FY 2014 Comprehensive Annual Financial Shakeel Yusuf. Comptroller Meir Zupovitz. Assistant Comptroller. CAFR PROJECT TEAM. Monique Remy Chief Accountant. Anita Kapper, CPA Financial

COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year ended June 30

www.fcps.edu

Fairfax County Public Schools, Virginia A component unit of the County of Fairfax, Virginia

2014

Fairfax County public schools, virginia A component unit of the County of Fairfax, Virginia

Prepared by the Department of Financial Services

ComPrehenSiVe AnnuAl FinAnCiAl rePort For the fiscal year ended June 30 2014

FAIRFAX COUNTY PUBLIC SCHOOLS • 2014 COMPREHENSIVE ANNUAL FINANCIAL REPORTii

This Comprehensive Annual Financial Report (CAFR) was prepared by:

DEPARTMENT OF FINANCIAL SERVICES

8115 Gatehouse Road Falls Church, Virginia 22042

(571) 423-3750 www.fcps.edu/fs

Susan S. Quinn, CPA Chief Operating Officer

Kristen Michael Assistant Superintendent

Financial Services

Shakeel Yusuf Comptroller

Meir Zupovitz Assistant Comptroller

CAFR PROJECT TEAM

Monique Remy Chief Accountant

Anita Kapper, CPA Financial Reporting Manager

Heidi Wilson, CPA Financial Reporting Manager

Gary Zoellner, CPA Angela Chu

Vita Tabasondra

FAIRFAX COUNTY PUBLIC SCHOOLS • 2014 COMPREHENSIVE ANNUAL FINANCIAL REPORT iii

INTRODUCTORY SECTION (UNAUDITED)

Letter of Transmittal ......................................................................................................................................................................................... vii School Board Members and Administration .......................................................................................................................................... xvi Organizational Chart ...................................................................................................................................................................................... xvii Awards for Excellence in Financial Reporting .....................................................................................................................................xviii

FINANCIAL SECTION

Independent Auditors’ Report ........................................................................................................................................................................3 Management’s Discussion and Analysis (unaudited) .............................................................................................................................6

BASIC FINANCIAL STATEMENTS

Exhibit GOVERNMENT-WIDE FINANCIAL STATEMENTS

A Statement of Net Position ................................................................................................................................................. 21 B Statement of Activities ....................................................................................................................................................... 22

FUND FINANCIAL STATEMENTS C Balance Sheet—Governmental Funds ......................................................................................................................... 23 C-1 Reconciliation of the Balance Sheet to the Statement of Net Position— Governmental Funds .................................................................................................................................................... 24 D Statement of Revenues, Expenditures, and Changes in Fund Balances— Governmental Funds .................................................................................................................................................... 25 D-1 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund

Balances to the Statement of Activities—Governmental Funds ................................................................. 26 E Statement of Net Position—Proprietary Funds ........................................................................................................ 27 F Statement of Revenues, Expenses, and Changes in Fund Net Position—Proprietary Funds ................. 28 G Statement of Cash Flows—Proprietary Funds .......................................................................................................... 29 H Statement of Fiduciary Net Position—Fiduciary Funds ........................................................................................ 30 I Statement of Changes in Fiduciary Net Position—

Pension and Other Post-Employment Benefit Trust Funds ........................................................................... 31

Note NOTES TO THE FINANCIAL STATEMENTS

I Summary of Significant Accounting Policies ............................................................................................................. 32 II Reconciliation of Government-Wide and Fund Financial Statements ............................................................. 39 III Detailed Notes to All Funds .............................................................................................................................................. 39 IV Other Information ................................................................................................................................................................ 53

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

Exhibit J Budgetary Comparison Schedule—Budget and Actual—General Fund ....................................................... 65 K Schedule of Funding Progress—Pension and Other Post-Employment Benefit Trust Funds ................. 66 L Schedule of Employer Contributions—Pension and Other Post-Employment Benefit Trust Funds .... 66

Notes to the Required Supplementary Information ............................................................................................... 67

Table of Contents

FAIRFAX COUNTY PUBLIC SCHOOLS • 2014 COMPREHENSIVE ANNUAL FINANCIAL REPORTiv

OTHER SUPPLEMENTARY INFORMATION (UNAUDITED)

Exhibit NONMAJOR GOVERNMENTAL FUNDS

M Combining Balance Sheet—Nonmajor Governmental Funds ............................................................................ 73 N Combining Statement of Revenues, Expenditures, and Changes in Fund Balances—

Nonmajor Governmental Funds .............................................................................................................................. 74 Budgetary Comparison Schedules—Budget and Actual:

O Food and Nutrition Services Fund ................................................................................................................................. 75 P Grants and Self-Supporting Programs Fund .............................................................................................................. 76 Q Adult and Community Education Fund ....................................................................................................................... 77

INTERNAL SERVICE FUNDS R Combining Statement of Net Position—Internal Service Funds ........................................................................ 81 S Combining Statement of Revenues, Expenses, and Changes in Fund Net Position—

Internal Service Funds ................................................................................................................................................. 82 T Combining Statement of Cash Flows—Internal Service Funds .......................................................................... 83

FIDUCIARY FUNDS U Combining Statement of Fiduciary Net Position—

Pension and Other Post-Employment Benefit Trust Funds ........................................................................... 87 V Combining Statement of Changes in Fiduciary Net Position—

Pension and Other Post-Employment Benefit Trust Funds ........................................................................... 88 W Statement of Changes in Assets and Liabilities—Student Activity Fund........................................................ 89

STATISTICAL SECTION (UNAUDITED)

Table 1 Net Position by Component ............................................................................................................................................. 92 2 Changes in Net Position ..................................................................................................................................................... 94 3 Fund Balances of Governmental Funds ....................................................................................................................... 96 4 Changes in Fund Balances of Governmental Funds ................................................................................................ 98 5 Charges for Services Revenue by Source ..................................................................................................................100 6 Food Service Sales Price Breakdown ...........................................................................................................................101 7 Principal Food Service Sales by Client ........................................................................................................................101 8 Food Sales—Meals Served Daily ..................................................................................................................................102 9 Ratios of Debt Outstanding ............................................................................................................................................103 10 Enrollment Trend ...........................................................................