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Home My WebLink About01-06136 '. , C)f - /.p 1.3 b Cu; C l~f4>1 . . IH MEC~IICSBURG AREA SCllOO!.. DISTRICT . FINANCIAL STATEHENTS YEAR. ENDED .:JUNE 30. 200 1 '. . . . . . (}~f.. /7 (l1'CfltllWtllt k (?OJflptlJ1l/. l~ c: .,'-t;(J. - ---'-'-'-'-'-'-'-~------~-- ,., -----.-.-.-,--..-.-.-------~., - ----,-.-,--,-.-.-,~-------~ -----.;;;:~.~~~,;.. ~::-;J.~-,~;..:.:,:.-.~~;:~~:~)~:~.:~::.~~ / . r . - . . . . . . II . ':'~!A---)-, - _,K -, '-i)-;,',',~~,",!? ,"_"'~ 0' _~,",_,-.' ,^" MECHANICSBURG AREA SCHOOL DISTRICT FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 -I---s:~, " -~, --_~1-)"~--:-" :1io IW Cs21~~ C0~ , -"""'- >~:. lit ,. .. I> I> !. ,;!Ii . ..tI :llIl ""'-'(~;,!J!I :#OI~&\3Ce ~Q INDEX Page Number Independent auditors' report 1 - 2 Combined balance sheet - all fund types and account groups - June 30, 2001 3 Combined statement of revenue, expenditures and changes in fund balances - All Governmental Fund Types - year ended June 30, 2001 4 Combined statement of revenue, expenditures and changes in fund balances - actual and budget - All Budgeted Governmental Fund Types - year ended June 30, 2001 5 Statement of revenue, expenses and changes in fund balance/retained earnings - All Proprietary and Non-Expendable Trust Fund Types - year ended June 30, 2001 6 Statement of cash flows - All Proprietary and Non-Expendable Trust Fund Types - year ended June 30, 2001 7 8 Notes to financial statements - June 30, 2001 9 - 24 Supplementary information 25 - 35 'Y~"c:_",~.> -;<~". ,~-- .~I '<" ' - ~, -, "-<. "!. .. GREENAWALT & COMPANY, P.C. CERTIFIED PUBLIC ACCOUNTANTS JAMES E. l.YONS HOWARD R. GREENAWALT CREEDON R. HOFFMAN JOHN H. KLINGLER DEBORAH J. KELLY 400 WEST MAIN STREET MECHANICSBURG, PENNSYLVANIA 17055 (717) 766-4763 FAX (717) 766.2731 &2 WEST POMFRET STREET CARLISLE, PA 17013 (711)243-4822 FAX (7171 ~58.9372 . R, A, GREENAWALT (1956.1983) .-\. A. REIDINGER (RETIRED! C EDWARD ROGERS, JR. INDEPENDENT AUDITORS' REPORT . Board of School Directors Mechanicsburg Area School District Mechanicsburg, Pennsylvania . ,. We have audited the accompanying general-purpose financial statements of Mechanicsburg Area School District as of June 30, 2001, and for the year then ended. These general-purpose financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. " We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Gove~nment Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general-purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general-purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of Mechanicsburg Area School District at June 30, 2001, the results of its operations, and the cash flows of its proprietary fund types and trust funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. . Our audit was conducted for the purpose of forming an opinion on the general- purpose financial statements taken as a whole. The supplementary information is presented for purposes of additional analysis and is not a required part of the general-purpose financial statements of Mechanicsburg Area School District. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general-purpose financial statements taken as a whole. . - 1 - . MEMBERS -- AMERICAN INSTITUTE Of CERTIfIED PUBLIC ACCOUNTANTS - PENNSYLVANIA INSTITUTE Of CERTIFIED PUBLIC ACCOUNTANTS !!"!~~rJ;U_ " ~, "~-, --'1'- ' ,';----1. to'_ ' -- '" ","1 < ",- " ~-, 0_\,_,,_, q_~JJl1' \I ., . <II . 'Ill .. .~ * ,t i'm;l:'lI~, -',~='7 Board of School Directors Mechanicsburg Area School District Mechanicsburg, Pennsylvania In accordance with Government Audi ting Standards, we have also issued reports dated August 29, 2001, on our consideration of Mechanicsburg Area School District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. ~S~.P~f~ ~~AWALT &JCCiM~,C, August 29, 2001 Mechanicsburg, pennsylvania - 2 - " " r~"',, , I -! ~', - " , __' ,''f , "',~ ,- ,,-y^ -.-' -1," ~-" MECHANICSBURG AREA SCHOOL DISTRICT COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2001 Assets and other debits Cash and cash equivalents Investments Due from other funds Accounts receivable Delinquent taxes receivable (net of allowance for uncollectibles, $ 226,184) Inventory Land, buildings and equipment (net of $ 129,561 accumulated depreciation) Amount to be provided for general long-term debt Total assets and other debits Liabilities Payroll and benefits payable Accounts payable Deferred revenue Due to other funds Due to student and other organizations Bonds payable Compensated absences Total liabilities Fund equity and other credits Invested in general fixed assets Fund balances/retained earnings Reserved Unreserved Total fund equity and other credits Total liabilities, fund equity and other credits , ~'-,,-, ,""'^' '.. UN'" ..~_">u . - '--llliill~illIl'tnTIIiW~ " . General Governmental Fund Types Athletic Capital Association Construction Reserve $ 496,595 4,910,905 100,448 911,225 $ 4,338 $ 42,784,456 72,790 $ 6 ,857 , 729. $ 4,338 $42,857,246 $ - 3 - $ 311,977 17,771 o 329,748 $ . 438,556 $1,698,008 760,766 283,770 45,547 $ 42,527,498 42,527,498 $ 6,857,729 $ 4,338 $42,857,246 $ The accompanying notes are an integral part of these financial statements. 443,576 . . 443,576 $ . !I!IIl" .' __. '" < ,~__,_"",."~",,,,,, ,_0_, _~ '-<'~F~',~"'~ ,- 39,440 2,827,531 4,030,198 4,338 4,030,198 4,338 13,115 ., 13,115 . 430,461 . 430,461 443,576 . . ~, _~~~,~__, 'c'v,,",_,,,AL.. ",' J!~~11J.J!I'lm!~t~41lWfWP!~~~~-:;_",;c:,~,_,~rT~~,4'_'~~~'1!":,,,~T~\l'IfiL :,_,_,~':-/ r:r~--' '~'~~" - .~ iI. ~ $ 45.594 '!II ",~~ $ 284.762 ",". i~_o>(,"''''',I~.o'f'';,'"_'''_<.... ~',",' .-~" ,~-J:-Ll ""~",~<<,,,. I,,', ". $ 220.433 $ 145.708 , $ 23,952,056 $ 60,316.361 f,' ,"' , I~ 0.>--' ',-'-;;...,,',' -'i - --, ~'...:-;,. ' -.,,,,,, -,; r '''I: ,,"CO',"'" ""-!H('(-',,~a~~-'-' '-"-}C"-~:- Jt"'t:::,~:_~iPil'Tur"...;:";t'f .. MECHANICSBURG AREA SCHOOL DISTRICT COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 .. General Athletic Association Construction Revenue Local sources State sources Federal sources $ 22,102,272 7,084,393 257,635 $ 100,777 $ 2,104,020 . Total revenue 29,444,300 100,777 2,104,020 Expenditures Instruction Support services Operation of noninstructional services Facilities acquisition, construction and improvement services .. 17,933,732 8,177,121 767,012 147,521 502,415 2,513,932 .. Total expenditures 27,380,280 147,521 2,513,932 Excess of revenue over (under) expenditures 2,064,020 (46,744) (409,912) Other financing sources (uses) Bond proceeds Bond issuance costs Sale of fixed assets Debt service payments Transfers from other funds Governmental fund transfers Food service transfers .. 10,000,000 (149,163) (2,283,970) (118,056) 45,000 (865,132) . Total other financing sources (uses) (2,402,026) 45,000 8,985,705 Excess of revenue and other financing sources over (under) expenditures and other financing uses . (338,006) (1,744) 8,575,793 Fund balances, July 1, 2000 4,368,204 6,082 33,951. 705 Fund balances, June 30, 2001 $ 4,030,198 $ 4,338 $ 42,527,498 ., .. The accompanying notes are an integral part of these financial statements. - 4 - . .'~ , ,,-,'__~,_.,_' ,:"0' ,'l"~--' T ~''''''';''fI < , _~ .-',-- ,~~' -!ImJ!-~,____<~",__",,~,._"", ". JYlm:~;cm'flffi!/!I1-_'iiil,,-q~~;~, J,.." ' ,_ W~m:W~~~ffl!.l!!~P!1;:J~n~-" 1 -~n , '-"'<'" .. II ,lit .. . . l!I II " 'I II Capital Reserve $ 36,210 o Debt Service $ 2 36,210 425,870 425,870 (389,660) (389,660) 820,121 $ 430,461 2 o 2 (3,058,554) 3,104,101 45,547 45,549 45 $ 45,594 :"""-,,~, ~ '-'''-~'';::'_\-'''':->t~',',4;,,,','e;''- ,,.. '-..,'1--[ - .':--~\'I' ' "'"_', "", ~'1 .' T, ,- "- ~ " ,",,~,,~ __r..,' I" ,..-" . '0 -" '.," '~"" "00-1-.", ,,~,,-.,:'-"~" ~~_N," '='1 'ffi't'l' f" - "li'.'e"We'?:-!im'r_'''r'~*'jj'~f:~'-''r' r ~"ill'~*J <lPt~f']'ir"';'"'i ,/I! MECHANICSBURG AREA SCHOOL DISTRICT COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET ALL BUDGETED GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 Actual Revenue Local sources State sources Federal sources $ 22,102,272 7,084,393 257,635 Total revenue 29,444,300 Expenditures Instruction Support services Operation of noninstructional services Facilities acquisitions, construction and improvement services 17,933,732 8,177,121 767,012 502,415 Total expenditures 27,380,280 Excess of revenue over (under) expenditures 2,064,020 Other financing sources (uses) Bonds proceeds Bond issuance costs Sale of fixed assets Debt service payments Transfers from other funds Governmental fund transfers Food service transfers (2,283,970) (118,056) Total other financing sources (uses) (2,402,026) Excess of revenue and other financing sources over (under) expenditures and other financing uses (338,006) Fund balances, July 1, 2000 4,368,204 Fund balances, June 30, 2001 $ 4,030,198 /I! General Fund Budget Variance Favorable (Unfavorable) 48 $ 21,822,145 6,973,059 261,749 $ 280,127 111.334 (4, 114) 48 29,056,953 387,347 17,953,934 8,228,224 796,628 20,202 51,103 29,616 . 503,200 785 27,481,986 101,706 ., 1,574,967 489,053 /I! (2,283,971) (118,056) 1 48 (2,402,027) 1 (827,060) 489,054 . 3,918,969 449,235 $ 3,091.909 $ 938,289 The accompanying notes are an integral part of these financial statements. /I! - 5 - . ",-,,, ',"~-~-, ,,-^-, y__"" -" ,1- -."'T;'"' ,~, """""~" ,-- ~~~~y:> """)bf"",'f,,,, F"">~!"_":,_t~~(il"t!-'(,~'<:~~V'~:V",__,,.J~L,,,, ,~,_"~~~';-"~~--Q.~~~~ #,t. ,. Athletic Association Fund Variance i. Favorable Actual Budget (Unfavorable) $ 100,777 $ 68,400 $ 32,377 " 100,777 68,400 32,377 1/11 147,521 113,400 34,121 147,521 113,400 34,121 ,'t (46,744) (45,000) (1,744) 45,000 45,000 45,000 45,000 o ,. (1,744) 0 (1,744) 6,082 0 6,082 $ 4,338 $ 0 $ 4,338 ill ,'t : :l'~~ij,:l_lR'._ _"",' ~",'_ ";:~,,,. .~.~ .,'" I I "- '~' I".":'-~'" ""c. .'" ,~" '; -;~ ' ,~. '- .',. ''1.,-:," ~-.' ., . MECHANICSBURG AREA SCHOOL DISTRICT STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCE/RETAINED EARNINGS ALL PROPRIETARY AND NON-EXPENDABLE TRUST FUND TYPES YEAR ENDED JUNE 30, 2001 Proprietary Fund Food Service 'Ii Operating revenue Sales Net investment earnings Miscellaneous revenue $ 757,372 Total operating revenue 757,372 !it Operating expenses Food and milk Labor Supplies and services Repairs and maintenance Employee benefits Utilities and fuel Depreciation Scholarship awards 501,007 404,686 43,319 7,443 104,752 57,513 21,124 .. Total operating expenses 1,139,844 .~ Operating income (loss) (382,472) ,ilJ.".' .,,' Nonoperating revenue State sources Meal subsidies Social security and retirement subsidies Federal sources Meal subsidies Donated commodities Interest earned 170,689 51,109 9,592 42,665 19,309 Total nonoperating revenue 293,364 ':W Income (loss) before transfers (89,108) Services contributed by General Fund Equipment purchases by Capital Reserve Fund Scholarship transfers from Activity Fund 118,056 7,126 '. 125,182 Net income 36,074 Fund balance/retained earnings, July 1, 2000 138,144 . Fund balance/retained earnings, June 30, 2001 174,218 The accompanying notes are an integral part of these financial statements, $ - 6 - . ';''''\'!!l!f~,~, ~'7_., L""'':;.:'::C",/,_'~;",m.'",,; ~~ .~.::',: . . . ~ , ~. ,'J~I'~'-_ ~- -. --~'.= .' ,,--- Fiduciary Fund Trust Funds $ 3,424 7,722 11,146 61 7,542 7,603 3,543 o 3,543 12,943 12,943 16,486 62,000 $ 78 ,486 f! ".~' ,. ,. "8 <it \II \II ,. ,. ,. L )'* MECHANICSBURG AREA SCHOOL DISTRICT STATEMENT OF CASH FLOWS ALL PROPRIETARY AND NON-EXPENDABLE TRUST FUND TYPES YEAR ENDED JUNE 30, 2001 Cash flows from operating activities Cash received from users $ Net investment earnings Cash paid to employees for services Cash payments to suppliers for goods and services Cash payments for operating expenses Net cash provided by (used in) operating activities Cash flows for non-capital financing activities State sources Federal sources Transfer to expendable trust fund Net cash provided by (used in) non-capital financing activities Cash flows from investing activities Earnings on investments Purchase of pooled investments Proceeds from pooled investments Net cash provided by (used in) investing activities Net decrease in cash and cash equivalents, July 1, 2000 Cash and cash equivalents, July 1, 2000 Cash and cash equivalents, June 30, 2001 - 7 - . " ~ -7 ;:", --}~'f", ~ ~.,,~. ~7':' "~" "1::--.' " Proprietary Fund Food Service 758,596 (467,284) (488,980) (7,443) (205,111) 59,500 170,689 230,189 9,592 (303,201) 17L 700 (12L 909) (96,831) 103,464 $ 6,633 Fiduciary Fund Non-Expendable Trust $ 3,336 3,336 (3" 401) (3" 401) (3,336) 3"401 65 o o $ o 1-'-'" <Ill. . . . .. !. " . ,. "~~~, MECHANICSBURG AREA SCHOOL DISTRICT STATEMENT OF CASH FLOWS ALL PROPRIETARY AND NON-EXPENDABLE TRUST FUND TYPES (Cont'd.) YEAR ENDED JUNE 30, 2001 Proprietary Fund Food Service Fiduciary Fund Non-Expendable Trust Reconciliation of operating loss to net cash provided by (used in) operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash used in operating activities Depreciation Donated commodities Services contributed by General Fund Decrease (increase) in assets Accounts receivable Inventories Increase (decrease) in liabilities Accounts payable Deferred revenue Due to other funds Compensated absences $ (382,472) $ 3,336 21.124 51,109 120,530 (1,136) (2,401) 512 2,360 (3,078) (11,659) Total adjustments 177,361 o Net cash provided by (used in) operating activities $ $ 3,336 (205 ,111) The accompanying notes are an integral part of these financial statements. - 8 - ,- ,:::_,\"P/1"'--;"~;~"" " -. 1:1 ,0 -//:'1 ',",'- . . ft 'ft . :,;! ,1ft 'Ji II . . :'~, .}; MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 1. Reporting entity Mechanicsburg Area School District is the level of government which has oversight responsibility and control over activities related to public school education. The report includes services provided by the District to residents within the boundaries of the Cumberland County municipalities of Upper Allen Township, Shiremanstown and Mechanicsburg Boroughs. Services include a comprehensive curriculum for primary and secondary education as well as special education and voc;ational education programs. The District receives revenue from local, state and federal sources and must comply with the requirements of these funding sources. Governmental Accounting Standards Board Statement determining the entities to be included in the criteria include basic items such as financial of governing authority, designation of management, influence operations, accountability for fiscal service and special financing relationships. All are included in the reporting entity. Criteria established in Number 14 were used in reporting entity. These interdependency, selection ability to significantly matters, scope of public operations of the District There are no component units that meet the above criteria for inclusion in the reporting entity. However, the District is a participant in three jointly- governed operations, each of which is a separate legal entity that offers educational services to the District and its residents. Each entity serves many school districts f and are therefore I not included in the reporting entity. 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 - provides community college education services and programs. 2. Summary of significant accounting policies The accounts of Mechanicsburg Area School District are maintained on the basis of accounting practices prescribed or permitted by the 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 is as follows: - 9 - , "'":""';_Y;),:"'~';"!; :,!:,~?F:~-':T',;-":'-"',< "1 "'Y__'l':;':'1--~:_i"'- , ~ . I-j'" '1 .. MECHANICSBORG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 . 2. Summary of significant accounting policies (Cont'd.) Fund accounting " The accounts of the District are organized on the basis of fund types and account groups. Each fund type may consist of several different funds, Each fund is a separate entity with self-balancing accounts which comprise its assets, liabilities, fund balance/retained earnings, revenues and expenditures/expenses, as appropriate. . The fund types and account groups utilized by Mechanicsburg Area School District are as follows: Governmental Fund Types lit 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: iJ. General Fund The General Fund is used to account for all financial transactions not accounted for in another fund. Revenues are primarily derived from local property, per capita and occupation taxes, and State and Federal distributions. Many of the more important activities of the School District, including instruction, administration and certain noninstructional services, are accounted for in this fund. i", "" Construction Funds - The Construction Funds are used to account for the proceeds of bond issues and their corresponding expenditures, The fund balances at June 30, 2001 will be used for capital improvements. Capital Reserve Fund - The Capital Reserve Fund is used to account for special capital projects. '. Special Revenue Fund - Special Revenue Funds are used to account for the proceeds of specific revenues that are restricted to expenditures for specified purposes. The Athletic Association Fund is a Special Revenue Fund. . Debt Service Fund - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long- term debt principal, interest and related costs. - 10 - . -, "'~," ).11., ^I, .-<.'{?:'.r-,~,',,~~\-;;.c,;_-,>'':'>~_' ":--- I : :"--:::--.l-'~~'." " ,,_--- ,." ,~" ' " ,- , '-- w l ~,~ . MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 '. 2. Summary of significant accounting policies (Cont'd,) Fund accounting (Cont'd,) . Proprietary Fund Types ProPrietary Funds mann~r similar to account for operations that are financed and operated in a 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. Expendable and Non-expendable Trusts are accounted for in essentially the same manner as Proprietary Funds. Agency Funds are custodial in nature and do not involve measurement of results of operations: .. Trust Accounts Accounts for contributions to and earnings on scholarship funds donated to the District, payments of scholarship funds to selected students, interest and for ,,] District Agency Fund Accounts for programs operated and sponsored by non-school organizations. These funds are separated from student activity funds, Activity Fund - Accounts for programs operated and sponsored by various clubs and organizations within the schools. Activity funds are Agency Funds which are separately accounted for because of legal requirements. '1) Account Groups ACCOunt groups are not funds, They are only concerned with the measurement of financial position and are not involved with the measurement of results of operations. . General Fixed Assets - Accounts for the District's investment in land, buildings, and equipment, General Long-Term Debt - Accounts for general obligation bonds payable and accumulated compensated absences payable in future Years. *' - 11 - *' ~JI,~,.J^,,,,, {>"~"'" ,:-!;..-,h.:'~t'~ ....:1. --"1- ,= - - - ,..,. 'e -," !j: ,~,,~,., ~ .. . . . . iI: ~~ ill .. .. ji '''~~~..o~. MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 2. Summary of significant accounting policies (Cont'd.) Basis of accounting The accounting and financial reporting treatment applied by the different funds is based on their measurement focus, which determines when revenues and expenditures are recognized. Governmental Fund Types These funds are accounted for using the 11 current financial resourcesll measurement focus, which is a modified accrual basis of accounting. Revenues are recorded when susceptible to accrual (both measurable and available), Available means collected within the current period or soon enough thereafter to pay current liabilities. Expenditures are generally recognized when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which is recognized when due. Disbursements for inventory type items and prepaid expenses are considered expenditures at the time of purchase, Proprietary Fund Types The Food Service Fund uses the II flow of economic resources tr measurement focus, which is a full accrual method of accounting. This fund accounts for operations using accounting pronouncements required for private business enterprises, unless those pronouncements conflict with or contradict governmental accounting pronouncements. Donated commodities are inventoried at an estimated cost value when received. Inventories (valued on the first-in, first-out method) are recorded as an asset, and the portion represented by donated commodities is recorded as deferred revenue. Food service equipment is capitalized, with depreciation straight-line method using an estimated useful life of recorded as an operating expense. (computed on the 5 to 12 years) Compensated absences are recognized as operating expenses and the cumulative amount is recorded as a liability within the Fund. Fiduciary Fund Types (Trust and Agency Funds) These funds use a modified accrual method. They are custodial in nature and are not involved with the measurement of results of operations, - 12 - >,,>,,_..!"',~ 9>? "">~;P,,,,">c: I' f.r__,:., ,.'." " !,l~ ,~, "liD r <',--. ".--, e. MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 e 2, Summary of significant accounting policies (Cont'd,) Basis of accounting (Cont'd.) e i; Account Groups Land, buildings and equipment are presented at historical cost or estimated historical cost where the original cost is unknown. Depreciation is not computed on these assets. .... Long-term debt is offset by an amount to be provided by future taxation or other revenue sources. General obligation bonds payable in future years are recorded as District debt. Interest on bonds is recognized when such interest is due. Interest on Capital Appreciation Bonds is accreted annually and added to the amount of bonds outstanding. t::- ~_. I- !~ l: i , I I I;; , ri: ., Compensated absences are presented using the vesting method. Unused vacation leave is minimal. Sick leave is granted as appropriate, and medical evidence may be required, Provision is made annually in the budget for the cost of substitute personnel, There is limited payment for accumulated sick leave at the time of retirement. The gross amount of unused compensated absences is recorded in the General Long-Term Debt group of accounts, General Fund and Food Service Fund. ".: I" Cash and cash equivalents ;.~f For purposes of the Food Service Fund and Nonexpendable Trust Fund statement of cash flows, the District considers all deposits purchased with an original maturity of three months or less to be cash or cash equivalents. Budgets ~, The District adopts, prior to the beginning of each fiscal year, an annual budget for the General Fund and Athletic Fund. A part of this budget process is the adoption of local tax rates, subject to various legal restrictions. The District approves subsequent budget revisions (primarily transfers between expenditure categories), as necessary. Unused appropriations expire at the end of the year, Revenue - Local sources ,. Real estate, residence and occupation taxes are levied as of July 1 with a legal. enforceable claim against the taxpayer and/or property. These taxes are recognized as revenue when received during the fiscal year or soon enough thereafter to be susceptible to accrual, ,. - 13 - II }5~~L ,~. " '_ ,';~:);:-,".c',_","", ,;~ .w,,"C~"'.~-'" ,-~ -; ;, ;.,;_,.:;;:,1 ',- '-:l~:"/. , ,", -"~ - "';'""-' " 11 ,;.~" 1 .. .. .. .. .. ,!,I' ;1; . '. i' ,1IJ; ,. --",,"-~~ .= 0- MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 2, Summary of significant accounting policies (Cont'd.) Revenue - Local sources (Cont/d.) An allowance for unco1lectibles is recorded for taxes levied for the current fiscal year and estimated doubtful of collection within one year after the end of the fiscal year. Other tax revenues, including taxpayer-assessed revenues such as 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. Inter-fund transactions Expenditures by the General Fund for the benefit of other funds are reflected in the respective statements of revenue and expenditures/expenses, based on management's estimates, The District does not attempt to allocate all costs which benefit the other funds due to the difficulties associated with the measurement of such benefits. Utilities, salaries, etc, paid by the General Fund for the benefit of the Food SeJ::vice Fund amounting to $ 118,056 have been reflected on the respective statements of revenue and expenditures for the year ended June 30, 2001, based on management's estimates. Pension plan Substantially all full-time and part-time employees of the District pa~ticipate in a cost-sharing multiple employer defined benefit pension plan. Th~ District recognizes expenditures or expenses equal to its contractually- required contributions, subject to the modified accrual basis of accounting in governmental funds. - 14 - ,,>,~,',~;:-:r,',"_,~,.-- 'r:' :', '. ''i, ,,;,; .- I: L,:~ "h- " -I ---<- ,-'" '1 ' !It , , I !It Ii. !It t;: II ':1 r " i:' I;' r . , i:' , I I' [; .it , I, I"~ I ~' I; ! I' I' ,~ I' I. I; i: I I .. ,. I I I."" v""' I I' I. Ii, I I- i: , 1;-""J!i~1)oomiJ~ .~ l ., . , , - '" ~.- '" - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 3. Cash and cash equivalents Cash and cash savings and institutions. equivalents (other than $ 60 cash on hand) consists of treasury management accounts deposited with Cash and cash equivalents are categorized as follows: checking, financial Carrying Bank Value Balance Insured (FDIC) $ 100,000 $ 100,000 Collateral held in District's name Collateral not held in District's name 693,263 1.386,588 $ 793.263 $ 1.486,588 4. Investments Investments are categorized into these three categories of credit risk: 1. Insured or registered or securities held by the District or its agent in the District's name. 2, Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the District's name. 3. Uninsured and unregistered, with securities held by the counterparty or by its trust department or agent but not in the District's name. The investments, whose market value approximates cost due to the short term nature of the investments, are categorized as follows: Category Carrying Fair 1 2 3 Amount Value U.S. Government Agency Securities $ - $ - $ 5,940,627 $5,940,627 $ 6,073,068 Mutual Fund 47 47 47 $ 0 $ 0 $ 5,940,674 5,940,674 6,073,115 Pooled investment accounts 42,408,297 42,405,550 Total investments $48,348,971 $48,478,665 The types of authorized investments are Investment policies followed during the year categorization of investments shown above. limited by State regulations. did not significantly alter the - 15 - . .,. "--'-'" '-~':" ~:.. ,I ~"-".' f-:":'; - ,__ < __~ p_ "1 . - ., MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd,) JUNE 30, 2001 . 5, Delinquent taxes receivable Delinquent taxes receivable at June 30, 2001 consist of the following: Delinquent taxes receivable held by delinquent collectors Less: allowance for uncollectibles Real Estate Personal Total $ 329,520 $ 335,220 $ 664,740 98,800 127,384 226,184 $ 230,720 $ 207,836 $ 438.556 . . Net Delinquent taxes receivable 6, Accounts receivable General Fund accounts receivable at June 30, 2001 consist of the following: . Subsidies Due from other governmental units Investment income Other $ 165,832 730,741 6,486 8,166 $ 911.225 II 7. Land, buildings and equipment Th~ schedule below presents estimated historical cost of land, buildings and equipment. These amounts were obtained, in the most part, from a valuation report prepared as of May, 2001 and updated by management to June 30, 2001, It includes equipment held in the Food Service Fund. General fixed assets July 1, 2000 Additions Disposals June 30, 2001 $ 416,983 $ 189.000 $ $ 605,983 1.528,196 1,528,196 12,787,273 140,350 12,927,623 7,338,553 1,551,701 8,890,254 $ 22 , 071. 005 $ 1. 881. 051 $ 0 $ 23,952.056 't! Land Land improvements BUildings EqUipment . Fo~d Service Fund fixed assets Furnishings and equipment Accumulated depreciation $ 247,600 $ 7,126 $ $ 254,726 (108,437) (21,124) (129,561) .. Totals $ 139,163 $ (13.998)$ o $ 125,165 - 16 - . f~J)ijm~- <":-:.~"':'" ;;:':"~-- '...,--, ,-' Ll_, ",. r'_U:".': ,~ ,- ~ II. .. II 1\ ,. ....r, "mil <II 'II <II (:;,;Wf:-"~~ . MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 8, Bonds payable A summary of changes in bonds payable for the year ended June 30, 2001 is as follows: General Obligation Bonds/Notes New Issuance Proceeds Beqinninq Interest Accretion Series of 1992, General Obligation Bonds 6.23%, Maturing 9/1/2005 $ 5,087,019 $ 295,768 $ Series of 1998, General Obligation Bonds 4.0% to 4.6%, Maturing 2/15/2013 9,495,000 Series A of 1998, General Obligation Bonds 3.9% to 4.3%, Maturing 9/1/2009 3,475,000 Series of 2000, General Obligation Bonds 5.3% to 5.5%, Maturing 8/15/2016 4,995,000 Series A of 2000, General Obligation Note, Emmaus Bond Pool, variable Interest, not to Exceed (15.55%), Maturing 9/3/2002 15,000,000 Series B of 2000, General Obligation Note, Emmaus Bond Pool, Credit Facility (I) Series C of 2000, General Obligation Note 4.5% variable, Maturing 10/1/2016 5,000,000 Series of 2001, General Obligation Bonds 3.95% to 5.00%, Maturing 8/15/2019 10,000,000 295,768 $10,000,000 $ 1,350,000 $51,997,787 10,000,000 $43002,019 $ (1) Series B of 2000, General Obligation Note, Emmaus Facility will not be used unless necessary to support the General Obligation Note repayment. The amount of the $ 15,-371,590. No withdrawals occurred during 2000-2001. - 17 - ~~:':;>':'~-::"~-",;;;?\"r.'t~,,,"/ .^-: --I,!, , " ~':""';:~j' _c, Repayments Ending $ 1,025,000 $ 4,357,787 40,000 9,455,000 285,000 3,190,000 4,995,000 15,000,000 5,000,000 Bond Pool Credit Series A of 2000, credit facility is '1" - r .. . <II . . " . . . . tll'n _ ~ ,', MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 8, Bonds payable (Cont'd,) ".-. -:,-r:;:<-".:<;~:, "".~,'n- The Series of 1992, General Obligation Bonds consist of Capital Appreciation Bonds. Interest accreted through the March 1 payment date of each year on the Capital Appreciation Bonds is added to the carrying value, The bonds are due semi-annually through September 1, 2005. The Series of 1998, General Obligation Bonds are due semi-annually through February 15, 2013, The District is planning to use these proceeds to construct a new middle school and renovate the current middle school and high school. The Series A of 1998, General Obligation Bonds are due semi-annually through September 1, 2009. The proceeds of these bonds were used to refund the Series of 1993 General Obligation Bonds. The Series of 2000, General Obligation Bonds in the amount of $ 4,995,000 are due semi-annually through August 15, 2016. Proceeds of the issue are currently being used to construct and equip a new middle school, and renovate existing elementary and secondary school facilities, Series A of 2000, General Obligation Note in the amount of $ 15,000,000 is n.onelectoral debt issued through Emrnaus General Authority. The Note is due September 3, 2002. No principal repayment is due until maturity, The District also issued Series B of 2000, General Obligation Note in the amount of $ 15,371,590 as a credit note made by Bayerische Hypo-und Vereins Bank, AG. There were no draws outstanding under this credit facility at June 30, 2001. The credit note will be utilized only in the event of default or inability to repay the principal of Series A of 2000, General Obligation Note, Proceeds of Series A of 2000, General Obligation Note will provide funds toward planning and construction of a new middle school, renovation and expansion of the high school, capitalized interest and pay the remarketing costs of issuance, Series C of 2000, General Obligation Note in the amount of $ 5,000,000 is none1ectoral debt issued through the Ernmaus General Authority's Variable Rate Demand Bond program, The Note is due October, 2016. Proceeds will be used toward planning and construction of a new middle school, capitalized interest and pay issuance costs. The Series of 2001, General Obligation Bonds are due semi-annually through August 15, 2019, Proceeds of the issue are currently being used to renovate the high school and pay costs of issuing the bonds. - 18 - P-'," '. _:-1. ~-'I~\:.n:<'_,_' ,----' I,,'" :,'",';-'--t-o'- , .< 11 "Tlf~--"~ ,r. ., MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd,) JUNE 30, 2001 . 8. Bonds payable (Cont'd.) Future maturities and debt service requirements are as follows: Series of . 1992 Capital Appreciation Year Total Principal Interest Bonds (1) 2001-2002 $ 5,164,090 $ 320,000 $ 3,819,090 $ 1. 025, 000 2002-2003 18,290,531 15,330,000 1,935,531 1,025,000 ,. 2003-2004 2,877,897 345,000 1,507,897 1.025,000 2004-2005 2,878,702 360,000 1.493,702 1,025,000 2005-2006 2,883,830 430,000 1,478,830 975,000 2006-2019 42,786,272 30,855,000 11,931,272 Totals $ 74 ,881. 322 $ 47,640,000 $ 22,166,322 $ 5,075,000 . (1) ReflE!cts final maturity value of Capital Appreciation Bonds. 9. Contribution to Food Service Fund III "Contribution to Food Service Fund" for the year ended June 30, 2001 includes the following estimated expenses charged to the Food Service Fund and paid through the General Fund: " 'of , ,~, Custodian wages Administrative salaries Employee benefits Supplies Utilities and fuel Social security subsidy Retirement subsidy $ 13,579 38,028 5,284 5,570 58,069 (1,974) (500) $ 118,056 ~ In addition, equipment purchases totaling $ 7,126 were paid by the Capital Reserve Fund. " r:; 10, Inter-fund transfers The combined statement of revenue and expenditures for the year ended June 30, 2001 includes the following inter-fund transfers and contributions from the General Fund to the following funds which are recorded in the General Fund as budgetary expenditures: Food Service Fund Athletic Association Debt Service Fund $ 118,056 45,000 2,238,970 $ 2,402,026 - 19 - . ~~~. 0," -,.. C:-."J.<;' '<~\ ;'<",_ ".,~..: c,..,":r-.- ","c-' 11'. '-' ":>;~'''''I''''''- ;'1:-:,'...:- "',' , ,~, .~ '],1 ~ ~. , l~ . - "~~ ~~ ". - \II MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 \II 11, Compensated absences . The General Long-Term Debt account group includes $ 8,661,876 representing the estimated gross amount of compensated absences, primarily sick leave, payable to all District employees if they were to use this accumulated leave prior to retirement. It was calculated by multiplying each employee's accumulated leave time by the current per diem rate, If an employee retires with unused compensated absences, the payout policy is as follows: ,. Emergency and personal No payout, Vacation (Administrative personnel) Paid at current per diem rate. ., Sickness Paid at the per diem rate paid to a substitute teacher at time of retirement, based on a formula inVOlving a percentage of accumulated sick days and years of service, The maximum is 50% of accumulated sick days after 20 years of service for the year ended June 30, 2001. 11 A summary of changes in compensated absences for 2000/2001 is as follows: July 1, 2000 Net Change June 30, 2001 Administrators and support staff $ 1.416,300 $ (114,359) $ 1,301,941 Teachers 7,245,576 (228,943) 7,016,633 $ 8 ,661. 876 $ (343,302) $ 8,318,574 Food Service Fund $ 22,776 $ <11. 659) $ 11. 117 12. Pension plan If The District contributes to The Public School Employees' Retirement System (the System), a governmental cost sharing multiple-employer defined benefit pension plan, The plan is under the provisions of the PSERS Code (the Code), as amended. The plan provides retirement and disability, legislative mandated ad hoc cost-at-living adjustments, and healthcare insurance premium assistance to qualifying annuitants.. The System issues a comprehensive annual financial report that includes financial statements and required supplementary information for the plan, A copy of the report may be obtained by writing to PSERS, P.Q, Box 125, Harrisburg, PA 17108-0125. II 41 The contribution policy is established by the Code and requires contributions by active members and employers. 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 ot employers are based upon an actuarial valuation. - 20 - II ,--~"'W,,"- ij,;-;: ':"":~,",F'W?~._' ,..-:'-,'c,>;<-', ,,', "I'"" ".c,."", I~'::~-~:--.' , _I:, ;,'.I~:"~' -,' '- ", '., " , :~;, ~ , e. MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 . 12, Pension plan (Cont'd,) . For the fiscal year ended June 30, 2001 the employer contribution rate was 1.94 percent of covered payroll, composed of 1.64 percent for pension benefits and .30 percent for healthcare insurance premium assistance. The District's contributions to PSERS for the years ending June 30, 2001, 2000, and 1999 were $ 315,013, $ 706,207, and $ 904,239, respectively. Those amounts are equal to the required contribution for each year. 13. Post-employment benefits other than pension benefits ,. The District does not offer any post-employment benefits to retired employees other than pension benefits as discussed in Note 12. The District will. however, allow retired employees to remain in its group medical insurance plan upon payment of the cost of such coverage by the retired employee, ,'t 14, Operating leases The District is obligated under various equipment, vehicle and modular classroom lease agreements at June 30, 2001. The following is a schedule of future minimum rental 'payments required under the operating lease agreements. II Year Ending June 30 2002 2003 2004 2005 $ 99,437 70,998 15,198 6,898 Total minimum payments required $ 192,531 15, Tax collections Property Tax The District's property tax is levied each July 1 on the assessed value as of that date as maintained by Cumberland County for all nonexempt real property located in the School District. The assessed value of the roll upon which the levy for the 2000-2001 year was based approximated $ 95,156,820, The tax millage rate assessed for the year ended June 30, 2001 was 154 mills ($ 15,40 per $ 100 valuation) , .. Real estate taxes attach as an enforceable lien on property on July 1. The taxes are collected by an elected tax collector. Taxes paid through August 31 are given a 2% discount. Taxes paid after October 31 are charged a 10% penalty, Delinquent real estate taxes are collected by Cumberland County, - 21 - . ;~- '" ^ ,_",c,~"""","_" """ ,', ),.-,-"'" " ;,"0<"_ ^','""__ '-'c-;::_c;; ....:Ik ':_' . ~_"'~I"7""''- i._ "-,,,,',,~.. <-.. - ~'-~_" , ,- ~I:., ,,' ~~- ;1' -~" -<' . ~ e. :I . .. .' . . . ;Ii MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd,) JUNE 30, 2001 15, Tax collections (Cont'd,) Occupation, per capita and residence taxes Occupation taxes are assessed based on employment classifications determined by Cumberland County. They are levied July 1 at a rate of 110% of assessed classification value. Per capita and residence taxes are levied as of July 1 at a flat rate of $ 5 each and are assessed based on tax rolls maintained by Cumberland County. Occupation, per capita and residence taxes collector. Taxes paid through July 31 are after October 31 are charged a 10% penalty. and residence taxes are collected by a collector. are collected by an elected tax given a 2% discount. Taxes paid Delinquent occupation, per capita Board appointed delinquent tax 16, Fund equity Fund balance reservations Reservations of fund balances of Governmental Funds are established to either satisfy legal covenants that require a portion of the fund balance be segregated or identify the portion of the fund balance that is not appropriate for futur~ expenditures. Specific reservations of fund balance accounts are summarized below. Reserve for construction Bond proc~eds and earnings on invested proceeds are reserved for funding the various construction and renovation projects of the District and are not to be used in the ordinary course of the District's operations. Reserve for debt service The Series C of 2000 General Obligation Note charges interest on the outstanding balance at a variable rate. The amortization of payments under this note include a rate stabilization component which allows the District ease in bUdgeting and provides a funding cushion should rates rise. The amount transferred as a rate stabilization payment is reserved for payment of interest under terms of the note agreement and is not to be used to pay principal or in the ordinary course of the District's operations until the issue is repaid. Reserve for scholarships Amounts included in the District's expendable and non-expendable trust funds are reserved to provide funding to scholarship payouts and are not to be used in the ordinary course of the District1s operations. - 22 - -l.__:,..;lIl,:~"-,,,,,~," -' "-',- "~",,-'(", _;?<' ,..,_.,",,' ,~"~, <",' -'.' ->"'c":" '~I ' . , ,.-__,1.,; -,""'" -- "."-I"'~' l'" ,~- ,- ,\ ~. . '. ,. . ,. f fi . ,II $, 'i~ " II ,. "'~''''''~'~;''' -,.--, MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 17. Budget amendments During April and June, 2001, the School Board amended previously approved budgeted reVE!nues and expenditures to provide for the purchase of additional instructional supplies and capital purchases as follows: Revenues Expenditures Budget as originally adopted, net of budgetary reserve allocation of $ 45,000 for expenditures April, 2001 budget amendment June, 2001 budget amendment $ 28,991,315 65,638 $ 29,358,375 65,638 460,000 Budget as amended $ 29,056,953 $ 29,884,013 18. Risk Management The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employeesj and natural disasters. The District maintains commercial insurance coverage covering each of those risks of loss. Management believes such coverage is sufficient to preclude any significant uninsured losses to the District. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years, For State unemployment compensation laws, the District is self-insured, which is a commOn practice for local governmental units. Any unemployment claims are paid by the District on a quarterly basis as incurred. The District incurred $ 520 in unemployment claims during 2000-2001. No claims were outstanding at June 30, 2001. 19, Commitments and contingencies The District's contract with its teaching staff expired June 30, 2001 and is currently in negotiation. In the normal course of business, the District is subject to legal disputes and claims, The District does not anticipate any material losses from any pending Or threatened litigation. In the normal course of preparing for the subsequent school year, the District has awarded bids for various supplies, fuel contracts, etc. No major commitments in excess of routine requirements have been 'made by the District. The District is audited by the Commonwealth of Pennsylvania, Department of the Auditor General. Findings, if any, from these audits could result in the repayment of funds, or the receipt of additional funds, - 23 - , '~---; ".,y--,,> ~-/!,g'"" < .-, J',,- - :--, ;,<:,--tJ :.\,,,,,,-, .- - - ':J:<, '"~ '1': , - ~."..." ~ '" MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 '" 19, Commitments and contingencies (Cont'd,) . The District participates in numerous state and federal grant programs which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and review by the grantor agencies: therefore, any findings or adjustments by the grantor agencies could have an effect on the recorded grants receivable and/or deferred grant revenues and on the related grant revenues and expenditures. '" The District is contingently liable for outstanding lease rental debt of Cumberland-Perry Vocational-Technical School beginning in 2001-2002. The District will provide two payments to the Vo-Tech totaling $ 236,870. 1# The District has undertaken several construction and renovation projects during the year, Renovation of the High School and construction of the Middle School were in process at June 30, 2001. Construction commitments under these contracts at June 30, 2001 were as follows: High School renovation Middle School construction $ 16,045,797 21,330,917 Total $ 37,376,714 ,$ The District has issued general obligation bonds to fund these projects as more fully described in Note 8, II In addition, in connection with construction of the Middle School, the District Was required by the local municipality to obtain several letters-of- credit to ensure completion of required roadwork and traffic signal installation totaling $ 683,638, 20. New accounting pronouncements ,~ During the year ended June 30, 2001, the District implemented Government Accounting Standards Board (GASB) Statement No. 33, "Accounting and Financial Reporting for Nonexchange Transactions", The effect of GASB 33 had no impact on revenu~ or fund balance of the District. However, assets and liabilities were both increased for revenues meeting the definition of Nonexchange transactions. i:'dJ " [-:i " I-:i '-'I :;', U i'i [:1:. ['I fi During the year beginning July 1, 2002, the District will be required to implement GASB 34, "Basic Financial Statements - and Management's Discussion and AnalYSis - for State and Local Governments". The effect of GASB 34 will significantly affect how the District presents its financial statements, The District receives information from various sources, including the Pennsylvania Department of Education, and expects to be ready to satisfactorily implement this accounting standard. - 24 - i_i i '. j-, ,~ ~,>y ," "0'_, ""-'~, ;'-;-~."-- '",--,' yj. ~,' "" :1' .; I-,;~ ,- ~~-' !' - -~ '~"'-','" '" , . '. . ,II ,II . ,--, '"i " '. ,,; , , . . , :;:&i!iil\'IW!,~L,.">_,,, v' ','_" ,,',._,..,' -ii" -, ,~'" ^^,-,- -'^ " "~.:- ."iL! .;'....~l~:>: SUPPLEMENTARY INFORMATION '. " "IT' - 'l('ll ., . . i. , '! ...,<1 ill '" ill II . . 1-:: ;"~:1l~~1 " r" .--"~ '.. "^' MECHANICSBURG AREA SCHOOL DISTRICT GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2001 Revenue Local sources Current real estate taxes Public utility realty tax Current per capita taxes Current Act 511 per capita taxes Occupation privilege taxes Current occupation taxes Real estate transfer taxes Earned income taxes Delinquent taxes, all levies Tuition and other payments from patrons Earnings from temporary deposits and investments Student activities Rent fr?m School and other facilities Community services activities Miscellaneous revenue Total local sources State sources Basic instructional subsidy Homebound instruction Vocational education School performance incentives Special education Transportation Rentals and Sinking Fund payments Driver education Health services Social security Retirement Read to succeed Tuition - COUrt placed students Link to learn Alternative education grant Miscellaneous grants ~-'_'''' "",,,",_:"'}k'."<:C-' ",'---,- "I :,,~,,~ -..: ~'!;.::liJ,;~-:::'; -,-' Variance Favorable Actual Budget (Unfavorable) $ 14,410,054 $ 14,409,287 $ 767 64,479 91,000 (26,521) 74,367 75,354 (987 ) 74,367 75,354 (987) 80,180 74,667 5,513 3,150,584 3,253,646 (103,062) 386,666 375,708 10,958 2,499,365 2,394,729 104,636 529,468 445,000 84,468 21,269,530 21,194,745 74,785 8,340 12,500 (4,160) 642,263 493,000 149,263 13,584 13,800 (216) 28,286 11,900 16,386 137,983 95,000 42,983 2,286 1,200 1,086 832,742 627,400 205,342 22,102,272 21,822,145 280,127 4,354,514 4,316,371 38,143 74 74 18,080 16,849 1,231 6,837 6,837 1,327,660 1,246,793 80,867 282,145 250,000 32,145 74,594 74,594 6,030 7,000 ( 970) 90,045 85,000 5,045 657,100 665,781 (8,681) 153,677 173,725 (20,048) 46,872 56,250 (9,378) 15,180 15,000 180 11,500 (11,500) 34,085 29,859 4,226 17,500 17,500 7,084,393 6,973,059 111,334 - 25 - -- -'II' 1 ~. ~. ''ii.fC' '~~--<'''~' j', ce. '. .. .. cj. tIl I; '" . \lit " i.;:m;-.:rV' '"~< MECHANICSBURG AREA SCHOOL DISTRICT GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (Cont'd,) YEAR ENDED JUNE 30, 2001 Revenue Federal sources MLK Service Initiative IDEA Part B Title I Title II Title VI Drug free schools Other grants Total revenue Exnenditures: Regular programs Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Other pU~chased services Supplies Property Other objects Special programs Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Purchased property services Other pU~chased services Supplies Property Other objects vocational education programs Other pU~chased services ,- ~ ~"-, ""..,,4':"_'f' ,,-^,,' ,>"' ^ , .~ j"'-- I. 77_""'''1 " Variance Favorable Actual Budget (Unfavorable) $ 3,500 $ $ 3,500 95,898 95,898 89,028 89,028 12,256 10,007 2,249 44,473 11,894 32,579 12,480 14,643 (2,163 ) 40,279 (40,279) 257,635 261,749 (4,114) 29,444,300 29,056,953 387,347 10,570,811 2,247,670 10,571,366 555 2,249,527 1,857 102,034 2,084 63,185 539 525,760 1,116 38,584 50 56,475 1 13,606,931 6,202 1,902,435 280 494,469 (951) 815,322 3,905 5,200 60 98,000 1,846 34,723 3,252 9,800 38 10,436 99 3,370,385 8,529 219,586 0 99,950 62,646 524,644 38,534 56,474 13,600,729 1,902,155 495,420 811,417 5,140 96,154 31,471 9,762 10,337 3,361,856 219,586 - 26 - ~ "" 'I . MECHANICSBURG AREA SCHOOL DISTRICT GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (Cont'd.) YEAR ENDED JUNE 30, 2001 . Expenditures . "'II Other instructional programs Personnel services - salaries $ Personnel services - employee benefits Purchased professional and technical services Purchased property services Other purchased services Supplies . Adult education programs Personnel services - salaries Personnel services - employee benefits Community College education programs Other purchased services ," Total instruction 4i~ Support services - pupil personnel Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Other purchased services Supplies Other objects :.-1 :1111 Support services - instructional staff Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Purchased property services Other purchased services Supplies Property Other objects , , , .11 ... -!!Sf - 27 - Iii Actual Budget 226,143 54,316 $ 229,568 54,333 1,980 7,003 14,597 84,198 388,237 2,160 7,042 15,000 84,253 392,356 o 1,000 130 1, 130 363,324 363,546 17,933,732 17,953,934 684,526 135,445 684,594 136,387 39,712 3,560 28,405 572 892,220 43,384 3,620 28,487 600 897,072 782,858 173,332 785,019 173,364 10,499 5,523 2,714 189,371 376,895 53,197 1,594,389 21,436 5,700 2,750 189,375 379,200 53,197 1,610,041 Variance Favorable (Unfavorable) $ 3,425 17 180 39 403 55 4,119 1,000 130 1,130 222 20,202 68 942 3,672 60 82 28 4,852 2,161 32 10,937 177 36 4 2,305 15,652 " i. :- !,! !i. ii' " " ii Ii " I: :: F" , !:,.- ri'i8 il l. ! " , ,1!!I1 :-:' I' " ( I' I, " ii: !,;' i' , f; , I:' i I;' t: U :* I:: , , I,:: I':' !' i',. , , i_~ !; , r ~ , It i' i'- "-'~-Ziji,~~, ' ~~~ MECHANICSBURG AREA SCHOOL DISTRICT GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (Cont'd.1 YEAR ENDED JUNE 30, 2001 Expenditures Support services - administration Personnel services - salaries $ Personnel services - employee benefits Purchased professional and technical services purchased property services Other purchased services Supplies Other objects Support services - pupil health Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Other purchased services Supplies Other objects Support services - business Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Other purchased services Supplies Other objects Operation and maintenance of plant services Personnel services - salaries Personnel services - employee Purchased property services Other purchased services Supplies Property Other objects Actual Budget Variance Favorable (Unfavorable) 1,168,102 244,322 $ 1,168,123 244,364 $ 21 42 180,950 17,081 52,659 38,708 41, 989 1,743,811 181,204 22,200 52,745 38,787 42,020 1,749,443 254 5,119 86 79 31 5,632 290,116 84,813 293,123 84,931 3,007 118 980 893 7,013 372 384,187 1,150 925 7,046 400 387,575 170 32 33 28 3,388 226,217 62,777 226,251 62,925 34 148 18,707 4,109 29,578 8.640 350,028 19,093 5,166 29,593 8,670 351,698 386 1,057 15 30 1,670 759,379 761,571 2,192 benefits 236,886 236,968 82 559,127 565,309 6,182 55,066 55,783 717 499,936 503,388 3,452 17,060 17,100 40 25,278 25,400 122 2,152,732 2,165,519 12,787 - 28 - '''-'''_o;'''''''-'?'-,- " : '." ,-; I ~:: ~ ' - ,,'-' f_"1" -1~':, '--TI ~'.... 7t'''''~'~"'''''~''-'''''-'''~'' '8 '8 MECHANICSBURG AREA SCHOOL DISTRICT GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (Cont'd,) YEAR ENDED JUNE 30, 2001 Variance Favorable Expenditures Actual Budget (Unfavorable) \8 Student transportation services Personnel services - salaries $ 21,559 $ 21,626 $ 67 Personnel services - employee benefits 3,515 3,549 34 Other purchased services 884,226 888,145 3,919 Supplies 50,582 50,600 18 \8 Property 550 550 Other objects 3,426 3,600 174 963,308 968,070 4,762 Central services Supplies 5,650 8,000 2,350 '8 Other support services Other purchased services 90,796 90,806 10 Total support services 8,177,121 8,228,224 51,103 '11 Student activities Personnel services - salaries 356,604 356,606 2 Personnel services - employee benefits 44,247 47,406 3,159 Purchased professional and technical services 10,300 10,300 Other purchased services 20,045 20,113 68 ill! Supplies 30,109 30,982 873 Property 11,915 12,000 85 Other objects 39,810 39,900 90 513,030 517,307 4,277 Community services ,ill Personnel services - salaries 91,859 112,112 20,253 Personnel services - employee benefits 23,121 23,169 48 Purchased professional and technical services 121,961 122,000 39 Other purchased services 7,895 10,000 2,105 Supplies 1,125 2,400 1,275 . Other objects 8,021 9,640 1,619 253,982 279,321 25,339 Total operation of noninstructional services 767,012 796,628 29,616 'II - 29 - I ~' : ',. , :;,~~,"",,",'<Ii!Ilil ,,,,,,;.,,,> , " ',::,:,',}:,,""':~,"'?:7,., ,'.-- I "i., "~ ,'-::-_''I'-,,!'" !{'" .~~"'i'T';::~"~'i ".,"",. '-, ~ -- ill, \I MECHANICSBURG AREA SCHOOL DISTRICT GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (Cont' d. ) YEAR ENDED JUNE 30, 2001 ExpEmditures Actual (/I Facilities acquisitions, construction, and improvement services ~urchased property services ~roperty 41,400 461,015 502,415 $ " Total expenditures 27,380,280 Exc~ss of revenue over expenditures 2,064,020 .. Other financing sources (uses) Sond proceeds Sond issuance costs Sale of fixed assets Debt service payments Transfers from other funds Governmental fund transfers Food service transfers (2,283,970) (118,056 ) '. Total other financing sources (uses) (2,402,026) 'lfii Excess of revenue and other financing Sources over (under) expenditures and other financing uses (338,006) Fund balances, July 1, 2000 4,368,204 i~ Fund balances, June 30, 2001 $ 4,030.198 . i. See accompanying report on supplementary information, - 30 - . ::_:1., ~;.~~L..". ,~,._ "("" .'<"___,"."_' _~___,"'''''~_ . I. """,~, __~1 __ ,- ,', Budget $ 42,100 461,100 503,200 27,481,986 1,574,967 (2,283,971) (118,056) (2,402,027) (827,060) 3,918,969 $ 3.091.909 variance Favorable (Unfavorable) $ 700 85 785 101,706 489,053 1 1 489,054 449,235 $ 938,289 ~ ~~ . - Assets Investments Accounts receivable Total assets Liabilities and fund equity Liabilities Due to general fund Accounts payable Total liabilities Fund equity Reserved fund balances 1'- '.' ~ '^ -"'-<'-' """, "~~;\';'--'cr''''"~ r-~liJllr"ill"-ijjif~r~rW~~w;,w;;';';"-""1it(rYl~'~'m~Uit'1[JIf_';M7~~~t1-:;('i;:<*" .t1 MECHANICSBURG AREA SCHOOL DISTRICT COMBINING BALANCE SHEET ALL CONSTRUCTION FUNDS JUNE 30, 2001 tit GOB Series GOB Series GOB Series 1993 1998 2000 ~. $ $ 9,975,923 $ 3,797,430 72,790 $ 0 $ 10.048 , 713 $ 3,797.430 . $ $ $ 15,392 226,763 . 0 0 242,155 0 10,048,713 3,555,275 $ 0 $ 10,048,713 $ 3,797"130 .: Total liabilities and fund equity \Ii \I . See accompanying report on supplementary information. . ~S~_ '''. - 31 - .. "'_",IV;"_, ,._,~ '!":'if-~,~ " ,,_."~,,"~< ~, , 1l~!'!!1~'~1J.n'??'w~J~_~~_ ~~mL ""' < .F:~l!I_I~:!!','m_ ,. "'"", 'C~_'li[it ':'1' ,., '. . Var~able GON S~ries A Emmaus Bond GOB Series Of 2000 Pool, 2000 2001 Total ,. $ 5,152,895 $ 13,903,234 $ 9,954,974 $ 42,784,456 72,790 $ 5,152,895 $ 13 ,903,234 $ 9,954,974 $ 42,857,246 . $ $ 2,379 $ $ 17,771 85,214 311,977 '. 0 87,593 0 329,748 5,152,895 13,815,641 9,954,974 42,527,498 '" $ 5,152,895 $ 13,903,234 $ 9,954,974 $ 42,857,246 ~j ~} . .lI! ',ij ~. ;f,>:~~.-r:~ : ,,- ,",' ',",.' "/,,""_~,'~f<<'C__ ~ '-, 1-"'" ",. ,.< I'~"";""'-' '.. ,^- ,--." ~ " 1-" ,-,,", """""~~'-"~"',<'-'. "",-",,~-,,'''''''''~'-' '0"' ,~.""'<" '",<Y ~-~~J''''''''flt!'''~l.''''T - r: r "r-:rrn''';~ "',,-T" . MECHANICSBURG AREA SCHOOL DISTRICT COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL CONSTRUCTION FUNDS YEAR ENDED JUNE 30, 2001 ., GOB Series GOB Series GOB Series 1993 1998 2000 Revenue and other financing .. sources Investments income $ 1,089 $ 584,325 $ 253,146 Bond proceeds Total revenue and other financing sources 1,089 584,325 253,146 . , Expenditures and other financing uses Facilities acquisition, construction and improvement services 25,666 1,187,102 Other financing uses 114,799 Total expenditures and other ., financing uses 25,666 0 1,301,901 Excess of revenue and other financing sources over (under) expenditures and other financing uses (24,577) 584,325 (1,048,755) tiJ, Fund balances, July 1, 2000 24,577 9,464,388 4,604,030 Fund balances, June 30, 2001 $ 0 $ 10,048,713 $ 3,555,275 ., .. ." .' See accompanying report on supplementary information. - 32 - . ---~ ~.- _,,~.~",)i'J;nl ~[lII.!1 ~__ , '4' -. .'r:JlI._ _" ~_ ""'''"", _0"__>_ :'1l;~.~,-'1f~~!~~~ -,,"=,<,.?,- i ,,~>,.~m~~~~~I'~L~l[,.:' >: , ..~ -' ~..~.._~' ....-' -"< ,., '<- ~"- It .. Variable GON Series A Emmaus Bond GOB Series of 2000 Pool, 2000 2001 Total II $ 288,426 $ 872,897 $ 104,137 $ 2,104,020 10,000,000 10,000,000 .. 288,426 872,897 10,104,137 12,104,020 74,351 1,301,164 675,982 149,163 2,513,932 1,014,295 \I 74,351 1,977,146 149,163 3,528,227 ,11; 214,075 (1,104,249) 9,954,974 8,575,793 4,938,820 14,919,890 o 33,951, 705 $ 5,152,895 $ 13,815,641 $ 9,954,974 $ 42,527,498 :';1 I"~: f"j )'. (Ii!! .lI$ !. I"': , 't0~;.. !~J~_ ~ _ ."~'+"- ' '",I": ',IT""p'C'."" 1, n ., FO.--'''''''''''~'''' ,-" . ,"'" -~., '. . MECHANICSBURG AREA SCHOOL DISTRICT SPECIAL REVENUE FUND - ATHLETIC ASSOCIATION STATEMENT OF REVENUE AND EXPENDITURES YEAR ENDED JUNE 30, 2001 i. i :Gl Revenue Season tickets Football gate Jr, High gate Basketball gate Soccer gate Volleyball gate Wrestling gate Program sales Program ads Lost equipment Golf tournament Concession stand District playoff General Fund Miscellaneous $ 11,255 32,069 797 14,905 4,044 3,593 4,602 1,151 4,731 1,427 5,900 4,074 7,608 45,000 4,621 145,777 19,876 10,189 22,164 5,889 4,385 4,953 8,982 7,912 4,974 2,878 4,576 2,582 4,082 1. 589 9,215 5,380 6,615 1,268 1,326 310 17,380 142 854 147,521 $ (1. 744) 'Gl ~ l~; , ,; r' , '. Total revenue !~ !1 , Expenditures Football Jr. High football Girls' sports Basketball Wrestling Swirmning Baseball Soccer Track Golf Golf tournament Cross country Volleyball Tennis District III and state playoffs Training supplies Dues, subscriptions and meetings Purchased services Miscellaneous Utilities Jr, High other sports Concession stand Travel and gas 'II .iIl ~'. 1, ifl [,,-: , y:: r ~- ' r 'e Total expenditures " Excess revenue (under) expenditures See accompanying report on supplementary information. - 33 - . 1t!l(-!' -, '. 0, ' Ii ""~:'; '-.'1"'- ~ . II ~ I :"~!' -~1t""-'~"":r:' r. ' ," " ,~ . MECHANICSBURG AREA SCHOOL DISTRICT COMBINING BALANCE SHEET EXPENDABLE, NON-EXPENDABLE TRUST AND DISTRICT AGENCY FUNDS JUNE 30, 2001 it Fiduciary Funds Total Agency Fund Total Trust Expendable Non-expendable Trust District And Agency II Trus t Trust Funds Aqency Fund Funds Assets Cash and cash equivalents $ 14,653 $ 63,833 $ 78,486 $ 140,049 $ 218,535 Due from other flJUds 1,898 1,898 1, 898 Total aSSets $ 16.551 $ 63.833 $ 80.384 $ 140.049 $ 220.433 II Liabilities Due to other funds $ - $ 1,898 $ 1,898 $ - $ 1,898 Due to other organizations 140,049 140,049 Total lia.bilities 0 1,898 1,898 140,049 141,947 ,. Fund equity Reserved fund balances 16,551 61,935 78,486 78,486 Total lia.bilities " and fund equi ty $ 16.,,1 $ 63,833 $ 80.]84 $ 140.049 $ 220.433 , ;,~j ii' . See accompanying report on supplementary information. - 34 - . " ]'~:W.,1f, --""--';-' . :-'C!~,~. ,'-'" '"I. -'-'-1-""'-' ,I r- '~'jilt'n'~l" fth" Ii:'" _ !It I i , i. I i. il II Ii Ii il Ii i' Ii. i. I; I , " hi I [, 1-' ,.' Iii I:,: Ii' I' I'. i' I! I: I:', I i" l~:! I I. , 1:- I " L;, ,. i^, !.:- i:' I'" f',' i , [;., iii i,1 . Ii:' I:, (, f" .. I:,: I I I',.'; !-,' ,. i ii, iiJ I l,; I i:,%;"^'",,-,-",,,, T ,',c;- '~ ^~~ MECHANICSBURG AREA SCHOOL DISTRICT COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL TRUST FUNDS YEAR ENDED JUNE 30, 2001 Expendable Trust Revenue and other financing sources Investment income Miscellaneous revenue $ 88 7 ,722 Total operating revenue 7,810 Operating expenses Supplies and services Scholarship awards 61 7,542 Total operating expenses 7,603 Operating income 207 Scholarship transfers from Activity Fund Transfers to (from) trust accounts 12,943 3,401 Net income (loss) 16,551 Reserved fund balance, July 1, 2000 Reserved fund balance, June 30, 2001 $ 11i SSl See accompanying report on supplementary information. - 35 - ,- c '-.-or:;;-.:' ,~,~", ,_, c~.- ," ' ,~," ~~ '-.,'_."1- Non-expendable Trust $ 3,336 3,336 3,336 13 ,401) (65) o 62,000 $ li1 9,S o Total $ 3,424 7,722 11,146 61 7,542 7,603 3,543 12,943 16,486 62,000 $ 7A 486 '-11 ~'l - , ..",,, "'" >- ~ ~~~, G:~::: c:(-- C::'i' W- ~ , r- c: ~~) ~\... ~ z :;::>4; )-- ~);; -~ :~J~ .':,'-'(J) ~i~~ ' ..JL i-qO- ~, t~~ rl<~.~_~., -,,~, < - ...... ~ l.(j ~ 'd ~ 0_ ~ -Q ........ <J -::t\ ~ c{ &... 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