The URL can be used to link to this page

Home My WebLink About99-00098 I I ~j ,,! ~l ) I ::---1 ~i ... ' _: ~! b.i ~f I Ii ~I ~I ~ BIG SPRING SCHOOL DISTRICT COMBINEO BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1998 ~. ~vernmental Fund Tvoe. Capi tal Capital General, AJ;hhtic BeserVll lIm2:U Assets Cash $ 420,733 $ 11,178 $ 288,399 $ 59,392 Investments, at cost 4,228,828 Due from ot.her funds 86,221 Accounts receivable 1,019,984 89 Delinquent taxes t'ecei vable (net of $ 412,305 allowance for uncollectibles) 450,000 Inventories of supplies 50,000 -, Food service equipment (net of $ 221,292 accumulated depreciation) Land, buildings and equipment Amount to be provided for general long,.term debt Total $ 6,255.766 $ 11. 267 $ 288.399 $ 59, 39.2- Liabilities Payroll and benefits payable $ 1,081,832 $ $ $ Accounts payable 225,489 489 61,009 1,500 Deferred revenue 384,810 Due to ot.her funds Due to student organizations , Bonds and notes payable Compensated absences Total liabilities _h..692,13l 489 ~.L..Q..Q.2 1,500 Fund equity Invested in inventories 50,000 Invested in general fixed asset s Fund balances/ retained earnings Reserved 57,892 Unreserved 4.513,635 10 ,778 227,390 Total fund equity ~3,635 10,778 227,390 57,B92 Total $ 6.255,766 $ 11.267 $ 288.399 $ S9.39~ The accompanying notes are an integral part of these financial st.atements. . 2 . BIG SPRING SCHOOL DISTRICT STATEMENT OF REVENUE, EXPENDITURES AND CHANClES IN FUND BALANCES - ACTUAL AND BUDGET GENERAL AND ATHLETIC FUNDS YEAR ENDED JUNE 30, 1998 Total revenue GeneraL_ ~ Varillnce ~'avorable bctual Eiudqet (Unfavorable) $ 10,104,584 $ 9,479,110 $ 625,474 $1,797,912 9,675,068 122,844 265,507 330,115 (44,608) 11 , 385 11.385 20,199.388. l.2.d~i.2ll -7],L..Qll Revenue Local sources State sources Federal sources Other financing sources Expenditures Instruction Regular programs Special programs Vocational education programs Other instructional programs Adult education progl'ams Total instruction 9,340,814 9,409,390 68,576 2,211,784 2,217,572 5,788 441,967 449,393 7,426 585,893 585,941 48 -..kl~ 3 ,331 97.l 12 ,582 ,816 li&65 ,627 82,811 508,546 512,974 4,428 6Sll,688 714,166 22,478 1,286,114 1,289,384 3,270 160,424 160,430 6 367,197 381,6'70 14,473 1,736,836 1,762,551 25, 715 1,355,523 1,355,897 374 50 , 020 51.857 1,837 ...LJ..2.2_I..H~ 6,228,92~ 72.56l Support services Pupil personnel Instructional staff Administration Pupil health BUsiness Operation and maintenance of plaqt services Student transportation services Other support services Total Support services (Continued) .. 4 - Athletic .. --- Variance Favorable Actual Budoet (Unfavorable ) $ 43,648 $ 42,700 $ 948 316,594 322,306 (~,711) 360,242 365 ,006 (4,761) . -~ -0- -0- ..0.. -0- -0- -0- BrG SPRING SCHOOL DISTRICT STATEMENT OF REVENUE, E~PENSES AND CHANGES IN FUND BALANCE/RETAINED EARNINGS FOOD SERVICE FUND YEAA ENDED JUNE 30, 1998, Operating revenue Sdlls $ 561.129 Operating expenees Salaries and wages Employee benefits Food and milk General supplies Repairs and maintenance Utilities and fuel Depreciation 313,913 130,778 335,317 17,676 13,195 35,000 23,0~ Total operating expenses 868 , 9H Operating loss (307.812 ) Nonoperating revenue State sources Meal subsidies Social security and retirement subsidies f'ederal sources Meal subsidies Donated commodit.ies Interest earned Total nonoperating revenue 18.697 23, 497 167,46!i 42,87.9 S.93i, 258,472. (49,340) 28,000 (21,340) 196,577 $ 175.237 Loss before transfers Fund transfers General Fund contributed services Net loss FUlld balance/retained earnings, July 1, 1997 Fund balance/retained earnings, June 30, 1998 The accompanying notes are an integral part of these financial statements. - 6 - BIG SPRING SCHOOL DISTRICT STATEMENT OF CASH FLOWS FOOD SERVICE ~UND YEAR ENDED JUNE 30, 1998 Operating activities Operating 1088 A~justments to reconcile operating loss to net cash used in operating activities Depreciation Decrease (increase) in assets Accounts receivable Inventories Increase (decx'ealle) in liabilities Payroll and benefits payable Accounts payable Defer'red revenue Due to other funds Compensated abllences $ (307,812) 23,062 (2,333) (3,417) (7,137) 35,737 4,797 81,961 7.40;1. Net cash used in operating activities (16'" HI) Non oapital financing act.ivities Grants and subsidies Stilte sources Federal sources Fund transfers (General Fund oontributed services) Net cash provided by non capital financing activities 42,194 210,344 28,000 280,538 (8,492) (4,060) 5,lli (6. 91il, 106,179 9,638 $ 115.817 Investing activities Purchase of equipment Increase in investments Interest earned Net cash used in investing aotiv.ities Net increase in cash Cash, July 1, 1997 Cash, June 30, 199B The accompanying notes are an integral part ot,these financial statements. - 7 - BIG SPRING SCHOOl. DISTRICT NOn:s TO FINANCIAL STATEMENTS JUNE 30, 1998 1. Reporting entity Big Spring School District is the l~vel of government which has ovet'Bight responsibility and control over activHies related to publir. school education. The report includes service" provided by the District to residentB.within its boundaries: the Cumberland County Townships of Cooke, Lower Frankford, Upper Frankford, Lower Mifflin, Upper Mifflin, North Newton, South Newton, Penn and West Pennsboro, and the Borough of Newville, Services provided include a comprehensive curriculum for primary and secondary education as well as special education and vocational education programs. The District. receives revenue from local, state and federal source" and mu"t comply wi th t.he requirements of these funding sources. Criteria established in Governmental Account.ing Standards Board Statement Number 14 were used in determining t.he entitie" to be induded in the reporting entity. These criteria include basic items such as finandal interdependency, selection of governing authori t.y, designat ion of management, ability to signific:antly influence operations, accountability for fiscal matters, scope of public Borvice and special financing relationohips. All operations of the District are included in the reporting entity, There are no component uni ts that meet the above cri teria for inclusion in this reporting entity. However, the District is a participant in two jointly"governed operations, each of which is a separate legal entit.y that offers educational services to the District and its residents. Each entity serves several school districts, so the following entities are not included in this reporting entity. Capital Area Intermediate Unit provides special education services and programs. Cumberland-Perry Area Vocational-Technical School provides vocational and technical education services and programs. 2. Summary of significant accounting policies The accounting records of Big Spring School District are maintained on the basis of accounting practices prescribed or permit.ted by the Manual of Accounting and Related Financial Procedures for Pennsylvania School Systems, issued by the Pennsylvania Depllrtment. of Educat.ion in accordance with t.he provisions of the School Laws of Pennsylvania. These practices are in conformity with generally accept.ed account.ing principles as applicable to governmental units, A summary of t.he more significant accounting polIcie" is as follows: Fund accounting The accounting records of the District are organized on the basis of fund types and account groups. Each fund type may consist of several different funds. Each fund is a aeparate entity '....ith 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 Big Spring School District are as follows: - 8 - BIG SPRING SCHOOl. DISTRICT NOTES TO FINANCIAL STATEMENT ICont' d. l JUNE 30, 1998 2. Summary of significant accounting policies ICont' d.) BllSis of presentation (Cont'd.l FiduciarY......fund Types (Trust and Aoencv Fundal - These funds use a modi fled accrual method. They are custodial in nature (assets equal liabilities), and are not involved with the measurement of results of operations (revenues and expenditures 1 . account Groupll. - Land, buildings and equipment are presented at coat. Depreciation is not. computed on these assets. Additions and disposals had been estimated since the previous outside valuation report, which was performed in 1992. As of July 1997, the District obtained an updated report which is to be revised annually for additions and disposals. Long-term debt is offset by an amount to be provided by future taxation or other revenue sources. General obligat. ion bonds and notes payable in future years are recorded as Dist.rict debt. Interest on these bonda and notes is recognized when such interest is due. Compensated absences (those for which employees receive pay) are presented using the termination payment method. A liability is computed using estimates which apply historical data to current factors, The District maintains records of unused leave and applies the contracted rate for employees eligible for terminat.ion payments, The District allows only restricted sabbatical leave and t.herefore does not present any liability in advance of the sa.bbatical. Budge t s l'he District adopts, prior to the beginning of each fiscal year, an annual budget for the General Fund and Athletic Fund. {, 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 oategories) as necessary. Unused appropriations expire at the end of each year. Revenue - Local sources Real estate, oocupation, residence and per capita taxes are levied as of July 1 with a legal, enforceable claim against the taxpayer' and/or property. These taxeo are recognized as revenue when received during the fiscal year and also estimated to be received within sixty days after the end of the fiscal year. Amounts estimated to be received between sixty days and one year after the end of the fiscal year are recorded as deferred revenue. An allowance for uncollectibles is recorded for taxes estimated not to be collectible within one year after the end of the fiscal year. Other tax revenues, including taxpay..r-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. - 11 - BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMEN1'S (Cant' d, ) JUNE 30, 199B 2, Summary of IIignificant accounting policies (Cont' d.) Revenue State sources State subsidie~ due the District as current fiscal year entitlements are recognized as revenue ill the current fiscal year. Revenue - Federal sources Federal program fUnds applicable to exp~nditures in the current fiscal year but expected t.o 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 respeotive statements of revenue and expenditul'es/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. Pension plan Substantially all full-time and part-time employees of the Dilltrict participate in a cost-snaring multiple employer defined benefit pension plan. The District recognizes expenditures or expenses equal to its contractually-required contributions, subject to the modified accrual basis of accounting in governmental funds, 3, Cash and investments Cash (other t.han $ 80 cash on hand) consists of checking accounts in tinancial institutions and pooled funds in which the Dist.rict owns a prorat.a share of the fund assets and is categorized as follows: Carrying Bank _.-Y.~ Balance Insured (f'DIC) $ 259,392 $ 259,392 Collateral held in the District' B name -0- -0- CoUateral not held in the District's name 280.480 300.0~5 539,872 559,487 Poo 1 ed funds 495,629 996,432 $ 1.035.501 $ 1,555.919 - 12 - RIO SPRING SCllOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1998 3. Cash and investments (Cont'd.) For purposes of the Food Service Fund statement of caoh flows, cash consist, of Ii checking account and pooled funds. Investments are as follows: Pennsylvania Local Government Investment Trust $ 4.307,56~ The investments, whose market value approximates cost due to the short term nature of the investments, are categorized as follows: Insured (FDIC) Collateral held in the District's name Collateral not held in the District's name Pooled investments $ -0- -0- -0- ..0 - 4,307,560 $ 4,307,560 The types of authorized investments are limited by state regulations. Investment policies followed during the year did not significantly alt.er the categorization of investments shown above. 4, Accounts receivable Accounts receivable are as follows: General Athletic Food Service Fund - Fund Fund Local sources Earned income taxes $ 545,288 $ $ Other revenue items 151,703 1,811 State sources 248,676 2,317 Federal sources 23,456 20,659 Other items 50,861 89 $ 1.019,994 $ 89 $ 24. 7 8 7 - 13 - BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, lY98 5, Delinquent taxes receivable Delinquent taxes receivable and the related deferred revenue are ~s follows. Real estate taxes $ Occupation, residence and per capit.a t.axes Delinquent taxes receivable Allowance for taxes estimated not to be collectible within one year Estimated t.o be collectible wit.hin one year Estimated to be collectible within sixty days 427,493 434,812 862,305 412,305 450,000 100,OQO Deferred revenue, delinquent taxes $ 350.000 6. Land, buiJ.dings and equipment Changes in land, buildings and equipment were as follows. Adjust to July 1997 July 1, 1997 Valuation Additions J1i..!!P.2!W June 30, 199B Land and improvements $ 325,000 $ 1,110 $ -0- $ $ 326,110 Buildings and systems 12,175,000 757,900 75,000 13,007,900 Equipment 6.500,000 (3.734,741) 525,000 3.290,259 General fixed asset.. $ 19.000.000 $ (2. 975.73~) $ 600.000 $ -0- $ 16,624.i.i2 Food service equipment $ 369,W $ -0- $ 8.492 $ (7,000) $ 371.093 The above amounts include approximately $ 230,000 for the District's Jacksonville and Centerville properties. The District is in the. process of selling these prope~ties for approximately $ 190,000, pending all necessary approvals. 7. Bonds and notes payahle Changes in bonds and notes payable were as follows: Qugintion Scheduled July 1.-122l Redemotions June 30, 19~ General obligation notes, 1997 Series $ 4,965,000 $ (385.000) $ 4.580.000 - 14 - BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.l JUNE 30, ,199a 7. Bonds and notes payable (Cont'd.) The notes, which bear interest at the fixed rate of 5.075\, are not subject to prepayment prior to the stated mandatory maturity dates. Scheduled debt service requirements are as follows: Year ElIding June 30 Principal Int.erest I2U! 1999 $ 195,000 $ 232,435 $ 427,435 2000 350,000 222,539 572,539 2001 365,000 204,776 569,776 2002 385,000 186,253 571,253 2003 405,000 .166,714 571,714 2004 - 2009 2 ,880,000, 533,382 3.413,382 $ 4.580.0Q.Q $ 1.546.099 $ 6.126.099 e, Compensated absences Changes in compensated absences were as follows: July 1 , 1997 Net Chanae June 30, 1998 General Long-Term Debt Teachers $ 556,228 $ (2,881) $ 553,347 Custodians 71,318 (12,729) 58,589 Secretaries 70,619 2,637 73,256 Aides 15,689 701 16,390 Administrators 4a,8,19 _16,309 --.S..Wll $ 762,673 $ - 4,037 $ 766.710 Food Service Fund $ 77,736 $ 7.401 $ 85.137 Payments for compensated absences recorded in GeneI'd Long-TlOrm Debt are made throllgh General Fund expend,Hures in the year the absence h taken or the employee retit'es. At retirement or death, while in School District service, employees (with at least 10 years service in the School District) or their beneficiaries shall choose one of the following options (subject to a maximum of $ 12,000 for administrators and $ 6,500 for all other employees 1 : 1, Accumulat.ed unused sick leave days times $ 50 per day 2. Number of full years of service in the District t.imes $ 150 per year - 15 - BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont' d. ) .JUNE 30, 1998 g. hn8~on plan The District contributes to a governmental cost-sharing multiple-employer defined benefit pension plan administ.ered by PSERS. Benefit provisions of the plan are established under the provisions of the PSERS Code (the Codel and may be amended by an act of the Pennsylvania State Legislature, The plan provides retirement, disability and deat.h benefits, legislat.ively mandat.ed ad hoc cost.-of-living adjustments, and healthcare insurance premium assistance to qualifying plan members and bE:neficiaries. It also provides for refunds of a member's accumulated contribut.ion upon terminat. ion of a member's employment in the public school sector. PSERS issues a publicl y available financial report. that includes financial statements f.or the plan. That report may be obtained by writing to PSERS, P.O. Box 125, Harrisburg, PA 17108-0125. The contribution policy is set by the Code and requires contributions by active employees and by pal'ticipat ing employers. Plan members are required to contribute 5.25 percent of their compensation if they joined the plan before July 22, 1983, and 6,25 percent. if t.hey joined on or after that date. The contributions required of part.icipating employers is based on an actuarial valuation and is expressed as a percentage of annual covered payroll during the period for which the amount is determined. Districts pay the entire employer contribution rate and are reimbursed by the Commonwealth in an amount equal to t.he Commonwealth's share as determined by the income aid 1;atio (as defined in Act 29 of 1994), which is at least one-half of the total employer rate. The District's contributions to PSERS fr,>r the years ending June 30, 1990, 1997 and 1996 were $ 995,585, $ 1,175,594 and $ 1,196,647, respectively. Those amounts are equal to the required contribution for each year. 10. Postemployment benefits other than pension benefits , Under the negotiations agreement with Rig Spring Education Association, the District shall provide for continuance of health care insurance after retirement until age 65. This health care insurance shall be at the retiree's expense, except that employees who retire after thirty or more years with the District, shall have up to five years of health care insurance benefits provided on t.he basis of the District. paying 50% of the cost and the retiree paying 50% of the COst. The District finances this benefit on a pay-as-you-go basis. For the year ended June 30, 1998 the District incurred a total cost of $ 25,207 to provide this benefit to 20 participants. - 16 -