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Home My WebLink About00-07774 .' . , t)J. 7"0' . . . . . eo . . ~. /1 ~ '" (Jrccltllwlllt <t eOll1plllt!l, p. e. ~ IT "'-eO. G'~ .9a6k ~ . . .. . . .. .. ,. '. '. .. w'n',," ~ ' I '--"~,_",-"": 'I,t, ,(,d'~'~<'C', . ,~,r.<_' BIG SPRING SCHOOL DISTRICT NEWVILLE, PENNSYLVANIA JUNE 30, 2000 c' ,. ,. .. i_ ! ! I I ! I- I I I' r'.'..,' , i il II- I' " I " I _ ~ I,. il Ii !i Ii i ,- il !i I I , I, I'. I' I I' I. i I I. Ii Ii h:",,"" INDEX Independent auditors' report Combined balance sheet - all fund types and account groups - June 30, 2000 Combined statement of revenue, expenditures and changes in fund balances - All Governmental Fund Types - year ended June 30, 2000 Statement of revenue, expenditures and changes in fund balances - actual and budget - General and Athletic Funds year ended June 30, 2000 Statement of revenue, expenses and changes in fund balance/retained earnings - Food Service Fund - year ended June 30, 2000 Statement of cash flows - Food Service Fund - year ended June 30, 2000 Notes to financial statements - June 30, 2000 '! '",~_'n"""I""'''''1!>'1 ." ~'H -'-,- -", , -""-,-"~ Page Number 1 2 3 4 - 5 6 7 8 - 18 " It GREENAWALT & COMPANY, P.C. . JAMES E. LYONS HOWARD R. GREENAWALT CREEDON R. HOFFMAN JOHN H. KLINGLER DEBORAH J. KELLY R. A. GREENAWALT (19'6-1983) A. A. REIDINGER (RETIRED) C. mWARD ROGERS, JR. CERTIFIED PUBLIC ACCOUNTANTS 400 WEST MAiN STREET MECHANlCSBURG. PENNSYLVANIA 17055 17171766.4763 FAX (7171 766-2731 62 WEST POMFRET STREET CARLlSLE. PA 17013 (717) 243-4822 FAX (717) 2'8-9372 INDEPENDENT AUDITORS' REPORT . Board of School Directors Big Spring School District Newville, Pennsylvania ; 'Ii We have audited the accompanying general-purpose financial statements of Big Spring School District as of June 30, 2000 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 generally accepted auditing standards and 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. An 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 accompanying general-purpose financial statements present fairly, in all material respects, the financial position of Big Spring School District as of June 30, 2000, the results of its operations and the cash flows of its Food Service Fund for the year then ended, in conformity with generally accepted accounting principles. It In accordance with Government Auditing Standards, we have also issued our report dated September 21, 2000 on our consideration of Big Spring 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 a!1 in~egral 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. /~~ ""'.,',., . . ~~I?c, GREENAWALT & co~dGy, pyt. September 21, 2000 '* Mechanicsburg, Pennsylvania - 1 - . MEMBERS - AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS - PENNSYLVANIA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ~.,,_e "'<"""0'1"'1' "'. "'"1"0'.;' ~ '" ,.- "",,',,' .0' '.'~"- "'". ,- ,,' _ ,.~ A _- ",,', " , ~". " '"'~ ',,~" ,.--,- BIG SPRING SCHOOL DISTRICT COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2000 Assets and other debits Cash $ Investments Due from other funds Accounts receivable Delinquent taxes receivable (net of $ 388,923 allowance for uncollectibles) Food service inventories Food service equipment (net of $ 268,981 accumulated depreciation) Land, buildings and equipment Amount to be provided for general long-term debt Total assets and other debits Liabilities Payroll and benefits payable $ Accounts payable Deferred revenue Due to other funds Due to student organizations Bonds and notes payable Compensated absences 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 General Governmental Fund Types Capital Athletic Reserve 2,131,276 3,297,209 80,452 1,245,429 $ 1,663 $ 688,165 8,227 1,505 420,000 $ 7,174.366 $ 9.890 $ 689.670 1,116,642 445,505 289,534 $ $ 9,248 59,093 1,851,681 9,248 59,093 5,322,685 642 630,577 5,322,685 642 630,577 $ 7,174,366 $ $ 689.670 9.890 The accornpanyin9 notes are an integral part of these financial statements. - 2 - ~, <. 'llii. . 41 Capital Proiects $ 25,198,998 4,911,056 '. '. . $ 30.110.054 $ . 106,721 . 106,721 ~ 30,003,333 30,003,333 "~ lliI~ $ 30.110.054 II III '~'- ., ~--.....,."" ~I;~_ U _~"~,.~ ~," ,,_~~lli!III'lIII!f'>llM~'OOlf1,,"!'!!'*?'{Mf~])'-,~~';1''''';'''t1''*:ri'f"W'!~~~~,"'m''11~':lirtll!O~>'J;Ffl~il!li1ili'lll!f<m!V11!ffi.;~~;mlll"'_llf.IIi!J~ . t\lnl~ .. .. ., .~ ,,.. i~. ,'~J>..""'I Proprietary Fund Types Food Service $ 186,328 32,500 183,611 183,611 $ 361.126 Fiduciary Fund Types Activity $ 160,957 $ 160,957 "~~_'",'q =~ -'F ,~, 0" _ '.._0__ '"'. " Account Groups General General Fixed Assets Lonq-Term Debt $ 17,511,721 o 17,511,721 $ 17,511.721 ,of, ," $ o $ 34,532,105 . , . . ~- - . BIG SPRING SCHOOL DISTRICT COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2000 ill' . Revenue Local sources State sources Federal sources Total revenue '. Expenditures Instruction Support services Operation of nonin- structional services Facilities acquisition, construction and improvement Debt service . Total expenditures '. Excess of revenue over (under) expenditures ;~ Other financing sources (uses) Proceeds from capital lease Receipts from other districts Governmental fund transfers Food service transfers ~ Total other financing sources (uses) ::t Excess of revenue and other financing sources over (under) expenditures and other financing uses Fund balances, July 1, 1999 Fund balances, June 30, 2000 General Capital Reserve Capital proiects Athletic $ 11,376,047 10,971,030 335,867 $ 17 ,205 $ 2,187,320 $ 50,911 22,682,944 2,187,320 50,911 17,205 13,473,248 6,699,716 323,460 43,567 58,742 338,139 113,815 1,379,538 511,708 894,328 21,890,641 113,815 367,027 1,464,778 792,303 (62,904) (349,822) 722,542 184,380 51,140 (616,267) (27,000) 55,000 561,267 (407,747) 55,000 561,267 o 384,556 (7,904 ) 211,445 722,542 4,938,129 8,546 419,132 29,280,791 $ 5,322,685 $ 642 $ 630,577 $ 30.003.333 The accompanying notes are an integral part of these financial statements. ~l <~ I _~,~ - ~"- '"I "1 "'.- ~, - - 3 - " , , " m . BIG SPRING SCHOOL DISTRICT STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET GENERAL AND ATHLETIC FUNDS YEAR ENDED JUNE 30, 2000 ill General . Variance Favorable Actual Budqet (Unfavorable) Revenue Local sources $ 11,376,047 $ 11,290,977 $ 85,070 .. State sources 10,971,030 10,632,816 338,214 Federal sources 335,867 397,021 (61,154) Total revenue 22,682,944 22,320,814 362,130 Expenditures . Instruction Regular programs 10,100,087 10,325,576 225,489 Special programs 2,437,226 2,558,537 121,311 Vocational education programs 432,500 472,704 40,204 OthE~r instructional programs 502,711 536,544 33,833 Adult education programs 724 8,420 7,696 iii Total instruction 13,473,248 13,901,781 428,533 Support services Pupil personnel 541,357 573,331 31,974 Instructional staff 834,417 899,946 65,529 t Administration 1,327,406 1,327,487 81 Pupil health 174,961 174,962 1 Business 453,889 523,092 69,203 Operation and maintenance of plant services 1,913,694 2,012,531 98,837 Student transportation services 1,422,402 1,422,920 518 I Other support services 31,590 31,591 1 Total support services 6,699,716 6,965,860 266,144 . (Continued) - - 4 - . "," ~ . _"".~ ,_~___"=._ ,~,' . Co" ,". ",' ", T~ . !'Jl!~~~]'I't':~"f.?'-'"""""~"'iIIlllf'~~!-~!'~~. ,...",,--- -- .. . . Athletic Variance Favorable Actual Budqet (Unfavorable) . $ 50,911 $ 48,250 $ 2,661 50,911 48,250 2,661 .. .. o o o '. o o o '. ,~ '1 ',";'- ^, <<_,_", ~"".r _,__ .. "~ ~ c ~__ " n_'__" ,. " ~ "In iIDfl' " .. BIG SPRING SCHOOL DISTRICT STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET GENERAL AND ATHLETIC FUNDS (Cont'd.) YEAR ENDED JUNE 30, 2000 , General Actual Budqet Variance Favorable (Unfavorable) '. Expenditures (Cont'd,) Operation of noninstructional services Student activities Community services '. $ 322,605 $ 15,534 351,266 16,178 $ 28,661 644 Total operation of non- instructional services 338,139 367,444 29,305 111II Debt service 1,379,538 1,379,539 1 Total expenditures 21,890,641 22,614,624 723,983 Excess of revenue over (under) expenditures 792,303 (293,810) 1,086,113 ill Other financing sources (uses) Proceeds from capital lease Receipts from other districts Fund transfers Budgetary reserve 184,380 51,140 (643,267) (643,267) (62,923) 184,380 51,140 o 62,923 lit Total other financing sources (uses) (407,747) (706,190) 298,443 Excess of revenue and other financing sources over (under) expenditures and othE2r financing uses 384,556 (1,000,000) 1,384,556 ~I Fund balances, July 1, 1999 4,938,129 5,036,634 (98,505) Fund balances, June 30, 2000 $ 5.322,685 $ 4,036,634 $ L 286. 051 4' The accompanying notes are an integral part of these financial statements. 4t, - 5 - dl ~~, "~,~~._~" ~~,- ","",,' , _ ~1l'l!I\l;lt,~_,"~,,,,,,"~A~~:,;;~~,,,l~l~j!I<,\(jiH.jjJ'!!t!IjI"f..WI!:ilIf~fl<",''''''"~~'''''""'m':~~_~_HIII!~IfflW?l'l!Il;~~I~ ~ \I .. . Athletic Budqet Variance Favorable (Unfavorable) Actual ,. $ 113,815 $ 126,815 $ 13,000 113,815 126,815 13,000 , 0 0 0 113,815 126,815 13,000 . (62,904) (78,565) 15,661 55,000 78,565 (23,565) Ie 55,000 78,565 (23,565) ,~ (7,904 ) 0 (7,904 ) 8,546 0 8,546 $ 642 $ 0 $ 642 .;JJ; .0\1 ~" '''.1''---'-''1-,'''''''" -~ .~- ~' . -~.-- It . BIG SPRING SCHOOL DISTRICT STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCE/RETAINED EARNINGS FOOD SERVICE FUND YEAR ENDED JUNE 30, 2000 Operating revenue . Sales $ 577,848 Operating expenses Salaries and wages 325,761 Employee benefits 118,574 Food and milk 357,746 :. General supplies 12,793 Other expenses 8,861 Utilities and fuel 35,000 Depreciation 23,943 Total operating expenses 882,678 ,.11 Operating loss (304,830) Nonoperating revenue State sources Meal subsidies 18,912 '. Social security and retirement subsidies 19,276 Federal sources Meal subsidies 175,530 Donated commodities 46,379 Interest earned 7,783 . Total nonoperating revenue 267,880 Loss before transfers (36,950) Fund transfers General Fund contributed services 27,000 ,"j ,riai Net loss (9,950) Fund balance/retained earnings, July 1, 1999 193,561 Fund balance/retained earnings f June 30, 2000 $ 183,611 '. The accompanying notes are an integral part of these financial statements. J - 6 - ,'. ;','J,"c "'..1,",__"" ",c,~,_">_,, "., ~,-, -'f,>". _0 ~ _ " . .. BIG SPRING SCHOOL DISTRICT STATEMENT OF CASH FLOWS FOOD SERVICE FUND YEAR ENDED JUNE 30, 2000 . Operating activities Operating loss Adjustments to reconcile operating loss to net cash used in operating activities Depreciation Donated commodities earned General Fund contributed services 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 Net cash used in operating activities $ (304,830) 23,943 46,379 27,000 (3,639) 4,010 36 6,955 (2,780) (46,101) (4,400) (253,427) . ,. . Non capital financing activities Grants 'and subsidies State sources Federal sources Net cash provided by non capital financing activities 38,188 175,530 213,718 (14,299) 7,783 (6,516) (46,225) 232,553 $ 186,328 ,. Investing activities Purchase of equipment Interest earned Net cash used in investing activities . Net decrease in cash Cash, July 1, 1999 Cash, June 30, 2000 ,,~if"', ;/11III Supplemental disclosure of noncash financing activities Donated commodities received $ General Fund contributed services 43,599 27,000 !It The accompanying notes are an integral part of these financial statements. - 7 - . .,~^ ,-,.-I~~I, ~-___ -'?',"_'f-'c " _~" --e_" ,-c"- " \I BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2000 . 1. Reporting entity . Big Spring 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 its boundaries: the Cumberland County Townships of Cooke, Lower Frankford, Upper Frankford, Lower Mifflin, Upper Mifflin, North Newton, South Newton, Penn and West pennsboro, and the Borough of Newville. Services provided 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 this reporting entity. However, the District is a participant in two jointly- governed operations, each of which is a separate legal entity that offers educational services to the District and its residents. Each entity serves several school districts, so the following entities are not included in this reporting entity. Capi tal Area Intermediate Unit provides special education services and programs. . Cumberland-Perry Area Vocational-Technical School provides vocational and technical education services and programs. 2. Summary of significant accounting policies ,." ,jOil The accounting records of Big Spring School District are maintained on the basis of accounting practices prescribed or permitted by the Manual 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 accQunt'ing policies is as follows: . I Fund accounting ,,!!l .. The accounting records of the District are organized on the basis of fund types 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 Big Spring School District are as follows: :! l.lt - 8 - ii ;,1 " :<-...,~ -, - -". ~"I' ~ 'I," " - ~', -'-.- ~--- ,^' ,-' ~ ,- .~ .-- " . -~ .,~ ',"" .., ,. BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd,) JUNE 30, 2000 . 2. Summary of significant accounting policies (Cont'd.) Fund accounting (Cont'd.) . Governmental Fund Types - These are the funds through which most governmental functions are provided. The acquisition, use and balances of the District's expendable financial resources and related liabilities (except those accounted for in proprietary funds) are accounted for through governmental funds. ,. The General Fund accounts for all financial resources except those required to be accounted for in other funds. The majority of District activities, including instruction, administration and other services are accounted for in this fund. .. The Athletic Fund is a special revenue fund that accounts for the revenues and expenditures for athletic purposes. The Capital Reserve Fund provides for unspecified future construction or equipment needs. . The Capital Projects Fund accounts for bond proceeds and the expenditure of those funds. " , ! Proprietary Fund Types - These funds account f9r operations that are financed and operated in a manner similar to private business enterprises. :. The Food Service Fund accounts for the financial transactions associated with the operations of the cafeterias. Fiduciary Fund Types (Trust and Aqency Funds) - These funds account for assets held in a trustee capacity or as an agent for other funds or entities. . The Activity sponsored by schools. Fund accounts various clubs for programs operated and organizations within and the ,i:~ Account Groups - These 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 operation. General Fixed Assets accounts for land, equipment. buildings and General Long-Term Debt accounts for bonds, compensated absences payable in future years. notes and - 9 - <8 'I: \"'-";< '. I >-~""~"".~i''1_~,.." I~~-"'o":< ? . ~, , "~ ", ,," . .. . . '111 . i. , '. It . . ;:_~. '1- BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENT (Cont'd.) JUNE 30, 2000 2. Summary of significant accounting policies (Cont'd.) Basis of presentation The accounting and financial presentation methods of the different fund types are based on their measurement focus, which determines when revenues and expenditures are recognized. Governmental Fund Types - These funds use the "current financial resources" measurement focus, which is a modified accrual method. 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. Presentation follows accounting pronouncements required for private business enterprises, unless those pronouncements conflict with or contradict governmental accounting prouncements. Donated commodities are inventoried at an estimated value when received. Inventories (valued on the first-in, first-out method) are recorded as an asset, and the portion represented by donated commodities is recorded as deferred revenue. Food service equipment is capitalized, with depreciation (computed on the straight-line method using an estimated useful life of 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 Aqency Funds) - These funds use a modified accrual method. They are custodial in nature (assets equal liabilities), and are not involved with the measurement of results of operations (revenues and expenditures) . - 10 - "I"',",,".~,.I'''- " ,,(.~, < " ,'" .,- -. ~." '"' , " >.",.> -" . . . . . . . I . i. , ;. . ; ,-"-~, - BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENT (Cont'd.) JUNE 30, 2000 2. Summary of significant accounting policies (Cont'd.) Basis of presentation (Cont'd,) Account Groups - Land, buildings and equipment are presented at cost. Depreciation is not computed on these assets. Additions and disposals had been estimated since the previous outside valuation report, which was updated to October 1, 1999, Long-term debt is' offset taxation or other revenue notes payable in future Interest on long-term debt by an amount ,to be provided by future sources, General obligation bonds and years are recorded as District debt. is recognized when such interest is due. Compensated absences (those for which employees receive pay) are presented using the termination payment method. A liability is computed using estimates which apply historical data to current factors. The District maintains records of unused leave and applies the contracted rate for employees eligible for termination payments, The District allows only restricted sabbatical leave and therefore does not present any liability in advance of the sabbatical, 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 ,0 various legal restrictions. The District approves subsequent budget revisions (primarily transfers between expenditure categories) as necessary. Unused appropriations expire at the end of each year, The General Fund additional revenue of $ 502,858, budget was amended after its adoption to provide for and expenditures of federal and state programs in the amount Revenue - Local sources Local revenues are recognized when received during the fiscal year or soon enough thereafter to be susceptible to accrual. Real estate, occupation, residence and per capita taxes are levied as of July 1 with a legal, enforceable claim against the taxpayer and/or property. Amounts estimated to be received within one year after the end of the fiscal year, but not soon enough to be susceptible to accrual, are recorded as deferred revenue. An allowance for uncollectibles is recorded for taxes estimated not to be collectible within one year after the end of the fiscal year, - 11 - I" - ~-<; ~"- ." --",.""'-,"",>.., ,--;..p,~-" I,,",,~-:-'I' , e.~ '7 ,-, __., ." , '~ _, _,.n," -. ^ . . - ~. ". lIP BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2000 . 2. Summary of significant accounting policies (Cont'd,) Revenue - State sources . State revenues due the District as current fiscal year entitlements are recognized as revenue in the current fiscal year. Revenue - Federal sources . Federal revenues 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 '.o Expenditures by the General Fund for the benefit of other funds are in the respective statements of revenue and expenditures/expenses, management IS estimates. The District does not attempt to allocate which benefit the other funds due to the difficulties associated measurement of such benefits. reflected based on all costs wi th the 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 investments Cash (other than $ 80 cash on hand) consists of checking accounts in financial institutions and pooled funds in which the District owns a prorata share of the fund assets and is categorized as follows: ,. Carrying Value Bank Balance . Insured (FDIC) Collateral held in the District's name Collateral not held in the District's name, including public funds collateralized as permitted by Act 72 $ 200,000 $ 200,000 Pooled funds 678,291 878,291 27,489,016 751,189 951,189 27,763,667 . $ 28.367.307 $ 28.714,856 - 12 - .. ',,- "1_1""".'ff'_'_O - . ".'c " ~,. . , . . BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2000 3. Cash and investments (Cont'd,) . For purposes of the Food Service Fund statement of cash flows, cash consists of a checking account and pooled funds. Investments, which are presented at fair value, are as follows: Fair Value. Amortized Cost . Repurchase agreement (pooled) $ Pennsylvania Local Government Investment Trust 4,911,056 3,297,209 $ 4,911,056 3,297,209 $ 8,208,265 $ 8,208,265 i\l j Investments are categorized as follows: Pooled investments $ 0 $ 0 0 0 0 0 0 0 8,208,265 8,208,265 $ 8,208,265 $ 8,208,265 limited by state regulations. did not significantly alter the Insured Collateral held in the District's name Collateral not held in the District's name '. The types of authorized investments are Investment policies followed during the year categorization of investments shown above. . 4. Accounts receivable Accounts r~ceivable are as follows: '. General Fund Athletic Fund Capital Reserve Fund Food Service Fund Local sources Earned income taxes $ 587,457 $ Other items 102,490 State sources 146,208 .,$ Federal sources 84,216 South Central Trust rebate 250,000 Other receivables 75,058 $ L 245, 429 $ $ $ 2,909 26,948 8,227 1,505 2,643 8,227 $ L 505 $ 32,500 \I - 13 - ., ':', ,~- ~- ,.~ _'_~_cli"'_""",,_'1 . . ~" " -'. ^. -~ ". , ~ .. BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2000 .. 5. Delinquent taxes receivable Delinquent taxes receivable and the related deferred revenue are as follows: . Real estate taxes Occupation, residence and per capita taxes Delinquent taxes receivable Allowance for uncollectibles Estimated to be collectible within one year Portion recognized as revenue $ 421,624 387,299 808,923 388,923 420,000 150,000 . Portion recorded as deferred revenue $ 270,000 6. Land, buildings and equipment Changes in land, buildings and equipment were as follows: , ,. July 1, 1999 Additions Land and improvements $ 326,110 $ $ Buildings and systems 13,374,120 62,087 Equipment 3,461,787 422,629 ,. General fixed assets $ 17,162,017 $ 484 , 716 $ Food service equipment $ 371. 093 $ 14,299 $ Disposals June 30, 2000 (135,012 ) $ 326,110 13,436,207 3,749,404 1135,012) $ 17,511.721 o $ 385,392 7. Bonds and notes payable .. Changes in bonds and notes payable were as follows: Scheduled End of Year Description July 1, 1999 Issuances Redemptions June 30, 2000 Interest Rates Fixed rates .. 1997 Series $ 4,385,000 $ $ (350,000) $ 4,035,000 5.075% 1998 Series 9,995,000 (360,000 ) 9,635,000 3.800% to 4.650% Capital lease for computers 184,380 184,380 7.180% Variable rates (Ermnaus General . Authority) 1999 Series 5,000,000 (35,000) 4,965,000 5.300% 1989 F-14 Subseries 10,000,000 10,000,000 5.450% 1989 H-13 Subseries 5,000,000 5,000,000 5.450% It $ 34,380,000 $ 184. 380 $ 1745,000) $ 33,819,380 - 14 - '. i",,~ '1 "I" ',1 - --~ -"-, . I) . BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2000 7. Bonds and notes payable (Cont'd.) . Year Ending June 30 :. I 2001 2002 2003 2004 2005 2006 - 2010 2011 - 2015 2016 - 2018 . . . <8 I. ,. . Scheduled debt- service requirements are as follows: Fixed Rates Variable Rates Principal Interest Principal Total Interest $ 816,516 852,195 835,669 840,000 880,000 4,465,000 3,015,000 2,150,000 $ 627,960 589,508 548,946 510,798 472,683 1,721,176 896,924 198,266 $ 15,185,000 195,000 205,000 210,000 220,000 1,260,000 1,575,000 1,115,000 $ $ 17,255,955 1,890,043 1,832,620 1,792,938 1,793,693 8,365,461 6,039,714 3,583,311 626,479 253,340 243,005 232,140 221,010 919,285 552,790 120,045 $ 13,854,380 $ 5.566.261 $ 19,965,000 $ 42.553,735 $ 3.168,094 During the year ended June 30, 2000 the District entered into for computers with a total cost of $ 274,580. After the $ 90,200, the remaining amount was financed over three years. a capital lease downpayment of The 1999 Series pays interest at a variable rate of .55% above the "weekly rate", not to exceed 25.00%. The 1989 Subseries pays interest at a variable rate of .55% above the "weekly rate", not to exceed 15,00%, These ,obligations are subject to mandatory repayment dates of November 1, 2000 ($ 10,000,000) and February 1, 2001 ($ 5,000,000). The District was required to obtain irrevocable letters of credi t from KBC Bank N, V. , These letters of credit are to provide funds for the repayment of the 1989 Subseries bonds, if other financing has not been obtained. The letters of credit, if drawn, pay interest at a variable rate not to exceed 20.00%. As of the date of this report, the District had not made any decisions regarding the reissuing and/or retirement of these obligations. Interest payments on the variable rate obligations were paid from the Capital Projects Fund and totaled $ 894,328 during the year ended June 30, 2000, The bonds and notes payable contain options which would allow the District to call any or all remaining bonds and notes as follows: Description Callable on or After 1997 Series 1998 Series 1999 Series 1989 Subseries Not callable October 1, 2003 Upon 45 days notice Requires issuer approval - 15 - I" -~-'~~c-_"1'I"'_',,~-"1 -'~_ "- ,.,m t" ., -" ., ~, "' '. . ~- , ~, ~" .- ill " BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2000 8. Compensated absences Changes in compensated absences were as follows: . July 1, 1999 Net Chanqe June 30, 2000 General Long-Term Debt Teachers $ 484,183 Custodians 57,485 Secretaries 69,219 . Aides 15,555 Administrators 66,608 $ 693,050 Food Service Fund $ 78,840 '. $ 10,443 (9,204) 4,252 862 13,322 $ 494,626 48,281 73,471 16,417 79,930 $ 19,675 $ 712,725 $ (4,400) $ 74,440 . Payments for compensated absences recorded in General Long-Term Debt are made through General Fund expenditures in the year the absence is taken or the employee retires. At retirement or death, while in School District service, employees (with at least 10 years service in the School District) or their beneficiaries shall choose one of the following options (subject to a maximum of $ 12,000 for administrators and $ 6,500 for all other employees): 1. Accumulated unused sick leave days times $ 50 per day i " 2. Number of full years of service in the District times $ 150 per year 9, Pension plan :I The District contributes to the Public School Employees' Retirement System (the System), a governmental cost sharing multiple-employer defined benefit plan. The plan is under the authority of The Public School Employees' Retirement Code (the Code), as amended. The plan provides retirement and disability, legislatively mandated ad hoc cost-of-living adjustments, and healthcare insurance premium assistance to qualifying annuitants. The System issues a comprehensi ve 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 The Public School Employees' Retirement System, PO Box 125, Harrisburg, PA 17108-0125. " I. i i i ! 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 system prior to July 22, 1983, and 6,25 percent if they joined on or after that date. - 16 - " ': -~ - -,-~- ',"'~ I~' -, ~,I--" ~- "--',~ .,-,..,~~. , ',,'- " _<C' . .~ il . BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2000 9. Pension plan (Cont'd.) . Contributions required of employers are based upon an actuarial valuation. For the fiscal year ended June 30, 2000 the employer contribution rate was 4.61 percent of covered payroll, composed of 4.36 percent for pension benefits and .25 percent for healthcare insurance premium assistance. The District's contributions to PSERS for the years ending June 30, 2000, 1999 and 1998 were $ 555,774, $ 703,008 and $ 995,585, respectively. Those amounts are equal to the required contribution for each year. . 10, Postemployment benefits other than pension benefits . Under the negotiations agreement with Big Spring Education Association, the District shall provide for continuance of health care insurance after retirement until age 65. This health care insurance shall be at the retiree's expense, except that employees who retire after thirty or more years with the District, shall have up to five years of health care insurance benefits provided on the basis of the District paying 50% of the cost and the retiree paying 50% of the cost. The District finances this benefit on a pay-as-you-go basis. For the year ended June 30, 2000 the District incurred a total cost of $ 39,215 to provide this benefit to 19 participants. . 11. Risk management It The District is exposed to various risks of loss related to torts; theft of, damage tOI 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. :8 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. ,...~ For workers' compensation insurance, approximately 80 Districts participate in a public entity risk sharing pool (School Districts Insurance Consortium) for processing claims and obtaining reinsurance through commercial insurance carriers. Under this plan, the District's annual cost should not exceed standard commercial insurance rates. .- - 17 - . ~ , -'"''1'' .'C, 'I I, """ ',' "~ - . ,,~,," -,.,". - ,,~ ,. . i . . . . I '. , , ~i 'i~ '. " , j ~ 1 "?'l'-r BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2000 11. Risk management (Cont'd.) The District's health insurance plan allows each participant to choose one of the three coverage options available through South Central Trust, South Central Trust is not a risk sharing pool, The Trust was established for processing claims and obtaining reinsurance through commercial insurance carriers. The Trust has reinsurance for claims in excess of $ 75,000 specific (per person) and 125% aggregate (estimated District annual cost), A summary of District transactions with the Trust is as follows: District balance, July 1, 1999 $ 562,535 $ 1,419,572 4,155 35,551 1,459,278 1,014,628 93,434 65,083 250,000 1,423,145 $ 598,668 District payments to the Trust Rebate income Interest income Total receipts Claims paid by the Trust Stop loss premiums (reinsurance) Administrative and other fees Trust rebate to the District Total payments District balance, June 30, 2000 District management considers the balance to be adequate for unpaid claims. Therefore, no amounts other than the $ 250,000 rebate are presented in these financial statements as due to or due from the District as of June 30, 2000. 12. Commitments and contingencies The District's contract with its teaching staff is scheduled to expire in June 200L 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. In the normal course of preparing for the subsequent school has awarded bids for various supplies, fuel contracts, commitments in excess of routine requirements ha~e been made year, the District etc. No major by the District. The District is also audited by the State's Department of the Auditor General. Findings, if any, from these audits could result in the repayment of funds, or the receipt of additional funds. In late 1999, the District adopted the concept of a new High School to be constructed on a tract of land which adj oins land currently owned by the District. The Project is currently scheduled to go out for bid in December 2000. Preliminary cost estimates for this project are $ 30,500,000. - 18 - ""'I". ,. < -...<- ~, , III Ilr~ I . .. ~ . ~ .. ~ -"" ~ ~ ~ N f--' ., ::::><1:; I"') UJQ 0"" C,)"':- :.c O~i: .~ . -0 '> ~ tt::C: < O:J ~ (-)\;;; >"'7''''':-- f \.,,) "J :?fQ ~ ~ @h: I .::),,- ." r,-7 .-J . . ;:?.. wCD ~ ~ [i:::~ c:: cnCl.. r.:-: % :2 u. 0 ::-J " C) Cl U . . , . , r o. _ , ,- ,1-<"'":"~"- _ ,','" _ "',Co" " .,; -r" > ,. ". .~, - '.,~ '~--,' . .'f -t'; ~('-- 'e'" "'--',.<:-, _._;_."-'''"1!II1!Il11l) , ,- ,-,",,__~ ,""'of ,._~.I!L:c,_-_,,_,;" -." - d"~