comprehensive - richland2.org...weakness in the internal control structure or significant violations...

COMPREHENSIVE

ANNUAL FINANCIAL REPORT

OF

RICHLAND SCHOOL DISTRICT TWO

COLUMBIA, SOUTH CAROLINA

FOR THE FISCAL YEAR ENDED

JUNE 30, 2014

Prepared by:Office of Finanicial Services

Debra W. Hamm, Ph.D.Superintendent

Harry W. Miley, Jr., Ph.D.Chief Financial Officer

We gratefully acknowlege Hannah Laurel Gorman from Spring Valley High School Class of 2014 for the artwork used on the report cover.

Reference Page

Letter of Transmittal from Administration 1-5

Principal Officers 6

Organizational Chart 7

GFOA Certificate of Achievement for Excellence in Financial Reporting 8

ASBO Certificate of Excellence in Financial Reporting 9

INDEPENDENT AUDITORS' REPORT 10-12

Management's Discussion and Analysis 13-23

Basic Financial Statements

Government-Wide Financial Statements

Statement of Net Position Exhibit 1 26

Statement of Activities Exhibit 2 27

Fund Financial Statements

Balance Sheet - Governmental Funds Exhibit 3 28

Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Exhibit 4 29

Statement of Revenues, Expenditures, and Changes in Fund Balances -Governmental Funds Exhibit 5 30

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities Exhibit 6 31

Statement of Net Position - Proprietary Funds Exhibit 7 32

Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds Exhibit 8 33

Statement of Cash Flows - Proprietary Funds Exhibit 9 34

Statement of Fiduciary Assets and Liabilities - Agency Fund Exhibit 10 35

Notes to Financial Statements 36-55

General Fund

Budgetary Comparison Schedule Schedule A-1 58

Schedule of Revenues, Expenditures, and Changes in Fund Balance -Revised Budget and Actual Schedule A-2 59-65

Special Revenue FundsSpecial Projects Fund

Schedule of Revenues, Expenditures, and Changes in Fund Balances Schedule B-1 67-74Summary Schedule for Designated State Restricted Grants Schedule B-2 75

Education Improvement Act

Schedule of Revenues, Expenditures and Changes in Fund Balance Schedule B-3 76-81Summary Schedule by Program Schedule B-4 82

Required Supplementary Information


TABLE OF CONTENTS

YEAR ENDED JUNE 30, 2014

INTRODUCTORY SECTION

FINANCIAL SECTION

i.


TABLE OF CONTENTS


Reference Page

Debt Service Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance Schedule C-1 84

Capital Projects Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance Schedule D-1 86-87

Proprietary Funds

Enterprise Fund:Schedule of Revenues, Expense and Changes in Net Position - Food Service Program Schedule E-1 89

Internal Service Fund:Statement of Changes in Net Position Schedule F-1 91

Schedule of Revenues, Expenses and Changes in Net Position Schedule F-2 92-93

Fiduciary Fund - Agency Fund - Pupil Activity

Statement of Changes in Fiduciary Assets and Liabilities Schedule G-1 95Schedule of Receipts, Disbursements, and Changes in Due to Pupil Activities Schedule G-2 96

Component Unit - Charter High School

Statement of Financial Position Schedule H-1 98

Schedule of Revenues, Expenses and Changes in Net Position Schedule H-2 99

Other Supplemental Schedules

Detailed Schedule of Due to State Department of Education/Federal Government Schedule I-1 101

Reference Page

Net Position by Component Table 1 104Expenses, Program Revenues and Net (Expenses) Table 2 105General Revenues and Total Change in Net Position Table 3 106Fund Balances of Governmental Funds Table 4 107Governmental Fund Revenues Table 5 108Governmental Funds Expenditures and Debt Service Ratio Table 6 109Other Financing Sources and Usese and Net Changes in Fund Balances, Governmental Funds Table 7 110Assessed Value and Actual Value of Taxable Property Table 8 111Direct and Overlapping Property Tax Rates Table 9 112Principal Property Taxpayers Table 10 113Property Tax Levies and Collections Table 11 114Ratios of Debt Outstanding Table 12 115Legal Debt Margin Table 13 116Direct and Overlapping Debt Table 14 117Demographic and Economic Statistics Table 15 118Principal Employers Table 16 119Full-Time Equivalent School District Emplolyees by Type Table 17 120Operating Statistics Table 18 121School Building Information Table 19 122-125Teacher Base Salaries Table 20 126

TABLE OF CONTENTS (CONTINUED)FINANCIAL SECTION (CONTINUED)

ii.

STATISTICAL SECTION


TABLE OF CONTENTS


Independent Auditors' Report on Internal Control Over Financial Reporting andOn Compliance and Other Matters Based on an Audit of Financial StatementsPerformed in Accordance with Government Auditing Standards 128-129

Independent Auditors' Report on Compliance for each Major Program and on Internal Controlover Compliance Required by OMB Circular A-133 130-131

Schedule of Expenditures of Federal Awards 132

Notes to the Schedule of Expenditures of Federal Awards 133

Schedule of Findings and Questioned Costs 134

Schedule of Prior Year Findings and Questioned Costs 135

SINGLE AUDIT SECTION

iii.

TABLE OF CONTENTS (CONTINUED)

November 24, 2014

To the Citizens of Richland School District Two Columbia, South Carolina

The Comprehensive Annual Financial Report of Richland School District Two for the fiscal year ended June 30, 2014, is submitted. Responsibility for both the accuracy of the data and the completeness of the information, including all disclosures, rests with the school district. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the school district.

This report consists of management’s representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of Richland School District Two has established a comprehensive internal control process that is designed both to protect the District’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the District’s financial statements in conformity with generally accepted accounting principles. As the cost of internal controls should not outweigh their benefits, the school district’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements. Management asserts that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The independent audit of the financial statements of Richland School District Two was a part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements involving the administration of federal awards. These reports are available in the compliance section of this comprehensive annual financial report.

As part of the District’s single audit, tests are made to determine the adequacy of the internal control structure, including the portion related to federal financial assistance programs, as well as to determine that the District has complied with applicable laws and regulations. The results of the Single Audit revealed no instances of material weakness in the internal control structure or significant violations of laws, regulations, contracts, or grants.

Generally accepted accounting principles require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with the MD&A, which can be found immediately following the report of the independent auditors.

6831 Brookfield Road, Columbia, SC 29206 ~ www.richland2.org ~ 803.787.1910

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Profile of the School District

The District is a political subdivision of the State of South Carolina. The District is located in the northeastern section of Richland County and is bordered on the west by Richland School District One of Richland County, on the east and on the south by Kershaw County, and on the north by Fairfield County. The City of Columbia, the state capitol of South Carolina, is also the business and financial center of the state. The Columbia Metropolitan Statistical Area (MSA) has an estimated population of 783,000.

The District operates two early childhood development centers, eighteen elementary schools, seven middle schools, five high schools, three elementary magnet schools, two alternative schools and one adult education center.

Richland School District Two is governed by a seven member Board of Trustees elected at large by the voters of the District. Board members are elected to four year terms. As of June 30, 2014, the District served approximately 26,877 students. The District continues to be one of the fastest growing districts in the state as it has been over the past decade.

Component Unit

The District does have a component unit consisting of a hybrid virtual charter high school serving close to 80 students from grades 9 through 12, predominately from the Richland Two area. The Richland 2 Charter High School is chartered by the District. It has an independent Board overseeing its operations.

A charter school is considered a state supported public school, and as a result, is part of the District for purposes of the State Constitution. The financial statements of the Richland Two Charter High School are presented as a discretely presented component unit because the charter school is financially dependent on the District.

The school is designed to reduce the dropout rate by addressing the needs of students who could not successfully participate in a traditional high school environment. It offers a small school setting with a flexible class schedule tailored to the individual needs of each student and provides career counseling and development of job skills through seminars, job shadowing, and internships. Funding for the charter high school is formula based and consists of local, state and federal per pupil allocations. The charter high school does reimburse the District for expenses incurred in providing support services.

Economic Condition

State and federal payrolls are major sources of employment and income for residents of the County. The state of South Carolina employs about 30,000 persons in the County. The County has experienced considerable expansion of Federal, State and County facilities. The headquarters of Blue Cross / Blue Shield of South Carolina is located in the School District where the company employs approximately 6,900 people. The headquarters of SCANA Corporation, a $5 billion enterprise, the parent company of South Carolina Electric & Gas, is located in the Columbia MSA. There are significant industrial enterprises within the School District including Bose Corporation and FN Manufacturing, Inc.


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Fort Jackson, the United States Army’s largest training installation, is located adjacent to the District and is a major contributor to the economy. Fort Jackson employs approximately 5,200 civilian employees and provides services to 36,000 retired military personnel and their dependents living in the Columbia MSA. The Fort instructs in excess of 50,000 soldiers in basic training and advanced individual training each year.

Richland County estimated per capita income was estimated to be $39,941 for 2014. As of September 2014, the estimated unemployment rate for Richland County was 6.6%.

Long-term Financial Planning

As previously noted, Richland School District Two has been one of the fastest growing school districts in South Carolina over the past decade. To address this growth, the Board annually updates a 10 Year Facility Plan. As part of that plan, in November 2008, voters approved by a 67% yes vote a $306 million referendum which funded four new elementary schools, a new middle school and a new high school along with expansions to several existing facilities.

The growth in student enrollment is projected to be 500 – 1000 per year which will put student enrollment around 30,000 in the 2018-2019 school year.

Budgetary Control

Richland School District Two exercises budgetary controls. The objective of these budgetary controls is to ensure compliance with the provisions set forth in the annual appropriation adopted by the Board of Trustees. The Board of Trustees annually adopts and approves the General Fund budget by June 30th. The District maintains the modified accrual system for all governmental funds, and uses encumbrance accounting to accomplish budgetary controls at the function level. The Superintendent has authority to approve line item transfers within a fund. The legal level of control is at the fund level. Board approval is needed for supplemental appropriations that are additions to the budget. Encumbrances are utilized to assist in budgetary control, and encumbrances lapse at fiscal year end. The Board of Trustees is given a budget status report on a quarterly basis which is reviewed by members of the Board.

Special Revenue fund budgets are controlled in conformance with the specific requirements of that fund, and budgets are not legally adopted. Budgets are not adopted for the Capital Projects Fund or the Debt Service Fund. Debt Service expenditures are set in accordance with bond issue requirements, with revenues needed to pay the debt service requirement levied by the County Auditor.

Economic Assessment

District policies are in place to assess and maintain the economic condition of the District. Among these is Policy DA which states the District’s Fiscal Management Goals including a requirement to maintain a reserve fund of from seven to fifteen percent of the General Fund Operating Budget. Other policies address managing indebtedness and debt service, determining a budget that reflects the education priorities of the District, maintaining a level of per student expenditures needed to provide a quality education, as well as other polices regarding investments, inventories and various other aspects of financial operations designed to assist in assessing and maintaining the economic condition of the District.


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Awards and Acknowledgements for 2013-2014

• Twenty-seven additional district teachers earned certification from the National Board for ProfessionalTeaching Standards for a total of 678 district teachers. The District has more Nationally Board Certifiedteachers than any other district in the state.

• Fourteen schools received the State Department of Education’s Palmetto Gold and Silver Awards. Bethel-Hanberry Elementary (1 gold and 1 silver award), Blythewood High, Blythewood Middle (2 gold awards),Bookman Road Elementary, L.W. Conder (1 gold and 1 silver award), Lake Carolina Elementary (2 goldawards), Polo Road Elementary, Ridge view High (2 gold awards), Round Top Elementary, Spring ValleyHigh School (2 gold awards) and Summit Parkway Middle received Gold Awards. Kelly Mill Middle (2 silverawards), Sandlapper Elementary and Windsor received Silver Awards.

• Blythewood Middle was named a National Schools to Watch by the National Forum to Accelerate MiddleGrades Reform.

• Richland Two received the Power to the People Digital Learning Award and Pillar of Leadership inTechnology Award for technology innovation.

• For the second year in a row Richland Two has a finalist for the Presidential Award for Excellence inMathematics and Science Teaching for the State of South Carolina.

• Richland Two students received more than $75.2 million in scholarship offers, including six NationalAchievement Scholarship semifinalists and fourteen National Merit Scholarship semifinalists.

• The Government Finance Officers Association (GFOA) awarded the Certificate of Achievement for Excellencein Financial Reporting to Richland School District Two for its Comprehensive Annual Financial Report (CAFR)for the fiscal year ended June 30, 2013. This is the 27th consecutive year that the District has received thisprestigious award.

• The District also received a Certificate of Excellence in Financial Reporting for the fiscal year ended June 30,2013 from the Association of School Business Officials International (ASBO). This was the 27th consecutiveyear that the District has received this prestigious award.

A Certificate of Achievement and a Certificate of Excellence in Financial Reporting are valid for one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement and Certificate of Excellence in Financial Reporting requirements. We are submitting it to GFOA and ASBO for review and consideration.


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Acknowledgements

The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated efforts of the entire Financial Services office staff. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report.

In closing, without the leadership and support of the Richland School District Two Board of Trustees, preparation of the report would not have been possible.

Respectfully submitted,

Debra W. Hamm, Ph.D. Superintendent

Harry W. Miley, Jr., Ph.D. Chief Financial Officer


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Principal Officers2013-2014

MEMBERS OF THE BOARD OF TRUSTEES

The Honorable Calvin "Chip" Jackson, Chair

The Honorable James Manning, M.A.T., Vice Chair

The Honorable Barbara Specter, Secretary

The Honorable Melinda Anderson, R.N.

The Honorable Susan Brill

The Honorable Monica Elkins-Johnson, Ed.S

The Honorable William R. Flemming, Jr., DMD

ADMINISTRATIVE STAFF

Debra W. Hamm, Ph.D.Superintendent

Harry W. Miley, Jr., Ph.D.Chief Financial Officer

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Richland School District Two Page 2 of 3 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, the business-type activities, the aggregate discretely presented component unit and each major fund of Richland School District Two, as of June 30, 2014, and the respective changes in financial position, and, where applicable, cash flows 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 13 through 23 and 58, 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 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 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 School District’s basic financial statements. The introductory section, combining and individual non-major fund financial statements and schedules, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The 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.

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RICHLAND SCHOOL DISTRICT TWO MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)

FOR THE FISCAL YEAR ENDED JUNE 30, 2014

INTRODUCTION

This narrative overview gives an analysis of the financial activities of the School District for the fiscal year ended June 30, 2014. Our purpose is to inform our citizens of the effect of our School District’s operations and to present our financial position. We ask our citizens to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal as well as the basic financial statements and the associated notes to enhance understanding of the School District’s financial performance.

FINANCIAL HIGHLIGHTS

A sweeping piece of legislation impacting the funding of public K-12 education, Act 388, was passed by the South Carolina Legislature in 2007. This legislation removed taxes imposed for school operations for owner-occupied property in South Carolina. It was replaced by a one cent sales tax increase. Act 388 also imposed a cap on the annual increase in millage for school operations.

In this, the seventh year under this legislation, Richland School District Two found that the cap allowed for an adequate level of local funding for FY 2013-2014. The School District was also fortunate to maintain its "Aa1" rating from Moody's; an AA- from Fitch Ratings; and Standard & Poor’s AA- for general obligation debt. All three firms cited the School District’s experienced and capable management, long-term capital facilities planning, and stable financial operations in awarding their rating.

Our School District’s overall financial picture improved in FY 2013-2014 as revenues again exceeded expenditures for the tenth year in a row and we were able to increase our General Fund Balance by $4.5 million. As of June 30, 2014, the School District’s General Fund Balance was over $38.3 million (17.1% of the total School District operating budget), slightly exceeding the range of 7-15% preferred by Board Policy.

Other key financial aspects were as follows:

• Revenues, Other Financing Sources and Expenditures – Governmental revenues totaled$316.1 million, other financing sources/(uses) totaled close to $10.1 million, and expenditurestotaled over $339.0 million for all Governmental Funds at the fund level. Revenues were lessthan expenditures by $22.9 million. This is largely attributable to the capital projects fundexpenditures of $31.3 million, incurred to complete construction of a new elementary school, aswell as renovations to other existing schools.

• General Fund/Fund Balance - Our principal operating fund, the General Fund, had $222.8million in fiscal year 2014 revenues; other financing sources (net) totaled close to $4.1 million;expenditures totaled $222.3 million, leaving a surplus for the year of over $4.5 million. Thisresulted in the General Fund's fund balance increasing from $33.7 million as of June 30, 2013 to$38.3 million, or 17.1% of the operating budget, as of June 30, 2014.

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• Bond Sales - The School District issued $9,430,000 in general obligation bonds that were non-referendum bonds issued for capital and technology improvements during the 2013-2014 fiscalyear.

• Major Capital Additions - The School District’s net capital assets for governmental activitiesincreased by $14.8 million or 2.1%. This is largely attributable to the construction in progress of anew elementary school and renovations at various other schools.

• Proprietary Funds – The School District maintains two Proprietary Fund types. The EnterpriseFund, which operates like a business, is the Food Service Fund. The fund ended the year with anincrease in net position of $285k and total net position equaling over $5.5 million. The Board ofTrustees approved for the School District to self-insure for Worker’s Compensation beginning inthe 2008-2009 fiscal year. To fund the self-insurance program the School District transferred $1million in FY 2007-2008 to establish the Internal Service Fund to account for the WorkersCompensation Program beginning July 1, 2008. The fund provides workers compensationbenefits to School District employees and is a governmental activity. The fund ended the yearwith an increase in net position of $335k and total net position exceeding $796k.

• Cash and Investments (Governmental Activities) - Cash and Investments increased by $35million from June 30, 2013 to June 30, 2014 which is largely attributable to the funding of capitalprojects previously referenced.

• Debt (Governmental Activities) - The School District retired $29.3 million in principal andborrowed $9.43 million in new bond issues resulting in a net decrease of outstanding debt of$19.8 million. The Debt Service Fund Balance increased by $2.2 million to a total in excess of$18.1 million.

OVERVIEW OF FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the School District's basic financial statements. The School District's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements (General, Special Revenue, Debt Service, Capital Projects, Fiduciary (Pupil Activity), Proprietary (Food Service) and the Internal Service) and 3) Notes to the basic financial statements. This report also contains required and other supplementary information in addition to the basic financial statements themselves. A description of these statements and some related definitions follow:

Government-wide Financial Statements - The government-wide financial statements are designed to provide readers with a broad overview of the School District's finances, in a manner similar to a private-sector business. These statements outline functions of the School District that are principally supported by property taxes and intergovernmental revenues (governmental activities). The governmental activities of the School District include instruction, support services, community services, and intergovernmental expenditures. The government-wide financial statements include not only the School District itself (known as the primary government), but also a discretely presented component unit. The component unit is a legally separate charter school. Financial information for the charter schools is reported separately from the financial information presented for the primary government itself; this information is not

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significant or material to the School District as a whole. See note 1A of the Notes to the Basic Financial Statement on page 36.

The government-wide financial statements can be found on pages 26 and 27 of this report.

Statement of Net Position - The statement of net position presents information on all of the School District's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the School District is improving or deteriorating.

Statement of Activities - The statement of activities presents information showing how the School District's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences).

Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The School District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the School District can be divided into three categories: governmental, proprietary and fiduciary.

Governmental Funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. Unlike the government-wide financial statements, however, governmental fund financial statements focus on near-term inflows of resources, as well as on balances of resources available at the end of the fiscal year. Such information may be useful in evaluating the School District's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the School District's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations are on pages 29 and 31.

The School District maintains its accounting records in conformity with the South Carolina Department of Education’s Financial Accounting Handbook. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General, Special Revenue, Education Improvement Act (EIA), Debt Service and Capital Projects Funds, all of which are considered to be major funds. The basic governmental funds financial statements can be found on pages 28 and 30.

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Proprietary Funds – The School District uses two types of proprietary funds: enterprise and internal service funds. The School District uses an enterprise fund to account for its food service operations and is presented as business-type activities in the government-wide financial statements. The School District also uses an internal service fund to account for self-funded workers compensation benefits. Internal services benefit governmental activities and are included within that column in the government-wide financial statements. The School District’s internal service fund is also presented in a single column in the proprietary fund financial statements as governmental activities. The basic proprietary fund financial statements can be found on pages 32 through 34 of this report.

Fiduciary Funds - Fiduciary (Pupil Activity) funds are used to account for resources held for the benefit of students and are not reflected in the government-wide financial statements because the resources of those funds are not available to support the School District's own programs. The basic fiduciary fund financial statement can be found on page 35 of this report.

Notes to basic financial statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 36 through 55 of this report.

Supplemental information - In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the School District's budget process. The School District legally adopts an annual budget for the General Fund. A budgetary comparison statement has been provided for the General Fund and other supplementary information schedules required by the State Department of Education, the certificate program of the Government Finance Officers’ Association, or the Certificate of Excellence of the Association of School Business Officials International. The required supplementary information can be found beginning on page 58 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS-THE GOVERNMENT AS A WHOLE

Net position may serve over time as a useful indicator of a government’s financial situation. In the case of the School District as a whole, total assets exceeded total liabilities by $169.7 million as of June 30, 2014. Overall, the School District’s financial position increased in total net position by $11.1 million during 2013-2014, as a result of a gradual decline in costs associated with the construction of new schools.

By far the largest portion of the School District's assets, $116.0 million (68.3%) reflects its net investment in capital assets (e.g., land, buildings and improvements, vehicles, furniture and equipment and construction in progress). The School District uses these capital assets to provide services to its students; consequently, these assets are not available for future spending. Although the School District's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

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The following table presents a summary of the School District's net position at June 30, 2014 compared to June 30, 2013.

2013 2014 2013 2014 2013 2014Assets

Current and Other Assets 204,063,905$ 186,864,660$ 3,965,070$ 3,756,296$ 208,028,975$ 190,620,956$ Capital Assets 547,622,119 545,054,432 2,528,910 2,234,238 550,151,029 547,288,670

Total Assets 751,686,024 731,919,092 6,493,980 5,990,534 758,180,004 737,909,626

Liabilities

Other Liabilities 24,725,268 22,731,864 1,000,609 222,740 25,725,877 22,954,604 Long-Term Liabilities 564,074,829 538,041,732 100,672 86,695 564,175,501 538,128,427

Total Liabilities 588,800,097 560,773,596 1,101,281 309,435 589,901,378 561,083,031

Deferred Inflows of Resources

Unearned Revenues 8,289,827 7,012,696 108,255 111,075 8,398,082 7,123,771

Total Deferred Inflow of Resources 8,289,827 7,012,696 108,255 111,075 8,398,082 7,123,771

Net PositionNet Investment in Capital Assets 109,733,690 113,769,149 2,528,910 2,234,238 112,262,600 116,003,387 Restricted 12,180,380 14,499,495 - - 12,180,380 14,499,495 Unrestricted 32,682,030 35,864,156 2,755,534 3,335,786 35,437,564 39,199,942

Total Net Position 154,596,100$ 164,132,800$ 5,284,444$ 5,570,024$ 159,880,544$ 169,702,824$

Net Position

Governmental Activities Business-Type Activities Totals

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The following table shows the changes in net position for fiscal years ended June 30, 2013 and 2014:

Governmental Activities - The School District's financial position is the product of several financial transactions including the net results of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets.

The School District’s revenue for total governmental activities for FY 2014 exceeded $316.0 million and exceeded expenses by $10.7 million. In November 2008, voters approved a bond referendum to fund the construction of four new elementary schools, one new middle school, and one new high school, as well as renovations to our existing schools. With the passage of Act 388 by the South Carolina General Assembly, the classification of revenues for governmental activities reflects revenue that was formerly classified as Property Tax Revenue to now be classified as State Aid. Act 388 replaces local property taxes for owner occupied homes with funds generated from an additional one cent sales tax collected by the State of South Carolina. Act 388 did not, however, affect property taxes collected for debt service purposes. Overall, the School District’s net position for governmental activities increased by approximately $10.9 million, primarily related to debt issued for continued capital projects.

2013 2014 2013 2014 2013 2014RevenuesProgram Revenues:

Charges for Services 454,724$ 497,578$ 3,408,127$ 3,107,800$ 3,862,851$ 3,605,378$ Operating Grants 121,897,536 127,304,694 7,398,346 7,788,741 129,295,882 135,093,435

General Revenue:Property Taxes 125,673,689 134,763,620 125,673,689 134,763,620 Federal and State Aid 51,422,890 50,670,589 51,422,890 50,670,589 Investment Earnings 2,650,981 600,886 25,371 27,871 2,676,352 628,737 Other 2,200,928 2,225,996 63,430 420,041 2,264,358 2,646,057

Total Revenues 304,300,748 316,063,363 10,895,274 11,344,453 315,196,022 327,407,816

Program ExpensesInstruction 166,236,699 171,250,774 166,236,699 171,250,774 Supporting Services 114,697,049 116,519,318 114,697,049 116,519,318 Community Services 1,534,120 1,189,962 1,534,120 1,189,962 Intergovernmental 1,017,972 1,391,393 1,017,972 1,391,393 Interest and Fiscal Charges 28,822,086 14,944,692 28,822,086 14,944,692 Food Service 11,392,466 10,911,686 11,392,466 10,911,686

Total Program Expenses 312,307,926 305,296,139 11,392,466 10,911,686 323,700,392 316,207,825

Change in Net Position before Transfers (8,007,178) 10,767,224 (497,192) 432,767 (8,504,370) 11,199,991

Transfers (136,761) 147,187 70,521 (147,187) (66,240) -

Change in Net Position (8,143,939) 10,914,411 (426,671) 285,580 (8,570,610) 11,199,991

Net Position, Beginning of Year (As Previously Reported) 162,740,039 154,596,100 5,711,115 5,284,444 168,451,154 159,880,544 Cumulative Effect of GASB 65 Adoption (1,377,711) - (1,377,711)

Net Position, End of Year 154,596,100$ 164,132,800$ 5,284,444$ 5,570,024$ 159,880,544$ 169,702,824$

Changes in Net Position

Governmental Activities Business-Type Activities Totals

18



The following charts show the breakdown of revenues supporting governmental Activities and the net cost of services related to governmental activities for the year ended June 30, 2014:

-

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

Instruction Support Services Community Services Interest & OtherCharges

Intergovernmental

Governmental Activities-Net Cost of Services For the fiscal year ended June 30, 2014

Revenues Expenses

Restricted Grants and Contributions

39.9% Property Taxes for General

Operating 26.3%

Property Taxes for Debt Service 16.0%

Unrestricted Grants and Contributions

15.9%

Investment Earnings 0.2%

Charges for Services 1.0% Other

0.7%

Revenues Supporting Governmental Activities-By Source for the fiscal year ended June 30, 2014

Restricted Grants and Contributions

Property Taxes for General Operating

Property Taxes for Debt Service

Unrestricted Grants and Contributions

Investment Earnings

Charges for Services

Other

19



Business-type Activities – Net position for the School District’s business-type activities increased by $285.5k. Program revenues increased by $90k, or 0.8%, and program expenses increased by $480k, or 4.2%. The increase in revenue is largely due to an increase in USDA federal reimbursements of approximately, as well as an increase in student population and a shifting free and reduced population. The expenditure decrease is as a result of a decline in the total percentage of meals served due to changes in content and serving sizes as a result of the Healthy, Hunger-Free Kids Act.

FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S MAJOR FUNDS

As noted earlier, the School District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on individual parts of the School District and not on the School District as a whole, and report the School District’s operations in more detail than the government-wide statements.

Governmental funds – The focus of the School District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the School District's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the School District's net resources available for spending at the end of the fiscal year.

As the School District completed the year, its governmental funds reported a combined fund balance of $155.4 million, a decrease of close to $12.8 million, due primarily to the continued construction of capital projects that were funded from prior year proceeds. Unassigned fund balance totaling $38.3 million, is available for spending at the School District's discretion. There was $18.1 million restricted for debt service and $98.9 million restricted for capital projects. Note 11 of the notes to the basic financial statements provides detail on fund balances for the governmental funds.

The General Fund is the principal operating fund of the School District. The fund balance in the General Fund increased by more than $4.5 million, or by 13.5% over the prior year, due primarily to an increase in the millage rate and increases in assessed value beyond projected increases. These changes generated an additional $4.3 million in local ad valorem tax dollars in the general fund over the prior year. State revenue also increased in excess of $4.9 million, which represents a 3.8% increase in State funding. The Debt Service Fund balance showed an increase of $2.2 million from the prior year due to an increase in assessed value and the mill rate levied. The Capital Projects Funds showed a fund balance decrease of $19.6 million, due primarily to the continued construction of new and existing facilities previously mentioned.

Proprietary Fund – The Proprietary Fund statements provide the same type of information found in the government-wide statements, except the information is provided in more detail. This fund is adjusted for internal service balances in the government-wide statements. The School District maintains two proprietary fund types-enterprise fund, to account for all food service activities, and an internal service fund to account for self-funded workers compensation benefits.

Net position in the Enterprise Fund increased by $285k, due primarily to additional revenues from increased lunch reimbursements. Net assets in the Internal Service Fund increased by over $335k due primarily to the district transfer for associated workers compensation costs covered by the Internal Service Fund during the fiscal year.

20



BUDGETARY HIGHLIGHTS

The most significant budgeted fund is the district’s General Fund. The FY 2013-2014 general fund budget was built with a state base student cost of $2,101. The general fund budget included increases for operational costs for increases in utilities and employee benefits. The budget added 44 additional classroom teachers, as well as funding to continue district support of the National Board Certification program. Some other significant highlights of initiatives funded in the 2013-2014 budget included:

• A step increase of approximately 2% for employees• Increases to the Social Worker and Psychologist salary schedules• The addition of a Technology Integration Specialist and 4 IT Technician• The addition of a Data Analyst position• Funding two new magnet programs – Center for Knowledge North and the STEMS Institute at

Summit Parkway Middle• An additional nurse itinerant position and additional school based Administrative positions

The School District had no adjustments to the total general fund budget for FY 2013-2014. The following table shows the Budget to Actual variances for the General Fund as of June 30, 2014:

Original Final Variance toBudget Budget Actual Final Budget

REVENUES:Local Property Tax $ 80,967,485 $ 80,967,485 $ 83,775,208 $ 2,807,723 Other Local Revenue 2,626,281 2,626,281 2,797,418 171,137

Intergovernmental Sources 85,000 85,000 92,980 7,980 State Sources 134,200,268 134,200,268 135,775,297 1,575,029 Federal Sources 450,000 450,000 380,933 (69,067)

Total Revenues - All Sources 218,329,034 218,329,034 222,821,836 4,492,802

EXPENDITURES:Instruction 132,983,399 137,505,215 136,404,362 1,100,853 Support Services 89,611,657 84,847,473 83,570,252 1,277,221 Community Services 1,320,654 959,022 1,112,303 (153,281) Other Charges - 604,000 1,000,931 (396,931)

Total Expenditures $ 223,915,710 $ 223,915,710 $ 222,087,848 $ 1,827,862

The District’s general fund budget is prepared according to South Carolina law. The District did not amend the general fund budget for increases or decreases in total budget. The District made categorical budget amendments during the year to ensure that expenditures were charged to the proper account codes as required by the South Carolina Department of Education. Actual local revenue exceeded budget by close to $3 million as a result of actual taxes revenue being greater than budget as the District experienced a growth in assessed value and a small millage increase.

21



Actual state revenues exceed budget by approximately $1.5 million as actual state allocations were much greater than originally anticipated by the District when the budget was prepared. The final amended budgeted expenditures of the District had a positive variance from the actual expenditures of a little over $1.8 million. The District utilized substitutes or existing personnel to cover vacated positions which were a factor in actual expenditures being less than budget. The District also transferred $1.5 million from general fund to the internal service fund to fully fund costs associated with the district’s workers compensation program.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets - The School District’s investment in capital assets for governmental activities at June 30, 2014 exceeded $545.0 million net of accumulated depreciation. This investment in assets includes land, buildings, improvements other than buildings, construction in progress, and equipment. The total net decrease exceeded $2.5 million. The decrease in capital assets is due in large part to a decrease in the amount of projects ongoing during the fiscal year. See the relevant disclosures in the notes to the basic financial statements (Note 5) for more detailed information on capital asset activity.

The table below shows the School District’s capital assets, net of accumulated depreciation, as of June 30, 2014 and 2013:

Long-term Debt - At June 30, 2014, the School District had total general obligation debt outstanding of over $489.5 million. This is a decrease of $19.8 million over the last fiscal year. The School District had one bond sale during FY 2014.

The State of South Carolina’s constitution allows school districts to issue up to 8% of the assessed value in General Obligation Bonds, without voter approval. The School District issued $9,430,000 million in general obligation bonds that will be used for major maintenance on the School District’s existing facilities, along with technology expansion and/or replacement at our schools. The repayment of these bonds will take place over a five year period. These bonds mature in FY 2023.

The School District maintains an "Aa1" rating from Moody's; an AA- rating from Standard & Poor’s, and an AA- from Fitch Ratings for general obligation debt. State statutes currently limit the amount of general obligation debt a school district may issue to 8 percent of its total assessed valuation. As of June 30, 2014, the remaining debt margin available to the School District is just over $20 million. Other long-term obligations include unamortized bond premiums and accrued compensated absences.

2013 2014 2013 2014 2013 2014

Land 20,921,697$ 25,266,149$ $ $ 20,921,697$ 25,266,149$

Buildings and improvements 635,242,884 642,733,369 635,242,884 642,733,369

Equipment 23,538,411 24,726,258 4,335,694 4,335,694 27,874,105 29,061,952

Construction in progress 25,287,163 27,136,487 25,287,163 27,136,487

Total before accumulated depreciation 704,990,155 719,862,263 4,335,694 4,335,694 709,325,849 724,197,957

Less accumulated depreciation 157,368,036 174,807,831 1,806,784 2,101,456 159,174,820 176,909,287

Net capital assets 547,622,119$ 545,054,432$ 2,528,910$ 2,234,238$ 550,151,029$ 547,288,670$

Governmental Activities TotalBusiness-Type Activities

22



Additional information on the School District's long-term debt and other long-term liabilities can be found in Note 8 of the notes to the basic financial statements

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The School District, a suburban residential and shopping area located northeast of Columbia, the state capital and most populous city in South Carolina, is one of the fastest growing areas in the state. Within a 60 mile radius of Columbia, there is an estimated population of 1.4 million people. State and federal payrolls are major sources of employment and income and economic stability. Fort Jackson, the United States Army’s largest training installation is located within the school district. Private employers such as the state headquarters for Blue Cross/Blue Shield of South Carolina and The Village at Sandhills, one of the largest shopping complexes in the southeast, contribute to a diverse and stable economy.

Many factors were considered by the School District's administration during the process of developing the FY 2014-2015 budget. The School District's top two budget goals are to provide a quality education for all students through student engagement and to manage its growth of an estimated 400+ students annually. These matters were considered when adopting the budget for FY 2014-2015. The School District received a millage increase of 6.5 mills, which was less than the amount of the legally imposed cap as allowed under Act 388 equal of 11.9 mills. In addition, the State increased funding by increasing the base student cost to $2,119 which will result in an approximate 7.1% increase in State funding from the Education Finance Act

CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, investors and creditors with a general overview of the School District's finances and to demonstrate the School District's accountability for the resources it receives. If you have questions about this report or need additional information, contact the Division of Business Services, Richland School District Two, 6831 Brookfield Road, Columbia, South Carolina 29206-2205 (Telephone number 803-738-3293).

Governmental Activities-General Long-Term Debt-2014

General Obligation Bonds

Unamortized Bond Premiums

Accrued Compensated Absences

23

THIS PAGE IS INTENTIONALLY LEFT BLANK

24

BASIC FINANCIAL STATEMENTS

25

EXHIBIT 1

RICHLAND SCHOOL DISTRICT TWOSTATEMENT OF NET POSITION

JUNE 30, 2014

COMPONENTUNIT

Governmental Business-type CHARTER HIGHActivities Activities Totals SCHOOL

ASSETS

Cash and Investments $ 139,555,293 $ 4,070,155 $ 143,625,448 $Deposits with Richland County Treasurer 33,073,141 33,073,141 Taxes Receivable, Net of Allowances 1,142,298 1,142,298 Prepaid Expenses 115,625 115,625 Accrued Intergovernmental Revenue Receivable 845,773 845,773 Due From:

Federal Agencies 6,852,746 6,852,746 State Department of Education 2,071,540 2,071,540 Other Governmental Units 328,253 Internal Balances 536,692 (536,692)

Other Receivables 228,754 132,902 361,656 Receivables from Other Funds 2,382,705 2,382,705 Inventories 60,093 89,931 150,024 Capital assets:

Land 25,266,149 25,266,149 Construction in Progress 27,136,487 27,136,487 Buildings 433,681,166 433,681,166 Building Additions and Improvements 209,052,203 209,052,203 Furniture and Equipment 20,092,635 4,335,694 24,428,329 Vehicles 4,633,623 4,633,623 Less: Accumulated Depreciation (174,807,831) (2,101,456) (176,909,287)

TOTAL ASSETS 731,919,092 5,990,534 737,909,626 328,253

LIABILITIES

Accounts Payable 4,933,200 222,740 5,155,940 390 Retainage Payable 149,902 149,902 Payable to Charter High School 328,253 328,253 Due to State Department of Education 53,089 53,089 Accrued Salaries and Related Liabilities 17,267,420 17,267,420 Non-current Liabilities:

Due within One Year 40,221,738 7,877 40,229,615 Due in more than One Year 497,819,994 78,818 497,898,812

TOTAL LIABILITIES 560,773,596 309,435 561,083,031 390

DEFERRED INFLOWS OF RESOURCES

Unearned Revenues 7,012,696 111,075 7,123,771

TOTAL DEFERRED INFLOWS OF RESOURCES 7,012,696 111,075 7,123,771 -

NET POSITION

Net Investment in Capital Assets 113,769,149 2,234,238 116,003,387 Restricted For:

Debt Service 14,482,989 14,482,989 Special Projects 16,506 16,506

Unrestricted 35,864,156 3,335,786 39,199,942 327,863

TOTAL NET POSITION $ 164,132,800 $ 5,570,024 $ 169,702,824 $ 327,863

The notes to the financial statements are an integral part of this statement.See accompanying independent auditors' report.

PRIMARY GOVERNMENT

26

EXHIBIT 2RICHLAND SCHOOL DISTRICT TWO

STATEMENT OF ACTIVITIESFOR THE YEAR ENDED JUNE 30, 2014

FUNCTIONS/PROGRAMS Operating Charges for Grants and Governmental Business-Type Component

PRIMARY GOVERNMENT: Expenses Services Contributions Activities Activities Total UnitGovernmental Activities:

Instruction $ 171,250,774 $ 334,656 $ 104,887,839 $ (66,028,279) $ $ (66,028,279) $Supporting Services 116,519,318 162,922 22,416,855 (93,939,541) (93,939,541) Community Services 1,189,962 (1,189,962) (1,189,962) Intergovernmental 1,391,393 (1,391,393) (1,391,393) Interest and Other Charges 14,944,692 (14,944,692) (14,944,692)

Total Governmental Activities 305,296,139 497,578 127,304,694 (177,493,867) (177,493,867) -

Business-Type Activities:Food Services 10,911,686 3,107,800 7,788,741 (15,145) (15,145)

Total Business-Type Activities 10,911,686 3,107,800 7,788,741 (15,145) (15,145) - TOTAL - PRIMARY GOVERNMENT 316,207,825 3,605,378 135,093,435 (177,493,867) (15,145) (177,509,012) -

Component Units:Charter School 598,653 702,614 103,961

General Revenues:Property Taxes Levied for General Purposes 83,784,521 83,784,521 Property Taxes Levied for Debt Service 50,979,099 50,979,099 Miscellaneous 2,225,996 420,041 2,646,037 Unrestricted Investment Earnings 600,886 27,871 628,757 Federal and State aid not restricted for specific purpose 50,670,589 50,670,589

Transfers 147,187 (147,187) -

Total General Revenues and Transfers 188,408,278 300,725 188,709,003 -

CHANGE IN NET POSITION 10,914,411 285,580 11,199,991 103,961

NET POSITION - Beginning of Year 154,596,100 5,284,444 159,880,544 223,902 Cumulative Effect of GASB 65 Adoption (1,377,711) (1,377,711)

NET POSITION - End of Year $ 164,132,800 $ 5,570,024 $ 169,702,824 $ 327,863


CHANGE IN NET POSITIONPROGRAM REVENUESNET (EXPENSE) REVENUE AND

27

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28


RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITIONJUNE 30, 2014

TOTAL FUND BALANCES - GOVERNMENTAL FUNDS 155,459,878$

Amounts reported for the governmental activities in the Statement of Net Positionare different because of the following:

Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. The cost of the assets were $719,862,263 and the accumulated depreciation was $174,807,831. 545,054,432

The internal service fund is used to fund insurance and risk management of the School District.The assets and liabilities of the internal service fund are included with governmental activities. 796,790

Property Taxes Receivable will be collected this year, but are not available soon enough to pay forthe current period's expenditures, and therefore are deferred in the governmental funds.Unearned Property Tax at year end consists of:

General Fund 9,313$ Debt Service Fund 8,348 17,661

Accrued interest on bonds payable in governmental funds is not due and payable in the current period and is therefore, not reported as a liability in the funds. (4,475,619)

Unearned bond premiums are unearned in the statement of net position. The net premiums of $60,430,811have been amortized by $14,141,299 with a remaining unamortized net bond discount. (40,695,254)

Rebatable interest receivable on Build America Bonds in governmental funds is not a currentfinancial resource in the current period and is, therefore, not reported as an asset in the funds. 845,773

Long-term liabilities, including bonds payable, are not due or payable in the currentperiod and therefore are not reported as liabilities in the funds. Long-term liabilitiesat year-end consisted of:

General Obligation Bonds Payable 489,560,000$ Long-Term Note Payable 3,310,861 Accrued Compensated Absences (492,870,861)

TOTAL NET POSITION - GOVERNMENTAL FUNDS 164,132,800$


29

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30


RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES ANDCHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2014

TOTAL NET CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS $ (12,825,611)

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

Property tax revenues not considered current financial resources are unearned in the governmental funds but are not in the statement of activities. Unearned taxes receivable decreased by $17,661 over the year ended June 30, 2014. 17,661

Rebatable interest receivable on Build America Bonds in governmental funds is not a currentfinancial resource in the current period and is, therefore, not reported as an asset in the funds. (78,396)

Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities,the cost of those assets is allocated over their useful lives as depreciation expense. This is the amount by which capitalized outlays of $20,007,482 exceeded depreciation expense and noncapital expenditures of $17,439,795. (2,567,687)

Repayment of long-term liabilities, such as Bonds and Notes Payable and Capital Leases is an expenditure in thegovernmental funds, but merely reduces liabilities in the statement of net assets. 29,353,446

Amortization of bond premiums as income over the terms of the associated bonds. The amount recognized as incomefor the year ended June 30, 2014 is $7,560,381. 7,560,381

The internal service fund is used to fund insurance and risk management of the School District. The net changein net position of the internal service fund is reported with governmental activities. 335,348

Bonds proceeds and loans provide current financial resources to governmental funds; however, issuing debt increaseslong-term liabilities in the statement of net position. In the current period, proceeds were received from general obligation (11,396,124) bonds issued.

Interest on long-term debt in the statement of activities differs from the governmental funds because governmentalfunds recognize interest expense only when it is paid. In the statement of net assets, interest expense is recognized as it accrues. Accrued interest payable decreased for the year ended June 30, 2014 by $175,808. 175,808

The cost of compensated employee absences is recognized in the governmental funds only when actually paid in cash. However, in the statement of net assets, the expense is recorded when the employees earn the benefits. The totalliability for compensated absences decreased by $339,585 during this fiscal year. 339,585

TOTAL CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 10,914,411


31

EXHIBIT 7

BUSINESS-TYPE ACTIVITIES

GOVERNMENTAL ACTIVITIES

ASSETSENTERPRISE FUND- INTERNAL SERVICE

Current Assets FOOD SERVICES FUND

Cash and Investments $ 4,070,155 $ 387,461 Accounts Receivable 132,902 Prepaid Expense 115,625 Due from General Fund 1,603,384 Inventory 89,931

Total Current Assets 4,292,988 2,106,470

Noncurrent AssetsMachinery and Equipment 4,335,694 Less: Accumulated Depreciation (2,101,456)

Total Noncurrent Assets 2,234,238 -

TOTAL ASSETS 6,527,226 2,106,470

LIABILITIES

Current LiabilitiesAccounts Payable 222,740 31,499 Claims Payable 1,278,181 Due to General Fund 536,692 Accrued Compensated Absences 7,877

Total Current Liabilities 767,309 1,309,680

Long-Term LiabilitiesAccrued Compensated Absences 78,818

Total Long-Term Liabilities 78,818 -

TOTAL LIABILITIES 846,127 1,309,680

DEFERRED INFLOWS OF RESOURCES

Unearned Revenue 111,075 -

TOTAL DEFERRED INFLOWS OF RESOURCES 111,075 -

NET POSITION

Invested in Capital Assets 2,234,238 Unrestricted 3,335,786 796,790

TOTAL NET POSITION $ 5,570,024 $ 796,790


RICHLAND SCHOOL DISTRICT TWOSTATEMENT OF NET POSITION

PROPRIETARY FUNDSJUNE 30, 2014

32

EXHIBIT 8



ENTERPRISE FUND- INTERNAL SERVICEFOOD SERVICES FUND

OPERATING REVENUESMeal Sales $ 3,074,953 $Other Operating Revenue 32,847

Total Operating Revenues 3,107,800 -

OPERATING EXPENSESFood Costs 1,716 Salaries and Benefits 1,883,753 990,133 Depreciation 294,672 Purchased Services 8,006,704 Supplies 585,755 3,420 Equipment 48,920 Other 90,166 179,284

Total Operating Expenses 10,911,686 1,172,837

Operating Income (Loss) (7,803,886) (1,172,837)

NON-OPERATING REVENUE (EXPENSES)Commodities Received from USDA 600,888 USDA Reimbursements 7,332,784 Interest 27,871 8,185 Other 275,110

Total Non-Operating Revenues 8,236,653 8,185

Income (loss) Before Transfers 432,767 (1,164,652)

TRANSFERS IN (OUT)Transfer from General Fund 416,016 1,500,000 Transfer (to) General Fund (563,203)

Total Transfers (147,187) 1,500,000

CHANGE IN NET POSITION 285,580 335,348

TOTAL NET POSITION - Beginning of Year 5,284,444 461,442

TOTAL NET POSITION - End of Year $ 5,570,024 $ 796,790


RICHLAND SCHOOL DISTRICT TWOSTATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

PROPRIETARY FUNDSFOR THE YEAR ENDED JUNE 30, 2014

33

EXHIBIT 9



ENTERPRISE FUND- INTERNAL SERVICEFOOD SERVICES FUND

CASH FLOWS FROM OPERATING ACTIVITIESCash Received from Participants $ 4,099,824 $Cash Paid to Employees for Services (1,897,730) (990,133) Cash Paid to Suppliers of Goods and Services (8,431,290) (340,891)

Net Cash Provided (Used) by Operating Activities (6,229,196) (1,331,024)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESTransfers from General Fund 416,016 257,163 Transfers to General Fund (563,203) Other Federal/State Reimbursements 7,607,894

Net Cash Provided (Used) by Noncapital Financing Activities 7,460,707 257,163

CASH FLOWS FROM INVESTING ACTIVITIESInterest on Investments 27,871 8,185

Net Cash Provided by Investing Activities 27,871 8,185

Net Increase (Decrease) in Cash and Cash Equivalents 1,259,382 (1,065,676)

Cash and Cash Equivalents - Beginning of Year 2,810,773 1,453,137

Cash and Cash Equivalents - End of Year $ 4,070,155 $ 387,461

RECONCILIATION OF NET OPERATING INCOME (LOSS) TONET CASH PROVIDED (USED) BY OPERATING ACTIVITIES

Net Operating Income (Loss) (7,803,886) (1,172,837) Adjustments to Reconcile Net Operating Income (Loss)

to Net Cash Provided (Used) by Operating ActivitiesCommodities Received from USDA 600,888 Depreciation 294,672

Changes in Assets and Liabilities:Decrease (Increase) in Receivables and Due from Others 989,204 Decrease (Increase) in Prepaid Expenses (115,625) Decrease (Increase) in Inventories (57,740) Increase (Decrease) in Accounts Payable and Due to Others (241,177) (42,562) Increase (Decrease) in Accrued Salaries & Benefits (13,977) Increase (Decrease) in Deferred Inflows of Resources 2,820

Net Cash Provided (Used) by Operating Activities $ (6,229,196) $ (1,331,024)

NONCASH TRANSACTIONSNon-cash donation - USDA Commodities Received and Used $ 600,888


RICHLAND SCHOOL DISTRICT TWOSTATEMENT OF CASH FLOWS

PROPRIETARY FUNDSFOR THE YEAR ENDED JUNE 30, 2014

34


STATEMENT OF FIDUCIARY ASSETS AND LIABILITIESAGENCY FUNDJUNE 30, 2014

ASSETS

Cash and Investments $ 6,384,538 Accounts Receivable 23,767

TOTAL ASSETS 6,408,305

LIABILITIES

Accounts Payable 111,619 Payable to Other District Funds 2,382,704 Due to Pupil Activities 3,913,982

TOTAL LIABILITIES $ 6,408,305


35

RICHLAND SCHOOL DISTRICT TWO NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2014

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Richland County School District Two (the School District) is governed by a seven member elected Board of Trustees (the Board). The School District is located in suburban Columbia, SC, in the Northeast section of Richland County. The School District provides a broad range of general and specialized elementary and secondary educational services for students in pre-school through grade twelve, and derives its local revenue from the tax base in these areas. In addition, the School District receives funding from the State of South Carolina and the United States Federal Government and must comply with the related requirements of these funding source entities. The financial statements of the School District have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. A. Reporting Entity The School District’s financial statements include all funds over which the Board is considered to be financially accountable. The School District receives funding from local, state and federal governmental sources and must comply with the requirements of these funding source entities. Richland County School District Two is the lowest level of government which has financial accountability and control over all activities related to public school education in the School District. The School District is not included in any other governmental “reporting entity” as defined in GASB Statement No. 14, since members of the School Board of Trustees are elected by the public and since members have decision making authority, the power to designate management, the ability to significantly influence operations, and have primary accountability for fiscal matters. The School District invests funds and receives property tax revenues through its relationship with Richland County. The School District follows GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, which provides additional guidance to determine whether certain organizations (such as parent-teacher organizations, foundations and athletic booster clubs) for which the School District is not financially accountable should be reported as component units based on the nature and significance of their relationship with the primary government. The School District has determined that there are no affiliate entities that meet the requirements for inclusion as a discretely presented component unit under GASB No. 39. Discretely Presented Component Unit: The component unit column in the basic financial statements includes the financial data of the School District’s component unit, the Richland Two Charter High School (“the Charter School”). This unit is reported in a separate column to emphasize that it is legally separate from the School District. The Charter School operates under a charter granted by the School District and is considered, under South Carolina law, to be a public school and part of the School District. It is administered and governed by its annually elected governing body. The South Carolina State Department of Education ("SDE") regulations require that charter schools be discretely presented in the basic financial statements, but blended with the School District balances in the supplementary schedules. If this presentation format were followed, the amounts reported as revenues, expenditures and changes in fund balances for the General Fund and Special Revenue Funds in the supplementary schedules would not agree to the amounts reported as revenues, expenditures and changes in fund balances for the General Fund and Special Revenue Funds in the basic financial statements. The School District has not prepared the supplemental schedules in accordance with the SDE requirements as the School District

36


JUNE 30, 2014

does not believe that this presentation is consistent with accounting principles generally accepted in the United States of America ("GAAP"). The Charter School is fiscally dependent on the School District and because the nature and significance of the relationship between the Charter School and District, the exclusion of the Charter School would cause the School District’s financial statements to be incomplete. The Charter School financial statements are included in the School District’s basic financial statements. B. Measurement Focus, Basis of Accounting and Financial Statement Presentation The statements of the School District are presented as follows: Government-Wide Financial Statements - The Statement of Net Position and the Statement of Activities report information about the School District as a whole. Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the cash flows. These statements include the financial activities of the School District, except for the fiduciary funds. The effect of inter-fund activity has been eliminated from the statements in the consolidation process, with the exception of the inter-fund services provided and used. Governmental activities, which normally are supported by taxes and intergovernmental revenues, and other non-exchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The government-wide statement of activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the School District and for each function or program of the School District’s governmental activities. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include; 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Revenues, including taxes, which are not classified as program revenues are presented as general revenues of the School District with certain limited exceptions. The comparison of direct expenses with program revenues identifies the extent to which each business segment or governmental function is self-financing or draws from the general revenues of the School District. Fund Financial Statements - Fund financial statements report detailed information about the School District. The focus of governmental and enterprise fund financial statements is on major funds rather than reporting funds by type. The governmental fund financial statements are reported using the flow of current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

37


JUNE 30, 2014

Because the government–wide financial statements and the fund financial statements are prepared using a different measurement focus, the financial section of the statements includes a reconciliation with brief explanations to better identify the relationship between the government-wide and governmental fund statements. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. Fund financial statements report detailed information about the School District. The financial statements for governmental funds are the balance sheet, which generally includes only current assets and current liabilities, and a statement of revenues, expenditures and changes in fund balance, which reports on the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financial uses) of current financial resources. The focus of governmental and enterprise fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. Non-major funds are aggregated and presented in a single column. Fiduciary funds are reported by fund type. All proprietary fund types are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the statement of net position. The statement of changes in fund net position presents increases (i.e., revenues) and decreases (i.e., expenses) in net total assets. Cash Flow Statement - The statement of cash flows provides information about how the School District finances and meets cash flow needs of its proprietary activities. For purposes of the statement of cash flows, the proprietary fund considers all highly liquid investments with an original maturity of three months or less to be cash equivalents

FUND ACCOUNTING As outlined above, the accounts of the School District are organized on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The various funds of the School District are grouped into the categories governmental, proprietary and fiduciary. The School District has the following major funds and fund types: Governmental Fund Types Governmental funds focus on the sources, uses and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used. Current liabilities are assigned to the fund from which they will be paid. The difference between governmental fund assets and liabilities is separated as fund balance. The following are the School District’s major governmental funds:

38


JUNE 30, 2014

General Fund - The General Fund is a budgeted fund and serves as the primary operating fund of the School District. The School District uses this fund to account for expenditures principally for administration, instruction, pupil services, operations and maintenance of plant and related fixed charges. It accounts for all revenues and expenditures of the School District except those required to be accounted for in another fund. All general tax revenues and other receipts that are not allocated by law or contractual agreement to other funds are accounted for in the General Fund. General operating expenditures and the capital improvement costs that are not paid through other funds are paid from the General Fund.

Special Revenue Funds - Special Revenue Funds are used to account for specific revenue sources (other than debt service or major capital projects) that require separate accounting because of legal or regulatory provisions or administrative action. The School District has two Special Revenue Funds:

1. The Special Projects Fund, used to account for financial resources provided by federal,

state, local projects and grants. Budgets are prepared on a per project basis, generally with approval of the funding source. These budgets are not a part of the formal budget process approved by the board of trustees.

2. The Education Improvement Act (EIA) Fund, used to account for the revenue from the

South Carolina Education Improvement Act of 1984, which is legally required by the state to be accounted for as a specific revenue source. Budgets are prepared on a per project basis. These budgets are not part of the formal budget process approved by the board of trustees.

Capital Projects Fund – used to account for financial resources to be used for site acquisitions, construction of major capital facilities, equipment and renovation of all major capital facilities.

Debt Service Fund - used to account for annual payments of principal and interest on long-term general obligation debt and related costs.

Proprietary Fund Types Proprietary funds are accounted for based on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations.

The Enterprise Fund is used to account for operations that are financed and operated in a manner similar to private business enterprises – where the intent of the School District is that periodic determination of revenues earned, expenses incurred, and net income is necessary for management accountability. The Food Service Fund is the School District’s only enterprise fund and is also used to account for the United States Department of Agriculture’s (USDA) approved school breakfast and lunch programs. The principal operating revenues of the Enterprise Fund – Food Service include charges to

39


JUNE 30, 2014

students and teachers for breakfast, lunch and special sales. Operating expenses for the fund includes cost of sales, administrative expenses and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Internal Service Fund is used to account for the financing of goods and services provided by one department or agency to other departments or agencies of the School District. When services are rendered, charges are made to the users and revenue is accumulated in the Internal Services Fund to cover costs of operations. The Worker’s Compensation Fund is the School District’s only Internal Service Fund. This fund accounts for the insurance and risk management services of the School District and services provided are on a cost reimbursement basis. The assets and related liabilities for the Internal Service Fund are included in the governmental activities column on the government-wide Statement of Net position.

Fiduciary Fund Types Fiduciary funds are used to account for assets held by the government in a trustee capacity or as an agent on behalf of others, and include trust funds and agency funds. The Agency Fund is the only Fiduciary Fund type maintained by the School District. The Fund accounts for the receipt and disbursement of monies to and from student activity organizations, and/or on behalf of outside parties. These funds have no equity and do not include revenues and expenditures for general operation of the School District. The Agency Fund is custodial in nature and does not involve measurement of results of operation. BASIS OF ACCOUNTING Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide financial statements are prepared using the accrual basis of accounting. Governmental funds use the modified accrual basis of accounting. Propriety and fiduciary funds also use the accrual basis of accounting. Revenues resulting from exchange transactions, in which each party gives and receives essentially equal value, are recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the fiscal year in which the resources are measurable and become available. Available means that the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the School District, available means expected to be received within sixty days of the fiscal year-end. The School District follows GASB Statement No. 33, Accounting and Financial Reporting for Non-Exchange Transactions to account for non-exchange revenues. Non-exchange transactions, in which the School District receives value without directly giving equal value in return, include property taxes, grants, entitlements and donations. On an accrual basis, property tax revenues are recognized in the fiscal year for which they are appropriated by the County. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the fiscal year when use is first permitted, matching requirements, in which the School District must provide local resources to be used for a specified purpose, and expenditures requirements, in which the resources are provided to the School District on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Under the

40


JUNE 30, 2014

modified accrual basis, the following revenue sources are considered to be both measurable and available at fiscal year-end; property taxes, interest, tuition, grants, student fees and rentals. Deferred Revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Delinquent property taxes and property taxes for which there is an enforceable legal claim as of June 30, 2014, but which have not met the revenue recognition criteria, have been recorded as deferred revenue. Grants and entitlements received before revenue recognition requirements are met are also recorded as deferred revenue. On governmental fund financial statements, receivables that will not be collected within the available period have also been reported as deferred revenue. The measurement focus of governmental fund accounting is on decreases in net financial resources (expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in which the related fund liability is incurred, if measurable. Allocations of cost, such as depreciation, are not recognized in governmental funds. C. Assets, Liabilities and Equity Cash and Investments – South Carolina statutes authorize investments in certificates of deposits, savings accounts, repurchase agreements, the State Treasurer’s Local Government Investment Pool (invested in government guaranteed securities), general obligations of the State of South Carolina or any of its political units, obligations of the U.S. Government and government agencies unconditionally guaranteed by the U.S. Government. Investments are recorded at fair value. The Richland County Treasurer invests in authorized instruments on behalf of the School District. The Richland County Treasurer invests School District and other entity funds on a pooled basis with the Treasurer of the State of South Carolina. The State Treasurer invests in certificates of deposit, insured savings accounts, repurchase agreements, obligations of the United States Government and government agencies guaranteed by the United States Government. The School District considers all highly liquid investments (including restricted assets) with original maturities of three months or less when purchased and investments in the South Carolina Pooled Investment Fund (“Pool”) to be cash equivalents. Receivables and Payables - Transactions between funds that represent reimbursement arrangements outstanding at the end of the year are referred to as “due from other funds” or “due to other funds” on the fund financial statements. These amounts are eliminated in the governmental and business-type activities columns of the statement of net position, except for the net residual amounts due between governmental and business-type activities, which are presented as “internal balances”. All trade and property tax receivables are shown net of an allowance for uncollectible amounts. Inventories - Under the system of accounting for inventory, materials and supplies are carried in an inventory account at cost on the first-in, first-out method of accounting and are subsequently charged to expense when used. Inventories consist of purchased food, supplies, commodities received from the United States Department of Agriculture as of June 30, but not consumed. The value of unused commodities on hand at year-end is recorded at market value as provided by the United States Department of Agriculture.

41


JUNE 30, 2014

Prepaid Items - Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements using the consumption method. A current asset for the prepaid amount is recorded at the time of the purchase and an expenditure/expense is reported in the year consumed. Capital Assets - General capital assets are those assets not specifically related to activities reported in the enterprise fund. These assets generally result from expenditures in the governmental funds. These assets are reported in the governmental activities column of the government-wide statement of net position but are not reported in the fund financial statements. Capital assets utilized by the enterprise fund are reported in both the business-type activities column of the government-wide statement of net position and in the respective fund financial statements. All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and retirements during the year. Donated capital assets are recorded at their fair market values as of the date received. The district maintains a capitalization threshold of $5,000. Management may elect to include certain homogeneous asset categories with individual assets less than $5,000 as composite groups for financial reporting purposes. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extent the life of the asset’s life are not capitalized. For purposes of reporting state and federal funds, small equipment items that may not be capitalized are still categorized as capital outlays in the supporting schedules. The School District does not maintain any infrastructure. Improvements to existing capital assets are capitalized; however, the cost of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are expensed. In the enterprise fund, assets acquired or constructed by grants and share revenues externally restricted for capital acquisitions and construction are reported as revenue in the period received in accordance with Governmental Accounting Standards Board Statement No. 33. All reported capital assets, except land and construction in progress, are depreciated. Construction projects begin being depreciated once they are complete, at which time the complete costs of the project are transferred to the appropriate capital asset category. 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 Business-Type Activities Activities

Description Estimated Lives Estimated Lives Buildings and Improvements 20-39 years N/A Furniture and Equipment 5 years 12 years Vehicles 5 years N/A

Compensated Absences – Compensated absences are payments to employees for accumulated vacation and sick leave. Vacation leave is earned by employees up to a maximum of ten days. The School District’s policy at fiscal year-end is to allow twelve-month employees to carry over five days, which are lost if not used by the following December 31. When an employee with over fifteen years of service retires or otherwise terminates the School District pays out all unused accrued annual and sick leave days at the current substitute rate of pay. Employees can accrue up to fifty-seven sick leave days.

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JUNE 30, 2014

All vacation pay is accrued when incurred in the government-wide financial statements. Liabilities for compensated absences are reported as fund liabilities when amounts are due and payable rather than to the extent that they will be paid with current, expendable and available financial resources. In the proprietary funds, compensated absences are recorded as an expense and liability of the fund as the benefits accrue to employees. Accrued Liabilities and Long-term Obligations - All payables, accrued liabilities and long-term obligations are reported on the governmental fund financial statements regardless of whether they will be liquidated with current resources. However, claims and judgments, the non-current portion of capital leases, contractually required pension contributions and special termination benefits, and compensated absences that will be paid from governmental funds are reported as a liability in the fund financial statements only to the extent that they will be paid with current expendable, available, financial resources. In general, payments made within sixty days after year-end are considered to have been made with current available financial resources. Bonds and other long-term obligations that will be paid from governmental funds are not recognized as a liability in the fund financial statements until due.

For governmental funds, bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as other financing sources net of the applicable premium or discount. Issuance costs, even if withheld from actual net proceeds received, are reported as debt service expenditures. Fund Balances, Equity and Net Position – The School District reports fund balance in accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This Statement defines five classifications of governmental fund balances: non-spendable, restricted, committed, assigned and unassigned. Where applicable, these classifications are presented on the face of the governmental fund balance sheet. The School District’s highest level of decision-making authority is the Board of Trustees.

The School District classifies fund balances as follows:

Non-spendable – This includes amounts that inherently cannot be spent either because it is not in spendable form (i.e. prepaid items, inventories, etc.) or because of legal or contractual requirements (i.e. principal amount of resources that are required to remain intact.) Restricted – This includes amounts that have constraints placed on the use of resources externally imposed by creditors, grantors, or contributors. Committed – This includes amounts that have constraints for specific purposes by the School District itself, using its highest level of decision-making authority, which as noted above is the Board of Trustees. Constraints must remain in place unless removed in the same manner as imposed and must take place no later than the close of the fiscal year. Assigned – This includes amounts that the School District intends to use for specific purposes that are neither considered restricted nor committed and these assignments are made before the report issuance date. The intent to assign these balances can be expressed by the Board of Trustees or by an official or body to which the Board of Trustees delegates the authority. Unassigned – This includes amounts that do not qualify to be accounted for or reported in any of the other fund balance categories. These amounts are available for any purpose and the General Fund should be the only fund that reports a positive unassigned fund balance.

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The School District applies restricted resources when expenditures are incurred for the purposes for which both restricted and unrestricted Net Positions are available. The School District applies assigned, then unassigned fund balance. Committed resources can only be applied if the Board of Trustees takes formal action to release resources for incurring expenditures. Net Position Net position represents assets plus deferred outflows of resources less liabilities less deferred inflows of resources. Net investment in capital assets consists of capital assets reduced by accumulated depreciation and the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Outstanding debt, that has not been spent, is included in the same net position component as the unspent proceeds. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. The School District applies restricted resources when an expense is incurred for the purposes for which both restricted and unrestricted net position is available. Inter-fund Activity – Transfers between governmental and business-type activities on the government-wide statements are reported in the same manner as general revenues. Transfers between governmental funds and enterprise funds and enterprise balances are eliminated. Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as inter-fund transfers. Inter-fund transfers are reported as other financial sources/uses in governmental funds and other non-operating revenues/expenses in proprietary funds. Repayments from funds responsible for particular expenditures/expense to the funds that initially paid for them are not presented on the financial statements. Operating Revenue and Expenses – Operating revenues are those revenues that are generated directly from the primary activity of the proprietary funds. For the School District, those revenues consist of sales of breakfasts and lunches to students, teachers and visitors. Use of Accounting Estimates - The preparation of financial statements in accordance with accounting principles generally accepted in the United State of America requires the School District’s management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Budgetary Accounting The Board of Trustees adopts a legal annual appropriated budget for the general fund revenues and expenditures on the modified accrual basis of accounting which is consistent with accounting principles generally accepted in the United States of America each fiscal year. The budget is prepared, controlled, and amended at the revenue and expenditure object level. The Superintendent and/or Chief Financial Officer may authorize line item transfers in the general fund budget that are subject to final review by the Board. Revisions to the budget were made throughout the year at the legal level of budgetary control.

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During the fiscal year, no additional appropriations to the general fund budget were adopted. Unexpended appropriations lapse at fiscal year-end. Expenditures may not legally exceed budgeted appropriations at the fund level unless, in a supplementary action , the Board approves an increase or decrease to the fund or the School District’s “per pupil” state allotment changes whereby management can increase or decrease expenditures to match the change in state appropriations. Supplemental budget appropriations are made by the Board for expenditures exceeding total appropriations within the legal level of control.

The following procedures are followed in establishing the General Fund budgetary data reflected in the financial statements:

1. The initial step in the budget development process is the adoption of budget priorities by theBoard of Trustees.

2. The Financial Services Office develops revenue projections based on enrollment projections anddata received from the State Department of Education.

3. Input is obtained from District stakeholders and compiled by Administration.4. The Superintendent submits a budget to the Board for approval.5. The Board recommends a budget to County Council around April.6. The County Council has three readings on the budget and a public hearing.7. After approval by County Council, the Board approves a final budget.

Special Revenue Fund budgets are developed and controlled in conformance with the specific requirements of each grant or funding agency. These budgets are not legally adopted by the School Board. Both General and Special Revenue Fund budgets are used as a management control device during the year.

The Administration has discretionary authority to make transfers between appropriation accounts. The budget amounts in the financial statements are as amended by Administration. No supplemental appropriations were necessary during the year.

Encumbrances

The appropriations of the general fund of the School District lapse at June 30 each year and the outstanding purchase orders, contracts, and other commitments must be renewed. Therefore, there are no restrictions or assignments of the fund balances at year-end for encumbrances.

Issued and Adopted Accounting Pronouncements

In March 2012, the GASB issued Statement No. 65, “Items Previously Reported as Assets and Liabilities”. This Statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. This Statement also provides other financial reporting guidance related to the impact of financial statement elements deferred outflows of resources and deferred inflows of resources, such as changes in the determination of the major fund calculations and limiting the use of the term deferred in financial statement presentations. This statement is effective for periods beginning after December 15, 2012. All statements and schedules have been changed to show deferred outflows and deferred inflows where applicable in this fiscal year. The implementation of

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this standard resulted in a reduction of $1,377,711 in net position reported as a “Cumulative Effect of GASB 65 Adoption”. This reduction was due to the write-off of unamortized issuance costs. The GASB issued Statement 66, “Technical Corrections – 2012” in March 2012. The objective of this Statement is to improve accounting and financial reporting for a governmental financial reporting entity by resolving conflicting guidance that resulted from the issuance of two pronouncements, GASB Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions”, and GASB Statement No. 62 “Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 2989 FASB and AICPA Pronouncements.” This statement is effective for periods beginning after December 15, 2012. The adoption of GASB Statement No. 66 does not have any impact on the District’s financial statements as it is implemented for this fiscal year. 2. CASH AND INVESTMENTS At June 30, 2014 the carrying amount of the School District’s deposits and investments was $150,009,986 and the bank balance was $154,928,281. Custodial Credit Risk for Deposits: Custodial credit risk for deposits is the risk that, in the event of a bank failure, the School District’s deposits might not be recovered. The School District does not have a deposit policy for custodial credit risk but follows the investment policy statues of the State of South Carolina. As of June 30, 2014, none of the School District’s bank balances of $33,655,980, which had a carrying value of $28,737,685, were exposed to custodial credit risk. As of June 30, 2014, the School District had the following investments: Investment Type Average Maturities Credit Rating Fair Value First Citizens Investment Portfolio Various Unrated $ 5,000,000 SC Local Government Investment Pool Various Unrated 110,139,587 US Bank – Morgan Stanley GIC 9/1/2027 Unrated 6,132,714

Total Investments $ 121,272,301 Interest Rate Risk: The School District’s Interest Rate Risk policy states that to address interest rate risk (i.e., fair value losses arising from increasing interest rates), the district will not invest in maturities exceeding 24 months. Custodial Credit Risk for Investments: In the case of deposits, custodial credit risk is the risk that in the event of a bank failure, the School District’s deposits may not be returned to it. Custodial credit risk for investments is the risk that, in the event of a failure, the government will not be able to recover the value of its investments or collateral securities that are in possession of an outside party. The School District’s investment policy operates in conformance with federal, state and other legal requirements, as outlined in the Code of Laws, State of South Carolina, Section 59-69-215. To address the risk that the School District’s deposits will not be returned, the School District will only use instruments that are collateralized by third parties or insured by the Federal Deposit Insurance Corporation. As of June 30, 2014, all District deposits were collateralized with securities held by the pledging financial institution’s trust department or its agent, and in the School District’s name or insured by the Federal Deposit Insurance Corporation. Management believes there is no significant custodial credit risk associated with

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these deposits. Information was not available regarding the custodial credit risk of deposits with the Richland County Treasurer of $33,073,141.

South Carolina statutes authorize investments in certificates of deposits, savings accounts, repurchase agreements, the State Treasurer’s Local Government Investment Pool, obligations of the U.S. Government and government agencies unconditionally guaranteed by the U.S. Government. The School District has no policy that would further restrict these investment choices.

The SC Local Government Investment Pools is not rated. Further information may be obtained from the Investment Pool by writing to the Office of the State Treasurer, Local Government Investment Pool, Post Office Box 11778, Columbia, South Carolina, 29211.

Concentration of Credit Risk for Investments: The School District places no limit on the amount it may invest in any one issuer. Investments issued or explicitly guaranteed by the U.S. Government and investments in mutual funds and external investment pools and other pooled investments are exempt from concentration of credit risk disclosures. The following table reconciles the carrying amount of deposits and investments to the amounts listed in the financial statements for all fund types:

Basic Financial Statements Notes to Financials

Cash and Investments: Carrying Amount of Governmental Funds $139,167,832 Deposits: $ 28,737,685

Internal Service Fund 387,461 Enterprise Fund 4,070,155 Fair Value of

Investments: 121,272,301

$143,625,448 $ 150,009,986

3. PROPERTY TAXES AND OTHER RECEIVABLES

Property taxes are levied, collected and distributed by Richland County (the County) on real and personal properties owned on the preceding December 31 of each fiscal year ended June 30. Liens are attached to the property at the time the taxes are levied, which usually occurs in November of each year. These taxes are due without penalty through January 15. Penalties are added to taxes when paid after January 15 depending on the period of time the tax is delinquent. Property taxes are levied and billed on an assessed value of over $549 million at tax rates of 291.5 mills for the general fund and 94.0 mills for the debt service fund.

Current year real and personal property taxes become delinquent on April 1. The levy date for motor vehicle taxes is the first day of the month in which the motor vehicle license expires. These taxes are due by the last day of the same month. Total tax collections, which include delinquent tax collections and penalties, equaled approximately 96.19% of the current tax levy for the year ended June 30, 2014.

South Carolina Code Section 12-37-251(A) provides a property tax exemption for property classified pursuant to Section 12-43-220(C) (homestead exemption) from property taxes levied for other than bonded indebtedness and payments pursuant to lease purchase agreements for capital construction. The exemption applies against millage imposed for school operations and the amount of fair market value

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of the homestead that is exempt from such millage must be set by the Department of Revenue and Taxation based on the amount available in the State Property Tax Relief Fund.

Taxes receivable in the government funds, including general fund and debt service fund, are $1,142,298 net of allowances for uncollectible at June 30, 2014.

Governmental funds report unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned.

At June 30, 2014, the various components of unearned revenue reported in the governmental funds were as follows:

SpecialRevenue- Special

General Special Revenue- Debt ServiceFund Projects Fund EIA Fund Fund Total

Unearned Property Tax $ 256,899 $ $ $ 82,842 $ 339,741 Unearned Revenue 1,719,530 4,971,086 6,690,616

Total $ 256,899 $ 1,719,530 $ 4,971,086 $ 82,842 $ 7,030,357

4. DUE FROM STATE DEPARTMENT OF EDUCATION AND FEDERAL AGENCIES

The Due from State Department of Education and Federal Agencies represents amounts due for state and federal revenues that had been earned as of June 30, 2014, but had not been received as of June 30, 2014.

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5. CAPITAL ASSETS

A summary of changes in capital assets for the School District is as follows:

Governmental ActivitiesBalance as of July 1, 2013 Additions Disposals/

TransfersBalance as of June 30, 2014

Non-depreciable Assets:Land $ 20,921,697 $ 4,344,452 $ $ 25,266,149 Construction in Progress 25,287,163 8,447,039 (6,597,715) 27,136,487

Total Non-depreciable 46,208,860 12,791,491 (6,597,715) 52,402,636

Depreciable Assets:Buildings and Improvements 635,242,884 892,770 6,597,715 642,733,369 Furniture & Equipment 23,538,411 1,187,847 24,726,258

Total Depreciable Assets 658,781,295 2,080,617 6,597,715 667,459,627

Total All Assets 704,990,155 14,872,108 - 719,862,263

Less: Accumulated Depreciation Buildings (138,520,850) (15,876,168) (154,397,018) Furniture & Equipment (18,847,186) (1,563,627) (20,410,813)

Total Accumulated Depreciation (157,368,036) (17,439,795) - (174,807,831)

Governmental Activities Capital Assets, Net $ 547,622,119 $ (2,567,687) $ - $ 545,054,432

Business-Type ActvitiesBalance as of July 1, 2013 Additions Disposals Balance as of

June 30, 2014

Equipment $ 4,335,694 $ $ $ 4,335,694

Less: Accumulated Depreciation (1,806,784) (294,672) (2,101,456)

Business-type Activities Capital Assets, Net $ 2,528,910 $ (294,672) $ - $ 2,234,238

Depreciation expense was charged to functions/programs of the primary government as follows:

Governmental Activities: Instruction $ 10,463,877 Supporting Services 6,975,918 Total Depreciation Expense – governmental activities 17,439,795

Business-type Activities: Food Service 294,672

Total Depreciation Expense – Business type activities $ 294,672

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6. INTER-FUND RECEIVABLES AND PAYABLES

Inter-fund balances at June 30, 2014 consisted of the following individual fund receivables and payables:

Fund Receivables Payables General Fund: Due from Special Revenue – Special Projects $ 5,934,211 $ Due to Special Revenue - EIA 3,316,383 Due to Debt Service 232,766 Due to Capital Projects Fund 5,507,877 Due to Enterprise Fund – Food Service 536,692 Due to Enterprise Fund – Internal Service Fund 1,603,384

Total 6,470,903 10,660,410

Special Revenue – Special Projects Due to General Fund 5,934,211

Special Revenue – EIA Due from General Fund 3,316,383

Debt Service Due from General Fund 232,766

Capital Projects Due from General Fund 5,507,877

Enterprise Fund – Food Service Due to General Fund 536,692

Enterprise Fund – Internal Service Fund Due from General Fund 1,603,384

Totals $ 17,131,313 $ 17,131,313

All cash activities, excluding Food Service, are recorded in the General Fund, and as a result, receivables and payables exist at year end that are either due to or due from the General Fund to/from other funds. Other inter-fund balances include Special Revenue payments not received from the State Department of Education until after the fiscal year end, fringe amounts paid by the General Fund for Food Service, indirect cost transfers adjustments made at year end and adjustments made at year end for Taxes receivable for Debt Service, and building project costs.

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7. TRANSFERS IN AND OUT

Transfers between the various funds of the School District are as follows:

Fund Transfers In Transfers Out

General Fund: Special Revenue – Special Projects $ $ 238,800 Special Revenue – Special Projects Indirect Cost 457,536 Special Revenue – EIA 5,178,693 Special Revenue – EIA Indirect Cost 1,623 Enterprise – Internal Service Fund 1,500,000 Enterprise – Food Service Fund 416,016 Enterprise – Food Service Fund Indirect Cost 563,203

Total 6,201,055 2,154,816

Special Revenue – EIA General Fund General Fund – Indirect Cost

5,178,693 1,623

Special Revenue – Special Projects General Fund General Fund – Indirect Cost

238,800 457,536

Enterprise – Internal Service Fund General Fund 1,500,000

Enterprise – Food Service Fund General Fund

General Fund – Indirect Cost 416,016

563,203

Total All Funds $ 8,355,871 $ 8,355,871

During the 2013-2014 fiscal year transfers were made from Special Revenue-Special Project Funds to the general fund for indirect cost and transfers from the General Fund into Special Revenue – Special Projects reflect amounts allocated as discretionary funds for student activities and athletic programs. Annual transfers are done from the Special Revenue – EIA fund into the General fund for State revenues provided for teacher salary increases and employer fringe contributions. Amounts were transferred from the Food Service fund for indirect costs paid to the General fund and a transfer was made from the General Fund into the Food Service Fund to allocate state fringe benefits reimbursement funds applicable to the Food Service Program.

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8. LONG TERM OBLIGATIONS

The following summarizes the changes in long-term debt obligations for the year ended June 30, 2014:

Principal Principal AmountsOutstanding Outstanding Due in

Governmental Activities July 1, 2013 Additions Reductions June 30, 2014 One Year

General Obligation Bonds:February 1, 2006 $ 15,000,000 (5,000,000) 10,000,000 $ 5,000,000 June 1, 2007 15,000,000 (4,000,000) 11,000,000 4,000,000 February 14, 2008 26,000,000 (3,000,000) 23,000,000 3,000,000 February 18, 2009 69,000,000 (1,000,000) 68,000,000 3,000,000 June 11, 2009 14,705,000 (1,595,000) 13,110,000 1,570,000 May 25, 2010 (A) 15,050,000 (1,075,000) 13,975,000 1,075,000 September 8, 2010 83,235,000 (7,130,000) 76,105,000 8,100,000 September 8, 2010 42,620,000 42,620,000 November 9, 2010 56,570,000 (1,000,000) 55,570,000 1,000,000 June 8, 2011 8,960,000 (3,000,000) 5,960,000 3,000,000 October 5, 2011 60,000,000 (500,000) 59,500,000 500,000 May 15, 2012 9,000,000 (2,000,000) 7,000,000 2,000,000 December 5, 2012 28,205,000 28,205,000 April 24, 2013 10,950,000 10,950,000 1,500,000 April 25, 2013 55,140,000 (5,000) 55,135,000 5,000 May 21, 2014 9,430,000 9,430,000

Total General Obligation Bonds 509,435,000 9,430,000 (29,305,000) 489,560,000 33,750,000

Long-Term Notes Payable 48,446 (48,446) - Unamortized Bond Premiums 46,289,512 1,966,124 (7,560,381) 40,695,255 6,170,921 Accrued Compensated Absences 3,650,445 41,804 (381,389) 3,310,860 300,817

Total $ 559,423,403 11,437,928 (37,295,216) 533,566,115 $ 40,221,738

Business-Type Activities:

Accrued Compensated Absences $ 100,672 37,954 (51,931) 86,695 $ 7,877

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General Obligations

General obligations primarily consist of obligations related to general obligation bonds as of June 30, 2014. The following table outlines the debt outstanding at June 30, 2014:

Date of Interest Payment Original Outstanding atIssue Issue Rates Dates Maturity Issue June 30, 2014

2006A February 1, 2006 4.0%-5.0% Oct./Apr. 2020 55,000,000$ 10,000,000$ 2007B June 1, 2007 4.00%-5.00% Nov./May 2021 35,000,000 11,000,000 2008A February 14, 2008 3.13%-5.00% Feb./Aug. 2023 30,525,000 23,000,000 2009A February 14, 2008 5.00% Nov./May 2023 70,000,000 68,000,000 2009C June 11, 2009 3.00%-5.00% Sept./Mar. 2021 18,500,000 13,110,000 2010A/QSCB May 25, 2010 .75%-5.20% May/Nov 2027 18,235,000 13,975,000 2010C* September 8, 2010 5.00% May/Nov 2024 83,260,000 76,105,000 2010D/QSCB September 8, 2010 1.00%-5.00% Mar/Sept 2028 42,625,000 42,620,000 2010E/QSCB November 9, 2010 .50%-5.25% May/Nov 2028 60,000,000 55,570,000 2011 (8%) June 8, 2011 2.00% May/Nov 2016 9,260,000 5,960,000 2011B October 5, 2011 3%-5% May/Nov 2031 60,000,000 59,500,000 2012A May 15, 2012 2%-4% May/Nov 2017 10,000,000 7,000,000 2012B (Refunding) December 5, 2012 3%-5% Oct./Apr. 2021 28,215,000 28,205,000 2013A April 24, 2013 4.0%-5.0% Nov./May 2018 10,950,000 10,950,000 2013B April 25, 2013 2.9%-5% Nov./May 2033 55,140,000 55,135,000 2014A May 21, 2014 5.00% Nov./May 2023 9,430,000 9,430,000

596,140,000$ 489,560,000$

General obligations at June 30, 2014 consist of primarily general obligation bonds payable. Of these, the Series 2010A, 2010D and 2010E were issued as Taxable Qualified School Construction Bonds under the provisions of the State of South Carolina Federal Education Tax-Credit Bond Implementation Act of 2009. A refundable tax credit must be applied for each time an interest payment is due for these bonds. These issues provided federal subsidy for future interest payments due each year for the life of the bonds. However, due to sequestration by the United States Government, the School District is projecting a 7-9% reduction to that subsidy for subsequent fiscal years.

The annual requirements to amortize the General Obligation Bonds outstanding at June 30, 2014, including interest payments of $165,076,940 are as follows:

Fiscal Year EndingJune 30 Principal Interest Total

2015 $ 33,750,000 $ 22,033,924 $ 55,783,9242016 36,400,000 20,701,489 57,101,4892017 41,990,000 19,191,789 61,181,7892018 40,995,000 17,320,314 58,315,3142019 38,465,000 15,504,026 53,969,026

2020-2024 170,190,000 49,565,760 219,755,7602025-2029 103,220,000 18,846,638 122,066,6382030-2034 24,550,000 1,913,000 26,463,000

Total $ 489,560,000 $ 165,076,940 $ 654,636,940

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The School District has satisfied all sinking fund requirements. There is an annual tax millage, currently 94.0 mills, to repay this General Obligation debt. Details on the Bonds Payable are presented as schedules.

Compensated Absences

The School District estimates that the compensated absences amount to be considered as the current portion due within one year to be $300,817 for Governmental Funds and $7,877 for Enterprise Funds.

9. RETIREMENT BENEFITS

Richland County School District Two contributes to the South Carolina Retirement System. The South Carolina Retirement System is a cost-sharing multi-employer defined pension plan administered by the South Carolina Public Employee Benefit Authority ("PEBA"). The South Carolina Retirement System offers retirement and disability benefits, cost of living adjustments on an ad-hoc basis, life insurance benefits and survivor benefits. The Plan's provisions are established under Title 9 of the SC Code of Laws.

A Comprehensive Annual Financial Report containing financial statements and required supplementary information for the South Carolina Retirement System is issued and publicly available at the website www.retirement.sc.gov or a copy may be obtained by writing the South Carolina Retirement System, PO Box 11960, Columbia, SC 29211-1960.

Both employees and employers are required to contribute to the Plan under authority of Title 9 of the S.C. Code of Laws. For the 2013-2014 fiscal year, plan members are required to contribute 7.5% of their annual compensation and the School District is required to contribute at an actuarially determined rate. The 2013-2014 rate is 15.52% of the total member’s annual compensation; included is the cost to provide group life insurance benefits for the plan participants at the rate of .15% and the cost to provide retiree health and dental insurance benefits for the plan participants at the rate of 4.92%.

The School District’s contributions to the Plan for the years ending June 30, 2014, 2013, and 2012 were $25,651,838, $23,847,100, and $20,631,842, respectively. The School District’s contributions are at the actuarially required contribution rates.

Post-Employment Benefits

By Federal law (Public Law 99-272, Title X) the School District is required to offer a continuation of health coverage at group rates to employees and their dependents whose coverage would otherwise end. Depending on the circumstances of the employee’s coverage loss, the employee or dependents can extend the health care plan benefits for 18 months to three years. The plan costs are paid by the employee or dependents based on 100% COBRA premium rates. Retired employees are eligible for health insurance coverage under a state plan whereby the retiree continues to be responsible for their portion of insurance premiums. Pursuant to the state plan, the School District pays 4.92% of payroll covered by the S.C. Retirement System to fund retiree health insurance. The School District paid approximately $8.2 million, on covered payroll for the year ended June 30, 2014. The School District has no other financial or administrative responsibility for retiree health care costs.

10. RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During the 2013-2014 fiscal year, the School District obtained its general liability and property insurance through Surry of NC.

The School District has operated a self-insured Workers Compensation program since July 1, 2008. Activity related to the Workers Compensation program is reported in an Internal Service Fund. The School District has also hired a third party administrator to handle claim processing related to the

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http://www.retirement.sc.gov/


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program. The School District has purchased excess workers compensation insurance that covers losses in aggregate that exceed $3.3 million annually and $450k per occurrence. At June 30, 2014, the School District has recognized a liability for claims payable in the Internal Service fund for $1,278,181 related to estimated future claim payments.

The School District continues to carry commercial insurance for all other risks of loss. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. There were no significant reductions in coverage during the year ended June 30, 2014.

11. FUND BALANCE CLASSIFICATIONS

The following table summarizes the amounts classified for specific fund balance classifications other than unassigned fund balance, which is only reportable in the General Fund:

Non-spendable Fund Balance: General Fund - Inventories $ 60,093

Restricted Fund Balance: Restricted for Special Revenue 16,506 Restricted for Debt Service 18,104,485 Restricted for Capital Projects 98,969,971

Unassigned Fund Balance 38,308,823 Total Governmental Fund Balance $ 155,459,878

12. CONTINGENT LIABILITIES

Litigation

Various claims and lawsuits are pending against the School District. Although the outcomes of these lawsuits are not presently determinable, it is the opinion of the School District’s counsel that resolution of these matters will not have a material adverse effect on the financial condition of the School District

Grants

The School District participates in a number of federally assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. The amount of program expenditures which may be disallowed by the granting agencies cannot be determined at this time although the School District expects such amounts, if any, to be immaterial.

13. COMMITMENTS

The School District had capital projects still in process as of June 30, 2014, primarily related to Elementary #19, Richland Two Institute of Innovation and other smaller projects. The School District has entered into contracts for these projects totaling over $26 million, of which less than $1 million had not been expended as of June 30, 2014.

The School District entered into additional contracts subsequent to June 30, 2014 related to the construction of Elementary #20 and the Richland Two Institute of Innovation totaling over $64.5 million.

The School District has entered into operating leases, generally for office machines, which are cancelable within one year. Payments under such leases typically do not exceed $550k annually. The School District anticipates annual payments to approximate this amount on an on-going basis.

14. SUBSEQUENT EVENTS

As required by the Subsequent Events Topic of the FASB Accounting Standards Codification, the School District has considered subsequent events through the date of the auditors’ report, in preparing the financial statements and notes hereto.

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REQUIRED SUPPLEMENTARY INFORMATION

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SCHEDULE A

GENERAL FUND

The general fund, also referred to as the "operating fund," is the basicbudgetary fund of the School District. It is used to record all operatingrevenues and expenditures for the educational and support programs ofthe School District and for limited capital outlays. The appropriations andthe anticipated revenue sources originate in the School District's operatingbudget. Any unassigned fund balance may be appropriated to supportoperating expenditures in subsequent years.

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Schedule A-1RICHLAND COUNTY SCHOOL DISTRICT TWO

BUDGETARY COMPARISON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE


Original Final Variance toBudget Budget Actual Final Budget

REVENUES:Local Property Tax $ 80,967,485 $ 80,967,485 $ 83,775,208 $ 2,807,723 Other Local Revenue 2,626,281 2,626,281 2,797,418 171,137

Total Revenue from Local Sources 83,593,766 83,593,766 86,572,626 2,978,860

Intergovernmental Sources 85,000 85,000 92,980 7,980 State Sources 134,200,268 134,200,268 135,775,297 1,575,029 Federal Sources 450,000 450,000 380,933 (69,067)

Total Revenues - All Sources 218,329,034 218,329,034 222,821,836 4,492,802

EXPENDITURES:Current:

Instruction 132,983,399 137,505,215 136,404,362 1,100,853 Support Services 89,611,657 84,847,473 83,570,252 1,277,221 Community Services 1,320,654 959,022 1,112,303 (153,281) Other Charges 604,000 1,000,931 (396,931)

Total Expenditures 223,915,710 223,915,710 222,087,848 1,827,862

Excess Revenues Over (Under) Expenditures (5,586,676) (5,586,676) 733,988 6,320,664

OTHER FINANCING SOURCES (USES):

Sale of Capital Assets 45,849 45,849 Transfers In 5,586,676 5,586,676 6,201,055 614,379 Transfers Out (2,396,241) (2,396,241)

Total Other Financing Sources (Uses) 5,586,676 5,586,676 3,850,663 (1,736,013)

Excess / (Deficiency) of Revenues and Other FinancingSources Over Expenditures and Other Financing (Uses) $ - $ - 4,584,651 $ 4,584,651

Fund Balance, Beginning of Year 33,784,265

Fund Balance, End of Year $ 38,368,916


BUDGET TO ACTUALGENERAL FUND

58

SCHEDULE A-2RICHLAND SCHOOL DISTRICT TWO

GENERAL FUNDSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -

REVISED BUDGET AND ACTUALFOR THE YEAR ENDED JUNE 30, 2014

REVISEDBUDGET ACTUAL VARIANCE

REVENUES

1000 Revenues from Local Sources

1200 Revenue from Local Governmental Units Other Than LEAs:1210 Ad Valorem Taxes - Including Delinquents $ 80,967,485 $ 80,543,130 $ (424,355) 1240 Penalties and Interest on Taxes 744,740 744,740 1280 Revenue in Lieu of Taxes (Independent and Dependent) 2,487,338 2,487,338

1300 Tuition:1310 Tuition from Patrons for Regular Day School 50,000 50,572 572 1320 Tuition from Other LEAs for Regular Day School 50,000 64,490 14,490 1350 Tuition from Patrons for Summer School 64,134 79,194 15,060 1360 Tuition from Other LEAs for Summer School 140,400 140,400

1500 Earnings on Investments:1510 Interest on Investments 200,000 280,171 80,171

1900 Other Revenue from Local Sources:1910 Rentals 200,000 162,922 (37,078) 1950 Refund of Prior Years Expenditures 1,517 1,517 1990 Miscellaneous Local Revenue

1993 Receipt of Insurance Proceeds 39,102 39,102 1999 Revenue from Other Local Sources 2,062,147 1,979,050 (83,097)

Total Local Sources 83,593,766 86,572,626 2,978,860

2000 Intergovernmental Revenue

2200 Payments from Public Charter School 85,000 92,980 7,980

Total Intergovernmental Revenues 85,000 92,980 7,980

3000 Revenue from State Sources

3130 Special Programs:3131 Handicapped Transportation 38,816 38,816 3132 Home Schooling 2,625 2,625

3160 School Bus Driver Salary 695,241 855,994 160,753 3162 Transportation Workers' Compensation 66,662 66,662 3180 Fringe Benefits Employer Contributions 24,420,571 24,954,840 534,269 3181 Retiree Insurance 4,332,558 5,708,824 1,376,266 3199 Other Restricted State Revenue 3,521 3,521

3300 Education Finance Act3310 Full-Time Programs:

3311 Kindergarten 3,949,816 3,826,587 (123,229) 3312 Primary 10,515,841 11,501,386 985,545 3313 Elementary 16,273,562 15,578,926 (694,636) 3314 High School 7,321,560 6,659,770 (661,790) 3315 Trainable Mentally Handicapped 380,773 278,373 (102,400) 3316 Speech Handicapped (Part-time Program) 3,395,215 2,762,950 (632,265) 3317 Homebound 245,207 160,531 (84,676)

3320 Part-Time Programs:3321 Emotionally Handicapped 560,811 504,551 (56,260) 3322 Educable Mentally Handicapped 261,450 252,852 (8,598) 3323 Learning Disabilities 3,998,938 4,230,901 231,963 3324 Hearing Handicapped 274,550 266,293 (8,257) 3325 Visually Handicapped 83,380 117,526 34,146 3326 Orthopedically Handicapped 88,505 75,143 (13,362) 3327 Vocational 8,905,431 9,032,354 126,923

3330 Other EFA Programs:3331 Autism 1,400,236 1,752,804 352,568

(Continued)

59





3800 State Revenue in Lieu of Taxes:3810 Reimbursement for Local Residential Property Tax Relief $ 8,759,333 $ 8,759,333 $ - 3820 Homestead Exemption 1,894,248 1,894,248 - 3825 Reimbursement for Property Tax Relief - Tier 3 36,443,042 36,489,487 46,445

Total State Sources 134,200,268 135,775,297 1,575,029

4000 Revenue from Federal Sources4100 Federally Impacted Areas

4110 Maintenance and Operations 450,000 380,933 (69,067)

Total Federal Sources 450,000 380,933 (69,067)

TOTAL REVENUES ALL SOURCES 218,329,034 222,821,836 4,492,802

EXPENDITURES

100 Instruction:110 General Instruction:

111 Kindergarten Programs:100 Salaries 6,307,668 6,247,129 60,539 140 Terminal Leave 9,727 (9,727) 200 Employee Benefits 2,207,466 2,204,837 2,629 400 Supplies and Materials 49,980 33,034 16,946

112 Primary Programs:100 Salaries 22,302,322 21,939,895 362,427 140 Terminal Leave 36,554 20,433 16,121 200 Employee Benefits 7,204,713 7,200,697 4,016 300 Purchased Services 229,106 206,018 23,088 400 Supplies and Materials 744,917 543,633 201,284 500 Capital Outlay 4,931 3,931 1,000

113 Elementary Programs:100 Salaries 31,754,334 31,701,420 52,914 140 Terminal Leave 11,540 34,070 (22,530) 200 Employee Benefits 10,454,137 10,472,253 (18,116) 300 Purchased Services 85,767 78,015 7,752 400 Supplies and Materials 636,927 523,617 113,310 500 Capital Outlay 3,922 2,983 939 600 Other Objects 1,300 724 576

114 High School Programs:100 Salaries 23,750,162 23,690,984 59,178 140 Terminal Leave 15,777 27,405 (11,628) 200 Employee Benefits 7,666,723 7,680,654 (13,931) 300 Purchased Services 210,179 168,407 41,772 400 Supplies and Materials 673,837 630,551 43,286 500 Capital Outlay 10,000 13,351 (3,351)

115 Vocational Programs:100 Salaries 2,068,968 2,011,920 57,048 200 Employee Benefits 647,886 647,388 498 300 Purchased Services 24,402 29,313 (4,911) 400 Supplies and Materials 177,450 130,725 46,725 500 Capital Outlay 8,900 9,586 (686)

116 Career and Technology Education (Vocational Programs) - Middle School100 Salaries 217,710 207,095 10,615 200 Employee Benefits 88,183 65,609 22,574

118 Montessori Programs100 Salaries 680,886 695,083 (14,197) 200 Employee Benefits 233,166 274,028 (40,862) 400 Supplies and Materials 588 29,427 (28,839)

(Continued)

60





120 Exceptional Programs:121 Educable Mentally Handicapped:

100 Salaries $ 1,596,282 $ 1,499,437 $ 96,845 140 Terminal Leave 7,192 (7,192) 200 Employee Benefits 521,652 525,773 (4,121) 300 Purchased Services 4,306 (4,306) 400 Supplies and Materials 645 (645)

122 Trainable Mentally Handicapped:100 Salaries 1,229,786 1,055,352 174,434 140 Terminal Leave 6,766 (6,766) 200 Employee Benefits 439,746 384,069 55,677 300 Purchased Services 358 (358) 500 Capital Outlay 4,830 4,830

123 Orthopedically Handicapped:100 Salaries 18,000 17,392 608 200 Employee Benefits 11,934 11,839 95 300 Purchased Services 4,120 4,120

124 Visually Handicapped:100 Salaries 72,000 69,957 2,043 200 Employee Benefits 25,010 25,692 (682) 300 Purchased Services 1,411 (1,411)

125 Hearing Handicapped:100 Salaries 300,522 271,139 29,383 200 Employee Benefits 95,957 88,785 7,172 300 Purchased Services 24,327 (24,327) 400 Supplies and Materials 43 (43)

126 Speech Handicapped:100 Salaries 1,634,402 1,617,842 16,560 200 Employee Benefits 506,156 533,918 (27,762) 300 Purchased Services 2,149 (2,149)

127 Learning Disabilities:100 Salaries 5,078,709 5,014,282 64,427 200 Employee Benefits 1,633,392 1,638,772 (5,380) 300 Purchased Services 263 7,805 (7,542) 400 Supplies and Materials 2,549 3,222 (673)

128 Emotionally Handicapped:100 Salaries 863,868 843,633 20,235 140 Terminal Leave 7,420 (7,420) 200 Employee Benefits 367,694 314,193 53,501 300 Purchased Services 14,520 3,585 10,935

129 Coordinated Early Intervening Services (CEIS):100 Salaries 300,999 314,265 (13,266) 140 Terminal Leave 7,980 (7,980) 200 Employee Benefits 86,134 97,139 (11,005)

130 Pre-School Programs:133 Preschool Handicapped Self-Contained (5-Yr.-Olds):

100 Salaries 278,745 262,384 16,361 200 Employee Benefits 109,885 104,985 4,900 400 Supplies and Materials 93 (93)

136 Pre-School Handicapped - Itinerant200 Employee Benefits 20 20

137 Pre-School Handicapped-Self-Contained (3 &4 year olds):100 Salaries 451,328 457,435 (6,107) 200 Employee Benefits 163,249 158,712 4,537 300 Purchased Services 4,033 (4,033) 400 Supplies and Materials 496 (496)

139 Early Childhood Programs:100 Salaries 93,733 139,048 (45,315) 200 Employee Benefits 55,393 41,914 13,479 400 Supplies and Materials 517 517

(Continued)

61





140 Special Programs:141 Gifted and Talented - Academic:

100 Salaries $ 135,000 $ 339,370 $ (204,370) 140 Terminal Leave 7,560 (7,560) 200 Employee Benefits 47,605 113,459 (65,854)

145 Homebound:100 Salaries 398,902 352,625 46,277 200 Employee Benefits 83,223 91,385 (8,162) 300 Purchased Services 22,292 37,193 (14,901) 400 Supplies and Materials 1,700 824 876

148 Gifted and Talented - Artistic:100 Salaries 98,000 72,610 25,390 200 Employee Benefits 7,526 16,183 (8,657) 300 Purchased Services 84,300 61,267 23,033 400 Supplies and Materials 50,012 31,238 18,774

149 Other Special Programs:100 Salaries 1,867 1,867

160 Other Exceptional Programs:161 Autism:

100 Salaries 1,288,112 1,281,810 6,302 140 Terminal Leave 3,969 (3,969) 200 Employee Benefits 470,095 472,596 (2,501) 300 Purchased Services 1,207 (1,207) 400 Supplies and Materials 102 (102)

170 Summer School Programs:172 Elementary Summer School:

300 Purchased Services 30,000 (30,000) 173 High School Summer School:

100 Salaries 52,112 25,153 26,959 200 Employee Benefits 12,022 5,775 6,247

175 Instructional Programs Beyond Regular School Days:100 Salaries 100,000 156,199 (56,199) 200 Employee Benefits 35,906 (35,906)

180 Adult/Continuing Educational Programs:181 Adult Basic Education Programs:

200 Employee Benefits 35,968 35,968 182 Adult Secondary Education Programs:

100 Salaries 131,475 128,885 2,590 200 Employee Benefits 35,161 (35,161)

183 ESL Programs:400 Supplies and Materials 155 (155)

188 Parenting/Family Literacy:100 Salaries 5,914 5,914 200 Employee Benefits 7,294 7,294

Total Instruction 137,505,215 136,404,362 1,100,853

200 Supporting Services:210 Pupil Services:

211 Attendance and Social Work Services:100 Salaries 1,600,826 1,613,797 (12,971) 200 Employee Benefits 554,164 551,143 3,021 300 Purchased Services 10,655 33,047 (22,392) 400 Supplies and Materials 3,315 2,539 776

212 Guidance Services:100 Salaries 4,841,279 4,722,693 118,586 140 Terminal Leave 15,446 (15,446) 200 Employee Benefits 1,489,991 1,524,200 (34,209) 300 Purchased Services 1,075 7,425 (6,350) 400 Supplies and Materials 31,176 25,136 6,040

(Continued)

62





213 Health Services:100 Salaries $ 991,518 $ 1,081,515 $ (89,997) 200 Employee Benefits 385,371 399,636 (14,265) 300 Purchased Services 561 7,292 (6,731) 400 Supplies and Materials 38,522 26,419 12,103

214 Psychological Services:100 Salaries 1,527,967 1,419,934 108,033 140 Terminal Leave 7,630 (7,630) 200 Employee Benefits 469,645 436,179 33,466 300 Purchased Services 34,864 22,064 12,800 400 Supplies and Materials 10,200 6,282 3,918 500 Capital Outlay 1,030 1,030

215 Exceptional Program Services:100 Salaries 103,007 74,127 28,880 200 Employee Benefits 17,489 17,119 370 300 Purchased Services 12,186 (12,186)

220 Instructional Staff Services:221 Improvement of Instruction-Curriculum Development:

100 Salaries 1,114,886 955,002 159,884 200 Employee Benefits 326,041 292,825 33,216 300 Purchased Services 11,925 39,878 (27,953) 400 Supplies and Materials 32,959 50,366 (17,407) 500 Capital Outlay 2,171 (2,171)

222 Library and Media Services:100 Salaries 2,367,768 2,309,682 58,086 140 Terminal Leave 13,559 (13,559) 200 Employee Benefits 817,565 821,562 (3,997) 300 Purchased Services 62,199 66,258 (4,059) 400 Supplies and Materials 115,703 114,003 1,700

223 Supervision of Special Programs:100 Salaries 1,388,512 1,365,733 22,779 200 Employee Benefits 560,020 428,762 131,258 300 Purchased Services 531,974 175,097 356,877 400 Supplies and Materials 14,414 9,937 4,477 500 Capital Outlay 530 530 600 Other Objects 2,620 (2,620)

224 Improvement of Instruction-Inservice and Staff Training:100 Salaries 364,254 148,360 215,894 200 Employee Benefits 41,489 40,030 1,459 300 Purchased Services 281,193 330,412 (49,219) 400 Supplies and Materials 29,127 39,964 (10,837)

230 General Administration Services:231 Board of Education:

100 Salaries 45,261 38,400 6,861 200 Employee Benefits 10,446 8,897 1,549 300 Purchased Services 92,100 97,982 (5,882) 318 Audit services 39,000 37,820 1,180 400 Supplies and Materials 7,774 (7,774) 600 Other Objects 189,000 43,356 145,644

232 Office of the Superintendent:100 Salaries 687,838 648,794 39,044 140 Terminal Leave 24,577 10,494 14,083 200 Employee Benefits 803,789 412,334 391,455 300 Purchased Services 166,035 230,393 (64,358) 400 Supplies and Materials 26,307 29,513 (3,206) 600 Other Objects 27,568 37,929 (10,361)

(Continued)

63





233 School Administration:100 Salaries $ 15,756,712 $ 15,764,059 $ (7,347) 140 Terminal Leave 39,122 33,468 5,654 200 Employee Benefits 5,518,852 5,011,882 506,970 300 Purchased Services 499,743 502,997 (3,254) 400 Supplies and Materials 250,615 257,814 (7,199) 500 Capital Outlay 6,500 1,337 5,163 600 Other Objects 1,815 1,815 -

250 Finance and Operations Services:251 Pupil Transportation-Federally Mandated:

100 Salaries 741 (741) 200 Employee Benefits 109 (109) 300 Purchased Services 75,000 180,775 (105,775)

252 Fiscal Services:100 Salaries 1,363,283 1,078,184 285,099 200 Employee Benefits 481,857 332,777 149,080 300 Purchased Services 73,974 54,082 19,892 400 Supplies and Materials 24,679 26,169 (1,490) 500 Capital Outlay 1,000 1,000 600 Other Objects 37,871 37,145 726

254 Operation and Maintenance of Plant:100 Salaries 3,140,275 3,149,811 (9,536) 140 Terminal Leave 23,621 9,698 13,923 200 Employee Benefits 1,182,763 1,069,883 112,880 300 Purchased Services 8,758,352 8,578,641 179,711 321 Public utilities (exclude gas, oil, elec. & heating fuels) 1,093,360 1,203,122 (109,762) 400 Supplies and Materials 697,119 1,152,870 (455,751) 470 Energy (include gas, oil, elec. & heating fuels) 7,316,124 7,756,147 (440,023) 500 Capital Outlay 97,180 12,771 84,409 600 Other Objects 130,000 1,215 128,785

255 Student Transportation:100 Salaries 4,068,536 4,372,245 (303,709) 140 Terminal Leave 15,802 (15,802) 200 Employee Benefits 1,222,819 1,353,813 (130,994) 300 Purchased Services 112,132 69,666 42,466 400 Supplies and Materials 22,531 30,318 (7,787) 500 Capital Outlay 622 621 1

258 Security:100 Salaries 1,687,381 1,673,764 13,617 140 Terminal Leave 793 (793) 200 Employee Benefits 474,161 451,937 22,224 300 Purchased Services 609,091 799,757 (190,666) 400 Supplies and Materials 35,094 39,651 (4,557) 500 Capital Outlay 3,705 1,204 2,501

260 Central Support Services:262 Planning, Research, Development & Evaluation:

100 Salaries 708,571 777,860 (69,289) 200 Employee Benefits 230,678 232,244 (1,566) 300 Purchased Services 420,009 306,287 113,722 400 Supplies and Materials 16,748 16,205 543

263 Information Services:100 Salaries 598,039 631,849 (33,810) 140 Terminal Leave 5,784 (5,784) 200 Employee Benefits 195,923 193,423 2,500 300 Purchased Services 52,783 62,810 (10,027) 400 Supplies and Materials 52,079 55,378 (3,299) 500 Capital Outlay 148 (148) 600 Other Objects 2,020 (2,020)

(Continued)

64





264 Staff Services:100 Salaries $ 1,137,110 $ 1,185,767 $ (48,657) 200 Employee Benefits 346,295 349,889 (3,594) 300 Purchased Services 257,834 228,119 29,715 400 Supplies and Materials 83,843 34,990 48,853 500 Capital Outlay 286 286 600 Other Objects 45 45

266 Technology and Data Processing Services:100 Salaries 2,326,487 2,289,519 36,968 140 Terminal Leave 1,984 (1,984) 200 Employee Benefits 855,737 735,956 119,781 300 Purchased Services 184,795 252,147 (67,352) 400 Supplies and Materials 287,484 217,976 69,508 500 Capital Outlay 5,883 (5,883)

270 Support Services - Pupil Activity:271 Pupil Service Activities:

100 Salaries 500 500 - 200 Employee Benefits 133 1,017 (884) 300 Purchased Services 1,070 137,447 (136,377) 400 Supplies and Materials 1,587 (1,587) 600 Other Objects 664 (664)

Total Supporting Services 84,847,473 83,570,252 1,277,221

300 Community Service:350 Custody and Care of Children Services

100 Salaries 690,710 806,780 (116,070) 200 Employee Benefits 268,312 290,233 (21,921) 300 Purchased Services 687 (687) 400 Supplies and Materials 14,603 (14,603)

Total Community Service 959,022 1,112,303 (153,281)

400 Other Charges:410 Intergovernmental Expenditures

412-720 Payments to Other Governmental Units 304,157 (304,157) 416-720 Payments to Public Charter Schools 604,000 696,774 (92,774)

Total Intergovernmental Expenditures 604,000 1,000,931 (396,931)

TOTAL EXPENDITURES 223,915,710 222,087,848 1,827,862

OTHER FINANCING SOURCES (USES)5300 Sale of Capital Assets - 45,849 45,849

Interfund Transfers, From (To) Other Funds:5230 Transfer from Special Revenue EIA Fund 5,136,676 5,178,693 42,017 5280 Transfer from Other Funds Indirect Costs 450,000 1,022,362 572,362

421-710 Transfer to Special Revenue Fund (238,800) (238,800) 425-710 Transfer to Food Service Fund (416,016) (416,016) 426-710 Transfer to Pupil Activity Fund (241,425) (241,425) 427-710 Transfer to Internal Service Fund (1,500,000) (1,500,000)

Total Other Financing Sources (Uses) 5,586,676 3,850,663 (1,736,013)

EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCINGSOURCES OVER EXPENDITURES AND OTHER FINANCING USES - 4,584,651 4,584,651

FUND BALANCE, Beginning of Year 33,784,265 33,784,265

FUND BALANCE, End of Year $ - $ 38,368,916 $ 38,368,916

Note: This schedule is presented as prescribed by the South Carolina State Department of Education.

65

SCHEDULE B

SPECIAL REVENUE FUNDS

The Special Revenue funds are used to record revenues derived from theState of South Carolina and the federal government, of which certainfunds are required to finance particular activities and may requirematching revenues from local sources. Separate revenues, expendituresand changes in fund balances are set forth for various reportingrequirements.

During 1984, the state legislature passed the Education Improvement Act(EIA) to upgrade the quality of education in South Carolina. Because ofthe categorical nature of the revenue, the state requires that revenues andexpenditures be accounted for in separate funds. Accordingly, the EIAfunds are reported as Special Revenue funds in the districts financialstatements.

The Special Projects Fund is used to account for all federal, state andlocal projects except for those funded under the Education ImprovementAct.

66

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73

SCHEDULE B-1

RICHLAND COUNTY SCHOOL DISTRICT TWONOTES TO SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

SPECIAL PROJECTS FUNDFOR THE YEAR ENDED JUNE 30, 2014

* Other Restricted State Grants * Other Special Revenue Programs

919 Education License Plates 212 Extended School Year Handicapped Service 822 Athletic Coach Fund926 Summer Reading Program 224 21st Century Grant 823 Columbia Jewish Federation928 EEDA Career Specialist 225 Mathematics & Science Partnership Grant 826 DHEC Recycling Mini Grant930 IDEA Contingency 232 McKinney Vento Education for Homeless 827 Sparkleberry Fair937 Student Health and Fitness - PE Teachers 237 Title I Support 832 SLC - Orangeburg Cons School District960 K-5 Lottery Enhancement 264 Language Inst.for Ltd English Proficient, Title III 834 PTO Grants967 6-8 Lottery Enhancement 267 Improving Teacher Quality, Title II 835 GraceLife Church Grant

269 Clemson/Agriculture/RV 836 Verizon Wireless Donation272 Donations 842 State Farm Southern Zone YAB275 Magnet School Assistance (2010 Award) 843 Profoundly Mentally Disabled281 Gear-Up Research Program 845 SCADA282 Project Care 846 Lipscomb Family Foundation283 Department of Defense Grant #1 847 Target Partners 4 Success285 Race to the Top 848 BiLo Charities288 Transportation 853 Food Lion Charities290 Magnet School Assistance (2013 Award) 855 SC Arts Commission Grants292 ROTC 857 GEAR Up!294 ARRA Energy Grant 858 Richland County Farm Council Grant297 Department of Defense Grant #2 859 State Farm Youth Advisory Board

299 Medicaid 861 Sodexo Grant802 Rebates 863 Homework Center803 SC Arts Commission - PCA 864 SC ASCD Grant804 Lowe's Charitable & Education 865 SC State Firefighters Association805 Dollar General Grant 866 ACS High School Chemistry807 Virtual High School 868 Walmart Foundation809 Texas Instruments 869 Athletics Spring Valley High School810 Richland County Conservation 879 Athletics Richland Northeast High School812 MCASC ABC CCP Grant 884 Athletics Ridge View High School814 Laptop Computer Insurance 892 Athletics Blythewood High School816 ING Unsung Hero Grant 894 Athletics Westwood High School821 Palmetto Pride

74

SCHEDULE B-2

RICHLAND SCHOOL DISTRICT TWOSPECIAL REVENUE FUNDS

SUMMARY SCHEDULE FOR DESIGNATED STATE RESTRICTED GRANTSFOR THE YEAR ENDED JUNE 30, 2014

SUBFUND REVENUE PROGRAMS REVENUES EXPENDITURES

919 3193 Education License Plates $ 12,749 $ 12,749 926 3177 Summer Reading Program 19,256 19,256 928 3118 EEDA Career Specialists 874,848 874,848 930 3133 IDEA Contingency 905,262 905,262 937 3127 Student Health and Fitness - PE Teachers 194,667 194,667 960 3610 K-5 Enhancement 911,738 911,738 967 3607 6-8 Enhancement 59,500 59,500

Totals $ 2,978,020 $ 2,978,020


75

SCHEDULE B-3RICHLAND SCHOOL DISTRICT TWO

SPECIAL REVENUE FUNDS - EDUCATION IMPROVEMENT ACTSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE


REVENUES3000 Revenue from State Sources

3500 Education Improvement Act:3502 ADEPT $ 23,098 3509 Arts in Education 98,737 3511 Professional Development 93,039 3518 Formative Assessment 146,224 3525 Career and Technology Education Equipment 226,619 3526 Refurbishment of K-8 Science Kits 155,304 3532 National Board Certification Salary Supplement 4,419,172 3533 Teacher of the Year Awards 10,765 3538 Students at Risk of School Failure 4,964,928 3540 Early Childhood Program (4K Programs Serving 4 yr. olds) 573,138 3544 High Achieving Students 804,379 3550 Teacher Salary Increase 4,576,089 3555 School Employer Contributions 608,445 3556 Adult Education 249,150 3558 Reading 124,642 3577 Teacher Supplies 536,800 3578 High Schools That Work/Making Middle Grades Work 36,171 3581 Student Health and Fitness - Nurses 646,581 3585 Aid to Districts - Special Education 896,795 3592 Work-Based Learning 106,844 3594 EEDA Supplemental Programs 101,314 3597 Aid to Districts 693,691 3599 Other EIA 10,042

Total State Sources 20,101,967

TOTAL REVENUES ALL SOURCES 20,101,967

EXPENDITURES

100 Instruction:

110 General Instruction:111 Kindergarten Programs:

100 Salaries 149,178 200 Employee Benefits 38,437 400 Supplies and Materials 26,125

112 Primary Programs:100 Salaries 1,592,726 200 Employee Benefits 484,209 300 Purchased Services 292,195 400 Supplies and Materials 533,929

113 Elementary Programs:100 Salaries 1,574,108 200 Employee Benefits 408,061 300 Purchased Services 26,652 400 Supplies and Materials 279,670

(Continued)

76




114 High School Programs:100 Salaries $ 1,399,914 200 Employee Benefits 376,675 300 Purchased Services 21,408 400 Supplies and Materials 195,871

115 Career and Technology Education Programs:100 Salaries 91,597 200 Employee Benefits 20,876 300 Purchased Services 250 400 Supplies and Materials 149,121 500 Capital Outlay 50,474

116 Career and Technology Education Programs - Middle School100 Salaries 15,000 200 Employee Benefits 3,398 400 Supplies and Materials 52,174

118 Montessori Programs400 Supplies and Materials 2,200

120 Exceptional Programs:121 Educable Mentally Handicapped

100 Salaries 30,080 200 Employee Benefits 6,819 300 Purchased Services 82,634 400 Supplies and Materials 13,495

122 Trainable Mentally Handicapped100 Salaries 36,711 200 Employee Benefits 8,459 300 Purchased Services 5,104 400 Supplies and Materials 16,954

123 Orthopedically Handicapped:400 Supplies and Materials 29,855

124 Visually Handicapped100 Salaries 7,500 200 Employee Benefits 1,705 300 Purchased Services 790 400 Supplies and Materials 7,625

125 Hearing Handicapped400 Supplies and Materials 1,322

126 Speech Handicapped:100 Salaries 7,775 200 Employee Benefits 1,723 300 Purchased Services 2,000 400 Supplies and Materials 17,244

127 Learning Disabilities:100 Salaries 229,984 200 Employee Benefits 54,340 300 Purchased Services 16,261 400 Supplies and Materials 106,624

(Continued)

77




128 Emotionally Handicapped:100 Salaries $ 34,809 200 Employee Benefits 7,975 300 Purchased Services 2,280 400 Supplies and Materials 11,252

129 Coordinated Early Intervening Services (CEIS)100 Salaries 7,500 200 Employee Benefits 1,729

130 Pre-School Programs:133 Pre-School Handicapped Self-Contained (5 Yr. olds):

100 Salaries 670 200 Employee Benefits 132 400 Supplies and Materials 1,925

136 Preschool Handicapped Itinerant (3 and 4 Year Old)100 Salaries 1,076 200 Employee Benefits 245

137 Preschool Handicapped Self-Contained (3 and 4 Year Old)100 Salaries 103,717 200 Employee Benefits 42,816 300 Purchased Services 1,728 400 Supplies and Materials 6,858

139 Early Childhood Programs:100 Salaries 442,255 200 Employee Benefits 145,274 400 Supplies and Materials 7,150

140 Special Programs:141 Gifted and Talented Academic:

100 Salaries 577,690 200 Employee Benefits 188,645 300 Purchased Services 239 400 Supplies and Materials 14,429

143 Advanced Placement:100 Salaries 6,420 200 Employee Benefits 1,471 400 Supplies and Materials 6,274

143 Advanced Placement:400 Supplies and Materials 275

148 Gifted and Talented Artistic:100 Salaries 16,478200 Employee Benefits 4,001300 Purchased Services 28,630400 Supplies and Materials 12,585

(Continued)

78




160 Other Exceptional Programs 161 Autism

100 Salaries $ 186,865200 Employee Benefits 67,668300 Purchased Services 4,014400 Supplies and Materials 23,539500 Equipment 6,023

170 Summer School Program:171 Primary Summer School:

400 Supplies and Materials 624172 Elementary Summer School:

100 Salaries 32,618200 Employee Benefits 7,320300 Purchased Services 7,400400 Supplies and Materials 1,170

173 High School Summer School 100 Salaries 1,800200 Employee Benefits 232

175 Instructional Programs Beyond Regular School Day:100 Salaries 351,357200 Employee Benefits 80,986300 Purchased Services 22,860400 Supplies and Materials 12,013

180 Adult/Continuing Educational Programs:182 Adult Secondary Education Programs:

100 Salaries 67,823200 Employee Benefits 23,190400 Supplies and Materials 4,787

183 Adult English Literacy (ESL):100 Salaries 4,489200 Employee Benefits 469400 Supplies and Materials 5,577

188 Parenting/Family Literacy:100 Salaries 122,942200 Employee Benefits 41,500300 Purchased Services 898

Total Instruction 11,223,944

200 Supporting Services:

210 Pupil Services:211 Attendance and Social Work Services

100 Salaries 45,903200 Employee Benefits 19,325300 Purchased Services 52,504400 Supplies and Materials 21,867

(Continued)

79




212 Guidance Services100 Salaries $ 201,250200 Employee Benefits 46,087400 Supplies and Materials 19,250

213 Health Services100 Salaries 451,713200 Employee Benefits 194,868300 Purchased Services 20,000

214 Psychological Services400 Supplies and Materials 58,137

215 Exceptional Program Services100 Salaries 52,436200 Employee Benefits 20,865300 Purchased Services 4,875

220 Instructional Staff Services221 Improvement of Instruction - Curriculum Development:

100 Salaries 506,030200 Employee Benefits 162,197300 Purchased Services 549

222 Library and Media Services:100 Salaries 97,500200 Employee Benefits 22,271400 Supplies and Materials 7,700

223 Supervision of Special Programs:100 Salaries 377,084200 Employee Benefits 104,930300 Purchased Services 73,110400 Supplies and Materials 45,357600 Other Objects 600

224 Improvement of Instruction - In-service and Staff Training:100 Salaries 25,307200 Employee Benefits 5,319300 Purchased Services 483,815400 Supplies and Materials 119,302

230 Support Service - General Administration:232 Office of Superintendent:

400 Supplies and Materials 758233 School Administration:

100 Salaries 53,725200 Employee Benefits 20,027300 Purchased Services 413400 Supplies and Materials 15,539

250 Finance and Operations Services:251 Student Transportation (Federal/District Mandated)

300 Purchased Services 102,137254 Operations and Maintenance

400 Supplies and Materials 983 500 Capital Outlay 15,842

(Continued)

80




260 Support Service - Central:262 Planning

300 Purchased Services $ 146,224266 Technology & Data Processing Services

300 Purchased Services 1,841

270 Support Services - Pupil Activity 271 Pupil Service Activity

300 Purchased Services 38,370 400 Supplies and Materials 2,265 660 Pupil Activity 43,719

Total Support Services 3,681,994

300 Community Services:

390 Other Community Services300 Purchased Services 8,535 400 Supplies and Materials 1,338

Total Community Services 9,873

400 Other Charges:

410 Intergovernmental Expenditures416-720 Payments to Public Charter Schools 5,840

Total Community Services 5,840

TOTAL EXPENDITURES 14,921,651

OTHER FINANCING SOURCES (USES)

420 Interfund Transfers, From (To) Other Funds:420-710 Transfer to General Fund (Exclude Indirect Costs) (5,178,693)

430 Indirect Cost Transfers431-791 Transfer - Special Revenue Fund Indirect Cost (1,623)

TOTAL OTHER FINANCING SOURCES (USES) (5,180,316) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING

SOURCES OVER EXPENDITURES AND OTHER FINANCING USES -

FUND BALANCES, Beginning of Year -

FUND BALANCES, End of Year $ -


81


SPECIAL REVENUE FUNDS - EDUCATION IMPROVEMENT ACTSUMMARY SCHEDULE BY PROGRAMFOR THE YEAR ENDED JUNE 30, 2014

TRANSFERS DEFERREDPROGRAM REVENUES EXPENDITURES IN/(OUT) REVENUE

3500 Education Improvement Act:3502 ADEPT $ 23,098 $ 23,098 $ $ 35,739 3505 Technology Support 42,384 3509 Arts in Education 98,737 98,737 23,806 3511 Professional Development 93,039 93,039 57,522 3518 Formative Assessment 146,224 146,224 64,297 3525 Career and Technology Education Equipment 226,619 226,619 53,727 3526 Refurbishment of K-8 Science Kits 155,304 155,304 20,765 3532 National Board Certification Salary Supplement 4,419,172 4,419,172 3533 Teacher of the Year Awards 10,765 10,765 3538 Students at Risk of School Failure 4,964,928 4,964,928 3,459,021 3540 Early Childhood Program (4K Programs Serving 4 yr olds) 573,138 573,138 3,002 3544 High Achieving Students 804,379 804,379 3550 Teacher Salary Increase 4,576,089 4,724 (4,571,365) 3555 School Employer Contributions 608,445 1,117 (607,328) 3556 Adult Education 249,150 249,150 19,688 3558 Reading 124,642 124,642 2,144 3577 Teacher Supplies 536,800 536,800 3578 High Schools That Work/Making Middle Grades Work 36,171 36,171 36,434 3581 Student Health and Fitness - Nurses 646,581 646,581 3585 Aid to Districts - Special Education 896,795 896,795 86,274 3592 Work-Based Learning 106,844 106,844 3594 EEDA Supplemental Programs 101,314 99,691 (1,623) 89,000 3597 Aid to Districts 693,691 693,691 977,283 3599 Other EIA 10,042 10,042

Totals $ 20,101,967 $ 14,921,651 $ (5,180,316) $ 4,971,086


82

SCHEDULE C

DEBT SERVICE FUND

The Debt Service Fund is used to record payments of interest andprincipal on long-term general obligation debt from tax proceeds andearnings on temporary investments.

83

SCHEDULE C-1RICHLAND SCHOOL DISTRICT TWO

DEBT SERVICE FUNDSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE


REVENUES

1000 Revenue from Local Sources1200 Revenue from Local Governmental Units Other than LEA's: 1210 Ad Valorem Taxes - Including Delinquent $ 50,171,106

1280 Revenue in Lieu of Taxes 799,645 1500 Earnings on Investments:

1510 Interest on Investments 172,290

Total Local Sources 51,143,041

4000 Revenue from Federal Sources 4900 Other Federal Sources

4999 Revenue from Other Federal Sources 3,224,984

Total Federal Sources 3,224,984

TOTAL REVENUES ALL SOURCES 54,368,025

EXPENDITURES

500 Debt Service:610 Redemption of Principal 29,305,000 620 Interest 22,749,681 690 Other Objects 25,496


Excess of Revenues Over Expenditures 2,287,848

EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCINGSOURCES OVER EXPENDITURES AND OTHER FINANCING USES 2,287,848

FUND BALANCE, Beginning of Year 15,816,637

FUND BALANCE, End of Year $ 18,104,485


84

SCHEDULE D

CAPITAL PROJECTS FUND

The Capital Projects fund, also referred to as the "Building Fund," is usedto record the proceeds from the sale of long-term general obligation bondsand other revenues used for facilities acquisitions and construction. Thefund balance is reserved for the completion of specific projects.

85

SCHEDULE D-1

RICHLAND SCHOOL DISTRICT TWOCAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEFOR THE YEAR ENDED JUNE 30, 2014

REVENUES

1000 Revenue from Local Sources1500 Earnings on Investments:

1510 Interest on Investments $ 140,2401900 Other Revenue from Local Services

1993 Receipt of Insurance Proceeds 102,5141999 Revenue from Other Local Sources 10,833

Total Local Sources 253,587

TOTAL REVENUES ALL SOURCES 253,587

EXPENDITURES200 Support Services

250 Finance and Operations:251 Student Transportation

500 Capital Outlay 457,569 253 Facilities Acquisition and Construction:

300 Purchased Services 1,539,373 400 Supplies and Materials 6,849 500 Capital Outlay

510 Land 4,344,452 520 Buildings 10,630,168 530 Improvements Other Than Buildings 1,156,300 540 Expendable Equipment 2,687,385 541 Equipment 128,403 550 Vehicles 63,705 560 Library Books 66,906 580 Mobile Classrooms 498,175 590 Other 217,744

256 Food Service500 Capital Outlay

540 Expendable Equipment 271,083 258 Security

500 Capital Outlay540 Expendable Equipment 98,560

260 Central Support Services266 Data Processing Services

300 Purchased Services 1,770,225 400 Supplies and Materials 7,025,361 500 Capital Outlay

545 Technology, Equipment and Software 334,533

Total Support Services 31,296,791

410 Intergovernmental Expenditures412-720 Payments to Other Governmental Units 51,030

Total Intergovernmental Expenditures 51,030


(Continued)

86

SCHEDULE D-1

RICHLAND SCHOOL DISTRICT TWOCAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEFOR THE YEAR ENDED JUNE 30, 2014


5100 Sale of Bonds:5110 Premium on Bonds Sale $ 1,966,124 5120 Proceeds of General Obligation Bonds 9,430,000

Total Other Financing Sources (Uses) 11,396,124

EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCINGSOURCES OVER EXPENDITURES AND OTHER FINANCING USES (19,698,110)

FUND BALANCE, Beginning of Year 118,668,081

FUND BALANCE, End of Year $ 98,969,971


87

SCHEDULE E

ENTERPRISE FUND

The Enterprise Fund records the financing, operation and maintenance ofthe food service fund operates in a manner similar to a private businessenterprise. The fund's purpose is to provide balanced nutritional meals toSchool District students, some of which are free and reduced meals underthe United States Department of Agriculture school breakfast and lunchprograms.

88

SCHEDULE E-1

REVENUES:1000 Revenues from Local Sources:

1500 Earnings on Investments:1510 Interest on Investments $ 27,871

1600 Food Services:1610 Lunch Sales to Pupils 2,611,237 1620 Breakfast Sales to Pupils 24,748 1630 Special Sales to Pupils 184,036 1640 Lunch Sales to Adults 220,280 1650 Breakfast Sales to Adults 5,310 1660 Special Sales to Adults 29,342

1900 Other Revenue from Local Sources:1990 Miscellaneous Local Revenue: 1999 Revenue from Other Local Sources 32,847


3000 Revenue from State Sources:3140 School Lunch:

3142 Program Aid 696 Total State Sources 696

4000 Revenue from Federal Sources:4800 USDA Reimbursements:

4810 School Lunch Program 5,652,821 4830 School Breakfast Program 1,679,963

4900 Other Federal Sources:4991 USDA Commodities 600,888 4999 Other Federal Revenue 274,414

Total Federal Sources 8,208,086

Total Revenue - All Sources 11,344,453

EXPENSES:

250 Finance and Operation Services:256 Food Services:

100 Salaries 1,268,834 200 Employee Benefits 614,919 300 Purchased Services 8,006,704 400 Supplies and Materials 587,471 500 Capital Outlay 343,592 600 Other Objects 90,166

Total Expenses 10,911,686

OTHER FINANCING SOURCES(USES):

Interfund Transfers, From (To) Other Funds:

5210 Transfer from General Fund 416,016 432-791 Transfer Food Service Fund Indirect Costs (563,203)

Total Other Financing (Uses) (147,187)

Change in Net Position 285,580

Total Net Position - Beginning of Year 5,284,444

Total Net Position - End of Year $ 5,570,024 Note: This schedule is presented as prescribed by the South Carolina State Department of Education.

RICHLAND SCHOOL DISTRICT TWOSCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

ENTERPRISE FUND - FOOD SERVICE PROGRAMFOR THE YEAR ENDED JUNE 30, 2014

89

SCHEDULE F

INTERNAL SERVICE FUND

The Internal Service Fund is used to account for the financing of goodsand services provided by one department to other departments of theSchool District, on a cost-reimbursement basis.

90

SCHEDULE F-1

RICHLAND SCHOOL DISTRICT TWOSTATEMENT OF CHANGES IN NET POSITION AND LIABILITIES

INTERNAL SERVICE FUNDFOR THE YEAR ENDED JUNE 30, 2014

ASSETS

Cash and Cash Equivalent $ 387,461 Prepaid Expenses 115,625 Receivable from Other Funds 1,603,384

TOTAL ASSETS 2,106,470

LIABILITIES AND NET POSITION

Accounts Payable 31,499 Claims Payable 1,278,181

TOTAL LIABILITIES 1,309,680

NET POSITION - UNRESTRICTED 796,790

TOTAL LIABILITIES AND NET POSITION $ 2,106,470

The accompanying notes are an integral part of these basic financial statements.


91

SCHEDULE F-2RICHLAND SCHOOL DISTRICT TWO

SCHEDULE OF REVENUES, EXPENSES ANDCHANGES IN NET POSITION - INTERNAL SERVICE FUND


REVENUES

1000 Receipts from Local Sources1500 Earnings on Investments

1510 Interest on Investments $ 8,185

Total Local Sources 8,185


EXPENSES

111 Kindergarten Programs 200 Employee Benefits 10,982

112 Primary Programs 200 Employee Benefits 137,449

113 Elementary Programs 200 Employee Benefits 131,058

114 High School Programs 200 Employee Benefits 60,128

115 Career and Technology Education Programs200 Employee Benefits 6

118 Montessori Programs200 Employee Benefits 261

121 Educable Mentally Handicapped200 Employee Benefits 2,135

122 Trainable Mentally Handicapped200 Employee Benefits 1,327

126 Speech Handicapped200 Employee Benefits 173

127 Learning Disabilities200 Employee Benefits 2,831

128 Emotionally Handicapped200 Employee Benefits 163

137 Preschool Handicapped Self-Contained (3&4 Year Olds)200 Employee Benefits 10,039

139 Early Childhood Programs200 Employee Benefits 3,702

141 Gifted & Talented200 Employee Benefits 139

161 Autism200 Employee Benefits 2,804

175 Instructional Programs Beyond School Day200 Employee Benefits 201

190 Instructional Pupil Activity200 Employee Benefits 165

211 Attendance and Social Work Services200 Employee Benefits 19,578

212 Guidance200 Employee Benefits 501

213 Health Services200 Employee Benefits 446

214 Psychological Services200 Employee Benefits 64,942

215 Exceptional Program Services200 Employee Benefits 127

217 Career Specialist Services200 Employee Benefits 17,832

221 Curriculum Development200 Employee Benefits 6

222 Library and Media200 Employee Benefits 550

223 Supervision of Special Programs200 Employee Benefits 1,135

233 School Administration200 Employee Benefits 151,858 400 Supplies and Materials 2,650

(Continued)

92

251 Student Transportation (Federal/District Mandated)200 Employee Benefits $ 1,178

254 Operations and Maintenance of Plant200 Employee Benefits 126,508 400 Supplies and Materials 770 600 Other Objects 179,284

255 Student Transportation100 Salaries 303 200 Employee Benefits 174,406

256 Food Service200 Employee Benefits 21,495

258 Security200 Employee Benefits 4,952

266 Technology and Data Processing Services200 Employee Benefits 98

350 Custody and Care of Children Services200 Employee Benefits 40,655

TOTAL EXPENSES 1,172,837

EXCESS RECEIPTS OVER DISBURSEMENTS (1,164,652)



5210 Transfer from General Fund 1,500,000

Total Other Financing Sources (Uses) 1,500,000

EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCINGSOURCES OVER EXPENDITURES AND OTHER FINANCING USES 335,348

Net Position, Beginning of Year 461,442

Net Position, End of Year 796,790$


93

SCHEDULE G

FIDUCIARY FUND TYPE

The Agency Fund is used to record the receipts and disbursements ofmonies from various pupil activity organizations. These organizationsexist at the explicit approval of the Board of Trustees. The approval maybe revoked by the Board of Trustees. The fund accounting reflects theSchool District's agency relationship with the Pupil Activity organizations.Since the Agency Fund is custodial, no fund balances exist.

94

SCHEDULE G-1

RICHLAND SCHOOL DISTRICT TWOSTATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES

AGENCY FUND - PUPIL ACTIVITIESFOR THE YEAR ENDED JUNE 30, 2014

Balance BalanceJuly 1, 2013 Additions Deletions June 30, 2014

ASSETS

Cash and Cash Equivalents $ 4,149,118 $ 2,580,432 $ 345,012 $ 6,384,538 Accounts Receivable 22,227 23,767 22,227 23,767

TOTAL ASSETS 4,171,345 2,604,199 367,239 6,408,305

LIABILITIES

Accounts Payable 86,366 111,619 86,366 111,619 Payable to Other Funds 236,419 2,382,704 236,419 2,382,704 Due to Pupil Activities 3,848,560 65,422 3,913,982

TOTAL LIABILITIES $ 4,171,345 $ 2,559,745 $ 322,785 $ 6,408,305


95

SCHEDULE G-2RICHLAND SCHOOL DISTRICT TWO

SCHEDULE OF RECEIPTS, DISBURSEMENTS AND CHANGES IN DUE TO PUPIL ACTIVITIESAGENCY FUND - PUPIL ACTIVITIES


RECEIPTS

1000 Receipts from Local Sources1700 Pupil Activities

1710 Admissions $ 39,892 1720 Bookstore Sales 8,443 1730 Pupil Organization Membership Dues and Fees 18,202 1740 Student Fees 2,246,662 1790 Other 4,733,895

1900 Other Revenue from Local Sources1999 Revenue from Other Local Sources 486,980


TOTAL RECEIPTS ALL SOURCES 7,534,074

DISBURSEMENTS

112 Primary Programs 100 Salaries 70 200 Employee Benefits 5

190 Instructional Pupil Activity100 Salaries 705,979 200 Employee Benefits 159,641 300 Purchased Services 1,015 660 Pupil Activity 2,303,445

257 Internal Services400 Supplies and Materials 9,216 660 Pupil Activity 1,016

270 Support Services Pupil Activity271 Pupil Services Activities

100 Salaries 691,425 200 Employee Benefits 152,769 300 Purchased Services 14,776 660 Pupil Activity 3,592,664

TOTAL DISBURSEMENTS 7,632,021

Excess of Receipts Over Disbursements (97,947)



5210 Transfer from General Fund 241,425 421-710 Transfer to Special Revenue Fund (78,056)

Total Other Financing Sources (Uses) 163,369

EXCESS (DEFICIENCY) OF RECEIPTS AND OTHER FINANCINGSOURCES OVER DISBURSEMENTS 65,422

DUE TO PUPIL ACTIVITIES, Beginning of Year 3,848,560

DUE TO PUPIL ACTIVITIES, End of Year 3,913,982$ Note: This schedule is presented as prescribed by the South Carolina State Department of Education.

96

SCHEDULE H

COMPONENT UNIT

CHARTER SCHOOL

The Charter School operates under a Charter granted by the District andis considered, under South Carolina Law, to be a public school and acomponent unit of the School District.

97

SCHEDULE H-1

RICHLAND SCHOOL DISTRICT TWOCOMPONENT UNIT - RICHLAND TWO CHARTER HIGH SCHOOL

STATEMENT OF FINANCIAL POSITIONJUNE 30, 2014

ASSETS

Due from District $ 328,253

TOTAL ASSETS 328,253

LIABILITIES AND NET POSITION

Accounts Payable 390

TOTAL LIABILITIES 390

NET POSITION - UNRESTRICTED 327,863

TOTAL LIABILITIES AND NET POSITION $ 328,253

The accompanying notes are an integral part of these basic financial statements.


98

SCHEDULE H-2RICHLAND SCHOOL DISTRICT TWO

COMPONENT UNIT - RICHLAND TWO CHARTER HIGH SCHOOLSCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION


REVENUES

2000 Intergovernmental Units2100 Payments from Other Governmental Units $ 702,614

Total Intergovernmental Units 702,614


EXPENDITURES

100 INSTRUCTION115 Career and Technology Education Programs

100 Salaries 88,739 200 Employee Benefits 28,162

127 Learning Disabilities400 Supplies and Materials 2,480

145 Homebound200 Employee Benefits 47

Total Instruction 119,428

200 SUPPORT SERVICES212 Guidance Services

100 Salaries 61,822 200 Employee Benefits 20,070

223 Supervision of Special Programs300 Purchased Services 6,682 400 Supplies and Materials 705

224 Improvement of Instruction - Inservice and Staff Training100 Salaries 250 200 Employee Benefits 59

233 School Administration100 Salaries 168,176 200 Employee Benefits 47,272 300 Purchased Services 23,805 400 Supplies and Materials 3,446 600 Other Objects 325

254 Operations and Maintenance of Plant300 Purchased Services 500

271 Pupil Service Activities600 Other Objects 257

Total Support Services 333,369

410 Intergovernmental Expenditures412-720 Payments to Other Governmental Units 145,856

TOTAL EXPENDITURES 598,653

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 103,961

Net Position, Beginning of Year 223,902

Net Position, End of Year $ 327,863


99

SCHEDULE I

OTHER SUPPLEMENTAL SCHEDULE

The following schedule is required by the South Carolina Department ofEducation.

100

SCHEDULE I-1RICHLAND SCHOOL DISTRICT TWO

DETAILED SCHEDULE OF DUE TO STATE DEPARTMENT OF EDUCATION/FEDERAL GOVERNMENTFOR THE YEAR ENDED JUNE 30, 2014

AMOUNT DUE TOSTATE DEPARTMENT

PROJECT/ REVENUE & OF EDUCATION STATUS OF GRANT SUBFUND OR FEDERAL AMOUNT DUE

PROGRAM NUMBER CODES DESCRIPTION GOVERNMENT TO GRANTORS

Use of State Buses N/A 100/1999 Payment due for bus usage 24,573$ Check IssuedNational Board Certification Salary Supplement N/A 332/3532 Return Funds in Excess of Expenditures 25,256 In ProcessFormative Assessment N/A 933/3118 Return Funds in Excess of Expenditures 3,260 Check Issued

53,089$


101


102

STATISTICAL SECTION

(UNAUDITED)

The Statistical Section of the District's comprehensive annual financialreport presents detailed information as a context for understanding theinformation in the financial statements, note disclosures, and requiredsupplementary information says about the School District's overallfinancial health.

Financial TrendsThese schedules contain trend information to help the reader understandhow the School District's financial performance and well-being havechanged over time.

Revenue CapacityThese schedules contain information to help the reader assess the SchoolDistrict's most significant local revenue source, the property tax.

Debt CapacityThese schedules present information to help the reader assess theaffordability of the School District's current levels of outstanding debt andthe School District's ability to issue additional debt in the future.

Demographic and Economic InformationThese schedules offer demographic and economic indicators to help thereader understand the environment in which the School District's financialactivities take place.

Operating Information

These schedules contain service and infrastructure data to help the reader understand how the information in the School District's financial reportrelates to the services the District provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derivedfrom the comprehensive annual financial reports for the relevant year.

103

Tabl

e 1

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

NET

PO

SITI

ON

BY

CO

MPO

NEN

T

JU

NE

2005

TH

RO

UG

H 2

014

(AC

CR

UA

L B

ASI

S)

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Gov

ernm

enta

l Act

iviti

esN

et In

vest

men

t in

Cap

ital A

sset

s19

,621

,388

$

92,2

63,2

57$

93

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,711

$

111,

046,

564

$ 37

,991

,914

$

85,1

00,5

93$

64

,763

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$

83,9

27,6

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10

9,73

3,69

0$

11

3,76

9,14

9$

R

estri

cted

76,0

76,7

93

13

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,594

22,8

53,7

27

21

,325

,583

103,

689,

062

62

,874

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77,4

13,2

17

52

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,754

12,1

80,3

80

14,4

99,4

95

U

nres

trict

ed6,

904,

811

7,

735,

134

12

,782

,538

17,2

44,1

97

16

,940

,493

19,2

93,6

52

23

,910

,614

26,3

62,6

08

32

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35

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,156

Tota

l Gov

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l Act

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es N

et P

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2,60

2,99

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113,

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985

12

9,18

2,97

6

149,

616,

344

15

8,62

1,46

9

167,

268,

390

166,

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280

16

2,74

0,03

9

154,

596,

100

164,

132,

800

Bus

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s-Ty

pe A

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Net

Inve

stm

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n C

apita

l Ass

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637,

503

1,08

2,76

4

1,45

4,68

5

1,75

3,11

5

1,65

2,29

5

1,82

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7

2,71

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4

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0

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234,

238

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nres

trict

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781,

497

2,

912,

972

3,

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711

2,

382,

544

2,

515,

366

2,

511,

364

2,

842,

873

2,

914,

064

2,

755,

534

3,33

5,78

6

Tota

l Bus

ines

s-Ty

pe A

ctiv

ities

Net

Pos

ition

3,41

9,00

0

3,99

5,73

6

4,53

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4,13

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4,16

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4

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Prim

ary

Gov

ernm

ent

Net

Inve

stm

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n C

apita

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ets

20,2

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91

93

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95,0

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11

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9

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112,

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116,

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Res

trict

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83

10

3,68

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2

62,8

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77

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52,4

49,7

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12

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14

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Unr

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9,68

6,30

8

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06

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19,6

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41

19

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21,8

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16

26

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29,2

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35

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Tota

l Prim

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ernm

ent

106,

021,

992

$ 11

7,61

5,72

1$

133,

721,

372

$ 15

3,75

2,00

3$

162,

789,

130

$ 17

1,60

1,26

1$

17

1,64

4,31

7$

168,

451,

154

$ 15

9,88

0,54

4$

16

9,70

2,82

4$

104

Tabl

e 2

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

EXPE

NSE

S, P

RO

GR

AM R

EVEN

UES

AN

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FOR

FIS

CAL

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RS

END

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UN

E 30

, 200

5 TH

RO

UG

H 2

014

(AC

CR

UAL

BAS

IS)

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Expe

nses

Gov

ernm

enta

l Act

iviti

es:

Inst

ruct

ion

94,0

04,3

30$

10

3,70

9,73

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11

3,48

8,51

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12

6,17

8,94

4$

14

0,83

3,01

9$

15

0,80

1,16

4$

14

5,85

6,21

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5,35

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1$

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6,23

6,69

9$

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1,25

0,77

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S

uppo

rt S

ervi

ces

55,8

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65

65

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66,7

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71

69

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91,9

28,9

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98

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10

1,60

0,10

3

107,

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11

4,58

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116,

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318

Com

mun

ity S

ervi

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2,

179,

236

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764,

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743,

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1,

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158

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534,

120

1,

189,

962

Inte

rgov

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enta

l37

4,05

4

511,

206

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95

1,20

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1,39

1,39

3

In

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st a

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ther

Cha

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Long

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m D

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5,46

7,39

2

8,

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137

10

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11,5

59,2

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15,5

33,7

83

25,8

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29

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400

28,8

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86

14,9

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92

Pup

il A

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ities

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80,2

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127

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atio

n - U

nallo

cate

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3

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Tota

l Gov

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l Act

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es E

xpen

ses

162,

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18

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9,22

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19

9,54

4,86

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21

7,93

9,95

8

24

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4

26

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275,

129,

529

28

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6

312,

374,

166

30

5,29

6,13

9

Bus

ines

s-Ty

pe A

ctiv

ities

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od S

ervi

ces

5,91

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6,

447,

474

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382

8,

252,

332

8,

602,

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9,

072,

930

10

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10

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,175

11

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10

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Tota

l Bus

ines

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pe A

ctiv

ities

Exp

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915,

421

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6,83

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8,60

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0

10,0

73,5

26

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75

11,3

92,4

66

10,9

11,6

86

Tota

l Prim

ary

Gov

ernm

ent E

xpen

ses

168,

435,

513

19

3,01

6,69

4

20

6,38

4,24

6

22

6,19

2,29

0

25

3,71

6,69

5

27

5,94

1,51

2

285,

203,

055

29

5,98

0,75

1

323,

766,

632

31

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7,82

5

Prog

ram

Rev

enue

sG

over

nmen

tal A

ctiv

ities

:C

harg

es fo

r Ser

vice

sIn

stru

ctio

n17

4,15

4

223,

326

285,

623

24

5,44

8

521,

476

41

6,02

4

1,

173,

357

85

4,10

5

29

4,03

5

33

4,65

6

Sup

port

Ser

vice

s96

- -

- 70

8,94

2

684,

816

414,

042

633,

902

160,

689

162,

922

O

pera

ting

Gra

nts

and

Con

tribu

tions

80,4

60,7

05

92

,830

,783

99,2

22,8

03

10

8,49

9,15

8

10

8,44

5,58

4

11

4,86

0,64

8

110,

113,

364

11

2,96

1,00

4

121,

897,

536

12

7,30

4,69

4

C

apita

l Gra

nts

and

Con

tribu

tions

1,08

9,64

6

30

4,29

5

35

0,92

6

458,

460

-

477,

640

Tota

l Gov

ernm

enta

l Act

ivat

es P

rogr

am R

even

ues

81,7

24,6

01

93

,358

,404

99,8

59,3

52

10

8,74

4,60

6

11

0,13

4,46

2

11

5,96

1,48

8

112,

178,

403

11

4,44

9,01

1

122,

352,

260

12

7,80

2,27

2

Bus

ines

s-Ty

pe A

ctiv

ities

Cha

rges

for S

ervi

ces

Food

Ser

vice

s2,

882,

771

2,92

2,04

1

3,04

6,27

2

3,02

4,94

3

3,28

8,33

0

3,27

0,71

0

3,43

7,74

6

3,27

3,67

2

3,40

8,12

7

3,10

7,80

0

O

pera

ting

Gra

nts

and

Con

tribu

tions

3,66

5,32

4

3,

918,

372

4,

172,

793

4,

635,

302

5,

278,

475

5,

883,

408

6,

607,

778

7,

140,

736

7,

398,

346

7,

788,

741

Tota

l Bus

ines

s-Ty

pe A

ctiv

ates

Pro

gram

Rev

enue

s6,

548,

095

6,84

0,41

3

7,21

9,06

5

7,66

0,24

5

8,56

6,80

5

9,15

4,11

8

10,0

45,5

24

10,4

14,4

08

10,8

06,4

73

10,8

96,5

41

Tota

l Prim

ary

Gov

ernm

ent P

rogr

am R

even

ues

88,2

72,6

96

10

0,19

8,81

7

10

7,07

8,41

7

11

6,40

4,85

1

11

8,70

1,26

7

12

5,11

5,60

6

122,

223,

927

12

4,86

3,41

9

133,

158,

733

13

8,69

8,81

3

Com

pone

nt U

nits

:

C

hart

er S

choo

l78

,459

56

6,06

0

67

3,96

7

60

8,44

0

70

2,61

4

Net

(Exp

ense

) Rev

enue

Gov

ernm

enta

l Act

iviti

es(8

0,79

5,49

1)

(93,

210,

816)

(99,

685,

512)

(109

,195

,352

)

(134

,979

,482

)

(150

,907

,094

)

(162

,951

,126

)

(170

,824

,565

)

(190

,021

,906

)

(177

,493

,867

)

B

usin

ess-

Type

Act

iviti

es63

2,67

4

392,

939

379,

683

(5

92,0

87)

(35,

946)

81,1

88

(28,

002)

(2

92,7

67)

(5

85,9

93)

(15,

145)

Tota

l Prim

ary

Gov

ernm

ent N

et (E

xpen

se)/R

even

ue(8

0,16

2,81

7)$

(92,

817,

877)

$

(99,

305,

829)

$

(109

,787

,439

)$

(135

,015

,428

)$

(150

,825

,906

)$

(162

,979

,128

)$

(171

,117

,332

)$

(190

,607

,899

)$

(177

,509

,012

)$

105

Tabl

e 3

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

GEN

ERAL

REV

ENU

ES A

ND

TO

TAL

CH

ANG

E IN

NET

PO

SITI

ON

FOR

FIS

CAL

YEA

RS

END

ED J

UN

E 30

, 200

5 TH

RO

UG

H 2

014

(AC

CR

UAL

BAS

IS)

2005

2006

2007

2008

2009

2010

2010

2012

2013

2014

Net

(Exp

ense

) Rev

enue

:G

over

nmen

tal A

ctiv

ities

(80,

795,

491)

$

(93,

210,

816)

$ (9

9,68

5,51

2)$

(1

09,1

95,3

52)

$

(134

,979

,482

)$

(150

,907

,094

)$

(162

,951

,126

)$

(170

,824

,565

)$

(190

,021

,906

)$

(177

,493

,867

)$

Busi

ness

-Typ

e Ac

tiviti

es63

2,67

4

39

2,93

9

379,

683

(592

,087

)

(3

5,94

6)

81

,188

(2

8,00

2)

(2

92,7

67)

(585

,993

)

(1

5,14

5)

Tota

l Prim

ary

Gov

ernm

ent

Net

(Exp

ense

) Rev

enue

(80,

162,

817)

(92,

817,

877)

(9

9,30

5,82

9)

(1

09,7

87,4

39)

(135

,015

,428

)

(150

,825

,906

)

(162

,979

,128

)

(171

,117

,332

)

(190

,607

,899

)

(177

,509

,012

)

Gen

eral

Rev

enue

s an

d O

ther

Cha

nges

in N

et P

ositi

onG

over

nmen

tal A

ctiv

ities

:Ta

xes

Prop

erty

Tax

es L

evie

d fo

r Gen

eral

Pur

pose

s55

,915

,993

62,4

13,2

13

71

,253

,115

56

,922

,311

62

,217

,193

69,8

08,6

14

70

,625

,051

73,7

49,4

62

80

,052

,909

83,7

84,5

21

Prop

erty

Tax

es L

evie

d fo

r Deb

t Ser

vice

s23

,484

,103

26,5

73,1

34

28

,766

,661

30

,693

,012

32

,356

,196

46,5

08,9

54

44

,457

,617

42,2

74,5

86

45

,620

,780

50,9

79,0

99

Unr

estri

cted

Gra

nts

and

Con

tribu

tions

9,57

2,24

7

9,56

5,94

8

9,

817,

979

39

,027

,792

47

,975

,134

42,2

05,8

59

46

,990

,976

49,7

24,0

92

51

,422

,890

50,6

70,5

89

Inve

stm

ent E

arni

ngs

1,81

3,58

0

5,23

4,20

2

4,

849,

510

3,

083,

727

1,

238,

208

91

7,68

8

59

8,90

9

39

4,00

1

2,

650,

981

60

0,88

6

In

terg

over

nmen

tal

529,

381

Mis

cella

neou

s35

,289

478,

088

8,

596

7,

512

24

1,48

2

16

4,44

3

26

9,40

6

12

3,29

8

2,

200,

928

2,

225,

996

In

sura

nce

Proc

eeds

14,7

50

Tran

sfer

s(3

6,77

6)

23

,261

(1

05,6

34)

(43,

606)

(51,

533)

(1,1

71,9

43)

(4

03,0

01)

(70,

521)

147,

187

Tota

l Gov

ernm

enta

l Act

iviti

es90

,821

,212

104,

227,

809

11

5,24

8,50

3

129,

628,

720

143,

984,

607

159,

554,

025

161,

770,

016

165,

877,

188

181,

877,

967

188,

408,

278

Bus

ines

s-Ty

pe A

ctiv

ities

Unr

estri

cted

Gra

nts

and

Con

tribu

tions

8,55

7

Inve

stm

ent E

arni

ngs

60,7

82

13

2,42

3

168,

919

138,

830

24,3

42

12,4

32

16,3

86

12,8

54

25,3

71

27,8

71

Mis

cella

neou

s64

,986

14,5

98

17

,319

25

,486

20

,057

55

,282

14

,025

60

,572

42

0,04

1

G

ain

on S

ale

of C

apita

l Ass

ets

16,9

65

2,85

8

Tran

sfer

s36

,776

(23,

261)

25

,034

43

,606

51

,533

1,

171,

943

40

3,00

1

70

,521

(1

47,1

87)

Tota

l Bus

ines

s-Ty

pe A

ctiv

ities

125,

768

183,

797

16

2,97

7

18

9,35

0

67

,948

84

,022

1,

252,

168

44

6,84

5

15

9,32

2

30

0,72

5

Tota

l Prim

ary

Gov

ernm

ent

90,9

46,9

80

10

4,41

1,60

6

115,

411,

480

12

9,81

8,07

0

14

4,05

2,55

5

15

9,63

8,04

7

16

3,02

2,18

4

16

6,32

4,03

3

18

2,03

7,28

9

18

8,70

9,00

3

Cha

nge

in N

et P

ositi

onG

over

nmen

tal A

ctiv

ities

10,0

25,7

21

11

,016

,993

15,5

62,9

91

20,4

33,3

68

9,00

5,12

5

8,64

6,92

1

(1,1

81,1

10)

(4

,947

,377

)

(8,1

43,9

39)

10

,914

,411

Bu

sine

ss-T

ype

Activ

ities

758,

442

576,

736

54

2,66

0

(4

02,7

37)

32,0

02

165,

210

1,22

4,16

6

154,

078

(426

,671

)

28

5,58

0

Tota

l Prim

ary

Gov

ernm

ent

10,7

84,1

63$

11

,593

,729

$

16,1

05,6

51$

20

,030

,631

$

9,

037,

127

$

8,

812,

131

$

43

,056

$

(4

,793

,299

)$

(8,5

70,6

10)

$

11

,199

,991

$

106

Tabl

e 4

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

FUN

D B

ALAN

CES

OF

GO

VER

NM

ENTA

L FU

ND

S

LAST

TEN

FIS

CAL

YEA

RS

(MO

DIF

IED

AC

CR

UAL

BAS

IS)

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Gen

eral

Fun

dU

nres

erve

d10

,882

,091

$

12,5

64,5

66$

14

,962

,096

$

18,5

77,8

08$

20

,390

,382

$

22,6

94,4

66$

-

$

-$

-

$

-$

Tota

l Gen

eral

Fun

d10

,882

,091

12,5

64,5

66

14

,962

,096

18,5

77,8

08

20

,390

,382

22,6

94,4

66

-

- -

-

Gen

eral

Fun

d*N

onsp

enda

ble

N/A

N/A

N/A

N/A

N/A

N/A

110,

666

60,0

93

Res

trict

edN

/AN

/AN

/AN

/AN

/AN

/AC

omm

itted

N/A

N/A

N/A

N/A

N/A

N/A

13,7

91,0

31

13

,933

,189

Ass

igne

dN

/AN

/AN

/AN

/AN

/AN

/A57

7,99

4

54

7,81

4

U

nass

igne

dN

/AN

/AN

/AN

/AN

/AN

/A12

,639

,592

15,6

82,1

65

33

,673

,599

38

,308

,823

Tota

l Gen

eral

Fun

d*-

- -

- -

- 27

,008

,617

30,1

63,1

68

33

,784

,265

38

,368

,916

All O

ther

Gov

ernm

enta

l Fun

dsR

eser

ved

for D

ebt S

ervi

ce6,

670,

676

8,

833,

380

10,9

93,7

34

7,

744,

035

11

,334

,776

17,8

34,3

67

R

eser

ved

for C

apita

l Pro

ject

s69

,406

,117

76,4

18,8

72

37

,458

,292

31,0

08,2

72

92

,354

,286

45,0

39,7

78

Tota

l All

Oth

er G

over

nmen

tal F

unds

76,0

76,7

93

85

,252

,252

48,4

52,0

26

38

,752

,307

103,

689,

062

62

,874

,145

- -

- -

All O

ther

Gov

ernm

enta

l Fun

ds*

Res

trict

edN

/AN

/AN

/AN

/AN

/AN

/A77

,413

,217

97,9

23,7

41

13

4,50

1,22

4

11

7,09

0,96

2

C

omm

itted

N/A

N/A

N/A

N/A

N/A

N/A

Ass

igne

dN

/AN

/AN

/AN

/AN

/AN

/AU

nass

igne

dN

/AN

/AN

/AN

/AN

/AN

/A

Tota

l All

Oth

er G

over

nmen

tal F

unds

*-

$

-$

-

$

-$

-

$

-$

77

,413

,217

$

97,9

23,7

41$

13

4,50

1,22

4$

11

7,09

0,96

2$

Not

es:

* Th

e fu

nd b

alan

ces

for t

he G

ener

al F

und

and

all o

ther

Gov

ernm

enta

l Fun

ds fr

om F

Y201

1 an

d la

ter a

re re

porte

d ba

sed

on th

e ne

w re

quire

men

ts u

nder

GA

SB

54.

The

fund

bal

ance

s pr

ior t

o 20

11 a

re n

ot re

porte

d un

der G

AS

B 5

4.

107

Tabl

e 5

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

GO

VER

NM

ENTA

L FU

ND

S R

EVEN

UES

LAST

TEN

FIS

CAL

YEA

RS

(MO

DIF

IED

AC

CR

UAL

BAS

IS)

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Sour

ces

Fede

ral S

ourc

esFe

dera

l Gra

nts

8,83

3,94

6$

10,5

31,3

19$

10

,407

,124

$

9,59

4,09

0$

9,68

8,93

8$

20,9

85,7

55$

21

,114

,771

$

13,4

29,0

40$

13

,260

,225

$

17,4

68,0

28$

Tota

l Fed

eral

Sou

rces

8,83

3,94

6

10,5

31,3

19

10,4

07,1

24

9,

594,

090

9,

688,

938

20

,985

,755

21,1

14,7

71

13

,429

,040

13,2

60,2

25

17

,468

,028

Stat

e So

urce

s:St

ate

Educ

atio

n Fi

nanc

e Pr

ogra

m57

,918

,931

71

,851

,005

78

,077

,770

115,

629,

221

123,

427,

895

113,

629,

087

113,

166,

514

121,

936,

223

130,

792,

786

135,

775,

297

Publ

ic E

duca

tion

Cap

ital O

utla

y1,

089,

646

30

4,29

5

35

0,92

6

93

,139

45

8,46

0

25

5,00

0

56

,479

St

ate

Gra

nts

and

Oth

er20

,844

,029

17

,016

,646

17

,807

,294

18,3

92,6

53

19

,807

,515

18,4

08,2

71

17

,502

,295

21,0

11,1

89

26

,405

,989

23,1

16,4

84

Tota

l Sta

te S

ourc

es79

,852

,606

89

,171

,946

96

,235

,990

134,

115,

013

143,

693,

870

132,

292,

358

130,

725,

288

142,

947,

412

157,

198,

775

158,

891,

781

Loca

l Sou

rces

:Ad

Val

orem

Tax

es79

,400

,096

88

,986

,347

10

0,01

9,77

6

87

,615

,323

94,5

73,3

89

11

6,31

7,56

8

11

7,13

3,80

7

11

3,07

3,88

7

12

0,96

4,92

9

13

0,71

4,23

6

In

tere

st a

nd O

ther

Inco

me

1,81

3,17

2

4,86

5,26

4

4,84

9,51

0

3,08

0,62

6

1,22

9,13

8

1,04

7,70

9

598,

909

2,47

6,28

7

2,63

2,63

5

592,

701

Oth

er R

even

ues

2,64

5,99

3

4,06

8,11

3

3,57

2,19

4

4,07

3,53

2

4,62

3,45

2

4,47

9,46

8

5,58

8,73

7

8,77

3,17

1

8,97

9,58

9

8,44

9,16

7

Tota

l Loc

al S

ourc

es83

,859

,261

97

,919

,724

10

8,44

1,48

0

94

,769

,481

100,

425,

979

121,

844,

745

123,

321,

453

124,

323,

345

132,

577,

153

139,

756,

104

Tota

l Rev

enue

s17

2,54

5,81

3$

197,

622,

989

$ 21

5,08

4,59

4$

238,

478,

584

$ 25

3,80

8,78

7$

275,

122,

858

$ 27

5,16

1,51

2$

280,

699,

797

$ 30

3,03

6,15

3$

316,

115,

913

$

108

Tabl

e 6

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

GO

VER

NM

ENTA

L FU

ND

S EX

PEN

DIT

UR

ES A

ND

DEB

T SE

RVI

CE

RA

TIO

LAST

TEN

FIS

CA

L YE

AR

S

(MO

DIF

IED

AC

CR

UA

L B

ASI

S)

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Expe

nditu

res

Cur

rent

:In

stru

ctio

n94

,525

,681

$

103,

487,

248

$

113,

544,

345

$

126,

037,

491

$

136,

958,

681

$

141,

643,

004

$

151,

761,

285

$

141,

282,

551

$

150,

941,

022

$

156,

617,

482

$

Sup

port

Ser

vice

s48

,736

,788

57,2

25,9

10

63

,560

,757

71,9

68,9

06

83

,722

,825

88,1

23,0

72

76

,788

,344

96,5

30,3

60

10

4,49

9,93

1

10

6,49

7,34

9

C

omm

unity

Ser

vice

s1,

281,

123

1,

480,

650

1,

501,

926

1,

696,

303

1,

729,

204

1,

684,

666

1,

640,

010

1,

387,

105

1,

534,

120

1,

189,

961

C

apita

l Add

ition

s54

,814

,869

106,

701,

020

114,

830,

272

161,

396,

202

73,1

63,8

14

64

,224

,397

126,

076,

957

104,

761,

220

28,8

02,8

38

21

,254

,322

Deb

t Ser

vice

:P

rinci

pal R

etire

men

t16

,525

,000

16,6

20,0

00

16

,090

,000

22,4

00,0

00

15

,915

,000

24,4

80,0

00

29

,605

,000

27,7

54,2

43

56

,500

,000

29,3

05,0

00

In

tere

st a

nd F

isca

l Cha

rges

5,65

2,22

8

8,51

8,14

6

11,2

19,2

21

12

,111

,876

13,3

81,2

45

15

,683

,546

28,1

10,2

98

23

,079

,215

26,1

28,1

27

22

,775

,177

Inte

rgov

ernm

enta

l22

,116

,868

470,

232

529,

381

486,

831

972,

168

425,

297

1,01

1,14

0

829,

891

1,20

0,15

4

1,39

1,39

3

Tota

l Exp

endi

ture

s22

4,02

9,77

4$

25

3,51

2,22

9$

29

4,35

8,88

1$

29

0,65

7,55

6$

27

4,33

4,69

9$

34

0,56

0,59

6$

37

6,64

3,86

7$

33

3,30

9,75

3$

36

9,60

6,19

2$

33

9,03

0,68

4$

Deb

t Ser

vice

as

a Pe

rcen

tage

of

Non

-Cap

ital E

xpen

ditu

res

13.1

1%17

.12%

15.2

1%26

.70%

14.5

6%14

.53%

23.0

3%22

.24%

24.2

5%16

.39%

109

Tabl

e 7

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

OTH

ER F

INAN

CIN

G S

OU

RC

ES A

ND

USE

S AN

DN

ET C

HAN

GE

IN F

UN

D B

ALAN

CES

, GO

VER

NM

ENTA

L FU

ND

S

LAST

TEN

FIS

CAL

YEA

RS

(MO

DIF

IED

AC

CR

UAL

BAS

IS)

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Exce

ss o

f Rev

enue

s O

ver

(Und

er) E

xpen

ditu

res

(29,

778,

022)

$

(5

5,88

9,24

0)$

(79,

274,

287)

$

(5

2,17

8,97

2)$

(20,

181,

094)

$

(6

5,01

0,58

8)$

(1

01,4

82,3

55)

$

(52,

609,

956)

$

(6

6,57

0,03

9)$

(2

2,91

4,77

1)$

Oth

er F

inan

cing

Sou

rces

(Use

s)G

ener

al L

ong-

Term

Deb

t Iss

ued

70,8

45,0

00

63,9

00,0

00

43,5

00,0

00

46

,125

,000

78

,500

,000

27

,795

,000

111,

885,

000

70

,000

,000

10

6,83

6,54

6

11

,396

,124

Prem

ium

on

Bond

s So

ld4,

570,

885

2,88

3,95

0

1,

348,

330

1,07

5,59

9

10

,673

,776

33

6,48

8

17

,203

,709

6,

665,

916

Cap

ital L

ease

sSa

le o

f Cap

ital A

sset

s17

,380

2,

594

45

,849

Proc

eeds

from

Lon

g-Te

rm N

otes

149,

212

Pr

ocee

ds o

f Ref

undi

ng D

ebt

83,2

60,0

00

Paym

ents

to R

efun

ded

Deb

t Esc

row

Age

nts

(89,

300,

000)

Pr

ocee

ds o

f Ref

unde

d D

ebt (

Net

)(6

19,1

47)

Tran

sfer

s in

7,93

1,76

1

4,

655,

749

3,59

7,11

6

3,

882,

704

3,27

6,67

2

3,

995,

775

3,

142,

632

4,30

5,72

0

9,

183,

514

6,

439,

855

Tr

ansf

ers

out

(7,9

83,9

71)

(4

,692

,525

)

(3,5

73,8

55)

(4

,988

,338

)

(4,9

00,8

78)

(5

,627

,508

)

(6

,004

,975

)

(6

,314

,121

)

(9,2

54,0

35)

(7

,792

,668

)

Tota

l Oth

er F

inan

cing

Sou

rces

75,3

63,6

75

66,7

47,1

74

44,8

71,5

91

46

,094

,965

86

,930

,423

26

,499

,755

120,

335,

578

74

,674

,895

10

6,76

8,61

9

10

,089

,160

Net

Cha

nge

in F

und

Bal

ance

s45

,585

,653

$

10

,857

,934

$

(3

4,40

2,69

6)$

(6,0

84,0

07)

$

66

,749

,329

$

(3

8,51

0,83

3)$

18

,853

,223

$

22

,064

,939

$

40

,198

,580

$

(1

2,82

5,61

1)$

110

Table 8


ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS

Fiscal Assessed Value Actual Value TotalYear Real Personal Real Personal Direct

Ended Property Property Total Property Property Total Tax Rate

2005 224,885,740$ 117,010,080$ 341,895,820$ 4,911,904,249$ 1,449,890,591$ 6,361,794,840$ 268.0 2006 276,241,440$ 111,100,683$ 387,342,123$ 6,033,604,011$ 1,331,738,670$ 7,365,342,681$ 259.0 2007 304,461,320$ 116,808,272$ 421,269,592$ 6,583,406,000$ 1,440,390,364$ 8,023,796,364$ 273.5 2008 326,116,970$ 130,611,873$ 456,728,843$ 7,067,735,823$ 1,702,996,964$ 8,770,732,787$ 288.9 2009 350,978,960$ 128,439,222$ 479,418,182$ 7,584,610,153$ 1,646,479,883$ 9,231,090,036$ 301.3 2010 394,760,080$ 126,619,972$ 521,380,052$ 8,567,754,735$ 1,609,850,471$ 10,177,605,206$ 342.3 2011 400,814,700$ 117,675,076$ 518,489,776$ 8,739,478,082$ 1,454,335,889$ 10,193,813,971$ 343.3 2012 406,302,990$ 118,186,867$ 524,489,857$ 8,882,531,052$ 1,480,507,521$ 10,363,038,573$ 349.4 2013 409,508,640$ 128,883,188$ 538,391,828$ 8,967,744,550$ 1,644,392,695$ 10,612,137,245$ 367.5 2014 414,201,660$ 135,129,099$ 549,330,759$ 9,069,862,050$ 1,736,060,994$ 10,805,923,044$ 385.5

Source: Richland County Assessor's Office and Richland County Auditor's Office

111

Table 9


DIRECT AND OVERLAPPING PROPERTY TAX RATES


(rate per $1,000 of assessed value)

Overlapping Rates ªDistrict Direct Rates Recreation

Richland District of East Richland Richland-Fiscal General Capital School Richland Richland Public Service LexingtonYear Purposes Purposes Total District 2 County County District Riverbanks Park

2005 199.7 68.3 268.0 268.0 80.0 11.2 3.2 2.102006 190.7 68.3 259.0 259.0 78.0 12.0 6.0 2.102007 205.2 68.3 273.5 273.5 76.4 12.3 8.0 2.102008 220.6 68.3 288.9 288.9 77.9 12.4 8.0 2.102009 233.0 68.3 301.3 301.3 81.1 13.6 8.0 2.102010 250.3 92 342.3 342.3 78.7 13.2 4.0 2.002011 258.3 85 343.3 343.3 79.7 13.4 4.0 2.002012 269.4 80 349.4 349.4 81.6 13.7 4.0 2.002013 282.5 85 367.5 367.5 84.2 14.1 4.0 2.002014 291.5 94 385.5 385.5 86.5 14.4 4.0 2.10

Source: County Auditor's Office

Note: ª Includes levies for operating and debt service costs.

112

Tabl

e 10

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

PRIN

CIP

AL P

RO

PER

TY T

AXPA

YER

S

CU

RR

ENT

YEAR

AN

D N

INE

YEAR

S AG

O

2014

2005

Taxa

ble

Perc

enta

ge o

fTa

xabl

ePe

rcen

tage

of

Asse

ssed

Tota

l Tax

able

Asse

ssed

Tota

l Tax

able

Taxp

ayer

Ran

kVa

lue

Valu

eR

ank

Valu

eVa

lue

Sout

h C

arol

ina

Elec

tric

& G

as1

16,1

98,6

40$

2.

95%

111

,119

,400

$

2.87

%Bl

ue C

ross

- Bl

ue S

hiel

d2

8,37

3,87

0

1.

52%

26,

015,

861

1.55

%Bo

se C

orpo

ratio

n3

3,18

5,08

0

0.

58%

44,

261,

736

1.10

%JT

EKT

Nor

th A

mer

ica

Cor

p4

2,85

2,87

0

0.

52%

Cen

tury

Rea

lty, L

LC5

2,18

4,88

0

0.

40%

92,

199,

380

0.57

%F

N M

anuf

actu

ring,

Inc.

62,

132,

620

0.39

%Kr

oger

Co

71,

973,

090

0.36

%Be

llsou

th T

elec

om, I

nc.

81,

969,

970

0.36

%5

3,33

8,21

0

0.

86%

Fairf

ield

Ele

ctric

Co-

op In

c9

1,85

7,23

0

0.

34%

IBM

Cre

dit,

LLC

101,

719,

510

0.31

%Si

emen

s D

iese

l Sys

tem

s Te

ch**

34,

462,

753

1.15

%Ko

yo C

orpo

ratio

n of

USA

62,

953,

057

0.76

%C

BL/C

olum

bia

Plac

e, L

LC7

2,78

2,28

0

0.

72%

AMC

OR

Pet

Pac

kagi

ng U

SA In

c8

2,60

8,45

6

0.

67%

Shak

espe

are

Com

pany

, LLC

101,

592,

100

0.41

%

Tota

l42

,447

,760

$

7.73

%41

,333

,233

$

10.6

6%

Sour

ce:

Cou

nty

Trea

sure

r's O

ffice

** F

ee a

gree

men

t red

uced

taxe

s ow

ed

113

Table 11


PROPERTY TAX LEVIES AND COLLECTIONS


Collected Within theFiscal Year of the Levy Total Collections to Date

Taxes Levied CollectionsFiscal for the Percentage in Subsequent Percentage Year Fiscal Year Amount of Levy Year Amount of Levy

2005 68,276,595$ 64,323,284$ 94.21% 941,271$ 65,264,555$ 95.59%2006 74,032,322$ 68,541,298$ 92.58% 1,291,604$ 69,832,902$ 94.33%2007 86,444,520$ 79,205,581$ 91.63% 1,797,900$ 81,003,481$ 93.71%2008 100,754,383$ 96,475,444$ 95.75% 1,739,619$ 98,215,063$ 97.48%2009 106,546,036$ 101,791,213$ 95.54% 2,431,781$ 104,222,994$ 97.82%2010 115,207,588$ 109,155,231$ 94.75% 4,735,906$ 113,891,137$ 98.86%2011 117,100,628$ 110,202,275$ 94.11% 4,435,215$ 114,637,490$ 97.90%2012 119,840,092$ 113,972,278$ 95.10% 3,112,799$ 117,085,077$ 97.70%2013 126,061,667$ 119,395,021$ 94.71% 2,499,762$ 121,894,783$ 96.69%2014 131,695,063$ 126,674,179$ 96.19% -$ 126,674,179$ 96.19%

Source : County Treasurer

114

Table 12


RATIOS OF DEBT OUTSTANDING


Percentage ofGeneral Unamortized Total Debt Actual Taxable Percentage

Fiscal Obligation Capital Bond Primary Value of of PersonalYear Bonds Leases Premiums Government Property Income Per Capita

2005 186,125,000$ 2,880,000$ 4,469,310$ 193,474,310$ 57% 6% 551$ 2006 233,405,000$ 1,930,000$ 6,962,702$ 242,297,702$ 63% 5% 678$ 2007 260,815,000$ 950,000$ 7,792,284$ 269,557,284$ 64% 5% 740$ 2008 284,540,000$ 390,000$ 8,185,600$ 293,115,600$ 64% 5% 791$ 2009 345,875,000$ -$ 17,945,742$ 363,820,742$ 76% 4% 964$ 2010 351,190,000$ -$ 16,090,866$ 367,280,866$ 70% N/A 955$ 2011 427,430,000$ -$ 30,621,933$ 458,051,933$ 88% 3% 1,179$ 2012 471,630,000$ -$ 34,413,572$ 506,043,572$ 96% 3% 1,290$ 2013 509,435,000$ -$ 46,289,512$ 555,724,512$ 103% 3% 1,416$ 2014 489,560,000$ -$ 40,695,255$ 530,255,255$ 97% 3% 1,325$

Source: District Records

Notes: See Table 8 for property value dataSee Table 14 for Personal Income and Per Capita Income DataDetails regarding the District's outstanding debt can be found in the notes to the financial statements

Total Debt Outstanding

115

Tabl

e 13

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

LEG

AL

DEB

T M

AR

GIN

LAST

TEN

FIS

CA

L YE

AR

S

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Deb

t Lim

it27

,466

,000

$

31,2

34,5

31$

33

,701

,567

$

36,5

38,3

07$

38

,353

,462

$

41,7

10,4

04$

41

,479

,182

$

41,9

59,1

89$

43

,071

,346

$

43,9

46,4

61$

Tota

l Net

Deb

t App

licab

le to

Lim

it14

,915

,000

13,5

15,0

00

16

,515

,000

19

,500

,000

22,0

00,0

00

19

,560

,000

17,3

20,0

00

21

,260

,000

28,9

10,0

00

23

,910

,000

Lega

l Deb

t Mar

gin

12,5

51,0

00$

17

,719

,531

$

17,1

86,5

67$

17

,038

,307

$

16,3

53,4

62$

22

,150

,404

$

24,1

59,1

82$

20

,699

,189

$

14,1

61,3

46$

20

,036

,461

$

Tota

l Net

Deb

t App

licab

le to

Lim

itas

a P

erce

ntag

e of

Deb

t Lim

it54

.30%

43.2

7%49

.00%

53.3

7%57

.36%

46.8

9%41

.76%

50.6

7%67

.12%

54.4

1%

Tota

l Ass

esse

d V

alue

549,

330,

759

$

Deb

t Lim

it (8

% o

f Tot

al A

sses

sed

Val

ue)

43,9

46,4

61

Am

ount

of D

ebt A

pplic

able

to D

ebt L

imit:

Tota

l Bon

ded

Deb

t53

0,25

5,25

5

Le

ss:

Deb

t Iss

ued

Thro

ugh

Ref

eren

dum

(506

,345

,255

)

Tota

l Net

Deb

t App

licab

le to

Deb

t Lim

it23

,910

,000

Lega

l Deb

t Mar

gin

20,0

36,4

61$

Not

es:

The

Con

stitu

tion

of th

e S

tate

of S

outh

Car

olin

a al

low

s fo

r sch

ool d

istri

cts

to is

sue

up to

8%

of t

he a

sses

sed

valu

e of

all

prop

ertie

s in

the

Sch

ool D

istri

ct.

Lega

l Deb

t Mar

gin

Cal

cula

tion:

116

Table 14


DIRECT AND OVERLAPPING DEBT

JUNE 30, 2014

Percentage Debt Applicable District Share

Outstanding to District of Debt

Overlapping Debt

City of Columbia 35,680,000$ 7.91% 2,822,288$ Richland County 91,705,000 35.41% 32,472,741 Recreation District 44,125,000 48.25% 21,290,313 Richland/Lexington Riverbanks Park District 36,100,000 35.41% 12,783,010 East Richland County Public Sewer District 18,351,256 76.39% 14,018,524 Richland/Lexington Airport District 8,570,000 35.41% 3,034,637

Total Overlapping Debt 234,531,256 86,421,512

Direct

Richland School District Two 530,255,255 100.00% 530,255,255Total Direct Debt 530,255,255 530,255,255

Total Direct and Overlapping Debt $ 764,786,511 $ 616,676,767

Source: Richland County Treasurer's Office & Richland County Auditor

Note: The percentage of overlapping debt applicable to the School District is estimated using the taxable assessed property values. The County Auditor calculates the applicable percentages based on the assessed values of each overlapping entity.

117

Table 15


DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS

CountyCalendar Per Capita County Personal Unemployment

Year Population (a) Income (b) Income (b) Rate (c)

2005 351,143 32,410$ 11,311,139$ 6.00%2006 357,575 34,529$ 12,330,054$ 5.80%2007 364,125 35,536$ 13,010,220$ 5.20%2008 370,795 36,269$ 13,556,789$ 6.10%2009 377,587 35,437$ 13,474,710$ 9.40%2010 384,504 35,559$ 13,716,601$ 9.70%2011 388,403 37,118$ 14,452,789$ 9.30%2012 392,342 38,195$ 15,042,310$ 8.40%2013 396,321 38,815$ 15,113,474$ 7.20%2014 400,340 39,941$ 15,729,944$ 6.60%

(a) 2000 to 2010, US Census Bureau; 2011-2014 estimated(b) US Bureau of Economic Analysis, US Department of Commerce(c) State Agency for Workforce Innovation, Office of Workforce Information Services, Labor Market Statistics; 2014 data for September 2014

118

Table 16


PRINCIPAL EMPLOYERS

CURRENT YEAR AND 2006

2014 2006 *Percentage Percentage

of Total County of Total CountyEmployer Employees Rank Employment Employees Rank Employment

Palmetto Health Alliance, Inc. 9,000-10,000 1 2.71% 9,000-10,000 1 5.21%Blue Cross-Blue Shield of SC 6,000-7,000 2 1.85% 6,000-7,000 2 3.86%University of South Carolina 5,000-6,000 3 1.28% 4,000-5,000 3 2.52%Richland School District One 4,000-5,000 4 1.28% 4,000-5,000 4 2.42%Richland School District Two 3,000-4,000 5 1.00% 2,000-3,000 7 1.58%AT&T 2,000-3,000 6 1.00% 2,000-3,000 6 1.60%City of Columbia 2,000-3,000 7 0.70%Humana/Tricare 2,000-3,000 8 0.70% 1,000-2,000 10 1.01%Providence Hospitals 2,000-3,000 9 0.70% 2,000-3,000 8 1.18%Palmetto GBA 1,000-2,000 10 0.35% 1,000-2,000 9 1.18%Department of Defense 3,000-4,000 5 2.15%South Carolina Electric and Gas 2,000-3,000

Total 36,000-46,000 17,000-24,000

Source: Central South Carolina Alliance, SC Employment Security Commission, Central Midlands Council of GovernmentsInformation on Principal Employers was only available in the form of range of employees.

* Information was not available for years prior to 2006.

119

Tabl

e 17

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

F

ULL

-TIM

E EQ

UIV

ALE

NT

SCH

OO

L D

ISTR

ICT

EMPL

OYE

ES B

Y TY

PE

L

AST

TEN

FIS

CA

L YE

AR

S

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Inst

ruct

ion

Teac

hing

Fac

ulty

1,54

1

1,

620

1,75

7

1,

885

1,94

2

1,

924

1,

809

1,

851

1,

892

1,

942

O

ther

417

45

7

465

47

4

516

51

6

50

5

50

6

50

6

52

0

Tota

l Ins

truc

tion

1,95

8

2,

077

2,22

2

2,

359

2,45

8

2,

440

2,

314

2,

357

2,

398

2,

462

Supp

ort S

ervi

ces

Prin

cipa

ls23

26

27

28

28

31

30

33

36

36

Ass

ista

nt P

rinci

pals

46

47

52

61

67

69

70

75

80

83

O

ther

Adm

inis

tratio

n &

Sup

port

641

67

4

733

79

2

804

80

2

85

0

87

2

91

0

92

0

Tota

l Sup

port

Ser

vice

s71

0

747

81

2

881

89

9

902

950

980

1,02

6

1,03

9

Tota

l2,

668

2,82

4

3,

034

3,24

0

3,

357

3,34

2

3,26

4

3,33

7

3,42

4

3,50

1

Sour

ce:

Dis

trict

Rec

ords

Not

e: F

ull-t

ime

inst

ruct

iona

l em

ploy

ees

of th

e D

istri

ct a

re e

mpl

oyed

for a

ll 18

0 sc

hedu

led

scho

ol d

ays,

at s

even

hou

rs p

er d

ay o

r 1,2

60 p

er y

ear.

Tot

al w

ork

hour

s by

inst

ruct

iona

l em

ploy

ees

are

divi

ded

by 1

,260

to o

btai

n fu

ll-tim

e em

ploy

men

t. F

ull-t

ime

equi

vale

nt e

mpl

oym

ent f

or a

ll ot

her p

ositi

ons

is d

eter

min

ed b

ased

on

1,82

0 ho

urs

per

year

(52

wee

ks ti

mes

five

day

s tim

es s

even

hou

rs).

120

Tabl

e 18

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

OPE

RA

TIN

G S

TATI

STIC

S

LAST

TEN

FIS

CA

L YE

AR

S

Perc

enta

geof

Stu

dent

sM

odifi

ed A

ccru

al B

asis

of A

ccou

ntin

gA

ccru

al B

asis

of A

ccou

ntin

gR

ecei

ving

Fisc

alFr

ee o

rYe

arO

pera

ting

Cos

t Per

Perc

enta

geC

ost P

erPe

rcen

tage

Teac

hing

Red

uced

-Pric

eEn

ded

Enro

llmen

tEx

pend

iture

sPu

pil

Cha

nge

Expe

nses

Pupi

lC

hang

eSt

aff

Mea

ls

2005

19,8

29

14

4,95

4,52

1$

7,

310

$

3.

25%

149,

389,

981

$

7,53

4$

3.

00%

1,35

1

38

%20

0620

,913

162,

664,

040

$

7,77

8$

6.40

%16

9,22

9,97

3$

8,

092

$

7.40

%1,

421

38%

2007

22,0

25

17

9,13

6,40

9$

8,

133

$

4.

56%

186,

369,

277

$

8,46

2$

4.

57%

1,54

5

40

%20

0823

,200

200,

189,

531

$

8,62

9$

6.10

%21

7,93

9,95

8$

8,

993

$

8.90

%1,

673

39%

2009

23,9

01

21

6,95

5,25

6$

9,

077

$

5.

20%

245,

113,

944

$

10,2

55$

9.20

%1,

703

43%

2010

24,2

45

22

4,32

3,40

4$

9,

252

$

1.

93%

266,

868,

582

$

11,0

07$

8.02

%1,

704

43%

2011

24,9

65

22

2,47

7,45

9$

8,

912

$

-3

.68%

275,

129,

529

$

11,0

21$

0.12

%1,

800

45%

2012

25,9

88

24

0,02

9,90

9$

9,

236

$

3.

64%

285,

273,

576

$

10,9

77$

-0.3

9%1,

851

48%

2013

26,5

33

25

6,97

5,07

3$

9,

685

$

4.

86%

312,

307,

926

$

11,7

71$

7.23

%1,

892

47%

2014

26,8

77

26

4,30

4,79

2$

9,

834

$

6.

47%

305,

296,

139

$

11,3

59$

3.48

%1,

942

49%

Sour

ce:

All

info

rmat

ion

from

Sch

ool D

istri

ct re

cord

s.

Not

e: O

pera

ting

expe

nditu

res

are

tota

l exp

endi

ture

s le

ss d

ebt s

ervi

ce a

nd c

apita

l out

lays

.

* In

form

atio

n no

t ava

ilabl

e.

121

Tabl

e 19

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

SCH

OO

L B

UIL

DIN

G IN

FOR

MAT

ION

LAST

TEN

FIS

CAL

YEA

RS

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Anna

Boy

d C

DC

/Sch

ool

Squa

re F

eet

13,5

00

13,5

00

13,5

00

13,5

00

13,5

00

13,5

00

13,5

00

13,5

00

13,5

00

13,5

00

Cap

acity

(Stu

dent

s)20

0

20

0

20

0

20

0

20

0

20

0

20

0

20

0

20

0

20

0

En

rollm

ent

193

199

60

43

46

35

38

24

38

40

Beth

el-H

anbe

rry

Elem

enta

ry S

choo

lSq

uare

Fee

t12

8,36

9

12

8,36

9

12

8,36

9

12

8,36

9

12

8,36

9

12

8,36

9

12

8,36

9

12

8,36

9

12

8,36

9

12

8,36

9

C

apac

ity (S

tude

nts)

698

698

634

634

634

634

634

634

634

634

Enro

llmen

t63

1

70

6

66

6

69

7

73

3

73

5

63

3

62

8

64

8

66

8

Book

man

Roa

d El

emen

tary

Sch

ool

Squa

re F

eet

75,0

00

75,0

00

75,0

00

75,0

00

75,0

00

75,0

00

81,6

70

81,6

70

81,6

70

81,6

70

Cap

acity

(Stu

dent

s)66

0

66

0

66

0

66

0

66

0

66

0

74

0

74

0

74

0

74

0

En

rollm

ent

655

687

685

703

617

562

571

565

565

517

Blyt

hew

ood

Acad

emy

Squa

re F

eet

40,0

00

40,0

00

40,0

00

40,0

00

40,0

00

40,0

00

40,0

00

40,0

00

40,0

00

40,0

00

Cap

acity

(Stu

dent

s)15

0

15

0

15

0

15

0

15

0

15

0

15

0

15

0

15

0

15

0

En

rollm

ent

120

120

80

80

82

82

85

71

92

95

Brid

ge C

reek

Ele

men

tary

Sch

ool

Squa

re F

eet

N/A

N/A

N/A

N/A

95,1

05

95,1

05

95,1

05

95,1

05

95,1

05

95,1

05

Cap

acity

(Stu

dent

s)N

/AN

/AN

/AN

/A70

5

70

5

70

5

70

5

70

5

70

5

En

rollm

ent

N/A

N/A

N/A

N/A

443

491

602

591

597

612

Cat

awba

Tra

il El

emen

tary

Squa

re F

eet

N/A

N/A

N/A

N/A

N/A

N/A

N/A

110,

771

110,

771

110,

771

Cap

acity

(Stu

dent

s)N

/AN

/AN

/AN

/AN

/AN

/AN

/A74

7

74

7

74

7

En

rollm

ent

N/A

N/A

N/A

N/A

N/A

N/A

N/A

416

481

504

Con

der E

lem

enta

ry S

choo

lSq

uare

Fee

t75

,960

75

,960

80

,047

80

,047

80

,047

80

,047

80

,047

80

,047

80

,047

80

,047

C

apac

ity (S

tude

nts)

712

712

648

648

648

648

648

648

648

648

Enro

llmen

t60

8

62

3

62

7

67

4

69

8

66

9

69

9

70

9

76

6

80

2

Fore

st L

ake

Elem

enta

ry S

choo

lSq

uare

Fee

t76

,245

76

,245

76

,245

76

,245

76

,245

76

,246

76

,245

76

,245

76

,245

76

,245

C

apac

ity (S

tude

nts)

687

687

623

623

623

623

623

623

623

623

Enro

llmen

t53

5

58

0

56

4

59

4

58

2

55

2

60

0

60

0

64

9

61

7

Jose

ph K

eels

Ele

men

tary

Sch

ool

Squa

re F

eet

75,6

39

75,6

39

78,5

58

78,5

58

78,5

58

78,5

58

78,5

58

78,5

58

78,5

58

78,5

58

Cap

acity

(Stu

dent

s)75

2

75

2

68

8

68

8

68

8

68

8

68

8

68

8

68

8

68

8

En

rollm

ent

629

659

592

619

628

598

648

637

692

691

122

Tabl

e 19

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

SCH

OO

L B

UIL

DIN

G IN

FOR

MAT

ION

LAST

TEN

FIS

CAL

YEA

RS

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Killia

n El

emen

tary

Sch

ool

Squa

re F

eet

75,0

00

75,0

00

75,0

00

75,0

00

75,0

00

75,0

00

81,4

29

81,4

29

81,4

29

81,4

29

Cap

acity

(Stu

dent

s)66

0

66

0

66

0

66

0

66

0

66

0

74

0

74

0

74

0

74

0

En

rollm

ent

591

576

536

576

531

537

697

710

737

769

Lake

Car

olin

a El

emen

tary

Sch

ool

Squa

re F

eet

91,6

35

91,6

35

91,6

35

91,6

35

91,6

35

91,6

35

91,6

35

91,6

35

91,6

35

91,6

35

Cap

acity

(Stu

dent

s)70

5

70

5

63

7

63

7

63

7

63

7

63

7

63

7

63

7

63

7

En

rollm

ent

804

913

947

1,04

9

871

943

788

792

828

801

Lang

ford

Ele

men

tary

Squa

re F

eet

N/A

N/A

N/A

N/A

N/A

N/A

110,

771

110,

771

110,

771

110,

771

Cap

acity

(Stu

dent

s)N

/AN

/AN

/AN

/AN

/AN

/A74

7

74

7

74

7

74

7

En

rollm

ent

N/A

N/A

N/A

N/A

N/A

N/A

439

504

534

525

Lonn

ie B

. Nel

son

Elem

enta

ry S

choo

lSq

uare

Fee

t93

,261

93

,261

10

0,49

5

10

0,49

5

10

0,49

5

10

0,49

5

10

0,49

5

10

0,49

5

10

0,49

5

10

0,49

5

C

apac

ity (S

tude

nts)

672

672

664

664

664

664

608

608

608

608

Enro

llmen

t60

4

60

2

52

3

58

6

57

3

53

8

52

3

57

3

59

0

56

3

Nor

th S

prin

gs E

lem

enta

ry S

choo

lSq

uare

Fee

t79

,000

79

,000

10

1,44

8

10

1,44

8

10

1,44

8

10

1,44

8

10

1,44

8

10

1,44

8

10

1,44

8

10

1,44

8

C

apac

ity (S

tude

nts)

618

618

834

834

834

834

834

834

834

834

Enro

llmen

t76

4

80

7

78

5

76

1

71

0

72

0

74

9

71

7

71

9

74

5

Polo

Roa

d El

emen

tary

Sch

ool

Squa

re F

eet

N/A

N/A

94,8

30

94,8

30

94,8

30

94,8

30

94,8

30

94,8

30

94,8

30

94,8

30

Cap

acity

(Stu

dent

s)N

/AN

/A70

5

70

5

70

5

70

5

70

5

70

5

70

5

70

5

En

rollm

ent

N/A

N/A

521

622

697

722

771

587

619

616

Pont

iac

Elem

enta

ry S

choo

lSq

uare

Fee

t89

,296

89

,296

89

,296

89

,296

89

,296

89

,296

89

,296

89

,296

89

,296

89

,296

C

apac

ity (S

tude

nts)

860

860

796

796

796

796

796

796

796

796

Enro

llmen

t66

3

70

0

63

5

66

5

72

9

88

3

94

0

70

5

68

9

69

6

Ric

e C

reek

Ele

men

tary

Sch

ool

Squa

re F

eet

90,0

16

90,0

16

90,0

16

90,0

16

90,0

16

90,0

16

90,0

16

90,0

16

90,0

16

90,0

16

Cap

acity

(Stu

dent

s)86

0

86

0

79

6

79

6

79

6

79

6

79

6

79

6

79

6

79

6

En

rollm

ent

940

1,00

0

811

863

777

808

782

771

777

729

Rou

nd T

op E

lem

enta

ry S

choo

lSq

uare

Fee

t91

,635

91

,635

91

,635

91

,635

91

,635

91

,635

97

,360

97

,360

97

,360

97

,360

C

apac

ity (S

tude

nts)

705

705

637

637

637

637

637

637

637

637

Enro

llmen

t54

9

59

4

58

5

70

0

75

3

77

6

65

7

63

0

62

5

65

7

Sand

lapp

er E

lem

enta

ry S

choo

lSq

uare

Fee

tN

/AN

/A94

,500

94

,500

94

,500

94

,500

94

,500

94

,500

94

,830

94

,830

123

Tabl

e 19

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

SCH

OO

L B

UIL

DIN

G IN

FOR

MAT

ION

LAST

TEN

FIS

CAL

YEA

RS

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Cap

acity

(Stu

dent

s)N

/AN

/A70

5

70

5

70

5

70

5

70

5

70

5

70

5

70

5

En

rollm

ent

N/A

N/A

497

797

767

749

746

709

712

711

Win

dsor

Ele

men

tary

Sch

ool

Squa

re F

eet

87,3

56

87,3

56

87,3

56

95,5

63

95,5

63

95,5

63

95,5

63

95,5

63

98,9

73

98,9

73

Cap

acity

(Stu

dent

s)88

6

88

6

80

0

80

0

80

0

80

0

80

0

80

0

80

0

80

0

En

rollm

ent

876

849

591

613

619

647

648

636

660

688

Blyt

hew

ood

Mid

dle

Scho

olSq

uare

Fee

t12

1,00

0

12

1,00

0

12

7,30

0

12

7,30

0

12

7,30

0

12

7,30

0

12

7,30

0

12

7,30

0

12

7,30

0

12

7,30

0

C

apac

ity (S

tude

nts)

856

856

936

936

936

1,00

0

1,00

0

1,00

0

1,00

0

1,00

0

Enro

llmen

t1,

010

82

5

99

2

95

8

1,

025

1,

068

1,

091

59

0

64

6

69

9

Den

t Mid

dle

Scho

olSq

uare

Fee

t16

1,50

0

16

1,50

0

19

8,85

3

19

8,85

3

19

8,85

3

19

8,85

3

19

8,85

3

19

8,85

3

19

8,85

3

19

8,85

3

C

apac

ity (S

tude

nts)

1,15

7

1,15

7

1,25

0

1,25

0

1,25

0

1,25

0

1,25

0

1,25

0

1,25

0

1,25

0

Enro

llmen

t1,

162

1,

231

1,

201

1,

276

1,

259

1,

248

1,

282

1,

282

1,

317

1,

257

Kelly

Mill

Mid

dle

Scho

olSq

uare

Fee

t15

0,64

6

15

0,64

6

15

0,64

6

15

0,64

6

15

0,64

6

15

0,64

6

17

0,54

6

17

0,54

6

17

0,54

6

17

0,54

6

C

apac

ity (S

tude

nts)

1,05

0

1,05

0

1,00

0

1,00

0

1,00

0

1,00

0

1,12

0

1,12

0

1,12

0

1,12

0

Enro

llmen

t73

3

91

8

1,

016

95

8

99

8

1,

003

1,

339

92

1

92

5

91

7

C

FA E

nrol

lmen

tN

/AN

/A60

76

86

89

12

7

93

93

93

Long

Lea

f Mid

dle

Scho

olSq

uare

Fee

tN

/AN

/AN

/A15

0,64

6

15

0,64

6

15

0,64

6

15

0,64

6

15

0,64

6

15

0,64

6

15

0,64

6

C

apac

ity (S

tude

nts)

N/A

N/A

N/A

1,00

0

1,00

0

1,00

0

1,00

0

1,00

0

1,00

0

1,00

0

Enro

llmen

tN

/AN

/AN

/A54

4

53

8

56

5

58

8

64

5

68

3

66

5

Mul

ler R

oad

Mid

dle

Squa

re F

eet

N/A

N/A

N/A

N/A

N/A

N/A

N/A

176,

532

176,

532

176,

532

Cap

acity

(Stu

dent

s)N

/AN

/AN

/AN

/AN

/AN

/AN

/A1,

050

1,

050

1,

050

En

rollm

ent

N/A

N/A

N/A

N/A

N/A

N/A

N/A

666

698

725

CFK

Nor

th E

nrol

lmen

tN

/AN

/AN

/AN

/AN

/AN

/AN

/AN

/AN

/A96

Sum

mit

Park

way

Mid

dle

Scho

olSq

uare

Fee

t12

4,70

0

12

4,70

0

14

9,13

2

14

9,13

2

14

9,13

2

14

9,13

2

14

9,13

2

14

9,13

2

14

9,13

2

14

9,13

2

C

apac

ity (S

tude

nts)

986

986

1,25

0

1,25

0

1,25

0

1,25

0

1,25

0

1,25

0

1,25

0

1,25

0

Enro

llmen

t1,

003

1,

037

1,

169

83

5

80

3

81

8

88

9

87

8

86

0

87

7

C

FI E

nrol

lmen

t13

1

12

9

13

1

13

1

19

4

21

7

24

0

26

3

26

1

26

0

124

Tabl

e 19

RIC

HLA

ND

SC

HO

OL

DIS

TRIC

T TW

O

SCH

OO

L B

UIL

DIN

G IN

FOR

MAT

ION

LAST

TEN

FIS

CAL

YEA

RS

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

E. L

. Wrig

ht M

iddl

e Sc

hool

Squa

re F

eet

193,

142

193,

142

195,

472

195,

472

195,

472

195,

472

195,

472

211,

982

211,

982

211,

982

Cap

acity

(Stu

dent

s)1,

225

1,

225

1,

225

1,

225

1,

225

1,

225

1,

225

1,

489

1,

489

1,

489

En

rollm

ent

1,22

3

1,19

0

1,21

3

1,06

8

1,06

7

1,02

5

996

1,03

5

1,07

9

1,08

8

CFK

Enr

ollm

ent

130

119

128

193

220

240

264

264

258

265

Blyt

hew

ood

Hig

h Sc

hool

Squa

re F

eet

N/A

229,

000

299,

000

299,

000

299,

000

299,

000

299,

000

299,

000

299,

000

299,

000

Cap

acity

(Stu

dent

s)N

/A1,

700

1,

700

1,

700

1,

700

1,

700

1,

700

1,

700

1,

700

1,

700

En

rollm

ent

N/A

1,21

8

1,56

4

1,87

9

1,97

6

2,05

2

2,07

3

2,14

6

1,58

8

1,66

4

Ric

hlan

d N

orth

east

Hig

h Sc

hool

Squa

re F

eet

302,

413

302,

413

302,

413

302,

413

302,

413

302,

413

302,

413

302,

413

302,

413

302,

413

Cap

acity

(Stu

dent

s)1,

743

1,

743

1,

751

1,

751

1,

751

1,

750

1,

750

1,

750

1,

750

1,

750

En

rollm

ent

1,51

3

1,56

7

1,57

4

1,51

0

1,54

0

1,48

5

1,49

8

1,44

9

1,37

4

1,45

1

Rid

ge V

iew

Hig

h Sc

hool

Squa

re F

eet

235,

000

235,

000

238,

755

238,

755

238,

755

238,

755

238,

755

238,

755

238,

755

238,

755

Cap

acity

(Stu

dent

s)1,

703

1,

703

1,

703

1,

703

1,

703

1,

700

1,

700

1,

700

1,

700

1,

700

En

rollm

ent

2,20

5

1,62

3

1,66

5

1,78

6

1,95

4

2,00

2

1,99

5

2,04

7

1,59

1

1,52

4

Sprin

g Va

lley

Hig

h Sc

hool

Squa

re F

eet

303,

987

303,

987

303,

987

396,

607

396,

607

396,

607

458,

812

458,

812

458,

812

458,

812

Cap

acity

(Stu

dent

s)1,

710

1,

710

1,

710

2,

000

2,

000

2,

000

2,

000

2,

000

2,

000

2,

000

En

rollm

ent

1,91

0

1,90

3

1,87

9

1,91

7

1,87

7

1,98

5

2,05

1

2,13

4

1,97

3

1,94

7

Wes

twoo

d H

igh

Scho

olSq

uare

Fee

tN

/AN

/AN

/AN

/AN

/AN

/AN

/AN

/A32

8,87

4

32

8,87

4

C

apac

ity (S

tude

nts)

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

1,70

0

1,70

0

Enro

llmen

tN

/AN

/AN

/AN

/AN

/AN

/AN

/AN

/A1,

169

1,

303

Tota

lSq

uare

Fee

t2,

774,

300

3,

003,

300

3,

373,

488

3,

624,

961

3,

720,

066

3,

720,

067

3,

931,

766

4,

235,

579

4,

568,

193

4,

568,

193

C

apac

ity (S

tude

nts)

20,2

55

21,9

55

23,3

62

24,6

52

25,3

57

25,4

17

26,3

88

28,4

49

30,1

49

30,1

49

Enro

llmen

t20

,182

21

,375

22

,297

23

,773

24

,393

24

,844

26

,049

25

,988

26

,533

26

,877

Sour

ce:

Dis

tric

t Rec

ords

125

Table 20


TEACHER BASE SALARIES


StatewideMinimum Maximum Average

Fiscal Year Salary (1) Salary (1) Salary (2)

2005 29,081$ 63,262$ 42,198$ 2006 29,546$ 64,274$ 42,959$ 2007 30,317$ 65,952$ 44,336$ 2008 31,320$ 68,135$ 45,804$ 2009 32,851$ 71,466$ 47,421$ 2010 33,180$ 72,180$ 47,508$ 2011 33,813$ 73,264$ 48,458$ 2012 33,843$ 73,624$ 49,116$ 2013 35,210$ 76,598$ 48,375$ 2014 35,210$ 76,598$ 48,771$

Source: (1) District records (2) South Carolina Department of Education

126

SINGLE AUDIT SECTION

127

RICHLAND SCHOOL DISTRICT TWOSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


LEASubfund CFDA Grantor's Total

Fund Code Fed. Grantor/Pass-Through Grantor/Program Title Number Number Expenditures

U. S. Department of Education

Direct Programs:

100 Impact Aid 84.041 S041B-2010-4618 $ 380,933 275 Federal Magnet Grant/The International Baccalaureate Continuum 84.165A U165A100066 1,693,413 290 Federal Magnet Grant/Project STEAM 84.165A U165A130007 672,509 832 Small Learning Communities 84.215 S215L080665 69,318 282 Project CARE 84.215E Q215E100063 111,303 857 Gear Up 84.334A P334A080109-10 743,630 285 Race to the Top 84.416A B416A140225 63,338

3,734,444

Passed Through S. C. Department of Education:

243 Adult Education 84.002 14EA076 125,879

201 Title I 84.010 14BA076-01 2,744,763 237 Title I Support 84.010 14BM076 51,856

Total 84.010 2,796,619

203 Individuals with Disabilities Education Act 84.027 14CA076-01 4,677,797 205 Individuals with Disabilities Education Act - Preschool 84.173 14CG076-01 205,562 212 Individuals with Disabilities Education Act - Extended School Year 84.027 N/A 58,346

Total 84.027/84.173 (IDEA Cluster) 4,941,705

207 Occupational Education 84.048 14VA076 221,414

232 McKinney Vento Homeless 84.196 14FH076 83,761 224 21st Century Learning Grant 84.287 14CL076 785,045 264 Title III - Language Instruction for Limited English Proficient and Immigrant Students 84.365 14ET076 119,276 225 Math Science Partnership Grant 84.366B 14MS074-01 131,053 267 Title II Improving Teacher Quality 84.367 14BP076 251,996

9,456,748

Total U. S. Department of Education 13,191,192

U. S. Department of AgriculturePassed Through S. C. Department of Education

Non-Cash Assistance (Commodities):600 School Breakfast Program 10.553 N/A 1,679,963

600 Commodities/Food Distribution 10.555 N/A 600,888 600 School Lunch Program 10.555 N/A 5,652,821

Total 10.555 6,253,709

Passed Through S. C. Department of Social Services600 Summer Food Service Program (Dinner Program) 10.559 N/A 274,414

Total U. S. Department of Agriculture 8,208,086

OTHER FEDERAL ASSISTANCE

U. S. Department of Defense Direct Programs292 Air Force, Army and Navy ROTC 12.000 N/A 269,105

297 Department of Defense 12.556 HE1254 223,477 283 Department of Defense 12.556 HE1254 559,270

Total 12.556 782,747

Total Department of Defense 1,051,852 TOTAL FEDERAL AWARDS $ 22,451,130

Footnotes:

The accounting policies of the School District conform to accounting principles generally accepted in the United States of America applicable to governments.The Governmental Accounting Standards Board is the accepted standard-setting body for establishing governmental accounting and financial reportingprinciples. A summary of the more significant policies can be found in the notes to the financial statements of the School District's basic financial statementsfor the year ended June 30, 2014. All expenditures reported on the above Schedule of Expenditures of Federal Awards are reported on the modifiedaccrual basis of accounting as applicable to governmental funds, except for the expenditures of programs under CFDA Numbers 10.553, 10.555, 10.559 and 10.582 which are reported under the full accrual basis of accounting as applicable to enterprise funds.

132

RICHLAND SCHOOL DISTRICT TWONOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

JUNE 30, 2014

Basis of Presentation

The accompanying schedule of expenditures of federal awards includesthe federal grant activity of Richland County School District Two and ispresented on the modified accrual basis of accounting, the same basis ofaccounting used to prepare the governmental financial statements asoutlined in the Notes to the Financial Statements.

The information in this schedule is presented in accordance with therequirements of the Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.Therefore, some amounts presented in this schedule may differ fromamounts presented in, or used in the preparation of the basic financialstatements or reported in the federal financial reports.

133

RICHLAND SCHOOL DISTRICT TWOCOLUMBIA, SOUTH CAROLINA

SCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE YEAR ENDED JUNE 30, 2014

SECTION I - SUMMARY OF AUDITORS' RESULTS

1 The independent auditors' report on the financial statements expressed an unmodified opinion.

2 There were no significant deficiencies in internal control over financial reporting disclosed in the audit of the financial statements.

3 The audit did not disclose any material noncompliance matters in relation to the financial statements.

4 There were no significant deficiencies in internal control over compliance applicable to major programs.

5 The report on compliance for major programs expressed an unmodified opinion.

6 The audit disclosed no audit findings.

7 The major programs of the School District included in the audit were:

A. Child Nutrition Cluster - 10.553/10.555/10.559 B. Special Education Cluster - 84.027/84.173 C. Federal Magnet Grants - 84.165D. Gear Up - 84.334E. Title I Part A Cluster - 84.010F. 21st Century Learning Grant - 84.287G. Department of Defense - 12.556

8 The dollar threshold for Type A programs for the School District was $673,534.

9 The School District did qualify as a low-risk auditee.

SECTION II - FINANCIAL STATEMENT FINDINGS

No matters were reported.

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.

134

RICHLAND SCHOOL DISTRICT TWOCOLUMBIA, SOUTH CAROLINA

SCHEDULE OF PRIOR FINDINGS AND QUESTIONED COSTSFOR THE YEAR ENDED JUNE 30, 2014

There were no Findings or Questioned Costs reported in the prior year.

135


136

comprehensive - richland2.org...weakness in the internal control structure or significant violations...

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