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CAMP HILL SCHOOL DISTRICT
CAMP HILL, PENNSYLVANIA
JUNE 30, 2000
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INDEX
Page
Number
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Independent auditors' report
I
Combined balance sheet - all fund types and
account groups - June 30, 2000
2
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Combined statement of revenue, expenditures
and changes in fund balances - All Governmental
Fund Types - year ended June 30, 2000
3
Combined statement of revenue, expenditures and
changes in fund balances - budget and actual -
General Fund and Athletic Fund -
year ended June 30, 2000
4 - 5
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Combined statement of revenue, expenses and
changes in retained earnings/fund balances -
Proprietary Fund Types and Nonexpendable
Trust Funds - year ended June 30, 2000
6
It
Combined statement of cash flows - Proprietary
Fund Types and Nonexpendable Trust Funds -
year ended June 30, 2000
7
Notes to financial statements - June 30, 2000
8 - 21
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GREENAWALT & COMPANY, P.C.
JAMES E. LYONS
HOWARD R. GREENAWALT
CREEDON R. HOFFMAN
JOHN H. KLINGLER
DEBORAH J KEllY
R. A. OREENAWALT (1956-1983)
A^ A. 1lEIDINGER (IlmRIID)
C. FDWARD ROGERS, JR.
CERTIFIED PUBLIC ACCOUNTANTS
400 WCST MAIN STREET
MECHANICSBURG. PENNSYLVANIA 17055
(717) 766-4763
FAX (1171 766.2731
62 WEST POMFRET STREET
CARIJSLE. 'fA 17013
(717) 24ruJ22
FAX (717) 258-9372
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INDEPENDENT AUDITORS' REPORT
Board of School Directors
Camp Hill School District
Camp Hill, Pennsylvania
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We have audited the accompanying general purpose financial statements of
Camp Hill School District as of June 30, 2000 and for the year then ended, as
listed in the preceding index. These general purpose financial statements are
the responsibility of the District I s management. Our responsibility is to
express an opinion on these general purpose financial statements based on our
audit.
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We conducted our audit in accordance with generally accepted auditing
standards. 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 Camp Hill
School District as of June 30, 2000, the results of its operations and the
cash flows of its Proprietary Fund Types and Nonexpendable Trust Funds for the
year then ended, in conformity with generally accepted accounting principles.
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September 22, 2000
Mechanicsburg, Pennsylvania
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MEMBERS - AMERICAN lNSTITllTE OF CERTIF\ED PUBLiC ^CC()UNTA~'TS - PENNSYLVANiA lNSTITllTE Of CERTlf'1ED PUBLlC ACCOUNTANTh
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CAMP HILL SCHOOL DISTRICT
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
JUNE 30, 2000
Assets and other debits
Cash and cash equivalents
Investments
Delinquent taxes receivable (net of
allowance for uncollectibles
of $ 573,533)
Due f:tom other funds
Intergovernmental accounts receivable
State subsidies receivable
Federal subsidies receivable
Other accounts receivable
Loans receivable - related parties
Land and buildings
Furni~hing.s and equipment
Food ~ervice equipment (net of
accumulated depreciation of $ 26,450)
Amounts available in debt service funds
Amount to be provided for the retirement
of general long-term debt
Total assets and other debits
Liabilittes and other credits
Accrued payroll and benefits
Accounts payable
Defer~ed tax revenues
Due to other funds
Prepayments from persons or firms
Due to student organizations
General obligation notes payable
Accumulated compensated absences
Total liabilities
Fund equity
Invested in general fixed assets
Retained earnings
Specific fund balance reserves
Unreserved fund balances
Total fund equity
Total liabilities and
other credits
Governmental Fund
Special
General Revenue
Types
Capital
proiect
$ 462,328
1,256,547
44,706
$
$
790,797
223,247
14,563
14,760
286,114
38,779
204,300
11,601
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$ 2.512.239 $ 44,706 $ 790,797 .
$ 559,101 $ $
187,019 4,513
195.988
116 14,563 .
18,503
960,727
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19,076
-
771,721
1,551,512 44,706 .
1,551.512 44,706 771,721
$ 2.512,239 $ 44.706 $ 790,797
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The accompanying notes are an integral part of these financial statements.
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.. Proprietary
Fund Types Fiduciary Fund Types Account Groups
Food Agency General General
Service Trust (Acti vi ties) Fixed Assets Lonq-Term Debt
$ 25,872 $ 42,022 $ 83,325 $ $
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. CAMP HILL SCHOOL DISTRICT
COMBINED STATEMENT OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 2000
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Special Capital Debt
General Revenue Prolects Service
Revenue
Local sources $ 8,218,369 $ 19,584 $ 44,228 $
. State sources 1,560,724
Federal sources 79,449
Total revenue 9,858,542 19,584 44,228 0
Expenditures
. Instruction 6,307,053
Support services 2,726,307
Operation of noninstructiona1
services 247,408 90,922
Facilities acquisition,
construction and
. improvements 33,742 101,148
Debt service
Principal payments 335,000 370
Interest 216,506
Tot al expenditures 9,866,016 90,922 101,148 370
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Excess of revenues over
(under) expenditures (7,474) (71,338 ) (56,920) (370)
Other financing sources (uses)
Interfund transfers in 96,500
. Refunds of prior years'
expenditures 133,370
Interfund transfers out (140,150)
Total other financing
sources (uses) (6,780) 96,500 0 0
. and
Excess of revenues other
financing sources over
(under) expenditures and
other financing uses (14,254) 25,162 (56,920) (370)
. Fund balances, July 1, 1999 1,565,766 19,544 828,641 370
Fund balances, June 30, 2000 $ 1. 551. 512 $ 44. 706 $ 771. 721 $ 0
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The accompanying notes are an integral part of these financial statements.
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CAMP HILL SCHOOL DISTRICT
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND AND ATHLETIC FUND
YEAR ENDED JUNE 30, 2000
Budqet
Revenue
Local sources
State sources
Federal sources
$ 8,169,780
1,268,627
79,300
Total revenue
9,517,707
Expenditures
Instruction
Regular programs
Special programs
Vocational education programs
Other instructional programs
Community College education
programs
4,728,264
1,065,212
48,408
237,744
93,000
Total instruction
6,172,628
Support services
Pupil personnel
Instructional staff
Administration
Pupil health
Business
Operation and maintenance of
plant services
Student transportation services
Central
Other
510,151
302,513
768,570
126,563
183,707
827,473
52,375
8,559
15,993
Total support services
2,795,904
(Continued)
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General Fund
Actual
$ 8,218,369
1,560,724
79,449
9,858,542
4,695,244
1,049,957
48,408
436,864
76,580
6,307,053
493,718
284,754
760,111
126,191
179,891
814,053
45,668
6,467
15,454
2,726,307
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Variance
Favorable
(Unfavorable)
$
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48,589
292,097
149
340,835
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33,020
15,255
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(199,120)
.
16,420
(134,425)
16,433
17,759
8,459
372
3,816
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13,420
6,707
2,092
539
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69,597
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. Athletic Fund
Variance
Favorable
Budqet Actual (Unfavorable)
. $ 12,000 $ 19,408 $. 7,408
12,000
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19,408
7,408
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CAMP HILL SCHOOL DISTRICT
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND AND ATHLETIC FUND (Cont'd.)
YEAR ENDED JUNE 30, 2000
General Fund
Variance
Favorable
Budqet Actual (Unfavorable) .
Expenditures (Cont'd.)
Operation of noninstructional
services
St:udent activities $ 244,106 $ 233,177 $ 10,929 .
Community services 19,500 14,231 5,269
Total operation of non-
instructional services 263,606 247,408 16,198
Facilities acquisition, construction ..
and improvement services 16,662 33,742 (17,080)
Debt service 551,510 551,506 4
Total expenditures 9,800,310 9,866,016 (65,706)
Excess of revenue (under) .
over
expenditures (282,603) (7,474) 275,129
Other financing sources (uses)
Interfund transfers in
Refunds of prior years I .i
expenditures 132,214 133,370 1,156 I
InteJ:fund transfers out (148,709) (140,150) 8,559
Total other financing
sources (uses) (16,495) (6,780) 9,715
Excess of revenues and other financing .
sourCHs over (under) expenditures
and other financing uses (299,098) (14,254) 284,844
Fund balances, July 1, 1999 1,489,271 1,565,766 76,495
Fund balances, June 30, 2000 $ 1.190.173 $ 1. 551. 512 $ 361. 339 .
The accOmpanying notes are an integral part of these financial statements.
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Athletic Fund
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Budget
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$
113,157
101,157
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Actual
$
90,603 $
95,000
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23,805
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11,578
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35.383 $
$
Variance
Favorable
(Unfavorable)
22,554
(6,157)
23,805
11,578
35.383
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CAMP HILL SCHOOL DISTRICT
COMBINED STATEMENT OF REVENUE, EXPENSES AND
CHANGES IN RETAINED EARNINGS/FUND BALANCES
PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 2000
. Proprietary Fiduciary
Fund Type Fund Type
Food Nonexpendable
Service Trust Fund
Operating revenue
Loca.l sources - food service revenue $ 119,705 $
. Loca.l sources - donations 1,025
Total operating revenue 119,705 1,025
Operating expenses
Food and milk 67,541
. Sala.ries and wages 63,540
Employee benefits 13,781
Materials and supplies 1,696
Depreciation 179
Scholarships 1,230
. Total operating expenses 146,737 1,230
Operating income (loss) (27,032) (205)
Nonoperating revenue (expenses)
Interest income 222 2,272
. State sources 3,375
Total nonoperating revenue (expenses) 3,597 2,272
Income (loss) before transfers (23,435) 2,067
. Fund transfers
General Fund contributed services 43,650
Net income (loss) 20,215 2,067
Retained earnings/fund balances, July 1, 1999 7,666 39,955
. Retained earnings/fund balances, June 30, 2000 $ 27,881 $ 42,022
The accompanying notes are an integral part of these financial statements.
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CAMP HILL SCHOOL DISTRICT
COMBINED STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 2000
. Proprietary Fiduciary
Fund Type Fund Type
Food Nonexpendable
Service Trust Funds
. Cash flows from operating activities
Operating income (loss) $ (27,032) $ (205)
Adjustments to reconcile operating loss to
net cash provided by (used for) operating activities
Depreciation 179
General Fund contributed services 43,650
. Decrease (increase) in
due from other funds (116)
Accounts receivable 311
Increase (decrease) in
due to other funds (1,766)
. Net cash provided by (used for)
operating activities 15,226 (205)
Cash flows from noncapital financing activities
State subsidies 3,375
. Cash flows used for capital and
related financing activities
Payments for equipment (836)
Cash flows from investing activities
Earnings on investments 222 2,272
. Net increase (decrease) in cash
and cash equivalents 17,987 2,067
Cash and cash equivalents, July 1, 1999 7,885 39,955
. Cash and cash equivalents, June 30, 2000 $ 25.872 $ 42.022
Supplemental disclosure of nonfinancial activities
General Fund contributed services $ 43.650 $ 0
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The accompanying notes are an integral part of these financial statements.
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
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1. Reporting entity
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Camp Hill 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 Borough of Camp Hill. 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.
.
Based on the foregoing criteria, the District has not included any component
units in the reporting entity since no component units fully meet the criteria
for inclusion.
.
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 of these entities serves many school
districts and are therefore not included as part of Camp Hill School District's
reporting entity. These other entities are as follows:
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Capital Area Intermediate Unit
services and programs.
provides special education
Cumberland-Perry Area Vocational-Technical School provides
vocational and technical education services and programs.
.
Harrisburg Area Community College
education services and programs.
provides community college
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2000
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2. Summary of significant accounting policies
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The accounting records of Camp Hill 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 accounting policies follows.
Fund accounting
.
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 the account groups
utilized by Camp Hill School District are as follows:
.
Governmental Fund Types
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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, residence,
occupation and earned income taxes, and State and Federal
distributions. Many of the more important activities of the School
District, including instruction, administration of the School
District and certain noninstructional services are accounted for in
this fund.
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Special Revenue Fund - Special Revenue Funds are used to account
for the proceeds of specific revenues that are restricted to
expenditures for specified purposes.
.
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2000
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2. Summary of significant accounting policies (Cont'd.)
Fund accounting (Cont'd.)
Governmental Fund Types (Cont'd.)
.
Capital Projects Fund - Capital Projects
for financial resources to be used
construction of capital facilities.
Funds are used to account
for the acquisition or
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.
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Proprietary Fund Types
Proprietary Funds account for operations that are financed and operated in a
manner similar to private business enterprises:
.
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
enti ties. Nonexpendable Trusts are accounted for in essentially the same
manner as Proprietary Funds. Agency Funds are custodial in nature and do not
involve measurement of the results of operations.
.
Trust Accounts - Account for contributions to and interest earnings
on scholarship funds donated to the District, and for payments of
scholarship funds to selected students.
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Acti vi ty 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.
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2000
2. Summary of significant accounting policies (Cont'd.)
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Fund accounting (Cont'd.)
Account Groups
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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 the District I s investment in
land, buildings and equipment.
.
General Long-Term Debt - accounts for notes, bonds, capital leases
and compensated absences payable in future years.
Basis of accounting
The accounting and financial reporting treatment applied by
is based on their measurement focus, which determines
expenditures are recognized.
the different funds
when revenues and
.
Governmental Fund Types
These funds are accounted for using a "current financial resources"
measurement focus (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.
Fiduciary Fund Types
.
Trust and Agency Funds are
liabilities) and do not
operations. These funds are
manner as Governmental Funds.
custodial in nature (assets equal
invol ve measurement of results of
accounted for in essentially the same
.
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2000
.
2. Summary of significant accounting policies (Cont'd.)
Basis of accounting (Cont'd.)
Proprietary Fund Types
.
The Food Service Fund uses the 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.
.
Food service equipment is capitalized, with depreciation (computed
on the straight-line method using estimated useful lives of 5 to 12
years) recorded as an operating expense.
Account Groups
.
Land, buildings, furnishings and equipment are recorded at cost, or
at estimated historical cost for those items for which the original
cost is unknown. Depreciation is not computed on these assets.
.
Long-term debt is offset by an amount to be provided by future
taxation or other revenue sources. General obligation notes
payable in future years are recorded as District debt. Interest on
these notes is recognized when such interest is due.
.
Compensated absences (those for which employees receive pay) are
recorded using the termination payment method. A liability is
recorded through the use of 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 has no recorded liability in advance
of the sabbatical.
.
Cash and cash equivalents
For purposes of the Food Service Fund and Nonexpendab1e 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) as necessary. Unused appropriations expire at the end
of each year. Because the District did not adopt a budget for all Special
Revenue Funds, the actual-to-budget comparison for Special Revenue Funds
contains information for the Athletic Fund only.
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2000
2. Summary of significant accounting policies (Cont'd.)
.
Revenue - Local sources
.
Real estate, per capita, residence and occupation taxes are levied as of July 1
with a legal, enforceable claim against the taxpayer and/or property. These
taxes are recognizable as current revenue when received by the District during
the fiscal year and also estimated to be received by the District within sixty
days after the close of the fiscal year. Amounts estimated to be received
between sixty days and one year after the end of the fiscal year are recorded
as deferred revenue. An allowance for uncollectibles is recorded for taxes
estimated not to be collectible wi thin one year after the end of the fiscal
year.
.
Other tax revenues, including taxpayer-assessed revenues such as earned income
taxes, are recognized as revenue when received during the fiscal year or soon
enough thereafter to be susceptible to accrual.
Revenue - State sources
.
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. Program revenue received in advance of the
expenditure of program funds are deferred until such expenditures are incurred.
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.
Inter-fund transactions
.
Expenditures by the General Fund for the benefit of other funds are
in the respective statements of revenue and expenditures/expenses,
management's 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
.
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2000
.
3. Cash and investments
.
The District's cash and cash equivalents consist of cash balances deposited in
financial institutions. In addition, the District has pooled liquid investment
accounts which are invested in qualified securities through the Pennsylvania
Treasury INVEST Program.
The cash and cash equivalents at June 30, 2000 are categorized as follows:
Carrying Bank
Value Balance
.
Change funds $ 445 $
Insured (FDIC) 109,323 109,323
Collateral held in the District's name
Collateral not held in the District's name 506,234 540,569
Pooled liquid accounts 42,251 42,030
.
Total $ 658.253 $ 691. 922
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. This
includes public funds which are secured by pooled collateral as permitted
by Act 72.
The investments, whose market value approximates cost due to the short term
nature of the investments, are categorized as follows:
.
Insured
Collateral held in the District's name
Collateral not held in the District's name
$
o
.
Pooled investments (Pennsylvania Treasurer's
INVEST program for local governments)
2,047,344
$ 2,047,344
.
The types of authorized investments are
Investment policies followed during the year
categorization of investments shown above.
limited
did not
by State regulations.
significantly alter the
- 14 -
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd)
JUNE 30, 2000
4. Delinquent taxes receivable
.
As explained in Note 2, taxes are recorded as revenue only when received, or,
in the case of delinquent real estate taxes, available within sixty days. The
remaining balance of delinquent taxes receivable are recorded as deferred
revenue in accordance with school accounting policies. Deferred tax revenue
amounted to $ 195,988 at June 30, 2000. Delinquent taxes receivable as
reflected on the June 30, 2000 balance sheet consist of the following:
.
Total Real Estate Personal
1991-92 and prior years $ 126,442 $ $ 126,442
1992-93 46,114 46,114
1993-94 35,870 64 35,806
1994-95 53,057 53,057
1995-96 42,807 245 42,562
1996-97 75,880 7,504 68,376
1997-98 80,220 5,546 74,674
1998-99 131,204 41,739 89,465
1999-2000 205,186 65,233 139,953
796,780 120,331 676,449
Less: Allowance for
uncollectibles 573,533 2,407 571,126
Total $ 223,247 $ 117,924 $ 105,323
.
.
5. Loans receivable - related parties
.
Loans receivable from related parties at June 30, 2000 are as follows:
Former Superintendent
Camp Hill Band Boosters
$
5,000
6,601
Total
$
11, 601
.
As part of an insurance benefit, the District advanced a total of $ 25,000
toward the premiums of a life insurance policy on the former superintendent.
This noninterest bearing advance is scheduled to be repaid wi thin the next
year. The advance is collateralized by an assignment of the policy to the
District.
.
In 1996, the District purchased a truck for use by the Camp Hill Band Boosters
at a cost of $ 16,500, and agreed to advance up to $ 2,000 in additional funds
for improvements to the truck. The Band Boosters are to repay at least 15% of
the total advance annually until this interest-free loan is repaid. A
payment of $ 2,475 was received during 1999-2000.
.
- 15 -
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.
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2000
6. Land, buildings, furnishings and equipment
.
A summary of the changes in land, buildings, furnishings and equipment for the
year ended June 30, 2000 is as follows:
Beginning
of Year
Increases
Decreases
End
of Year
.
General fixed assets
Land and buildings
Furnishings and
equipment
$ 4,927,649
$
66,458
$
$ 4,994,107
4,227,273
263,730
4,491,003
Totals
$ 9,154,922
$
330,188
$
o
$ 9,485,110
.
.
Food Service Fund
fixed assets
Furnishings and
equipment
Accumulated
depreciation
$
27,295 $
836 $
$
28,131
(26,271)
(179)
(26,450)
Totals
$
1,024
$
657
$
o
$
1, 681
7. General obligation notes payable
.
A summary of changes in general obligation notes payable for the year ended
June 30, 2000 is as follows:
.
Beginning
of Year
Additions
Payments
and other
Decreases
End
of Year
General Obligation Notes
Series A of 1998,
interest rate of
4.45% $ 2,320,000 $ $ 320,000 $ 2,000,000
. Series AA of 1998,
interest rate of
4.6% 2,445,000 15,000 2,430,000
Total $ 4. 765,000 $ 0 $ 335,000 $ 4. 430 ,000
.
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2000
7. General obligation notes payable (Cont'd.)
.
Scheduled debt service payments for all general obligation debt as of June 30,
2000 are as follows:
.
Series A Series AA
Year Total Principal Interest Principal Interest
2000 - 2001 $ 560,780 $ 335,000 $ 89,000 $ 25,000 $ 111,780
2001 - 2002 554,722 345,000 74,092 25,000 110,630
2002 - 2003 558,220 365,000 58,740 25,000 109,480
2003 - 2004 560,828 375,000 42,498 35,000 108,330
2004 - 2005 562,530 395,000 25,810 35,000 106,720
2005 to 2010 2,820,933 185,000 8,233 2,285,000 342,700
$ 5,618,013 $ 2,000,000 $ 298,373 $ 2,430,000 $ 889,640
8. Operating leases
.
.
The District has entered into several operating lease agreements in which it
has agreed to lease certain small pieces of equipment for various lengths of
time. . The agreements contain various termination and "lease-up" trade-in
provisions which could allow the District to effectively change the terms of
the agreements. Total operating lease payments included in General Fund
expenditures for the year ended June 30, 2000 amounted to $ 27,991. Minimum
lease commitments for future years, assuming no voluntary' terminations, are as
follows at June 30, 2000:
.
2000-2001
2001-2002
2002-2003
2003-2004
$
20,775
8,927
5,779
1,604
.
Total
$
37,085
9. Compensated absences
.
At June 30, 2000, the General Long-Term Debt Group of Accounts includes a
liability for compensated absences of $ 243,816. Payments for compensated
absences are made through General Fund expenditures in the year the absence is
used or the employee retires. When an employee retires, the District's payout
policy with regard to each type of unused compensated absence is as follows:
Emergency and personal - no payout required.
.
- 17 -
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2000
.
9. Compensated absences (Cont'd.)
Vacation (administrative
days (not to exceed 5
separation.
personnel
days) are
only)
paid
unused
a t the
vacation
time of
.
Sickness a retiring employee receives payment for unused
accumulated sick days determined as a percent of substitute
teachers' per diem rate for professional staff and a percent
of per diem salary rate for support staff, both based on the
number of years of service to the District up to a maximum of
270 days and 55% of the per diem amount.
.
Retirement with 15 or more years of service retiring
professional employees with at least 30 years of experience
including at least 15 years of continuous full-time
employment with the District are entitled to a retirement
incentive payment of between $ 5,000 and $ 10,000 depending
on total years of experience.
.
A summary of the changes in compensated absences for the year ended June 30,
2000 is as follows:
.
Beginning Net Net End
of Year Increases Decreases of Year
Vacation $ 7,118 $ 219 $ 0 $ 7,337
Sick leave 230,336 6,143 0 236,479
$ 237,454 $ 6,362 $ 0 $ 243,816
10. 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 authority of The Public School Employees'
Retirement Code (the Code), as amended. The plan provides retirement and
disability, legislative mandated ad hoc cost-of-living adjustments, and
hea1thcare 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 The Public School Employees' Retirement
System, P.O. Box 125, Harrisburg, PA 17108-0125.
.
.
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2000
10. Pension plan (Cont'd.)
.
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.
.
Contributions required of employers are based on 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 health insurance premium assistance. The District I s
contributions to PSERS for the years ended June 30, 2000, 1999 and 1998 were
$ 277,296,$ 334,862 and $ 462,370, respectively. Those amounts are equal to
the required contribution for each year.
.
11. Postemployment benefits other than pensions
.
The District's contract with the Camp Hill Education Association and its
compensation plan for administrators provide for postemployment health and
hospitalization benefits for full-time teachers and administrators who have 25
or more years of service with the District. The benefit is paid by the
District toward the retirees' health insurance premium ranging from $ 750 to
$ 1,000 per year per retiree for a period of 2 to 7 years. Both the
contribution amount and the number of years of payment depend on the retirees'
years of service. The benefit is paid only until the year in which the retiree
is eligible for full social security benefits.
.
The District finances this benefit on a pay-as-you-go basis. For the year
ended June 30, 2000, there were eight retirees receiving this benefit at a
total cost to the District of $ 7,620.
.
12. Inter-fund transfers
General Fund expenditures include inter-fund transfers of $ 140,150 summarized
as follows:
.
Athletic Fund
Band Uniform Fund
Food Service (non-cash transfers)
$
95,000
1,500
43,650
Total
$
140.150
.
Addi tionally,
reimbursement
the Capital Projects Fund owes
of expenses paid on its behalf.
the General
Fund $
14,563
for
- 19 -
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2000
13. 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
covera.ge covering each of those risks of loss. Management believes such
covera.ge 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 purposes
be covered
unemployment
of unemployment compensation laws, the District has elected not to
by the Pennsylvania Unemployment Compensation Fund. Any
claims are paid by the District on a quarterly basis as incurred.
.
The District is a member of a group of School Districts who have joined
together to self-insure their workers' compensation exposure. The District
pays annual contributions to the group based on a formula utilizing the
District I s own claim experience and annual payroll. Claims in excess of the
District I s retention experience are paid by a Central Fund within the group
and, if necessary, by an insurance company carrying excess liability coverage.
14. Commitments and contingencies
.
The collective bargaining agreement between the District and the teaching staff
is effective for the period July 1, 2000 through June 30, 2004. The prior
agreement expired June 30, 2000.
.
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.
.
The District is contingently liable for the repayment of the General
Obligation Bonds, Series of 1996 which were refunded by the deposit of
funds into an irrevocable escrow account in amounts sufficient to retire the
bonds and interest when due. Because of the refunding, these bonds are no
longer included as general obligation debt on the District's balance sheet.
At June 30, 2000, the amount of the Series of 1996 bonds outstanding
totaled $ 2,330,000.
.
In the normal course of preparing for the subsequent school year, the District
has awarded bids for various supplies, fuel contracts,~etc.
\
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.
- 20 -
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CAMP HILL SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2000
15. Subsequent event
.
On September 18, 2000 the School District approved the sale of general obligation
bonds, Series of 2000 in the aggregate amount of $ 7,065,000, maturing through
November 15, 2018 with interest payable at rates ranging from 4.30% to 5.35%. The
bonds will be dated October 15, 2000 and are expected to be delivered on or about
October 19, 2000.
.
The proceeds from the sale of the bonds are to be used for
al terations and improvements to the high school/middle
school facilities of the District and to pay all costs and
issuance of the bonds.
renovations, additions,
school and elementary
expenses related to the
.
.
.
.
.
.
- 21 -
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