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HomeMy WebLinkAbout00-08493 . " . . . . . . . . . (}- tf.eo. (JreClftlwlllt k eOff!pllfff/, P. e. rff,~",*,;/!d .~&,;., .r:rt:./LXLn&zna . " ," . . . . . . . . . . . j, - "~~.c ' CAMP HILL SCHOOL DISTRICT CAMP HILL, PENNSYLVANIA JUNE 30, 2000 ": ~" ", '. " -, . . . INDEX Page Number . Independent auditors' report I Combined balance sheet - all fund types and account groups - June 30, 2000 2 . 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 . 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 . . . . ---"0 1_' iJ!, ^ -'.'~' , -~,--" '-.~ ;,<<>- . 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 . . INDEPENDENT AUDITORS' REPORT Board of School Directors Camp Hill School District Camp Hill, Pennsylvania . . 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. . 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. . ~~'1:~~(:C. . September 22, 2000 Mechanicsburg, Pennsylvania . - 1 - . MEMBERS - AMERICAN lNSTITllTE OF CERTIF\ED PUBLiC ^CC()UNTA~'TS - PENNSYLVANiA lNSTITllTE Of CERTlf'1ED PUBLlC ACCOUNTANTh ~O\i~IIIHrI;~~!lIil_!rtMi~"i!;j,jji!i;i~~!_~~!;{lh\8~:I~'i*j~..],}j'!!'F'-&f!;~f#,~.iii!l!_~\M 1~1i' ""'~.I . <k_ T:=~~~ illi.1I~ ,= ~ -=~...., l!i '" iJ n -'1'1 I ~ I I -I I I - 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 . . $ 2.512.239 $ 44,706 $ 790,797 . $ 559,101 $ $ 187,019 4,513 195.988 116 14,563 . 18,503 960,727 o 19,076 - 771,721 1,551,512 44,706 . 1,551.512 44,706 771,721 $ 2.512,239 $ 44.706 $ 790,797 . The accompanying notes are an integral part of these financial statements. .-, ~-., - 2 - - ,.. ~ ,-"~ ^^ " ~ " cd' ,- ; ,-,-,'-,,' , -"'"'-'0,," ,,- -"=" '~,,~-,<,: ',",', " , , ' ,,;--\4. "1 . .. 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 $ $ . . . .,,,, '." l <,,~ <'-"- -',' -, '~ ~l<"';',,,.i"";'",-,'i,i y;, _f-. "ill . CAMP HILL SCHOOL DISTRICT COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2000 . 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 . 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 . The accompanying notes are an integral part of these financial statements. - 3 - . ~..iG21~dI<&1i.1'a'~~@littl~"~~\iJi"tl,~~~ci~~~~"iiIiJ"&~'~"'''''''''1i.-:J~- ~;~ -Iil"~'"'" ~ .= ~- 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) - 4 - -< .-~, 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 ., !j :1 'I e;.' J ~ i e" " I . Variance Favorable (Unfavorable) $ . 48,589 292,097 149 340,835 . 33,020 15,255 o (199,120) . 16,420 (134,425) 16,433 17,759 8,459 372 3,816 e 13,420 6,707 2,092 539 . 69,597 . . . . . . Athletic Fund Variance Favorable Budqet Actual (Unfavorable) . $ 12,000 $ 19,408 $. 7,408 12,000 . . . . . . 19,408 7,408 o o o o ."/ >.'. -- I -'""-'-~~' <, , ~"-". "., .- ,1;__, ";o.";,,;.,.:...g.,,,_ -. -""~,: o o ~i!i!l1.tiiM,j.;"!Il*fWif!li!'lti~~!I!iIiIii~~~~-\,~ttt-4il~~~\tith.l!1;o<r:Jj$oiIl~!t>>~" --.~" .- ~~<..~ .< ="-""_OM_J - .'> - 'if"""" ~k'- '. -'" ,-, J 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. - 5 - . . " ,^-..- = ~, . . Athletic Fund -,- . Budget . $ 113,157 101,157 . . $ . . Actual $ 90,603 $ 95,000 o 23,805 o 11,578 o 35.383 $ $ Variance Favorable (Unfavorable) 22,554 (6,157) 23,805 11,578 35.383 " -y.-.- ,I " ,'.-~ ,-, - -~-'.-' -,,~-= ',; ,'..',- --".j- - " ',' - -, ~~'~ .O~ -~ '_..J c ,'1.:0 " -":0;-0.'-';' '" " '" ;-" - ~ , -, -,(; ~.:.::;j . . 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. . - 6 - . -,'I -'-"'" I:, ;_"'_"-."'0'-, ----"';,-l'j'.",_i -'__,"._ ";;;',iC;i . . 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 . The accompanying notes are an integral part of these financial statements. - 7 - . - -'-. ,"",- ~-.' . ^_ J.. _ '.'~ '-,,"- -i,.;"_~"-~~",,,,,,-_; .k~~--' -"~--- . . CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2000 . 1. Reporting entity . 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: . 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 . - 8 - . ~.- I, ~ , h ' ~' .'" ;". ,(,- ~ .'~;,-,: '_"I,' '.'-" '-"L_"\ . . CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2000 . 2. Summary of significant accounting policies . 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 . 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. . Special Revenue Fund - Special Revenue Funds are used to account for the proceeds of specific revenues that are restricted to expenditures for specified purposes. . - 9 - . - J ~ , . - -.-,-1 , , ...-~-;-.' .; ,'-, roo, , ~ Je- '.--;,;:,: . . CAMP HILL 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 (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. . 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. . 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. . - 10 - . ~"' -". k, -,1- ~-- " "'~- ;. -~"',-- ,1-,::,,".-:' 't'- . . CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2000 2. Summary of significant accounting policies (Cont'd.) . Fund accounting (Cont'd.) 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 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 . - 11 - . ~ , I " HJ, , _i ., " :-'1 . 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. - 12 - . L .- I, . -q 'i,~ , - ,.--", ,-', -;j ,- " -u.,'L,;'; -.,: . . 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 . - 13 - . -", . _ ~L.' . '~";,,,,,,"" '-'S", . 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 - . I; _M-'- "-. -I' . . 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 - . ;lJ ,,101 , (,. . ,"-v', .-', ... \1: , . . 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 . - 16 - . ~~< -<~ ,-:-I_~_ ~v-;""' ,- ,.-' -_ >-1-,-, f'-" "". ;"",! . . 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 - . "'-~:: "~ -'. . "',. "-0\ ." ~. , ,0 -, '~ ' ''''''.1 . . 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. . . - 18 - . .<- " (, ",,'/0_ ~ ,.'" .'.1_ '. " __ ' : '{c '0'. ,~" -",. ,.;;":,, '<', ~ . . 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 - . ~~ " -.1 " ." - - -I.-~,' , '."", ,- " ",-,- ~.,"'" ~, "'''''-,: ,'---[. <~ .,-c-.,""",___.".__ _, " " ",' "ii~ . . 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 - . - ~.'__ ,Ie,~'" '"=c', -.... ' _ J "'<. .<~~:, '''--t''1 . . 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 - . -:" ,"',."". " "C;";;',"""4"'..,. -Ti..,^,;,,,~,",,-__ ._ 1.11 "',"',,,, ""'. .- ,';-,"-.~-id",,'". ~b _ >'i;j~ ;,'-- -'-'-("::-,;:-..;,,,,1-; o^o,-L-; .. .1... '";'~I~,"~;:ii:'',''' C, . -- -- - ',', -'- -~-' ';:k-~~-f_2~,:,:\~;;.,,",~~' ___ ::-.';';-;.,i, ,,,~,'.",~,'-. II.. 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