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HomeMy WebLinkAbout01-06551 , ,- --' , '.-~. --,- r c- _-:,-,--Y~.----,,~-,- -, -, ";~-"",~.I:- ,.".-.-" ~'__;-"o,. "-"_:,-__1._'1"-'---,,,,,,-, ,~,:-<..I__~-" :::-:-__L;..>-:__;-;,,j"l'-i;,;:-':,-~~)-'i<,~,::;~,:i~;-&,_''t;\.::':~.".:,-"._-,;.; ,s.:'.\Ji~j I I I I I I 7ib Of. ?rT/ ~ -r~ CARLISLE AREA SCHOOL DISTRICT ~ I I I I I I ANNUAL FINANCIAL REPORT '" IJ I!'l ~ ~ k', ~ [ ~ FOR THE YEAR ENDED JUNE 30, 2001 i l..J F i..J '" ' ~ I I I' ",) ',,1", " , 1-',,:, -,-- '~"O ;-". -;D' ; - -'". ;,,~..-' ---- '-";;j; ,':,; ,--, '>"~;':-;;~-"\'~~:i; CONTENTS Page ~ LIST OF REPORT DISTRIBUTION I.J M., ~J,': IiIif I',; ;-i, ,r'; 1\1 I I I I I I ~ Ii.! ~.'.' lU ~.;, LJ r "" II!'! (- ~ r ~ ~ "'" TRANSMUTTALLETTER 2 INDEPENDENT AUDITOR'S REPORT ON THE GENERAL PURPOSE FINANCIAL STATEMENTS 3 and 4 GENERAL PURPOSE FINANCIAL STATEMENTS: Combined balance sheet - all fund types and account groups Combined statement of revenues, expenditures and changes in fund equity - all governmental fund types Statement of revenues, expenditures, and changes in fund equity - budget and actual - general fund Combined statement of revenues, expenses and changes in retained earnings (deficit) - proprietary fund type Combined statement of cash flows - proprietary fund type Notes to financial statements 5 6 7 and 8 9 10 and II 12 -21 ACCOMPANYING INFORMATION Combining balance sheet - agency funds Schedule of revenues - budget and actual - general fund Schedule of expenditures and other financing uses - budget and actual - general fund 22 23 and 24 25 - 30 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Notes to schedule of expenditures of federal awards 31 - 33 34 REPORT ON COMPLIANCE AND INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 35 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 36 and 37 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 38 REPORT ON STATUS OF PRIOR YEAR'S COMPLIANCE FINDINGS AND INTERNAL CONTROL WEAKNESSES 39 MANAGEMENT LETTER 40 and 41 O~'" ~\ I I I I I I..., Wi I ft!I Iii! I I I I I I m II'! t "" t I!i"\ l "'" ... -..I ,~,"'I". ~, " ':". .i'_' : J ~ ii.......,.,.., -<._,-1 "--'- :-'-:,---~-,j,',},:,:"-~-> "--'c," ;:",-,~",';:"",,-_", ~_~ CARLISLE AREA SCHOOL DISTRICT L~TOFREPORTD~TRmunON June 30, 2001 I Report - Federal Audit Clearing House Bureau of Census 1201 East 10th Street Jeffersonville, Indiana 47132 3 Reports - Bureau of Audits Bell Tower - 6th Floor 303 Walnut Street Harrisburg, Pennsylvania 17101-1830 -1- -,,,. ., ~ _,-_, e. I I I I I t.... ,,-, '-;;' I I I I ~"""'.."" ~ " ~ E 1"1 ,;,', " m Iiioi ; I,' I'~ I! t\,!!iI,I, liiij I!!!!. f:"; ioo , , r__' , , - , , ,---~, 1."-,, "~, '",,, -,:';''':,-,~b"J.'h!':';'",>;';-'oi-;',' - " '-jd 0E~ Smith Elliott Kearns (!j Company_ LLC Certified Public Accounlants ~ Consultants Board of Directors Carlisle Area School District Carlisle, Pennsylvania We have performed the Single Audit of Carlisle Area School District for the fiscal year ended June 30, 200 I and have enclosed the Single Audit reporting package. The Single Audit was done to fulfill the requirements ofOMB Circular A-133, It entailed: 1. an audit of the general purpose financial statements and the schedule of expenditures of federal awards and our opinion thereon; 2. a review of compliance with laws and regulations and internal control over financial reporting based on an audit of the general purpose financial statements in accordance with "Government Auditing Standards" issued by the GAO and a report thereon; and 3. a review of compliance with requirements applicable to major programs and internal control over compliance and our opinion thereon, We have issued a management letter as part of our report for the fiscal year ended June 30, 2001. ~ tdrL~ !ar7LLC- Carlisle, Pennsylvania September 24, 200 I -2- '" I I I I I ~. Iii) ~ ti I..... d I f!!. ~ ~.'. ~ 'ij w ~. LJ ! I I'..' '.~ "1 I Iii I., f" ~ r' ~ "" ... - u ,1.;",;,;!."j',;",'.:.,; ~"''''c;;,,,;j ,:'" . ;,:,~~:&~~",:;_,:,.",,-t' "". ,;""" '" 41'" ,,~~""i~: ,." , ,--", '''0' '"'~~ >' 1,,",- ~E~ omith Elliott Kearns 1!5 Company, LLC Certified Public Accountants (!j Consultants INDEPENDENT AUDITOR'S REPORT Board of Directors Carlisle Area School District Carlisle, Pennsylvania We have audited the accompanying general purpose financial statements of the Carlisle Area School District as of and for the year ended June 30,2001, as listed in the table of contents. These general purpose financial statements are the responsibility of Carlisle Area School District's management. Our responsibility is to express an opinion on these general purpose fmancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 discussed in Note 1 to the financial statements, general fixed assets consisting of property and equipment are recorded predominantly at replacement cost as determined by an appraisal company. This is not in accordance with generally accepted accounting principles, which specifY that these assets be recorded at cost. In addition, the general purpose financial statements referred to above do not include the Intemal Service Fund (Self Insurance Trust) described in Note 8, which should be included in order to conform with generally accepted accounting principles. If the omitted fund had been included, based on unaudited infonnation, the assets, liabilities, and net loss of the proprietary fund types would have increased by $ 553,973; $ 553,973; and $ 328,852, respectively. In our opinion, except for the effects of not recording general fixed assets at cost and the omission of the Internal Service Fund, as discussed in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Carlisle Area School District as of June 30, 2001, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated September 24,2001 on our consideration of Carlisle 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. -3- ''ji I I I I I ~ w I I I I I Cl I Ill! i I', ., I' . I I III i J!I'! , w " .., ,~- ," ',,,,--,' ';-'" "-- -" "k. "n -'-.'-~ . -u"'~;'~<'-'> j-'"" ;'",i....~F. ;', ;_;""~",:.i,,,'-\,V"ih>-",';",i:i<_'''"'''''-->__cid~ ~,~ __l!' C~'-"';{h:::it 8E~ 8milli Elliott Kearns {j:J Company, LLC Certified Public Accountants (f1 Consultants Board of Directors Carlisle Area School District Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of Carlisle Area School District taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and NonProfit Organizations, and is not a required part of the general purpose financial statements ofthe Carlisle School District. The detailed schedules listed in the table of contents as accompanying information are also 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. ~ aAr;t~ f ~7 LLC- Carlisle, Pennsylvania September 24, 200 I .4- r~ ,---:-,1 ; "L '"--J',, '_ " '~,__; ,:..; '__i '.,,' );~&"'--.~~~, ' CARLISLE AREA SCHOOL DISTRICT m I-'~ COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS ~ June 30, 2001 I - - - - - - - - - - - - - - - GOVERi.~MENT AL FUND - - - - - _ _ _ _ _ TYPES SPECIAL CAPITAL CAPITAL I GENERAL REVENUE RESERVE PROJECTS ASSETS FUND FUNDS FUND FUND I Cash and cash equivalents $ 3,144,294 $ 250,686 $ 1,186,830 $ 126,604 Investments 1,900,000 0 8,454,879 26,809,880 Accrued Interest 106,563 0 145,871 1,931,061 I Receivables: " Taxes-(net of allowance for uncollectible taxes of $1,770,292) 2,279,204 0 0 0 III! ",~&f;1 Due from other funds 390,134 0 900,000 0 <ii Due from other governments Federal 61,749 0 0 0 'l\!I State 116,907 0 0 0 p,',% o.l Other 291,858 28,365 0 0 Prepaid items 50,412 0 0 0 Inventory 0 0 0 0 Land and improvements 0 0 0 0 Buildings 0 0 0 0 Il!!! Furniture and equipment 0 0 0 0 ",;,1 Amount to be provided for retirement I~ of general long-term debt 0 0 0 0 Amount to be provided for accumulated compensated absences 0 0 0 0 Total assets $ /$,341,121 $ 2/,I.},Uo1 $ 1O,6/$'1,0/$U $ 2/$,/$6/',040 LIABILITIES AND FUND EQUITY '!!!I Accounts payable $ $ $ $ ..., 611,580 19,442 11,198 1,269,805 Deferred Revenue 1,083,511 0 0 0 Due to other funds 900,000 0 0 0 Accrued salaries and benefits 1,245,657 0 0 0 Payroll taxes and withholdings 0 0 0 0 ~ Due to student groups 0 0 0 0 '-', General obligation bonds and notes payable 0 0 0 0 ,~ Accumulated compensated absences 0 0 0 0 Total liabilities 3,840,748 19,442 11,198 1,269,805 11 FUND EQUITY lii Investment in general fixed assets 0 0 0 0 II!! I";,~'\i Retained earnings (deficit) 0 0 0 0 !','~"( - Fund balances: Reserved 390,134 259,609 6,836,574 27,597,740 I Unreserved - Undesignated 4,110,239 0 3,839,808 0 ,'.. Total fund equity 4,500,373 259,609 10,676,382 27,597,740 Total liabilities and fund equity $ 8,341,121 $ 279,051 $ 10,687,580 $ 28,867,545 11 !ill !!!l ,f-l iili The Notes to Financial Statements are an integral part of this statement. " ~ -5- .-,1",',0, '~'.,'"' -' " il:< ,~,_- ,- ',,,~', .,; '_.1',:".-- - ,,',,' -',;,,- ",";"'i:,''';,: .; -,' , -'" , ~- 't'i:(~':~l ':~~~'f"'~~~ I , I PROPRIETARY FIDUCIARY - - - -ACCOUNT GROUPS- - - - I FUND TYPE FUND TYPE GENERAL GENERAL TOTALS I FIXED LONG- TERi'1 (MEMORANDUM CAFETERIA AGENCY ASSETS DEBT ONLY) $ 19,176 $ 84,433 $ 0 $ 0 $ 4,812,023 I 0 0 0 0 37,164,759 0 0 0 0 2,183,495 I 0 0 0 0 2,279,204 0 0 0 0 1,290,134 I 4,352 0 0 0 66,101 :,',< 0 590 0 0 117,497 18,237 0 0 0 338,460 I 0 0 0 0 50,412 ". 110,160 0 0 0 110,160 0 0 1,231,608 0 1,231,608 I 0 0 72,128,908 0 72,128,908 117,442 0 15,184,604 0 15,302,046 I 0 0 0 30,100,000 30,100,000 0 0 0 1,308,275 1,308,275 $ 26,:},'~b7 $ l:l4,433 $ l:ll:l,545,12U $ 31,4Ul:l,275 $ 16l:l,4l:l3,Ul:l2 I $ 2,119 $ 5,157 $ 0 $ 0 $ 1,919,301 0 0 0 0 1,083,511 I '"'_: 390,134 0 0 0 1,290,134 'h 0 0 0 0 1,245,657 f:"'; 0 200 0 0 200 0 79,076 0 0 79,076 II.; 0 0 0 30,1 00,000 30,100,000 f"l 0 0 0 1,308,275 1,308,275 392,253 84,433 0 31,408,275 37,026,154 W -Z'i E 0 0 88,545,120 0 88,545,120 ..- ( 122,296 ) 0 0 0 122,296 ) 0 0 0 0 35,084,057 I 0 0 0 0 7,950,047 ,', ( 122,296 ) 0 88,545,120 0 131,456,928 II $ 269,957 $ 84,433 $ 88,545,120 $ 31,408,275 $ 168,483,082 Ii "., I " f!'!' :,'-j .... .do ,-~ 1'-",," ,-I.'.i.o,':- "",;-" 4,'- :1:,~,,' tl~'~'--:~:' C',';';-v 0:-,' I --,i"],,,:1 I CARLISLE AREA SCHOOL DISTRICT , I COMBINED STA TEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND EQUITY - ALL GOVERNMENTAL FUND TYPES Year Ended June 30, 2001 I TOTALS SPECIAL CAPITAL CAPITAL (MEMORANDUM GENERAL REVENUE RESERVE PROJECTS ONLY) I REVENUES Local sources Taxes $ 23,332,971 $ 0 $ 0 $ 0 $ 23,332,971 I Investment earnings 652,372 16,982 572,748 2,394,242 3,636,344 Contributions 44,337 0 0 0 44,337 Other 305,189 152,278 11,000 0 468,467 State sources 14,179,276 0 0 0 14,179,276 I Federal sources 1,003,339 0 0 0 1,003,339 OTHER FINANCING SOURCES m Transfers from other funds 0 0 1,674,763 0 1,674,763 :~} Proceeds from sale of bonds 0 0 0 9,865,586 9,865,586 Tuition from other LEA's 11,415 0 0 0 11,415 Refunds of prior years! I expenditures 0 0 806 0 806 .. Total revenues and other financing sources 39,528,899 169,260 2,259,317 12,259,828 54,217,304 I EXPENDITURES Instruction 22,975,852 0 0 0 22,975,852 Support services 11,768,139 0 0 0 11,768,139 I Operation of noninstructional services 697,758 115,744 0 0 813,502 Facilities acquisition, construction and improvements 0 0 497,224 3,384,149 3,881,373 I Debt service Principal 1,610,000 0 0 14,995,000 16,605,000 Interest 450,576 0 0 945,840 1,396,416 I Other 1,060 0 0 33,928 34,988 Bond issue costs 0 0 0 55,867 55,867 OTHER FINANCING USES m Refund prior yearsl receipts 99 ) 0 0 0 99 ) -::'j Transfers to other funds 1,835,392 18,723 0 0 1,854,115 Total expenditures and other financing uses 39,338,678 134,467 497,224 19,414,784 59,385,153 n Excess of revenues and other financing '. sources over (under) expenditures II and other financing uses 190,221 34,793 1,762,093 7,15-\,956 5,1(i7,849 ) III Fund equity - July 1, 2000 4,310,152 224,816 8,914,289 34,752,696 48,201,953 Fund equity - June 30, 2001 $ 4,500,373 $ 259,609 $ 10,676,382 $ 27,597,740 $ 43,034,104 m "'; ~ "" rL- 10- ... !"" The Notes to Financial Statements are an integral part of this statement. ... -6- ~ _'" I j - ~' '-" ,. " "-"-, ,;;, , "" ,;-,'I~;..,'. -,' ",,~ , - - '_ 'I d_',,"_ -",ie, '-," o_'_,_e,_'" O,~;),.,,;.',.",:;,:;,~,c-:' -1"'1":"'1 - ~ ' c.',-",-" -t, '" l' ; , , I ~ ",... '-'-:,-:,--,--- ,- -c, __j ,.,y -,.--',;,"--~:'-_ ,",,,,,,,, 'l..'2>'-:1-_~;;"', ", --",_,_" -3_ -'>:;j , CARLISLE AREA SCHOOL DISTRICT I STA TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND EQWTY-BUDGETANDACTUAL-GENERALFUND(CONTINUEDj I Year Ended June 30, 2001 I VARIANCE FAVORABLE I BUDGET ACTUAL (UNFAVORABLE) Operation of Noninstructional Services I Student activities $ 671,186 $ 694,998 ($ 23,812 ) Community services 14,115 2,760 11,355 Total operation of noninstructional I services 685,301 697,758 ( 12,457 ) I Debt service <0 Principal 1,610,000 1,610,000 0 I Interest 450,579 450,576 3 Other 0 1,060 1,060 ) I Total debt service 2,060,579 2,061,636 ( 1,057 ) OTHER FINANCING USES B Transfers to other funds 796,763 1,835,392 1,038,629 ) Refund of prior years' receipts 0 99 ) 99 Budgetary reserve 33,000 0 33,000 I Total other financing uses 829,763 1,835,293 ( 1,005,530 ) I Total expenditures and other financing uses 38,603,563 39,338,678 ( 735,115 ) m Revenues and other sources over (under) expenditures and I other uses ( 599,965 ) 190,221 ( 790,186 ) ~:r Fund equity - July 1, 2000 3,733,000 4,310,152 577,152 m Fund equity - June 30, 2001 $ 3,133,035 $ 4,500,373 ($ -1,367,338 ) m 1!1"1 I' ;~ i iIOi !"! The Notes to Financial Statements are an integral part of this statement. iI./ -8- M' I , I I I I I IIJ!! il I IS I I I Ii'! t! 1"1 Ii.! ~ E'J <. ., I., 11 I Iiil ~ Ii..: I"'l i' ! ... ,-.".c . c'^ ' ~ " " . ,-l ~., ~,' -,--,., ,j...,'," '-,',;-:;;/' -;;'_'-'"--_.-:;',~'.,,;-----'--,.-'~ "..~;"- Ii~d~i~ CARLISLE AREA SCHOOL DISTRICT STA TEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS (DEFICIT) - PROPRIETARY FUND TYPE Year Ended June 30, 2001 CAFETERIA OPERATING REVENUE Sales Other $ 804,835 12,370 Total operating revenues 817,205 OPERATING EXPENSES Food and milk purchases Salaries Employee benefits Supplies Delivery and storage Depreciation Repairs and maintenance Miscellaneous 527,742 536,927 187,051 57,229 10,592 23,997 16,992 7,302 1,367,832 ( 550,627 ) 286,781 66,028 179,351 452 1,000 533,612 ( 17,015 ) ( 105,281 ) ($ 122,296 ) Total operating expenses Operating (loss) NONOPERATING REVENUES Federal subsidies State subsidies Transfer from other funds Interest Miscellaneous Net (loss) Retained earnings (deficit) - Beginning Retained earnings (deficit) - Ending The Notes to Financial Statements are an integral part of this statement. -9- . ',,'I,,", O"-i..n-' ' I , I I I I I CARLISLE AREA SCHOOL DISTRICT STA TEMENT OF CASH FLOWS- PROPRIETARY FUND TYPE Year Ended June 30, 2001 Cash flows from operating activities: Cash received from food sales Cash payments to suppliers for goods Cash payments to employees Cash payments for services Net cash used by operating activities II'! ~ Cash flows from capital financing activities: Purchase of equipment Fundraising income ~ w I I I., ~ Net cash used by capital financing activities Cash flows from noncapital financing activities: Federal and state subsidies Transfers from other funds Net cash provided by noncapital financing activities Cash flows from investing activities: Investment income ~ If} ... Net increase in cash ~ L1 I!li ~ I ~,".. ~ W Beginning cash - July 1, 2000 Ending cash - June 30, 2001 The following activity occurred with donated commodities: Beginning inventory $ Commodities received Commodities used ( Ending inventory $ m.'. ij ili.I ,~~""I'J ".. ,,,,,-'~','"" -r, -'-"_',i4-.J,~_'~', ..~"",' .0 u_; ~;::::~ 10,117 62,552 57,921 ) 14,748 CAFETERIA $ 805,838 ( 564,492 ) ( 641,678 ) ( 92,113 ) ( 492,445 ) ( 34,195 ) 1,000 33;J 95 ) 348,178 179,351 527,529 452 2,341 16,835 $ 19,176 I"'! , ' I.. The Notes to Financial Statements are an integral part of this statement. -10- ''', ,.l..;'-,.., ' I I I I I CARLlSE AREA SCHOOL DISTRICT STA TEMENT OF CASH FLOWS PROPRIETARY FUND TYPE - CONTINUED Year Ended June 30, 2001 Reconcilation of income from operations to net cash probided by operating activities I Cash l10ws from operating activities: Operating (loss) Adjustments to reconcile operating loss to net cash used in operating activities Depreciation Changes in assets and liabilities Inventories Receivables Accounts payable Interfund payable Total adjustments III ~H iIoI " i?i, "'" lI'I ik.l ~ Net cash used in operating activities rl Iii r: ~ ~.j tJ ~ f'l ~ @'! tJ r Ii.:..'. . ~ I.il ~ , , lid .,,~,o~ '-<> Ok -',-:,~"~,;;:,, .-,,"~.> "":,,;,,.,~,- "';...--~:_"'~~" ~-ili PROPRIETARY FUND TYPE (CAFETERIA) ($ 550,627 ) 23,997 ( 24,333 ) ( n,365) ( 12,417 ) 82,300 58,182 ($ 492,445 ) ""' The Notes to Financial Statements are an integral part of this statement. .... -11- , ........-J~- _ L ~" . J ". ',(,;',;;?:;_"h~.J-";- ''''' f, "--..; .s-~!Jilit\~ I I I NOTES TO FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies The accounting policies of the School District conform to generally accepted accounting principles applicable to governmental units. The following is a summary of the more significant policies: Basis Of Presentation - Fund Accounting I I The accounts ofthe School District are organized on the basis of funds or 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 balance/retained earnings, revenues, and expenditures/expenses. The various funds are summarized by type in the financial statements. The following fund types and account groups are used by the School District: I Governmental Fund Types E 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 the proprietary funds) are accounted for through governmental funds. The measurement focus is based upon determination of changes in financial resources, rather than upon net income determination. Pi, i'; W I I ~......' i1 1'..;.1. "< -'\ rl W General Fund - The General Fund is the general operating fund of the School District. This fund is used to account for all financial transactions except those required to be accounted for in another fund. Special Revenue Fund - These funds are used to account for proceeds of specific revenues (other than major capital projects) that are legally restricted to expenditures for specific purposes or used to finance specific activities as required by administrative regulation. Capital Reserve Fund - This fund was created under Article XI, Municipal Law Code Section 1431, for the purpose of funding capital improvements to facilities and purchase educational equipment. Capital Projects Fund - This fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities. 1"1 ilJ Proprietary Fund Types !'l ;;; u Proprietary funds are used to account for the School District's ongoing activities which are similar to those often found in the private sector. 11'1 IoiJ Cafeteria Fund - The Cafeteria Fund accounts for all revenues and expenses pertaining to the 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 federal/state governmental funding. Pl i.i r'! I. iiJ ... : "" -12- '"] - , , " -~ , l.. , . , "'J~h "".j,- , ',,', , ';'~,;-_L,,, -".,;)'--.;i,.-"_)~' , ,,- ,~c <~! I I , Note 1. Summary of Siguificant Accounting Policies (Continued) I 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. These funds are held by the School District, which acts in an agency capacity with respect to the payroll withholdings and the Student Activity Funds, The funds are custodial in nature and do not involve measurement of results of operations. I I I " w ~.'. ;; Fi.,..,.'. iU Account Groups General Fixed Assets Accoullt Group - This account group is used to record all property and equipment of the School District, except that which is accounted for in the Cafeteria Fund. General Fixed Assets consist of property and equipment and are recorded predominantly at reproduction cost as determined from American Appraisal Associates report dated December 30, 1999 (last updated report). To be in accordance with generally accepted accounting principles, general fixed assets should be recorded at cost. There were $ 4,538,269 of general fixed asset additions and no significant deletions during the year. General Long-Term Debt Account Group - This account group presents the balance oflong-term debt which is backed by the full faith and credit of the School District. Principal and interest on long-term debt is expensed on the date such debt service requirements are paid to the trustee. Accumulated sick pay is also included in this account group. Governmental And Fiduciary Fund Types I! All governmental and fiduciary funds are accounted for using the modified accrual basis of accounting. Revenues are recorded as received in cash except for revenues susceptible to the accrual and material revenues that are not received at normal times. Delinquent taxes receivable are reported on the balance sheet, net of an allowance for uncollectible taxes. L !!'l..., ~ Expenditures are recorded on the accrual basis except for prepaid expenses, which are normally not recorded, and except for principal and interest on long-term debt, which are expenditures when due. Fixed assets and materials and supplies are charged to operations when purchased. ~ I;l W/! lioI Revenues from federal, state and other grants designated for payment of specific School District expenditures are recognized when the related expenditures are incurred. Any excess of revenues or expenditures at the fiscal year end is recorded as deferred revenue or a receivable, respectively. Proprietary Fund Type " Il.l The Proprietary Fund type, consisting of the Cafeteria Fund, utilizes the accrual basis of accounting in which revenues are recognized in the accounting period in which they are earned; expenseS are recognized at the time they are incurred. Proprietary funds apply Financial Accounting Standards Board (F ASB) pronouncements and Accounting Principles Board (APB) opinions, unless those pronouncements conflict with or contradict GASB pronouncements, in which case, GASB prevails. Significant accounting policies for this fund include: tl'i iJ rl i'" lioI >- Equipment utilized by the Cafeteria Fund is recorded as fixed assets of that Fund (at cost), and is depreciated on a straight-line basis over an estimated useful life of 5 . 12 years. >- Donated commodities received by the Cafeteria Fund are inventoried at cost figures provided by the federal Government. >- Food and supplies inventories are valued at cost on a first-in, first-out basis. " ';'1'1 Il..i 1"\ lioI -13- - , - , , '.<'- , _J_,..I_,'. , ~',~ : ,l'. , <-';'~' ... -,-,;~~,' '~'i-i'_,',--"-,~!",, ,-~,-, ~'''':--'''>:'~'11fjl I I Note 1. Summary of Significant Accounting Policies (Continued) I I The School District docs 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). Budgetary/Encumbrance Acconnting I I " Ii n., L General governmental revenues and expenditures accounted for in the General Fund are controlled by a formal budgetary accounting system in accordance with legal requirements which govern the School District's operations. This budget is adopted on a basis consistent with generally accepted accounting principles, and is modified during the year for budgetary transfers between accounts. It also is increased for the addition of new programs. The budget figures presented in the financial statements have been modified from the original adopted budget. Encumbrance accounting is utilized during the year to provide budgetary control. Encumbrances outstanding lapse at year end and must be reappropriated in the subsequent year's budget. Budgets are not required and have not been prepared for any other funds. Accumulated Sick and Vacation Leave m..., '~:.-' (,~ ' ".' Iii ~.' iJ m Vacation leave only applies to twelve month employees; only five days of vacation leave is allowed to be carried over at year end, but must be used by August 15 or is lost. Vacation leave earned in 2000- 01 is credited to the employees on July 1, 2001, and is expensed as paid. 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 unused sick leave at the time of retirement, the amount of which is reflected in the general long-term debt account group using the vesting method under GASB Statement No. 16. Retirement Plans In November 1994, the GASB issued Statement No. 27, AccountingJor Pensions by State and Local Governmental Employers (GASB Statement No. 27). GASB Statement No. 27 establishes standards for the measurement, recognition, and display of pension expense and related liabilities, assets, and note disclosures. See Note 6 for disclosures. ~ m Investments 1'1 il 11 i In March 1997, the GASB issued Statement No. 31, Accounting and Financial ReportingJor Certain Investments andJor External Investment Pools (GASB Statement No. 31). The Statement establishes fair value standards for certain investments held by governmental entities and external investment pools. See investment information at Note 2. Principles Used in Determining the Reporting Entity !I!l ~ Governmental Accounting Standards require that the reporting entity include (I) the primary government, (2) organizations for which the primary government is financially accountable and (3) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. I'! i: '" . , ... -14- ~r.' ,,; .' - : - . l" ~'-'- - "-) .-;,,-'~,:;;;",~;~.':';'~ _',C,_ ",""l-',,);,,"~"'; '<'d..:~^'_ -'6':~;.":;i.;~i !i I I Note 1. Summary of Significant Accounting Policies (Continued) I I The Carlisle Area School District is the lowest level of government, which has oversight responsibility and control over all activities related to public school education. The District receives funding from local, state and federal government sources and must comply with the requirements of these funding source entities. All operations of the School District are included in the reporting entity. Based on the criteria provided in Government Accounting Standards Board (GASB) Statement No. 14 the following organizations are considered to be affiliated with the Carlisle Area School District. I I I E I I The School District is affiliated with Harrisburg Area Community College (HACC), along with numerous other member school districts in a joint venture arrangement. The member school districts participate in providing oversight responsibility to this entity through the following: ~ Appointing of Board members who are also Board members of the participating schools ~ Approval and funding of operating budget ~ Long-term agreement to provide funding for capital expenditures The District has an ongoing financial responsibility to fund its proportionate share of the operating budgets of this entity, but has no equity interest in it. Separate financial statements are prepared for and available from HACC. See additional infonnation regarding payments to the above affiliated organization at Note 7. The District is also affiliated with the South Central Region School Employees Benefit Welfare Trust (the Trust), a public entity risk pool which provides employees medical insurance. Since the District appoints the Trustees of the Trust and since Carlisle Area School District is one of only two participating members in the Trust at June 30, 2001, the Trust is deemed a component unit of the School District under governmental accounting principles. See Note 8 for further infonnation. I '....'.'. I Cash And Cash Equivalents For purposes of the statement of cash flows presented for the Proprietary Fund Type, the School District considers time deposits and all highly-liquid debt instruments with original maturities of three months or less to be cash equivalents. ~ Total Columns On Combined Statements ~ Total columns on the combined financial statements are not necessary for a fair presentation of the financial statements in confonnity with generally accepted accounting principles. They are presented to facilitate financial analysis. The aggregation ofthis data is not comparable to a consolidation as interfund eliminations have not been made. ~ Note 2. Cash And Investments ~ ~ Deposits - At June 30, 2001, the carrying amount of the School's deposits (excluding petty cash) was $ 4,811,509 and the bank balance was $ 4,515,245. The District's deposits are covered by federal depository insurance ($ 100,000) or by pooled, pledged assets (not in the name of the District) of the various depositories pursuant to Act 72. fl iU " I:.. ... "'" ... -15- '''1 , I I I I I ~ Iii I...",".' . ~ " m m'l Iiiii I !l'l ".,. Iiioj f'l tJ W. {,oj OJ I.'.' ~1 I !!!! iJ ~ if: iioi ,?"<-'" Note 2. Cash And Investments (Continued) The School's investments are categorized as follows under GASB Statement No.3: Fair Category 1 Category 2 Category 3 Cost Value FHLB Discount Note, matures 7/21/01 $ 974,049 $ 0 $0 $ 974,049 $ 974,049 FHLMC Discount Note, matures 8/1 6/0 1 907,981 0 0 907,981 909,497 FFCB Discount Note, matures 9/1 8/0 I 1,282,441 0 0 1,282,441 1,282,907 FNMA Discount Note, matures 9/28/01 2,160,457 0 0 2,160,457 2,166,735 U.S. Treasury Strip, matures 11115/01 2,298,476 0 0 2,298,476 2,305,689 FHLMC Discount Note, matures 11130/01 1,155,212 0 0 1,155,212 1,157,093 FNMA Treasury Note, matures 12/] 7/0] ],380,251 0 0 ] ,380,25] 1,384,053 FHLMC Treasury Note, matures 113/02 3,015,003 0 0 3,015,003 3,034,605 FFCB Discount Note, matures 1125/02 1,155,060 0 0 1,155,060 ],]59,585 U.S. Treasury Strip matures 2/15/02 2,530,505 0 0 2,530,505 2,550,430 FHLB Note, matures 2/26/02 2,993,438 0 0 2,993,438 3,024,208 U.S. Treasury Strip, matures 5/1 5/02 2,273,715 0 0 2,273,715 2,285,374 U.S. Treasury Strip matures 5/1 5/02 3,755,431 0 0 3,755,43 ] 3,8] 8,588 U.S. Treasury Strip, Matures 8/15/02 5,291,172 0 0 5,291,172 5,406, ]51 FNMA Note, Matures 1115/03 2.997 .188 ~ ~ 2.997 .188 3.038,437 $ 34 170.379 $.J) $.Jl 34,] 70,379 34,497,711 PLGIT - Term certificates 2,600,000 2,600,000 Money market with broker 67 .048 67.048 $ 36.837 427 $ 37.164.759 All investments are held in safekeeping by outside agents and backed by the U.S. Government and its agencies. Investinents are categorized as either (1) insured or registered, or for which the securities are held by the government or its agent in the government's name, (2) uninsured and unregistered for which the securities are held by the broker's or dealer's trust department or agent in the government's name or (3) uninsured and unregistered for which the securities are held by the broker or dealer, or by its trust department or agent but not in the government's name. Investments in the Pennsylvania INVEST program and Pennsylvania Local Government Investment Trust (PLGIT) are not categorized since they have the characteristics ofa mutual fund. At June 30, 200], the District had $ 3,343,348 in these programs and are recorded on the balance sheet as cash and cash equivalents. -16- ;;:1\ I , I Note 2. I I I I 'I ; I,',',',', I I Note 3. !' '.- ",,-I iii> m '.:,'1 ~ E'. ,--,- ";,, . , " ,---. ~, k"" '",,,/~, "--- 1'->''''0 .t".,"",G"~-.'~~\ ,~ ,'<--..:~ -:;edf~~'/,",'\';;'",:;"'~~:> ,;,-~ ,s.,~:\,~/:{ ~- , Cash And Investments (Continued) Section 440.1 of the Pennsylvania School Code authorizes the School District to invest in the following: >- U.S. Treasury Bills. >- Short-term obligations of the U.S. Government and Federal agencies. >- Insured savings and checking accounts and certificates of deposit in banks, savings and loan associations and credit unions. >- General obligations of the Federal Government, the Commonwealth of Pennsylvania or any state agency, or of any Pennsylvania political subdivision as long as the obligations are backed by the full faith and credit of the respective governmental entity. >- Shares of investment companies whose investments are restricted to the above ,categories. Taxes Receivable And Allowance For Uncollectible Taxes Taxes receivable and allowance for uncollectible taxes consisted of the following at June 30, 200 I: Real estate transfer Earned income Occupational privilege Real estate Occupational, resident and per capita $ 72,208 826,993 23,710 766,195 2360.289 4,049,495 ( L 770.292) $ 2.279.203 Less: allowance for uncollectibles Taxes receivable Property taxes are levied on August I. Taxes are collected at a 2% discount if paid before October I and at 10% penalty if paid after the due date of November 30. Taxes are recorded as revenues by the School District when received from the tax collector, and proper accruals are recorded at year-end. The allowance for uncollectible taxes is based upon management's estimates of taxes that are not expected to be collected. The taxes not received within 60 days of year-end are recorded as deferred revenues. Note 4. Cafeteria Fund fl &l ~ ",I ii fl ,,; Li '." i rl w r .1 iiroI Cafeteria Fund inventories consist of the following at June 30, 200 I: Donated commodities Supplies Food $ 14,748 79,179 16.233 $110 160 Cafeteria Fund fixed assets consist ofthe following at June 30, 2001: Cost Accumulated Depreciation Depreciated Cost Current Year Depreciation Equipment $ 720,014 $ 602,572 $ 23,997 $ 117,442 -17- ~ I I I I I I I I I' -', I I: '"' "...., 11 ! Note 5. Il Ii 1\ I E I!'l t.l rn ~ !!'l t -- ~ iIiiI .1, ',_, " , ,"'I'"",,; ,,1,- -,,,,.-,,' ..^d,'i'-'"",;>";'--;'~",(;;,;",,;;;';;:,;,,~_.-c' "t-'--:;"';"-'tt2' General Long-Term Debt Changes In General Long-Term Debt The following is a summary of long-tenn debt transactions of the Carlisle Area School District for the year ended June 30, 200 I: Balances July 1, 2000 Retirements Balances June 30, 2001 Additions General Obligation Bonds/Notes Series of 1992 $ Series of 1993 Series of 1997 Series of 1998 Series of i 999 Series of 2000 Series of 200 I Accumulated sick pay Totals 695,000 1,035,000 5,000,000 9,995,000 9,990,000 9,995,000 9,995,000 i.259.56i $ 37 969 561 $ 0 o o o o o 9,995,000 48.714 $10043714 $ 695,000 910,000 5,000,000 9,995,000 5,000 o o o $ 16 605.000 $ 0 125,000 o o 9,985,000 9,995,000 9,995,000 1.308.275 $ 31 408.275 Interest expense incurred for the year ended June 30, 2001 was $ 1,396,415. Maturities of General Obligation Bonds and Notes The following is a schedule by years and in the aggregate of minimum debt service requirements as ofJune 30, 2001: Year GO GO GO GO Ending Bonds Bonds Notes Notes June 30 Series of Series of Series of Series of Totals 1993 1999 2000 2001 2002 $ 127,688 $ 908,980 $ 439,780 $ 640,463 $ 2,116,911 2003 0 1,007,988 10,214,890 599,460 11,822,338 2004 0 1,003,825 0 60 I ,985 1,605,810 2005 0 1,003,481 0 599,285 1,602,766 2006 0 1,006,564 0 601,585 1,608,149 2007 and after 0 8.05 i.907 0 16.047 .620 24.099.527 Total minimum payments $ 127.688 $ 12.982.745 $ 10654 670 $19090398 $ 42 855 501 Minimum debt service requirements include interest expense of$ 12,755,50i. -18- W'__" ,..... , -,. ~-- I ~\~ ""'d ,..:.;",__,~/,;;,.,'.";;';~n,C_;, ~,/' , , -~ _~_o~,_ ,'"'' I , I I I I Note 5. General Long-Term Debt (Continued) A) General Obligation Bonds Payable Series of 1993 On April 13, 1993, the School District issued General Obligation Bonds - Series of 1993, in the aggregate principal amount of $ 5,385,000. The proceeds were used to redeem the remaining balance of the Series of 1988 Bonds. The remaining proceeds, net of bond issuance costs, were used to finance the 1993 Capital Project Plan, which was substantially completed in the 1993-1994 fiscal year. Interest, at rates ranging from 2.25% to 4.30% per annum, is payable semi-annually on March 1 and September I. Bonds in various principal amounts mature through September I, 200 I. II! ~'"I .. Series or 1999 !!t,'" Ii !I,'! Ii m,! Ii I ~ iJ On January 1, 1999, the School District issued General Obligation Bonds - Series of 1999, in the principal amount of $ 9,995,000. The proceeds will provide funds for various school building additions and renovations. Principal installments ranging from $ 5,000 to $ 985,000 are due through March 1,2014, with interest rates varying from 3.10% to 4.45%. Series of 2000 On January I, 2000, the School District issued General Obligation Bonds - Series of 1999, in the principal amount of $ 9,995,000. The proceeds will provide funds for various school building additions and renovations. Interest at 4.40% is payable semi-annually on May 15 and November 15, with principal maturing November 15,2002. Series of 2001 . ~~1j lW On January I, 200 I, the School District issued General Obligation Bonds - Series of 200 I, in the principal amount of $ 9,995,000. The proceeds will provide funds for various school building additions and renovations. Interest at rates between 4.45% and 5.75% is payable semi-annually on March I and September I, with principal maturing March I, 2021. Note 6. Retirement Plan 1,1,1 ~ Plan Description. The School District contributes to the Public School Employees Retirement System (PSERS), a cost-sharing multiple-employer defined benefit pension plan. PSERS provides retirement and disability benefits, and legislative mandated ad hoc cost-of-living adjustments to plan members and beneficiaries. It also provides healthcare insurance premium assistance to qualifYing annuitants. Authority for the plan is provided by The Public School Employees' Retirement Code (Act No. 96 of October 2, 1975, as amended) (24 Pa. C.S. 8101-8535). The system issues a publicly available financial report that includes financial statements and required supplementary information for the plan. That report may be obtained by writing to Wendy F. Hoover, Bureau of Fiscal Control, Public School Employees' Retirement System, P. O. Box 125, Harrisburg, PA 17108-0125. , 1);,1,',',,' Ii I iW " III I Funding Policy. The contribution policy is set by the Public School Employees' Retirement Code and requires contributions by active members, employers, and the Commonwealth of Pennsylvania. For members who joined the System prior to July 22, 1983, their contribution rate is 5.25% of compensation. The rate is 6.25% for members who joined on or after that date. !l"I t!_--! w I!!'! iili _19- - , ',,' , I ,c ~ . .,"', .' c~< , " , ~-... " "- -.-':~",J,,;{:-; ,,~,,'k:,;; ;-,-\",,,'j ~-'':';.;,;';'~~:;;.-,---,~"i~~,~,,- M-~- "_","",'~',, -+\ I I Note 6. Retirement Plan (Continued) I The contributions required of employers and the Commonwealth are based upon an actuarial valuation. In accordance with Act 29 of 1994, the Commonwealth of Pennsylvania must pay school entities for contributions made to PSERS based on the formula provided in Act 29, but not less than one-half of the school entities' contributions. For the year ended June 30, 2001, the School District contributed at the rate of 1.94% of covered payroll. The 1.94% rate is composed ofa pension contribution rate of 1.64% for pension benefits and .30% for health insurance premium assistance. The contribution requirements and amounts actually contributed for the School District are as follows: I I Contribution Required Actual Contribution As a Percentage I le;\ '--, June 30, 2001 June 30, 2000 June 30,1999 $ 964,544 1,207,881 1,701,521 100% 100% 100% For the year ended June 30, 2001, the Commonwealth of Pennsylvania reimbursed the School District for approximately one-half of its retirement expense. As explained in Note 1, the Carlisle Area School District is affiliated with the Harrisburg Area Community College (HACC). Total payments to HACC during the year ended June 30, 2001 were $ 370,459. I'" ',', <"-J E II i Note 7. Affiliates Note 8. Risk Management - Insurance II ii The District's risk management activities are recorded in the general fund and are related to administering employee life, health, and disability, property and liability, worker's compensation, and unemployment insurance programs. The District's risk management activities do not constitute a transfer of risk from the District. Settlement amounts have not exceeded insurance coverage for the current year or three prior years. III! ~i.J,! ij I I Significant losses are covered by commercial insurance for all major programs except workers' compensation and health insurance. I The District self insures a portion of their workers' compensation insurance through the School District Insurance Consortium (sorC). The District is responsible for claims up to the amount maintained in a self insurance reserve with sorc. The District also contributes to the sorc "Central Fund", which pays claims for all participating districts that exceed the initial claims self insured. There were no significant unpaid claims or estimated claims incurred but not reported at June 30, 2001. Total payments to sorc in 2000/2001 were $ 60,594. The expenditures for the District's risk management are recorded in the General and Cafeteria Funds for workers compensation. '.'.11 Ii m m ~ \'I!! : - I"'l 1"" Wi -20- "1 ~- , '~'", " " . ,;, -~I ,~ ,,-'"_,"--"-'_,;Vo"--," "'"i',,,c';"'_,,"_,-,,,: ,,~, .' "uK '~ I Note 8. Risk Management - Insurance (Coutinued) I On July 1, 1995 the District established the South Central Region School Employees Benefit and Welfare Trust (the Trust), a public entity risk pool, to provide its employees medical insurance. The member districts of the Trust elect trustees to manage it, but the risk is not shared among all members. At June 30, 2001, there were two member districts in the Trust. The Trust purchases insurance coverage for its members on a cost plus plan. Premiums charged in excess of claims paid and administrative costs are deposited in a rate-stabilization fund for each member district. Since each district is responsible for its own risk, additional assessments would be charged to make up any deficiencies in this fund related to each district. Provisions are in effect to refund any excess monies should a member withdraw or the Trust be dissolved. I I I The activity for the Trust should be recorded as an Internal Service Fund on the District's financial statements to be in conformity with generally accepted accounting principles. However, the expenses for payments into the Trust are reflected in the General and Cafeteria Funds. Total payments to the Trust were $ 3,243,248 during 2000/2001. I I" ":;, m Note 9. Reserved Fund Balance A portion of the fund balance of the capital reserve fund has been reserved for specific projects authorized by the Board of Directors. The reservation of fund balance in the general fund is for the receivable from the cafeteria fund, which is uncertain due to the financial position of the cafeteria fund. E Note 10. Commitments , II m ~ At June 30, 2001 the District had approved $ 26,459,786 for capital projects, of which $ 4,451,210 had been expended by June. 30, 2001. ; m.'.'. i1 D'..'...'.' ",' , ~ III p W fi.. ~~. . . IIlI 1'1 lii> !!Ill ~ -21- "' ........'..J ' .;0'.-,"0';' "~"_,,,- , ,--- ., "'-,-'1, '-"/",.---" """;",.',:,, :"'-;;.-t.;.J."'~:-'''''hl-~~:i! I , I I I I I CARLISLE AREA SCHOOL DISTRICT COMBINING BALANCE SHEET-AGENCY FUNDS Year Ended June 30, 2001 PAYROLL STUDENT ACTIVITIES TOTAL ASSETS Ca5h $ 200 $ 84,233 $ 84,433 I Liabilities Accounts payable $ 0 $ 5,157 $ 5,157 Payroll taxes and withholdings 200 0 200 Due to student groups 0 79,076 79,076 Total liabilities $ 200 $ 84,233 $ 84,433 m Z..., ~ ~ lit: 11 i E" ~;J < I ~' : c:~; ," ~ S lII'! W~:: .. ~ ![; Oi.; l!""l ~:,' : ... -22- , I I I ! rl..., L II! ~ I , , I'd ':,'.' ;,?,< CARLISLE AREA SCHOOL DISTRICT SCHEDULE OF REVENUES. 8UOGET AND ACTUAL GENERAL FUND Year Ended June 30, 2001 REVENUEFRO~ILOCALSOURCES Revenue From Taxation Real estate Per capita Resident Earned Income Real estate transfers Occupation Payments in lieu of taxes Delinquent Occupation privilege Public utility tax Tuition and other payments from patrons Earnings from investments Rentals Contributions from private sources Athletics revenue Miscellaneous revenue r: fi.J Total Revenue from local sources REVENUE FROM STATE SOURCES ~ LJ Basic instructional subsidy Read to succeed Homebound instruction Special education Transportation Vocational education Rentals and sinking fund payments Driver ed ucation Nurse services Social security Retirement Tuition - Section 1305 Administrative consortium Other state grants l!'l IJ !!!l......" W ~ "i ... I " tJJ ~.',.'. ~ Total revenue from state sources ~ , ' l.I BUDGET $ 15,832,585 $ 88,820 $ 89,000 $ 2,521,107 $ 350,000 $ 2,619,871 $ 14,563 665,000 105,000 85,902 80,000 596,500 30,000 25,000 30,000 20,000 23,153,348 9,242,967 68,829 1,000 1,951,276 645,590 146,933 578,599 10,000 97,131 828,889 210,202 20,000 o 47,200 $ 13,848,616 -23- ACTUAL $ 16,137,531 89,182 90,071 2,707,612 383,452 2,803,437 16,395 903,272 120,012 82,007 110,193 652,372 14,312 44,337 43,129 137,555 24,334,869 9,261,674 96,432 884 2,146,343 639,361 137,692 583,795 7,700 91,788 813,437 201,892 18,369 15,000 164,909 $ 14,179,276 "-"/" '-,",'''''^'''''- VARIANCE FAVORABLE (UNFAVORABLE) $ 304,946 362 1,071 186,505 33,452 183,566 1,832 238,272 15,012 3,895 ) 30,193 55,872 15,688 ) 19,337 13,129 117,555 1,181,521 ( ( ( ( ( 18,707 27,603 n6 ) 195,067 6,229 ) 9,241 ) 5,196 2,300 ) 5,343 ) 15,452 ) 8,310 ) 1,631 ) 15,000 117,709 $ 330,660 ''fj .~ "1l"..iLi' ",.' I' -k., ,- -~'" -'."h-,~---jl..""';;i",'~__'-0':'J>-,-;'-;',,C;'''''-;-,c ~,-'-,:, ";'-~,i*i I I I I I I , Ii I: 1;) c"" rl.,,'. iJ '..' I E CARLISLE AREA SCHOOL DISTRICT SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND (CONTINUED) Year Ended June 30, 2001 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUE FROM FEDERAL SOURCES Impact Aid $ 275,000 $ 277,028 $ 2,028 ESEA Title I 330,439 301,751 28,688 ) ESEA Title II 22,373 19,654 2,719 ) ESEA Title III 25,000 6,123 18,877 ) ESEA Title VI 28,487 28,587 100 Other federal grants 320,336 370,196 49,860 Total revenues from federal sources 1,001,635 1,003,339 1,704 OTHER FINANCING SOURCES Tuition from other LEA's 0 11,415 11,415 Total revenues and other financing sources $ 38,003,599 $ 39,528,899 $ 1,525;300 ~ ':.!' .. r: iJ m !.dH ~ r! il ID I,' ,r,.. ,:{ ~. !JU I!"I :,'1 Ii.J -24- "1 '. ~"-" ~ , 1';-,; ___,_n,_, : ,:L, -,' - ",.' " ',:>:,-, ,"""~',-" ,-,~';,:);J"'"",,,': ": :_:;'-~ffi:~~_:~~ .~ .' li-, , . . .1 ~o'",,"-L."; -';"""';';;'""0"_< '-"-,,'<\..::,, '/,~,,,;., :' ii-' -""-''t-,~,!,: I CARLISLE AREA SCHOOL DISTRICT I SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGETANDACTUAL-GENERALFUND(CONTINUEDj Year Ended June 30, 2001 I VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) I EXPENDITURES INSTRUCTIONAL - CONTINUED I Other Instructional Programs Salaries $ 837,896 $ 554,367 $ 283,529 Employee benefits 119,817 110,594 9,223 I Purchased services: Professional and technical 99,060 127,267 28,207 ) " Property 0 2,616 2,616 ) E;j Other 148,240 95,084 53,156 " Supplies 95,281 59,343 35,938 1/1I Property 2,708 20,060 17,352 ~, Total other instructional programs 1,303,002 969,331 333,671 F' ... Adult Education Programs III Salaries 88,531 55,383 33,148 ;Co..] ... Employee benefits 6,651 5,974 677 Purchased services: I -',.':1 Other 855 8,271 ( 7,416 ) ,,_'I Supplies 3,185 4,853 ( 1,668 ) I Property 0 7,350 ( 7,350 ) ;1,- Total adult education programs 99,222 81,831 17,391 ~ Community College Education Programs . ".-j Other purchased services 380,000 370,459 9,541 ~ Total instructional programs 23,521,027 22,975,852 545,175 SUPPORT SERVICES ~ Pupil Persounel '" Salaries 925,063 1,086,925 ( 161,862 ) ~ Employee benefits 220,798 305,952 ( 85,154 ) II Purchased services: Professional and technical 34,228 22,020 12,208 ~ Other 300 1,397 ( 1,097 ) !~' ~ Supplies 12,400 13,515 ( 1,115 ) Other objects 15,175 14,200 975 ~ Total pupil personnel 1,207,964 1,444,009 236,045 ) V I'::! " ~ 1"'1 ... -26- "'" ;"._J '-'"",,'. . ll' , ,;,~'-' '.1 ". ' -,- ",~ ,j """,-';,jL,-}:L ei1,"'<__';,,'d~ "",-1'\ ":~;;~'P/+~i I CARLISLE AREA SCHOOL DISTRICT I SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES _ BUDGETANDACTUAL-GENERALFUND(CONnNUEDj I Year Ended June 30, 2001 V ARlANCE I FAVORABLE BUDGET ACTUAL (UNFAVORABLE) EXPENDITURES I SUPPORT SERVICES - CONTINUED Instructional Staff Salaries $ 632,249 $ 859,011 ( $ 226,762 ) I Employee benefits 184,563 183,534 1,029 Purchased services: Professional and technical 62,795 40,417 22,378 ~ Property 20,232 4,767 15,465 il.o Other 121,538 108,184 13,354 rl Supplies 144,673 131,450 13,223 Ll Property 8,894 64,911 ( 56,017 ) Total other instructional I programs 1,174,944 1,392,274 ( 217,330 ) ,--, Administration I Salaries 2,180,616 1,774,457 406,159 Employee benefits 454,866 422,569 32,297 Purchased services: I Professional and technical 217,945 165,753 52,192 '-f1 Property 130,810 186,030 55,220 ) Other 65,613 98,778 33,165 ) r Supplies 76,314 90,048 13,734 ) Ii.. Property 43,400 35,674 7,726 r Other objects 38,550 32,776 5,774 iW Total administration 3,208,114 2,806,085 402,029 Pupil Health " Salaries 230,128 247,703 ( 17,575 ) Ii.; Employee benefits 67,417 66,948 469 Purchased services: m Professional and technical 4,500 2,687 1,813 1') " Property 0 30 ( 30 ) I!'l Other 500 179 321 1'" Supplies 9,700 5,202 4,498 ii.J Property 1,000 0 1,000 ~ Total pupil health 313,245 322,749 9,504 ) ~ " ~ "" 1- ' 100 -27- '~'>'- ,;-",,,,,.. I CARLISLE AREA SCHOOL DISTRICT I SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGETANDACTUAL-GENERALFUND(CONnNUE~ I Year Ended June 30, 2001 VARIANCE FAVORABLE I BUDGET ACTUAL (UNFAVORABLE) EXPENDITURES I SUPPORT SERVICES - CONTINUED Business Salaries $ 269,106 $ 247,640 $ 21,466 . Employee benefits 58,109 69,137 ( 11,028 ) Purchased services: Professional and technical 31,560 41,869 ( 10,309 ) m Property 107,150 60,607 46,543 ,,'-; Other 6,500 1,397 5,103 Supplies 14,000 9,873 4,127 I \-,\ Property 27,500 39,091 11,591 ) :;:;;j Total business 513,925 469,614 44,311 I r) Operation and Maintenance of '-,;' Plant Services I Salaries 1,018,704 1,062,487 ( 43,783 ) Employee benefits 277,923 366,440 ( 88,517 ) Purchased services: ~ Property 921,000 829,297 91,703 Other 135,231 122,044 13,187 Supplies 926,550 1,019,024 92,474 ) ~ Property 45,000 20,621 24,379 '-1 ''.i Total operation and maintenance I'" plant services 3,324,408 3,419,913 ( 95,505 ) L Transportation Services Purchased services: ~ Other 1,574,333 1,673,163 ( 98,830 ) '~ -: ~ Supplies 2,000 2,276 ( 276 ) ~ Other objects 0 802 ( 802 ) Total transportation services 1,576,333 1,676,241 ( 99,908 ) ~ Central ",1 Salaries 2,257 0 2,257 Employee benefits 70 0 70 ~ li:,': Supplies 2,408 176 2,232 r Total central 4,735 176 4,559 I.J ~ ... -28- ~:' -.'-' ,," ,~ "~I ,-, Co;-" ',k~' '... .~'",.> ,,;- -'k'~, ,--,,' "'-;;.;:"ii,"'--~' "_' -<j'<-'\c,<;1 I I I I I I I,',' I f!!!,',' &I CARLISLE AREA SCHOOL DISTRICT SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGETANDACTUAL-GENERALFUND(CONnNUE~ Year Ended June 30, 2001 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) EXPENDITURES DEBT SERVICE Interest $ 450,579 $ 450,576 $ 3 Principal 1,610,000 1,610,000 0 CAIU debt service 0 1,060 ( 1,060 ) Total debt service 2,060,579 2,061,636 ( 1,057 ) II! IlL,',,' . OTHER FINANCING USES Transfers to other fund5 796,763 1,835,392 ( 1,038,629 ) Refund of prior years' receipts 0 99 ) 99 Budgetary reserve 33,000 0 33,000 Total other financing uses 829,763 1,835,293 ( 1,005,530 ) Total expenditures and other financing uses $ 38,603,564 $ 39,338,678 ( $ 735,114 ) m ~ p. lo; "',:' ~ lI!'! [. ~ !i.J I ! '" I ~.',',', ~ ~ I.. -30- "" I I I I I I !!l ~,~ : IOiI ~.;; .. I!l ," ! III m en i, r Lv r ~' lIio ~ (~' ' ~.:. ". . 1l!I.' i m.,..... , ~ ~ ~ Ii.. ""I ~ ... " ~ a .... o ~ '" ~ It <( "' .... !!l ~ ~ '" lE 3l <( ....~ ~~ "'0 o' ~'" & ~ 3 f3~ It{! i: = -"' ~ ~ OJ:: ~ & "'I': II. ~ o,f "' :3 ~ '" ~ '" e "'" -:::: <l.l <l.l N ~ t: = e i: ~ ~ f"'l c:..t <lol ... <l.l <e.~; ~ . " ." - " .2 " :s'~ = = ~t .:l'" ." " " = " = '= " .. > e " y '" " '" 1..__01 <:I "= e; 0 "= t: ~ ~ E ~ ii "" <lol;O'..... <e~~ - O! _ '; ~ ~ '0>>- ~.~ <l.l y,s ~ .. a g e e : ~ ..." = - - " .. ~ ~ -g~~ .5.: ~ .. = .. -= '~:6 o=~ '" .. = . - E "s .! -= -= s .... 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'" ~ m , Wi I ~.'. 1,_1, ~ 1J.i r' w . . I' -c "'~; ,', " 1,1, ;--i". '-,'" '."_"'__;'~i;;'i<;'" >...\-~~-,-j.-, -'-,' '""'.. ,,c, ",C-C,"":> ,-~ ,,' NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Note 1. References to Schedule of Expenditures of Federal Awards D - Direct funding I - Indirect funding S - State Share B - Based on USDA valuation Note 2. Determination of Major Programs Project Title CFDA No. Expenditures Percent ESEA Title I 84.010 $ 301,751 * 22.5% National school lunch/breakfast program cluster Breakfast program 10.553 34,961 Lunch program 10.555 241,485 Special Milk Program 10.556 5,702 282,148 * 21.0% Impact Aid 84.041 277,028 20.6% IDEA 84.027 190,725 14.2% Class size reduction 84.340A 83,274 6.2% Donated commodities 10.550 57,921 4.3% Vocational education 84.048 42,542 3.2% Adult basic education 84.002 29,367 2.2% Title VI 84.298 28,587 2.1% Drug free schools 84.186 24,146 1.8% Title II 84.281 19,655 1.5% Title III 84.318 6,123 0.5% GOALS 2000 84.276 140 0.0% Total federal expenditures 1,343,407 100.0% State expenditures 39,277 Total expenditures - Schedule of FF A $ 1,382,684 * Selected for testing as a "major program" under 25% rule for low risk auditees Significant Accounting Policies Basis of Accounting The schedule of expenditures of federal awards is presented using the modified accrual basis in accordance with accounting principles prescribed by the Pennsylvania Deparbnent of Education, which conform to generally accepted governmental accounting principles. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable. Revenues designated for payment of specific School District expenditures are recognized when the related expenditures are incurred. Any excess of revenues or expenditures at the fiscal year end is recorded as deferred revenue or a receivable, respectively. -34- "'" I I I I I f!'1.' IW , ~ m w !!!II il.. Ii. r ~ I..,., I r: ~ ~ ri l,o,; I.,.,.,. iJ P!".... [;\ ... I.. . I mm IPI tIIUI "" .. _""0 -_H -'00.<-. ~ '-".-1 " -,:.>; ";'_J;:'-"-"'; '--~'i!;;;"';:, <h'),"iiJ,";,~,,,,,-,,-,,,_,.,, , ',', ~'! c)E~ 8mith Elliott Kearns (jJ Company, LLC Certified Public Accountants @ Consultanls REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STA TEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Directors Carlisle Area School District Carlisle, Pennsylvania We have audited the financial statements of Carlisle Area School District as of and for the year ended June 30, 200 I, and have issued our report thereon dated September 24, 200 I. In our report, our opinion was qualified because general fixed assets are reported at replacement value rather than historical cost, and the financial statements do not include the internal service fund as described in Note 8 of the financial statements. 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 Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the School District's 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 detemrination 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 Carlisle 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. This report is intended solely for the information and use of the Board of Directors, management and 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. ~ ~ J:~ ~ ~~,LLc.. Carlisle, Pennsylvania September 24, 200 I -35- -"'" I I '.: iI I I I!'l....... i1 l\'\ [Z.d'..... ~ 1r1... !U m". ":'J -. Vi ~ 11'": j:'-' Iii,j r: I!i;i r W 1M 1;"1 ~ E I!'I'\ ~\ ~ Iliii E ~ , """ "" - -<~ " "~ --" """ " -", , ",-' ;.I~,."'''~'''';;''',),;o~d~-~' '" '-d_-,',~&"b~j.:~~',;,:v;;,""""" ii'-.., ; ;~ -;:_~_"~I 0E~ 8mith Elliott Kearns IJJ Company, LLC Certified Public Accountants @ Consultants REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Board of Directors Carlisle Area School District Carlisle, Pennsylvania Compliance We have audited the compliance of Carlisle Area School District with the types of compliance requirements described in the u.s. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2001. The 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 School District's management. Our responsibility is to express an opinion on the School District's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-I33, Audits of States, Local Governments. and NonProfit Organizations. Those standards and OMB Circular A-I33 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 School 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 School District's compliance with those requirements. In our opinion, Carlisle 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, 2001. Internal Control Over Compliance The management of Carlisle 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 School 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. -36- I I I I I I " iili m ~.. iJ I'!'! li"" t;; II i I!I! ~ m.. ,;-; ~,'" -'.1 m. ;~ " ;;,j I.,., fi I . . ~ I!!! 1,'" Iilri "'" ... c_ 'L' ~ -, ",_0" " " ,;~;-' ,-- ~""I-''''\..U''-'' ',-.'~"-,, .~ -"-~'-'~n,,'-d<"" '''eC''''],' "-~.' '-"<;>';;, - " "', '-/Gtii' [1' 0E~ 6mith Elliott Kearns (!J Company, LLC Certified Public Accountanu, (f1 Consultants Board of Directors Carlisle Area School District Our consideration of the internal control over compliance would not necessarily disclose an 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 solely for the information and use of the Board of Directors, management, and 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. ~~I:~i~~LLC Carlisle, Pennsylvania September 24, 200 I -37- I I I I I I rl ii I ~ ~ ~ EJ r1 "'" !": t." ... "".: tl':j t..i c m 1m. I D "" 1:::1 II: U "" , ... ",' r ~,'-,', : l ' _j,V' ~~ ,-,:..,~; '-;;';~, :.:-^,j' -'-~. n<i--,'~':"/~ -: ' . _.~- ~-, "Wd:! CARLISLE AREA SCHOOL DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2001 A. Summary of Auditor's Results I. The auditor's report expresses a qualified opinion on the general purpose financial statements of Carlisle Area School District. 2. No reportable conditions relating to the audit of the financial statements are reported in the "Report on Compliance and Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards". 3. No instances of noncompliance material to the financial statements of Carlisle Area School District were disclosed during the audit. 4. No reportable conditions relating to the audit of the major federal award programs is reported in the "Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133". 5. The auditor's report on compliance for the major federal award programs for Carlisle Area School District expresses an unqualified opinion. 6. There are no audit findings relative to the major federal award programs for Carlisle Area School District, as reported in Part C of this Schedule. 7. The programs tested as major programs are: ESEA Title I National School Luncb/Breakfast Program Cluster: Breakfast Lunch Special milk CFDA #84.010 CFDA #10.553 CFDA #10.555 CFDA #10.556 8. The threshold for distinguishing Types A and B programs was $ 300,000. 9. Carlisle Area School District was determined to be a low-risk auditee. B. Findings - Financial Statements Audit None C. Findings and Questioned Cost - Major Federal Award Programs Audit None -38- ;;':;'" -~ " """- - ~ ~I "~j ,"",.",.-.'-- ;,;, ~~ - _~"i~,""",-C' ''';;;-O;;'""<,,;,';'J>:',,,' \.,,~. '''~ ~--]>i:~ I I I I I II IIIiii CARLISLE AREA SCHOOL DISTRICT REPORT ON STA TUS OF PRIOR YEAR'S COMPLIANCE FINDINGS AND INTERNAL CONTROL WEAKNESSES Year Ended June 30, 2001 Findings from June 30, 2000 report: None "..,....1. ~ I!!I\ ~" ."". ,.." ~ ~: lO.i rI'l L r: !'.'. ! .. [I!!\ [j I!!I ~-~: .j Ii.J !l'1. ~,__i Ii;; I 'I'i! I ~ Ia [ ~ -39- ... "" I I I I I I.. I !l.i ~ ".....'..... ~ ~ W r\ t...1'. iO.i 1'1." ~ Im.i. ~ ~ LJ r: f:'!l.":: ~ ~. IJ ~ lliiJ r i.l """ i ... ~ '",' +' , " "'-"1--"' .. ,,-,,~__- i",~.o-"""""'<""~",'Th_;-~r,",,-,__ t~~;, ~E~ omith Elliott Kearn8 !9 Company. LLC Certified Public Accountants @ Consultants September 24, 2001 Board of Directors Carlisle Area School District Carlisle, Pennsylvania We have completed our audit of the general purpose financial statements of the Carlisle Area School District for the year ended June 30, 200 I, and have issued our report thereon dated September 24, 2001. We believe part of our responsibility, as your independent certified public accountants, is to bring to your attention matters for your consideration which may impact the operations of the School District. The following comments and suggestions cover such matters. Cafeteria Inventory Software During the audit it was noted that several reports could not be generated and/or printed from the current inventory software package used by the Cafeteria. The problems have occurred due to the software being outdated and no longer being serviced by the producer. We suggest that replacing this software be a high priority, so that the inventory can be maintained accurately and in compliance with federal guidelines. Interfund Loan Payable At June 30, 2001 the cafeteria fund owed the general fund $ 390,134 for benefits and payroll that has not been paid on their behalf over the past several years. We suggest the board consider forgiving the loan in total or develop a plans to do so over several years. The balance of this loan has been restricted in the general funds fund balance, recognizing that the ability of the cafeteria fund to repay is limited. New Accounting Pronouncements In June 1999 the Governmental Accounting Standards Board (GASB) approved GASB No. 34, Basic Financial Statements - and Management's Discussion and Analysis -for State and Local Governments. This 400 page document outlines the new reporting model, which will have a significant -40- I E I I I I. . I [I P'! I.'.)' ~ I!IIl m:.::il IiJ !:l Ilii 1M iU ~ f"1.'. rJ m P'I I;J 11'1.'.....<'... 5J 1f1., IJ IJ r' 16. I!I'i\ I ... ~", ~-~"'-"-,;..,~I"'?' ~~ , ,,",0 ~,,',.-", ,i'-;".,;~._: , ~_->i""#O~,_ 6E~ 0mith Elliott Kearns {jJ Company, LLC Certified Public Accountants (9 Consultants Board of Directors Carlisle Area School District impact on local governments, including school districts. The effective date for the District to apply GASB 34 will be for the year ended June 30, 2003 (although early implementation is encouraged). There will be significant work involved in the gathering and presentation of this information and we suggest that preparation for these changes be started in the near future. See our letter dated September 9, 1999 for a summary of these changes. We plan to work closely with management to make implementation of these changes as efficient as possible. This report is intended solely for the information and use of the Board of Directors and management and is not intended to be and should not be used by anyone other than these specified parties. We acknowledge and appreciate the courtesy and assistance extended to our representatives by the School District's personnel during our audit. We will be pleased to further discuss these comments and recommendations at your convenience. p~~~C~7,LL.<'- -41- ~4