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AUDITORS' REPORT
MECHANICSBURG AREA SCHOOL DISTRICT
FOR THE SCHOOL YEAR ENDED JUNE 30, 2002
The complete report of the audit of the School District's accounts is on file in
the administrative office of the District. The auditors have completed their audit of
the District's funds for the school year ended June 30, 2002 and in accordance with the
provisions of Act 237 of December 1980 give notice that said report was filed in the
office of the Prothonotary of the Court of Common Pleas of cumberland County and that
said report will be confirmed absolutely unless an appeal is taken therefrom within
thirty days after filing thereof.
MECHANICSBURG AREA SCHOOL DISTRICT
FINANCIAL STATEMENTS
yEA~ ENDED JUNE 30, 2002
TABLE OF CONTENTS
Independent auditors' report
Combined balance sheet - all fund types and account groups
Combined statement of revenue, expenditures and changes
in fund balances - All Governmental Fund Types
Combined statement of revenue, expenditures and changes
in fund balances - actual and budget -
Ail Budgeted Governmental Fund Types
Statement of revenue, expenses and changes in fund balance/retained earnings -
All Proprietary and Non-Expendable Trust Fund Types
Statement of cash flows - All Proprietary and
Non-Expendable Trust Fund Types
Notes to financial statements
Supplementary information
Page
Number
1 - 2
3
7 - $
9 - 24
25 - 36
JAMES E. LYONS
HOWARD R. GREENAWALT
CREEDON R. HOFFMAN
JOHN H. KLINGLER
DEBORAH J, KELLY
R. A, GREENAWALT (1956-19831
A. A. REIDINGER IRETIREDI
C. EDWARD ROGERS, JR,
GREENAWALT & COMPANY, P.e.
CERTIFIED PUBLIC ACCOUNTANTS
400 WEST MA~N STREET
MECHANICSBURG, PENNSYLVANIA 17055
(717) 766-4753
FAX (717) 766-2731
62 WEST POMFRET STREET
CARLISLE, PA 17013
(717) 243-4822
FAX (717) 250-9372
INDEPENDENT AUDITORS ' REPORT
Board of School Directors
Mechanicsburg Area School District
Mechanicsburg, Pennsylvania
We have audited the accompanying general-purpose financial statements of
Mechanicsburg Area School District as of June 30, 2002, and for the year then ended.
These general-purpose financial statements are the responsibility of the District's
management. Our responsibility is to express an opinion on these general-purpose
financial statements based on our audit.
We conducted our audit 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. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the general-purpose financial statements are free of material
misstatement. Am audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the general-purpose financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall general-purpose financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general-purpose financial statements referred to above present
fairly, in all material respects, the financial position of Mechanicsburg Area School
District at June 30, 2002, the results of its operations, and the cash flows of its
proprietary fund types and trust funds for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
Our audit was conducted for the purpose of forming an opinion on the general-purpose
financial statements taken as a whole. The supplementary information is presented for
purposes of additional analysis and is not a required part of the general-purpose
financial statements of Mechanicsburg Area School District. Such information has been
subjected to the auditing procedures applied in the audit of the general-purpose
financial statements and, in our opinion, is fairly presented in all material respects
in relation to the general-purpose financial statements taken as a whole.
- 1 -
MEMBERS -- AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS -- PENNSYLVANIA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
Board of School Directors
Mechanicsburg Area School District
Mechanicsburg, Pennsylvania
In accordance with Government Auditing Standards, we have also issued reports dated
August 30, 2002, on our consideration of Mechanicsburg Area School District's internal
control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts and grants. That report is an integral part
of an audit performed in accordance with Government Auditing Standards and should be
read in conjunction with this report in considering the results of our audit.
ALT & COMPAq, P.C.
August 30, 2002
Mechanicsburg, Pennsylvania
- 2 -
MECHA/~ICSBURG AREA SCHOOL DISTRICT
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOLrNT GROUPS
JUNE 30, 2002
Assets and other debits
Cash and cash equivalents
Investments
Due from other funds
Accounts receivable
Delinquent taxes receivable
(net of allowance for
uncollectibles, $ 151,755)
Inventory
Land, buildings and equipment
(net of $ 156,015 Food Service
Fund accumulated depreciation)
Amount to be provided for
general long-term debt
Governmental Fund Types
General
Athletic
Association Construction
$ 463,621 $ 1,289 $
4,808,940 - 13,421,272
94,868 - _
1,501,321 - _
Capital
Reserve
299,849
477,324
Total assets and
other debits
Liabilities
Payroll and benefits payable
Accounts payable
Deferred revenue
Due to other funds
Due to student and other
organizations
Bonds payable
Compensated absences
$ 7,346,074 $ 1,289 $ 13,421,272 $ 299,849
$ 1,983,176 $ $
313,218 - 2,572,815
475,803 - _
171,007 - 2,324
13,824
Total liabilities
Fund equity and other credits
Invested in general fixed
assets
Fund balances/retained
earnings
Reserved
Unreserved
Total fund equity
and other credits
Total liabilities,
fund equity and
other credits
2,943,204 0 2,575,139
13,824
10,846,133
4,402,870 1,289
4,402,870 1,289 10,846,133
286,025
286,025
$ 7,346,074 $ 1,289 $ 13,421,272 $ 299,84~9
The accompanying notes are an integral part of these financial statements.
- 3 -
Proprietary
Fund Types
Fiduciary Fund Types
Debt Food Trust and
Service Service Agency Activities
Account Groups
General General Long-
Fixed Assets Term Debt
$ $ 117,979 $ 154,451 $ 165,475
41 83,731 83,817 -
172,507 - 1,898 -
368 -
$ $
20,519
130,172
24,340,796
55,101,209
$ __ 172,548 $ 352 769 $ 240,166 $ 165~475 $ 24 340 796 $ 55,101,209
$ - $ $ $ $
9,025
1,500 92,544 1,898
- 154,451 165,475
- 45,902,062
26,884 - 9,199,147
1,500 128,453 156,349 165,475 0 55,101,209
24,340,796
171,007 83,817
41 224,316 -
171,048 224,316 83,817
0 ~4,340,796 0
$ 172 548 $ 352,769 $ 240,166 $ __165,475 $ 24,340,796 $ 55,101,209
MECHANICSBURG AREA SCHOOL DISTRICT
COMBINED STATEMENT OF REVENUE, EXPENDITURES
AND CHANGES IN FUI~D BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 2002
Revenue
Local sources
State sources
Federal sources
Total revenue
Expenditures
Instruction
Support services
Operation of noninstructional services
Facilities acquisition, construction
and improvement services
Total expenditures
Excess of revenue over (under)
expenditures
Other financing sources (uses)
Bond proceeds
Bond issuance costs
Debt service payments
Transfers from other funds
Governmental fund transfers
Food service transfers
Total other financing
sources (uses)
Excess of revenue and other financing
sources over (under) expenditures
and other financing uses
Fund balances, July 1, 2001
Fund balances, June 30, 2002 $
Athletic
Association
Construction
$ 24,182,257
7,619,611
415,487
$ 117,861 $ 919,080
32,217,355 117,861 919,080
19,281,184
8,914,578
775,400
71,894
29,043,056
3,174,299
165,910 -
26,934,899
165,910 26,934,899
(48,049) (26,015,819)
22,108
(2,705,573)
(118,162)
10,000,000
(144,684)
- (22,102)
45,000 (15,498,760)
(2,801,627)
372,672
4,030,19~
4,402,870
45,000 (5,665,546)
(3,049) (31,681,365)
4,338 42,527,498
$ 1 289 $ 10,846,13~3
The accompanying notes are an integral part of these financial statements.
Capital Debt
Reserve Service
8,634
$ 2,830
8,634 2,830
153,070
153,070 0
(144,436) 2,830
(18,036,703)
(6)
18,159,333
0 122,624
(144,436) 125,454
430,461 45,594
286,025 $ 171,048
MECHA2~ICSBURG AREA SCHOOL DISTRICT
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCES - ACTUAL AND BUDGET
ALL BUDGETED GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 2002
State sources
Federal sources
Total revenue
Expenditures
Instruction
Support services
Operation of noninstructional services
Facilities acquisitions, construction
and improvement services
Total expenditures
Excess of revenue over (under)
expenditures
Other financing sources (uses)
Debt service pa!zments
Transfers from other funds
Governmental fund transfers
Food service transfers
Total other financing
sources (uses)
Excess of revenue and other financing
sources over (under) expenditures
and other financing uses
Fund balances, July 1, 2001
General Fund
Variance
Favorable
Actual Budget (Unfavorable)
$ 24,182,257 $ 23,830,454 $ 351,803
7,619,611 7,531,490 88,121
415,487 372,850 42,637
32,217,355 31,734,794 482,561
19,281,184 19,217,270 (63,914)
8,914,578 8,923,921 9,343
775,400 778,131 2,731
71,894
29,043,056
3,174,299
22,108
(2,705,573)
(118,162)
(2,801,627)
372,672
4,030,198
Fund balances, June 30, 2002 $ 4 402 870 $
71,895 1
28,991,217 (51,839)
2,743,577 430,722
(3) 3
22,108
(2,705,573)
(118,162)
(2,823,738) 22,111
(80,161) 452,833
4,182,597 (152,399)
4,102,436 $ ~300,43~4
The accompanying notes are an integral part of these financial statements.
Athletic Association Fund
Actual
Budget
Variance
Favorable
(Unfavorable)
$ 72,650
$ 45,211
45,211
117,861
72,650
165,910
165,910
(48,049)
45,000
45,000
(3,049)
4,338
__1,289
117,650
117,650
(45,000)
45,000
45,000
0
0
$ o
(48,260)
(48,260)
(3,049)
0
(3,049)
4,338
1,289
MECHANICSBURG AREA SCHOOL DISTRICT
STATEMENT OF REVENUE, EXPENSES AND
CHANGES IN FUND BALANCE/RETAINED EAP~NINGS
ALL PROPRIETARY AND NON-EXPENDABLE TRUST FLrND TYPES
YEAR ENDED JUNE 30, 2002
Operating revenue
Sales
Net investment earnings
Miscellaneous revenue
Total operating revenue
Proprietary Fiduciary
Fund Fund
Food Trust
Service Funds
$ 799,421 $ -
- 1,670
7,763 9,226
807,184 10,896
Operating expenses
Food and milk
Labor
Employee benefits
Supplies and services
Repairs and maintenance
Utilities and fuel
Depreciation
Scholarship awards
Total operating expenses
Operating income (loss)
523,865
427,279
113,997
43,585
4,072
57,538
26,454
1,196,790
(389,606)
25
5,540
5,565
5,331
Nonoperating revenue
State sources Meal subsidies
Social security and retirement subsidies
Federal sources
Meal subsidies
Donated commodities
Interest earned
43,193
17,259
191,147
52,144
6,227
Total nonoperating revenue
309,970 0
(79,636) 5,331
118,162 -
38,526 5,331
11,572 -
50,098 5,331
174,218 78,486
Income (loss) before transfers
Services contributed by General Fund
Income before the effect of change
in accounting for donated commodities
Cumulative effect of change in accounting
for donated commodities
Net income
Fund balance/retained earnings, July 1, 2001
Fund balance/retained earnings, June 30, 2002
$ 224,316 $ 83,817
The accompanying notes are an integral part of these financial statements.
- 6 -
MECHANICSBURG AREA SCHOOL DISTRICT
STATEMENT OF CASH FLOWS
ALL PROPRIETARY AND NON-EXPENDABLE TRUST FUND TYPES
YF~AR ENDED JUNE 30, 2002
Cash flows from operating activities Cash received from users
Cash received from contributors
Net investment earnings
Cash paid to employees for services
Cash payments to suppliers for goods and services
Cash payments for operating expenses
Cash payments for scholarships
Net cash provided by (used in)
operating activities
Cash flows for non-capital financing activities
State sources
Federal sources
Transfer to non-expendable trust fund
Net cash provided by non-capital
financing activities
Cash flows from investing activities
Earnings on investments
Purchase of pooled investments
Proceeds from pooled investments
Purchase of equipment
Net cash provided by investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, July 1, 2001
Cash and cash equivalents, June 30, 2002
Proprietary Fiduciary
Fund Fund
Food Non-Expendable
Service Trust
$ 811,175 $
(461,120)
(508,772)
(4,072)
4,550
1,275
(2,458)
(162,789) 3,367
60,452
191,147
355
251,599 355
6,227
(2,230)
50,000
(31,461)
22,536
111,346
6,633
117,979
0
3,722
63,833
$ 67,555
(Continued)
- 7 -
MECPIANICSBURG AREA SCHOOL DISTRICT
STATEMENT OF CASH FLOWS
ALL PROPRIETARY AND NON-EXPENDABLE TRUST FUND TYPES (Cont'd.)
YEAR ENDED JUNE 30, 2002
Reconciliation of operating loss to net cash
provided by (used in) operating activities
Operating income (loss)
Adjustments to reconcile operating income
to net cash used in operating activities
Depreciation
Donated commodities
Services contributed by General Fund
Decrease (increase) in assets
Accounts receivable
Inventories
Increase (decrease) in liabilities
Payroll and benefits payable
Accounts payable
Deferred revenue
Due to other funds
Compensated absences
Total adjustments
Net cash provided by (used in)
operating activities
(loss)
Proprietary
Fund
Food
Service
Fiduciary
Fund
Non-Expendable
Trust
$ (389,606) $ 3,367
26,454
52,144
118,162
768
(192)
92,544
(512)
4,359
(82,677)
15,767
226,817
$ (162,789)
$ 3 367
The accompanying notes are an integral part of these financial statements.
- 8 -
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2002
1. Reporting entity
Mechanicsburg Area School District is the level of government which has oversight
responsibility and control over activities related to public school education.
The report includes services provided by the District to residents within the
boundaries of the cumberland County municipalities of Upper Allen Township,
Shiremanstown and Mechanicsburg Boroughs. Services include a comprehensive
curriculum for primary and secondary education as well as special education and
vocational education programs. The District receives revenue from local, state
and federal sources and must comply with the requirements of these funding
sources.
Criteria established in Governmental Accounting Standards Board Statement Number
14 were used in determining the entities to be included in the reporting entity.
These criteria include basic items such as financial interdependency, selection
of governing authority, designation of management, ability to significantly
influence operations, accountability for fiscal matters, scope of public service
and special financing relationships. All operations of the District are included
in the reporting entity.
There are no component units that meet the above criteria for inclusion in the
reporting entity. However, the District is a participant in three jointly-
governed operations, each of which is a separate legal entity that offers
educational services to the District and its residents. Each entity serves many
school districts, and are therefore, not included in the reporting entity.
Capital Area Intermediate Unit - provides special education services and
programs.
Cumberland-Perry Area Vocational-Technical School - provides vocational
and technical education services and programs.
Harrisburg Area Community College - provides community college education
services and programs.
2. Summary of significant accounting policies
The accounts of Mechanicsburg Area School District are maintained on the basis of
accounting practices prescribed or permitted by the ManBal of Accounting and
Related Financial Procedures for Pennsylvania School Systems, issued by the
Pennsylvania Department of Education in accordance with the provisions of the
School Laws of Pennsylvania. These practices are in conformity with generally
accepted accounting principles as applicable to governmental units. A summary of
the more significant accounting policies is as follows:
- 9 -
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JLrNE 30, 2002
2. Summary of significant accounting policies (Cont'd.)
Fund accounting
The accounts of the District are organized on the basis of fund tylDes and account
groups. Each fund type may consist of several different funds. Each fund is a
separate entity with self-balancing accounts which comprise its assets,
liabilities, fund balance/retained earnings, revenues and expenditures/expenses,
as appropriate.
The fund types and account groups utilized by Mechanicsburg Area School District
are as follows:
Governmental Fund Types
Governmental Funds are those through which most governmental functions of the
School District are financed. The acquisition, use and balances of the School
District's expendable financial resources and the related liabilities (except
those accounted for in proprietary funds) are accounted for through governmental
funds. The measurement focus is upon determination of changes in financial
resources, rather than upon net income determination. The funds included in this
category are:
General Fund - The General Fund is used to account for all financial
transactions not accounted for in another fund. Revenues are primarily
derived from local property, per capita and occupation taxes, and State
and Federal distributions. Many of the more important activities of the
School District, including instruction, administration and certain
noninstructional services, are accounted for in this fund.
Construction Funds - The Construction Funds are used to account for the
proceeds of bond issues and their corresponding expenditures. The fund
balances at June 30, 2002 will be used for capital improvements.
Capital Reserve Fund - The Capital Reserve Fund is used to account for
special capital projects.
Special Revenue Fund - Special Revenue Funds are used to account for the
proceeds of specific revenues that are restricted to expenditures for
specified purposes. The Athletic Association Fund is a Special Revenue
Fund.
Debt Service Fund - Debt Service Funds are used to account for the
accumulation of resources for, and the payment of, general long-term
debt principal, interest and related costs.
- 10 -
MECHAIqICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JLrNE 30, 2002
2. Summary of significant accounting policies (Cont'd.
Fund accounting (Cont'd.)
Proprietary Fund Types
Proprietary Funds account for operations that are
manner similar to private business enterprises:
financed and operated in a
Food Service Fund - The Food Service Fund is used to account for the
financial transactions associated with the operations of the cafeterias.
Fiduciary Fund Types
Fiduciary Funds (Trust and Agency Funds) are used to account for assets held by a
governmental unit in a trustee capacity or as an agent for other funds or
entities. Expendable and Non-expendable Trusts are accounted for in essentially
the same manner as Proprietary Funds. Agency Funds are custodial in nature and do
not involve measurement of results of operations:
Trust Accounts - Accounts for contributions to and interest earnzngs on
scholarship funds donated to the District, and for payments of
scholarship funds to selected students.
District Agency Fund - Accounts for programs operated and sponsored by
non-school organizations. These funds are separated from student
activity funds.
Activity Fund - Accounts for programs operated and sponsored by various
clubs and organizations within the schools. Activity funds are Agency
Funds which are separately accounted for because of legal requirements.
Account Groups
Account groups are not funds. They are only concerned with the measurement of
financial position and are not involved with the measurement of results of
operations.
General Fixed Assets - Accounts for the District's investment in land,
buildings, and equipment.
General Long-Term Debt - Accounts for general obligation bonds payable
and accumulated compensated absences payable in future years.
Basis of accounting
The accounting and financial reporting treatment applied by the different funds
is based on their measurement focus, which determines when revenues and
expenditures are recognized.
- 11 -
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Conrad.)
JUNE 30, 2002
2. Summary of significant accounting policies (Cont'd.)
Basis of accounting (Cont'd.)
Governmental Fund Types
These funds are accounted for using the "current financial resources"
measurement focus, which is a modified accrual basis of accounting.
Revenues are recorded when susceptible to accrual (both measurable and
available). Available means collected within the current period or soon enough
thereafter to pay current liabilities.
Expenditures are generally recognized when the related fund liability is
incurred. Exceptions to this general rule include principal and interest on
general long-term debt which is recognized when due. Disbursements for
inventory type items and prepaid expenses are considered expenditures at the
time of purchase.
Proprietary Fund Types
The Food Service Fund uses the "flow of economic resources" measurement focus,
which is a full accrual method of accounting. This fund accounts for
operations using accounting pronouncements required for private business
enterprises, unless those pronouncements conflict with or contradict
governmental accounting pronouncements.
Donated commodities are inventoried at an estimated cost value when received.
Inventories (valued on the first-in, first-out method) are recorded as an
asset, and recognized as revenue when received.
Food service equipment is capitalized, with depreciation (computed on the
straight-line method using an estimated useful life of 5 to 12 years) recorded
as an operating expense.
Compensated absences are recognized as operating expenses and the cumulative
amount is recorded as a liability within the Fund.
Fiduciary Fund Types (Trust and Agency Funds)
These funds use a modified accrual method. They are custodial in nature and
are not involved with the measurement of results of operations.
Account Groups
Land, buildings and equipment are presented at historical cost or estimated
historical cost where the original cost is unknown. Depreciation is not
computed on these assets.
- 12 -
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2002
2. Summary of significant accounting policies (Cont'd.)
Basis of accounting (Cont'd.)
Account Groups (Cont'd.)
Long~term debt is offset by an amount to be provided by future taxation or
other revenue sources. General obligation bonds payable in future years are
recorded as District debt. Interest on bonds is recognized when such interest
is due. Interest on Capital Appreciation Bonds is accreted annually and added
to the amount of bonds outstanding.
Compensated absences are presented using the vesting method. Unused vacation
leave is minimal. Sick leave is granted as appropriate, and medical evidence
may be required. Provision is made annually in the budget for the cost of
substitute personnel. There is limited payment for accumulated sick leave at
the time of retirement. The gross amount of unused compensated absences is
recorded in the General Long-Term Debt group of accounts and Food Service
Fund.
Cash and cash equivalents
For purposes of the Food Service Fund and Nonexpendable Trust Fund statement of
cash flows, the District considers all deposits purchased with an original
maturity of three months or less to be cash or cash equivalents.
Budgets
The District adopts, prior to the beginning of each fiscal year, an annual budget
for the General Fund and Athletic Fund. A part of this budget process is the
adoption of local tax rates, subject to various legal restrictions. The District
approves subsequent budget revisions (primarily transfers between expenditure
categories) or amendments, as necessary. Unused appropriations expire at the end
of the year.
Revenue - Local sources
Real estate, residence and occupation taxes are levied as of July 1 with a legal,
enforceable claim against the taxpayer and/or property. These taxes are
recognized as revenue when received during the fiscal year or soon enough
thereafter to be susceptible to accrual.
An allowance for uncollectibles is recorded for taxes levied for the current
fiscal year and estimated doubtful of collection within one year after the end of
the fiscal year.
Other tax revenues, including taxpayer-assessed revenues such as
taxes, are recognized as revenue when received during the fiscal
enough thereafter to be susceptible to accrual.
earned income
year or soon
- 13 -
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2002
Summary of significant accounting policies (Cont'd.)
State subsidies due the District as current fiscal year entitlements are
recognized as revenue in the current fiscal year.
Revenue - Federal sources
Federal program funds applicable to expenditures in the current fiscal year but
expected to be received in the next fiscal year are recognized as revenue in the
current fiscal year.
Inter-fund transactions
Expenditures by the General Fund for the benefit of other funds are reflected in
the respective statements of revenue and expenditures/expenses, based on
management's estimates. The District does not attempt to allocate all costs which
benefit the other funds due to the difficulties associated with the measurement
of such benefits.
Utilities, salaries, etc. paid by the General Fund for the benefit of the Food
Service Fund amounting to $ 118,162 have been reflected on the respective
statements of revenue and expenditures for the year ended June 30, 2002, based on
management's estimates.
Pension plan
Substantially all full-time and part-time employees of the District participate
in a cost-sharing multiple employer defined benefit pension plan. The District
recognizes expenditures or expenses equal to its contractually-required
contributions, subject to the modified accrual basis of accounting in
governmental funds.
3. Cash and cash equivalents
Cash and cash equivalents (other than $ 60 cash on hand) consists of checking,
savings and treasury management accounts deposited with financial institutions.
Cash and cash equivalents are categorized as follows:
Carrying Bank
Value Balance
Insured (FDIC)
Collateral held in District's name
Collateral not held in District's name
100,000 $ 100,000
802,755 . 1,243,012
$ 902,75__5 $ 1,343,012
- 14 -
MECHAI~ICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2002
Investments
Investments are categorized into these three categories of credit risk:
1. Insured or registered or securities held by the District or its agent in
the District's name.
2. Uninsured and unregistered, with securities held by the counterparty's
trust department or agent in the District's name.
3. Uninsured and unregistered, with securities held by the counterparty or by
its trust department or agent but not in the District's name.
The investments, whose market value approximates cost due to the short term
nature of the investments, are categorized as follows:
Category Carrying Fair
1 2 3 Amount Value
Mutual Fund $ $ $ 41
Pooled investment accounts
Total investments
$ 41 $ 41
18,697,609 18,698,670
$ 18,697,650
$ 18,698,711
The types of authorized investments are limited by State regulations. Investment
policies followed during the year did not significantly alter the categorization
of investments shown above.
Delinquent taxes receivable
Delinquent taxes receivable at June 30, 2002 consist of the following:
Delinquent taxes receivable held
by delinquent collectors
Less: allowance for uncollectibles
Net Delinquent taxes receivable
Accounts receivable
Real
Estate Personal Total
$ 293,001 $ 336,078 $ 629,079
87,900 63,855 151,755
$ 205,101 $ 272,223 $ 477,324
General Fund accounts receivable at June 30, 2002 consist of the following:
Subsidies
Due from other governmental units
Other
$ 522,682
789,904
188,735
$ _1,501,321
- 15 -
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2002
7. Land, buildings and equipment
The schedule below presents estimated historical cost of land, buildings and
equipment. These amounts were obtained, in the most part, from a valuation report
prepared as of May, 2001 and updated by management to June 30, 2002. It includes
equipment held in the Food Service Fund.
July 1, 2001 Additions Disposals June 30, 2002
Land $ 605,983 $ $ - $ 605,983
Land improvements 1,528,196 - 1,528,196
Buildings 12,927,623 - 12,927,623
Equipment 8,890,254 619,290 230,550 9,278,994
General fixed assets
$ 23,952,056 $ 619,290 $ 230,550 $ 24,340~796
Food Service Fund
fixed assets
Furnishings and
equipment $ 254,726 $ 31,461 $ $ 286,187
Accumulated
depreciation (129,561) (26,454) (156,015)
Totals $ 125,165 $ 5,007 $ 0 $ 130,172
8. Bonds payable
A summary of changes in bonds payable for the year ended June 30, 2002 is as
follows:
General New
Obligation Interest Issuance
Bonds/Notes Beginning Accretion Proceeds Repayments Ending
Series of 1992,
General Obligation Bonds
6.23%, Maturing 9/1/2005 $ 4,357,787 $ 249,275 $ $ 1,025,000 $ 3,582,062
Series of 1998,
General Obligation Bonds
4.0% to 4.6%,
Maturing 2/15/2013
Series A of 1998,
General Obligation Bonds
3.9% to 4.3%,
Maturing 9/1/2009
9,455,000 10,000
3,190,000 300,000 2,890,000
Series of 2000,
General Obligation Bonds
5.3% to 5.5%,
Maturing 8/15/2016 4,995,000 5,000
Series A of 2000,
General Obligation Note,
En~naus Bond Pool, Variable
Interest, not to Exceed
(15.55%), Maturing 9/3/2002 15,000,000 15,000,000
4,990,000
- 16 -
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2002
Bonds payable (Cont'd.)
Obligation Interest Issuance
Bonds/Notes Beginning Accretion Proceeds Repayments Ending
Series B of 2000,
General Obligation Note,
Ermmaus Bond Pool,
Credit Facility
$ $ $ $ $
Series C of 2000,
General Obligation Note 4.5%
variable, Maturing 10/1/2016
5,000,000 5,000 4,995,000
Series of 2001,
General Obligation Bonds
3.95% to 5.00%,
Maturing 8/15/2019
10,000,000
10,000,000
Series of 2002,
General Obligation Bonds
2.00% to 5.00%,
Maturing 8/15/2022
$ 51,997,787 $
10,000,000 10,000,000
249,275 $ 10,000,000 $ %~,345.000 $ 45,902,062
(1) Series B of 2000, General Obligation Note, Emmaus Bond Pool Credit Facility
will not be used unless necessary to support the Series A of 2000, General
Obligation Note repayment. The amount of the credit facility is $ 15,371,590. The
availability of this credit facility was eliminated with the current refunding of
the Series A of 2000, Emmaus Bond Pool.
The Series of 1992, General Obligation Bonds consist of Capital Appreciation
Bonds. Interest accreted through the March 1 payment date of each year on the
Capital Appreciation Bonds is added to the carrying value. The bonds are due
semi-annually through September 1, 2005.
The Series of 1998, General Obligation Bonds are due semi-annually through
February 15, 2013. The District is planning to use these proceeds to construct a
new middle school and renovate the current middle school and high school.
The Series A of 1998, General Obligation Bonds are due semi-annually through
September 1, 2009. The proceeds of these bonds were used to refund the Series of
1993 General Obligation Bonds.
The Series of 2000, General Obligation Bonds in the amount of $ 4,995,000 are due
semi-annually through August 15, 2016. Proceeds of the issue are currently being
used to construct and equip a new middle school, and renovate existing elementary
and secondary school facilities.
- 17 -
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2002
8. Bonds payable (Cont'd.)
Series A of 2000, General Obligation Note in the amount of $ 15,000,000 is
nonelectoral debt issued through F~nmaus General Authority. No principal repayment
is due until maturity. The District also issued Series B of 2000, General
Obligation Note in the amount of $ 15,371,590 as a credit note made by Bayerische
Hypo-und Vereins Bank, AG. There were no draws taken under this credit facility
while it was outstanding. The credit note was to be utilized only in the event of
default or inability to repay the principal of Series A of 2000, General
Obligation Note. During April 2002, Series A was repaid from proceeds of the
original issue and Series B was closed.
Series C of 2000, General Obligation Note in the amount of $ 5,000,000 is
nonelectoral debt issued through the Emmaus General Authority's Variable Rate
Demand Bond program. The Note is due October, 2016. Proceeds will be used toward
planning and construction of a new middle school, capitalized interest and pay
issuance costs.
The Series of 2001, General Obligation Bonds are due semi-annually through August
15, 2019. Proceeds of the issue are currently being used to renovate the high
school and pay costs of issuing the bonds.
The Series of 2002, General Obligation Bonds are due semi-annually through August
15, 2022. Proceeds of the issue are currently being used to renovate the high
school and elementary school, and pay costs of issuing the bonds.
Future maturities and debt service requirements are as follows:
Year Total Principal Interest
Series of
1992 Capital
Appreciation
Bonds (1)
2002-2003 $ 3,273,000 $ 330,000 $ 1,918,000 $ 1,025,000
2003-2004 3,409,456 445,000 1,939,456 1,025,000
2004-2005 3,658,491 715,000 1,918,491 1,025,000
2005-2006 3,666,837 800,000 1,891,837 975,000
2006-2007 3,810,925 1,950,000 1,860,925 -
2007-2023 52,265,216 38,080,000 14,185,216 -
Totals $ 70,083,925 $ 42,320,000 $ 23,713,925 $ 4,050,000
(1)Reflects final maturity value of Capital Appreciation Bonds.
- 18 -
MECHAiqICSBURG AREA SCHOOL DISTRICT
NOTES TO FINA/~CIAL STATEMENTS (Cont'd.)
JUNE 30, 2002
9. Contribution to Food Service Fund
"Contribution to Food Service Fund" for the year ended June 30, 2002 includes the
following estimated expenses charged to the Food Service Fund and paid through
the General Fund:
Custodian wages
Administrative salaries
Employee benefits
Supplies
utilities and fuel
Social security subsidy
Retirement subsidy
13,392
38,524
4,875
6,102
57,538
(1,986)
(283)
$ 118,162
10. Inter-fund transfers
The combined statement of revenue and expenditures for the year ended June 30,
2002 includes the following inter-fund transfers and contributions from the
General Fund to/from the following funds which are recorded in the General Fund
as budgetary revenue/expenditures:
Revenue
1992 Construction Fund
2000 Emmaus Bond Pool
$ 6
22,102
Expenditures
Food Service Fund
Athletic Association
Debt Service Fund
$ 22,108
$ 118,162
45,000
2,660,573
$ 2,823,735
11. Compensated absences
The General Long-Term Debt account group includes $ 9,199,147 representing the
estimated gross amount of compensated absences, primarily sick leave, payable to
all District employees if they were to use this accumulated leave prior to
retirement. It was calculated by multiplying each employee's accumulated leave
time by the current per diem rate. If an employee retires with unused compensated
absences, the payout policy is as follows:
Emergency and personal
No payout.
Vacation (Administrative personnel)
Paid at current per diem rate.
- 19 -
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2002
11. Compensated absences (Cont'd.)
Sickness
Paid at the per diem rate paid to a substitute teacher at time of
retirement, based on a formula involving a percentage of accumulated
sick days and years of service. The maximum is 50% of accumulated
sick days after 20 years of service for the year ended June 30, 2001.
A summary of changes in compensated absences for 2001/2002 is as follows:
July 1, 2001 Net Change June 30, 2002
Administrators and support staff $ 1,301,941
Teachers 7,016,633
$ 465,222 $ 1,767,163
415,351 7,431,984
Food Service Fund
$ 8,318,574 $ 880,57~3 $ _9,199,147
$ __11,117 $ __15,767 $ __26,884
12. Pension plan
The District contributes to The Public School Employees' Retirement System (the
System), a governmental cost sharing multiple-employer defined benefit pension
plan. The plan is under the provisions of the PSERS Code (Act No. 96 of October
2, 1975, as amended), as amended. The plan provides retirement and disability,
legislative mandated ad hoc cost-of-living adjustments, and healthcare insurance
premium assistance to qualifying annuitants. The System issues a comprehensive
annual financial report that includes financial statements and required
supplementary information for the plan. A copy of the report may be obtained by
writing to PSERS, P.O. Box 125, Harrisburg, PA 17108-0125, or the System's
website at www.psers.state.pa.us.
The contribution policy is established by the Code and requires contributions by
active members, employers, and the Commonwealth. Active members are required to
contribute 5.25 percent of their qualifying compensation if they joined the plan
before July 22, 1983, and 6.25 percent if they joined on or after that date.
Members who joined the System after June 30, 2001 contribute at 7.50%.
Contributions required of employers are based upon an actuarial valuation.
For the fiscal year ended June 30, 2002 the employer contribution rate was 1.09
percent of covered payroll attributed to healthcare insurance premium assistance.
The District's contributions to PSERS for the years ending June 30, 2002, 2001,
and 2000 were $ 194,687, $ 315,013, and $ 706,207, respectively. Those amounts
are equal to the required contribution for each year.
13. Post-employment benefits other than pension benefits
The District does not offer any post-employment benefits to retired employees
other than pension benefits as discussed in Note 12. The District will, however,
allow retired employees to remain in its group medical insurance plan upon
payment of the cost of such coverage by the retired employee.
- 20 -
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINA/~CIAL STATEMENTS (Cont'd.)
JUNE 30, 2002
14~ Operating leases
The District is obligated under various equipment, vehicle, and modular classroom
lease agreements at June 30, 2002. The following is a schedule of future minimum
rental payments required under the operating lease agreements.
Year Ending
June 30
2003 $ 141,632
2004 44,131
2005 23,831
2006 16,933
2007 7,055
Total minimum payments required
$ 233,582
15. Tax collections
Property Tax
The District's property tax is levied each July 1 on the assessed value as of
that date as maintained by Cumberland County for all nonexempt real property
located in the School District. The assessed value of the roll upon which the
levy for the 2001-2002 year was based approximated $ 1,491,300,000. The tax
millage rate assessed for the year ended June 30, 2002 was 10.8 mills ($ 1.08 per
$ 100 valuation).
Real estate taxes attach as an enforceable lien on property on July 1. The taxes
are collected by an elected tax collector. Taxes paid through August 31 are given
a 2% discount. Taxes paid after October 31 are charged a 10% penalty. Delinquent
real estate taxes are collected by Cumberland County.
Occupation, per capita and residence taxes
Occupation taxes are assessed based on employment classifications determined by
Cumberland County. They are levied July 1 at a rate of 110% of assessed
classification value. Occupation taxes have been replaced by an increase in
earned income taxes effective July 1, 2002.
Per capita and residence taxes are levied as of July 1 at a flat rate of $ 5 each
and are assessed based on tax rolls maintained by Cumberland County.
Occupation, per capita and residence taxes are collected by an elected tax
collector. Taxes paid through July 31 are given a 2% discount. Taxes paid after
October 31 are charged a 10% penalty. Delinquent occupation, per capita and
residence taxes are collected by a Board appointed delinquent tax collector.
- 21 -
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2002
16. Fund equity
Fund balance reservations
Reservations of fund balances of Governmental Funds are established to either
satisfy legal covenants that require a portion of the fund balance be segregated
or identify the portion of the fund balance that is not appropriate for future
expenditures. Specific reservations of fund balance accounts are summarized
below.
Reserve for construction
Bond proceeds and earnings on invested proceeds are reserved for funding the
various construction and renovation projects of the District and are not to be
nsed in the ordinary course of the District's operations.
Reserve for debt service
The Series C of 2000 General Obligation Note charges interest on the
outstanding balance at a variable rate. The amortization of payments under
this note include a rate stabilization component which allows the District
ease in budgeting and provides a funding cushion should rates rise. The amount
transferred as a rate stabilization pasrment is reserved for payment of
interest under terms of the note agreement and is not to be used to pay
principal or in the ordinary course of the District's operations until the
issue is repaid.
Reserve for scholarships
Amounts included in the District's expendable and non-expendable trust funds
are reserved to provide funding to scholarship payouts and are not to be used
in the ordinary course of the District's operations.
17. Budget amendments
During June 2002, the School Board amended previously approved budgeted revenues
and expenditures to provide for additional grant funds received and the related
grant expenditures during 2001/2002.
Revenues Expenditures
Budget as originally adopted
June 2002 budget amendment
$ 31,618,810
196,145
$ 31,618,810
196,145
Budget as amended
$ 31,814,955 $ 31,814,955
- 22 -
MECHAIqICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2002
18. Risk Management
The District is exposed to various risks of loss related to torts; theft of,
damage to, and destruction of assets; errors and omissions; injuries to
employees; and natural disasters. The District maintains commercial insurance
coverage covering each of those risks of loss. Management believes such coverage
is sufficient to preclude any significant uninsured losses to the District.
Settled claims have not exceeded this commercial coverage in any of the past
three fiscal years.
For State unemployment compensation laws, the District is self-insured, which is
a common practice for local governmental units. Any unemployment claims are paid
by the District on a quarterly basis as incurred. The District incurred $ 3,225
in unemployment claims during 2001-2002. No claims were outstanding at June 30,
2002.
19. Commitments and contingencies
The District's collective bargaining agreement with its teaching staff expires
June 30, 2005.
In the normal course of business, the District is subject to legal disputes and
claims. The District does not anticipate any material losses from any pending or
threatened litigation, however, there is a possible action against the District
that could result in a judgement of approximately $ 40,000.
In the normal course of preparing for the subsequent school year, the District
has awarded bids for various supplies, fuel contracts, etc. No major commitments
in excess of routine requirements have been made by the District.
The District is audited by the Commonwealth of Pennsylvania, Department of the
Auditor General. Findings, if any, from these audits could result in the
repayment of funds, or the receipt of additional funds.
The District participates in numerous state and federal grant programs which are
governed by various rules and regulations of the grantor agencies. Costs charged
to the respective grant programs are subject to audit and review by the grantor
agencies; therefore, any findings or adjustments by the grantor agencies could
have an effect on the recorded grants receivable and/or deferred grant revenues
and on the related grant revenues and expenditures.
The District is contingently liable for outstanding lease rental debt of
Cumberland-Perry Vocational-Technical School beginning in 2001-2002. The District
is required to provide payment to the Vo-Tech totaling $ 137,980.
- 23 -
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINAiWCIAL STATEMENTS (Cont'd.)
JUNE 30, 2002
19. Commitments and contingencies (Cont'd.)
The District has undertaken several construction and renovation projects during
the year. Renovation of the High School and construction of the Middle School
were in process at June 30, 2002. Construction commitments under these contracts
at June 30, 2002 were as follows:
High School renovation
Middle School construction
$ 4,404,457
7,693,948
Total $ 12,098,405
The DistriCt has issued general obligation bonds to fund these projects as more
fully described in Note 8.
In addition, in connection with construction of the Middle School, the District
was required by the local municipality to obtain several letters-of-credit to
ensure completion of required roadwork and traffic signal installation totaling
$ 683,638.
20. New accounting pronouncements
During the year beginning July 1, 2002, the District will be required to
implement GASB Statement No. 34, ~Basic Financial Statements - and Management's
Discussion and Analysis - for State and Local Governments", GASB Statement No.
37, ~Basic Financial Statements - and Management's Discussion and Analysis - for
State and Local Governments: Omnibus", and GASB Statement No. 38, ~Certain
Financial Statement Note Disclosures". The effect of these statements will
significantly affect how the District presents its financial statements. The
District receives information from various sources, including the Pennsylvania
Department of Education, and expects to be ready to satisfactorily implement
these accounting standards.
- 24 -
SUPPLF~ENTA~Y INFOI~TION
MECHANICSBURG AREA SCHOOL DISTRICT
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2002
Local sources
Current real estate taxes
Public utility realty tax
Current per capita taxes
Current Act 511 per capita taxes
Occupation privilege taxes
Current occupation taxes
Real estate transfer taxes
Earned income taxes
Delinquent taxes, all levies
Tuition and other payments from
patrons
Earnings from temporary deposits
and investments
Student activities
Rent from School and other facilities
Community services activities
Miscellaneous revenue
Total local sources
State sources
Basic instructional subsidy
Homebound instruction
Vocational education
School performance incentives
Special education
Transportation
Rentals and Sinking Fund payments
Driver education
Health services
Social security
Retirement
Read to succeed
Tuition - court placed students
Alternative education grant
Miscellaneous grants
Actual Budget
Favorable
(Unfavorable)
$ 15,978,735 $ 15,845,916 $ 132,819
41,178 58,400 (17,222)
77,679 75,410 2,269
77,679 75,410 2,269
75,506 80,359 (4,853)
3,602,950 3,590,511 12,439
757,833 398,820 359,013
2,623,087 2,597,028 26,059
313,077 465,000 (151,923)
23,547,724 23,186,854 360,870
13,207 10,000 3,207
273,862 493,000 (219,138)
12,799 12,500 299
31,690 16,900 14,790
116,234 110,000 6,234
186,741 1,200 185,541
634,533 643,600 (9,067)
24,182,257 23,830,454 351,803
4,467,364 4,465,690 1,674
361 361
17,790 16,849 941
49,421 49,421
1,361,927 1,359,301 2,626
292,180 260,000 32,180
415,206 336,700 78,506
5,745 7,000 (1,255)
90,493 90,000 493
691,280 701,753 (10,473)
96,287 99,796 (3,509)
53,565 56,250 (2,685)
22,519 20,000 2,519
26,800 29,859 (3,059)
28,673 38,871 (10,198)
7,619,611 7,531,490 88,121
(Continued)
- 25 -
MECHANICSBURG AREA SCHOOL DISTRICT
GENERAL FUND
STATEMENT OF REVEArJE, EXPENDITURES
AND CHA~GES IN FUND BALANCES (Cont'd.)
YEAR ENDED JUNE 30, 2002
Revenue
Federal sources
IDEA Part B
Title I
Title II
Title VI
Drug free schools
Learn and serve America
Class Size Reduction Initiative
Total revenue
Expenditures
Regular programs
Personnel services - salaries
Personnel services - employee benefits
Purchased professional and
technical services
Other purchased services
Supplies
Property
Other objects
Special programs
Personnel services - salaries
Personnel services - employee benefits
Purchased professional and
technical services
Purchased property services
Other purchased services
Supplies
Other objects
Vocational education programs
Other purchased services
Actual
Budget
Variance
Favorable
(Unfavorable)
169 675
113 524
19 158
29 814
14 603
4 000
64 713
415 487
32,217,355
$ 162,869 $ 6,806
113,524
9,340 9,818
48,878 (19,064)
14,753 (150)
4,000
19,486 45,227
372,850 42,637
31,734,794 482,561
11,085,057
2,458,497
111,891
131,813
655,170
35,558
61,304
14,539,290
11,085,499
2,458,501
111,892
63,509
655,795
36,114
61,307
14,472,617
442
4
1
(68,304)
625
556
3
(66,673)
2,012,748
502,005
779,596
3,460
249,270
19,238
27,893
3,594,210
345,746
2,013,171
502,011
779,622
3,480
249,270
19,276
27,936
3,594,766
345,748
423
6
26
20
38
43
556
2
(Continued)
- 26 -
MECHANICSBURG AREA SCHOOL DISTRICT
GENEP~AL FUND
STATEMENT OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCES (Cont'd.)
YEAR ENDED JUNE 30, 2002
Expenditures
Other instructional programs
Personnel services - salaries
Personnel services - employee benefits
Purchased professional and
technical services
Purchased property services
Other purchased services
Supplies
Other objects
Community College education programs
Other purchased services
Total instruction
Support services - pupil personnel
Personnel services - salaries
Personnel services - employee benefits
Purchased professional and
technical services
Other purchased services
Supplies
Property
Other objects
Support services - instructional staff
Personnel services - salaries
Personnel services - employee benefits
Purchased professional and
technical services
Purchased property services
Other purchased services
Supplies
Property
Other objects
Actual Budget
$ 240,639 $ 240,643
55,922 55,926
variance
Favorable
{Unfavorable)
$ 4
4
11,501 11,510 9
6,792 6,792
21,674 21,680 6
71,650 72,788 1,138
- 350 350
408,178 409,689 1,511
393,760 394,450 690
19,281,184 19,217,270 (63,914)
710,138 710,145
148,855 148,856
70,281 70,312 31
2,754 2,760 6
23,768 23,772 4
802 810 8
- 490 490
956,598 957,145 547
934,573 935,039
221,942 221,949
47,321 47,330
18,803 18,810
5,883 5,889
159,612 159,612
359,214 359,220
47,762 47,762
1,795,110 1,795,611
466
7
501
(Continued)
- 27 -
MECHANICSBURG AREA SCHOOL DISTRICT
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCES (Cont'd.)
YEAR ENDED JUNE 30, 2002
Expenditures
Support services - administration
Personnel services - salaries
Personnel services - employee benefits
Purchased professional and
technical services
Purchased property services
Other purchased services
Supplies
Other objects
Support services - pupil health
Personnel services - salaries
Personnel services - employee benefits
Purchased professional and
technical services
Other purchased services
Supplies
Property
Other objects
Support services - business
Personnel services - salaries
Personnel services - employee benefits
Purchased professional and
technical services
Other purchased services
Supplies
Property
Other objects
Operation and maintenance of plant
services
Personnel services - salaries
Personnel services - employee benefits
Purchased property services
Other purchased services
Supplies
Property
Other objects
Actual
Budget
Variance
Favorable
(Unfavorable)
$ 1,259,201 $ 1,259,682 $ 481
277,805 277,817 12
201,470
10,237
68,451
46,501
39,580
1,903,245
201,473
10,240
68,456
46,504
39,759
1,903,931
3
3
5
3
179
686
327
109
1
8
15
,139
,469
, 028
677
, 714
· 056
388
462,471
327,141
110,472
1,200
938
8,716
15,060
390
463,917
2
1,003
172
261
2
4
2
1,446
275
69
,862
,126
23,201
6,523
31,719
425
8,022
414,878
275,869
69,133
23,205
7,465
31,723
430
8,040
415,865
4
942
4
5
18
987
859 245
274 770
580 438
57 892
511 548
9 364
23 487
2,316,744
860,703
274,770
580,440
58,198
512,030
9,420
23,490
2,319,051
1,458
2
306
482
56
3
2,307
(Continued)
- 28 -
MECHANICSBURG AREA SCHOOL DISTRICT
GENERAL FUND
STATEMENT OF REVENrGE, EXPENDITURES
AND CHANGES IN FUND BALANCES (Cont'd.)
YEAR ENDED JUNE 30, 2002
Expenditures
Student transportation services
Personnel services - salaries
Personnel services - employee benefits
Other purchased services
Supplies
Property
Other objects
Central services
Supplies
Other support services
Other purchased services
Total support services
Student activities
Personnel services - salaries
Personnel services - employee benefits
Purchased professional and
technical services
Other purchased services
Supplies
Property
Other objects
Community services
Personnel services - salaries
Personnel services - employee benefits
Purchased professional and
technical services
Other purchased services
Supplies
Other objects
Total operation of
noninstructional services
Actual Budget
22,900 $ 22,902
3,796 3,796
912,880 912,888
39,138 40,580
52O
896 900
979,610 981,586
890
85,922 85,925
8,914,578 8,923,921
Variance
Favorable
(Unfavorable)
2
8
442
520
4
1,976
890
3
9,343
386,065 386,073 8
49,533 50,594 1,061
10,700 10,700
15,401 15,401 -
36,762 38,208 1,446
10,285 10,290 5
48,271 48,275 4
557,017 559,541 2,524
95,357 95,359
25,813 25,821
77,790 77,790
183 190
6,785 6,790
12,455 12,640
218,383 218,590
775,400 778,131
7
5
185
207
2,731
(Continued)
- 29 -
MECHANICSBURG AREA SCHOOL DISTRICT
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES
AND CHANGES IN FIIND BALANCES (Cont'd.)
YEAR ENDED JUNE 30, 2002
Expenditures
Facilities acquisitions, construction,
and improvement services
Purchased property services
Supplies
Property
Total expenditures
Excess of revenue over expenditures
Other financing sources (uses)
Debt service payments
Transfers from other funds
Governmental fund transfers
Food service transfers
Total other financing
sources (uses)
Excess of revenue and other financing
sources over (under) expenditures
and other financing uses
Actual
Budget
Variance
Favorable
(Unfavorable)
$ 43,200 $ 43,200 $ -
8,7O5 8,705 -
19,989 19,990 1
71,894
29,043,056
3,174,299
22,108
(2,705,573)
(118,162)
(2,801,627)
71,895 1
28,991,217 (51,839)
2,743,577 430,722
(3) 3
22,108
(2,705,573) -
(118,162) -
(2,823,738) 22,111
372,672 (80,161) 452,833
Fund balances, July 1, 2001
Fund balances, June 30, 2002
4,030,198 4,182,597 (152,399)
$ 4,402,870 $ 4,102,436
$ ~300,434
See accompanying report on supplementary information.
- 30 -
MECHANICSBURG AREA SCHOOL DISTRICT
COMBINING BALANCE SHEET
ALL CONSTRUCTION FUNDS
JUNE 30, 2002
Assets
Investments
GOB Series
1998
Variable G0N
GOB Series Series A
2000 Of 2000
$ 3,053,664 $ 579,105 $ 3,132,673
Total assets $ 3,053,664
Liabilities and fund equity
Liabilities
Due to general fund
Due to other funds
Accounts payable
Total liabilities
$
1,611,565
1,611,565
1,442,099
Fund equity
Reserved fund balances
Total liabilities and fund equity $ 3,053,664
$ 579,105 $ _3,132,673
$
1,500
111,087
0 112,587
579,105 3,020,086
$ 579,105 $ 3,132,673
See accompanying report on supplementary information.
Emmaus Bond GOB Series GOB Series
Pool, 2000 2001 2002
Total
$ 353,303 $ 6,302,527
$ 353,303 $ ~6,302,527
$ 13,421,272
$ 23,421,272
$ 824 $
20,052 830,111
20,876
830,111
5,472,416
$ 824
1,500
2,572,815
2,575,139
10,846,133
332,427
$ 353,303 $ 6,302,527
$ 13,421,272
MECHANICSBURG AREA SCHOOL DISTRICT
COMBINING STATEMENT OF REVENUE, EXPENDITURES
kND CHANGES IN FUND BALANCE -
ALL CONSTRUCTION FUNDS
YEAR ENDED JUNE 30, 2002
Investment income
Total revenue
Expenditures
Facilities acquisition, construction
and improvement services
Total expenditures
Excess of revenue (under) expenditures
Other financing sources (uses)
Bond proceeds
Bond issuance costs
Transfer to General Fund
Transfer to Debt Service Fund
Total other financing
sources (uses)
Excess of revenue and other financing
sources over (under) expenditures
and other financing uses
Fund balances, July 1, 2001
Fund balances, June 30, 2002
GOB Series GOB Series
1998 2000
Variable GON
Series A
Of 2000
$ 239,085 $ 51,840 $ 105,783
239,085 51,840 105,783
8,845,699 3,028,010 2,238,592
8,845,699 3,028,010 2,238,592
(8,606,614) (2,976,170) (2,132,809)
0 0 0
(8,606,614) (2,976,170) (2,132,809)
10,048,713 3,555,275 5,152,895
$ 1,442,099 $ 579,105 $ 3,020,086
See accompanying report on supplementary information.
- 32 -
Emmaus Bond GOB Series GOB Series
Pool, 2000 2001 2002
Total
254,851 $ 229,098 $ 38,423 $ 919,080
254,851 229,098 38,423 919,080
839,575 9,661,700 2,321,323 26,934,899
839,575 9,661,700 2,321,323 26,934,899
(584,724) (9,432,602) (2,282,900) (26,015,819)
10,000,000 10,000,000
(144,684) (144,684)
(22,102) (22,102)
(13,208,815) (189,945) (2,100,000) (15,498,760)
(13,230,917) (189,945) 7,755,316 (5,665,546)
(13,815,641) (9,622,547) 5,472,416 (31,681,365)
13,815,641 9,954,974 0 42,527,498
0 $ 332,427 $ 5,472,416 $ 10,846,133
MECHANICSBURG AREA SCHOOL DISTRICT
SPECIAL REVENUE FUND - ATHLETIC ASSOCIATION
STATEMENT OF REVENUE AND EXPENDITURES
YEAR ENDED JUNE 30, 2002
Revenue
Season tickets
Football gate
Jr. High gate
Basketball gate
Soccer gate
Volleyball gate
Wrestling gate
Program sales
Program ads
Lost equipment
Golf tournament
Concession stand
District playoff
General Fund
Miscellaneous
Total revenue
Expenditures Football
Jr. High football
Basketball
Wrestling
Swimming
Baseball
Soccer
Track
Golf
Golf tournament
Cross country
Volleyball
Tennis
Girls' sports
Field hockey
Varsity volleyball
Varsity basketball
Varsity softball
Varsity soccer
Cheerleaders
10,039
38,113
2,198
17,179
6,394
3,448
6,920
1,704
5,560
1,292
2,790
4,580
13,487
45,000
4,157
162,861
25,652
8,958
8,447
4,215
4,698
8,983
6,184
4,828
2,804
3,144
2,649
3,742
1,677
2,800
2,980
6,706
6,499
6,625
1,346
(Continued)
- 33 -
MECHANICSBURG AREA SCHOOL DISTRICT
SPECIAL REVENUE FUND - ATHLETIC ASSOCIATION
STATEMENT OF REVENUE AND EXPENDITURES (Cont'd.)
YEAR ENDED JUNE 30, 2002
Expenditures (Cont'd.) Jr. High other sports
District III and state playoffs
Training supplies
Dues, subscriptions and meetings
Purchased services
Miscellaneous
Utilities
Concession stand
Weight room
Total expenditures
Excess revenue (under) expenditures
14,563
15,933
7,611
5,201
3,205
6,023
271
36
130
165,910
(3,049)
See accompanying report on supplementary information.
- 34 -
MECHANICSBURG AREA SCHOOL DISTRICT
COMBINING BALANCE SHEET
EXPENDABLE, NON-EXPENDABLE TRUST AND DISTRICT AGENCY FUNDS
JUNE 30, 2002
Assets
Cash and cash equivalents
Due from other funds
Total assets $
Liabilities
Due to other funds $
Due to other organizations
Total liabilities
Fund equity
Reserved fund balances
Total liabilities
and fund equity $
Fiduciary Funds Total
Expendable Non-expendable Trust
Trust Trust Funds
16,262 $ 67,555 $ 83,817
1,898 1,898
18,160 $ 67,555 $ 85,715
$ 1,898 $ 1,898
0 1,898 1,898
18,160 65,657 83,817
18,160 $ 67,555 $ 85,715
Agency Fund Total Trust
District And Agency
Agency Fund Funds
$ 154,451 $ 238,268
- 1,898
$ 154,451 $ __240,166
$ $ 1,898
154,451 154,451
154,451 156,349
83,817
$ 154,451 $ 240,166
See accompanying report on supplementary information.
- 35 -
MECHANICSBURG AREA SCHOOL DISTRICT
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - ALL TRUST FUNDS
YEAR ENDED JUNE 30, 2002
Revenue and other financing sources
Investment income
Contributions
Total operating revenue
Operating expenses
Supplies and services
Scholarship awards
Total operating expenses
Operating income
Transfers to (from) trust accounts
Net income
Reserved fund balance, July 1, 2001
Reserved fund balance, June 30, 2002
Expendable Non-expendable
Trust Trust
Total
395 $ 1,275 $ 1,670
4,676 4,550 9,226
5,071 5,825 10,896
25 25
3,082 2,458 5,540
3,107 2,458 5,565
1,964 3,367 5,331
(355) 355
1,609 3,722 5,331
16,551 61,935 78,486
18,160 $ __65,657 $ __83,817
See accompanying report on supplementary information.
-36 -