Webster-RA-26-1st Draft.pdf

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WEBSTER CENTRAL SCHOOL DISTRICT

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BASIC FINANCIAL STATEMENTS

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For Year Ended June 30, 2026

TAB L E

OF CONTENTS Pages

Independent Auditors' Report

1-3

Management's Discussion and Analysis (Unaudited)

4 - 19

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Statement of Activities

21

22 23

Reconciliation of Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances og Governmental Funds to Statement of Activities

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Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position

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Notes to the Basic Financial Statements:

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Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds

26 - 57

Required Supplementary Information:

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Schedule of the District's Proportionate Share of the Net Pension Liability

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Schedule of District Contributions

60

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Schedule of Changes in District's Total OPEB Liability and Related Ratio

Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (Non-GAAP Basis) and Actual - General Fund

61 - 62

Supplementary Information:

Schedule of Change from Adopted Budget to Final Budget and the Real Property Tax Limit

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Capital Projects Fund Schedule of Project Expenditures

64

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Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds

66

Net Investment in Capital Assets/Right to Use Assets

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Schedule of Expenditures of Federal Awards

68

Note to Budgetary Comparison Schedules

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Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

70 - 71

INDEPENDENT AUDITORS' REPORT To the Board of Education Webster Central School District, New York Report on the Audit of the Financial Statements

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Opinions

We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Webster Central School District, New York (the District), as of and for the year ended June 30, 2026, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Basis for Opinions

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In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the District, as of June 30, 2026, 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.

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We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The District’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.

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In performing an audit in accordance with GAAS and Government Auditing Standards, we:

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We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of changes in District’s total OPEB liability and related ratio, schedule of the District’s proportionate share of the net pension liability, schedule of District contributions, and budgetary comparison information on pages 4-19 and 58-62 be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The accompanying supplemental information as listed in the table of contents and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying supplementary information as listed in the table of contents and schedule of expenditures of federal awards is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information as listed in the table of contents and schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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Other Reporting Required by Government Auditing Standards

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Fairport, New York _________, 2026

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In accordance with Government Auditing Standards, we have also issued our report dated ________, 2026 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

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Webster Central School District Management’s Discussion and Analysis For the Fiscal Year Ended June 30, 2026 The following is a discussion and analysis of the District’s financial performance for the fiscal year ended June 30, 2026. This section is a summary of the District’s financial activities based on currently known facts, decisions, and/or conditions. It is also based on both the government-wide and fund-based financial statements. The results of the current year are discussed in comparison with the prior year, with an emphasis placed on the current year. This section is only an introduction and should be read in conjunction with the District’s financial statements, which immediately follow this section. Financial Highlights

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At the close of the fiscal year, the total liabilities plus deferred inflows (what the District owes) exceeded its total assets plus deferred outflows (what the District owns) by $107,623,382 (net position) an increase of $58,606,558 from the prior year. General revenues which include Federal and State Aid, Real Property Taxes, Investment Earnings, Compensation for Loss, and Miscellaneous accounted for $222,037,720 or 93% of all revenues. Program specific revenues in the form of Charges for Services and Operating Grants and Contributions, accounted for $15,481,739 or 7% of total revenues.

Overview of the Financial Statements

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As of the close of the fiscal year, the District’s governmental funds reported combined fund balances of $56,275,683 an decrease of $7,127,848 in comparison with the prior year.

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This discussion and analysis are intended to serve as an introduction to the District's basic financial statements. The District's basic financial statements are comprised of three components: (1) government-wide financial statements, (2) fund financial statements and (3) notes to the financial statements. This report also contains individual fund statements and schedules in addition to the basic financial statements. Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the District's assets plus deferred outflow of resources and liabilities plus deferred inflow of resources, 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 District is improving or deteriorating. The Statement of Activities presents information showing how the government'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.

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The governmental activities of the District include instruction, pupil transportation, cost of food sales, general administrative support, community service, and interest on long-term debt. The government-wide financial statements can be found on the pages immediately following this section as the first two pages of the basic financial statements. 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 District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All the funds of the District can be divided into two categories: governmental funds and fiduciary funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the District's near-term financing requirements.

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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 government'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.

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The District maintains six individual governmental funds: General Fund, Special Aid Fund, School Lunch Fund, Miscellaneous Special Revenue Fund, Debt Service Fund and Capital Projects Fund. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Special Aid Fund, and the Capital Projects Fund which are reported as major funds. Data for the School Lunch Fund, the Debt Service Fund, and the Miscellaneous Special Revenue Fund, are aggregated into a single column and reported as nonmajor funds. Additionally, for each major fund, a detailed analysis of the financial position (fund balance or net position) and results of operations are also provided within the MD&A.

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The District adopts, and voters approve an annual budget for its General Fund. A budgetary comparison statement has been provided for the General Fund within the basic financial statements to demonstrate compliance with the budget. Fiduciary funds are used to account for assets held by the District in an agency capacity which accounts for assets held by the District on behalf of others. Fiduciary funds are not reflected in the government-wide financial statement because the resources of these funds are not available to support the District's programs. The financial statements for the governmental and fiduciary funds can be found in the basic financial statement section of this report.

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Major Feature of the Government-Wide and Fund Financial Statements

Statement of Net Position

Accounting basis and measurement focus Type of asset/liability information

Accrual accounting and economic resources focus

Type of inflow/outflow information

All revenues and expenses during year, regardless of when cash is received or paid

Statement of Activities

Statement of Changes in Fiduciary Net Position

Generally, assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets or long-term liabilities included Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and the related liability is due and payable

All assets and liabilities, both shortterm and long-term; funds do not currently contain capital assets, although they can.

Accrual accounting and economic resources focus

All additions and deductions during the year, regardless of when cash is received or paid

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All assets and liabilities, both financial and capital, short-term and long-term

Statement of Revenues, Expenditures, and Changes in Fund Balance Modified accrual accounting and current financial focus

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Required financial statements

Fund Financial Statements Governmental Funds Fiduciary Funds The activities of the District Instances in which the District that are not proprietary or administers resources on behalf of fiduciary, such as special someone else, such as student education, scholarship activities monies programs, and building maintenance Balance Sheet Statement of Fiduciary Net Position

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Scope

Government-Wide Statements Entire District (except fiduciary funds)

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Notes to the Financial Statements

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The notes provide additional information that is essential to a full understanding of the data provided in the governmentwide and fund financial statements. The notes to the financial statements can be found following the basic financial statement section of this report. Government-Wide Statements

The government-wide statements report information about the District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all the District's assets and liabilities. All the current year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. The two government-wide statements report the District's net position and how they have changed. Net position, the difference between the District's assets plus deferred outflow of resources and liabilities plus deferred inflow of resources, is one way to measure the District's financial health or position. Over time, increases or decreases in the District's net position are an indicator of whether its financial position is improving or deteriorating, respectively. Additional nonfinancial factors such as changes in the District’s property tax base and the condition of the school buildings and facilities must also be considered to assess the District’s overall health.

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All of the District’s services are reported in the government-wide financial statements as governmental activities. Most of the District's basic services are included here, such as regular and special education, transportation, and administration. Property taxes, federal and state aid, and investment earnings finance most of these activities. Financial Analysis of the School District As a Whole Net Position Governmental Activities 2026 2025 $ 113,204,858 $ 92,057,269 225,859,365 215,721,185 $ 339,064,223 $ 307,778,454

Total Variance

$

21,147,589 10,138,180 31,285,769

22.97% 4.70% 10.17%

39,683,125

$

53,673,008

135.25%

$ 399,667,471 33,033,630 $ 432,701,101

374,485,354.00 16,337,877.00 $ 390,823,231

$

25,182,117 16,695,753 41,877,870

6.72% 102.19% 10.72%

$ 122,868,288

$ (15,525,651)

(12.64%)

98,083,224

$ 101,387,621

$

(3,304,397)

(3.26%)

12,109,513 9,066,478 38,121,380 (265,003,977) $ (107,623,382)

12,081,396 5,304,133 34,076,454 (319,079,544) $ (166,229,940)

$

28,117 3,762,345 4,044,926 54,075,567 58,606,558

0.23% 100.00% 11.87% (16.95%) (35.26%)

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93,356,133

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$

Total Percent Variance

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Key Variances  Current and Other Assets increased $21,147,589 as a result of the TRS net pension asset increasing $12.1 million and cash increasing $6.7 million from the utilization of Bond Anticipation Notes (BANs) in the capital project funds alleviating cash flow in the projects.  Deferred Outflows of Resources increased $53,673,008 as a result of the differences between expected and actual experiences for the Other Post Employment Benefits (OPEB) plans.  Other Liabilities increased $16,695,753 as a result of the issuance of a BAN for the $85 million dollar construction project.  Deferred Inflows of Resources decreased $15,525,651 as a result of differences between expected and actual experiences and changes of assumptions for the OPEB plan net of increases to the Pension systems Net differences between projected and actual earnings on pension plan investments.  Overall Net Position increased $58,606,558 as a result of the net impact of the OPEB plan and pension systems.

The District’s financial position is the product of many factors. By far, the largest component of the District's net position reflects its investment in capital assets, less any related debt used to acquire those assets that is still outstanding. The School District uses these capital assets to provide services to the students and 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. There are three restricted net position balances: Capital Reserves, Retirement Contribution Reserve, and Other Purposes. The remaining balance of unrestricted net position was a deficit of $265,003,977 primarily a result of postemployment benefits replated to retiree health care obligations for which the district cannot legally fund. 7

Changes in Net Position The District’s total revenue increased 3% to $237,519,459. State and federal aid 33% and property taxes 54% accounted for most of the District’s revenue. The remaining 13% of the revenue comes from operating grants, charges for services, use of money and property, compensation for loss, and miscellaneous revenues. The total cost of all the programs and services decreased 27% to $178,912,901. The District’s expenses are predominately related to education and caring for the students (instruction) 72%. General support which included expenses associated with the operation, maintenance and administration of the District accounted for 12% of the total costs. See table below: Total Variance

Governmental Activities 2026 2025

$

1,326,026 14,155,713 15,481,739

$ $

$ (1,274,364) 3,699,684 $ 2,425,320

(49.01%) 35.38% 18.58%

$

3,692,634 299,225 1,733,272 (1,278,225) 40,541 452,178 $ 4,939,625 $ 7,364,945

2.96% 2.85% 2.28% (29.78%) 71.58% 30.03% 2.28% 3.20%

$

21,924,768 129,026,956 14,612,322 2,927,923 5,622,307 4,798,625 $ 178,912,901

$

$ (1,579,855) (67,490,371) 914,279 324,266 49,118 524,850 $ (67,257,713)

(6.72%) (34.34%) 6.67% 12.45% 0.88% 12.28% (27.32%)

$

$

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$ 124,723,372 10,483,004 76,037,815 4,291,713 56,640 1,505,551 $ 217,098,095 $ 230,154,514

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CHANGE IN NET POSITION

2,600,390 10,456,029 13,056,419

$ 128,416,006 10,782,229 77,771,087 3,013,488 97,181 1,957,729 $ 222,037,720 $ 237,519,459

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Total Percent Variance

58,606,558

23,504,623 196,517,327 13,698,043 2,603,657 5,573,189 4,273,775 $ 246,170,614 (16,016,100)

NET POSITION, BEGINNING OF YEAR

(166,229,940)

(150,213,840)

NET POSITION, END OF YEAR

$ (107,623,382)

$ (166,229,940)

The overall change in net position increased $58,606,558 which is $74,622,658 higher than the prior year change in net position. The most significant impact was from (can also discuss the major components of expenditures i.e. salaries are the largest component and impact the budget ….) _________________________________________________________________________________________________ ___________________ Key Variances  Charges for Services decreased $1,274,364 as a result of NYS Universal Free Meals program.  Operating Grants & Contributions increased $3,699,684 as a result of increased state and federal aid from increased participation in the School Lunch program.  Instruction expenses decreased $67,490,371 as a result of the impact of the change in the OPEB and pension obligations. 8

Sources of Revenue for 2025-26

Investment earnings 1.27%

Charges for Services Miscellaneous 0.56% 0.82%

Compensation for Loss 0.04%

Operating Grants & Contributions 5.96%

State and Federal Aid 32.74%

Non-Property Taxes 4.54%

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Property Taxes 54.07%

Sources of Revenue for 2024-25 Investment earnings 1.86%

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Charges for Services 1.13%

Operating Grants & Contributions 4.54%

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Compensation for Loss 0.02%

Miscellaneous 0.67%

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State and Federal Aid 33.04%

Non-Property Taxes 4.55%

Property Taxes 54.19%

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Expenses for 2025-26 Community Services 1.64%

School Lunch 3.14%

Interest on LongTerm Debt 2.68% General Support 12.25%

Pupil Transportation 8.17%

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Instruction 72.12%

Interest on LongTerm Debt 1.74%

General Support 9.55%

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Pupil Transportation 5.56%

School Lunch 2.26%

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Community Services 1.06%

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Expenses for 2024-25

Instruction 79.83%

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Financial Analysis of the District’s Funds The financial performance of the District as a whole is reflected in its governmental funds. As the District completed the year, its governmental funds reported combined fund balances of $56,275,683 which is less than last year’s ending fund balance of $63,403,531. The District reports two major governmental funds individually in the governmental funds financial statements. Those funds are the General Fund and the Capital Projects Fund. General Fund The General Fund is the chief operating fund of the District. At the end of the current year, the total fund balance of the General Fund was $68,172,253. Fund balance for the General Fund increased by $7,119,855 compared with the prior year, which was primarily a result of _________________________________________________________________________________. See table below:

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$

2025 $ 217,444,028 209,869,078

Total Percent Variance 2.08% 1.86%

(1,079,430) 7,119,855

$ 53,455,978 5,788,502 8,927,773 $ 68,172,253

$

(613,066) 6,961,884

$ 46,597,530 5,671,893 8,782,975 $ 61,052,398

$ $ $

(466,364) 1,090,699

76.07% 15.67%

6,858,448 116,609 144,798 7,119,855

14.72% 2.06% 1.65% 11.66%

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Fund Balance Restricted Assigned Unassigned Total Fund Balance

2026 $ 221,965,821 213,766,536

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Total Variance $ 4,521,793 3,897,458

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Retirement Contribution Teachers Retirement Contribution Total

$ $

2026-27 1,500,000 1,500,000 3,000,000

$ $

2025-26 1,500,000 1,500,000 3,000,000

Total Variance $ $

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Total Percent Variance 0.00% 0.00% 0.00%

As indicated above, the District appropriated $3,000,000 in reserve funds to support the 2025-26 budget which represents 1% of the 2025-26 budget and the same as the prior year. The appropriated reserves are included in the $53,455,978 restricted fund balance and if expended would reduce those funds to $50,455,978.

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Capital Projects Fund The Capital Projects Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditure for the acquisition or construction of capital facilities and other capital assets, such as equipment. A Capital Projects Fund must be used if the acquisition or construction is financed in whole or in part from the proceeds of obligations, but may include funding from Federal, State and local sources. At the end of the current year, the total fund balance of the Capital Projects Fund was ($19,532,488) and a summary of the projects can be found in the financial statements. The largest component of the capital projects fund is the $85 million dollar Capital Improvement project approved in October 2023 and is being finances with $10 million dollars in local fund and $75 million in debt. Fund balance for the Capital Projects Fund decreased by $15,243,940 compared with the prior year. See table below:

Fund Balance Restricted Unassigned Total Fund Balance

$

$ $

728,811 (373,658) 7,549,180 (15,243,940) 712,795 (20,245,283) (19,532,488)

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Key Variances

11,022,587

Total Variance $ 220,500 12,346,186

Total Percent Variance 100.00% 112.01%

313,281 (186,826) 29,981,988 2,105,000 21,190,856

415,530 (186,832) (22,432,808) (2,105,000) (36,434,796)

132.64% 100.00% (74.82%) (100.00%) (171.94%)

399,429 (15,643,369) (15,243,940)

127.46% 339.93% 355.46%

2025 $

$ $ $

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$

2026 220,500 23,368,773

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313,366 (4,601,914) (4,288,548)

$ $ $

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The $85 million dollar project is 35% complete and relates to the increases to total expenditures for the projects. In addition, the District purchased $2.3 million dollars in buses and had $5.2 Million in lease transactions which also are included in the Proceeds from Obligations. Proceeds from obligations decreased as the district issued the permanent financing (Serial Bonds) in 2025 for the 43 million dollar Capital improvement project. The Unassigned fund balance decrease relates to the issuance of Bond Anticipation Notes to for the $85 million dollar project and once the permanent financing is obtained the deficit will be eliminated.

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Significant Capital Asset and Long-Term Financing Activity Significant Capital and Right to Use Assets Capital assets are accounted for at historical (actual) cost or, if the cost is not practicably determinable, at estimated cost. The cost of the capital asset should include ancillary charges necessary to place the asset into use. Donated capital assets and capital assets acquired in a service concession arrangement should be recorded at acquisition value. Acquisition value is the price that would be paid to acquire an asset with equivalent service potential at the acquisition date, or the amount at which a liability could be liquidated with the counter party at the acquisition. Right to use assets (leases) are valued at the future minimum lease payment. By the end of the 2026 fiscal year, the District had invested $225,859,365 in a broad range of capital and lease assets, including land, work in progress, buildings and improvements, and machinery and equipment. The change in capital assets and leased assets, net of accumulated depreciation (capital assets) and amortization (leased assets), is reflected below: 2026 Capital Assets: Land Work in Progress Buildings and Improvements Machinery and Equipment Total Capital Assets Lease Assets: Equipment Subscription IT Assets Total Lease Assets

Total Variance

2025

2,147,912 30,209,804 176,044,523 11,585,981 $ 219,988,220

$

2,147,912 21,114,168 181,062,795 8,186,954 $ 212,511,829

$

$

$

$

$

9,095,636 (5,018,272) 3,399,027 7,476,391

0.00% 43.08% (2.77%) 41.52% 3.52%

2,478,314 183,475 2,661,789

80.27% 150.57% 82.94%

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$

5,565,819 305,326 5,871,145

$

3,087,505 121,851 3,209,356

$

$

Total Percent Variance

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Key Variances  Work in Progress increased $9,095,636 as a result of capitalization of expenditure related to the $85 million dollar project net of items allocated to buildings.  Machinery and Equipment increased $3,399,027 as a result of capital outlay for equipment purchases increasing more than the depreciation expense.  Lease Asset Equipment increased $2,478,314 as a result of the ongoing investment in technology through BOCES. More detailed information can be found in the notes to the financial statements.

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Long-Term Financing Activity

At year end, the District had $399,667,471 in general obligation bonds and other long-term debt outstanding as follows: Type Serial Bonds Payable Lease Liability Unamortized Bond Premium OPEB Liability Net Pension Liability Retainage Payable Compensated Absences Total Long-Term Financing

$

$

2026 94,920,000 4,224,982 7,634,814 254,267,087 3,501,261 817,915 34,301,412 399,667,471

$

$

2025 100,120,000 1,367,393 8,314,986 220,884,339 10,267,717 60,648 33,470,271 374,485,354

Total Variance $ (5,200,000) 2,857,589 (680,172) 33,382,748 (6,766,456) 757,267 831,141 $ 25,182,117

Total Percent Variance (5.19%) 208.98% (8.18%) 15.11% (65.90%) 1248.63% 2.48% 6.72%

Key Variances The most significant component of the Long-Term Financing Activity is the OPEB liability that represents 63.6% of the activity. Serial Bonds, Leases, unamortized bond premiums and retainage payable represent 26.9% of the activity and relates to current and past capital investments in the school.

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NYS ERS and TRS Pension Systems All non-teaching and non-certified administrative employees of the District eligible for pension or retirement benefits under the Retirement and Social Security Law of the State are members of the New York State and Local Employees’ Retirement System (“ERS”). In the District’s 2026-27 budget, the appropriation for payments to ERS is $____________. Teachers and certified administrators are members of the New York State Teachers’ Retirement System (“TRS” and collectively with ERS, the “Retirement Systems”). Payments to the TRS are deducted from the District’s State aid payments. In the District’s 2026-27 budget, the appropriation for payments to TRS is $_________. The average contribution rate for the ERS for the 2025-26 fiscal year is 16.5%. The average contribution rate for the TRS for the 2025-26 fiscal year is 9.59%. The funding status of the ERS pension system as of March 31, 2025 indicates the System is funded at 97.78% while the TRS System is funded at 104%. As a result the Teachers Retirement System reports a net pension asset totaling $24,678,808. Other Postemployment Benefits (OPEB)

AF T

The District and other municipal units of government in the State are prohibited from reducing health benefits received by or increasing health care contributions paid by retirees below the level of benefits or contributions afforded to or required from active employees.

R

OPEB consists primarily of health care benefits and may include other benefits such as disability benefits and life insurance. There is no authority in current State law to establish a trust account in order to fund any part of this liability, however, the District budgets and pays the actual costs relating to this expenditure in the General Fund. Bond Rating

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Moody's Investors Service (“Moody's”) has assigned its underlying rating of “Aa2” to the District’s outstanding bonds. No application was made to any other rating agency for the purpose of obtaining an additional rating on the bonds. A rating ref lects only the view of the rating agency assigning such rating and any desired explanation of the significance of such rating should be obtained from Moody's, 7 World Trade Center, 250 Greenwich St., New York, New York 10007. Phone: (212) 553-0038, Fax: (212) 553-1390.

1S

S&P Global Ratings, a business unit of Standard & Poor’s Financial Services LLC (“S&P”) has assigned its underlying rating of “AA” to the District’s outstanding bonds. A rating reflects only the view of the rating agency assigning such rating and any desired explanation of the significance of such rating should be obtained from S&P, Credit Market Services, Public Finance Ratings, 55 Water Street, 38th Floor, New York, New York 10041, Phone: (212) 553-0038, Fax: (212) 553-1390. More detailed information can be found in the notes to the financial statements.

14

Currently Known Facts, Decision or Conditions Employee Contracts The District has the following significant employee contracts: Contracts Webster Teachers Association (tentative agreement) WCS Educational Support Associates Transportation Unit Local 1635 CCMA-WCS WCS Association of Educational Office Professionals Webster Education Leadership Association WCS Food Service

Expiration Date June 30, 2027 June 30, 2026 June 30, 2027 June 30, 2028 June 30, 2028 June 30, 2029 June 30, 2027

Unemployment Rate

AF T

(include or enhance any discussion you would like on contracts) The School District is currently negotiating with the _________________________________________________________________________________________.

Unemployment statistics are not available for the District as such, smallest area for which such statistics are available (which includes the District) is Monroe and Wayne County. The data set forth below with respect to the Counties. Monroe County Unemployment Rate 5.2% 3.4% 3.7% 3.7%

New York State Unemployment Rate 7.0% 4.3% 4.2% 4.3%

T

Tax Levy Limitation Law

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Year 2021 2022 2023 2024

Wayne County Unemployment Rate 4.5% 3.2% 3.4% 3.5%

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On June 24, 2011, Chapter 97 of the Laws of 2011 (herein referred to as the “Tax Levy Limit Law” or “Law”) was signed by the Governor. The Tax Levy Limit Law modifies current law by imposing a limit on the amount of real property taxes that a school district may levy. The Law will affect school district tax levies for the school district financial year beginning July 1, 2012. On April 12, 2019 the enacted State budget legislation for fiscal year 2020 made the Tax Levy Limitation Law permanent. Prior to the enactment of the Law, there was no statutory limitation on the amount of real property taxes that a school district could levy if its budget had been approved by a simple majority of its voters. In the event the budget had been defeated by the voters, the school district was required to adopt a contingency budget. Under a contingency budget, school budget increases were limited to the lesser of four percent (4%) of the prior year’s budget or one hundred twenty percent (120%) of the consumer price index (“CPI”). The Tax Levy Limit Law imposed a limitation on the amount of tax levy growth from one fiscal year to the next. Such limitation is the lesser of (i) 2% or (ii) the annual percentage increase in the consumer price index, as described in the Law. Tax levies that do not exceed such limit will require approval by at least 50% of the voters. Approval by at least 60% of the voters will be required for a tax levy in excess of the limit. In the event the voters reject the tax levy, the school district’s tax levy for the ensuing fiscal year may not exceed the amount of the tax levy for the prior fiscal year, without any stated exceptions.

15

The Law sets forth several exceptions to the tax levy limit for school districts. These include taxes to pay the local share of debt service on voter approved capital expenditures, certain pension cost increases, and other items enumerated in the Law. School districts will be permitted to carry forward a certain portion of their unused tax levy limitation from a prior year. The Law provides an express exception from the limitation for those taxes to be levied to pay the local share of debt service on voter approved capital expenditures. However, Such exception would not apply to taxes to be levied commencing in the 2012-13 fiscal year of a school district to pay debt service on tax anticipation notes, revenue anticipation notes, budget notes and deficiency notes; and any obligations issued to finance deficits and certain judgements, including tax certiorari payments.

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Summary of Percent Change in Tax Levy, Tax Cap, True Tax Rate, and Taxable Full Valuation

As indicated in the above table since 2020 _____________________________________________________________________________________________ _____________________________________________________________________________________________ ______________________________ 2026-27 Budgetary Information The budget for the 2025-26 fiscal year was approved by the qualified voters on May 20, 2025 by a vote of 3,211 to 1,306. The District’s adopted budget for 2025-26 remained within the Tax Cap imposed by Chapter 97 of the Laws of 2011. The budget called for a total tax levy increase of 3.19%, which was equal to the District’s tax levy limit of 3.19%. The budget for the 2026-27 fiscal year was approved by the qualified voters on May 19, 2026 by a vote of 2,399 to 1,305. The District’s adopted budget for 2026-27 remained within the Tax Cap imposed by Chapter 97 of the Laws of 2011. The budget called for a total tax levy increase of 3.39%, which was equal to the District’s tax levy limit of 3.39%.On May 19, 2026, the voters of the District approved the proposed 2026-27 budget totaling $__________ with a ____% approval rate. 16

In addition, there were ____ separate proposals in the budget relating _________________________________________________________________________________________________ The District’s long-term capital plan includes _____________________________________________________________________________________________ Enrollment Information The school district enrollment also impacts the budget process. The following graphs highlight some of the key District trends:

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D

R

AF T

Enrollment in the district has steadily declined since the 2007-08 school year with an acceleration of the enrollment declining during the COVID 19 pandemic years. The chart represents one of the main foundation aid formula points for Total Wealth Pupil Units. This is the pupil count used along with other wealth variable to measure the relative wealth of a district. When compared to Monroe county over the last five years the TWPU for Webster has declined at 1.24% while the county average has declined at 1.52%. Combined with enrollment decreases the relative wealth of the district has increased as well over the past several years. The district's Combined Wealth Ratio (CWR) has increased from .863 to .905 over the past five years with one being the average. For comparison, the Monroe County average is a .781 and the New York State Average is 1.0 The two main drivers of the increase in wealth for the district have been the increase in property values per pupil as well as income per pupil. These are the two main drivers of the CWR formula, which then is incorporated into the foundation aid formula. Webster has seen a 24.48% increase in income per pupil in the last five years and a 37.4% increase in property valuation per pupil.

17

Other Postemployment Benefits (OPEB) OPEB refers to "other post-employment benefits," meaning other than pension benefits, disability benefits and OPEB consist primarily of health care benefits, and may include other benefits such as disability benefits and life insurance. In 2015, the Governmental Accounting Standards Board ("GASB") released new accounting standards for public Other Post-Employment Benefits (“OPEB”) plans and participating employers. These standards, GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions ("GASB 75"), have substantially revised the valuation and accounting requirements previously mandated under GASB Statements No. 43 and 45. The implementation of this statement requires District’s to report OPEB liabilities, OPEB expenses, deferred outflow of resources and deferred inflow of resources related to OPEB. GASB Statement No. 75 replaced GASB Statement 45, which also required the District to calculate and report a net OPEB obligation. However, under GASB 45 districts could amortize the OPEB liability over a period of years, whereas GASB 75 requires districts to report the entire OPEB liability on the statement of net position.

1S

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D

R

AF T

The chart below shows the total OPEB obligation as a percentage to the General Fund budget.

The District continues to see this expenditure to be a significant impact on the overall budget. The District reviews and evaluates the health insurance programs we participate in on an annual basis in order to control the overall cost of health insurance for our active and retired employees. Through our participation in the Rochester Area School Health Plans I and II we have made available new programs for health savings accounts and other subsidy plans to help control those costs. School districts and Boards of Cooperative Educational Services, unlike other municipal units of government in the State, have been prohibited from reducing health benefits received by or increasing health care contributions paid by retirees below the level of benefits or contributions afforded to or required from active employees since the implementation of Chapter 729 of the Laws of 1994. Legislative attempts to provide similar protection to retirees of other local units of government in the State have not succeeded as of this date. Nevertheless, many such retirees of all varieties of municipal units in the State do presently receive such benefits.

18

Zero Emission Vehicle Mandate New York State’s zero-emission school bus mandate (Education Law §3638) requires all public school districts, as well as any contracted transportation providers, to transition to fully zero-emission (primarily electric) school bus fleets over time. Under the law, districts must ensure that all new school bus purchases or leases meet zero-emission standards by the applicable deadline (originally July 1, 2027, with recent updates extending to approximately 2032) and must include the same requirement in transportation service contracts. In addition, districts are required to phase out all gasoline and diesel buses so that, by the final statutory deadline (originally July 1, 2035, with potential extension to 2040), only zero-emission buses are operated and maintained. The law also includes procurement provisions such as domestic manufacturing requirements and permits limited waivers for interim compliance challenges, while maintaining the ultimate conversion requirement. To support implementation, the State has established significant funding programs, including the NYSERDA School Bus Incentive Program funded in part by the Environmental Bond Act, which provides financial assistance for electric bus purchases, charging infrastructure, and fleet electrification planning.

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Pre-K Program

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(modify for your district) The District offers full day UPK to eligible students. The District offers the UPK program both as an in-District program and also collaborates with multiple local agencies to provide this service. The NYS adopted budget includes an increase of state funding for 2026-27. This increase is from approximately $5,500/student per year in 2025-26 to $10,000/student per year in 202627.___________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________ Contacting the School District’s Financial Management

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This financial report is designed to provide the District’s citizens, taxpayers, customers, investors, and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the following: Webster Central School District 119 South Avenue Webster, New York 14580

19

WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Statement of Net Position June 30, 2026 Governmental Activities

ASSETS Cash and cash equivalents Investments Accounts receivable Inventories Net pension asset Capital Assets: Land Work in progress Other capital assets (net of depreciation) TOTAL ASSETS

T AF

$ $

93,356,133

$

3,420,861 1,389,240 108,950 85,978 8,697,546 1,233,376 15,000,000 3,097,679

T

1S

DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources NET POSITION Net investment in capital assets Restricted For: Reserve for employee retirement system Capital reserves Other purposes Unrestricted TOTAL NET POSITION (See accompanying notes to financial statements)

64,404,025 7,328,469 16,619,572 173,984 24,678,808 2,147,912 30,209,804 193,501,649 339,064,223

D

LIABILITIES Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to teachers' retirement system Due to employees' retirement system Bond anticipation notes payable Other liabilities Long-Term Obligations: Due in one year Due in more than one year TOTAL LIABILITIES

R

DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources

$

$

15,774,767 383,892,704 432,701,101

$

107,342,637

$

98,083,224

12,109,513 9,066,478 38,121,380 (265,003,977) $ (107,623,382) 20

WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Statement of Activities For The Year Ended June 30, 2026

Net (Expense) Revenue and Changes in Net Position

Program Revenues Operating Functions/Programs

Charges for

Grants and

Governmental

Services

Contributions

Activities

Expenses

Primary Government $

21,924,768 129,026,956

Pupil transportation

14,612,322

Community services

-

$

632,925

-

$

(21,924,768)

8,876,866

(119,517,165)

-

-

(14,612,322)

2,927,923

-

-

(2,927,923)

School lunch

5,622,307

693,101

5,278,847

349,641

Interest

4,798,625

-

-

(4,798,625)

$

178,912,901

$

1,326,026

D

Total Primary Government

R

AF

Instruction

$

T

General support

$

14,155,713

$

(163,431,162)

$

128,416,006

General Revenues:

T

Property taxes

10,782,229

State and federal aid

77,771,087

Investment earnings

3,013,488

Compensation for loss

97,181

1S

Non property taxes

Miscellaneous

1,957,729

Total General Revenues Changes in Net Position

$

222,037,720

$

58,606,558

Net Position, Beginning of Year Net Position, End of Year

(See accompanying notes to financial statements)

21

(166,229,940) $

(107,623,382)

WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Balance Sheet Governmental Funds June 30, 2026

LIABILITIES AND FUND BALANCES Liabilities Accounts payable Accrued liabilities Notes payable - bond anticipation notes Due to other funds Due to other governments Due to TRS Due to ERS Other liabilities Unearned revenue TOTAL LIABILITIES Fund Balances Nonspendable Restricted Assigned Unassigned TOTAL FUND BALANCE TOTAL LIABILITIES AND FUND BALANCES

$

$

53,455,978 5,788,502 8,927,773 68,172,253

D

$

1,577,522 507,333 29,560,009 85,978 8,668,581 292,087 3,097,679 43,789,189

T

$

$

$

Total Governmental Funds $ 64,404,025 7,328,469 16,619,572 173,984 58,181,102 $ 146,707,152

1,689,310 15,000,000 20,408,920 37,098,230

$

$

$

111,961,442

154,029 98,644 8,212,173 28,965 941,289 108,950 9,544,050

T

$

$

Nonmajor Governmental Funds $ 388,376 135 5,687,472 173,984 10,930,001 $ 17,179,968

AF

$

Capital Projects Fund 490,456 137,920 16,937,366 17,565,742

$

R

ASSETS Cash and cash equivalents Investments Receivables Inventories Due from other funds TOTAL ASSETS

General Fund 63,525,193 7,328,334 10,794,180 30,313,735 111,961,442

$

$

$

712,795 (20,245,283) (19,532,488)

$

173,984 5,195,451 2,266,483 7,635,918

$

$

17,565,742

$ 17,179,968

$ $

$

3,420,861 605,977 15,000,000 58,181,102 85,978 8,697,546 1,233,376 3,097,679 108,950 90,431,469 173,984 59,364,224 8,054,985 (11,317,510) 56,275,683

1S

Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets/right to use assets used in governmental activities are not financial resources and therefore are not reported in the funds. 225,859,365 Interest is accrued on outstanding bonds in the Statement of Net Position but not in the funds.

(783,263)

The following long-term obligations are not due and payable in the current period and therefore are not reported in the governmental funds: Serial bonds payable Lease liability Retainage payable OPEB liability Compensated absences Unamortized bond premium Net pension asset Deferred outflow - pension Deferred outflow - OPEB Net pension liability Deferred inflow - pension Deferred inflow - OPEB Net Position of Governmental Activities

(94,920,000) (4,224,982) (817,915) (254,267,087) (34,301,412) (7,634,814) 24,678,808 35,419,830 57,936,303 (3,501,261) (26,609,108) (80,733,529) $ (107,623,382)

(See accompanying notes to financial statements)

22

WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For The Year Ended June 30, 2026 Formerly Major Special

Capital

Nonmajor

Total

General

Aid

Projects

Governmental

Governmental

Fund

Fund

Fund

Funds

Funds

REVENUES Real property taxes and tax items

-

$ 128,416,006

Non-property taxes

$ 128,416,006 10,782,229

-

-

-

10,782,229

Charges for services

632,925

-

-

-

632,925

2,960,215

-

-

34,967

2,995,182

Use of money and property

-

$

-

$

97,181

-

-

-

97,181

Miscellaneous

1,526,678

-

-

2,323,690

3,850,368

State sources

77,130,248

-

220,500

6,466,721

83,817,469

Federal sources

420,339

-

-

5,664,484

6,084,823

-

-

693,101

693,101

15,182,963

$ 237,369,284

Sales

T

Sale of property and compensation for loss

$

$ 221,965,821

$

$

$

EXPENDITURES General support Instruction

Capital outlay

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TOTAL EXPENDITURES

220,500

$

-

$

-

$

-

$

20,311,801

-

-

6,187,655

114,930,995

9,620,059 1,199,367

-

2,261,366 -

255,012 1,724,444

12,136,437 2,923,811 60,953,218

59,056,769

-

-

1,896,449

9,891,591

-

-

-

9,891,591

4,943,609

-

-

-

4,943,609

T

Cost of sales Other expenses

20,311,801

D

$

108,743,340

R

Pupil transportation Community services

-

AF

TOTAL REVENUES

-

-

-

2,854,540

2,854,540

-

-

-

2,143,078

2,143,078

-

21,107,407

$ 213,766,536

$

-

$

21,107,407 23,368,773

$

15,061,178

$ 252,196,487

$

8,199,285

$

-

$ (23,148,273)

$

121,785

$

-

$

-

$

$

724,277

$

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

(14,827,203)

OTHER FINANCING SOURCES (USES) Transfers - in Transfers - out

$

(1,079,430)

728,811

-

(373,658)

1,453,088

-

(1,453,088)

Proceeds from obligations

-

-

7,549,180

-

7,549,180

Premium on obligations issued

-

-

-

150,175

150,175

TOTAL OTHER FINANCING SOURCES (USES)

$

(1,079,430)

$

-

$

7,904,333

$

874,452

$

7,699,355

NET CHANGE IN FUND BALANCE

$

7,119,855

$

-

$ (15,243,940)

$

996,237

$

(7,127,848)

FUND BALANCE, BEGINNING OF YEAR, as previously reported

$

61,052,398

$

773,775

$

$

5,865,906

$

63,403,531

(4,288,548)

Changes within financial reporting entity major to nonmajor

-

(773,775)

-

773,775

-

FUND BALANCE, BEGINNING OF YEAR, as adjusted FUND BALANCE, END OF YEAR

(See accompanying notes to financial statements)

$

61,052,398

$

-

$

(4,288,548)

$

6,639,681

$

63,403,531

$

68,172,253

$

-

$ (19,532,488)

$

7,635,918

$

56,275,683

23

WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Reconciliation of Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to Statement of Activities For The Year Ended June 30, 2026 NET CHANGE IN FUND BALANCES TOTAL GOVERNMENTAL FUNDS

$

(7,127,848)

Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The following are the amounts by which capital outlays and additions of assets in excess depreciation in the current period: Capital Outlay Additions to Assets, Net Depreciation and Amortization

$

15,789,846 11,772,276 (17,423,942)

10,138,180

AF

T

Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term obligations in the Statement of Net Position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term obligations in the Statement of Net Position. The following details these items as they effect the governmental activities:

R

$

9,891,591 (2,350,000) 680,172 (5,199,180)

3,022,583

In the Statement of Activities, interest is accrued on outstanding bonds, whereas in governmental funds, an interest expenditure is reported when due.

D

(535,188)

The retainage payable does not measure the use of current financial resources and, therefore, is not reported as an expenditure in the governmental funds

T

(757,267)

The net OPEB liability does not require the use of current financial resources and, therefore, is not reported as an expenditure in the governmental funds.

1S

45,541,761

(Increase) decrease in proportionate share of net pension asset/liability reported in the Statement of Activities do not provide for or require the use of current financial resources and therefore are not reported as revenues or expenditures in the governmental funds Teachers' Retirement System Employees' Retirement System

9,235,295 (79,817)

In the Statement of Activities, vacation pay, teachers' retirement incentive and judgments and claims are measured by the amount accrued during the year. In the governmental funds, expenditures for these items are measured by the amount actually paid. The following provides the differences of these items as presented in the governmental activities: Compensated Absences CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES

(See accompanying notes to financial statements)

24

(831,141) $

58,606,558

WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Statement of Fiduciary Net Position June 30, 2026

Custodial Funds $ $

499,597 499,597

NET POSITION Restricted for individuals, organizations and other governments TOTAL NET POSITION

$ $

499,597 499,597

T

ASSETS Cash and cash equivalents TOTAL ASSETS

AF

Statement of Changes in Fiduciary Net Position

Custodial Funds 883,226 883,226

DEDUCTIONS Student activity TOTAL DEDUCTIONS

$ $

987,146 987,146

CHANGE IN NET POSITION

$

(103,920)

NET POSITION, END OF YEAR

$

T

$ $

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ADDITIONS Student activity TOTAL ADDITIONS

D

R

For The Year Ended June 30, 2026

NET POSITION, BEGINNING OF YEAR

(See accompanying notes to financial statements)

603,517

25

499,597

WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Notes To The Basic Financial Statements June 30, 2026 I.

Summary of Significant Accounting Policies

The financial statements of the Webster Central School District, New York (the District) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the District's accounting policies are described below. A.

Reporting Entity

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The District is governed by the laws of New York State. The District is an independent entity governed by an elected Board of Education consisting of seven members. The President of the Board serves as the chief fiscal officer and the Superintendent is the chief executive officer. The Board is responsible for, and controls all activities related to public school education within the District. Board members have authority to make decisions, power to appoint management, and primary accountability for all fiscal matters.

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The reporting entity of the District is based upon criteria set forth by GASB Statement 14, The Financial Reporting Entity, as amended by GASB Statement 39, Component Units and GASB Statement No. 61, The Financial reporting Entity. The financial reporting entity consists of the primary government, organizations for which the primary government is financially accountable and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

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The District is not a component unit of another reporting entity. The decision to include a potential component unit in the District’s reporting entity is based on several criteria including legal standing, fiscal dependency, and financial accountability. Based on the application of these criteria, the following is a brief review of certain entities included in the District’s reporting entity. 1.

Extraclassroom Activity Funds

The extraclassroom activity funds of the District represent funds of the students of the District. The Board of Education exercises general oversight of these funds. The extraclassroom activity funds are independent of the District with respect to its financial transactions, and the designation of student management. Separate audited financial statements (cash basis) of the extraclassroom activity funds can be found at the District’s business office. The District accounts for assets held for various student organizations in the Custodial Fund. B.

Joint Venture

The District is a component of the First Supervisory District of Monroe County Board of Cooperative Educational Services (BOCES). The BOCES is a voluntary, cooperative association of school districts in a geographic area that shares planning, services, and programs which provide educational and support activities. There is no authority or process by which a school district can terminate its status as a BOCES component. 26

( I. ) (Continued) BOCES are organized under §1950 of the New York State Education Law. A BOCES Board is considered a corporate body. Members of a BOCES Board are nominated and elected by their component member boards in accordance with provisions of §1950 of the New York State Education Law. All BOCES property is held by the BOCES Board as a corporation (§1950(6)). In addition, BOCES Boards also are considered municipal corporations to permit them to contract with other municipalities on a cooperative basis under §119-n(a) of the New York State General Municipal Law. A BOCES’ budget is comprised of separate budgets for administrative, program, and capital costs. Each component school district’s share of administrative and capital cost is determined by resident public school district enrollment as defined in Education Law, Section 1950(4)(b)(7). In addition, component districts pay tuition or a service fee for programs in which its students participate. During the year, the District was billed $17,798,442 for BOCES administrative and program costs.

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The District’s share of BOCES aid amounted to $8,048,077. Financial statements for the BOCES are available from the BOCES administrative office. Basis of Presentation 1.

Districtwide Statements

T

D

R

The Statement of Net Position and the Statement of Activities present financial information about the District’s governmental activities. These statements include the financial activities of the overall government in its entirety, except those that are fiduciary. Eliminations have been made to minimize the double counting of internal transactions. Governmental activities generally are financed through taxes, state aid, intergovernmental revenues, and other exchange and nonexchange transactions. Operating grants include operating-specific and discretionary (either operating or capital) grants, while the capital grants column reflects capital specific grants. The Statement of Activities presents a comparison between program expenses and revenues for each function of the District’s governmental activities. Direct expenses are those that are specifically associated with and are clearly identifiable to a particular function. Indirect expenses, principally employee benefits, are allocated to functional areas in proportion to the payroll expended for those areas. Program revenues include charges paid by the recipients of goods or services offered by the programs, and grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

1S

C.

2.

Fund Statements

The fund statements provide information about the District’s funds, including fiduciary funds. Separate statements for each fund category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.

27

( I. ) (Continued) The District reports the following governmental funds: a.

b. Nonmajor Governmental Funds - The other funds which are not considered major are aggregated and reported as nonmajor governmental funds as follows:

AF T

R

D

1S

T

c. Fiduciary Fund - Fiduciary activities are those in which the District acts as trustee or agent for resources that belong to others. These activities are not included in the District-wide financial statements, because their resources do not belong to the District, and are not available to be used. Custodial Funds - These funds are strictly custodial in nature and do not involve the measurement of results of operations. Assets are held by the District as agent for various student groups or extraclassroom activity funds.

D.

Measurement Focus and Basis of Accounting

Accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

28

( I. ) (Continued) The District-wide and fiduciary fund 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 at the time liabilities are incurred, regardless of when the related cash transaction takes place. Nonexchange transactions, in which the District gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants and donations. On an accrual basis revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. The fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The District considers all revenues reported in the governmental funds to be available if the revenues are collected within one year after the end of the fiscal year.

E.

AF T

Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. Property Taxes

R

Real property taxes are levied annually by the Board of Education no later than September 1, and became a lien on August 19, 2025. Taxes were collected during the period September 1 through October 31, 2025.

D

Uncollected real property taxes are subsequently enforced by the County of Monroe, in which the District is located. An amount representing uncollected real property taxes transmitted to the Counties for enforcement is paid by the Counties to the District no later than the forthcoming April 1. Restricted Resources

T

F.

G.

1S

When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the District’s policy concerning which to apply first varies with the intended use, and with associated legal requirements, many of which are described elsewhere in these notes. Interfund Transactions

The operations of the District include transactions between funds. These transactions may be temporary in nature, such as with interfund borrowing. The District typically loans resources between funds for the purpose of providing cash flow. These interfund receivables and payables are expected to be repaid within one year. Permanent transfers of funds include the transfer of expenditures and revenues to provide financing or other services. In the District-wide statements, the amounts reported on the Statement of Net Position for interfund receivables and payables represent amounts due between different fund types (governmental activities and fiduciary funds). Eliminations have been made for all interfund receivables and payables between the funds.

29

( I. ) (Continued) The governmental funds report all interfund transactions as originally recorded. Interfund receivables and payables may be netted on the accompanying governmental funds balance sheet when it is the District’s practice to settle these amounts at a net balance based upon the right of legal offset. Refer to Note V for a detailed disclosure by individual fund for interfund receivables, payables, expenditures, and revenues activity. H.

Estimates

I.

AF T

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are made in a variety of areas, including computation of encumbrances, compensated absences, potential contingent liabilities and useful lives of long-lived assets. Cash and Cash Equivalents

The District’s cash and cash equivalents consist of cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.

D

R

New York State Law governs the District’s investment policies. Resources must be deposited in FDICinsured commercial banks or trust companies located within the State. Permissible investments include obligations of the United States Treasury, United States Agencies, repurchase agreements and obligations of New York State or its localities.

Investments

1S

J.

T

Collateral is required for demand and time deposits and certificates of deposit not covered by FDIC insurance. Obligations that may be pledged as collateral are obligations of the United States and its agencies and obligations of the State and its municipalities and Districts.

The District participates in the New York Cooperative Liquid Assets Securities System (NYCLASS) local government investment pool. NYCLASS measures its investments at fair value in accordance with Paragraph 41 of GASB Statement 79 and Paragraph 11 of GASB Statement 31, and therefore a participant’s investment in NYCLASS is not required to be categorized within the fair value hierarchy for purposes of 81a(2) of GASB Statement 72. Investments are stated at fair value which is the price that would be received to sell an investment in an orderly transaction at year end. The District participates in pooled investments and U.S. Treasury’s. K.

Receivables

Receivables are shown net of an allowance for uncollectible accounts, when applicable. In addition, the District will report a receivable relating to a lease arrangement. The receivable is recorded at the present value of the future payments and recognized over the life of the lease.

30

( I. ) (Continued) L.

Inventory and Prepaid Items

Inventories of food and/or supplies for school lunch are recorded at cost on a first-in, first-out basis or, in the case of surplus food, at stated value which approximates market. Purchases of inventoriable items in other funds are recorded as expenditures at the time of purchase and are considered immaterial in amount. Prepaid items represent payments made by the District for which benefits extend beyond year end. These payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the District-wide and fund financial statements. These items are reported as assets on the Statement of Net Position or balance sheet using the consumption method. A current asset for the prepaid amounts is recorded at the time of purchase and an expense/expenditure is reported in the year the goods or services are consumed.

M.

AF T

A nonspendable fund balance for these non-liquid assets (inventories and prepaid items) has been recognized to signify that a portion of fund balance is not available for other subsequent expenditures. Capital Assets

In the District-wide financial statements, capital assets are accounted for at historical cost or estimated historical cost if actual is unavailable, except for donated capital assets which are recorded at their acquisition value at the date of donation.

D

R

Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives and capitalization threshold by type of assets is as follows:

T

Class

1S

Buildings Machinery and Equipment

Capitalization Threshold $ 50,000 $ 5,000

Depreciation Method SL SL

Estimated Useful Life 15-50 Years 5-25 Years

The investment in infrastructure type assets have not been segregated for reporting purposes since all costs associated with capital projects are consolidated and reported as additions to buildings and improvements. N.

Right To Use Assets

The District-wide financial statements, right-to-use-assets are reported within the major class of the underlying asset and valued at the future minimum lease payment. Amortization is between 2 and 5 years based on the contract terms and/or estimated replacement of the assets. O.

Unearned Revenue

The District reports unearned revenues on its Statement of Net Position and its Balance Sheet. On the Statement of Net Position, unearned revenue arises when resources are received by the District before it has legal claim to them, as when grant monies are received prior to incurrence of qualifying expenditures. In subsequent periods, when the District has legal claim to resources, the liability for unearned revenue is removed and revenue is recognized.

31

( I. ) (Continued) P.

Deferred Outflows and Inflows of Resources

In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expenses/expenditure) until that time. In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Vested Employee Benefits 1.

Compensated Absences

AF T

Q.

The District, based on policy and/or various negotiated labor or employment contracts, recognizes a liability for compensated absences for leave time that: has been earned for services previously rendered by employees. has accumulated and is allowed to be carried over into subsequent years. is more likely than not to be used as time off or settled (for example paid in cash to the employee or as a payment to an employee 403b or medical spending account) during or upon separation from employment.

R

(a) (b) (c)

1S

T

D

Based on the criteria listed, only vacation leave, sick leave and sick leave banks meet the qualifications to be recognized as a liability for compensated absences. The total long-term estimated liability for compensated absences is reported as incurred in the District-wide financial statements. The short-term liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements. The liability for compensated absences includes salary-related benefits, where applicable. Consistent with GASB Statement 101, Compensated Absences, the liability has been calculated using the more likely than not to be used as leave or settled at separation method with the compensated absences liability being calculated based on the pay rates in effect at year end. R.

Other Benefits

District employees participate in the New York State Employees’ Retirement System and the New York State Teachers’ Retirement System. In addition to providing pension benefits, the District provides post-employment health coverage to retired employees in accordance with the provision of various employment contracts in effect at the time of retirement. Substantially all of the District’s employees may become eligible for these benefits if they reach normal retirement age while working for the District. Health care benefits are provided through plans whose premiums are based on the benefits paid during the year. The cost of providing post-retirement benefits may be shared between the District and the retired employee. The District recognizes the cost of providing health insurance by recording its share of insurance premiums as an expenditure.

32

( I. ) (Continued) S.

Short-Term Debt

The District may issue Bond Anticipation Notes (BANs), in anticipation of proceeds from the subsequent sale of bonds. These notes are recorded as current liabilities of the funds that will actually receive the proceeds from the issuance of bonds. State law requires that a BAN issued for capital purposes be converted to long-term financing within five years after the original issue date. T.

Accrued Liabilities and Long-Term Obligations

Payables, accrued liabilities, and long-term obligations are reported in the District-wide financial statements. In the governmental funds, payables and accrued liabilities are paid in a timely manner and in full from current financial resources. Claims and judgments, other postemployment benefits payable and compensated absences that will be paid from governmental funds are reported as a liability in the funds financial statements only to the extent that they are due for payment in the current year. Bonds and other long-term obligations that will be paid from governmental funds are recognized as a liability in the fund financial statements when due.

Equity Classifications 1.

District-wide Statements

R

In the District-wide statements there are three classes of net position:

D

a. Net Investment in Capital Assets - consists of net capital assets (cost less accumulated depreciation) reduced by outstanding balances of related debt obligations from the acquisition, constructions or improvements of those assets.

T

b. Restricted Net Position - reports net position when constraints placed on the assets or deferred outflows of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation.

1S

U.

AF T

Long-term obligations represent the District’s future obligations or future economic outflows. The liabilities are reported as due in one year or due within more than one year in the Statement of Net Position.

On the Statement of Net Position the following balances represent the restricted for other purposes: Total Capital Projects $ 645,942 Workers' Compensation Reserves 5,054,939 Unemployment Costs 1,234,563 Reserve for Property Loss 1,000,000 Insurance Reserve 6,037,268 Tax Certiorari Reserve 5,051,088 Reserve for Teacher Retirement System 6,800,225 Scholarships 129,813 Debt Service Reserve 5,065,638 Liability Reserve 6,054,843 Employee Benefit Accrued Liability Reserve 1,047,061 Total Net Position - Restricted for Other Purposes $ 38,121,380 33

( I. ) (Continued) c. Unrestricted Net Position - reports the balance of net position that does not meet the definition of the above two classifications . The reported deficit of $265,003,977 at year end is the result of full implementation of GASB #75 regarding retiree health obligations and the New York State Pension system unfunded pension obligation. 2.

Fund Statements

In the fund basis statements, there are five classifications of fund balance: a. Nonspendable Fund Balance – Includes amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact. Nonspendable fund balance includes inventory in School Lunch of $173,984.

AF T

b. Restricted Fund Balances – Includes amounts with constraints placed on the use of resources either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or imposed by law through constitutional provisions or enabling legislation. All encumbrances of funds other than the General Fund are classified as restricted fund balance. The District has established the following restricted fund balances:

D

R

1S

T

34

( I. ) (Continued) Teachers’ Retirement Reserve – General Municipal Law §6-r was amended to include a Teachers’ Retirement Reserve (TRS) sub-fund. The reserve has an annual funding limit of 2% of the prior year TRS salaries and a maximum cumulative total balance of 10% of the previous year’s TRS salary.

AF T

R

Property Loss & Liability Reserves - According to General Municipal Law §1709(8)(c), must be used to pay for property loss and liability claims incurred. Separate funds for property loss and liability claims are required, and these reserves may not in total exceed 3% of the annual budget or $15,000, whichever is greater.

T

D

1S

35

( I. ) (Continued) Workers’ Compensation Reserves- According to General Municipal Law ̕§6-j, must be used to pay for compensation benefits and other expenses authorized by Article 2 of the Workers’ Compensation Law, and for payment of expenses of administering this self-insurance program. The reserve may be established by Board action, and is funded by budgetary appropriations and such other funds as may be legally appropriated. Within sixty days after the end of any fiscal year, excess amounts may either be transferred to another reserve or the excess applied to the appropriations of the next succeeding fiscal year’s budget.

AF T

$

1S

T

D

R

General Fund Workers' Compensation Reserve Unemployment Costs Retirement Contribution - ERS Retirement Contribution - TRS Insurance Reserve Tax Certiorari Reserve Liability Reserve Capital Reserves Reserve for Property Loss Employee Benefit Accrued Liability Reserve Capital Projects Fund Restricted Capital Projects Miscellaneous Special Revenue Fund Scholarships Debt Service Fund Debt Service Reserve Total Restricted Fund Balance

Total 5,054,939 1,234,563 12,109,513 6,800,225 6,037,268 5,051,088 6,054,843 9,066,478 1,000,000 1,047,061 712,795 129,813

$

5,065,638 59,364,224

The District has appropriated the following reserves as part of the 2026-27 budget:

Retirement Contribution ERS Retirement Contribution TRS Total

36

Total $ 1,500,000 1,500,000 $ 3,000,000

( I. ) (Continued) c. Committed - Includes amounts that can only be used for the specific purposes pursuant to constraints imposed by formal action of the school districts highest level of decision making authority, i.e., the Board of Education. The District has no committed fund balances as of June 30, 2026. d. Assigned Fund Balance – Includes amounts that are constrained by the District’s intent to be used for specific purposes, but are neither restricted nor committed. All encumbrances of the General Fund are classified as assigned fund balance. Encumbrances represent purchase commitments made by the District’s purchasing agent through their authorization of a purchase order prior to year-end. The District assignment is based on the functional level of expenditures. Management has determined significant encumbrances for the General Fund to be $780,000, the Capital Projects Fund to be $67,000 and Nonmajor funds to be $62,000..

AF T

The Capital Projects Fund has $_______ in significant contracts for capital projects. Assigned fund balances include the following:

D

R

General Fund - Encumbrances General Fund - Appropriated for Taxes Special Aid Fund - Community Programs School Lunch Fund - Year End Equity Total Assigned Fund Balance

Total $ 288,502 5,500,000 673,877 1,592,606 $ 8,054,985

1S

T

e. Unassigned Fund Balance –Includes all other General Fund amounts that do not meet the definition of the above four classifications and are deemed to be available for general use by the school district and could report a surplus or deficit. In funds other than the General Fund, the unassigned classification is used to report a deficit fund balance resulting from overspending for specific purposes for which amounts had been restricted or assigned. NYS Real Property Tax Law 1318 limits the amount of unexpended surplus funds a school district can retain to no more than 4% of the District’s budget for the General Fund for the ensuing fiscal year. Nonspendable and restricted fund balance of the General Fund are excluded from the 4% limitation. Amounts appropriated for the subsequent year and encumbrances are also excluded from the 4% limitation.

3.

Order of Use of Fund Balance

The District’s policy is to apply expenditures against nonspendable fund balance, restricted fund balance, committed fund balance, assigned fund balance, and unassigned fund balance at the end of the fiscal year. For all funds, nonspendable fund balances are determined first and then restricted fund balances for specific purposes are determined. Any remaining fund balance amounts for funds other than the General Fund are classified as restricted fund balance. In the General Fund, the remaining amounts are reported as unassigned. Assignments of fund balance cannot cause a negative unassigned fund balance. 37

( I. ) (Continued) V.

New Accounting Standards

The District has adopted all current Statements of the Governmental Accounting Standards Board (GASB) that are applicable. At June 30, 2026, the District implemented the following new standards issued by GASB: GASB has issued Statement No. 103, Financial Reporting Model Improvements. GASB has issued Statement No. 104, Disclosure of Certain Capital Assets. W.

Future Changes in Accounting Standards

GASB has issued Statement No. 105, Subsequent Events, which will be effective for fiscal years beginning after June 15, 2026.

II.

AF T

The District will evaluate the impact this pronouncement may have on its financial statements and will implement it as applicable and when material. Stewardship, Compliance and Accountability

Budgets

D

A.

R

By its nature as a local government unit, the District is subject to various federal, state and local laws and contractual regulations. An analysis of the District’s compliance with significant laws and regulations and demonstration of its stewardship over District resources follows.

T

The District administration prepares a proposed budget for approval by the Board of Education for the General Fund.

1S

The voters of the District approved the proposed appropriation budget. Appropriations established by adoption of the budget constitute a limitation on expenditures (and encumbrances) which may be incurred. Appropriations lapse at the end of the fiscal year unless expended or encumbered. Encumbrances will lapse if not expended in the subsequent year. Appropriations authorized for the current year are increased by the planned use of specific reserves, and budget amendments approved by the Board of Education as a result of selected new revenue sources not included in the original budget (when permitted by law). These supplemental appropriations may occur subject to legal restriction, if the Board approves them because of a need which exists which was not determined at the time the budget was adopted. During 2025-26, the budget was increased $171,893 for carryover encumbrances. Budgets are adopted annually on a basis consistent with GAAP. Appropriations authorized for the year are increased by the amount of encumbrances carried forward from the prior year. Budgets are established and used for individual Capital Projects Fund expenditures as approved by a special referendum of the District’s voters. The maximum project amount authorized is based primarily upon the cost of the project, plus any requirements for external borrowings, not annual appropriations. These budgets do not lapse and are carried over to subsequent fiscal years until the completion of the projects. 38

( II. ) (Continued) B.

Encumbrances

Encumbrance accounting is used for budget control and monitoring purposes and is reported as a part of the governmental funds. Under this method, purchase orders, contracts, and other commitments for the expenditure of monies are recorded to reserve applicable appropriations. Outstanding encumbrances as of yearend are presented as reservations of fund balance and do not represent expenditures or liabilities. These commitments will be honored in the subsequent period. Related expenditures are recognized at that time, as the liability is incurred, or the commitment is paid. C.

Deficit Net Position

D.

AF T

The District-wide net position had a deficit at June 30, 2026 of $107,623,382. The deficit is the result of the implementation of GASB Statement 75, “Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions”, which required the recognition of an unfunded liability of $254,267,087 at June 30, 2026. Since New York State Laws provide no mechanism for funding the liability, the subsequent accruals are expected to increase the deficit. Deficit Fund Balance – Capital Projects Fund

III.

Cash and Investments

D

R

The Capital Projects Fund had a deficit fund balance of $19,532,488 at June 30, 2026, which is a result of bond anticipation notes which are used as a temporary means of financing capital projects. These proceeds are not recognized as revenue but merely serve to provide cash to meet expenditures. This results in the creation of a fund deficit which will remain until the notes are replaced by permanent financing (i.e., bonds, grants-in-aid, or redemption from current appropriations).

1S

T

( III. ) (Continued) Interest Rate Risk: The District has an investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from rising interest rates. NYCLASS: The dollar weighted average days to maturity (WAM) of NYCLASS at June 30, 2026, was 40.84 days. The weighted average life (WAL) of NYCLASS at December 31, 2025 was 79.99 days. The WAM of NYCLASS Prime at June 30, 2026 was 39.11 days and the WAL was 60.46 days. A.

Cash

The District’s aggregate bank balances (disclosed in the financial statements), included balances not covered by depository insurance at year end, collateralized as follows:

B.

$

4,807,595 37,453,840 42,261,435

AF T

Uncollateralized Collateralized with Securities held by the Pledging Financial Institution Collateralized within Trust Department or Agent Total

Investments

$

R

The District’s investments are recorded at fair value and have been categorized based upon a fair market value.

D

The following table presents information about the District’s investments measured at fair value as of June 30, 2026:

Fair Value $ 6,017,690

Due Within One Year $ 6,017,690

Level 1

1S

T

Investments US Treasury Bills

The fair value measurements of the investments noted above have been classified by the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the investments. The levels of the fair value hierarchy are as follows: Level 1 – Quoted price for identical assets in an active market. Level 2 – (A) Quoted princes for similar assets or liabilities in active markets; (B) Quoted prices for identical or similar assets or liabilities in markets that are not active; (C) Inputs other than quoted prices that are observable for the assets or liability, such as (1) invest rates and yield curves observable at commonly quoted intervals (2) implied volatilities (3) credit spreads; (D) Marketcorroborated inputs. Level 3 – Unobservable inputs for an asset or liability are significant to the fair value measurement.

40

( III. ) (Continued) C.

Investment Pool

The District participates in a multi-municipal cooperative investment pool agreement pursuant to New York State General Municipal Law Article 5-G, §119-O, whereby it holds a portion of the investments in cooperation with other participants. Total investments of the cooperative as of year end are $1,310,644, which consisted of $280,347 in repurchase agreements, $950,479 in U.S. Treasury Securities, $24,116 in FDIC insured deposits and $55,702 in collateralized bank deposits, with various interest rates and due dates.

Fund General Fund

Fair Value $ 1,310,644

Type of Invesment NYCLASS

AF T

The balance of the District’s investments at June 30, 2026 are as follows: Other NYCLASS US Treasury Bills Total

$

$

135 1,310,644 6,017,690 7,328,469

IV.

Receivables

T

D

R

1S

Receivables at June 30, 2026 for individual major funds and nonmajor funds, including the applicable allowances for uncollectible accounts, are as follows:

Description Accounts Receivable Due From State and Federal Due From Other Governments Total Receivables

$

$

Governmental Activities General Capital Projects Nonmajor Fund Fund Funds 36,952 $ $ 135,927 3,600,735 137,920 5,551,545 7,156,493 10,794,180 $ 137,920 $ 5,687,472

District management has deemed the amounts to be fully collectible.

41

Total 172,879 9,290,200 7,156,493 $ 16,619,572 $

V.

Interfund Receivables, Payables, Revenues and Expenditures

Interfund Receivables, Payables, Revenues and Expenditures at June 30, 2026 were as follows:

Receivables 30,313,735 16,937,366 10,930,001 $ 58,181,102

General Fund Capital Projects Fund Nonmajor Funds Total

$

Interfund Payables Revenues $ 29,560,009 $ 20,408,920 728,811 8,212,173 724,277 $ 58,181,102 $ 1,453,088

Expenditures $ 1,079,430 373,658 $ 1,453,088

Interfund receivables and payables between governmental activities are eliminated on the Statement of Net Position. The District typically loans resources between funds for the purpose of mitigating the effects of transient cash flow issues. All interfund payables are not necessarily expected to be repaid within one year.

VI.

AF T

Transfers are used to finance certain special aid programs, support capital project expenditures and debt service expenditures. Capital Assets and Lease Assets A.

Capital Assets

Balance 7/1/2025

D

R

Capital asset balances and activity were as follows:

1S

Total Capital Assets

Deletions

2,147,912 21,114,168 23,262,080

$

21,864,674 $ 21,864,674

$

12,769,038 $ 12,769,038

$

$ 335,252,680 22,482,678 $ 357,735,358

$

7,451,477 5,317,150 $ 12,768,627

$

217,966 217,966

$ 342,704,157 27,581,862 $ 370,286,019

$ 154,189,885 14,295,724 $ 168,485,609

$ 12,469,749 1,918,123 $ 14,387,872

$ $

217,966 217,966

$ 166,659,634 15,995,881 $ 182,655,515

$ 189,249,749

$ (1,619,245)

$

-

$ 187,630,504

$ 212,511,829

$ 20,245,429

$ 12,769,038

$ 219,988,220

T

$

Additions

Balance 6/30/2026

$

42

$

$

2,147,912 30,209,804 32,357,716

( VI. ) (Continued) B.

Lease Assets

A summary of the lease and Subscription IT Assets activity during the year ended June 30, 2026 is as follows: Balance 7/1/2025

Type

C.

$ 10,229,603 7,142,098 $ 3,087,505

$

$

$

$

235,635 113,784 121,851

$

3,209,356

$ 4,000,996 4,000,996 $ -

$

$ $

-

$

$

335,800 152,325 183,475

$

571,435 266,109 305,326

$

2,661,789

$

-

$

5,871,145

$

11,590,666 6,024,847 5,565,819

$

$

R

$

187,630,504 5,871,145 193,501,649

Depreciation/Amortization expense for the period was charged to functions/programs as follows: Depreciation $ 227,184 11,854,992 1,862,204 443,492

Amortization $ 3,036,070 -

$ 14,387,872

$ 3,036,070

1S

T

D

VII.

5,362,059 2,883,745 2,478,314

Other Capital Assets (net of depreciation and amortization): Depreciated Capital Assets (net) Amortized Lease Assets (net) Total Other Capital Assets (net)

D.

Balance 6/30/2026

Deletions

AF T

Additions

$

$

Total 227,184 14,891,062 1,862,204 443,492 17,423,942

Short-Term Debt

Transactions in short-term debt for the year are summarized below: Maturity BAN-Construction 7/16/2026 Total Short-Term Debt

Interest Rate 4.00%

Balance 7/1/2025 -

$

Additions 15,000,000 $ 15,000,000

The short-term interest expense for June 30, 2026 was composed of:

Interest Accrued in the Current Year Total Short-Term Interest Expense

43

$ $

573,333 573,333

Deletions $

-

Balance 6/30/2026 15,000,000 $ 15,000,000

VIII.

Long-Term Debt Obligations

Long-term liability balances and activity for the year are summarized below: Balance 7/1/2025

Total Long-Term Obligations

$ $

100,120,000 8,314,986 1,367,393 109,802,379

$

$

7,550,000 680,172 2,341,591 $ 10,571,763

$

$

$

$

6,766,456 6,766,456

$ 17,338,219

$

$

33,382,748 757,267 831,141 34,971,156

$

374,485,354

$

42,520,336

Original Amount

$

$

$

$

3,501,261 254,267,087 817,915 34,301,412 292,887,675

$

$

399,667,471

$ 15,774,767

Interest Rate

2017 2020 2021 2022 2023 2023 2024 2024 2025 2025 2026

2031 2035 2040 2027 2037 2028 2029 2039 2029 2040 2033

2%-5% 4%-5% 2.00% 1.00%-2.25% 5.00% 4.00% 4.00% 5.00% 3.25%-3.50% 5.00% 3.00%-4.00%

Various

44

Various

Due Within One Year

94,920,000 7,634,814 4,224,982 106,779,796

Final Maturity

D

T $ 11,853,796

$

Issue Date

R

$ 7,805,000 $ 16,475,000 $ 23,420,000 $ 1,566,000 $ 17,305,000 $ 1,687,500 $ 1,600,000 $ 18,285,000 $ 1,200,000 $ 27,220,000 $ 2,350,000

$

2,350,000 5,199,180 7,549,180

10,267,717 220,884,339 60,648 33,470,271 264,682,975

1S

Description Serial Bonds Renovations Construction Construction Bus Purchases Construction Bus Purchases Bus Purchases Construction Bus Purchases Construction Bus Purchases Total Serial Bonds Leases Various Leases

$

Balance 6/30/2026

Deletions

AF T

Additions

0.05%-4.99%

8,195,000 680,172 2,266,224 $ 11,141,396 817,915 3,815,456 4,633,371

Amount Outstanding 6/30/2026 $

$

3,415,000 11,130,000 17,650,000 330,000 14,725,000 710,000 1,005,000 16,775,000 995,000 25,835,000 2,350,000 94,920,000

$

4,224,982

( VIII. ) (Continued) The following is a summary of debt service requirements:

Year 2027 2028 2029 2030 2031 2032-36 2037-40 Total

Serial Bonds Principal Interest $ 8,195,000 $ 4,133,594 7,965,000 3,752,634 7,825,000 3,414,500 7,935,000 3,080,263 7,830,000 2,735,050 $35,420,000 8,749,400 $19,750,000 1,741,300 $ 94,920,000 $ 27,606,741

Leases Principal Interest $ 2,266,224 $ 96,515 1,757,031 10,869 98,642 4,725 103,085 $ 4,224,982 $ 112,108

AF T

Interest on long-term debt for June 30, 2026 was composed of: Interest Paid Less: Interest Accrued in the Prior Year Plus: Interest Accrued in the Current Year Less: Amortization of Bond Premium Total Long-Term Interest Expense

R

$

4,943,609 (248,075) 209,930 (680,172) 4,225,292

Deferred Inflows/Outflows of Resources

D

IX.

$

The following is a summary of the deferred inflows/outflows of resources:

T

Deferred Outflows $ 35,419,830 57,936,303 $ 93,356,133

1S

Pension OPEB Total

X.

Deferred Inflows $ 26,609,108 80,733,529 $ 107,342,637

Pension Plans A.

General Information

The District participates in the New York State Teacher’s Retirement System (TRS) and the New York State and Local Employee’s Retirement System (ERS). These are cost-sharing multiple employer public employee retirement systems. The Systems offer a wide range of plans and benefits, which are related to years of service and final average salary, vesting of retirement benefits, death, and disability.

45

( X. ) (Continued) B.

Provisions and Administration

A 10-member Board of Trustees of the New York State Teachers’ Retirement Board administers TRS. TRS provides benefits to plan members and beneficiaries as authorized by the Education Law and the New York State Retirement and Social Security Law (NYSRSSL). Membership is mandatory and automatic for all full-time teachers, teaching assistants, guidance counselors and administrators employed in New York Public Schools and BOCES who elected to participate in TRS. Once a public employer elects to participate in the system, the election is irrevocable. The New York State Constitution provides that pension membership is a contractual relationship and plan benefits cannot be diminished or impaired. Benefits can be changed for future members only by enactment of a State statute. TRS issues a publicly available financial report that contains financial statements and required supplementary information. The report may be obtained by writing to NYSTRS, 10 Corporate Woods Drive, Albany, New York 12211-2395 or by referring to the TRS Comprehensive Annual Financial report, which can be found on the System’s website at www.nystrs.org.

Funding Policies

1S

C.

T

D

R

AF T

ERS provides retirement benefits as well as death and disability benefits. The net position of the System is held in the New York State Common Retirement Fund (the Fund), which was established to hold all net assets and record changes in plan net position allocated to the System. The Comptroller of the State of New York serves as the trustee of the Fund and is the administrative head of the System. NYSRSSL govern obligations of employers and employees to contribute, and benefits to employees. Once a public employer elects to participate in the System, the election is irrevocable. The New York State Constitution provides that pension membership is a contractual relationship and plan benefits cannot be diminished or impaired. Benefits can be changed for future members only by enactment of a State statute. The District also participates in the Public Employees’ Group Life Insurance Plan (GLIP), which provides death benefits in the form of life insurance. The System is included in the State’s financial report as a pension trust fund. ERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to NYSERS, Office of the State Comptroller, 110 State Street, Albany, New York 12244 or by referring to the ERS Comprehensive Annual Report, which can be found at www.osc.state.ny.us/retire/publications/index.php.

The Systems are noncontributory except for employees who joined after July 27, 1976, who contribute 3% of their salary for the first ten years of membership, and employees who joined on or after January 1, 2010 who generally contribute 3.0 to 3.5% of their salary for their entire length of service. In addition, employee contribution rates under ERS Tier 6 vary based on a sliding salary scale. For TRS, contribution rates are established annually by the New York State Teachers’ Retirement Board pursuant to Article 11 of the Education Law. For ERS, the Comptroller annually certifies the actuarially determined rates expressly used in computing the employers’ contributions for the ERS’ fiscal year ended March 31. The District paid 100% of the required contributions as billed by the TRS and ERS for the current year. The District’s share of the required contributions, based on covered payroll paid for the District’s year ended June 30, 2026: Contributions 2026

ERS $ 3,807,967

46

TRS $ 8,668,581

( X. ) (Continued) D.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources related to Pensions

At June 30, 2026, the District reported the following asset/(liability) for its proportionate share of the net pension asset /(liability) for each of the Systems. The net pension asset/(liability) was measured as of March 31, 2026 for ERS and June 30, 2025 for TRS. The total pension asset/(liability) used to calculate the net pension asset/(liability) was determined by an actuarial valuation. The District’s proportion of the net pension asset/(liability) was based on a projection of the District’s long-term share of contributions to the Systems relative to the projected contributions of all participating members, actuarially determined. This information was provided by the TRS and ERS Systems in reports provided to the District. Measurement date

ERS March 31, 2026

Net pension asset/(liability)

$

District's portion of the Plan's total net pension asset/(liability)

TRS June 30, 2025

(3,501,261)

$

24,678,808

AF T

0.0621%

0.4168%

For the year ended June 30, 2026, the District recognized pension expenses of $4,002,290 for ERS and ($1,437,800) for TRS. At June 30, 2026, the District’s reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

D

Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between the District's contributions and proportionate share of contributions Subtotal

R

Deferred Outflows of Resources ERS TRS

2,003,627 601,012

$ 12,937,198 9,769,572

-

-

841,270 3,445,909

287,567 $ 22,994,337

1,233,376

7,746,208

4,679,285

$ 30,740,545

1S

T

$

$

District's contributions subsequent to the measurement date

Grand Total

$

47

$

$

$

Deferred Inflows of Resources ERS TRS -

$

266,078

6,277,955

19,274,088

255,073 6,533,028

535,914 $ 20,076,080

-

-

6,533,028

$ 20,076,080

( X. ) (Continued) District contributions subsequent to the measurement date which will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ERS TRS 2026 $ $ 12,403,311 2027 1,537,718 (5,339,858) 2028 (2,124,860) (5,587,428) 2029 (1,208,940) (1,181,629) 2030 (1,291,037) 2,155,337 Thereafter 468,524 Total $ (3,087,119) $ 2,918,257 Actuarial Assumptions

AF T

E.

The total pension liability as of the measurement date was determined by using an actuarial valuation as noted in the table below, with update procedures used to roll forward the total pension liability to the measurement date. The actuarial valuations used the following actuarial assumptions: Measurement date

April 1, 2025

June 30, 2024

5.90%

6.95%

5.20%

2.04%-5.80%

April 1, 2020March 31, 2025 System's Experience

July 1, 2019June 30, 2024 System's Experience

2.90%

2.50%

1.50%

1.40%

D

Interest rate Salary scale

TRS June 30, 2025

R

Actuarial valuation date

ERS March 31, 2026

T

Decrement tables

1S

Inflation rate COLA's

For ERS, annuitant mortality rates are based on April 1, 2020 – March 31, 2025 System experience with adjustments for mortality improvements based on the Society of Actuaries’ Scale MP-2021. For TRS, annuitant mortality rates are based on plan member experience adjustments for mortality improvements based on Society of Actuaries Scale MP-2021. The long-term rate of return on pension plan investments was determined using a building block method in which best estimate ranges of expected future real rates of return (expected returns net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of the arithmetic real rates of return for each major asset class included in the target asset allocation as of March 31, 2026 or ERS and June 30, 2025 for TRS are summarized as follows:

48

( X. ) (Continued) Long Term Expected Rate of Return ERS Measurement date March 31, 2026 3.29% 5.85% N/A 7.00% 5.20% 5.13% 5.54% N/A 0.25% N/A N/A N/A N/A 1.75% 5.10%

6.70% 7.40% 7.00% 9.80% 6.50% N/A N/A 2.40% 0.60% 6.10% 3.80% 4.70% 2.60% N/A N/A

AF T

Asset Type Domestic equity International equity Global equity Private equity Real estate Opportunistic portfolios Real assets Global bonds Cash Private debt Real estate debt High-yield bonds Domestic fixed income Fixed income Credit

TRS June 30, 2025

Discount Rate

D

F.

R

The real rate of return is net of the long-term inflation assumption of 2.90% for ERS and 2.50% for TRS.

G.

1S

T

The discount rate used to calculate the total pension liability was 5.90% for ERS and 6.95% for TRS. The projection of cash flows used to determine the discount rate assumes that contributions from plan members will be made at the current contribution rates and that contributions from employers will be made at statutorily required rates, actuarially. Based upon the assumptions, the Systems’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Net Pension Liability to the Discount Rate Assumption

The following presents the District’s proportionate share of the net pension liability calculated using the discount rate of 5.90% for ERS and 6.95% for TRS, as well as what the District’s proportionate share of the net pension asset/(liability) would be if it were calculated using a discount rate that is 1-percentage-point lower (4.90% for ERS and 5.95% for TRS) or 1-percentage-point higher (6.90% for ERS and 7.95% for TRS) than the current assumption:

49

( X. ) (Continued)

TRS Employer's proportionate share of the net pension asset (liability)

H.

1% Decrease (4.90%)

1% Increase (6.90%)

$ (23,912,654)

$ (3,501,261)

$ 13,563,567

1% Decrease (5.95%)

Current Assumption (6.95%)

1% Increase (7.95%)

$ (47,420,643)

$ 24,678,808

$ 85,346,745

Pension Plan Fiduciary Net Position

AF T

ERS Employer's proportionate share of the net pension asset (liability)

Current Assumption (5.90%)

The components of the current year net pension asset/(liability) of the employers as of the respective valuation dates, were as follows:

R

(In Thousands) ERS TRS March 31, 2026 June 30, 2025 $ 253,773,040 $ 148,272,069 248,131,290 154,193,125 $ (5,641,750) $ 5,921,056

D

Measurement date Employers' total pension liability Plan net position Employers' net pension asset/(liability)

97.78%

104.00%

Payables to the Pension Plan

1S

I.

T

Ratio of plan net position to the employers' total pension asset/(liability)

For ERS, employer contributions are paid annually based on the System’s fiscal year which ends on March 31st. Accrued retirement contributions as of June 30, 2026 represent the projected employer contribution for the period of April 1, 2026 through June 30, 2026 based on paid ERS wages multiplied by the employer’s contribution rate, by tier. Accrued retirement contributions as of June 30, 2026 amounted to $1,233,376. For TRS, employer and employee contributions for the fiscal year ended June 30, 2026 are paid to the System in September, October and November 2026 through a state aid intercept. Accrued retirement contributions as of June 30, 2026 represent employee and employer contributions for the fiscal year ended June 30, 2026 based on paid TRS wages multiplied by the employer’s contribution rate, by tier and employee contributions for the fiscal year as reported to the TRS System. Accrued retirement contributions as of June 30, 2026 amounted to $8,668,581.

50

Postemployment Benefits A.

General Information About the OPEB Plan

Inactive employees or beneficiaries currently receiving benefit payments

1,503

AF T

1,677

Active Employees

Total B.

Total OPEB Liability

3,180

R

The District’s total OPEB liability of $254,267,087 was measured as of June 30, 2026, and was determined by an actuarial valuation as of that date.

D

2.30%

T

Inflation

Salary Increases

3.30%, average, including inflation

Discount Rate

4.41%

Healthcare Cost Trend Rates

Initial rate of 6.10% decreasing to an ultimate rate of 3.70%

Retirees' Share of Benefit-Related Costs

Varies depending on contract

1S

XI.

The discount rate was based on the Bond Buyer General Obligation 20-year Municipal Bond index. Pub-2010 Public Retirement Plans Mortality Tables, Headcount-Weighted, distinct for Teachers, General, and Safety, without separate Contingent Survivor mortality, fully generational using scale MP-2021.

51

( XI. ) (Continued) C.

Changes in the Total OPEB Liability

Balance at June 30, 2025 Changes for the Year Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes in assumptions or other inputs Benefit payments Net Changes Balance at June 30, 2026

$

220,884,339

$

4,831,578 9,463,248 8,615 31,120,102 (1,888,619) (10,152,176) 33,382,748 254,267,087

$ $

  

AF T

Changes of assumptions and other inputs reflect the following:

The Single Discount Rate changed from 4.39% to 4.41% effective June 30, 2026. Updated Base Mortality Rate Tables effective June 30, 2026. Updated healthcare cost trend rates effective June 30, 2026.

D

R

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate – The following presents the total OPEB liability of the District, as well as what the District’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.41%) or 1-percentage-point higher (5.41%) than the current discount rate:

T

1% Decrease (3.41%) $ 286,323,690

1% Increase (5.41%) $ 227,738,172

1S

Total OPEB Liability

Discount Rate (4.41%) $ 254,267,087

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates – The following presents the total OPEB liability of the District, as well as what the District’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentagepoint higher than the current healthcare cost trend rate:

Total OPEB Liability

1% Decrease (5.10% Increasing to 2.70%) $ 224,471,298

52

Healthcare Cost Trend Rates (6.10% Increasing to 3.70%) $ 254,267,087

1% Increase (7.10% Increasing to 4.70%) $ 290,834,495

( XI. ) (Continued) D.

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

For the year ended June 30, 2026, the District recognized OPEB expense of ($169,514). At June 30, 2026, the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Inflows of Resources

$

$

55,398,259 2,538,044 57,936,303

$

$

54,644,772 26,088,757 80,733,529

AF T

Differences between expected and actual experience Changes of assumptions Contributions after measurement date Total

Deferred Outflows of Resources

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

$

(12,822,136) (13,202,382) (7,585,337) 4,518,220 3,756,365 (25,335,270)

Risk Management A.

1S

XII.

$

T

D

R

Year 2027 2028 2029 2030 2031 Total

General Information

The District is exposed to various risks of loss related to injuries to employees, theft, damages, natural disasters, etc. These risks are covered by commercial insurance purchased from independent third parties. Settled claims from these risks have not exceeded commercial insurance coverage for the past two years. B.

Health Plans

The District is a Participant of and incurs costs related to the Rochester Area School Health Plan (Plan I) and Rochester Area School Health Plan II Municipal Cooperative Health Benefit Plan (Plan II). Plan I and Plan II are sponsored by the Board of Cooperative Educational Services, Second Supervisory District of Monroe and Orleans Counties (Monroe 2-Orleans BOCES) and its component districts. Plan I and Plan II objectives are to formulate, develop and administer a program of insurance to obtain lower costs for that coverage, and to develop a comprehensive loss control program.

53

( XII. ) (Continued) 1.

Plan I

Plan I was established as a Municipal Cooperative under the authorization of Article 5-G of the General Municipal Law in 1986. Membership in Plan I may be offered to any component district of the Board of Cooperative Educational Services, First Supervisory District of Monroe County (Monroe 1 BOCES) or Monroe 2-Orleans BOCES with the unanimous approval of the Board of Directors. Membership of new Participants becomes effective on the first day of the calendar month following the adoption by the Board of Directors of the resolution to accept a new Participant. Current membership of Plan I includes nineteen (19) Participants with the Webster Central School District bearing an equal and proportionate share of Plan I’s assets and claim liabilities. Voluntary withdrawal from Plan I is subject to the following constraints: Effective only once annually on the last day of the Plan year. Notice of intention to withdrawal must be given in writing to the Chairman of the Board of Directors and Treasurer not less than thirty (30) days prior to the end of the Plan year. Failure to provide at least thirty (30) days’ notice, will result in continued membership in the plan for another year unless all other Participants consent to such withdrawal.

AF T

a. b.

D

R

Pursuant to the Municipal Cooperative Agreement, Plan I is a risk sharing pool and all monies paid to the Treasurer shall be pooled and administered as a common fund. No refunds shall be made to a Participant, and no assessments are charged to a Participant other than the annual premium equivalent. If surplus funds exist at the end of any fiscal year, the distribution of such funds shall be determined by the Board of Directors.

1S

T

Plan I purchases, on an annual basis, stop-loss insurance to limit exposure for claims paid. Plan I establishes a liability for both reported and unreported insured events, which includes estimates of both future payments of losses and related claim adjustment expenses. However, because actual claims costs depend on complex factors, the process used in computing claims liabilities does not necessarily result in an exact amount. Such claims are based on the ultimate cost of claims (including future claim adjustment expenses) that have been reported but not settled, and claims that have been incurred but not reported. Adjustments to claims liabilities are charged or credited to expenses in the periods in which they are made. During the year ended June 30, 2026, the District incurred premiums or contribution expenditures totaling $2,846,366. Plan I is audited on an annual basis and is available at the Monroe 2-Orleans BOCES administrative offices. The most recent audit available for the year ended December 31, 2025, revealed that Plan I is fully funded. 2.

Plan II

Plan II was established as a Municipal Cooperative under the authorization of Article 5-G of the General Municipal Law in 2004. Plan II received a Certificate of Authority to operate as a selffunded plan under Article 47 of the New York State Insurance Law, effective January 1, 2024.

54

( XII. ) (Continued) Membership in Plan II may be offered to any component school district of the Monroe 1 BOCES and Monroe 2-Orleans BOCES within the geographical boundaries of Monroe County, New York provided that the applicant provides proof of its financial responsibility that is satisfactory to the Board of Directors in its sole discretion, and the applicant is the same type of municipal corporation as the initial Participants. Membership of new Participants becomes effective on the first day of the calendar month following a majority vote of the entire Board of Directors and the adoption by the Board of Directors of a resolution to accept the municipal corporation as a Participant. Current membership of Plan II includes nineteen (19) Participants with the Webster Central School District bearing an equal and proportionate share of Plan II’s assets and claim liabilities. Voluntary withdrawal from Plan II is subject to the following constraints:

c. d.

AF T

b.

Effective only on January 1 of the next Plan Year following the Plan Year in which the Participant provides notice. Notice of intention of a Participant withdraw must be given in writing to the Chairperson and the Treasurer by April 1st of the Plan Year immediately preceding the January 1st withdrawal date. Failure to provide the required written notices in a timely manner will result in continued membership in Plan II for another year unless the Board of Directors consent to such withdrawal. Participant is responsible for pro-rata share of any Plan II deficit and shall satisfy any other obligation relating to the Participant’s membership in the Plan. Participant is not entitled to any share of Plan II surplus.

R

a.

1S

T

D

Pursuant to the Municipal Cooperative Agreement as signed by the Participants, Plan II is a risk sharing pool and all monies paid to the Treasurer shall be pooled and administered as a common fund. The annual premium equivalent for each coverage option under Plan II is established and approved by a majority of the entire Board of Directors. Each Participant is required to contribute to Plan II an amount equal to the Premium Equivalent applicable to the coverage options, under which the Participants Enrollees are covered. In addition to paying on demand their applicable Premium Equivalent payments, each Participant shall pay on demand such Participant’s share of any Assessment Contribution ordered by the Board of Directors. If surplus funds exist at the end of any fiscal year, the distribution of such funds shall be determined by the Board of Directors. Plan II purchases, on an annual basis, stop-loss insurance to limit exposure for claims paid. Plan II establishes a liability for both reported and unreported insured events, which includes estimates of both future payments of losses and related claim adjustment expenses. However, because actual claims costs depend on complex factors, the process used in computing claims liabilities does not necessarily result in an exact amount. Such claims are based on the ultimate cost of claims (including future claim adjustment expenses) that have been reported but not settled, and claims that have been incurred but not reported. Adjustments to claims liabilities are charged or credited to expenses in the periods in which they are made. During the year ended June 30, 2026, the District incurred premiums or contribution expenditures totaling $33,848,076. Plan II is audited on an annual basis and is available at the Monroe 2-Orleans BOCES administrative offices. The most recent audit available for the year ended December 31, 2025, revealed that the Plan is fully funded.

55

( XII. ) (Continued) C.

Workers’ Compensation

The District is a Participant in the Rochester Area School Workers’ Compensation Plan (Plan). The Plan is sponsored by the Board of Cooperative Educational Services, Second Supervisory District of Monroe and Orleans Counties (Monroe 2-Orleans BOCES) and its component districts. The Plan’s objectives are to furnish workers’ compensation benefits to participating districts at a significant cost savings and to provide for risk management to reduce future liability for workers compensation. Membership in the Plan may be offered to any component district of the Board of Cooperative Educational Services, First Supervisory District of Monroe County (Monroe 1 BOCES) and Monroe 2-Orleans BOCES with the approval of the Board of Directors. Current membership of the Plan includes Participants from nineteen (19) municipal corporations. Voluntary withdrawal from the Plan is subject to the following constraints:

2.

Notice on intention to withdraw must be given in writing to the Chairman of the Board of Directors and Treasurer not less than one-hundred twenty (120) days prior to the end of the Plan year. Participant is not entitled to any share of Plan surplus.

AF T

1.

T

D

R

If a surplus of Participants’ assessments exists after the close of a Plan year, the Board may retain from such surplus an amount sufficient to establish and maintain a claim contingency fund. Surplus funds in excess of the amount transferred to or included in such contingency fund shall be applied in reduction of the next annual assessment or to the billing of Plan Participants. All monies paid to the Treasurer by participants shall be commingled and administered as a common fund. No refunds shall be made to a participant and no assessments are charged to a participant other than the annual premium equivalent. However, if the Board of Directors determines that the liabilities of the Plan will exceed its cash assets, after taking into account any “excess insurance”, the Board of Directors shall determine the amount needed to meet such deficiency and shall assess such amount against all Participants their pro-rata share, such additional assessment is due within sixty (60) days after written notification from the Board of Directors.

1S

The Plan purchases, on an annual basis, stop-loss insurance to limit exposure for claims paid. The Plan establishes a liability for both reported and unreported insured events, which includes estimates of both future payments of losses and related claim adjustment expenses. However, because actual claims costs depend on complex factors, the process used in computing claims liabilities does not necessarily result in an exact amount. Such claims are based on the ultimate cost of claims (including future claim adjustment expenses) that have been reported but not settled and claims that have been incurred but not reported. Adjustments to claims liabilities are charged or credited to expenses in the period in which they are made. During the year ended June 30, 2026, the District incurred premiums or contribution expenditures totaling $856,900. The Plan is audited on an annual basis and is available at the Monroe 2-Orleans BOCES administrative offices. The most recent audit available for the year ended June 30, 2025, revealed that the Plan was fully funded. D.

Dental Fund

The District has a self-insured plan for dental coverage. The plan is administered by a third-party administrator who pays the claims directly to the dentists. The District then reimburses the third-party administrator for the exact amount of the claims paid. The total cost to the District for dental claims during 2025-26 was $92,370. 56

( XII. ) (Continued) E.

Medical Benefit Plan

The District established a medical benefit plan under Section 105 of the IRS Code. The District contributes an amount for each individual which can be used for any non-reimbursed medical benefits. The balance at June 30, 2026 totaled $1,964,504. F.

Unemployment

XIII.

AF T

District employees are entitled to coverage under the New York State Unemployment Insurance Law. The District has elected to discharge its liability to the New York State Unemployment Insurance Fund (the Fund) by the benefit reimbursement method, a dollar-for-dollar reimbursement to the fund for benefits paid from the fund to former employees. The District has established a self-insurance fund to pay these claims. Claim and judgment expenditures of this program totaled $43,656 for the 2025-26 fiscal year. The balance of the fund at June 30, 2026 was $1,234,563 and is recorded in the General Fund as an Unemployment Insurance Reserve. In addition, as of June 30, 2026, no loss contingencies existed or were considered probable or estimable for incurred but not reported claims payable. Commitments and Contingencies A.

Litigation

Grants

D

B.

R

There are several Article 7 Real Property Tax cases pending, some of which may be material, however, the financial outcome, if any, cannot be determined at this time.

XIV.

1S

T

The District has received grants, which are subject to audit by agencies of the State and Federal Governments. Such audits may result in disallowances and a request for a return of funds. Based on prior years’ experience, the District’s administration believes disallowances, if any, will be immaterial. Tax Abatement

The County of Monroe IDA, and the District enter into various property tax abatement programs for the purpose of Economic Development. As a result, the District property tax revenue was reduced $1,485,661. The District received payment in lieu of tax (PILOT) payments totaling $866,892 to help offset property tax reduction. XV.

Subsequent Event

On October 15, 2026, the District is planning on borrowing a construction Bond Anticipation Note in the amount of $15,000,000 at an interest rate to be determined. The note will mature on July 23, 2027.

57

Required Supplementary Information WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Schedule of Changes in District's Total OPEB Liability and Related Ratio For The Year Ended June 30, 2026 TOTAL OPEB LIABILITY 2026 Service cost

$

Interest

2025

4,831,578

$

3,404,530

2024 $

2023

5,600,499

$

8,639,715

2022 $

9,486,365

2021 $

2020

8,992,164

$

7,530,744

2019 $

8,199,089

2018 $

2017

8,058,335

$

7,611,752

9,463,248

7,117,549

9,786,087

9,254,534

7,331,438

7,921,071

9,677,705

11,170,886

11,020,063

8,945,216

8,615

12,862

-

(17,352)

1,128,202

-

1,038,869

9,628,820

-

-

and actual experiences

31,120,102

42,370,414

(77,962,140)

(32,929,405)

24,787,039

(12,698,411)

(22,064,776)

(34,877,880)

53,615

32,306,239

Changes of assumptions or other inputs

(1,888,619)

(7,449,386)

(6,362,544)

(40,092,180)

(29,438,698)

6,643,328

48,783,104

(13,756,785)

7,677,031

(19,251,283)

Changes in benefit terms

(10,152,176) $

33,382,748

(8,924,234) $

220,884,339

36,531,735

(9,940,216) $

184,352,604

(78,878,314)

(8,403,208) $

263,230,918

(63,547,896)

(7,779,553) $

5,514,793

(8,357,663)

$

2,500,489

AF

Benefit payments Net Change in Total OPEB Liability

T

Differences between expected

326,778,814

321,264,021

(7,809,970) $

318,763,532

37,155,676

(7,508,650) $

281,607,856

(27,144,520)

(7,078,204) $

308,752,376

19,730,840

(6,357,075) $

289,021,536

23,254,849 265,766,687

$

254,267,087

$

220,884,339

$

184,352,604

$

263,230,918

$

326,778,814

$

321,264,021

$

318,763,532

$

281,607,856

$

308,752,376

$

289,021,536

Covered Employee Payroll

$

101,712,741

$

98,463,447

$

90,774,636

$

87,679,548

$

80,969,533

$

78,276,811

$

75,834,926

$

75,834,926

$

61,593,845

$

59,620,409

249.99%

224.33%

203.09%

300.22%

1S T

Employee Payroll

D

Total OPEB Liability as a Percentage of Covered

R

(See Independent Auditors' Report)

58

403.58%

410.42%

420.34%

371.34%

501.27%

484.77%

Required Supplementary Information WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Schedule of the District's Proportionate Share of the Net Pension Liability For The Year Ended June 30, 2026 NYSERS Pension Plan 2026

Proportion of the net pension liability (assets)

2025

0.0621%

0.0599%

2024

2023

2022

0.0634%

0.0606%

2021

0.0587%

2020

0.0575%

0.0549%

2019

2018

2017

0.0557%

0.0573%

0.0566%

Proportionate share of the net pension liability (assets)

$

3,501,261

$

10,267,717

$

9,338,744

$ 13,004,429

$

(4,797,833)

$

57,291

$

14,546,445

$

Covered-employee payroll

$

24,733,942

$

22,620,339

$ 21,440,649

$ 19,880,298

$

18,770,068

$ 18,613,021

$

18,206,026

$ 17,718,558

$ 17,320,379

$ 16,531,449

$

1,847,921

$

5,322,915

T

3,945,598

14.156%

45.392%

43.556%

65.414%

(25.561%)

0.308%

79.899%

22.268%

10.669%

32.199%

Plan fiduciary net position as a percentage of the total pension liability

97.78%

93.08%

93.88%

90.78%

103.65%

99.95%

86.39%

96.27%

98.24%

94.70%

AF

Proportionate share of the net pension liability (assets) as a percentage of its covered-employee payroll

2025

2026

Proportion of the net pension liability (assets)

2024

0.4211%

Proportionate share of the net pension liability (assets)

$ (24,678,808)

$ (12,563,936)

$

Covered-employee payroll

$

$

$ 82,812,348

84,285,024

2022

4,731,941

$

2021

2020

2019

2018

2017 0.3963%

0.4093%

0.4129%

0.3932%

0.3980%

0.3953%

0.3913%

7,854,441

$ (71,543,066)

$ 10,864,498

$ (10,341,054)

$ (7,147,171)

$ (2,974,442)

$

$

72,836,124

$ 70,073,998

$

66,734,312

$ 66,439,011

$ 64,381,869

$ 62,216,678

$ 79,334,743

1S T

83,259,741

0.4138%

2023

D

0.4168%

R

NYSTRS Pension Plan

4,244,173

Proportionate share of the net pension liability (assets) as a percentage of its covered-employee payroll

(29.641%)

(14.906%)

5.714%

9.900%

(98.225%)

15.504%

(15.496%)

(10.757%)

(4.620%)

6.822%

Plan fiduciary net position as a percentage of the total pension liability

104.00%

102.10%

99.20%

98.60%

113.25%

97.80%

102.20%

101.53%

100.66%

99.01%

(See Independent Auditors' Report)

59

Required Supplementary Information WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Schedule of District Contributions For The Year Ended June 30, 2026 NYSERS Pension Plan 2026 $

Contributions in relation to the contractually required contribution

3,807,967

2025

2024

2023

2022

2021

2020

2019

2018

2017

$ 3,154,382

$ 2,557,460

$ 2,112,042

$ 2,739,298

$ 2,454,597

$ 2,422,820

$ 2,417,657

$ 2,441,068

$ 2,530,141

$ (2,422,820)

$ (2,417,657)

$

$

(3,807,967)

(3,154,382) -

$

-

(2,112,042) $

-

(2,739,298) $

-

(2,454,597)

$

-

-

-

(2,441,068) $

-

(2,530,141)

$

Covered-employee payroll

$ 24,733,942

$ 22,620,339

$ 21,440,649

$ 19,880,298

$ 18,770,068

$ 18,613,021

$ 18,206,026

$ 17,718,558

$ 17,320,379

$ 16,531,449

15.40%

13.94%

11.93%

10.62%

14.59%

13.19%

13.31%

13.64%

14.09%

15.31%

AF

$

(2,557,460)

Contribution deficiency (excess)

Contributions as a percentage of covered-employee payroll

-

T

Contractually required contributions

$

-

2026

Contributions in relation to the contractually required contribution

8,668,581

2024

$ 9,155,209

$ 8,627,961

(8,668,581)

2023

D

$

2025

(9,155,209)

$ 8,506,491

(8,627,961)

1S T

Contractually required contributions

R

NYSTRS Pension Plan

-

$

-

2020

2019

2018

2017

$ 7,611,170

$ 7,080,025

$ 6,239,111

$ 7,353,594

$ 6,611,120

$ 7,573,009

(8,506,491)

$

-

(7,611,170) -

$

-

(6,239,111) $

-

(7,353,594) $

-

(6,611,120) $

-

(7,573,009)

Covered-employee payroll

$ 83,259,741

$ 84,285,024

$ 82,812,348

$ 79,334,743

$ 72,836,124

$ 70,073,998

$ 66,734,312

$ 66,439,011

$ 64,381,869

$ 62,216,678

10.41%

10.86%

10.42%

10.72%

10.45%

10.10%

9.35%

11.07%

10.27%

12.17%

60

$

(7,080,025)

$

(See Independent Auditors' Report)

$

2021

Contribution deficiency (excess)

Contributions as a percentage of covered-employee payroll

-

2022

$

-

Required Supplementary Information WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (Non-GAAP Basis) and Actual - General Fund For The Year Ended June 30, 2026

Amended Budget

Over (Under) Original Budget

120,009,444 8,789,610 765,000

$ (7,539,610) 7,539,610 -

1,800,000

1,800,000

-

71,734,371 668,000

71,734,371 668,000

$

211,766,425

3,000,000

$

3,000,000

Original Budget

211,766,425

$

D

$ $

Appropriated fund balance

$

5,500,000

$

5,500,000

$

171,893

$

171,893

220,438,318

$

220,438,318

T

Appropriated reserves

1S

Prior year encumbrances TOTAL REVENUES AND APPROPRIATED RESERVES/ FUND BALANCE

(See Independent Auditors' Report)

$

$

61

$

Over (Under) Amended Budget

120,009,504 8,406,502 632,925 2,960,215

$

60 (383,108) 632,925 2,195,215

97,181 1,526,678

97,181 (273,322)

-

51,455,683 15,846,046 8,034,059 363,791

(20,278,688) 15,846,046 8,034,059 (304,209)

-

248,422 51,000 848,612 282,635 420,339 221,965,821

248,422 51,000 848,612 282,635 420,339 10,199,396

T

127,549,054 1,250,000 765,000

R

$

AF

REVENUES Local Sources Real property taxes Real property tax items Charges for services Use of money and property Sale of property and compensation for loss Miscellaneous State Sources Basic formula Lottery aid BOCES Textbooks All Other Aid Computer software Library loan Handicapped students Other aid Federal Sources TOTAL REVENUES

Current Year's Revenues

$

$

Required Supplementary Information WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (Non-GAAP Basis) and Actual - General Fund For The Year Ended June 30, 2026 Over (Under)

Current

Original

Amended

Original

Year's

Budget

Budget

Budget

Expenditures

Unencumbered Encumbrances

Balances

EXPENDITURES General Support Board of education

$

Central administration

22,000

$

357,500

30,367

$

394,536

8,367

$

30,367

37,036

$

394,497

-

$

39

-

Finance

1,155,500

1,233,563

78,063

1,233,563

-

-

Staff

1,373,000

1,346,464

(26,536)

1,344,964

1,500

-

Central services

13,052,351

14,692,200

1,639,849

14,432,397

34,349

225,454

Special items

2,415,000

2,876,013

461,013

2,876,013

-

-

Instructional 8,729,740

8,462,537

58,893,074

57,423,761

handicapping conditions

24,881,056

22,967,836

Occupational education

2,100,000

1,725,500

Programs for children with

275,000 9,109,451

Pupil services

12,194,746 8,591,600

Community Services

1,232,600

5,414

62,284

199,262

4,374,908

(1,913,220)

22,894,594

37,118

36,124

(374,500)

1,725,500

-

-

181,208

(93,792)

181,208

-

-

711,300

9,808,947

6,546

5,258

12,909,522

714,776

12,888,661

4,274

16,587

9,680,765

1,089,165

9,620,059

-

60,706

1,221,268

(11,332)

1,199,367

-

21,901 500,628

D

Pupil Transportation

8,394,839

52,849,591

9,820,751

R

(267,203)

(1,469,313)

AF

and improvement Teaching - regular school

T

Instruction, administration

62,879,430

59,557,397

(3,322,033)

59,056,769

-

7,855,000

9,891,591

2,036,591

9,891,591

-

-

4,481,270

4,943,609

462,339

4,943,609

-

-

$

219,598,318

1S

Other Uses -

T

TOTAL EXPENDITURES AND OTHER USES

$

219,358,888

$

(239,430)

$

213,766,536

$

288,502

$

5,303,850

$

840,000

$

1,079,430

$

239,430

$

1,079,430

$

-

$

-

$

220,438,318

$

220,438,318

$

-

$

214,845,966

$

288,502

$

5,303,850

$

7,119,855

NET CHANGE IN FUND BALANCE

FUND BALANCE, BEGINNING OF YEAR

61,052,398

FUND BALANCE, END OF YEAR

$

(See Independent Auditors' Report)

62

68,172,253

Required Supplementary Information WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Note to budgetary Comparison Schedule For The Year Ended June 30, 2026 The key factors for budget variances in the General Fund are listed below along with explanations for each: Budget Variance Original Vs. Amended 1,639,849

Teaching-Regular School

$

(1,469,313)

Programs for Children with Handicapping Conditions

$

(1,913,220)

Pupil Transportation

$

1,089,165

Employee Benefits

$

(3,322,033)

Debt Service-Principal

$

2,036,591

T

$

R

Central Services

Explanation for Budget Variance

AF

Expenditure Items

State Sources

D

$

2,195,215

$

4,727,877

$

4,374,908

1S

Use of Money and Property

T

Revenue Items

Budget Variance Amended Vs. Actual

Expenditure Items

Teaching-Regular School

63

Explanation for Budget Variance

Supplementary Information

WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Schedule of Change From Adopted Budget To Final Budget And The Real Property Tax Limit For The Year Ended June 30, 2026

CHANGE FROM ADOPTED BUDGET TO FINAL BUDGET: Adopted budget

$

Prior year's encumbrances

220,266,425 171,893

$

220,438,318

FINAL BUDGET

$

220,438,318

$

227,089,425

AF

T

Original Budget

SECTION 1318 OF REAL PROPERTY TAX LAW LIMIT CALCULATION:

R

2026-27 voter approved expenditure budget Assigned fund balance Unassigned fund balance

D

Unrestricted fund balance:

Less adjustments:

T

Total Unrestricted fund balance

8,927,773 $ 14,716,275 $ 5,500,000

1S

Appropriated fund balance

$ 5,788,502

Encumbrances included in assigned fund balance Total adjustments

288,502 $ 5,788,502

General fund fund balance subject to Section 1318 of Real Property Tax Law

8,927,773

ACTUAL PERCENTAGE

(See Independent Auditors' Report)

3.93%

64

Supplementary Information

WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK CAPITAL PROJECTS FUND Schedule of Project Expenditures For The Year Ended June 30, 2026

Expenditures Prior

Current

Appropriation

Appropriation

Years

Year

$

$

$

Total

12,953,473

$ 12,830,047

-

$ 12,830,047

43,539,223

43,539,223

43,539,223

-

43,539,223

Aquatic Project

100,000

100,000

94,489

-

94,489

DASNY grant

100,000

100,000

97,478

-

Thomas Café

-

-

128,811

-

2024-25 Buses

1,200,000

1,200,000

1,135,476

2025-26 Buses

$43,000,000 Construction Project

12,953,473

Methods of Financing Unexpended Balance

$

Obligations

123,426

$

Local

State

Sources

Sources

Fund Transfers

Total

$

Balance

7,805,000

$ 5,148,473

(56,598)

12,896,875

-

39,895,000

3,644,248

-

-

43,539,248

25

5,511

-

100,000

-

-

100,000

5,511 1,653

AF

2014 Capital Improvement Project

Revised

T

Project Title

Original

$

-

$

66,828

97,478

2,522

-

-

99,131

-

99,131

128,811

(128,811)

-

128,811

-

-

128,811

-

-

1,135,476

64,524

1,200,000

-

-

(64,524)

-

1,825,000

-

1,789,423

1,789,423

35,577

1,825,000

-

-

(35,577)

2025-26 Zero Emissions Buses

525,000

525,000

-

471,943

471,943

53,057

525,000

-

220,500

(273,557)

471,943

-

2020-21 Capital Outlay Project

100,000

100,000

99,796

-

99,796

204

-

100,000

-

-

100,000

204

18,381

82,019

(18,381)

-

63,638

-

-

63,638

(18,381)

-

98,667

1,333

-

100,000

-

-

100,000

1,333

-

192,676

(192,676)

-

-

-

192,676

192,676

-

-

16,378

83,622

-

100,000

-

-

100,000

83,622 (20,226,902)

57,853

63,638

63,638

2022-23 Capital Outlay Schroeder

100,000

100,000

98,667

-

-

192,676

100,000

100,000

16,378

2022-23 Project Klem North Project

-

85,000,000

85,000,000

14,473,103

15,753,799

30,226,902

54,773,098

-

10,000,000

-

-

10,000,000

23-24 State Rd Capital Outlay

100,000

100,000

10,334

-

10,334

89,666

-

100,000

-

-

100,000

89,666

$500,000 Webster Schroeder

500,000

500,000

-

36,047

36,047

463,953

-

500,000

-

-

500,000

463,953

100,000

-

100,000

100,000

-

-

100,000

-

-

100,000

-

5,199,180

-

5,199,180

5,199,180

-

5,199,180

-

-

-

5,199,180

-

72,780,116

$ 23,368,773

56,449,180

$ 20,085,170

319,631

$ (237,580)

25-26 Capital Outlay

100,000

Leases

5,199,180 TOTAL

(See Independent Auditors' Report)

$

151,499,729

$

1S T

$85,000,000 Construction Project

D

Emergency Elevator Project

R

1,825,000

1,135,476 1,789,423

151,505,514

$

$

96,148,889

65

$

55,356,625

$

$

$

76,616,401

$

(19,532,488)

Supplementary Information WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Combining Balance Sheet - Nonmajor Governmental Funds June 30, 2026 Special Revenue Funds

Total

Special

School

Miscellaneous

Debt

Nonmajor

Aid

Lunch

Special Revenue

Service

Governmental

Fund

Fund

Fund

Fund

Funds

ASSETS Cash and cash equivalents

$

268,422

$

119,954

$

-

$

-

$

388,376

-

-

135

-

135

Receivables

4,785,635

901,837

-

-

5,687,472

Inventories

-

173,984

-

-

173,984

Due from other funds

2,382,346

3,340,593

130,178

5,076,884

10,930,001

TOTAL ASSETS

$ 7,436,403

$

130,313

$ 5,076,884

$ 17,179,968

$

-

$

$

Liabilities $

Accrued liabilities

Due to ERS TOTAL LIABILITIES

AF 81,957

-

154,029

47,659

39,739

-

11,246

98,644

6,443,294

1,768,379

500

-

8,212,173

28,965

-

-

-

28,965

150,149

791,140

-

-

941,289

20,387

88,563

-

-

108,950

$ 6,762,526

$ 2,769,778

$

500

$

11,246

$

9,544,050

$

$

$

-

$

-

$

173,984

1S

Unearned revenue

$

T

Due to other funds Due to TRS

72,072

D

Accounts payable

$ 4,536,368

R

LIABILITIES AND FUND BALANCES

T

Investments

Fund Balances Nonspendable

-

173,984

Restricted

-

-

129,813

5,065,638

5,195,451

Assigned

673,877

1,592,606

-

-

2,266,483

673,877

$ 1,766,590

$

129,813

$ 5,065,638

$

$ 7,436,403

$ 4,536,368

$

130,313

$ 5,076,884

$ 17,179,968

TOTAL FUND BALANCE

$

7,635,918

TOTAL LIABILITIES AND FUND BALANCES

(See Independent Auditors' Report)

66

Supplementary Information WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For The Year Ended June 30, 2026 Special Revenue Funds Formerly Major Special

School

Miscellaneous

Debt

Nonmajor

Aid

Lunch

Special Revenue

Service

Governmental

Fund

Fund

Fund

Fund

Funds

REVENUES $

14,603

$

7,885

$

-

$

12,479

$

34,967

2,009,905

297,360

16,425

-

2,323,690

State sources

3,525,732

2,940,989

-

-

6,466,721

Federal sources

3,326,626

2,337,858

-

-

5,664,484

-

693,101

-

-

693,101

8,876,866

$ 6,277,193

12,479

$ 15,182,963

Instruction

6,187,655

-

-

-

6,187,655

Pupil transportation

255,012

-

-

-

255,012

1,724,444

-

-

-

1,724,444

TOTAL REVENUES

$

AF

Sales

EXPENDITURES

Community services Cost of sales TOTAL EXPENDITURES

16,425

$

736,177

-

-

1,896,449

-

2,854,540

-

-

2,854,540

-

2,103,328

-

2,143,078

$

9,327,383

$ 5,694,045

$

39,750

$

-

$ 15,061,178

$

(450,517)

$

583,148

$

(23,325)

$

12,479

$

121,785

$

350,619

$

-

$

-

$

373,658

$

724,277

T

Other expenses

$

1,160,272

D

Employee benefits

T

Miscellaneous

R

Use of money and property

39,750

EXCESS (DEFICIENCY) OF REVENUES

1S

OVER EXPENDITURES

OTHER FINANCING SOURCES (USES) Transfers - in

Premium on obligations issued

-

-

-

150,175

150,175

TOTAL OTHER FINANCING SOURCES (USES)

$

350,619

$

-

$

-

$

523,833

$

874,452

NET CHANGE IN FUND BALANCE

$

(99,898)

$

583,148

$

(23,325)

$

536,312

$

996,237

FUND BALANCE, BEGINNING OF YEAR, as previously reported

$

-

$ 1,183,442

$

153,138

$ 4,529,326

$

5,865,906

773,775

-

-

-

$

773,775

$ 1,183,442

$

153,138

$ 4,529,326

$

6,639,681

$

673,877

$ 1,766,590

$

129,813

$ 5,065,638

$

7,635,918

Changes within financial reporting entity major to nonmajor

773,775

FUND BALANCE, BEGINNING OF YEAR, as adjusted FUND BALANCE, END OF YEAR

(See Independent Auditors' Report)

67

Supplementary Information WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK Net Investment in Capital Assets/Right to Use Assets For The Year Ended June 30, 2026

Capital assets/right to use assets, net

$ 225,859,365

$

66,853

T

66,853 Deduct:

$

94,920,000

AF

Bond payable Lease liability

4,224,982 7,634,814

Assets purchased with short-term financing

D

Retainage payable

R

Unamortized bond premium

1S

T

Net Investment in Capital Assets/Right to Use Assets

(See Independent Auditors' Report)

68

20,245,283 817,915 127,842,994 $

98,083,224

Supplementary Information WEBSTER CENTRAL SCHOOL DISTRICT, NEW YORK SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended June 30, 2026 Pass-Through Agency Number

84.027 84.173

0032-26-0388 0033-26-0388

84.367 84.367 84.365 84.365 84.365 84.424 84.010 84.010 84.010 84.010

0147-25-1410 0147-26-1410 0149-25-1410 0293-25-1410 0293-26-1410 0204-26-1410 0021-25-1410 0021-26-1410 0011-25-8285 0011-26-2285

10.555 10.553

261901060000 261901060000

10.555 10.555

261901060000 261901060000

Total Expenditures

$ $

T

Assistance Listing Number

$

1,986,182 50,691 2,036,873 15,998 145,589 1,987 6,389 25,533 67,515 28,161 837,813 40,000 120,768 3,326,626

D

R

AF

Grantor / Pass - Through Agency Federal Award Cluster / Program U.S. Department of Education: Passed Through NYS Education Department Special Education Cluster IDEA Special Education - Grants to States (IDEA, Part B) Special Education - Preschool Grants (IDEA Preschool) Total Special Education Cluster IDEA Title IIA - Supporting Effective Instruction State Grant Title IIA - Supporting Effective Instruction State Grant Title IIIA - Immigration Education Title IIIA - LEP Title IIIA - LEP Title IV - Student Support and Enrichment Program Title I - Grants to Local Educational Agencies Title I - Grants to Local Educational Agencies Title 1 - School Improvement Planning Title 1 - School Improvement Planning Total U.S. Department of Education

1S

T

TOTAL EXPENDITURES OF FEDERAL AWARDS

(See Independent Auditors' Report)

69

$

1,584,971 428,181

$ $

289,856 34,850 2,337,858 2,337,858

$

5,664,484

Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditors’ Report

AF T

To the Board of Education Webster Central School District, New York

R

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Webster Central School District, New York (the District) as of and for the year ended June 30, 2026, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated _________, 2026.

D

Report on Internal Control over Financial Reporting

1S

T

In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) as a basis for designing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified.

70

Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report

AF T

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

1S

T

D

R

Fairport, New York _________, 2026

71