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Northeastern Local School District
Popular Annual Financial Report
For Fiscal Year Ended June 30, 2021
1414 Bowman Road
Springfield, OH 45502
Phone: 937-325-7615
Website: www.nelsd.org
2021 Popular Annual Financial Report
We are proud to present the Popular Annual Financial Report for the Northeastern Local School District for the Fiscal Year ended June
30, 2021. This Popular Annual Financial Report (PAFR) is intended to present the financial status of Northeastern Local School District
(NELSD) in an easy–to-read format. We hope this helps you understand the basic financial health and the operations of our district.
We also prepare a more detailed Comprehensive Annual Financial Report (CAFR) that reports all financial operations in accordance
with General Accepted Accounting Principles (GAAP). The information presented on this page and the adjacent page are generated
from the accrual statements presented in the CAFR and includes all Funds. The remainder
of the report is reported on cash basis and includes information related to the Five-Year
Forecast which includes the General Fund and related debt. The importance of presenting
the forecasted period provides the reader of this report a look forward in considering the
present financial position. Each report provides an additional level of detail, you may obtain
a copy of the CAFR or Five-Year Forecast on the District’s website, www.nelsd.org or by
contacting the Treasurer’s Office at 937-325-7615.
We appreciate the support of the Board of Education who encouraged us to create this
document. The Administration of NELSD is responsible for the management of Federal,
State, and Local Tax dollars in its care and to ensure that those dollars are used for their
intended purpose of providing a first class education to its students. We sincerely hope that this report helps demonstrate that.
Link to 2021 Comprehensive Annual Financial Report - https://bit.ly/3Kp7hVF.
2021 Financial Position Statement
The Financial Position Statement below shows what the District owns compared to what the District owes. The difference between the
two is the “Net Position” of the District.
Currently, our Net Position is $17.25 million, an increase of $13.78 million from FY 2020. The District experienced an increase in Net
Position due to an increase in value of work in progress as our construction process started.
Statement of Net Position -All Funds As of June 30, 2021 and June 30, 2020
Assets 2021 2020
Cash & Investments 90,680,217$ 98,739,861$
Receivables 23,793,765$ 20,701,437$
Capital Assets 39,380,332$ 17,728,271$
Deferred Outflows of Resources 7,651,417$ 9,050,246$
Total Assets 161,505,731$ 146,219,815$
Liabilities
Short-Term Liabilities 3,990,994$ 4,051,557$
Long-Term Liabilities 122,892,071$ 120,118,066$
Deferred Inflows of Resources 17,371,874$ 18,575,169$
Total Liabilities 144,254,939$ 142,744,792$
Total Net Position 17,250,792$ 3,475,023$
Total Liabilities & Net Assets 161,505,731$ 146,219,815$
Statement of Activities- All Funds As of June 30, 2021 and June 30, 2020
Revenues 2021 2020
Property Tax 18,325,752$ 18,399,275$
Income Tax 5,307,410$ 5,395,851$
Basic Aid 14,882,727$ 15,270,540$
Program & Capital Grants 14,751,881$ 2,516,674$
Charges for Service 3,169,154$ 3,490,019$
Miscellaneous 323,529$ 2,722,963$
Total Revenues 56,760,453$ 47,795,322$
Expenses
Instruction 24,856,525$ 23,524,073$
Pupil Support 2,399,597$ 2,428,908$
Staff Support 1,740,785$ 1,353,890$
Administration 2,687,331$ 2,819,072$
Fiscal 874,682$ 1,006,811$
Maintenance and Operations 2,581,507$ 2,433,656$
Pupil Transportation 2,257,954$ 2,204,768$
Central 37,273$ 32,702$
Non Instructional Services 1,338,153$ 1,467,005$
Extracurricular Activities 1,050,902$ 1,045,963$
Capital Outlay -$ -$
Interest and Finance Charges 3,159,975$ 3,186,062$
Total Expenses 42,984,684$ 41,502,910$
Change in Net Position 13,775,769$ 6,292,412$
Net Position at Beginning (Restated)3,475,023$ (2,817,389)$
Net Position at End of the Year 17,250,792$ 3,475,023$
Property Tax
32%
Income Tax
9%
Basic Aid
26%
Program &
Capital Grants
26%
Charges for
Service
6%
Miscellaneous
1%
Revenue Distribution (GAAP Basis) FY 2021
Instruction
Pupil Support
Staff Support
Administration
Fiscal
Maintenance
and Operations
Pupil Transportation
Central
Non Instructional
Services
Extracurricular
Activities Capital Outlay
Interest and
Finance Charges
Expenditures Distribution (GAAP Basis) FY 2021
Accounting and Reporting
Under State Law the District prepares the Annual Appropriation Budget, Annual Estimated Revenue Budget, the Five-Year Forecast,
and monthly reporting on cash basis of accounting. Revenues are reported when received and expenditures are recorded when the
expense occurs. The District uses the Five-Year Forecast as the building block for the Annual Appropriation Budget and documents the
Budget to Actual variance to the Board of Education on a monthly basis.
State Law also requires the preparation of financial statement in compliance with Generally Accepted Accounting Principles, therefore
we prepare the Comprehensive Annual Financial Report. The table below reflects the conversion from cash statements to accrual
statements. Accrual statements recognizes revenues when measurable and earned, expenses are recorded at the time a liability can be
measured. Accrual statements also record long term assets (assets
with a life greater than or equal to five years of useful life) and
long term debt.
The District provides financial reports in order to make the
financial information as transparent and understandable to the
user as possible. The experienced reader understands that the
table below converts cash basis reports to accrual reports in and
over simplified method and summarizes transactions posted to
generate accrual statements. We prepared this report to link the
documents because each report has value to management of the
District and any user requiring financial information, including
the residents of the Northeastern Local School District.
The remainder of this report looks at the cash basis report because
the District believes the importance of presenting consistent data
locally which we relate to the Five-Year Forecast and the need
for local support.
Northeastern Local School District Balance Sheet - All Funds As of June 30, 2021
Assets Cash Conversion GAAP
Cash & Investments 91,101,039$ (420,822)$ 90,680,217$
Receivables -$ 23,793,765$ 23,793,765$
Capital Assets -$ 39,380,332$ 39,380,332$
Deferred Outflows of Resources -$ 7,651,417$ 7,651,417$
Total Assets 91,101,039$ 70,404,692$ 161,505,731$
Liabilities
Short-Term Liabilities -$ 4,111,364$ 4,111,364$
Long-Term Liabilities -$ 122,771,701$ 122,771,701$
Deferred Inflows of Resources -$ 17,371,874$ 17,371,874$
Total Liabilities -$ 144,254,939$ 144,254,939$
Total Net Position 91,101,039$ (73,850,247)$ 17,250,792$
Northeastern Local School District Balance Sheet - All Funds As of June 30, 2021
Cash Conversion GAAP
Beginning Equity 98,952,977$ (95,477,954)$ 3,475,023$
Revenues 57,002,910$ (242,457)$ 56,760,453$
Expenses/Expenditures 64,854,848$ (21,870,164)$ 42,984,684$
Ending Equity 91,101,039$ (73,850,247)$ 17,250,792$
Cash Basis Five-Year Forecast
The Five-Year Forecast is the District’s projection of cash available; noting the general
direction that the finances of the Northeastern School District are heading. This will
help the user understand any levy issues facing the District. The forecast reflects
funding component computations from the most recent passage of House Bill 110 (State
Biennium Budget) that generates the amount of state funding. COVID-19 impacted the
State Aid money in FY20 and FY21 with a reduction of approximately $650,000 in
each year as the Governor order the cut. The Board of Education and Administration
will continue to study the forecast and the educational needs with the resources the
community provides. If you would like more detailed information you may obtain the
complete Five-Year Forecast on the District’s website.
ACTUAL FOR FISCAL YEAR-GENERAL FUND
Act 19 Act 20 Act 21
Revenue 35,498,274$ 35,765,479$ 36,346,600$
Expenditures 33,109,826$ 33,817,540$ 35,113,765$
Ending Cash Balance 13,465,167$ 15,413,106$ 16,645,941$
PROJECTED FIVE YEAR FORECAST BY FISCAL YEAR - GENERAL FUND
Est 22 Est 23 Est 24 Est 25 Est 26
Revenue 33,879,403$ 34,330,592$ 34,594,702$ 34,823,328$ 35,057,293$
Expenditures 32,719,358$ 34,002,598$ 35,330,851$ 36,559,990$ 37,806,664$
Ending Cash Balance 17,805,986$ 18,133,980$ 17,397,832$ 15,661,170$ 12,911,799$
$-
$5
$10
$15
$20
$25
$30
$35
$40
Act. FY19 Act. FY20 Act. FY21 FY22 FY23 FY24 FY25 FY26
Mil
l
i
o
n
s
General Fund Revenue, Expenditures & Cash Balance
Revenue Expenditures Ending Bal.
Where Does the Money Come From?
Our District receives 50% of our revenues from State and
Federal grant dollars, higher than in the past because of Covid
funds. The largest revenue source for the Northeastern Local
School District is the local taxes which equals 33% of revenues.
The second largest source is the basic aid, 31% that we receive
based on a per student formulas from the State of Ohio. Again,
for FY20 and FY21 all school districts in the State of Ohio
received less than budgeted for the year.
General Fund and Related Funds
The District’s General Fund, which supports most of our
operations, is made up of monies from the Federal and State
government, Northeastern property tax revenues, income tax,
and other sources like tuition, fees, and interest. Northeastern
property taxes and income taxes made up 49% of our General
Fund in FY 2021; these revenues totaled $17.96 million. The
State and Federal revenue made up 42% of our General Fund;
these revenues totaled $14.6 million in FY 2020. The largest
portion of this was in the “State Basic Aid” which is $12.7
million. The relative contributions of each funding source is
shown the chart below. Income Tax has become the backbone
of the district General Fund revenues.
Understanding Property Taxes
Owners of residential or business real estate pay taxes to fund
many services and agencies within their community. In the
Northeastern Local School District, property taxes are collected
to fund public education, social services, the career technical
school, the city government, the county government, and in
some cases township expenses.
The amount collected must be approved by the local voters.
Most levies are approved for a certain period of time, and then
put before the voters for renewal or replacement. For
Northeastern, our school levies are “fixed sum” levies, which
means when the voters approve a levy, they approve the total
amount of money that the levy will provide. That total amount
does not change over time. There is no inflation or cost-of-
living increase in a fixed sum property tax. Furthermore, when
this type of levy is renewed, the amount originally voted
remains in effect for the length of the renewal levy.
Understanding property taxes requires that you understand
a few terms:
Mill: 1/10 of a cent per $1,000 of assessed value.
Effective Millage: The effective millage is the actual tax rate
collected after HB920 reduces the tax rates for inflation. (See
HB 920)
HB 920: Common name of the Ohio Law that requires the
reduction of the property owner’s millage and limits tax dollars
paid to the original levy. (No inflation)
Rollback & Homestead: Roughly a 12.5% tax credit to
homeowners
where the state
pays 12.5% of
the tax bills to
the district,
instead of
having the
homeowners
pay that portion
of their tax bill.
Intergovernmental
50%Property Tax
33%
Income Tax
9%Other
8%
All Funds Revenue Distribution FY21
Intergovernmental Property Tax Income Tax Other
Intergovernmental
42%
Property Tax
35%
Income Tax
14%
Other
9%
General Fund Revenue Distribution FY21
Intergovernmental Property Tax Income Tax Other
Residential
80%
Agricultural
10%
Business
10%
Property Tax by Source FY21
Residential Agricultural Business
Where Does the Money Go? By Function
Direct Instruction: the largest expenditure includes all service
dealing with teaching students.
Building Operations: involves heating, cooling, custodial
services, and keeping buildings and grounds safe and in good
working condition.
Administrative Support: includes the overall administration
of the building and the District as a whole. These include
centralized department heads, building principals and
secretarial support.
Pupil Support: are activities designed to assist and improve the
well-being of the student and supplement the teaching process.
These include guidance, nursing, speech, hearing, social, and
psychological services.
Business Operations: includes fiscal services such as payroll,
accounts payable, budgeting, and auditing as well as
warehousing, purchasing, and insurance.
Instructional Staff: includes library, technology integration,
mentoring, and teacher aides.
Transportation: transportation of students in accordance with
the Board of Education policies and Ohio law.
Food Service: includes expenditures to provide breakfast and
lunch to students.
Other: extracurricular activities, capital outlays, and
miscellaneous expenditures that do not fit in the other
categories.
Interest and Fiscal Charges: Principal debt and interest
payments.
Where Does the Money Go? By Object
Salary and Benefits: are 77 % of expenditures
Purchased Services: include in excess of $3.5 million going to
other schools in Ed Choice vouchers, community (charter)
schools, utilities, and contracts for services
Debt: interest and principal on outstanding debt.
Supplies and Materials: office supplies, diesel fuel,
instructional supplies, and computer software.
Other: includes County Auditor and Treasurer Fees, property
insurance and other expenditures.
All Funds Expenditures by Function
General Fund Expenditures by Function
General Expenditures by Object
Direct Instruction
37%
Building Operations
4%Administrative
Support
4%
Pupil Support
4%Business Operations
1%
Instructional
Staff
Support3%
Transportation
3%
Food Service
1%
Other
38%
Debt Payments
5%
All Funds Expenditures by Function (Cash Basis) FY2021
Direct Instruction
31%
Building
Operations4%Administrative
Support
4%Pupil Support
3%
Business
Operations1%
Instructional
Staff Support3%
Transportation
3%
Food Service
50%
Other
1%
General Fund Expenditures by Function (Cash Basis) FY2021
Wages
54%Benefits
23%
Purchased Services18%
Supplies
3%Capital Outlays
1%
Other
1%
Transfer/Advance
0%
General Fund Expenditures by Object (Cash Basis) FY2021
Expenditures Per Pupil
The chart below shows how the Northeastern Local School
Districts’ FY 2020 expenditures per pupil compared to other
districts which the Ohio Department of Education has
computed and has determined are similar districts. Comparing
NELSD to the group, we are in the lower third of the cost per
pupil, which reflects cost control in the education of the
students. The top goal of the Board of Education and
Administration is to increase student performance and
opportunities within the means provided by the community.
Major Initiatives and Projects
Like most school districts across the country, Northeastern
Local School District (NELSD) saw the impact that COVID-
19 had on both academic and social-emotional learning for our
students. Therefore, identifying and closing the learning gaps
created by the pandemic is one of our top priorities. In an
effort to close the gaps left by the COVID-19 protocols and
student time out of school, the District provided extended
learning summer opportunities to our students. In addition, we
hired extra staff to concentrate on literacy and mathematics in
our buildings. Finally, we continue to monitor and analyze our
district data to identify areas of focus to improve our scores in
tested areas and the performance index on the Ohio School
Report Card.
We are excited about the construction progress made on our
two new PreK-12 school buildings. Our Northeastern PreK-
12 building has been moving along nicely and we are looking
forward to showing our staff, students, and community their
new educational spaces. We are planning ahead for the 2022-
2023 school year when our students and staff will be in their
new building.
While most of the construction is inside the building now at
Northeastern, our live links are still up for people to check
what is happening in real-time.
Northeastern PreK-12 site,
http://construction.northeastern.k12.oh.us/#view
Kenton Ridge PreK-12 site,
http://krconstruction.northeastern.k12.oh.us/#view
The Kenton Ridge PreK-12 building has the structural framing
up, fire-proofing happening, and interior metal studs have
been installed. The exterior stud walls on the second and third
floors as well as over-head electric rough-ins are going in
throughout the building. Additionally, the interior masonry
walls are completed on the first floor and in process on the
third floor; and plumbing water supply piping and vent piping
are going in on the first floor elementary side. You can also
see the exterior wall brick veneer being installed in the area by
the gymnasiums.
Communications are more critical than ever to disseminate
information quickly to our constituents and build trust within
our school community. Therefore, NELSD is currently in the
process of creating a strategic communications plan that will
help the district become more focused on reaching and
engaging key target audiences and telling the District’s story
that aligns with our goals and communication priorities.
The final product will be our measuring stick, an overarching
guide for our District to improve internal and external
communications. Additionally, this plan will serve as a
framework for future resources and budgetary consideration.
The final plan will be reviewed annually by the District's
Communications.
Like most school districts across the country, we continue to
fight the roadblocks caused by a global pandemic. As a result,
we continue to deal with staffing shortages in substitutes
across the board, from teachers and aides to bus drivers and
kitchen staff. Despite the shortage, staff members across our
District have been ready, willing, and able to jump in to help
when, and where, it is needed. As a District, we are proud of
how hard our team has worked to get the job done with pride
and integrity.
$- $3,000 $6,000 $9,000 $12,000 $15,000
St Clairsville-Richland City, Belmont
Madison Local SD, Lake
Northeastern Local SD, Clark
Southwest Licking Local SD, Licking
Dover City SD, Tuscarawas
Teays Valley Local SD, Pickaway
Field Local SD, Portage
Greenon Local SD, Clark
Lexington Local SD, Richland
Napoleon City SD, Henry
Midview Local SD, Lorain
Edgewood City SD, Butler
Group Average
Southwest Local SD, Hamilton
Marysville Ex Vill SD, Union
Ottawa-Glandorf Local SD, Putnam
Clark-Shawnee Local SD, Clark
New Richmond Ex Vill SD, Clermont
Valley View Local SD, Montgomery
State Average
Oregon City SD, Lucas
Cloverleaf Local SD, Medina
Talawanda City SD, Butler
Expenditures per Pupil
On May 8, 2018 the Northeastern Local School District passed a $79.3 million,7.96 mil bond levy, in conjunction with the Ohio Facility
Commission, $41 million to construction of two new pre-k-12 buildings. On August 23, 2018 the District sold bonds to mature with an
average rate of 3.96% for 37 years.
How Your School Property Taxes Are Collected
The effective residential property tax rate for the Northeastern
Local School District for 2021 was 30.3203 mills.
Residential taxes are calculated by applying the effective rate
to the assessed valuation of your property. The assessed
valuation is only 35% of the fair market value of your property.
The example shown here illustrates the tax bill calculation for a
property that has a fair market value of $100,000.
Note that any levies, new or replaced after December 2013, will
not have the 12.5% State Credit reimbursed. The local
taxpayers fund the entire levy.
OUTSTANDING DEBT AT FISCAL YEAR ENDED JUNE 30, 2021 AND JUNE 30, 2020
Outstanding Outstanding
6/30/2020 6/30/2021
2018 GO Bonds Building Project $79.3 million issued 8/23/18 78,535,000$ 77,845,000$
Total 78,535,000$ 77,845,000$
Example
Fair Market Value 100,000$
Multiply Assess Value 35%
Equals Taxable Value 35,000$
Multiple Millage Rate 0.030320334
Equals Total Tax 1,061$
Less State Credits 12.5%87.5%
Total School Tax Bill to Taxpayer 929$
Compared Voted and Effective Millage Rates
Because of HB 920, school districts do not collect taxes at the
voter approved rates. Instead, school districts collect taxes
based on the effective tax rates. Northeastern collects 34.25
mils on 55.5 voted mils.
A True Comparison of Property Taxes
When comparing school district property taxes, the only way to
do this is to compare what a 1-mill raise per student in local
revenue would be. A wealthier tax base will raise more per mill
per student. Northeastern falls in the middle of the group.
Northeastern Board of Education
Mrs. Parker Mr. Augustus Dr.Crankshaw Mr. Collins Mr. Yinger
President Board Member Board Member Board Member Vice President
Superintendent Dr. John P. Kronour
Assistant Superintendent Mr. Shawn Blazer
Director of Pupil Personnel Mr. Steve Linson
Director of Technology Mr. John Schmid
Director of Transportation Mr. John Parrish
Treasurer/CFO Mr. Dale R Miller
Assistant Treasurer Ms. Hannah Songer
The Popular Annual Financial Report for the fiscal year ending in June 2021 was
designed by Northeastern High School Senior Bailey Bradenburg and Kenton Ridge
Junior Caitlin Arnold in collaboration with Northeastern Local School District
Communications Representative Steffanie Stratton. Photos are courtesy of the Kenton
Ridge Yearbook Staff, Northeastern Yearbook Staff, and NELDS Teachers and Staff.
0.00 20.00 40.00 60.00 80.00 100.00
Coventry Local SD, Summit
Lake Local SD, Stark
Tallmadge City SD, Summit
Hubbard Ex Vill SD, Trumbull
Dover City SD, Tuscarawas
Madison Local SD, Lake
Norton City SD, Summit
Napoleon City SD, Henry
Midview Local SD, Lorain
Firelands Local SD, Lorain
State Average
Northeastern Local SD, Clark
Group Average
Lexington Local SD, Richland
Otsego Local SD, Wood
Greenon Local SD, Clark
Valley View Local SD, Montgomery
Union Scioto Local SD, Ross
Celina City SD, Mercer
Northwestern Local SD, Clark
Southwest Licking Local SD, Licking
Jonathan Alder Local SD, Madison
Teays Valley Local SD, Pickaway
Effective
Voted
District Value1 Mil
Hubbard Ex Vill SD, Trumbull 123.97$
Union Scioto Local SD, Ross 132.29$
Valley View Local SD, Montgomery 136.40$
Dover City SD, Tuscarawas 138.21$
Lexington Local SD, Richland 140.73$
Northwestern Local SD, Clark 144.88$
Madison Local SD, Lake 144.98$
Lake Local SD, Stark 146.74$
Northeastern Local SD, Clark 153.98$
Teays Valley Local SD, Pickaway 154.92$
Norton City SD, Summit 155.20$
Celina City SD, Mercer 156.85$
Greenon Local SD, Clark 158.43$
Group Average 161.32$
Southwest Licking Local SD, Licking 162.82$
Napoleon City SD, Henry 166.40$
Tallmadge City SD, Summit 169.20$
Otsego Local SD, Wood 173.08$
State Average 174.61$
Jonathan Alder Local SD, Madison 181.75$
Midview Local SD, Lorain 206.08$
Coventry Local SD, Summit 210.50$
Firelands Local SD, Lorain 230.39$