34,358,086
TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension amounts
3,189,494
LIABILITIES
Accounts payable
Salaries payable
Payroll deductions and withholdings
352,915
986,202
2,670
650,941
Accrued expenses
Due to other funds
Accrued interest
119,009
475,411
Unearned revenues
Bonds and notes payable
Due within one year
Due in more than one year
Net pension liability
1,176,885
26,146,390
21,392,182
TOTAL LIABILITIES
51,302,605
DEFERRED INFLOWS OF RESOURCES
Deferred pension amounts
2,366,149
NET POSITION
Invested in capital assets, net of related debt
Nonspendable
195,734
22,346
2,233,829
158,604
59,237
Restricted for debt service
Restricted for food service
Restricted for capital additions
Unrestricted
(18,790,924)
TOTAL NET POSITION
$
The accompanying notes are an integral part of these financial statements.
12
(16,121,174)
COLOMA COMMUNITY SCHOOLS
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2015
GOVERNMENTAL
ACTIVITIES
PROGRAM REVENUES
NET (EXPENSE)
REVENUE AND
CHARGES FOR
OPERATING
CHANGES IN NET
SERVICES
GRANTS
ASSETS
EXPENSES
GOVERNMENTAL ACTIVITIES
$
Instruction
Supporting services
Community services
Food services
Athletics
Interest on long-term debt
Transfers to and from other governmental units
Loss on disposal of fixed assets
Depreciation (unallocated)
TOTAL GOVERNMENTAL ACTIVITIES
9,429,823
5,125,192
19,901
791,002
439,178
720,815
$
$2,140,262
-
757,130
$
331,025
-
-
-
-
-
542,967
130,876
-
331,025
(7,287,911)
(4,631,124)
(19,901)
(404,834)
(720,815)
-
-
680,041
596,757
$
482,868
-
164,748
34,344
-
$ 17,802,709
1,650
11,200
(680,041)
(596,757)
(13,879,482)
$ 3,380,260
GENERAL REVENUES
Taxes
Property taxes, levied for general
operations
3,044,009
1,259,906
9,332,443
2,693
297,687
Property taxes, levied for debt service
State of Michigan aid, unrestricted
Interest and investment earnings
Other
TOTAL GENERAL REVENUES
13,936,738
CHANGE IN NET POSITION
57,256
NET POSITION - JULY 1, 2014
(16,178,430)
NET POSITION - JUNE 30, 2015
$
The accompanying notes are an integral part of these financial statements.
13
(16,121,174)
COLOMA COMMUNITY SCHOOLS
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2015
SPECIAL
GENERAL
REVENUE
$1,387,838
140,044
$171,957
CAPITAL
DEBT
PROJECTS
SERVICE
TOTALS
$ 2,232,921
$ 3,948,723
172,535
ASSETS
Cash and cash equivalents
Investments
Accounts receivable
$
-
156,007
32,491
439
-
-
439
-
-
Interest receivable
Due from other governmental units
2,693,217
Due from other funds
909
Inventory
Prepaid expenses
-
.
129,986
8,357
13,989
TOTAL ASSETS
-
$4,235,997
$310,739
$
$
238,866
986,202
2,670
621,212
129,986
475,411
$114,049
$
2,454,347
143,778
-
-
-
-
-
188,498
2,695,034
130,895
8,357
13,989
1,817
-
-
$ 2,234,738
$ 6,969,972
$
$
LIABILITIES
LIABILITIES
Accounts payable
Salaries payable
Payroll deductions and withholdings
Accrued expenses
Due to other funds
Unearned revenues
TOTAL LIABILITIES
-
-
-
-
-
-
29,729
-
-
-
909
-
129,261
-
-
129,261
909
352,915
986,202
2,670
650,941
130,895
604,672
2,728,295
FUND BALANCES
Nonspendable:
Inventory
Prepaid expenses
8,357
-
-
-
-
-
-
-
-
-
-
-
13,989
8,357
13,989
Restricted for:
Debt retirement
Capital projects
School activities
158,604
-
Unassigned:
Reported in general fund
TOTAL FUND BALANCES
TOTAL LIABILITIES
AND FUND BALANCES
1,767,661
-
1,781,650
166,961
$ 4,235,997
$310,739
2,233,829
59,237
$
-
-
-
-
-
1,767,661
59,237
2,233,829
4,241,677
188,498
$ 2,234,738
$ 6,969,972
The accompanying notes are an integral part of these financial statements.
14
2,233,829
59,237
158,604
COLOMA COMMUNITY SCHOOLS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
SPECIAL
REVENUE
GENERAL
CAPITAL
DEBT
PROJECTS
SERVICE
TOTALS
$1,260,394
$ 4,306,517
152,968
34,344
936,282
REVENUES
Local sources
Taxes, penalties and interest
$ 3,045,478
Food service
-
Athletics
Other local revenue
34,344
74,575
$
112
152,968
$
533
-
-
-
-
-
858,967
2,740
-
Intermediate sources
Other intermediate sources
228,706
-
-
-
-
-
228,706
State sources
State school aid
Other
Federal sources
TOTAL REVENUES
23,897
9,332,443
1,060,256
1,562,874
733,233
15,338,676
912,950
-
-
-
-
-
859,500
1,260,394
9,356,340
1,060,256
2,296,107
18,371,520
EXPENDITURES
Education
Instruction
Supporting services
9,841,271
5,286,588
Food service
Other local expenditures
Capital outlay
-
-
-•
-
807,049
-
Athletics
-
-
463,249
19,901
14,000
-
-
-
-
-
-
-
-
46,782
3,469,800
-
9,841,271
5,286,588
807,049
463,249
19,901
3,530,582
Debt service
Principal repayment
Interest and fiscal charges
TOTAL EXPENDITURES
-
-
-
-
-
-
15,625,009
853,831
3,469,800
705,000
724,398
705,000
724,398
1,429,398
21,378,038
EXCESS OF REVENUES
(UNDER) EXPENDITURES
(286,333)
59,119
(2,610,300)
(169,004)
(3,006,518)
OTHER FINANCING SOURCES (USES)
Payments received from other
governmental units
Transfers
331,025
-
Fund modifications
-
-
-
-
-
436,884
331,025
436,884
(436,884)
(445,924)
9,040
(114,899)
9,040
(401,232)
68,159
(2,610,300)
2,182,882
98,802
2,669,537
1,965,949
6,917,170
$1,781,650
$ 166,961
59,237
$ 2,233,829
$ 4,241,677
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
436,884
-
$
267,880
The accompanying notes are an integral part of these financial statements.
15
331,025
(2,675,493)
COLOMA COMMUNITY SCHOOLS
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF NET POSITION
WITH THE BALANCE SHEET
JUNE 30, 2015
Amounts reported for governmental activities in the Statement of Net Position are different because:
Total governmental fund balances
$
Capital assets used in governmental activities are not financial resources;
therefore, are not reported in the funds. The cost of the assets is $38,588,329 and
the accumulated depreciation is $11,069,320.
4,241,677
27,519,009
Long-term liabilities, including bonds and notes payable, are not due and payable
in the current period; therefore, are not reported in the funds.
(27,323,275)
Net pension amounts are recognized in the Statement of Net Position, but are not
reported in the fund statements.
(20,568,837)
Unearned revenue related to bond purchases is a Unearned item in the
governmental funds, but not in the Statement of Financial Position (where it
increases long-term debt).
129,261
Accrued interest is not included as a liability in governmental funds.
(119,009)
Net position of governmental activities
$ (16,121,174)
The accompanying notes are an integral part of these financial statements.
16
COLOMA COMMUNITY SCHOOLS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2015
Net Change in Fund Balances - Total Governmental Funds
$ (2,675,493)
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures: In the Statement of
Activities, these costs are allocated over their estimated useful lives as depreciation.
Depreciation expense
(Loss) on disposal of assets
Capital outlay
$
(786,160)
(680,041)
3,530,582
2,064,381
Calculations related to change in net pension liabilityare recognized as a reduction of
expenditures in the Statement of Activities but are not recorded in the Government fund
statements.
802,365
Accrued interest is recorded in the Statement of Activities when incurred but not reported
in governmental funds until paid.
3,583
Purchases of bonds is an income item in the governmental funds, but not in the
Statement of Activities (where it increases long-term debt).
(842,580)
Repayment of bond principal is an expenditure in the governmental funds, but not in the
Statement of Activities (where it reduces long-term debt).
Changes in Net Position of Governmental Activities
705,000
$
The accompanying notes are an integral part of these financial statements.
17
57,256
COLOMA COMMUNITY SCHOOLS
BALANCE SHEET
FIDUCIARY FUND
YEAR ENDED JUNE 30, 2015
TRUST AND
AGENCY
ASSETS
Cash
$
192,157
LIABILITIES
Accounts payable
Books deposits, fees, etc.
Amounts due to student activity accounts
10,655
12,154
169,348
TOTAL LIABILITIES
$
The accompanying notes are an integral part of these financial statements.
18
192,157
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE A - SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Coloma Community Schools conform to accounting principles generally accepted in the United
States of America as applicable to school districts. The following is a summary of the significant policies:
REPORTING ENTITY
Coloma Community Schools operates a school district for pre-kindergarten through twelfth grade level in Coloma, Michigan.
The District is governed by an elected Board of Education. As required by generally accepted accounting principles, these
financial statements present the reporting entity of the Coloma Community Schools. The criteria identified in GASB
Statements 14 and 39, including financial accountability, have been utilized in identifying the District's reporting entity which
includes no component units. In addition, under the criteria of the GASB pronouncement, student, parent, and teacher
organizations are not included, except to the extent the District holds assets in the capacity of an agent.
BASIC FINANCIAL STATEMENTS - GOVERNMENT-WIDE STATEMENTS
The District's basic financial statements include both government-wide (reporting the District as a whole) and fund
financial statements (reporting the District's major funds). The government-wide financial statements categorize primary
activities as either governmental or business type. All of the District's activities are classified as governmental activities.
Fiduciary funds are not included in the government-wide financial statements.
In the government-wide Statement of Net Position, the governmental activities column is presented on a consolidated
basis and is reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as
well as long-term debt and obligations. The District's net assets are reported in four parts - invested in capital assets, net
of related debt, restricted net position, and unrestricted net position.
The District first utilizes restricted resources to finance qualifying activities.
The government-wide Statement of Activities reports both the gross and net cost of each of the District's functions. The
functions are also supported by general government revenues (property taxes, certain intergovernmental revenues, fines,
permits, and charges, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related
program revenues and operating grants. Program revenues must be directly associated with the function. Operating
grants include operating-specific and discretionary (either operating or capital) grants.
The net costs (by function) are normally covered by general revenue (property taxes, state sources and federal sources,
interest income, etc.).
The District does not allocate indirect costs.
In creating the government-wide financial statements, the District has
eliminated interfund transactions.
The government-wide focus is more on the sustainability of the District as an entity and the change in the District's net
position resulting from the current year's activities.
BASIC FINANCIAL STATEMENTS - FUND STATEMENTS
The accounts of the District are organized on the basis of funds and account groups, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise
its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures.
Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to
be spent and the means by which spending activities are controlled.
19
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE A - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
NEW ACCOUNTING STANDARDS
During the fiscal year 2015, the District implemented GASB 68, Accounting and Financial Reporting for Pensions. This
Statement changes the way a public pension discloses its pension information. The primary objective of this Statement is to
improve accounting and financial reporting by state and local governments for pensions. It also improves information by state
and local governmental employers about financial support for pensions that is provided by other entities. This Statement
results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for
pensions with regard to providing decision-useful information, supporting assessments of accountability and interperiod equity,
and creating additional transparency.
During the fiscal year 2013, the District implemented GASB 63, Financial Reporting of Deferred Outflows of Resources,
Deferred Inflows of Resources, and Net Financial Position.
This Statement will improve financial reporting by
standardizing the presentation of deferred outflows and deferred inflows of resources and their effects on a government's net
position. This Statement alleviates uncertainty about reporting those financial statement elements by providing guidance
where none previously existed.
During the fiscal year 2013, the District implemented GASB 65, Items Previously Reported as Assets and Liabilities. This
Statement will improve financial reporting by evaluating assets previously reported as assets and liabilities and consider if
those should instead be reported as deferrals.
GOVERNMENTAL FUNDS
General Fund - The General Fund is the general operating fund of the District and is used to account for all financial
resources except those required to be accounted for in another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
restricted or committed to expenditures for specified purposes other than debt retirement or capital projects.
Debt Retirement Funds - Debt Retirement Funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for principal and interest.
Capital Projects Funds - Capital Projects Funds are used to account for and report financial resources that are restricted,
committed or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other
capital assets.
FIDUCIARY FUND
Trust and Agency Fund
The Trust and Agency Fund is used to account for assets held by the District in a trustee capacityor as an agent for school
organizations and various school activity groups. Agency Funds are custodial in nature (assets equal liabilities) and do not
involve measurement of results of operations; and therefore, are not included in the government-wide financial statements.
20
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE A - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
BASIS OF ACCOUNTING
Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial
statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus
applied.
Accrual
Governmental activities in the government-wide financial statements are presented on the accrual basis of accounting.
Revenues are recognized when earned and expenses are recognized when incurred.
Modified Accrual
The Governmental Funds Financial Statements are presented on the modified accrual basis of accounting. Under the
modified basis of accounting, revenues are recorded when both measurable and available. "Available" is defined as
collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Coloma
Community Schools considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period. Expenditures are generally recognized when incurred.
Revenues are generally considered available when they are received in cash (unless legallyrestricted for some future period),
or when expected to be collected soon enough after year-end to pay liabilities of the current period.
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is
incurred, provided the liability would be liquidated with expendable available financial resources.
PROPERTY TAX CALENDAR
The property tax levy year runs from July 1 to June 30. Property taxes become a lien on the first day of the levy year and are
due on or before September 14 or February 14. School property taxes are assessed and collected in accordance with
enabling state legislation by municipalities within the District's boundaries. Real property taxes, uncollected as of March 1, are
purchased by Berrien and Van Buren County, and remitted to the District by May 15.
STATE OF MICHIGAN SCHOOL AID
The State of Michigan utilizes a foundation allowance approach, which provides for a specific annual amount of revenue per
student based on a statewide formula. The foundation allowance is funded from a combination of state and local sources.
Revenues from state sources are primarily governed by the School Aid Act and the School Code of Michigan. The state
portion of the foundation is provided from Michigan's School Aid Fund and is recognized as revenue in accordance with state
law and accounting principles generally accepted in the United States of America.
21
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE A • SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
BUDGETS AND BUDGETARY ACCOUNTING
Coloma Community Schools follows these procedures in establishing the budgetary data reflected in the financial statements.
a.
Prior to June 30, the School Superintendent submits to the School Board a proposed operating budget for the fiscal
year commencing the following July 1. The operating budget includes proposed expenditures and the means of
financing them for the General and Special Revenue Funds.
b. A public hearing is held to obtain comments from the Districttaxpayers.
c.
Prior to July 1, the budget is legally enacted through passage of a resolution by the Board of Education and in
accordance with Public Act 621 of the State.
d.
Formal budgetary integration is employed as a management control device during the year for the General Fund,
Special Revenue Funds and for the Debt Retirement Fund.
e.
The District is required under Public Act 621 of 1978 and by accounting principles generally accepted in the United
States of America to adopt a budget for the General Fund and individual Special Revenue Funds.
f.
Budgeted amounts are reported in the financial statements as originally adopted or as amended by the Board of
Education.
INVENTORIES
Inventory is valued at lower of cost (first-in, first-out) or market. Inventory in the Special Revenue Funds consists of
expendable supplies held for consumption. The cost is recorded as an expenditure at the time inventory items are purchased.
The inventory in the Lunch Fund includes USDA commodities valued at market value.
ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect certain reported amounts of assets, deferred
outflows, deferred inflows and liabilities and disclosures of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could
differ from those estimates.
CAPITALIZATION POLICY
All capital assets are capitalized at cost (or estimated historical cost) using a $5,000 capitalization threshold and updated for
additions and retirements during the year. Donated fixed assets are recorded at their fair market value as of the date
received. The District does not possess any infrastructure. Improvements are capitalized to the extent they add to the value of
the asset or materially extend an asset's life. The cost of normal maintenance and repairs is not capitalized.
All reported capital assets are depreciated. Improvements are depreciated over the remaining useful lives of the related
capital assets. Depreciation is computed using the straight-line method over the following useful lives:
GOVERNMENTAL ACTIVITIES
DESCRIPTION
Buildings and Improvements
Furniture and Equipment
Buses
Vehicles
ESTIMATED LIVES
20 - 50 years
5-20 years
8 years
5 years
22
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE A - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
RISK MANAGEMENT
The District carries commercial insurance for risks of loss, including torts; theft of, damage to, and destruction of assets;
errors and omissions; workers' compensation and employee health and accident insurance. Settled claims resulting from
these risks have not exceeded commercial insurance coverage in the past fiscal year.
INTERFUND BALANCES
On fund financial statements, receivables and payables resulting from short-term interfund loans are classified as "due from
other funds" and "due to other funds." These amounts are eliminated in the governmental activities column of the Statement
of Net Position.
FUND BALANCE RESERVES
A fund balance reserve arises from state requirements or actions taken by the District. The reserved portion of the fund
balance identifies those amounts segregated for future purposes or not available to finance expenditures in the subsequent
fiscal year.
TOTAL COLUMNS ON COMBINED STATEMENTS
Total columns on the Combined Statements are captioned "Memorandum Only" to indicate that they are presented only to
facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in
financial position in conformity with accounting principles generally accepted in the United States of America. Neither is
such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
SIGNIFICANT ACCOUNTING POLICIES RELATED TO EMPLOYEE RETIREMENT SYSTEM
REPORTING ENTITY
The System is a pension and other employee benefit trust fund of the State. As such, the System is considered part of the
State and is included in the State's Comprehensive Annual Financial Report as a pension and other employee benefit
trust fund. The System and its Board are not financially accountable for any other entities or other organizations.
Accordingly, the System is the only entity included in this financial report.
BENEFIT PROTECTION
Public Act 100 of 2002 was passed by the Michigan Legislature to protect pension benefits of public employees from
alienation (being transferred). Alienation is attachment, garnishment, levy, execution, bankruptcy or other legal process
except for divorce orders or eligible domestic relation orders. The statutes governing the System contained an
"antialienation" clause to provide for this protection; however, many smaller public pension systems did not have the
benefit of this protection. Therefore, Public Act 100 of 2002 was passed to establish legal protection of pension assets
that encompasses all public employees.
FAIR VALUE OF INVESTMENTS
Plan investments are reported at fair value. Securities traded on a national or international exchange are valued at the last
reported sales price at current exchange rates. Corporate bonds not traded on a national or international exchange are
based on equivalent values of comparable securities with similar yield and risk. The fair value of private investments is
based on the net asset value reported in the financial statements of the respective investment entity. The net asset value
is determined in accordance with governing documents of the investment entity, and is subject to an independent annual
audit. Securities purchased with cash collateral under securities lending activities are recorded at estimated fair value.
Other investments not having an established market are recorded at estimated fair value.
23
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE A • SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
SIGNIFICANT ACCOUNTING POLICIES RELATED TO EMPLOYEE RETIREMENT SYSTEM - CONTINUED
INVESTMENT INCOME
Dividend and interest income is recognized on the accrual basis. Fair value changes are recorded as investment income
or loss. Purchases and sales of investments are recorded as of the trade date (the date upon which the transaction is
initiated), except for purchase and sale of mortgages, real estate, and alternative investments which are recorded as of
the settlement date (the date upon which the transaction is ultimately completed). The effect of recording such
transactions as of the settlement date does not materially affect the financial statements.
COSTS OF ADMINISTERING THE SYSTEM
Each year a restricted general fund appropriation is requested to fund the on-going business operations of the System.
These administrative costs are ultimately funded by the System through the regular transfer of funds from the System to
the State's general fund based on either a direct cost or allocation basis depending on the nature of the expense. Costs of
administering the System are financed by undistributed investment income of the System.
PROERTY AND EQUIPMENT
Officespace is leased from the State on a year-to-year basis. Office equipment is capitalized ifthe value exceeds $5,000.
These assets are recorded at cost and are reported net of depreciation in the Statement of Pension Plan and Other
Postemployment Benefit Plan Fiduciary Net Position. Such assets are depreciated on a straight-line basis over 10 years.
As of September 30, 1998, all capitalized equipment was fully depreciated. No additional equipment has been capitalized
for the System since that date.
RELATED PARTY TRANSACTION
Leases and Services - The System leases operating space and purchases certain administrative, data processing, legal
and investment services from the State. The space and services are not otherwise available by competitive bid. The
schedule below summarizes costs incurred by the System for such services.
CASH
At September 30, 2014, the System had $246.7 million in a common cash investment pool maintained for various State
operating funds. The participating funds in the common cash pool earn interest at various rates depending upon prevailing
short-term interest rates. Earnings from these activities amounted to ($0.6) thousand for the year ended September 30,
2014.
24
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE B - CASH AND CASH EQUIVALENTS
Cash and equivalent cash balances consisted of the following at June 30, 2015:
CASH AND CASH EQUIVALENT BALANCES
Checking Accounts
$
General Fund
Special Revenue Fund
Savings Accounts
1,140,513
171,957
247,325
General Fund
2,232,921
156,007
Debt Retirement Fund
Capital Projects Fund
$
3,948,723
The amount of $3,948,723 included above is reflected in the cash balances of $4,072,633 held by banks at June 30,
2015. Federal Depository Insurance Coverage insures $497,325 of this total, while the remaining balance of $3,575,308 is
uninsured and uncollateralized.
Coloma Community Schools is authorized by Michigan Public Act 132 of 1986 and School Board policy to invest surplus
monies in U.S. bonds and notes, highly rated commercial paper, bankers' acceptances, and mutual funds or investment pools
that are composed of authorized investment vehicles.
The District's investments at June 30, 2015, were certificates of deposit, bank investment pools, and interlocal agreement
investment pools that had a carrying amount and market value of $172,535. The bank investment pools are regulated by the
Michigan Banking Act and the investments under the interlocal agreement (MILAF) are regulated by the Urban Cooperation
Act. The fair value of the position in the bank investment pools and interlocal agreement pools is the same as the value of the
pool shares.
Investments are normally categorized to give an indication of the level of risk assumed by the District. However, bank
investment pools and interlocal agreement investment pools are not categorized because they are not evidenced by securities
that exist in physical or book entryform. The Administration believes the investments in the funds comply with the investment
authority noted above.
NOTE C • DUE FROM OTHER GOVERNMENTAL UNITS
Amounts due from other governmental units consist of the following:
State aid
Federal aid
$
Amounts due from othergovernmental units
1,878,719
709,126
105,372
$
2,693,217
No allowance for doubtful accounts is necessary as all the amounts due from other governmental units were subsequently
received.
25
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE D - CAPITAL ASSETS
A summary of changes in general fixed assets is as follows:
BALANCE
BALANCE
JUNE 30, 2014
DISPOSALS
ADDITIONS
JUNE 30, 2015
INVESTMENT IN CAPITAL ASSETS
Land
$
Buildings & improvements
158,406
26,152,184
$
Construction in process
Buses
Other transportation equipment
$
44,825
1,651,851
7,233,728
1,322,962
72,741
Furniture and equipment
-
10,705,485
-
14,000
55,000
1,428,121
51,004
7,233,728
$
1,645,672
-
1,336,962
72,741
-
-
-
103,406
35,429,548
TOTAL INVESTMENT IN
CAPITAL ASSETS
$ 36,591,872
$
10,764,310
$
$
684,876
$ 8,767,853
$ 38,588,329
ACCUMULATED DEPRECIATION
Buildings & improvements
8,490,736
Furniture and equipment
1,466,514
55,699
Buses
1,108,948
43,977
71,045
1,608
Other transportation equipment
improvements
$
810,488
43,595
-
-
$
8,365,124
1,478,618
1,152,925
72,653
TOTAL ACCUMULATED
DEPRECIATION
$ 11,137,243
DEPRECIATION ALLOCATION
Support
134,160
55,243
Unallocated
596,757
Instruction
TOTAL
$
$
786,160
26
$
786,160
$
854,083
$ 11,069,320
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE E - EMPLOYEE RETIREMENT SYSTEM
PLAN DESCRIPTION
The Michigan Public School Employees' Retirement System (MPSERS) is a cost-sharing, multiple employer, state-wide,
defined benefit public employee retirement plan governed bythe State of Michigan (State) originally created under Public
Act 136 of 1945, recodified and currently operating under the provisions of Public Act 300 of 1980, as amended. Section
25 of this act establishes the board's authority to promulgate or amend the provisions of the System. The board consists
of twelve members - eleven appointed by the Governor and the State Superintendent of Instruction, who serves as an exofficio member. The Governor appointed board members consist of:
Two active classroom teachers or other certified school personnel.
One active member or retirant from a non-certified support position.
One active school system superintendent.
One active finance or operations (non-superintendent) member.
One retirant from a classroom teaching position.
One retirant from a finance or operations management position.
One administrator or trustee of a community college that is a reporting unit of the System.
Two from the general public, one with health insurance or actuarial science experience and one with institutional
•
investment experience.
One elected member of a reporting unit's board of control.
The System's pension plan was established by the State to provide retirement, survivor and disability benefits to public
school employees. In addition, the System's health plan provides all retirees with the option of receiving health, dental and
vision coverage under the Michigan Public School Employees' Retirement Act. There are 685 participating employers. A
list of employers is provided in the Statistical Section. The System is a qualified pension trust fund under section 401(a) of
the Internal Revenue Code. By statute, employees of K-12 public school districts, public school academies, district
libraries, tax-supported community colleges and seven universities may be members. The seven universities are: Eastern
Michigan, Central Michigan, Northern Michigan, Western Michigan, Ferris State, Michigan Technological and Lake
Superior State. Employees, who first become employed by one of the seven universities on or after January 1, 1996,
become members of an alternative plan.
The System's financial statements are included as a pension and other employee benefit trust fund in the State of
Michigan Comprehensive Annual Financial Report.
The System is administered by the Office of Retirement Services within the Michigan Department of Technology,
Management & Budget. The Department Director appoints the Office Director, with whom the general oversight of the
System resides. The State Treasurer serves as the investment officer and custodian for the System.
27
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE E • EMPLOYEE RETIREMENT SYSTEM • (CONTINUED)
Membership
At September 30, 2014, the System's membership consisted of the following:
Inactive plan members or their beneficiaries currently receiving benefits:
Regular benefits
Survivor benefits
181,489
16,855
Disability benefits
6,168
Total
204,512
Inactive plan members entitled to but not yet receiving benefits:
16,979
Active plan members:
Vested
108,934
Non-vested
101,843
Total
210,777
Total plan members
432,268
Benefits Provided
Benefit provisions of the defined benefit pension plan are established by State statute, which may be amended. Public Act
300 of 1980, as amended, establishes eligibility and benefit provisions for the defined benefit (DB) pension plan.
Retirement benefits for DB plan members are determined by final average compensation and years of service. DB
members are eligible to receive a monthly benefit when they meet certain age and service requirements. The System also
provides disability and survivor benefits to DB plan members.
A DB member or Pension Plus plan member who leaves Michigan public school employment may request a refund of his
or her member contributions to the retirement system account. A refund cancels a former member's rights to future
benefits. However, returning members who previously received a refund of their contributions may reinstate their service
through repayment of the refund upon satisfaction of certain requirements.
Member Contributions
Mandatory member contributions were phased out between 1974 and 1977, with the plan remaining noncontributory until
January 1, 1987, when the Member Investment Plan (MIP) was enacted. MIP members enrolled prior to January 1, 1990,
contribute at a permanently fixed rate of 3.9% of gross wages. The MIP contribution rate was 4.0% from January 1, 1987,
the effective date of the MIP, until January 1, 1990, when itwas reduced to 3.9%. Members first hired between January 1,
1990 and June 30, 2008, and returning members who did not work between January 1, 1987, through December 31,
1989, contribute at the following graduated permanently fixed contribution rates: 3% of the first $5,000; 3.6% of $5,001
through $15,000; 4.3% of all wages over $15,000. Members first hired July 1, 2008, or later including Pension Plus Plan
members, contribute at the following graduated permanently fixed contribution rates: 3% of the first $5,000; 3.6% of
$5,001 through $15,000; 6.4% of all wages over $15,000.
28
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE E - EMPLOYEE RETIREMENT SYSTEM - (CONTINUED)
Basic Plan members make no contributions. For a limited period ending December 31, 1992, an active Basic Plan
member could enroll in the MIP by paying the contributions that would have been made had enrollment occurred initially
on January 1, 1987, or on the date of hire, plus interest. MIP contributions at the rate of 3.9% of gross wages begin at
enrollment. Actuarial rate of interest is posted to member accounts on July 1st on all MIP monies on deposit for 12
months. If a member leaves public school service and no pension is payable, the member's accumulated contributions
plus interest, if any, are refundable.
Under Public Act 300 of 2012, eligible members voluntarily chose between increasing, maintaining, or stopping their
contributions to the pension fund as of the transition date. Their options are described in detail under Pension Reform
2012 beginning on page 23. Members who elected to increase their level of contribution contribute 4% (Basic Plan) or 7%
(MIP); by doing so they maintain a 1.5% pension factor in their pension formula. Members who elected to maintain their
level of contribution will receive a 1.25% pension factor in their pension formula for their years of service as of their
transition date. Their contribution rates are described above. Members who elected to stop their contributions became
participants in the Defined Contribution plan as of their transition date.
Employer Contributions
Each school district or reporting entity is required to contribute the full actuarial funding contribution amount to fund
pension benefits.
Actuarial Assumptions. The total pension liability in the September 30, 2014 actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement:
Wage inflation
3%
Salary increases
Investment rate of return
Cost of living adjustment
Healthcare cost trend rate
3.5% to 12.3%, including wage inflation at 3.5%
8.0% (7.0%, for Pension Plus plan)
3.0% annual, non-compounded for MIP members
8.5% year 1 graded to 3.5% year 12
Basis of Accounting and Presentation related to employer retirement system
The System's financial statements are prepared using the accrual basis of accounting. Contributions from the
employers are recognized as revenue when due and payable. Benefits and refunds are recognized when due and
payable in accordance with the terms of the System. The reserves are described below and details are provided in
the supporting schedules.
GASB Statement No. 67, which was adopted during the year ended September 30, 2014, addresses accounting
and financial reporting requirements for pension plans. The requirements for GASB Statement No. 67 require
changes in presentation of the financial statements, notes to the financial statements, and required supplementary
information.
Significant changes include an actuarial calculation of total and net pension liability. It also includes comprehensive
footnote disclosure regarding the pension liability, the sensitivity of the net pension liability to the discount rate, and
increased investment activity disclosures. The implementation of GASB Statement No. 67 did not significantly
impact the accounting for accounts receivable and investment balances.
29
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE E • EMPLOYEE RETIREMENT SYSTEM - (CONTINUED)
Reserves
Reserve for Employee Contributions - This reserve represents active member contributions and interest less amounts
transferred to the Reserve for Retired Benefit Payments for regular and disability retirement, amounts refunded to
terminated members, and amounts transferred to the Reserve for Employer Contributions representing unclaimed funds.
Members no longer contribute to this reserve except to purchase eligible service credit or repay previously refunded
contributions. At September 30, 2014, the balance in this reserve was $1.5 billion.
Reserve for Pension Plus Employee Contributions - This reserve represents active member contributions and interest less
amounts transferred to the Reserve for Pension Plus Retired Benefit Payments for regular retirement, amounts refunded
to terminated members, and amounts transferred to the Reserve for Pension Plus Employer cdontributions representing
unclaimed funds. This reserve was established under the provisions of Public Act 75 of 2010. At September 30, 2014, the
balance in this reserve was $59.5 million.
Reserve for Member Investment Plan - This reserve represents MIP contributions and interest less refunds and transfers
to the Reserve for Retired Benefit Payments. At September 30, 2014, the balance in this reserve was $4.7 billion.
Reserve for Employer Contributions - This reserve represents all reporting unit contributions, except payments for health
benefits. Interest from the Reserve for Undistributed Investment Income reserve is credited annually. Amounts are
transferred annually to the Reserve for Retired Benefit Payments to bring the balance of that reserve into balance with the
actuarial present value of retirement allowances. At September 30, 2014, the balance in this reserve was ($25.8) billion.
Reserve for Pension Plus Employer Contributions - This reserve represents all reporting unit contributions for Pension
Plus members, except payments for health benefits. Interest from the Reserve for Undistributed Investment Income
reserve is credited annually at a rate of 7%. Amounts are transferred annually to the Reserve for Retired Pension Plus
Benefit Payments to bring the balance of that reserve into balance with the actuarial present value of retirement
allowances. This reserve was established under the provisions of Public Act 75 of 2010. At September 30, 2014, the
balance in this reserve was $55.5 million.
Reserve for Retired Benefit Payments - This reserve represents payments of future retirement benefits to current retirees.
At retirement, a member's accumulated contributions plus interest are transferred into this reserve. Monthly benefits,
which are paid to the retiree, reduce this reserve. At the end of each fiscal year, an amount, determined by an annual
actuarial valuation, is transferred from the Reserve for Employer Contributions to bring the balance of this reserve into
balance with the actuarial present value of retirement allowances. At September 30, 2014, the balance in this reserve was
$44.6 billion.
Reserve for Retired Pension Plus Benefit Payments - This reserve represents payments of future retirement benefits to
current Pension Plus retirees. At retirement, a member's accumulated contributions plus interest are transferred into this
reserve. Monthly benefits, which are paid to the retiree, reduce this reserve. At the end of each fiscal year, an amount,
determined by an annual actuarial valuation, is transferred from the Reserve for Pension Plus Employer Contributions to
bring the balance of this reserve into balance with the actuarial present value of retirement allowances. This reserve was
established under the provisions of PublicAct 75 of 2010. Currently, there are no participants qualified to retire under this
program. At September 30, 2014, the balance in this reserve was $0.
Reserve for Undistributed Investment Income - This reserve represents all investment earnings. Interest is transferred
annually to the other reserves. Administrative expenses of the System are paid from the Reserve for Administrative
Expenses, which is credited with amounts from the Reserve for Undistributed Investment Income to cover the expenses.
For ease of reporting and understanding, the two reserves are presented as one reserve in the supporting schedules.
Public Act 143 of 1997 established a stabilization subaccount within the Reserve for Undistributed Investment Income to
which any over funding is credited. As of September 30, 2014, the balance in the subaccount was zero. AtSeptember 30,
2014, the balance in this reserve was $18.6 billion.
30
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE E • EMPLOYEE RETIREMENT SYSTEM • (CONTINUED)
Reserve for Health (OPEB) Related Benefits - This reserve is credited with employee and employer contributions for
retirees' health, dental, and vision benefits. Starting in fiscal year 2013, the employer contribution is based on a prefunded
basis and represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and
amortize any unfunded actuarial liability (or funding excess) over a period not to exceed thirty years. In addition, in fiscal
year 2014, federal funding for Medicare Part D and Employer Group Waiver Plan (EGWP) was paid directly to a thirdparty vendor. The third-party vendor uses the EGWP funding for any claims submitted and bills the system for any
remaining claims outstanding. Premiums for health, dental and vision benefits are paid from this reserve. At September
30, 2014, the balance in this reserve was $3.5 billion.
NOTE F CONTRIBUTIONS AND FUNDING STATUS OF EMPLOYEE RETIREMENT SYSTEM
The majority of the members currently participate on a contributory basis, as described above under "Benefits Provided."
Reporting units are required by Public Act 300 of 1980, as amended, to contribute amounts necessary to finance the
coverage of members and retiree Other Post-Employment Benefits (OPEB). Contribution provisions are specified by State
statute and may be amended only by action of the State Legislature.
Employer contributions to the System are determined on an actuarial basis using the entry age normal actuarial cost
method. Under this method, the actuarial present value of the projected benefits of each individual included in the
actuarial valuation is allocated on a level basis over the service of the individual between entry age and assumed exit age.
The portion of this cost allocated to the current valuation year is called the normal cost. The remainder is called the
actuarial accrued liability. Normal cost is funded on a current basis. For retirement and OPEB benefits, the
unfunded(overfunded) actuarial accrued liability as of the September 30, 2014 valuation will be amortized over a 22 year
period for the 2014 fiscal year. The schedule below summarizes pension contribution rates in effect for fiscal year 2014.
Pension Contribution Rates
Benefit Structure
Member
Employer
Basic
0.0 - 4.0 %
18.34 -19.61 %
Member Investment Plan
3.0 - 7.0
18.34 -19.61
Pension Plus
3.0 - 6.4
18.11
0.0
15.44 -16.61
Defined Contribution
The System may reconcile with actuarial requirements annually. If the system reconciles in a year, any funding excess or
deficiency for pension benefits is smoothed over a maximum of 5 years, with at least one-fifth (20%) of the funding excess
or deficiency included in the subsequent year's contribution. This payment is not recognized as a payable or receivable in
the accounting records. If the System does not reconcile in a year, any funding excess or deficiency for pension benefits
is accounted for in subsequent required contributions over the remaining amortization period. For fiscal year 2014, the
System did not reconcile.
In May 1996, the Internal Revenue Service issued a private letter ruling allowing the System's members to purchase
service credit and repay refunds using tax-deferred (pre-tax) dollars. The program was implemented in fiscal year 1998,
and payments began in fiscal year 1999.
The program allows members to purchase service credit and repay refunds on a tax-deferred basis. Members sign an
irrevocable agreement that identifies the contract duration, monthly payment, total contract amount and years of service
credit being purchased. The duration of the contract can range from 1 to 20 years. The amounts are withheld from
members' paychecks and are treated as employer pick-up contributions pursuant to Internal Revenue Code Section
414(h). At September 30, 2014, there were 16,503 agreements. The agreements were discounted using the assumed
actuarial rate of return of 8% for September 30, 2014. The average remaining length of a contract was approximately 6.0
years for 2014. The short-term receivable was $29.7 million and the discounted long-term receivable was $83.6 million at
September 30, 2014.
31
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE F CONTRIBUTIONS AND FUNDING STATUS OF EMPLOYEE RETIREMENT SYSTEM- (CONTINUED)
Measurement of the MPSERS Net Pension Liability
The plan's net pension liability is to be measured as the total pension liability, less the amount of the pension plan's
fiduciary net position. In actuarial terms, this will be the accrued liability less the market value of assets (not the smoothed
actuarial value of assets that is often encountered in actuarial valuations performed to determine the employer's
contribution requirement).
MPSERS (Plan) Net Pension Liability—Non-University
As of September 30, 2014
Total Pension Liability
Plan Fiduciary Net Position
Net Pension Liability
$
$
$
Plan Fiduciary Net Position as a Percentage of Total Pension
Liability
Net Pension Liability as a Percentage of Covered-Employee Payroll
65,160,887,182
43,134,384,072
22,026,503,110
66.20%
250.11 %
Year 1 MPSERS GASB 68 implementation recognizes a 0.00% change in the reporting unit's proportionate share
between beginning net pension liability and ending net pension liability.
MPSERS (Plan) Net Pension Liability—NonUniversity
As of October 1, 2013
Total Pension Liability
Plan Fiduciary Net Position
Net Pension Liability
$
$
$
62,859,499,994
39,427,686,072
23,431,813,922
Proportionate Share of Reporting Unit's Net Pension Liability
At September 30, 2014, the Reporting Unit reported a liability of $21,392,182 for its proportionate share of the net pension
liability. The net pension liability was measured as of September 30, 2014, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation rolled forward from September 30, 2013. The Reporting
Unit's proportionate share of the net pension liability was based on statutorily required contributions in relation to all
reporting units' statutorily required contributions for the measurement period. At September 30, 2014, the Reporting Unit's
proportionate share percent was .09712 percent.
Long-Term Expected Return on Plan Assets
The long-term expected rate of return on pension plan investments was determined using a building-block method in
which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and
by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the
pension plan's target asset allocation as of September 30, 2014, are summarized in the following table:
32
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Asset Class
Target
Long Term Expected Real Rate of
Allocation
Return*
Domestic Equity Pools
28.0
% Alternative Investment Pools
18.0
8.5
International Equity
16.0
6.1
%
4.8
Fixed Income Pools
10.5
1.5
Real Estate and Infrastructure Pools
10.0
5.3
Absolute Return Pools
15.5
6.3
Short Term Investment Pools
2.0
(0.2)
TOTAL
100.0
%
%
*Long term rate of return does not include 2.5% inflation
Rate of Return
For the fiscal year ended September 30, 2014, the annual money-weighted rate of return on pension plan investment, net
of pension plan investment expense, was 12.58%. The money weighted rate of return expresses investment performance,
net of investment expense, adjusted for the changing amounts actually invested.
Discount Rate
A discount rate of 8.0% was used to measure the total pension liability (7.0% for the Pension Plus plan, a hybrid plan).
This discount rate was based on the long-term expected rate of return on pension plan investments of 8.0% (7.0% for the
Pension Plus plan). The projection of cash flows used to determine this discount rate assumed that plan member
contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to
the difference between actuarially determined contribution rates and the member rate. Based on these assumptions, the
pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current
plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
As required by GASB Statement No. 68, the following presents the reporting unit's proportionate share of the net pension
liability, calculated using a discount rate of 8.0% (7.0% for the Pension Plus Plan), as well as what the reporting unit's
proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentagepoint lower or 1-percentage-point higher:
1% Decrease
Current Single Discount Rate
Assumption
1% Increase
(Non-Hybrid/Hybrid)*
(Non-Hybrid/Hybrid)*
(Non-Hybrid/Hybrid)*
7.0% / 6.0%
8.0% / 7.0%
9.0%/8.0%
$28,203,729
$21,392,182
$15,653,353
Timing of the Valuation
An actuarial valuation to determine the total pension liability is required to be performed every year. Ifthe actuarial
valuation is not calculated as of the plan's fiscal year end, the total pension liability is required to be rolled forward
from the actuarial valuation date to the pension plan's fiscal year end.
The total pension liability as of September 30, 2014, is based on the results of an actuarial valuation date of
September 30, 2013, and rolled forward using generally accepted actuarial procedures.
33
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE F CONTRIBUTIONS AND FUNDING STATUS OF EMPLOYEE RETIREMENT SYSTEM- (CONTINUED)
Actuarial Valuations and Assumptions
Actuarial valuations for the pension plan involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality
and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required
contributions (ARC) are subject to continual revision as actual results are compared with past expectations and new
estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the
employer and plan members) and include the types of benefits provided at the time of each valuation and the historical
pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short term volatility in actuarial accrued
liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.
Additional information as of the latest actuarial valuation follows:
Summary of Actuarial Assumptions
Actuarial Assumptions
Wage Inflation Rate:
3.5%
Investment Rate of Return
- MIP and Basic Plans (Non-Hybrid):
8.0%
- Pension Plus Plan (Hybrid):
Projected Salary Increases:
7.0%
3.5 -12.3%, including wage inflation at 3.5%
Cost-of-Living Pension Adjustments:
3% Annual Non-Compounded for MIP Members
Healthcare Cost Trend Rate:
8.5% Year 1 graded to 3.5% Year 12
Mortality:
RP-2000 Male and Female Combined Healthy Life MortalityTables, adjusted for mortality improvements
to 2025 using projection scale BB. For retirees, 100% of the table rates were used. For active members,
80% of the table rates were used for males and 70% of the table rates were used for females.
Notes:
Assumption changes as a result of an experience study for the periods 2007 through 2012 have been adopted by
the System for use in the annual pension valuations beginning with the September 30, 2014 valuation. The total
pension liability as of September 30, 2014, is based on the results of an actuarial valuation date of September 30,
2013, and rolledforward using generally accepted actuarial procedures, including the experience study.
Recognition period for liabilities is the average of the expected remaining service lives of all employees in years:
4.8457
Recognition period for assets in years is 5.0000
Full actuarial assumptions are available in the 2014 MPSERS Comprehensive Annual Financial Report.
34
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE G - PENSION LIABILITIES. PENSION EXPENSE. AND DEFERRED OUTFLOWS OF RESOURCES AND
DEFERRED INFLOWS OF RESOURCES RELATED TO PENSIONS
At June 30, 2015, the School District reported a liability of $21,392,182 for its prorated share of the net pension liability.
The net pension liability was measured as of September 30, 2014, and the total pension liability used to calculate the net
pension liabiltiy was determined by an actuarial valuation as of that date. The School District's proration of the net
pension liability was based on a projection of the School District's long-term share of contributions to the pension plan
relative to the projected contributions of all participating employers, actuarially determined. At September 30, 2014, the
School District's proportion (as calculated by MPSERS) was .09712%.
For the year ended June 30, 2015, the Reporting Unit recognized total pension expense of $1,732,506. At June 30,
2015, the Reporting Unit reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Outflows
Changes in assumptions
Changes in proportion
789,326
Deferred Inflows
$
Net
$
Net difference between projected
and actual investment earnings
789,326
789,326
1,235
(1,235)
2,364,914
(2,364,914)
2,366,149
(1,576,823)
Contributions subsequent to
2,400,168
2,400,168
measurement date
$
Total
3,189,494
$
2,366,149
$
823,345
The amount of deferred outflows of resources related to School District contributions subsequent to the measurement
date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts
reported as pension-related deferred outflows of resources and deferred inflows of resources will be recognized in
pension expense as follows:
Year Ended
June 30,
Amount
(386,301)
(386,301)
(386,301)
(417,920)
2016
2017
2018
2019
$
35
(1,576,823)
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE H • OTHER POST-RETIREMENT BENEFITS
t Retirees enrolled in MPSERS before September 4, 2012, have the option of participating in the Premium Subsidy plan, a
defined benefit postemployment healthcare plan, which is funded by employers on a cash disbursement basis. The State
of Michigan has contracted to provide the comprehensive group medical, hearing, dental and vision coverage for retirees
and beneficiaries. All health care benefits are on a self-funded basis. A significant portion of the premium is paid by
MPSERS with the balance deducted from the monthly pension. Employer contributions range from 2.20% to 2.71% of
covered payroll. Plan participants contribute 3% of covered payroll to the Retiree Healthcare Fund. At retirement, these
individuals receive a subsidy for healthcare premiums that covers up to 80% of cost.
Plan members enrolled on or after September 4, 2012, participate in the Personal Healthcare Fund. This defined
contribution other postemployment benefits plan includes a required 2% employee contribution into a personal taxdeferred account, which is matched by an additional 2% employer contribution. Employees are fully vested in these
contributions which can be used, along with earnings thereon, to pay for postemployment healthcare expenses. Plan
members working prior to September 4, 2012, were given the option to convert from the Premium Subsidy plan to the
Personal Healthcare Fund option. Effective February 1, 2014, these members are no longer required to make the 3%
employee contribution. Amounts paid into the Retiree Healthcare Fund between September 4, 2012 and February 1,
2014, were credited to each individual's Personal Healthcare Fund account. Any contributions made prior to September 4,
2012, are pending a Supreme Court resolution.
NOTE I - RISK MANAGEMENT
The District is exposed to various risk of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions; injuries to employees and natural disasters. The District participates in two distinct pools of educational institutions
within the State of Michigan for self-insuring property and casualty and workers' disability compensation. The pools are
considered public entity risk pools. The District pays annual premiums to each pool for the respective insurance coverage. In
the event a pool's total claims and expenses for a policy year exceed the total normal annual premiums for said years, all
members of the specific pool's policy year may be subject to special assessment to make up the deficiency. Each of the pools
maintains reinsurance for claims in excess of $500,000 for each occurrence with the overall maximum coverage being
unlimited. The District has not been informed of any special assessments being required.
The District continues to carry commercial insurance for other risks of loss, including employee health and accident insurance.
The District has purchased commercial insurance for health claims and participates in the SET/SEG (risk pool). Claims
relating to the commercial insurance have not exceeded the amount of insurance coverage in any of the past three fiscal
years.
The shared-risk pool program, in which the District participates, operates as a common risk-sharing management program
for school districts in Michigan. Member premiums are used to purchase commercial excess insurance coverage and to
pay member claims in excess of deductible amounts.
36
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE J - INTERFUND RECEIVABLES AND PAYABLES
The amounts of interfund receivables and payables are as follows:
INTERFUND
FUND
INTERFUND
RECEIVABLE
$
General Fund
Special Revenue
909
129,986
Debt Service
FUND
PAYABLE
$129,986
General Fund
Special Revenue
Debt Service
$ 130,895
Total
909
$130,895
Total
NOTE K - BONDS AND NOTE PAYABLE
A summary of changes in long-term debt is as follows:
BALANCE
BALANCE
JUNE 30, 2014
ADDITIONS
PAYMENTS
JUNE 30, 2015
Qualified Zone
Academy Bonds
$ 5,000,000
$
$
$
5,000,000
Qualified Zone
Academy Bonds
2012 Bond
1991 Bond
1,553,275
19,475,000
2,000,000
State Aid Note
$ 28,028,275
1,300,000
280,000
425,000
1,300,000
$ 1,300,000
$ 2,005,000
1,553,275
19,195,000
1,575,000
$ 27,323,275
On April 17, 1991, the District issued $4,199,865, in bonds to construct a new gymnasium. The debt is financed through a
special assessment.
QUALIFIED ZONE ACADEMY BONDS 2009
On July 24, 2009, Coloma CommunitySchools issued $5,000,000 2009 School Improvement Bonds which mature on July 24,
2024, and bear the interest rate of 0%. The bonds are designated as qualified zone academy bonds pursuant to Section 54E
of the Internal Revenue Code of 1986, as amended. The proceeds are for capital improvements to the school buildings.
The District is required to make annual sinking fund deposits with a fiscal agent. The District agrees to deposit fifteen
annual sinking fund payments of $333,333 through July 24, 2024, into a special bank account bearing 0% interest. At
maturity, one lump-sum payment of $5,000,000 is due.
37
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE K • BONDS AND NOTE PAYABLE - (CONTINUED)
QUALIFIED ZONE ACADEMY BONDS 2014
On June 26, 2014, Coloma Community Schools issued $1,553,275 2014 Energy Conservation Improvement Bonds which
mature on June 15, 2029, and bear the interest rate of 0%. The bonds are designated as qualified zone academy bonds
pursuant to Section 54E of the Internal Revenue Code of 1986, as amended. The proceeds are for capital improvements to
the school buildings.
The District is required to make annual sinking fund deposits with a fiscal agent. The District agrees to deposit fifteen
annual sinking fund payments of $103,551 through June 15, 2029, into a special bank account bearing 0% interest. At
maturity, one lump-sum payment of $1,553,275 is due.
2012 SCHOOL BUILDING AND SITE BONDS
On July 9, 2012, Coloma Community Schools issued $19,910,000 designated 2012 Building and Site Bonds (General
Obligation-Unlimited Tax Bonds) at a redemption price of 99% of par with an average interest rate of 3.562%. The net
proceeds of $19,330,000 (after payment of $580,000 for insurance and other issuance costs) were used to purchase U.S.
government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future
debt service payments on the 2012 Bonds.
The following is a schedule of the remaining 2012 bond issue payments:
SCHOOL
PRINCIPAL
YEAR
6/30/2016
MAY1
$
300,000
$
INTEREST
TOTAL
MAY1
REQUIREMENTS
648,475
$
948,475
6/30/2017
315,000
639,475
954,475
6/30/2018
6/30/2024
330,000
620,000
865,000
905,000
945,000
985,000
1,030,000
630,025
620,125
601,525
575,575
548,425
520,075
490,525
960,025
1,240,125
1,466,525
1,480,575
1,493,425
1,505,075
1,520,525
6/30/2025
1,075,000
459,625
1,534,625
6/30/2026
1,120,000
427,375
1,547,375
6/30/2027
1,165,000
392,375
1,557,375
6/30/2028
1,210,000
354,513
1,564,513
6/30/2029
1,260,000
313,675
1,573,675
6/30/2030
1,310,000
271,150
1,581,150
6/30/2031
1,360,000
225,300
1,585,300
6/30/2032
1,410,000
176,000
1,586,000
6/30/2033
1,465,000
119,600
1,584,600
1,525,000
61,000
1,586,000
8,074,838
$ 27,269,838
6/30/2019
6/30/2020
6/30/2021
6/30/2022
6/30/2023
6/30/2034
$
$
19,195,000
38
COLOMA COMMUNITY SCHOOLS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
NOTE L • BONDS AND NOTE PAYABLE • (CONTINUED)
ADVANCED REFUNDING OF DEBT
On September 15, 2009, Coloma Community Schools issued $3,940,000 designated 2009 Refunding Bonds (General
Obligation-Unlimited Tax Bonds) with an average interest rate of 3% to advance refund $4,132,491 of outstanding 1993
Refunding Bonds due the years 2010-2019 at a redemption price of 101 % of par with an average interest rate of 6.194%. The
net proceeds of $4,214,847 (after payment of $63,653 for insurance and other issuance costs) were used to purchase U.S.
government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future
debt service payments on the 1993 Refunding Bonds after the year 2009. As a result, the 1993 Refunding Bonds, after the
year 2009, are considered to be defeased and the liability for those bonds has been removed from the general long-term debt
account group.
Coloma Community Schools advance refunded the 1993 Refunding Bonds to reduce its total debt service payments over the
next 10 years by $907,745, and to obtain an economic gain (difference between the present value of the debt service
payments on the old and the new debt) of $38,385.
The following is a schedule of the remaining 1991 bond issue payments:
SCHOOL
PRINCIPAL
INTEREST
TOTAL
YEAR
MAY1
MAY1
RE(QUIREMENTS
6/30/2016
$
440,000
455,000
470,000
210,000
$
53,872
40,012
24,770
8,086
$
493,872
495,012
494,770
218,086
$
1,575,000
$
126,740
$
1,701,740
6/30/2017
6/30/2018
6/30/2019
NOTE M - CONTINGENT LIABILITIES
The District participates in a revolving fund arrangement with the Counties of Berrien and Van Buren for payment of the
District's share of the current tax levies. At the time of settlement with the Counties by the various townships, the amount of
delinquent taxes on real property is advanced to the District by the Counties. The District is contingently liable to the Counties
for these advances until subsequent collection is made.
NOTE N - SUBSEQUENT EVENTS
Management has evaluated events subsequent to the date of the statement of financial position through October 27, 2015,
the date the financial statements were available to be issued.
The Districted renewed it's state aid anticipation note
subsequent to June 30, 2015. No other events have occurred subsequent to the statement of financial position date through
October 27, 2015, that would require adjustment or disclosure in the financial statements.
39
(This page intentionally left blank)
REQUIRED SUPPLEMENTARY INFORMATION
COLOMA COMMUNITY SCHOOLS
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
YEAR ENDED JUNE 30, 2015
VARIANCE WITH
BUDGETED AMOUNTS
ACTUAL
FINAL BUDGET
(BUDGETARY
POSITIVE
(NEGATIVE)
ORIGINAL
FINAL
BASIS)
$ 2,913,916
$3,109,320
$ 3,154,397
REVENUES
Local sources
Intermediate sources
$
45,077
11,088,845
1,806,975
10,506,443
1,794,783
228,706
10,392,699
1,562,874
15,809,736
15,410,546
15,338,676
(71,870)
7,542,727
2,805,184
7,505,953
2,626,289
7,321,111
2,520,160
184,842
106,129
566,986
827,804
387,020
1,014,950
288,109
1,055,150
755,580
43,705
521,065
30,674
577,917
927,649
371,809
1,071,857
370,992
1,255,883
751,449
43,345
493,575
24,279
578,354
865,275
372,735
1,042,311
396,233
1,300,409
709,949
35,322
463,249
19,901
15,838,954
16,020,997
15,625,009
(29,218)
(610,451)
(286,333)
324,118
OTHER FINANCING SOURCES (USES)
(283,460)
(129,899)
(114,899)
15,000
NET CHANGE IN FUND BALANCES
(312,678)
(740,350)
(401,232)
339,118
2,103,586
2,103,586
2,182,882
$ 1,790,908
$1,363,236
$ 1,781,650
State sources
Federal sources
TOTAL REVENUES
-
-
228,706
(113,744)
(231,909)
EXPENDITURES
Instruction
Basic programs
Added needs
Supporting services
Pupil services
Instructional staff services
General administrative services
School administrative services
Business services
Operations and maintenance
Pupil transportation
Central services
Other
Community services
TOTAL EXPENDITURES
(437)
62,374
(926)
29,546
(25,241)
(44,526)
41,500
8,023
30,326
4,378
395,988
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
FUND BALANCES - JULY 1, 2014
FUND BALANCES - JUNE 30, 2015
40
$
339,118
COLOMA COMMUNITY SCHOOLS
MSPSERS COST-SHARING MULITPLE-EMPLOYER PLAN
YEAR ENDED JUNE 30, 2015
Schedule of the School District's Proportionate Share of the Net Pension Liability
Year Ended
June 30, 2015
School District's proporation of the net pension liability
0.09712000%
School District's proportionate share of the net pension liability
$
21,392,140
School District's covered-employee payroll
$
8,237,567
School Disctrict's proportionate share of the net pension liability
as a percentage of its covered-employee payroll
259.69%
Plan fiduciary net position as a percentage of the total pension liability
66.20%
The amounts presented for each fiscal year were determined as of September 30 of the preceding year.
Note: GASB 68 was implemented in the fiscal year 2015. This schedule is being builtprospectively. Ultimately,
10 years of data willbe presented.
41
COLOMA COMMUNITY SCHOOLS
MSPSERS COST-SHARING MULITPLE-EMPLOYER PLAN
YEAR ENDED JUNE 30, 2015
Schedule of School District Contributions
Year Ended
June 30, 2015
Contractually required contribution
Contributionss in relation to the contractually required contribution
$
2,503,685
J>
(2,503,685)
Contribution deficiency (excess)
$
District's covered-employee payroll
$
7,895,317
Contributions as a percentage of covered-employee payroll
31.71 %
Note: GASB 68 was implementedin the fiscal year 2015. This schedule is being built prospectively. Ultimately,
10 years of data willbe presented.
42
OTHER SUPPLEMENTAL INFORMATION
COLOMA COMMUNITY SCHOOLS
BALANCE SHEET - GENERAL FUND
JUNE 30, 2015
ASSETS
Cash
Investments
$
1,387,838
140,044
Interest receivable
Prepaid expenses
Due from other governmental units
13,989
2,693,217
Due from otherfunds
909
TOTAL ASSETS
$
4,235,997
$
238,866
986,202
2,670
621,212
LIABILITIES
Accounts payable
Salaries payable
Payroll deductions and withholdings
Accrued expenses
Due to other funds
129,986
Unearned revenues
475,411
TOTAL LIABILITIES
2,454,347
FUND BALANCES
Nonspendable
13,989
Unassigned
1,767,661
TOTAL FUND BALANCES
1,781,650
TOTAL LIABILITIES
AND FUND BALANCES
$
43
4,235,997
COLOMA COMMUNITY SCHOOLS
SCHEDULE OF REVENUES - GENERAL FUND
YEAR ENDED JUNE 30, 2015
LOCAL SOURCES
Property tax levy
Earnings on investments
$
Transportation fees
Rental of school facilities
Tuition
3,044,009
1_469
Athletics
4,796
6,404
1,650
34,344
Other local revenues
61,725
TOTAL LOCAL SOURCES
3,154,397
INTERMEDIATE SOURCES
Intermediate sources
228,706
STATE SOURCES
State school aid
Special education
9,332,443
482,868
At risk
Other
449,364
128,024
TOTAL STATE SOURCES
10,392,699
FEDERAL SOURCES
Title I
1,197,003
Summer migrant
171,129
Title II
73,702
School year migrant
72,642
Federal funds - other
48,398
TOTAL FEDERAL SOURCES
1,562,874
TOTAL REVENUES
$
44
15,338,676
COLOMA COMMUNITY SCHOOLS
SCHEDULE OF EXPENDITURES - GENERAL FUND
YEAR ENDED JUNE 30, 2015
TOTAL
SALARIES
BENEFITS
1,544,096
2,361,726
225,836
$1,841,871
909,316
1,015,508
122,575
$ 1,237,888
575,161
7,321,111
3,889,270
2,536,301
577,475
Vocational education
959,157
972,060
588,943
603,672
305,059
373,867
349,660
187,945
Total Added needs
2,520,160
1,486,206
911,472
9,841,271
5,375,476
3,447,773
201,566
1,385
166,513
155,621
53,269
120,454
80,845
100,515
85,633
34,393
65,822
69,988
13,876
578,354
340,995
230,531
146,614
58,470
215,978
444,213
49,951
35,167
138,061
159,837
29,950
14,026
75,982
97,005
865,275
383,016
216,963
68,613
304,122
3,870
92,979
107,328
372,735
96,849
107,328
1,039,178
648,935
369,948
648,935
369,948
INSTRUCTION
Basic programs
Elementary
$
Middle school
High school
Other
Total Basic programs
3,189,453
652,796
70,456
Added needs
Special education
Compensatory education
TOTAL INSTRUCTION
SUPPORTING SERVICES
Pupil services
Guidance
Health
Speech and hearing
Social
Other pupil services
Total Pupil services
Instructional staff services
Improvement of instruction
Educational media services
Supervision and direction
Technology support
Total Instructional staff services
General administrative services
Board of education
Executive administration
Total General administrative services
School administrative services
Office of the principal
3,133
Other school administration
1,042,311
Total School administrative services
45
PURCHASED
SUPPLIES AND
OTHER
CAPITAL
SERVICES
MATERIALS
EXPENSES
OUTLAY
$
45,974
$
63,245
$
475
16,321
652,002
18,613
41,763
36,320
13,278
1,535
5,100
732,910
154,606
8,024
5,353
13,178
45,110
2,462
5,550
46,945
3,884
63,641
54,957
3,884
796,551
209,563
11,908
37
230
1,140
245
-
5,000
176
-
-
-
651
49,010
2,289
4,856
163,481
15,414
4,421
1,502
23,750
212,924
45,087
7,285
60,025
89,587
370
1,062
4,348
13,166
149,612
1,432
17,514
13,939
5,164
-
-
13,939
-
140
1,192
3,133
-
5,164
46
.
-
6,177
433
-
914
_
_
$
4,325
.
_
COLOMA COMMUNITY SCHOOLS
SCHEDULE OF EXPENDITURES -GENERAL FUND (CONTINUED)
YEAR ENDED JUNE 30, 2015
TOTAL
SALARIES
BENEFITS
SUPPORTING SERVICES (CONTINUED)
Business services
301,483
94,750
145,796
62,986
Total Business services
396,233
145,796
62,986
Operation and maintenance
1,300,409
383,915
211,466
Pupil transportation
709,949
322,533
149,159
Athletics
463,249
264,151
125,002
3,730
15,453
6,169
9,970
2,697
1,033
4,149
2,020
35,322
6,846
3,053
5,763,837
2,593,036
1,476,436
15,605,108
7,968,512
4,924,209
19,901
88
42
15,625,009
$ 7,968,600
$ 4,924,251
Fiscal services
Other business services
Central services
Information Management Services
Printing
Plan Research & Development
Staff personnel services
Total Central services
TOTAL SUPPORTING SERVICES
TOTAL CURRENT OPERATING EXPENDITURES
COMMUNITY SERVICES
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(286,333)
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
County special education tax transfers
331,025
Fund modification
(9,040)
Food service
Debt
(436,884)
TOTAL OTHER FINANCING SOURCES (USES)
(114,899)
(401,232)
NET CHANGE IN FUND BALANCES
2,182,882
FUND BALANCES JULY 1, 2014
$
FUND BALANCES JUNE 30, 2015
47
1,781,650
PURCHASED
SUPPLIES AND
OTHER
CAPITAL
SERVICES
MATERIALS
EXPENSES
OUTLAY
75,337
30,402
3,881
13,483
64,348
105,739
3,881
77,831
289,899
415,129
85,170
138,531
556
45,326
23,081
5,689
15,453
-
-
14,000
-
-
_
_
9,607
363
25,060
363
933,846
633,319
113,200
14,000
1,730,397
842,882
125,108
14,000
8,665
11,106
$1,739,062
$
853,988
48
.
_
$ 125,108
-
$
14,000
COLOMA COMMUNITY SCHOOLS
BALANCE SHEET - SPECIAL REVENUE FUNDS
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2015
FOOD
SERVICES
ASSETS
Cash
$
Accounts receivable
171,957
439
Inventory
8,357
129,986
Due from general fund
TOTAL ASSETS
$
310,739
$
114,049
LIABILITIES
Accounts payable
Due to general fund
Accrued expense
29,729
143,778
TOTAL LIABILITIES
FUND BALANCES
Unreserved
8,357
158,604
TOTAL FUND BALANCES
166,961
Nonspendable
TOTAL LIABILITIES AND FUND BALANCES
$
49
310,739
COLOMA COMMUNITY SCHOOLS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - SPECIAL REVENUE FUNDS
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
FOOD
SERVICES
REVENUES
Lunch sales
Commodities (federal grant)
State grant
$
Interest income
152,968
733,233
23,897
112
Miscellaneous
2,740
TOTAL REVENUES
912,950
EXPENDITURES
Salaries
Benefits
Purchased services
Food and supplies
Capital outlay
125,538
74,847
251,318
354,871
46,782
Other expenses
475
TOTAL EXPENDITURES
853,831
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
59,119
OTHER FINANCING SOURCES (USES)
Fund modifications
9,040
NET CHANGE IN FUND BALANCES
68,159
FUND BALANCES-JULY 1,2014
98,802
FUND BALANCES - JUNE 30, 2015
J
50
166,961
COLOMA COMMUNITY SCHOOLS
BALANCE SHEET - CAPITAL PROJECTS FUND
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2015
ASSETS
Cash
$
156,007
32,491
$
188,498
Investments
TOTAL ASSETS
LIABILITIES
LIABILITIES
129,261
Deferred revenue
FUND BALANCES
59,237
Reserved fund balance
188,498
LIABILITIES AND FUND BALANCES
51
COLOMA COMMUNITY SCHOOLS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - CAPITAL PROJECTS FUND
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
REVENUES
Other Local Revenue
$
Gains on sale of investments
858,876
91
Interest Income
533
TOTAL REVENUES
859,500
EXPENDITURES
Capital outlay
3,469,800
TOTAL EXPENDITURES
3,469,800
NET CHANGE IN FUND BALANCES
(2,610,300)
FUND BALANCES-JULY 1,2014
2,669,537
FUND BALANCES - JUNE 30, 2015
$
52
59,237
COLOMA COMMUNITY SCHOOLS
COMBINING BALANCE SHEET - DEBT RETIREMENT FUND
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2015
1991
2012
QZAB
ISSUE
ISSUE
BOND
TOTAL
ASSETS
Cash
$
Due from other governmental units
TOTAL ASSETS
51,972
$
1,817
410,732
$ 1,770,217
-
$
53,789
$
$
1,841
$
410,732
$ 2,232,921
-
1,817
$ 1,770,217
$ 2,234,738
LIABILITIES
Dueto general fund
TOTAL LIABILITIES
(932) _$
;__ _$
909
1,841
(932)
-
909
51,948
411,664
1,770,217
2,233,829
410,732
$ 1,770,217
$ 2,234,738
FUND BALANCES
Reserved fund balance
TOTAL LIABILITIES
AND FUND BALANCE
$
53,789
53
$
COLOMA COMMUNITY SCHOOLS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - DEBT RETIREMENT FUND
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
1991
2012
QZAB
ISSUE
ISSUE
BOND
TOTAL
REVENUES
Local sources
Taxes
$
Interest on investments
424,238
$
835,668
$ 1,259,906
$
125
363
488
424,363
836,031
1,260,394
425,000
67,373
280,000
657,025
492,373
937,025
(68,010)
(100,994)
Other local revenue
State sources
TOTAL REVENUES
EXPENDITURES
Debt service
Principal repayment
Interest and fiscal charges
TOTAL EXPENDITURES
-
705,000
724,398
1,429,398
EXCESS OF REVENUES
(UNDER) EXPENDITURES
(169,004)
OTHER FINANCING SOURCES
Fund modifications
436,884
436,884
436,884
267,880
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(68,010)
(100,994)
FUND BALANCES -JULY 1, 2014
119,958
512,658
1,333,333
1,965,949
411,664
$ 1,770,217
$ 2,233,829
FUND BALANCES -JUNE 30, 2015
$
51,948
54
$
COLOMA COMMUNITY SCHOOLS
COMBINING BALANCE SHEET
ALL TRUST FUNDS
YEAR ENDED JUNE 30, 2015
BALANCE
BALANCE
JUNE 30,2014
ADDITIONS
DEDUCTIONS
JUNE 30,2015
ASSETS
Cash
$
186,155
$
442,817
$
10,647
17,293
158,215
$
8
95,220
347,589
$
186,155
$
442,817
$
436,815
$
192,157
$
10,655
12,154
169,348
$
192,157
LIABILITIES
Accounts payable
Books deposits, fees, etc.
Amounts due to student activity accounts
TOTAL LIABILITIES
$
55
100,359
336,456
436,815
COLOMA COMMUNITY SCHOOLS
STATEMENT OF REVENUES, EXPENDITURES, AND FUND BALANCE
TRUST FUND - HIGH SCHOOL ACTIVITIES ACCOUNT
YEAR ENDED JUNE 30, 2015
TRANSFERS AND
JUNE 30, 2014
Academic Challenge
Art
$
64
2,289
Athletic Drug Testing
Athletic Pop Fund
Auto Shop
752
Band
473
Baseball - Varsity
Basketball (Boys)
Basketball (Girls)
Parking Permits
Bowling
Bus. Prof, of America
Bus. Prof, of America/Robotics Vending
Cheerleaders
REVENUES
$
41
3,068
288
256
3,711
(79)
3,636
2,378
7,262
2,996
231
-
105
2,361
288
-
1,162
752
-
6,109
6,172
15,519
13,408
JUNE 30, 2015
$
$
-
1,137
50
541
EXPENDITURES
5,695
9,356
15,115
9,211
887
527
325
7,833
50
-
1,705
30
380
119
2,289
7,262
-
-
1,866
-
463
475
630
308
54,794
51,847
Class Accounts
6,581
9,920
750
439
9,528
10,231
College Testing
414
1,618
3,027
2,780
1,616
2,950
2,835
Choir
Concession
-
Cross Country
Dance Team
Drafting
Drama Club
EMIT/Robotics
Equestrian Team
Faculty Fund
Football
Future Teachers of America
Girl's Varsity Softball
Gold Leaf (Smith)
Golf
High School Office
Jeans Donations
Journalism
Library
Machine Tool
Maintenance and Operations
National Honor Society
PowderPuff Football
Prom
67
468
227
-
-
-
-
1,151
416
77
12
468
227
2,332
9,504
598
2,007
59,310
1,068
202
81
1,940
2,385
3,054
3,618
13,250
8,735
789
606
12,613
3,453
11,048
4,679
790
113
225
678
2,003
562
131
2,434
1,476
6,777
157
-
100
808
-
-
56,583
1,010
-
-
100
808
656
283
6,455
2,568
4,619
2,392
157
-
-
8,630
4,671
4,736
777
23
687
454
256
1,453
2,595
2,876
7,330
839
3,209
2,876
6,276
1,138
-
84
56
-
COLOMA COMMUNITY SCHOOLS
STATEMENT OF REVENUES, EXPENDITURES, AND FUND BALANCE
TRUST FUND - HIGH SCHOOL ACTIVITIES ACCOUNT - CONTINUED
YEAR ENDED JUNE 30, 2015
TRANSFERS AND
JUNE 30, 2014
SAD.D.
674
Science
198
Special Education
REVENUES
Sideline Cheer - Football
6,264
Soccer
Spanish Club
Special Projects
146
-
-
-
-
Student Forum
419
-
Student Pictures
897
-
Tennis
3,727
1,490
1,609
2,025
Track
VEI
Volleyball
Wrestling
TOTAL
$
98,909
57
807
13,955
8,047
146
3,403
8,135
806
-
897
-
(13)
661
8,829
-
4,006
1,490
1,416
-
3,621
7,718
3,428
5,804
289,955
15
11,174
419
9,108
$
1,000
1,417
640
8
-
-
2,548
1,349
2,272
7,592
Student Council
-
11,341
15,738
640
305
198
-
15
JUNE 30,2015
6,421
6,052
1,000
Sideline Cheer - Basketball
EXPENDITURES
$
273,303
111
$
115,561
COLOMA COMMUNITY SCHOOLS
STATEMENT OF REVENUES, EXPENDITURES, AND FUND BALANCE
TRUST FUND - JUNIOR HIGH SCHOOL AND MIDDLE SCHOOL ACTIVITIES ACCOUNT
YEAR ENDED JUNE 30, 2015
TRANSFERS AND
JUNE 30, 2014
REVENUES
JUNE 30, 2015
EXPENDITURES
JUNIOR HIGH
Art
$
Bank Interest
Book Deposit
455
1,639
$
155
Junior High Account
Junior High Special Projects
Media
3,555
10,804
-
2,872
3,171
-
-
41
-
1,100
-
951
-
299
41
8,717
7,185
1,277
-
-
455
1,661
155
-
3,710
11,645
951
Pepsi Fund
Petty Cash
Special Education
-
-
8,562
6,344
1,277
Honor Club
$
$
22
1,100
-
MIDDLE SCHOOL
Art
-
Gym Fund
296
-
Music
214
Paper Pencil
669
Social Work
South Activity
-
$
24,970
$
58
925
296
426
461
318
113
556
241
60
182
5,433
3,788
2,391
2,616
3,737
1,172
-
695
Teachers Funds
305
152
-
565
-
1,352
-
426
-
North Coke Machine
TOTAL
1,657
1,077
-
Box Tops
30,346
$
21,609
$
33,708
COLOMA COMMUNITY SCHOOLS
STATEMENT OF REVENUES, EXPENDITURES, AND FUND BALANCE
TRUST FUND - ELEMENTARY SCHOOL ACTIVITIES ACCOUNT
YEAR ENDED JUNE 30, 2015
TRANSFERS AND
JUNE 30,2014
REVENUES
$
$
EXPENDITURES
JUNE 30,2015
WASHINGTON ELEMENTARY
Student Activities
COLOMA ELEMENTARY
Accelerated Reader
10,598
$
93
-
Art Fund
Book Orders
-
Christmas
287
$
93
-
1,495
5,456
-
10,598
1,450
5,456
45
-
287
-
-
Field Day
Pepsi Fund
480
Social Worker Fund
241
211
305
Gym Fund
Library
296
126
359
63
8,629
4,088
7,709
5,008
Music
426
474
426
474
Special Education
Speech Fund
401
2
26
377
134
21
127
28
8,553
4,080
7,875
5,474
10,096
4,817
6,332
4,737
75
Student Activities
Teachers' Fund
Title I
TOTAL COLOMA ELEMENTARY
TOTAL
75
-
1,249
-
1,729
-
147
136
649
100
685
23,738
27,213
30,946
20,005
$
34,336
$
158,215
27,288
$
41,544
$
20,080
$ 347,588
$
336,456
$
169,348
$
TOTAL STUDENT
ACTIVITY ACCOUNTS
59
COLOMA COMMUNITY SCHOOLS
STATEMENT OF REVENUES, EXPENDITURES, AND FUND BALANCE
TRUST FUND - ADMINISTRATIVE ACTIVITY FUNDS
YEAR ENDED JUNE 30, 2015
DUE TO (FROM)
DUE TO (FROM)
STUDENT GROUPS
JUNE 30, 2014
Book Deposits
$
Fines & Refunds
12,193
$
-
Food Service Refunds
3,546
3,866
EXPENDITURES
JUNE 30, 2015
$
8,580
3,866
59
3,021
87,367
87,447
232
232
232
500
-
1,347
$
STUDENT GROUPS
59
-
Fund Raising
Pop
Rachel's Challenge
Brick sale - athletic complex
TOTAL
REVENUES
TRANSFERS AND
17,293
60
95,220
-
2,941
232
500
1,322
175
$
100,359
7,159
-
-
150
$
$
$
12,154
COLOMA COMMUNITY SCHOOLS
STATEMENT OF REVENUES, EXPENDITURES, AND FUND BALANCE
TRUST FUND -SCHOLARSHIP AND MEMORIAL FUNDS
YEAR ENDED JUNE 30, 2015
DUE TO (FROM)
DUE TO (FROM)
STUDENT GROUPS
JUNE 30, 2014
Dan Stack Memorial Fund
$
Bob In/in Varsity Football Award Fund
REVENUES
194
$
259
Neil Peters Fund
1
1,485
Marian Stack Fund
1,490
1,342
4,691
3
579
1
Barb Mileski Fund
TOTAL
$
EXPENDITURES
JUNE 30, 2015
$
$
-
1
-
1
10,647
$
61
8
1,486
-
-
607
1,491
1,343
4,694
-
-
580
-
$
-
195
259
-
1
607
Keith Penoyar Scholarship Fund
STUDENT GROUPS
-
Paul Ravitch Fund
Gail Kosbau Fund
TRANSFERS AND
$
10,655
COLOMA COMMUNITY SCHOOLS
STATEMENT OF GENERAL LONG-TERM DEBT
JUNE 30, 2015
ASSETS
Amounts available for retirement of debt
$
Amounts to be provided for retirement ofbonds
2,233,829
25,089,446
TOTAL ASSETS
$
27,323,275
$
1,575,000
5,000,000
1,553,275
LIABILITIES
2009 Refunding Bond
Qualified Zone Academy Bonds
Qualified Zone Academy Bonds
2012 Building and Site Bond
19,195,000
TOTAL LIABILITIES
$
62
27,323,275
ADDITIONAL INFORMATION
COLOMA COMMUNITY SCHOOLS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2015
FEDERAL GRANTOR
FEDERAL
PASS THROUGH GRANTOR
APPROVED
ACCRUED
GRANT
(DEFERRED)
PASSED
CFDA
AWARD
REVENUE
THROUGH
NUMBER
AMOUNT
6/30/2014
Direct
10.555
$
58,761
58,761
Summer Food Service 131900
MDE
10.559
$
Summer Food Service 140900
Summer Food Service 130900
Summer Food Service 141900
MDE
10.559
MDE
10.559
MDE
10.559
Summer Food Service 140900
MDE
10.559
1,345
5,211
8,001
1,851
13,903
30,311
PROGRAM TITLE/GRANT NUMBER
U.S. DEPARTMENT OF AGRICULTURE
Direct Programs:
Commodities:
Entitlement
Total Commodities
$
Passed Through Michigan Department of Education
or Berrien County ISD:
Food Distribution
Food and Nutrition Service:
Total Food and Nutrition Service
(5,211)
(5,211)
National School Lunch - Breakfast
Project
Project
Project
Project
141970
141970
151970
131970
105,202
23,986
211,493
12,578
353,259
MDE
10.553
MDE
10.553
MDE
10.553
MDE
10.553
MDE
10.555
MDE
10.555
MDE
10.555
MDE
10.555
MDE
10.555
604
MDE
10.555
52,148
850,771
Total National School Lunch - Breakfast
National School Lunch Program
Section 11 Free and Reduced
Project 151980
Project 151960
Project 141980
Project 141960
Project 121960
Project 131960
Total National School Lunch Program
TOTAL U.S. DEPARTMENT OF AGRICULTURE
CHILD NUTRITUION CLUSTER
1,617
416,411
2,150
377,841
1,293,102
(5,211)
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Drug-Free Communities Support Program Grants
MDE
93.276
6,531
6,531
MDE
MDE
84.010
84.010
1,329,675
1,409,828
4,223,989
Total Educationally Deprived Children
U.S. DEPARTMENT OF EDUCATION
Educationally Deprived Children
Title I - Part A Grants
* Project 1415301314
* Project 1515301415
*Total Educationally Deprived Children
63
454,164
454,164
(MEMO ONLY)
PRIOR
CURRENT
CURRENT
ACCRUED
YEAR
(DEFERRED)
YEARS'
YEAR
CASH
REVENUE
EXPENDITURES
EXPENDITURES
RECEIPTS
6/30/2014
$
$
48,586
48,586
$
1,345
-
13,028
-
-
14,373
58,761
$
58,761
$
-
58,761
$
58,761
$
-
5,211
-
-
-
1,851
13,903
20,965
1,851
13,903
15,754
23,986
211,493
23,986
211,493
235,479
235,479
1,617
416,411
415,972
105,202
12,578
117,780
-
-
2,150
377,841
604
1,617
-
439
-
-
-
-
-
-
-
-
-
-
-
52,148
432,743
418,028
417,589
439
613,482
733,233
727,583
439
6,531
6,531
6,531
6,531
1,322,385
1,322,385
1,197,003
1,197,003
-
454,164
960,876
1,415,040
236,127
236,127
64
COLOMA COMMUNITY SCHOOLS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2015
APPROVED
ACCRUED
FEDERAL
GRANT
(DEFERRED)
PASSED
CFDA
AWARD
REVENUE
THROUGH
NUMBER
AMOUNT
6/30/2014
FEDERAL GRANTOR
PASS THROUGH GRANTOR
PROGRAM TITLE/GRANT NUMBER
(CONTINUED)
Migrant Education
Migrant Regular Formula
Project 131890 1213
Project 151890 1415
Project 131830 1213
Migrant Summer Formula
Project 141890 1314
Project 141830 1415
Total Migrant Education
English Language Acquisition State Grants
Title III English
Total English Language Acquisition State Grants
MDE
84.011
MDE
84.011
MDE
84.011
MDE
84.011
MDE
84.011
68,434
87,947
161,524
716
59,244
149,396
526,545
12,003
-
-
-
12,719
BCISD
84.365
5,498
5,498
BCISD
84.048
50,557
50,557
BCISD
93.778
5,448
78,372
75,455
73,136
150,731
377,694
41,120
5,189,731
481,853
Vocational Education
Regional Allocation 1415
Total Vocational Education
(26,150)
(26,150)
Medical Assistance Program
Medicaid Outreach
Improving Teacher Quality
Title IIA 120520 1112
MDE
84.367
Title IIA 130520 1213
MDE
84.367
Title IIA 140520 1314
MDE
84.367
Title IIA 150520 1415
MDE
84.367
Total Improving Teacher Quality
TOTAL U.S. DEPARTMENT OF EDUCATION
$
TOTAL FEDERAL AWARDS
*Designates a major program
65
6,482,833
1,743
-
39,377
-
$
476,642
(MEMO ONLY)
PRIOR
CURRENT
CURRENT
ACCRUED
YEAR
(DEFERRED)
YEARSf
YEAR
CASH
REVENUE
EXPENDITURES
EXPENDITURES
RECEIPTS
6/30/2014
716
72,642
68,721
3,921
31,622
139,507
243,771
12,003
139,507
220,947
31,622
148,062
48,646
196,708
5,498
5,498
.
-
-
24,764
24,764
30,921
30,921
24,712
24,712
6,318
5,448
5,448
35,543
5,498
5,498
(19,941)
(19,941)
„
1,743
39,377
66,810
-
1,616,985
$ 2,230,467
$
73,702
73,702
39,797
80,917
33,905
33,905
1,556,343
1,747,064
291,132
2,474,647
$ 291,571
2,296,107
$
66
COLOMA COMMUNITY SCHOOLS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2015
1.
*Designates a major program.
2.
The District's funds are accounted for using the modified accrual basis of accounting in which revenues are
recorded in the period in which they are earned. Expenditures are recorded when services are performed or
when materials and supplies are used.
3.
The Administration has utilized the Grants Section Auditors Report (Form R-7120) in preparing the Schedule
of Expenditures of Federal Awards. The only reconciling item is the value of commodities that were received
through the State warehouse in the amount of $58,761.
67
COLOMA COMMUNITY SCHOOLS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2015
Section I - Summary of Auditors' Results
Financial Statements
Type of auditors' report issued:
Unmodified
Internal control over financial reporting:
•
Material weakness (es) identified?
•
Significant deficiency (ies) identified that are not considered
No
No
material weaknesses?
Noncompliance material to financial statements noted?
No
Federal Awards
Internal control over major federal programs:
•
Material weakness (es) identified?
No
•
Significant deficiency (ies) identified that are not considered
No
material weaknesses?
Type of auditors' report issued on compliance for major programs:
Title I Grants to Local Education Agencies (LEAs)
Unmodified
Any auditfindings disclosed that are required to be reported in
No
accordance with section 510(a) of Circular A-133:
No
Any prioryears findings and questioned costs?
Identification of major programs:
CFDA NUMBER(S)
NAME OF FEDERAL PROGRAM OR CLUSTER
84.010
Title I Grants to Local Education Agencies (LEAs)
Dollar threshold used to distinguish between Type Aand Type Bprograms:
Auditee qualified as low-risk auditee?
$300,000 and $100,000 respectively
Yes
COLOMA COMMUNITY SCHOOLS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2015
Section II- Financial Statement Findings
There were no auditfindings required to be reported on thisschedule forthe year ended June 30,2015.
Section III- Federal Award Findings and Questioned Costs
There were no audit findings required to be reported on this schedule for the year ended June 30,2015.
69
COLOMA COMMUNITY SCHOOLS
SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2014
Section II - Financial Statement Findings
There were no auditfindings required to be reported on this schedule for the year ended June 30, 2014.
Section III- Federal Award Findings and Questioned Costs
There were no audit findings required to be reported on this schedule for the year ended June 30,2014.
70
401 North Sage Street, Kalamazoo, Ml 49006
Tel 269-382-5027
Fax 269-382-3775
www.ullrey.com
Jack A. Ullrey, CPA
*M.V
LLRE Y
&COMPANY
'
CERTIFIED PUBLIC ACCOUNTANTS
Bruce E.Justin, CPA
Jason M. Martin, CPA
David W. Marshall, CPA
Jessica M. Ullrey, CPA
David S. Ullrey, CPA
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Board of Education of
Coloma Community Schools
Coloma, Michigan
We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, and each major
fund of Coloma Community Schools, as of and for the year ended June 30, 2015, which collectively comprise the
Coloma Community Schools' basic financial statements and have issued our report thereon dated October 27,
2015.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Coloma Community Schools'
internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness ofColoma Community Schools' internal control. Accordingly, we do
not express an opinion on the effectiveness of Coloma Community Schools' internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. Amaterial weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement ofthe entity's financial statements
will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or,
significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Coloma Community Schools' financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts.
However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of
our tests disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
We did not issue a management letter to Coloma Community Schools.
Member of American Institute of Certified Public Accountants and Michigan Association of Certified Public Accountants
Purpose of this Report
The purpose ofthis report is solely to describe the scope ofour testing ofinternal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
^UMm^ <r Ce^p^Ullrey & Company
Certified Public Accountants
Kalamazoo, Michigan
October 27, 2015
72
401 North Sage Street, Kalamazoo, Ml 49006
Tel 269-382-5027
Fax 269-382-3775
ULLREY
&COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
www.ullrey.com
Jack A. Ullrey, CPA
Bruce E.Justin, CPA
Jason MMartin, CPA
David W. Marshall, CPA
Jessica M. Ullrey, CPA
David S. Ullrey, CPA
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT
ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
To the Board of Education of
Coloma Community Schools
Report on Compliance for Each Major Federal Program
We have audited Coloma Community School's compliance with the types of compliance requirements described
in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on Coloma
Community School's major federal programs for the year ended June 30, 2015. Coloma Community School's
major federal programs are identified in the summary of auditor's results section of the accompanying schedule 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 programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for Coloma Community School's major federal
programs based on our audit of the types of compliance requirements referred to above. We conducted our audit
of compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements referred to above
that could have a direct and material effect on a major federal program occurred. An audit includes examining, on
a test basis, evidence about Coloma Community School's compliance with those requirements and performing
such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of Coloma Community School's compliance.
Opinion on Each Major Federal Program
In our opinion, Coloma Community Schools, complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major federal programs
for the year ended June 30, 2015.
Other Matters
The results of our auditing procedures disclosed no instances of noncompliance, which are required to be
reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of
findings and questioned costs as item. Our opinion on each major federal program is not modified with respect to
these matters.
Member of American Institute of Certified Public Accountants and Michigan Association of Certified Public Accountants
Report on Internal Control Over Compliance
Management of Coloma Community Schools, is responsible for establishing and maintaining effective internal
control over compliance with the types of compliance requirements referred to above. In planning and performing
our audit of compliance, we considered Coloma Community School's internal control over compliance with the
types of requirements that could have a direct and material effect on each major federal program to determine the
auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major federal program and to test and report on internal control over compliance in
accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of
internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Coloma
Community School's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a
timely basis. A material weakness in internal control over compliance is a deficiency, or combination of
deficiencies, in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal
program that is less severe than a material weakness in internal control over compliance, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133.
Accordingly, this report is not suitable for any other purpose.
^jj^^o^^lr
Ullrey & Company
Certified Public Accountants
Kalamazoo, Michigan
October 27, 2015
74