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Home My WebLink About00-08771 ._"~. ~.,&.., 1..',.,""'-" ,."' u<c ,,,.,,_~:',,.~~:j:;,",_~',:'--_"~~, -,: '-,'--- ','- ',--' . '"" :-c'__.~_ "~',,;,-,_ '''~'- <,- :,--;,-_,i'-bJ-;:;;.;i""jJ,,~__.:~_,; __".;_;',;<,:",~": SHIPPENSBURG AREA SCHOOL DISTRICT FINANCIAL REPORT JUNE 30, 2000 ~o IBsRI BOYER & RITIER ,,"-, , CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS CAMP HILL . CARLISLE . LEWISTOWN CHAMBERSBURG . STATE COLLEGE ,""....... L " 1. ,. " ~ - , -^--" . CONTENTS . INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION ] - 2 . FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups 3-6 . Combined Statement of Revenue, Expenditures and Changes in Fund Balances - All Governmental Fund Types 7-8 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 9 . Statement of Revenue, Expenses and Changes in Retained Earnings (Deficit)/Fund Balance - Proprietary Fund Type and Non-Expendable Trust Fund 10 . Statement of Cash Flows - Proprietary Fund Type and Non-Expendable Trust Fund 11-]2 Notes to Financial Statements 13 - 26 SUPPLEMENTARY INFORMATION . General Fund Schedule of Revenue 27 - 28 Schedule of Expenditures 29 - 34 . . . . .....wo" ,.'. "w" ,I . CONTENTS (Continued) . SUPPLEMENTARY INFORMATION (Continued) . Special Revenue Funds Combining Balance Sheet Combining Statement of Revenue, Expenditures and Changes in Fund Balances . Combining Statement of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual . Cafeteria Fund Schedule of Revenue Non-Expendable Trust Fund Combining Balance Sheet . Combining Statement of Revenue, Expenses and Changes in Fund Balance . Agency Funds Combining Balance Sheet Student Activities Funds Combining Balance Sheet . Statement of Cash Receipts and Cash Disbursements - Earned Income Tax Fund . Independent Auditor's Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards , -'-.-1 '., .-~-.~..; 35 36 37 - 38 39 40 - 41 42 - 43 44 45 46 47 - 48 ,~ !', ,L '",,__,_ - . CONTENTS (Continued) . , . SUPPLEMENTARY INFORMA nON (Continued) . Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-B3 Schedule of Findings and Questioned Costs . Schedule of Expenditures of Federal Awards 49 - 50 51 - 52 53 - 56 Notes to Schedule of Expenditures of Federal Awards 57 Summary Schedule of Prior Year's Audit Findings 58 . . . . ,', ,,,:, ~"k', '-";"[ .~ ; ,I;, _le' ,oj, ~ ',. _0' .'-j' ,. "-:_./ ,,,',... . IBRIBOYER & RITIER CERTIFIED PUBLIC ACCOUNTA"TS AND CONSULTANTS . INDEPENDENT AUDITOR'S REPORT . Board of School Directors Shippensburg Area School District Shippensburg, Pennsylvania . We have audited the accompanying general purpose financial statements of the Shippensburg Area School District, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the School 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 the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. . . As explained in Note I to the general purpose financial statements, the School District has recorded General Fixed Assets at values as determined by an American Appraisal Associates report. Under generally accepted accounting principles, General Fixed Assets should be recorded at cost or estimated historical cost. . In our opinion, except for the departure from generally accepted accounting principles described in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Shippensburg Area School District, as of June 30, 2000, and the results of its operations and the cash flows of its proprietary fund type and non-expendable trust fund for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated August 4, 2000, on our consideration of the Shippensburg Area School District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. . . . CARLISLE CHAMBERS BURG LEWlSTOWN STATE COLLEGE CAMP HILL .\n Independently Owned Member of fhe Mcc.ladrey Netvvork Worhlwide Service Thrnllgh RSM Internutional ;. ~. , 1liiiI11bJiJ' .'"~ ,,', 1, '-"..,-', '" ~'~~d_,~ . . Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Shippensburg Area School District taken as a whole. The accompanying Schedule of Expenditures of Federal Awards, as required by the U. S. Office of Management and Budget Circular A-B3, Audits of States, Local Governments, and Non-Profit Organizations, and the schedules on pages 27 through 46 are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. . . ~ ~.d/w . Chambersburg, Pennsylvania August 4, 2000 . . 2 ~_~illhi'OiiP_"',j'ir.ij"M;;l'<I,i"""~"~&te,,:t"""""'~'~)'illsg;}~,:,'~J;:';"';(H\\1&;:;1C'.tM~!lIiJllW1l,:%!l,~~.1i "r-"l!Ii!;1lii~~' -~ ',-'- ei SHiPF'ENSBURG AREA SCHOOL DISTRICT .'1 COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS , [, June 30, 2000 i , I l' ei Governmental Fund Types , " Special Revenue Capital Project i Capital l ASSETS General Athletic Reserve Construction , "CaSh $ 98,108 $ 33,796 $ 1,204 $ I .1 Investments 3,174,952 564,177 Receivables Taxes - net 598,862 Due from other funds 63,826 262,999 Fede:ral subsidies 246,613 State subsidies 91,464 . Oth<:r 69,601 Inventories Land and site improvements Buildings and improvements Fumirure and equipment - net of . accumulated depreciation in Enterprise Fund Amount to be provided for retirement of general long-term debt Amount to be provided for , compensated absences .f Total assets $ 4,343,426 $ 33,796 $ 264,203 $ 564,177 See Notes to Financial Statements. . . . 3 . ~ ~- - ",'.' ......~--" . . . Fiduciary Fuud Types Proprietary Trust and Agency Account Groups Fund Type Non- General General Totals Enterprise Expendable Fixed Long-Term (Memorandum Cafeteria Trusts Agency Assets Debt Only) It $ 2,232 $ 1,627 $ 727,233 $ $ $ 864,200 59,753 10,000 3,808,882 598,862 326,825 246,613 . 91,464 5 69,606 37,217 37,217 5f,396 51,396 36,693,173 36,693,173 '. 43,825 8,336,950 8,380,775 15,960,000 15,960,000 ,. 662,302 662,302 $ 83,274 $ 61,380 $ 737,238 $ 45,081,519 $ 16,622,302 $ 67,791,315 . '8 . . 4 ,-" ,I, ,'';''",,' /~-..- f1iltJiliitJillg~i~Mlmj_dM!I!i. _~~~~~i\iim,g#~iIiii!1M~'- fj,~WJ-,- ~~;bli"till..llil~~~ ~ - SIUPF'ENSBURG AREA SCHOOL DISTRICT . COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS June 30, 2000 Governmental Fund Types Special Revenue Capital Project III Capital , I LIABILITIES AND FUND EQUITY General Athletic Reserve Construction IJaiiilities Due to other funds $ 262,999 $ 715 $ $ Intergovernrnental II Accounts payable ]97,325 49,732 106,900 Deferred revenue 440,545 AcclUed expenses Salaries and benefits 768,608 Payroll withholdings ]7],66] Amoullt available for student activities -: , Bonds payable , Compensated absences payable Total liabilities 1,841,]38 715 49,732 106,900 Fund Equity . Contributed Capital I Investment in general fixed assets Unn:served retained deficit Fund Balances Reserved for Athletic 33,08] Ii' Capital reserve 214,47] Construction 457,277 Reading 3,320 Non-expendable trusts Umeserved 2,498,968 . Total fund balances 2,502,287 33,081 214,471 457,277 Total fund equity 2,502,288 33,081 214,47] 457,277 Total liabilities and fund equity $ 4,343,426 $ 33,796 $ 264,203 $ 564,177 .' See Notes to Financial Statements. . 5 . -' ~_, "". -,""Pp~r_,~,o~ ...~_~M' '" "_,~'~"_'<>r~_~_ ~,~__~. " '-, ,-~c , --. - ~~~-'~ ~-'" ,:" -''''-~'-' -'~; . . Proprietary Trust and Agency Account Groups . Fund Type Non- General General Totals Enterprise Expendable Fixed Long-Term (Memorandum Cafeteria Trusts Agency Assets Debt Only) $ 27,880 $ $ 35,231 $ $ $ 326,825 " 496,755 496,755 679 200 354,836 16,680 457,225 768,608 146,685 318,346 . 58,567 58,567 15,960,000 15,960,000 662,302 662,302 45,239 200 737,238 16,622,302 19,403,464 '. 281,401 281,401 45,081,519 45,081,519 (243,366) (243,366) . 33,081 214,471 457,277 3,320 61,180 61,180 . 2,498,968 61,180 3,268,296 38,035 61,180 45,081,519 48,387,851 . $ 83,274 $ 61,380 $ 737,238 $ 45,081,519 $ 16,622,302 $ 67,791,315 . . 6 If ,. ~liIili'NI'j.L\k!illiW'eJ""If-l0'H_"'i'':'R,~i!ffi''~''I~''''~<Ril'",-T'~Hk#:t','d.~",,;tiL-":;~>1',"'f!'f<Xll'~_};;~\""""-~';""""""~I3ift';ki:Wliii'.lii!!!Ii&~~,j . ~~~'d"j'%l'iI&J~~~l-ll . SHIPPENSBURG AREA SCHOOL DISTRICT COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year Ended Jnne 30, 2000 . Governmental Fund Types . Special Revenue Capital General Athletic Reserve Revenue Local Sources $ 11,096,355 $ 54,161 $ 217 .il State appropriations 9,532,024 Federal appropriations 600,894 [I Total revenne 21,229,274 54,161 217 II Expenditures il " i Instructional 13,842,742 .1 Support services 6,428,140 I ! Operation of non-instructional services 240,524 143,248 Debt service 1,893,851 Capital outlay 206,346 Total expenditures 22,405,257 143,248 206,346 . Deficiency of revenue over expenditures (1,175,983) (89,087) (206,129) Other Financing Sources (Uses) Operating transfers in 75,413 . Operating transfers out (75,413) Refunds of prior years' expenditures 1,365 Interest 321,411 Proceeds from sale of equipment 5,777 Other financing sources - net 253,140 75,413 . Deficiency of revenue and other financing sources over expenditures (922,843) (13,674) (206,129) Fund Balances - July 1, 1999 3,425,131 46,755 420,600 . Fund Balances - June 30, 2000 $ 2,502,287 $ 33,081 $ 214,471 Se" Notes to Financial Statements. . 7 . _I ,~* -', -' ",",' . . . Capital Project Construction Totals (Memorandum Only) ,. $ $ 11,150,733 9,532,024 600,894 21,283,652 . 13,842,742 6,428,140 497 384,269 1,893,851 1,599,215 1,805,561 . 1,599,712 24,354,563 (1,599,712) (3,070,911) . 75,413 (75,413) 1,365 58,822 380,233 5,777 . 58,822 387,375 (1,540,890) (2,683,537) $ 1,998,167 457,277 $ 5,890,653 3,207,117 8 , '[',_.1 led ,. . , ", -~.' .,.....~'," ,.".j . SHIPPENSBURG AREA SCHOOL DISTRICT . STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL-GENERAL FUND Year Ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) Revenue Local sources $ 11,468,676 $ II ,096,355 $ (372,321) State appropriations 9,496,531 9,532,024 35,493 Federal appropriations 425,469 600,894 175,425 Total revenue 21,390,676 21,229,274 (161,402) Expenditures Instructional 13,842,742 13,842,742 Support services 6,281,345 6,428,140 (146,795) Operation of non-instructional services 240,524 240,524 Other 1,893,851 1,893,85 f Total expenditures 22,258,462 22,405,257 (146,795) Deficiency of revenue over expenditures (867,786) (1,175,983) (308,197) Other Financing Sources (Uses) Operating transfers out (75,413) (75,413) Refund of prior years' expenditures 1,365 1,365 Interest 321,411 321,411 Proceeds from sale of equipment 5,777 5,777 Other financing sources (uses) - net (75,413) 253,140 328,553 Deficiency of revenue and other financing sources over expenditures and other financing uses $ (943,199) (922,843) $ 20,355 Fund Balance - July I, 1999 3,425,131 Fund Balance - June 30, 2000 $ 2,502,287 . . . . . . See Notes to Financial Statements. . . . 9 -'" < " 'I "-'i-- ,:.- - -'-', ,~ ''r~ . SIUPPENSBURG AREA SCHOOL DISTRICT . STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS (DEFICIT)/FUND BALANCE - PROPRIETARY FUND TYPE AND NON-EXPENDABLE TRUST FUND Year Ended Jnne 30, 2000 Proprietary Fiduciary . Fund Type Fund Type Totals Enterprise Non-Expendable (Memorandum Cafeteria Trust Only) Operating Revenue Sales $ 584,857 $ $ 584,857 ,. Operating Expenses Donated commodities used 34,837 34,837 food and Milk 354,638 354,638 I_abor, taxes and benefits 417,991 417,991 Professional and technical services 3,248 3,248 Supplies 25,430 25,430 . Electricity 20,000 20,000 Trash removal 2,499 2,499 Extennination fees 1,436 1,436 Communications 217 217 Equipment repairs and maintenance 7,548 7,548 Advertising 1,051 1,051 . Travel 829 829 Oues and fees 430 430 Depreciation 28,852 28,852 Scholarships 3,450 3,450 Total operating expenses 899,006 3,450 902,456 ,. Operating loss (314,149) (3,450) (317,599) Nonoperating revenue Interest 1,615 2,809 4,424 f ederaI subsidies 193,498 193,498 ,. State subsidies 15,760 15,760 Value of donated commodities 34,837 34,837 Social security subsidy 12,269 12,269 Retirement subsidy 5,931 5,931 Contributions 500 500 Total nonoperating revenue 263,910 3,309 267,219 Net loss (50,239) (141) (50,380) Retained Earnings (Deficit)/Fund Balance - July I, 1999 (193,127) 61,321 (131 ,806) Retained Earnings (Deficit)/Fund Balance - June 30, 2000 $ (243,366) $ 61,180 $ (182,186) See Notes to financial Statements. 10 Dti'\t!~M<I~'~h,"H~"'tijjl";;';;W"th\j~""'I"~''''''!J;to!H~l\.'i\"d<k'!'''~~;;';""~';"""':;.f"""iiiWit';H.\<:t&iI.J.w.,",H;4,.",*".~.Wj\~~tiU61ilili!f/~"c., Jrf _~' ~'~li j .' SHIPPENSBURG AREA SCHOOL DISTRICT . STATEMENT OF CASH FLOWS - PROPRIETARY FUND TYPE AND NON-EXPENDABLE TRlJSTFUND Year Ended June 30, 2000 Proprietary Fiduciary . Fund Type Fund Type Totals Enterprise Non-Expendable (Memorandum Cafeteria Trust Only) Cash Flows From Operating Activities Cash received from meal sales $ 584,857 $ $ 584,857 Cash payments for goods and services (489,293) (3,450) (492,743) . Cash payments to employees for services (320,755) (320,755) Net cash used in operating activities (225,f91) (3,450) (228,641 ) Cash Hows from Noncapital Financing Activities Fedleral and state subsidies 221,527 221,527 Retirement subsidy 5,931 5,931 . Contributions 500 500 Net cash provided by noncapital financing activities 227,458 500 227,958 Cash IFlows From Capital and Related Financing Activities Acquisition of equipment (6,907) (6,907) . Cash !Flows From Investing Activities Inv~$tment income 1,615 2,809 4,424 Change in investments (282) (282) Net cash provided by investing activities 1,615 2,527 4,142 Net decrease in cash (3,025) . (423) (3,448) Cash: July 1, 1999 5,257 2,050 7,307 June 30, 2000 $ 2,232 $ 1,627 $ 3,859 . (Continued) . . II . ",,=--~ , - "~ . ~-- , . -'w;.~ . SHIPPENSBURG AREA SCHOOL DISTRICT . STATEMENT OF CASH FLOWS - PROPRIETARY FUND TYPE AND NON-EXPENDABLE TRUST FUND (Continued) Year Ended June 30, 2000 Proprietary Fiduciary . Fund Type Fund Type Totals Enterprise Non-Expendable (Memorandum Cafeteria Trust Only) Reconciliation of Operating Loss to Net Cash Used in Operating Activities Operating loss $ (314,]49) $ (3,450) $ (3] 7,599) . Adjustments to reconcile operating loss to net cash used in operating activities Depreciation 28,852 28,852 Value of donated commodities 34,837 34,837 Changes in assets and liabilities: . (Increase) decrease in: Receivables 24,559 432 24,991 Inventories (10,168) (10,168) (Decrease) increase in Accounts payable (346) (346) Due to other funds 7,544 (432) 7,112 . Deferred revenue 3,680 3,680 Net cash used in operating activities $ (225,191) $ (3,450) $ (228,641) See Notes to Financial Statements. . It 12 . . . . . . . . -- _'0 .""...,-.', "' ~ '-"'.' o-~_ -, ,,'- "r:},;, '",<.iJ," SHIPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS N ute 1. Summary of Significant Accounting Policies The accounting policies of the Shippensburg Area School District conform with generally accepted accounting principles as applicable to governmental units. The following is a summary of the School District's significant accounting policies: Reporting Entity: The Shippensburg Area School District's financial statements include the operations of all organizations for which the School Board exercises oversight responsibility. Oversight responsibility is demonstrated by financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations, and accountability for fiscal matters. The Shippensburg Area School District is the lowest level of government which has oversight responsibility and control over all activities related to public school education in the Commonwealth of Pennsylvania. The District receives funding from local, state and Federal government sources and must comply with the requirements of these funding-source entities. However, the District is not included in any other governmental "reporting entity" since the School Board members are elected by the public and have decision-making authority, the power to designate management, the ability to significantly influence operations and primary accountability for fiscal matters. Additionally, the District does not exercise oversight responsibility over any other entities, and consequently, no other entities have been included in the accompanying financial statements. Basis of Presentation - Fund Accounting: The accounts of the School District are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue and expenditures or expenses. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are summarized by type in the financial statements. The following fund types and account groups are used by the School District: 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 and Payroll Funds) are accounted for through Governmental Funds. The measurement focus is upon determination of changes in financial resources rather than upon net income determination. f3 " i ~ . ~ ',_ "-"_do C' ';. ''" .-' "[it; . SHIPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS . Note I. Summary of Significant Accounting Policies (Continued) Basis of Presentation - Fund Accounting (Continued): . Governmental Fund Types (Continued) General Fund . The General Fund is used to account for a1\ financial transactions not accounted for in another fund. Revenue is primarily derived from local property, per capita and occupation taxes, and state and Federal distributions. Many of the more important activities of the School District, including instruction, administration of the School District and certain non-instructional services are accounted for in this fund. Special Revenue Funds . Special Revenue Funds are used to account for specific governmental revenue (other than major capital projects) that are legally restricted to expenditures for specified purposes. The Athletic Fund is authorized by Section 511 of the Public School Code of 1949 to account for the revenue and expenditures of athletic activities. . . The Capital Reserve Fund (Section 2932 is authorized by P.L. 145, Act of April 30, 1943, known as Section 2932 School Laws of Pennsylvania) accounts for (I) monies transferred during any fiscal year from appropriations made for any particular purpose which may not be needed, and (2) surplus monies in the General Fund of the School District at the end of any fiscal year. This fund is included in the financial statements as a Special Revenue Fund. Capital Project Fund The Capital Project Fund is used to account for financial resources available for the acquisition or construction of major capital facilities (other than those financed by proprietary and trust funds). 14 !;'..~~ , . j"" ~ "" ~J Wllliiilil!ii>;( . SHlPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS . Note I. Summary of Significant Accounting Policies (Continued) Basis of Presentation - Fund Accounting (Continued): Proprietary Fund Types . Proprietary Funds are used to account for the School District's ongoing activities which are similar to those often found in the private sector. The measurement focus is upon determination of net income and capital maintenance, . Proprietary Fund: Enterprise Fund . The Cafeteria Fund accounts for all revenue and expenses pertaining to cafeteria operations since such operations are financed and operated in a manner similar to a private business enterprise. It is the intent of the governing body that the cost of providing such goods or services to the students on a continuing basis be financed or recovered primarily through user charges or cost reimbursement plans. Fiduciary Fund Types . Fiduciary Funds are used to account for assets held by the School District in a Trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. Fiduciary Fund: Trust and Agency Funds . Trust and Agency Funds are used to account for assets held by the School District in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. Agency funds are custodial in nature and do not involve measurement of results of operations. Agency funds include the student activity fund, payroll fund and earned income tax fund. The Trust Fund includes the non-expendable scholarship funds. The Activity Fund accounts for the monies authorized by Section 511 of the Public School Code of 1949 for school publications and organizations. The Activity Fund is an Agency Fund but is separate from other Agency Funds because of legal requirements. . 15 -- ".:~. " _L .--,'." :.- . ..,;, -~ - ,- ...,- .-,., - . ,.". ':lijji~" . SHIPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS . Note 1. Summary of Significant Accounting Policies (Coutinued) Basis of Presentation - Fund Accounting (Continued): . Account Groups: General Fixed Assets Account Group . This account group is used to record all property, plant and equipment ofthe School District except that which is accounted for in the Enterprise Fund. General Long-Term Debt Account Group . This account group presents principally the balance of long-term debt which is backed by the full faith and credit of the School District. Long-term debt accounted for in the Enterprise Fund is excluded. Basis of Accounting: . The District applies all relevant Governmental Accounting Standards Board (GASB) pronouncements. Proprietary funds apply Financial Accounting Standards Board (F ASB) pronouncements, Accounting Principles Board (APB) opinions and Accounting Research Bulletins (ARBs) of the Committee on Accounting Procedures issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements, in which case, GASB prevails. Basis of accounting refers to when revenue and expenditures are recognized in the accounts and reported in the financial statements. . . All Governmental Funds utilize the modified accrual basis of accounting. Under this method, revenue is recorded when susceptible to accrual, i.e., both measurable and available. "Available" means collectible within the current period or soon enough thereafter to pay current liabilities. Such revenue items, which are accrued in the year to which they apply, are principally property taxes and inter-governmental revenue. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long- term debt which are recognized when due. Disbursements for inventory-type items and prepaid expenses are considered expenditures at the time of purchase. . Agency Funds are custodial in nature (assets equal liabilities ) and do not involve measurement of results of operations. Agency Funds are also accounted for using the modified accrual basis of accounting. 16 I ~~ "~ ',,,,,,:,_,:,~,,,, .' u' ',:,,_,~_, ,'"'>~' <' _ " ."_ ".I, .'" ;r-, . SHIPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS . Note 1. Summary of Significant Accounting Policies (Continued) Basis of Accounting (Continued): . The Cafeteria Fund uses the full accrual method of accounting: Furniture and equipment utilized by the Cafeteria Fund is recorded as fixed assets of that Fund (at cost), and is depreciated therein on a straight-line basis over an estimated useful life of]2 years. The fixed assets, net of accumulated depreciation, are a component of retained earnings. . Donated commodities received by the Cafeteria Fund are inventoried at estimated cost to purchase comparable products locally or at cost figures provided by the Federal government if comparable products are not locally available, Inventories are valued on a first-in, first-out basis; remainder inventories at year-end are a component of retained earnings. . The School District does not attempt to allocate "building-wide costs" to the Cafeteria Fund. Thus, General Fund expenditures which partially benefit the Cafeteria Fund (utilities, janitorial services, insurance, etc.) are not proportionately recognized within the Cafeteria Fund; similarly, the Cafeteria Fund does not recognize a cost for the building space it occupies (no rental-of-facilities expense). . Budgets and Budgetary Accounting: The School District adopts an annual budget for the General Fund. . The budget is maintained on a modified accrual basis by function and object, with expenditures controlled by line item. Appropriations lapse at the end of each year and must be reappropriated. The School Board approves budget transfers between and within departments of the School District's General Funds. Budgeted amounts are as originally adopted or as amended by the School Board at various times. Cash and Cash Equiva]ents: For purposes of the statement of cash flows, cash equivalents include time deposits, certificates of deposit, and all highly-liquid debt instruments with original maturities of three months or less. Investments: Investments are stated at market value. Allowance for Estimated Uncollectible Taxes and Deferred Tax Revenue: The allowance for estimated uncollectible taxes is based upon an historical estimate of delinquent taxes that will not be collected. Deferred tax revenue is based upon an historical estimate of delinquent taxes expected to be collected subsequent to the first sixty days of the following fiscal year. . f7 " "~ ~ " .~ '~"";':j,:l 1,_'_0' I, .;.-a:., . SHIPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS . Note 1. Summary of Significant Accounting Policies (Continued) Use of Estimates: The preparation of general purpose financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates, . General Fixed Assets: . General Fixed Assets are recorded at replacement values as determined by an Industrial Appraisal Company report dated December 31,1999, except for land, which is recorded at cost. Generally accepted accounting principles require General Fixed Assets to be recorded at historical or estimated historical cost. Original-purchase and replacement equipment are charged to the appropriate General Fund expenditure account as prescribed by the Pennsylvania Department of Education. No depreciation has been provided on General Fixed Assets. General Long-Term Debt: . The General Long-Term Debt Account Group consists of: . 1. Sick leave and vacation payable. 2. Outstanding General Obligation Bonds - Series of 1996 issued on July 15, 1996. 3. Outstanding General Obligation Note - Series of 1997 (refinancing of Series of 1991) issued on January 16, 1997. 4. Outstanding General Obligation Bonds - Series of 1997 issued on December 3,1997. 5. Signet Leasing - computer system. . Totals - Memorandum Only: The columns on the combined financial statements are not necessary for a fair presentation of the financial statements in conformity with generally accepted accounting principles. They are presented to facilitate financial analysis. Aggregation of this data is not comparable to a consolidation as interfund eliminations have not been made. Note 2. Cash and Investments The cash and investment policies of the District are governed by statute. Cash must be held in insured depositories approved by the School Board and must be fully collateralized. Permissible investments include United States Treasury Bills and short-term obligations of the United States Government or its agencies or instrumentalities, shares of an investment company whose investments are restricted to the preceding categories and which are invested in the above government instruments, and fully-insured or collateralized certificates of deposit issued by banks or savings and loan associations. 18 . -- ~ ~~ ' '" I "'- ,,- ,'" -~. ~ lli Jt_~; . SHlPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS . Note 2. Cash and Investments (Continued) Cash . The District's carrying amount of cash deposits at June 30,2000, for all funds amounted to $933,207. Of the total bank balance of $1,234,677, $142,405 was covered by Federal depository insurance. The remainder of $1 ,092,272 is covered by pooled collateral maintained in conformity with Act 72. . The carrying amount of cash and investments as presented on the balance sheet includes petty cash of $750. . Act 72 is an act standardizing the procedures for pledges of assets to secure deposits of public funds with banking institutions pursuant to other laws; establishing a standard rule for the types, amounts, and valuations of assets eligible to be used as collateral for deposits of public funds; permitting assets to be pledged against deposits on a pooled basis; and authorizing the appointment of custodians to act as pledgees of assets. Investments . Certain of the District's investments which may be classified (under standards set by the Governmental Accounting Standards Board) are either insured, registered, or securities which are held by the District's agent in the District's name. Accordingly, all such items are classified in Category I. Investments may also be categorized as Category 2, which is defined as uninsured or unregistered investments for which the securities are held by the broker's or dealer's trust department or agent in the District's name, and Category 3, which is defined as uninsured or unregistered investments for which the securities are held by the broker or dealer or by its trust department or agent but not in the District's name. The District has no investments which would be classified in Categories 2 or 3. However, the District does have investments which are not in any of the three defined categories because securities are not used as evidence of the investment. . The District's investments are categorized below to give an indication of the level of risk assumed at June 30, 2000, (based on bank balances): . 19 ,,~- -'- ,'-, '" Mi . SHIPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS . Note 3. Property Taxes . Property taxes are levied on July 1st. Taxes are collected at a discount until August 31st, at their face amount from September 1st until October 31st, and include a penalty thereafter. The taxes are billed and collected by elected tax collectors. The County Tax Bureaus collects delinquent real estate taxes for the School District. Note 4. Taxes Receivable and Deferred Revenue . A summary of the taxes receivable and related accounts are as follows: Amount Uncollected taxes. real estate $ 368,245 . Uncollected taxes. personal 192,868 Interest and commissions - net 12,374 Realty transfer taxes 25,375 Taxes Receivable - Net $ 598,862 {I Taxes to be collected within 60 days $ 187,725 Deferred revenue - delinquent taxes 433,976 Allowance for uncollectable taxes (22,839) . Taxes Receivable - Net $ 598,862 Deferred Revenue Delinquent taxes $ 433,976 Grants 6,569 . Donated comodities - Cafeteria Fund 16,680 $ 457,225 20 "" ',-",-.,- \',-.' ~'- 2',-, . SHIPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS . Note 5. Accrued Salaries and Benefits Accrued salaries and benefits at June 30, 2000, consist of the following: . Amount Accrued salaries $ 696,594 Retirement 13,499 Social security 53,290 Workers' compensation 5,225 . $ 768,608 . Accrued salaries represent teachers' salaries earned during the 1999-00 school year which will be paid subsequent to June 30, 2000. Accrued retirement represents the public school employees' retirement board contribution for the second quarter of calendar year 2000, including the portion pertaining to accrued salaries at June 30, 2000. Accrued social security represents the District's liability arising from accrued salaries at June 30, 2000. . Note 6. Cafeteria Fund Inventory The composition of Cafeteria Fund inventory is as follows: . Materials and supplies Purchased food Donated food $ Amount 4,808 15,729 16,680 37,217 $ . . 2f ,i"'~'-" ~ -I -.,;.; I ,~'-,- .-'0". . SHIPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS . Note 7. Fixed Assets A summary of changes in fixed assets for the year ended June 30, 2000 follows: . July I, 1999 Changes June 30,2000 General Fixed Assets Land and site improvements $ 51,396 $ $ 5],396 Buildings and improvements 38,043,526 (1,350,353) 36,693,173 Furniture and equipment 5,340,326 2,996,624 8,336,950 . $ 43,435,248 $ ] ,646,271 $ 45,081,519 Enterprise Fund Fixed Assets Machinery and equipment $ 361,679 $ 6,907 $ 368,586 Accumulated depreciation (295,909) (28,852) (324,761) .! $ 65,770 $ (2] ,945) $ 43,825 . The net changes in fixed assets are combinations of new assets purchased and increases in the appraisal values of all assets. However, the balances in the General Fixed Assets do not reflect the increases in the insurable values for construction-in-progress and renovations to the Middle and Senior High Schools for which the District spent approximately $15,000,000 over the past three years. These increases will be reflected as of June 30, 2001, as a consequence of that fiscal year's industrial appraisal. . Note 8. General Long-Term Obligations A summary of the reporting entity's general long-term obligations as of June 30, 2000, and transactions during the year then ended follows: Balances Balances July], ]999 Increase Decrease June 30, 2000 General Long-Term Obligations: General Obligation Bonds - Series of] 996 $ 4,985,000 $ $ 5,000 $ 4,980,000 General Obligation Note- Series of] 997 880,000 880,000 General Obligation Bonds - Series of] 997 ] ] ,080,000 100,000 10,980,000 Signet Leasing - computer system 82,355 82,355 Compensated absences payable 604,673 57,629 662,302 $ 17,632,028 $ 57,629 $ ],067,355 $ ] 6,622,302 . 22 . . "'~~;- "_.~ ~ J_ ~ ~1"'.ot!11I"i" . SHlPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS . Note 8. General Long-Term Obligations (Continned) . General Obligation Bonds - Series of 1996 - On July 15, 1996, the School District issued General Obligation Bonds in the principal amount of $4,995,000. The bonds bear annual interest with rates ranging from 4.60% to 5.25%. Interest is payable semi-annually on November 15 and May 15, and the bonds mature serially in amounts ranging from $5,000 to $825,000 through November 15, 2006. .. General Obligation Note - Series of 1997 - On January 16, 1997, the School District issued a General Obligation Note in the principal amount of $2,739,000. The note paid an annual interest rate of 4.21%. Interest was payable semi-annually on September I and March 1, and the note matured serially from $880,000 to $939,000 through March 1,2000. This note has been satisfied during the year. General Obligation Bonds - Series of 1997 - On December 3, 1997, the School District issued General Obligation Bonds in the principal amount of $11,080,000. The bonds bear annual interest with rates ranging from 4.00% to 5.10%. Interest is payable semi-annually on November 15 and May 15, and the bonds mature serially in amounts ranging from $100,000 to $1,645,000 through November 15,2012, . Signet Leasing - computer system - On August 31,1995, the School District entered into a capital lease for certain computer equipment costing $373,288 which is included in the General Fixed Asset Account Group. The lease paid an annual interest rate of 5.28%. The lease, which paid equal annual payments of $86,703, including interest, was satisfied during the year. . The following is a schedule of principal and interest to service long-term bond, note, and capital lease obligations of the School District: Year Principal Interest Total 2000-200 ] $ 970,000 $ 749,446 $ 1,7]9,446 . 2001-2002 1,015,000 704,961 1,7]9,96] 2002-2003 1,065,000 657,048 1,722,048 2003-2004 I,] ]5,000 605,565 1,720,565 2004-2005 10,625,000 2,063,785 12,688,785 Therafter l,f70,000 550,733 1,720,733 $ 15,960,000 $ 5,331,538 $ 21,291,538 . . 23 -,,,<j , ,- '.i__1 , , -.c:-. " ,-), .n,' el. "-, ';"'0' "~. . .. j " . SHIPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS . Note 9. Compensated Absences . Upon retirement, employees are paid for unused sick days at rates varying with length of service and job classification subject to various maximums. These amounts are recorded as expenditures in the period taken or in the year of separation. The amount presented in the general long-term debt account group is an estimate. . All teachers and administrators retiring with at least 25 years of service in the Pennsylvania Public School Employees' Retirement System (PSERS) and 15 years of service in the District, are paid by the District for 40% of their accumulated unused sick days (to a maximum of 100 days) at the rate of $50 per day. Support staff with at least 15 years of service with PSERS and the District will receive payment for 100% of their accumulated unused sick days at $50 per day, up to a maximum of $4,500. Support staff supervisors with at least 25 years of service with PSERS and 15 years of service with the District receive payment for 100% oftheir unused sick days at a rate of $50 per day up to a maximum of $5,500. . For the year ended June 30, 2000, benefits attributed to employees retiring during the 1999-00 year amounted to $17,790 for 4 participants, Note 10. Due TolFrom Other Funds . Individual fund receivable and payable balances at June 30, 2000 were as follows: Receivables Payables General fund $ 63,826 $ 262,999 . Payroll 20,614 Capital reserve 262,999 Cafeteria 27,880 Earned income tax fund 14,617 Middle School Athletics 715 . $ 326,825 $ 326,825 . . 24 _. . . . . . . . ,. . . . - - "" '~'...LY '.. ":'" Fi'.- SHIPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS Note 11. Post-Employment Benefits Under the Consolidated Omnibus Reconciliation Act (COBRA), the District provides healthcare benefits to eligible former employees and their dependents. Requirements are outlined by the Federal Government for this coverage. The premium plus a 2% administrative fee is paid in full by the eligible participant. This program is offered for a duration of up to 18 months or 36 months after an employee's termination date. At June 30, 2000, there were 9 participants covered under COBRA. Note 12. Participation in Risk Sharing Pool The District is a participant in a risk sharing pool to provide workers' compensation coverage. The expense for this coverage for the ]999-00 year was $] 7,544, comprised of a self-insured retention of $],] ] 7 and a contribution to the Centra] Fund of $] 6,427. Actual claims during the year are first paid out of the self-insured retention. Claims that exceed the self-insured retention are satisfied by the Central Fund. The Central Fund maintains excess insurance to cover any claims that exceed $400,000 per accident. There are approximately 79 districts participating in the pool. If there is a deficiency in the pooled funds, each member is assessed a proportionate share. Upon withdrawal by an individual member from the pool, the terminating member has no rights to funds in the pool. Note 13. Defined-Benefit Pension Plan Plan Description: The School District contributes to the statewide Public School Employees Retirement System (the System), a governmental cost-sharing multiple-employer defined-henefit pension plan administered by the System. In addition to regular retirement benefits, the System also provides for disability and death benefits. Membership in the System is mandatory for substantially all full-time public school employees in the Commonwealth of Pennsylvania (Commonwealth), State statutes assign the authority to establish and amend benefit provisions of the Pennsylvania Public School Employees' Retirement Code (the Code) to the Pennsylvania General Assembly. The Public School Employees' Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for the defined-benefit pension plan. That report may be obtained by writing to Public School Employees' Retirement System of Pennsylvania, P.O. Box ]25, Harrisburg, Pennsylvania, ]7]08 or by calling 7] 7-787-8540. 25 _ ,~~ -" ,__ _ """ '-0 ~i ,- ,_ _, ~:;1 . SHIPPENSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS . Note 13. Defined-Benefit Pension Plan (Continued) Funding Policy: . The contribution policy is set by the Code and requires contributions by the active employees, School District and the Commonwealth. The current contribution rate for active employees joining the System before July 22, 1983 is set by law at 5.65% oftheir annual covered salary. For active employees joining the System on or after July 22, 1983, the rate of contribution is 6.25% of their annual covered salary. Prior to July I, 1995, the School District and the Commonwealth shared equally the contribution rate. Effective July I, 1995, the School District is required to pay the entire contribution rate. The School District will be reimbursed by the Commonwealth in an amount equal to the Commonwealth's share as determined by the income aid ratio (as defined in Act 29 of 1994), which is at least one half of the total School District rate. The School District's contributions to the Plan for the years ended June 30, 2000, 1999, and 1998 were $549,081, $673,146, and $932,303, respectively, which were equal to the required contributions for each year. . . Note 14. Risk Management . The Shippensburg Area School District is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets and errors or omissions. Significant losses are covered by commercial insurance for all major programs. For insured programs, there have been no significant reductions in settlement coverage. Settlement amounts have not exceeded insurance coverage for the current year or the three prior years. . . . " 26 ,l--- , .- . . . . . . ,. . .. . . - o '~ [ -lllid SUPPLEMENTARY INFORMATION ,."~ ~ . . . . . . .. . . . . SHIPPENSBURG AREA SCHOOL DISTRICT GENERAL FUND - SCHEDULE OF REVENUE Year Ended Jnne 30, 2000 " ",{;;,i'.i,;",,-,-, .. ~;.;. Revenue Local sources Real estate taxes Current Interim Public utility tax Payments in lieu of taxes Current per capita taxes 679 511 Occupational privilege tax Earned income tax Occupation tax Real estate transfer taxes Delinquent real estate taxes Delinquent per capita taxes 679 511 Delinquent occupation tax Rentals Tuition Contributions Reading recovery Miscellaneous Total revenue from local sources State appropriations Basic instructional subsidy Read to Succeed Section 1305 and 1306 Performance incentives Homebound instruction V ocational education Driver education Special education Transportation $ 7,396,676 136,226 107,691 6,540 48,666 48,666 71,379 1,295,991 1,083,639 245,463 336,136 5,288 5,288 143,603 2,558 7,840 743 72,900 81,062 11 ,096,355 5,963,612 157,954 49,752 1,750 976 33,339 1,785 1,209,697 609,231 (Continued) 27 .~ "' \.,-. ~- ~' , , -,' e',_'., . SHIPPENSBURG AREA SCHOOL DISTRICT . GENERAL FUND - SCHEDULE OF REVENUE (Continued) Year Ended June 30, 2000 . Revenue (Continued) State appropriations (Continued) Rentals and sinking fund payments 691,223 Medical and dental services 55,146 Social security reiI1l bursement 461,888 Retirement reimbursement 267,171 . ACES 5,000 Link to Learn 23,500 Total state appropriations 9,532,024 . Federal appropriations Title I - Grants to Local Educational Agencies 329,416 Eisenhower Professional Development State grants 14,333 Safe and Drug-free Schools and Communities 10,829 Innovative Education Program Strategies 75,916 . Medical Assistance Program 47,683 Impact Aid 446 IDEA 74,225 Goals 2000 48,047 Total Federal appropriations 600,894 . Other financing sourCes Refunds of prior years' expenditures 1,365 Interest 321,411 Proceeds from sale of equipment 5,777 . Total other financing sources 328,553 Total revenue $ 21,557,826 . . . 28 - "~ ...-,.\, ., . >'_'""o,c"".~ . SHIPPENSBURG AREA SCHOOL DISTRICT . GENERAL FUND - SCHEDULE OF EXPENDITURES Year Ended Jnne 30, 2000 . Expendl tures Instructional Regular programs Salaries $ 7,138,753 Employee benefits 1,456,185 . Purchased services Professional and technical 20,897 Property 86,638 Other 199,494 Supplies 456,661 Property 55,522 . Other objects ],815 Total regular programs 9,4]5,965 Special programs Salaries ] ,502,362 . Employee benefits 338,060 Purchased services Professional 928,688 Property 581 Other 122,548 . Supplies 23,1 ]9 Property 23,082 Other 330 Total special programs 2,938,770 . Vocational education programs Salaries 345,7] 7 Employee benefits 66,799 Purchased services Property ],093 Other 522,8]8 . Supplies 12,091 Property ],149 Total vocational education programs 949,667 . (Continued) . 29 " . . . . . . . . . . . -... "" .';" . ~ > ~ ,.,.-,'". '",""'" .-. SHIPPENSBURG AREA SCHOOL DISTRICT GENERAL FUND - SCHEDULE OF EXPENDITURES (Continued) Year Ended June 30, 2000 Expenditures (Continued) Instructional (Continued) Other instructional programs Salaries Employee benefits Purchased services Professional and technical Other Supplies 420,943 83,544 671 6,940 4,814 Total other instructional programs 516,912 Adult education programs Salaries Employee benefits Purchased services Other Supplies 12,107 3,012 909 450 Total adult education programs 16,478 Community college education program 4,950 Total instructional 13,842,742 Support Services Pupil personnel Salaries Employee benefits Purchased services Professional and technical Property Other Supplies Property Other objects 467,551 98,377 116,894 50 1,594 9,203 8,618 979 Total pupil personnel 703,266 (Continued) 30 . . . . . .. . . . . . - ,">>,.-, ,- "" "';;",~;";"',,_.~, ",' .,~'~, ,.- -,~-, ,,' SHIPPENSBURG AREA SCHOOL DISTRICT GENERAL FUND - SCHEDULE OF EXPENDITURES (Continued) Year Ended June 30, 2000 Expenditures (Continued) Support Services (Continued) Instructional staff Salaries Employee benefits Purchased services Professional and technical Property Other Supplies Property Other objects 404,507 87,984 5,980 3,5]5 ]5,825 105,]40 555,093 1,948 Total instructional staff ],]79,992 Administration Salaries Employee benefits Purchased services Professional and technical Property Other Supplies Property Other objects 874,239 184,578 71,]99 ],7]9 52,223 13,443 11,580 13,547 Total administration 1,222,528 Pupil health Salaries Employee benefits Purchased services Professional and technical Property Supplies 120,061 27,177 ]5,225 92 4,352 Total pupil health ] 66,907 (Continued) 31 l.l c I ,",' . ~., ,~ ,;,,, ','~..-;,,, " ','" .."',,,,;, . . SHIPPENSBURG AREA SCHOOL DISTRICT GENERAL FUND - SCHEDULE OF EXPENDITURES (Continued) Year Euded Jnne 30, 2000 . Expenditures (Continued) Support Services (Continued) Business Salaries Employee benefits Purchased services Professional and technical Property Other Supplies Property Other objects 154,832 38,732 . . 1,364 298 22,596 4,880 6,071 365 Total business 229,138 . Operation and maintenance of plant services Salaries Employee benefits Purchased services Property Other Supplies Other objects 545,625 144,375 . 355,361 81,454 207,130 200 Total operation and maintenance of plant services 1,334,145 . Student transportation services Purchased services Professional and technical Other Supplies Other objects 4,150 1,493,678 1,959 140 . Total student transportation services 1,499,927 (Continued) . . 32 .-" - ~- , " ".' ,-, "'-' ,,""- '. ',~ . . SHIPPENSBURG AREA SCHOOL DISTRICT GENERAL FUND - SCHEDULE OF EXPENDITURES (Continued) Year Ended June 30, 2000 . Expenditures (Continued) Support Services (Continued) Central service Purchased services Professional and technical Property Supplies Property 24,424 22,615 280 24,890 . Total central service 72,209 . Other support services 20,028 Total support services 6,428,] 40 . Operation of Non-Instructional Services Student activities Salaries Employee benefits Purchased services Professional and technical Property Other Supplies 180,748 21,851 . 150 12,227 4,845 6,645 Total student activities 226,466 . (Continued) . . . 33 t~ .J .'" , " ~ ~ ~ ~'. 0" ,~~~.- . . SHIPPENSBURG AREA SCHOOL DISTRICT GENERAL FUND - SCHEDULE OF EXPENDITURES (Continued) Year Ended June 30, 2000 . Expenditures (Continued) Operation of Non-Instructional Services (Continued) Community services Salaries Employee benefits Supplies Other objects 4,719 614 4,025 4,700 14,058 240,524 1,893,851 75,413 1,969,264 $ 22,480,670 . Total community services . Total operation of non-instructional services Other Debt service Operating transfers out . Total other Total expenditures . . . . . 34 , - '" ". ~, , ",' ';.-' ,"'~-- \iiiii,~- . . SHIPPENSBURG AREA SCHOOL DISTRICT SPECIAL REVENUE FUNDS - COMBINING BALANCE SHEET June 30, 2000 . Middle School Senior High Athletic Fund Athletic Fund Total ASSETS Cash $ 1,564 $ 32,232 $ 33,796 . LIABILITIES AND FUND BALANCES Liabilities Accounts payable. due to other funds $ 715 $ $ 715 . Fund Balances 849 32,232 33,081 Total liabilities and fund balances $ 1,564 $ 32,232 $ 33,796 . . . . . . 35 =^~~ . "'~" ., "" ,[ ,- '" , ' .., , ,;,; .; "'l"'~'- - - n . . SHIPPENSBURG AREA SCHOOL DISTRICT SPECIAL REVENUE FUNDS - COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 2000 . Middle Schoo I Senior High Athletic Fund Athletic Fund Total Revenue Local sources $ 10,221 $ 43,940 $ 54,161 . Expenditures Operation of non~instructiona1 services 46,078 97,170 143,248 Deficiency of revenue over expenditures (35,857) (53,230) (89,087) . Other Financing Sources Operating transfers in 20,413 55,000 75,413 Excess (deficiency) of revenue and other financing sources over expenditures (15,444) 1,770 (13,674) Fund Balances - July I, 1999 16,293 30,462 46,755 . Fund Balances - June 30, 2000 $ 849 $ 32,232 $ 33,081 . . . . . 36 , ~__~~<iI'I~!iIlUl;~lliill,'}lil~l'~~;!,i'~""'<4,}"Ji">ili,:"Si",m",~~"";""j~"",,,"'''!oili'_~1iMIdl~~~~~~ "= '<, '"'0 ,,' . SHIPPENSBURG AREA SCHOOL DISTRICT I; SPECIAL REVENUE FUNDS - COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Year Ended June 30, 2000 I; Middle School Athletic Fund Budget Actual Variance Favorable (Unfavorable) Revenue Local sources $ 7,920 $ 10,221 $ 2,301 . Expenditures Operation of non-instructional services 33,240 46,078 (12,838) (25,320) (35,857) (10,537) 20,413 20,413 $ (25,320) (15,444) $ 9,876 16,293 $ 849 . Deficiency of revenue over expenditures Other financing sources Operating transfers in Excess (deficiency) ofrevenne and other financing sources over expenditures . Fund Balances - July I, 1999 Fund Balances - June 30, 2000 . . . . 37 . ;,-<f\(,~'"P.^","<<:__,,_",.,,_,~ ~_ _ ,n' ".=,_~~_ <. ,,,.~__ _...,', I'_.,~,"" '_"""_"-.~_e". -~ ,,_"~, ~_ '"'" . ~ '-~. _ """'" .~ _>, ,w", .~". rr ~-" - "'~ '," -"- -'-" .-" -'--, rrli~.,_: . . . Senior High Athletic Fund Total Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) II $ 39,900 $ 43,940 $ 4,040 $ 47,820 $ 54,161 $ 6,341 116,697 97,170 19,527 149,937 143,248 6,689 . (76,797) (53,230) 23,567 (102,117) (89,087) 13,030 55,000 55,000 75,413 75,413 . $ (76,797) 1,770 $ 78,567 $ (102,117) (13,674) $ 88,443 30,462 46,755 $ 32,232 $ 33,081 . . . . . 38 0""_> 'j, -,--., ~-" -,- 'ilit::, . . SHIPPENSBURG AREA SCHOOL DISTRICT CAFETERIA FUND - SCHEDULE OF REVENUE Year Ended Jnne 30, 2000 . Operating Revenue Lunches Regular Students $ 286,249 . Adults 13,209 A la carte 257,679 Miscellaneous 27,720 Total operating revenue 584,857 Nonoperating Revenue . Interest 1,615 Federal subsidies 193,498 State subsidies 15,760 Value of donated commodities 34,837 Social security subsidy 12,269 Retirement subsidy 5,931 . Total nonoperating revenue 263,910 Total revenue $ 848,767 . . . . . 39 '~~i.~~~gi~~\*,,')il"".,~i\j~'~;;l'i1!';;!i;]li>!tl<'fMl_i"C{~--W:,"",;",,*"'":j, iU-"",L,'''<J""~,,~>.,,.''''Sh'''/''I,;t0!"''lf'~I_t''-''-'''~-''''_~i!<<,~j.ru~1li}';'JL: ,. ., SHIPPENSBURG AREA SCHOOL DISTRICT .' . , NON-EXPENDABLE TRUST FUND - COMBINING BALANCE SHEET June 30, 2000 Class of Class of TravisE. David R. ., 1936 1950 Gritlith Landis, Jr. ASSETS Cash $ 509 $ 10 $ 12 $ 14 Investments 7,218 31,725 10.267 10,543 Total assets $ $ $ . 7,727 31,735 10,279 $ 10,557 LIAIlILITIES AND FUND EQUITY Liabilities Accounts payables $ 200 $ $ $ . Fund balance 7,527 31,735 10,279 10,557 Total liabilities and fund equity $ 7,727 $ 31,735 $ 10,279 $ 10,557 . . . . * 40 .' lJ",.,%~",""",,,~....,,, , ~,"~.,_ ~ .,. ~,~ ~_" ." .,,.-,..,,0" .., _~,~~,_""""'~'-""" ".'~e~'^,,"". ""~,=,",,,~', '''',_i7''''~.. - k "'~.< -~. . '..~ . '." - "~" r Larry Carey Music Total $ 1,082 $ 1,627 59,753 $ 1,082 $ 61,380 $ $ 200 aD 1,082 61,180 $ 1,082 $ 61,380 . . . . 41 ",- .""~>;>: . . SHIPPENSBURG AREA SCHOOL DISTRICT NON-EXPENDABLE TRUST FUND - COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCE Year Ended Jnne 30, 2000 . Class of Class of Travis E. David R. 1936 1950 Griffith Landis, Jr. Operating Expenses Scholarships $ 200 $ 2,000 $ 500 $ 500 . Total operating expenses 200 2,000 500 500 Nonoperating Revenue Interest 282 1,541 441 513 Contributions 500 . Total nonoperating revenue 282 2,041 441 513 Net income (loss) 82 41 (59) 13 Fund Balance - July I, 1999 7,445 31,694 10,338 10,544 Fund Balance - June 30, 2000 $ 7,527 $ 31,735 $ 10,279 $ 10,557 . . . . . . 42 I . . . Larry Carey Music Total $ 250 $ 3,450 . 250 3,450 32 2,809 500 . 32 3,309 (218) (141) 1,300 61,321 $ 1,082 $ 61,180 . . . . . . 43 '-H-! -' ~ "_!~ - ....J ...:. "-,-',,, ",.';",- --it SHIPPENSBURG AREA SCHOOL DISTRICT AGENCY FUNDS - COMBINING BALANCE SHEET June 30, 2000 Student Payroll Earned Income Activity Fund Fund Tax Fund Total ASSETS Cash $ 48,562 $ 167,299 $ 511,372 $ 727,233 Receivable 5 5 Investments 10,000 ]0,000 Total assets $ 58,567 $ 167,299 $ 511,372 $ 737,238 . LIABILITIES Due to other funds $ $ 20,614 $ 14,617 $ 35,231 . Intergovernmental 496,755 496,755 Payroll withholdings 146,685 146,685 Due to student groups 58,567 58,567 Total liabilities $ 58,567 $ 167,299 $ 511,372 $ 737,238 . . . . . 44 ,~~, - ._,,'~ ;', . <-, ~ - '-' ",,' Q~;"-' - ',~ .. . . SHIPPENSBURG AREA SCHOOL DISTRICT STUDENT ACTIVITIES FUND - COMBINING BALANCE SHEET June 30, 2000 . Elementary Middle School Senior High Activity Fund Activity Fund Activity Fund Total ASSETS Cash $ 8,544 $ 8,546 $ 31,472 $ 48,562 . Receivable 5 5 Investments 10,000 10,000 Total assets $ 8,549 $ 8,546 $ 41,472 $ 58,567 . LIABILITIES Due to student groups $ 8,549 $ 8,546 $ 41,472 $ 58,567 Total liabilities $ 8,549 $ 8,546 $ 41,472 $ 58,567 . . . . . . 45 . ~~ , -,=,~-- ~,' , ,~ ,,~'". .' "".;~'-~i" . . SHIPPENSBURG AREA SCHOOL DISTRICT STATEMENT OF CASH RECEIPTS AND CASH DISBURSEMENTS - EARNED INCOME TAX FUND . Year Ended June 30, 2000 Cash Receipts Earned income tax collections $ 3,509,326 Occupation tax collections 117,419 . Interest from temporary investments 29,231 Miscellaneous income - net of reimbursements 5,164 Total cash receipts 3,661,140 Cash Disbursements . Earned income tax collections distributed to municipalities and districts Shippensburg Area School District 1,295,991 Hopewell Township 149,063 Newburg Borough 18,680 Shippensburg Borough 277,929 Shippensburg Township 92,620 . Southampton Township Cumberland County 312,547 Franklin County 435,151 Orrstown Borough 9,735 Outside districts 868,271 . Occupation tax collections distributed to municipalities and districts Hopewell Township 2,040 Shippensburg area School District 71,379 Shippensburg Borough 24,104 Shippensburg Township 20,479 Southampton Township 8,018 . Refunds 24,111 Interest distributions 23,496 Miscellaneous expense 2,332 Total cash disbursements 3,635,946 Excess of cash receipts over cash disbursements $ 25,194 . . . 46 I~IBOYER & RInER CERTIFIED PuBLIC AccouNT~Ts Arm CONSULTANTS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of School Directors Shippensburg Area School District Shippensburg, Pennsylvania . We have audited the general purpose financial statements of the Shippensburg Area School District as of and for the year ended June 30, 2000, and have issued our report thereon dated August 4, 2000. In our report, our opinion was qualified because the School District has recorded General Fixed Assets at values as determined by an Industrial Appraisal Company report. Under generally accepted accounting principles, General Fixed Assets should be recorded at historical or estimated historical cost. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, . Compliance . As part of obtaining reasonable assurance about whether the Shippensburg Area School District's general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and, material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting . . In planning and performing our audit, we considered the Shippensburg Area School District's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. . . CAMP HILL CARLISLE CHAMBERSBURG LEWISTOWN STATE COLLEGE i\n lnde-pendently Owned Member of the McGladrey Network Worldwide Service Through RSM International ,.. .. .~ -/=' . . \'.."".'" -~'+ ." ;" .~ This report is intended for the information and use of the Board of School Directors, management, Federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. . . . Chambersburg, Pennsylvania August 4, 2000 . . . . . . 48 ~ .(~~v .=.--- ~" "-~ ~'~~'~"'~-.'-".~-=" !i1Ilfu;,- . 1~IBOYER & RInER CERTIFIED PuBLIC ACCOUNTANTS AND CONSULTANTS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Board of School Directors Shippensburg Area School District Shippensburg, Pennsylvania Compliance We have audited the compliance of Shippensburg Area School District with the types of compliance requirements described in the U S. Office of Management and Budget (OMB) Circular A-I33 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2000. Shippensburg Area School District's major Federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of the District's management. Our responsibility is to express an opinion on the District's compliance based on our audit. . We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-l33, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-l33 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the District's compliance with those requirements. ,. In our opinion, the Shippensburg Area School District complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000. . . . CAMP HILL CARLISLE CHi\MBERSBURG LEWISTOWN STATE COLLEGE An Independently Ov\'ned Memher of the MCGladrey Netvl.'ork Wor](lwi(le Service Throu~h RSM Internulional -, ~ . . . . . . . . . . . j~.,~-? ' Internal Control Over Compliance The management of the Shippensburg Area School District is responsible for, establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered the District's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended for the information and use of the Board of School Directors, management, Federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. ~~~ Chambersburg, Pennsylvania August 4, 2000 5Q ~ ' I" <, <" -~ ~ '.- '" _ ",,--J:~:, . . SHIPPENSBURG AREA SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2000 Section I -- Summary of Auditor's Results . Financial Statements Type of auditor's report issued: Qualified Internal control over financial reporting: . . Material weakness identified: Yes X No Reportable condition(s) identified that are not considered to be material weakness( es)? _Yes ..1L. None Reported . Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major program: . . Material weakness identified? Yes X No . Reportable condition(s) identified that is not considered to be material weakness( es)? _ Yes ..lL None Reported Type of auditor's report issued on compliance for the major program: Unqualified . Any audit findings disclosed that are required to be reported in accordance with Section .510(a} of Circular A-B3? Yes X No . . . . 51 SHIPPENSBURG AREA SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2000 Identification of the major programs: CFDA Number(s) 84.010 10.555 10.556 Name of Federal Programs/Cluster Grants to Local Educational Agencies National School Lunch Program Special Milk Program for Children Dollar threshold used to distinguish between type A and type B programs $300,000 Auditee qualified as low-risk auditee? Yes X No Section II -- Finan~ial Statement Findings . A. Reportable Conditions in Internal Control There were no findings relating to the financial statement audit required to be reported. B. Compliance Findings . There were no compliance findings relating to the financial statement audit required to be reported. . Section ill -- Federal Award Findings and Questioned Costs A. Reportable Conditions in Internal Control . There were no findings relating to the Federal awards as required to be reported in accordance with Section .510(a) ofOMB Circular A-I33. B. Compliance Findings There were no findings relating to the Federal awards as required to be reported in accordance with Section .510(a) ofOMB Circular A-I33. . . 52 ~~@i&~lhajl['~~~~'lI'.1"'-"''''<:;''''"",iJc''';'.:'.iO';i''',-!'''',~",",~;;,*,,,,,~,.. JllJ a'" ~'~~--':~~~ "~ ~"'~,,- ....." ~ m, . SHIPPENSBURG AREA SCHOOL DISTRICT . SCHEDULE OF' EXPENDITURES OF FEDERAL AWARDS Year Ended Jnne 30, 2000 Pass Federal Through . Source C.F.D.A Grantor's Grant Code Number Number Period U. S. Department of Edncation Impact Aid D 84.04\ N/A 99-00 Passed through the Pennsylvania . Department of Education: Title I - Grants to Local Educational Agencies 84.0\0 13-000387 99-00 Title \ - Grants to Local Educational Agencies 84.0\0 13-990387 98-99 Innovative Education Program Strategies 84.298 11-000387 99-00 . Innovative Education Program Strategies 84.298 11-990387 98-99 Innovative Education Program Strategies 84.298 11-000387 99-00 Eisenhower Professional Development State grants 84.28\ 20-000387 99-00 Eisenhower Professional Development . State grants 84.28\ 20-990387 98-99 Passed through the Lincoln Intermediate Unit Consortium Safe and Drug-free Schools and Communities 84.\86 100-0008\2 99-00 . Safe and Drug-free Schools and Communities 84.186 100-9908 I 2 98-99 Total U, S, Department of Education U. S. Department of Health . and Human Services Passed through the Pennsylvania Department of Education Medical Assistance Program 93.778 44-007387 99-00 Medical Assistance Program 93.778 44-007387 98-99 Total U, S, Department of Health . and Human Services . 53 .. ,.~.g( Wd~""""'"*',,,,,,n"f~!"'l~"lh_,,,,,"'<_..h,*,'.-",,~_-f",,,,~,,~,,,~,,"_,, ,,""_,_v~ I_~",~''''',,_ "-~'.~".'~; ~~ '~""'~;"'.'",''f",,~ .. ".,.,. _' .'", .~_,"\"'_r' ,_" ,-,-'""~~" ~ ~,~, Ii . Total Accrued Accrued Program Received (Deferred) (Deferred) or Annual (Refunded) in Revenue at Revenue Revenue at Award Fiscal Year 07/01/1999 Recognized Expenditures 06/30/2000 $ 446 $ 446 $ $ 446 $ 446 $ $ 329,673 131,869 328,465 328,465 196,596 $ 329,673 65,935 64,984 951 951 $ 11,194 6,716 6,969 6,969 253 $ 10,606 2,828 1,077 1,751 1,751 $ 67,196 67,196 67,196 67,196 $ 13,628 5,451 3,945 9,661 9,661 8,155 $ 13,755 1,834 (1,921) 4,672 4,672 917 $ $ 14,233 17,288 2,500 10,022 1,693 2,500 8,329 2,500 8,329 227,601 69,778 430,940 430,940 273,117 (16,419) 31,264 16,419 31,264 16,419 (1,433) N/A N/A 32,697 32,697 (16,419) 47,683 47,683 (1,433) . . 54 , ' ~!lI><,M"~_i"'11"<l'M"",,,,,,,,,,,,,,!'U:"''''''''iil~'.&J",l\,l!illl}.1@;>'tfW~''lffi'''''YN'~i'_*~~""li<M~~!til!litiiii_.If~' .i!i_iliilililw:lI;~~~~~IO"" ~ ", '.'-'," 1 . SHIPPENSBURG AREA SCHOOL DISTRICT . SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued) Year Ended June 30, 2000 Pass . Federal Through Source C.FD.A Grantor's Grant Code Number N urn ber Period U, S, Department of Agriculture Passed through the Pennsylvania Department of Education: . National School Lunch Program I(F) 10.555 N/A 99-00 National School Lunch Program I(S) N/A N/A 99-00 Special Milk Program for Children I(F) 10.556 N/A 99-00 Passed through the Pennsylvania . Department of Agriculture: Food Distribution (a) I(F) 10.550 N/A 99-00 Total U. S, Department of Agriculture . Total Expenditures:of Federal Awards Source Codes: Legends: D - Direct Funding I - Indirect Funding (F) - Federal Share (S) - State Share (a) Donated commodities valued at local market values (b) Total amount of commodities received from Department of Agriculture (c) Inventories at July 1, 1999 (d) Total amount of commodities used (e) Inventories at June 30, 2000 . . See Notes to Schedule of Expenditures of Federal Awards. . . 55 . 'dC~" ,..,<"'.~,~'" _ ~"~ . ~= _._, ,~ _"~~", ,.,- ""~.,,,.~~,== _'_''''0' ~~ ..-. ~ , . ',",' "'II:~t>' . . . Program or Annual Award Total Received (Refunded) in Fiscal Year Accrued (Deferred) Revenue at 07/0111999 Revenue Recognized Expenditures Accrued (Deferred) Revenue at 06130/2000 . N/A 188,716 188,716 188,716 N/A 15,760 15,760 15,760 N/A 4,782 4,782 4,782 . N/A (b) 38,516 (c) (13,001) 34,837 (d) 34,837 (e) (16,680) 247,774 (13,001) 244,095 244,095 (16,680) . $ 508,072 $ 40,358 $ 722,718 $ 722,718 $ 255,004 Test of 50% Rule: Total Expenditures $ 722,718 Less State Expenditures 15,760 . Total Federal Expenditures $ 706,958 Program selected for testing as major programs: Title I - Grants to Local Educational Agencies 329,416 National School Lunch Program Cluster 193,498 $ 522,914 1 706,598 = 73.97% . . . . 56 - ~.- , , ,- '-' --' '-'+-- ."-"h~; .,- '-'-ie'",",,,,, .il~, , i , . SHIPPENSBURG AREA SCHOOL DISTRICT . NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Note 1. Significant Acconnting Policies . The accompanying Schedule of Expenditures of Federal Awards is a summary of the activity of the District's Federal award programs and presents transactions that would be included in financial statements of the District presented on the accrual basis of accounting, as contemplated by generally accepted accounting principles. . Note 2, Title I - Grants to Local Educational Agencies The Title I - Grants to Local Educational Agencies has been audited in accordance with OMB Circular A-I33, . Note 3. National School Lunch Program Cluster The National School Lunch Program Cluster has been audited in accordance with OMB Circular A-133. . . . . . . 57 ""'- " , -'-Ok, . SHlPPENSBURG AREA SCHOOL DISTRICT . SUMMARY SCHEDULE OF PRIOR YEAR'S AUDIT FINDINGS Year Ended June 30, 2000 . There were no prior audit findings for the year ended June 30, 1999, . . . . . . . . 58 "", ""~"~"'~".' 'd".._..\~._ ~ ~, c2()1T1J. 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