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HomeMy WebLinkAbout99-07615.u 6'9 14 1 ^g rl `J z 3 aGJ ir!{ y4" it ? 1 YI )1 4' OR I® 10 Ir Ir 10 ' r gmelfawalf cg eoltlwalfy, p e 0 CJ CAMP HILL, PENNSYLVANIA CAMP HILL SCHOOL DISTRICT JUNE 30, 1999 A !O 10 IQ to 0 INDEX Page Number 1 Independent auditors' report Combined balance sheet - all fund types and account groups - June 30, 1999 ? 2 Combined statement of revenue, expenditures p and changes in fund balances - All Governmental Fund Types - year ended June 30, 1999 3 Combined statement of revenue, expenditures and changes in fund balances - budget and actual - General Fund and Athletic Fund - Q year ended June 30, 1999 4 - 5 Combined statement of revenue, expenses and changes in retained earnings/fund balances - Proprietary Fund Types and Nonexpendable Trust Funds - year ended June 30, 1999 6 Combined statement of cash flows - Proprietary Fund Types and Nonexpendable Trust Funds - year ended June 30, 1999 7 Notes to financial statements - June 30, 1999 } 8 - 20 Required supplementary information 21 - 22 J GREENAWALT & COMPANY, P.C. CERTIFIED PUBLIC ACCOUNTANTS JAMES E LYONS P.O. Box 6 400 WEST MAIN STREET HOWARD R. GRONAWALT CAPFDON R. HOFFMAN MCC IICSOURG. PENNSYLVANIA 17055 JOHN H. KUNGLFR DOX)RAJI 1. KELLY 17171 7666763 R. A. GREENAWALT (19* OAS) FAX 17171766-2731 A. A. REIDI LAGER METIRED) C. EDWARD ROGERS. JR. 7 INDEPENDENT AUDITORS' REPORT Board of School Directors Camp Hill school District Camp Hill, Pennsylvania 62 WEST POMIRET STREET CARLISLE, PA 17013 (717) NNR22 FAX (717) 21R 7172 We have audited the accompanying general purpose financial statements of Camp Hill School District as of June 30, 1999 and for the year then ended, as listed in the preceding index. These general purpose financial statements are 'l 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 generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general-purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit J provides a reasonable basis for our opinion. In our opinion, the accompanying general purpose financial statements present fairly, in all material respects, the financial position of Camp Hill School District as of June 30, 1999, the results of its operations and the cash flows of its Proprietary Fund Types and Nonexpendable Trust Funds for the year then ended, in conformity with generally accepted accounting principles. C, GREENAWA COM P.C. October 1, 1999 Mechanicsburg, Pennsylvania 0 - 1 - C) MEMBERS - AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOU`t<ANTS - PENNSYLVANIA INSTM!TE OF CERTIFIED PUBLIC ACCOUNTANTS CAMP HILL SCHOOL DISTRICT COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1999 Assets and other debits Cash and cash equivalents Investments Delinquent taxes receivable (net of allowance for uncollectibles of $ 514,357) Due from other funds Intergovernmental accounts receivable State subsidies receivable Federal subsidies receivable other accounts receivable Loans receivable - related parties Land and buildings Furnishings and equipment Food service equipment (net of accumulated depreciation of $ 26,271) Amounts available in debt service funds Amount to be provided for the retirement of general long-term debt Total assets and other debits Liabilities and other credits r Governmental Fund Types Special Capital General Revenue Proiect $ 66,360 $ 20,827 $ - 1,463,933 - 872,961 248,571 - - 1,766 - - 20,061 - - (7 77,830 - - 48,350 - - 461,601 - - 19,538 - - $ 2,408,010 $ 20,827 $ 872,961 (1 Accrued payroll and benefits $ 560,326 $ - $ - Accounts payable 81,512 1,283 44,320 Deferred tax revenues 188,509 - - Q Due to other funds - - " Prepayments from persons or firms 11,897 - - Due to student organizations - ' General obligation notes payable - Accumulated compensated absences - - - 0 Total liabilities 842,244 1,283 44,320 Fund equity invested in general fixed assets - - - Retained earnings - - - Specific fund balance reserves - - 828,641 Unreserved fund balances 1,565,766 19,544 - Total fund equity 1,565,766 19,544 828,641 Total liabilities and other credits $ 2,408,010 $ 20,827 $ 872,961 The accompanying notes are an integral part of these financial statements. 2 - n Proprietary Fund Types Fiduciary Fund Types Account Groups Debt Food Agency General General Service Service Trust (Activities) Fixed Assets Long-Term Debt Ql $ 370 $ 7,885 $ 39,955 $ 82,026 $ - $ - - 523 - - - 4,927,649 - 4,227,273 - - 1,024 - - 370 ' 5.002.084 $ 370 $ 9,432 $ 39,955 $ 82,026 $ 9,154,922 $ 5,002,454 - 1,766 - - - 82,026 - - - 4,765,000 - - - 237.454 Ism -0- 1,766 -0- 82.026 -0- 5,002,454 _ - 9,154,922 - - 7,666 - - Q) 370 - 39,955 370 7,666 39.955 -0- 9.154.922 -0- i ' $ 370 $ 9,432 $ 39.955 $ 82,026 $ 9,154,922 $ 5,002,454 f k O 0 10 10 10 10 BJ CAMP HILL SCHOOL DISTRICT COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1999 Revenue Local sources State sources Federal sources Total revenue Expenditures Instruction Support services operation of noninstructional services Facilities acquisition, construction and improvements Debt service Principal payments Interest Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses) Interfund transfers in Refunds of prior years' expenditures sale or compensation for loss of fixed assets Interfund transfers out Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other financing uses Fund balances, July 1, 1998 Fund balances, June 30, 1999 Special Capital Debt General Revenue Proiects Service $ 8,166,768 $ 14,165 $ 39,113 $ - 1,340,841 - - " 87,810 - 9,595,419 14,165 39,113 -0- 5,844,185 - - - 2,638,072 - - - 239,798 100,882 - - 45,627 - 422,888 - 275,910 - - - 224,389 - 9,267,981 100,882 422,888 -0- 327,438 (86,717) (383,775) -0- - 83,000 400,000 166,738 - - 400,000 - - - (520,453) - - - 46,285 83,000 400,000 -0- 373,723 (3,717) 16,225 -0- 1.192,043 23,261 812,416 370 $ 1,565,766 $ 19,544 $ 828,641 $ 370 The accompanying notes are an integral part of these financial statements. - 3 - CA14P HILL SCHOOL DISTRICT COMBINED STATEMENT OF REVENUE, EXPENDITURES MID CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND AND ATHLETIC FUND YEAR ENDED JUNE 30, 1999 General Fund Variance Favorable Budget Actual (Unfavorable) Revenue Local sources $ 7,949,775 $ 8,166,768 $ 216,993 State sources 1,267,105 1,340,841 73,736 Federal sources 79,300 87,810 81510 Total revenue 9,296,180 9,595,419 299,239 Expenditures Instruction Regular programs 4,655,659 4,653,614 2,045 Special programs 808,243 802,851 5,392 Vocational education programs 51,190 51,177 13 Other instructional programs 256,232 236,003 20,229 Community College education programs 106,000 100,540 5,460 Total instruction 5,877,324 5,844,185 33,139 Support services Pupil personnel 465,348 459,815 5,533 Instructional staf f 335,076 314,344 20,732 Administration 689,063 674,600 14,463 Pupil health 130,521 122,805 7,716 Business 177,172 163,079 14,093 Operation and maintenance of plant services 835,824 822,131 13,693 Student transport at ion services 51,200 51,140 60 Central 9,134 9,134 - Other 21,086 21,024 62 Total support services 2,714,424 2,638,072 76,352 ii ?I i (Continued) - 4 - i ? i I Athletic Fund Variance j Favorable Budget Actual _(Unfavorable) I $ 10,000 $ 14,022 $ 4,022 10.000 14.022 4.022 -0- -0- -0- l7 ;J _0_ _0_ _0_ 'J ? R s III I? I CAMP HILL SCHOOL DISTRICT COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND AND ATHLETIC FUND (Cont'd.) YEAR ENDED JUNE 30, 1999 Expenditures (Cont'd.) Operation of noninstructional services Student activities Community services Total operation of non- instructional services Facilities acquisition, construction and improvement services Debt service Total expenditures Excess of revenue over (under) expenditures other financing sources (uses) Interfund transfers in Refunds of prior years' expenditures Sale or compensation for loss of fixed assets Interfund transfers out Budgetary reserves Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other financing uses Fund balances, July 1, 1998 Fund balances, June 30, 1999 General Fund Variance Favorable Budget Actual (Unfavorable) $ 235,122 $ 227,586 $ 7,536 19,750 12,212 7,538 254,872 239,798 15,074 47,200 45,627 1,573 501,180 500,299 881 9,395,000 9,267,981 127,019 (98,820) 327,438 426,258 135,746 166,738 30,992 - 400,000 400,000 (151,625) (520,453) (368,828) (23,279) 23,279 (39,158) 46.285 85,443- (137,978) 373,723 511,701 e 848,314 - 1,192,043 343,729 $ 710,336 $ 1,565,766 $ 855,430 The accompanying notes are an integral part of these financial statements - 5 - 01 oI 0 Athletic Fund Variance 0 Favorable Budget Actual (Unfavorable) .D 10 110 'II ! I{ l J II ;v $ 117,160 $ 97,882 $ 19,278 160 7 882 97 19,278 , 11 , 0- -0- -0- - -0- -0- -0- 160 17 97,882 19,278 , 1 160) 07 860) (83 23,300 , (1 , 107,160 80,000 (27,160) 160 107 80,000 (27,160) , -0_ (3,860) (3,860) -0- 15.438 15.438 $ -0- $ 11,578 $ 11,578 B ; -% IQ CAMP HILL SCHOOL DISTRICT COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCES n PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 1999 Proprietary Fiduciary Fund Type Fund Tyne Food Nonexpendable Service Trust Funds Operating revenue Local sources - food service revenue $ 97,160 $ - Local sources - donations - 75 Total operating revenue 97,160 75 Operating expenses Food and milk 60,061 - Salaries and wages 60,513 Employee benefits 13,409 - Materials and supplies 2,554 - Depreciation 890 - Scholarships - 1,175 Total operating expenses 137,427 1,175 Operating income (loss) (40,267) (1,100) Nonoperating revenue (expenses) Interest income 128 2,022 State sources 3,532 - Total nonoperating revenue (expenses) 3,660 2,022 Income (loss) before transfers (36,607) 922 J Fund transfers General Fund contributed services 37,453 -0- Net income (loss) 846 922 Retained earnings/fund balances, July 1, 1998 6,820 39,033 Retained earnings/fund balances, June 30, 1999 $ 7,666 $ 39,955 The accompanying notes are an integral part of these financial statements. - 6 - '.a .l I'D i!o if I CAMP HILL SCHOOL DISTRICT COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 1999 Cash flows from operating activities $ Operating income (loss) Adjustments to reconcile operating loss to net cash provided by (used for) operating activities Depreciation General Fund contributed services Decrease (increase) in due from other funds Accounts receivable increase (decrease) in due to other funds Net cash used for operating activities Cash flows from noncapital financing activities State subsidies - social security and retirement reimbursements Cash flows from investing activities Earnings on investments Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, July 1, 1998 Cash and cash equivalents, June 30, 1999 Supplemental disclosure of nonfinancial activities General Fund contributed services Proprietary Fund Tvoe Food Service Fiduciary Fund Type Nonexpendable Trust Funds (41,060) $ (1,100) 890 - 37,453 - 1,766 - (523) (1,275) (1,474) (2,375) 3,532 -0- 128 2,022 2,186 (353) 5,699 40,308 $ 7,885 $ 39,955 $ 37,453 $ -0- The accompanying notes are an integral part of these financial statements, - 7 - 9 -u Q CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 1999 O 1. Reporting entity Camp Hill School District is the level of government which has oversight responsibility and control over activities related to public school education. The report includes services provided by the District to residents within the boundaries of the Borough of Camp Hill. Services provided include a comprehensive curriculum for primary and secondary education as well as special education and vocational education programs. The District receives revenue from local, state and federal sources and must comply with the requirements of these funding sources. Criteria established in Governmental Accounting standards Board Statement Number 14 were used in determining the entities to be included in the reporting entity. These criteria include basic items such as financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations, accountability for fiscal matters, scope of public service and special financing relationships. All operations of the District are included _ in the reporting entity. Based on the foregoing criteria, the District has not included any component units in the reporting entity since no component units fully meet the criteria for inclusion. The District is a participant in three jointly-governed operations, each of which is a separate legal entity that offers educational services to the District and its residents. Each of these entities serves many school districts and are therefore not included as part of Camp Hill School District's reporting entity. These other entities are as follows: Capital Area Intermediate Unit - provides special education services and programs. 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. Iv - 8 - I 0 CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1999 2. Summary of significant accounting policies The accounting records of Camp Hill School District are maintained on the basis of accounting practices prescribed or permitted by the Manual of Accounting and Related Financial Procedures for Pennsylvania School Systems, issued by the Pennsylvania Department of Education in accordance with the provisions of the School Laws of Pennsylvania. These practices are in conformity with generally accepted accounting principles as applicable to governmental units. A summary of the more significant accounting policies follows. Fund accounting The accounting records of the District are organized on the basis of fund types and account groups. Each fund type may consist of several different funds. Each fund is a separate entity with self-balancing accounts which comprise its assets, liabilities, fund balance/ retained earnings, revenues and expenditures/expenses as appropriate. The fund types and the account groups utilized by Camp Hill School District are as follows: U Governmental Fund Tvoes Governmental Funds are those through which most governmental functions of the School District are financed. The acquisition, use and balances of the School District's expendable financial resources and the related liabilities (except those accounted for in proprietary funds) are accounted for through governmental funds. The measurement focus is upon determination of changes in financial resources, rather than upon net income determination. The funds included in this category are: General Fund - The General Fund is used to account for all financial transactions not accounted for in another fund. Revenues are O primarily derived from local property, per capita, residence, occupation and earned income taxes, and State and Federal distributions. Many of the more important activities of the School District, including instruction, administration of the School District and certain noninstructional services are accounted for in this fund. Special Revenue Fund - Special Revenue Funds are used to account for the proceeds of specific revenues that are restricted to expenditures for specified purposes. I <i - 9 - I10 No I !) 10 CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1999 2. Summary of significant accounting policies (Cont'd.) Fund accounting (Cont'd.) Governmental Fund Tvoes (Cont'd.) 10 10 Capital Projects Fund - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of capital facilities. Debt Service Fund - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt, principal, interest and related costs. Proprietary Fund Tunes Proprietary Funds account for operations that are financed and operated in a manner similar to private business enterprises: 10 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 10 10 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 entities. Nonexpendable Trusts are accounted for in essentially the same manner as Proprietary Funds. Agency Funds are custodial in nature and do not involve measurement of the results of operations. Trust Accounts - Account for contributions to and interest earnings on scholarship funds donated to the District, and for payments of scholarship funds to selected students. 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. QJ - 10 - Q% CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1999 2. Summary of significant accounting policies (Cont'd.) Fund accounting (Cont'd.) Account Groups Account groups are not funds. They are only concerned with the measurement of financial position and are not involved with the measurement of results of operation. General Fixed Assets - accounts for the District's investment in land, buildings and equipment. General Long-Term Debt - accounts for notes, bonds, capital leases and J compensated absences payable in future years. 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 a expenditures are recognized. Governmental Fund Tvpes These funds are accounted for using a "current financial resources" measurement focus (a modified accrual basis of accounting). Revenues are recorded when susceptible to accrual (both measurable and available). Available means collected within the current period or soon enough thereafter to pay current liabilities. Expenditures are generally recognized when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which is recognized when due. Disbursements for inventory type items and prepaid expenses are considered expenditures at the time of purchase. Fiduciarv Fund Types Trust and Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. These funds are accounted for in essentially the same manner as Governmental Funds. 19 - 11 - i l? t_t.M? No CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1999 NO 2. Summary of significant accounting policies (Cont'd.) Basis of accounting (Cont'd.) Proprietary Fund Types 110 AO The Food Service Fund uses the accrual method of accounting. This fund accounts for operations using accounting pronouncements required for private business enterprises, unless those pronouncements conflict with or contradict governmental accounting pronouncements. Food service equipment is capitalized, with depreciation (computed on the straight-line method using estimated useful lives of 5 to 12 years) recorded as an operating expense. Account Groups 14) 10 1m Land, buildings, furnishings and equipment are recorded at cost, or at estimated historical cost for those items for which the original cost is unknown. Depreciation is not computed on these assets. Long-term debt is offset by an amount to be provided by future taxation or other revenue sources. General obligation notes payable in future years are recorded as District debt. Interest on these notes is recognized when such interest is due. Compensated absences (those for which employees receive pay) are recorded using the termination payment method. A liability is recorded through the use of estimates which apply historical data to current factors. The District maintains records of unused leave and applies the contracted rate for employees eligible for termination payments. The District allows only restricted sabbatical leave and therefore has no recorded liability in advance of the sabbatical. Cash and cash equivalents 10 46 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 each year. Because the District did not adopt a budget for all Special Revenue Funds, the actual-to-budget comparison for Special Revenue Funds contains information for the Athletic Fund only. - 12 - 0 0 CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) f7 JUNE 30, 1999 2. Summary of significant accounting policies (Cont'd.) n Revenue - Local sources Real estate, per capita, residence and occupation taxes are levied as of July 1 with a legal, enforceable claim against the taxpayer and/or property. These taxes are recognizable as current revenue when received by the District during the fiscal year and also estimated to be received by the District within sixty O days after the close of the fiscal year. Amounts estimated to be received between sixty days and one year after the end of the fiscal year are recorded as deferred revenue. An allowance for uncollectibles is recorded for taxes estimated not to be collectible within one year after the end of the fiscal year. I Other tax revenues, including taxpayer-assessed revenues such as earned income 0 taxes, are recognized as revenue when received during the fiscal year or soon enough thereafter to be susceptible to accrual. Revenue - State sources 10 State subsidies due the District as current fiscal year entitlements are recognized as revenue in the current fiscal year. Revenue - Federal sources Federal program funds applicable to expenditures in the current fiscal year but expected to be received in the next fiscal year are recognized as revenue in the current fiscal year. Program revenue received in advance of the expenditure of program funds are deferred until such expenditures are incurred. Pension plan Substantially all full-time and part-time employees of the District participate © in a cost-sharing multiple employer defined benefit pension plan. The District recognizes expenditures or expenses equal to its contractually-required contributions, subject to the modified accrual basis of accounting in governmental funds. Inter-fund transactions Expenditures by the General Fund for the benefit of other funds are 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. a - 13 - 40 0 CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (COnt'd.) JUNE 30, 1999 n 3. Cash and investments The District's cash and cash equivalents consist of cash balances deposited in financial institutions. In addition, the District has pooled liquid investment accounts which are invested in qualified securities through the Pennsylvania Treasury INVEST Program. The cash and cash equivalents at June 30, 1999 are categorized as follows: Carrying Value Change funds Insured (FDIC) Collateral held in the District's name Collateral not held in the District's name Pooled liquid accounts Total $ 535 107,966 68,379 40,543 $ 217,423 Bank Balance 107,966 122,613 40,543 $ 271,122 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. 0 3. Uninsured and unregistered, with securities held by the counterparty or by its trust department or agent but not in the District's name. This includes public funds which are secured by pooled collateral as permitted by Act 72. The investments, whose market value approximates cost due to the short term nature of the investments, are categorized as follows: Insured $ _ Collateral held in the District's name Collateral not held in the District's name -0- Pooled inveatments (Pennsylvania Treasurer's INVEST program for local governments) 2,336.894 $ 2,336,894 The types of authorized investments are limited by State regulations. Investment O policies followed during the year did not significantly alter the categorization of investments shown above. - 14 - uo 6'A 10 10 to O CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd) JUNE 30, 1999 4. Delinquent taxes receivable As explained in Note 2, taxes are recorded as revenue only when received, or, in the case of delinquent real estate taxes, available within sixty days. The remaining balance of delinquent taxes receivable are recorded as deferred revenue in accordance with school accounting policies. Deferred tax revenue amounted to $ 188,509 at June 30, 1999. Delinquent taxes receivable as reflected on the June 30, 1999 balance sheet consist of the following: 1990-91 and prior years 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 Less: Allowance for uncollectibles Total Total Real Estate Personal $ 102,386 $ - $ 102,386 24,822 - 24,822 46,748 - 46,748 37,463 64 37,399 54,456 - 54,456 45,970 245 45,725 79,212 7,524 71,688 124,813 37,998 86,815 247,058 97.561 149,497 762,928 143,392 619,536 _(514,357) (2,868) (511,489) $ 248,571 $ 140,524 $ 108,047 5. Loans receivable - related parties Loans receivable from related parties at June 30, 1999 are as follows: Former Superintendent $ 10,000 Camp Hill Band Boosters 9.538 Total $ 19,538 As part of an insurance benefit, the District advanced a total of $ 25,000 toward the premiums of a life insurance policy on the former superintendent. This noninterest bearing advance is scheduled to be repaid over the next two years. The advance is collateralized by an assignment of the policy to the District. IG O In 1996, the District purchased a truck for use by the Camp Hill Band Boosters at a cost of $ 16,500, and agreed to advance up to $ 2,000 in additional funds for improvements to the truck. The Band Boosters are to repay at least 156 of the total advance annually until this interest-free loan is repaid. A payment of $ 2,475 was received during 1998-99. - 15 - O CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIA L STATEMENTS (COnt'd,) n JUNE 30, 1999 6. Land, buildings, furni shings and equipment <,1 A summary of the changes in land, buildings, furnishings and e ui year ended June 30, q 1999 is as follows: pment for the Beginning of Year Increases Decreases End of Year p General fixed assets Land and buildings Fu i hi $ 4,834,106 $ 157,548 $ 64,005 $ 4 927 649 rn s ngs and , , equipment 3,804,700 _ 424,090 1 517 4 1 _ ,227,273 Totals $ 86638,806 $ 581,638 - $ 65 522 $ 9 154 922 O 6 _ , , Food Service Fund fixed assets Furnishings and equipment $ 26,502 $ 793 $ $ 2 Accumulated 7,295 0 depreciation (25,381) (890) - (26,271) Totals $ __1 .j 121 $ 97) $ -0- $ 1,024 _ 7. General obligation notes payable d A summary of changes in general obligation notes payable for the year ended June 30, 1999 is as follows: 10 General Obligation Notes Series A of 1998, interest rate of 4.45% dy Series AA of 1998, interest rate of 4.0 Total 6 Beginning of Year $ 2,570,000 $ - $ 250,000 $ 2,320,000 2,450,000 - 51000 2,445,000 $ 5,020,000 $ -0- $ 255,000 $ 4,765.000 - 16 - 0 Payments and other End Additions Decreases of Year J CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1999 7. General obligation notes payable (Cont'd.) Scheduled debt service payments for all general obligation debt as of June 30, 1999 are as follows: Year Series A Total Principal Series AA I nterest Principal Interest 1999 20 - 2000 $ 550,710 $ 320 000 $ 00 , - 2001 560,780 103,240 $ 335 15,000 $ 112 470 000 2001 , - 2002 , 89,000 25,000 554,722 345 000 117,780 2002 , 74,092 - 2003 558,220 25,000 110 630 365 000 2003 , , 58,740 - 2004 560,828 375 000 - 25,000 109 480 2004 , , to 2009 2,818,623 42'498 35,000 108 580 330 000 2009 , , 34,043 to 2010 _564.840 1,780,000 424,580 C? - 540.oo0 _24,840 $ 6168,723 $ 2,_320.000 $ 901,613 $ ? 445.000 $ ,002,110 8 . Operating leases Q The District has entered into several operating lease agreements in which i agreed to lease certain h t as small pieces of equipment for various lengths of tim The agreements contain vario e. us termination and "lease-up'- trade-in provisions which could allow the District to effectivel ch T y ange the terms of the agreements. otal operating lease payments included i n General Fund expenditures for the year ended June 30, 1999 amounted to $ 26 386 i , . M nimum lease commitments for future years, assuming no voluntary termination O s, are as follows at June 30, 1999: 1999-2000 $ 27,991 2000-2001 2001-2002 20,775 2002-2003 8,927 2003-2004 5,779 1,604 Total $ _65,076 9. Compensated absences At June 30, 1999, the General Long-Term Debt Group of Accou liability for t n s includes a compensated absences of $ 237,454. Payments f absences are mad or compensated e through General Fund expenditures in the used or th year the absence is e employee retires. When an employee retires, the Dist policy with re a d i ' g r r ct s payout to each type of unused compensated abse i nce s as follows: Emergency and personal - no payout required. - 17 - i ?I?IIII?Iilii?11?111?A1P??11A1?1Ai1Q?R?®I?mn i ?®? la in CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1999 9. Compensated absences (Cont'd.) Vacation (administrative personnel only) - unused vacation days (not to exceed 5 days) are paid at the time of separation. Sickness - a retiring employee receives payment for unused © accumulated sick days determined as a percent of substitute teachers' per diem rate for professional staff and a percent of per diem salary rate for support staff, both based on the number of years of service to the District up to a maximum of 270 days and 55% of the per diem amount. Retirement with 15 or more years of service - retiring professional employees with at least 30 years of experience including at least 15 years of continuous full-time employment with the District are entitled to a retirement incentive payment of between $ 5,000 and $ 10,000 depending on total years of experience. Changes in compensated absences were as follows: July 1, 1998 Net Change June 30, 1999 Vacation $ 6,892 $ 226 $ 7,118 O Retirement bonuses 42,000 (42,000) -0- Sick leave 222,894 7,442 230,336 $ 271.786 $ (34,332) $ 237,454 10. Pension plan 0 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- of-living adjustments, and healthcare insurance premium assistance to qualifying Q 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 PEERS, P.O. Box 125, Harrisburg, PA 17108-0125. 10 - 18 - I0 0 CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1999 10. Pension plan (Cont'd.) The contribution policy is set 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 of employers are based upon an actuarial valuation. For the fiscal year ended June 30, 1999 the employer contribution rate was 6.04 percent of covered payroll, composed of 5.89 percent for pension benefits and .15 percent for health insurance premium assistance. The District's contributions to PSERS for the years ending June 30, 1999, 1998 and 1997 were $ 334,862, $ 462,370 and $ 531,216, respectively. Those amounts are equal to the required contribution for each year. 11. Postemployment benefits other than pensions The District's contract with the Camp Hill Education Association and its compensation plan for administrators provide for postemployment health and hospitalization benefits for full-time teachers and administrators who have 25 or more years of service with the District. The benefit is paid by the District toward the retirees' health insurance premium ranging from $ 750 to $ 1,000 per year per retiree for a period of 2 to 7 years. Both the contribution amount and the number of years of payment depends on the retirees' years of service. The benefit is paid only until the year in which the retiree is eligible for full © social security benefits. The District finances this benefit on a pay-as-you-go basis. For the year ended June 30, 1999, there were ten retirees receiving this benefit at a total cost to the District of $ 7,560. 0 12. Inter-fund transfers General Fund expenditures include inter-fund transfers of $ 520,453 summarized as follows: Athletic Fund $ 80,000 Band Uniform Fund 3,000 Capital Projects Fund 400,000 Food Service (non-cash transfers) 37,453 Total $ 520,453 - 19 - V 0 CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1999 c 13. Risk management The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The District maintains commercial insurance 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 purposes of unemployment compensation laws, the District has elected not to be covered by the Pennsylvania Unemployment Compensation Fund. Any unemployment claims are paid by the District on a quarterly basis as incurred. The District is a member of a group of School Districts who have joined together to self-insure their workers' compensation exposure. The District pays annual contributions to the group based on a formula utilizing the District's own claim experience and annual payroll. Claims in excess of the District's retention experience are paid by a Central Fund within the group and, if necessary, by an insurance company carrying excess liability coverage. 14. Commitments and contingencies The collective bargaining agreement between the District and the teaching staff is effective for the period July 1, 1996 through June 30, 2000. In the normal course of business, the District is subject to legal disputes and claims. The District does not anticipate any material losses from any pending or threatened litigation. The District is contingently liable for the repayment of the General Obligation Bonds, Series of 1996 which were refunded by the deposit of funds into an irrevocable escrow account in amounts sufficient to retire the bonds and interest when due. Because of the refunding, these bonds are no longer included as general obligation debt on the District's balance sheet. At June 30, 1999, the amount of the Series of 1996 bonds outstanding totaled $ 2,345,000. In the normal course of preparing for the subsequent school year, the District has awarded bids for various supplies, fuel contracts, etc. Contract commitments at June 30, 1999 to complete renovation projects in process approximated $ 75,000. 0 The District participates in numerous state and federal grant programs which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and review by the grantor agencies; therefore, any findings or adjustments by the grantor agencies could have an effect on the recorded grants receivable and/or deferred grant revenues, and on the related grant revenues and expenditures. 20 C) 0 n 110 REQUIRED SUPPLEMENTARY INFORMATION 10 10 10 0 GREENAWALT & COMPANY, P.C. CERTIFIED PUBLIC ACCOUNTANTS JAMES E. LYONS HOWARD R. GREENAWALT P.O. Box 6 400 WEST MAIN STREET CRUDON R. HOFFMAN MECHANICSBURG PENNSYLVANIA DOSS JOHN H. KLRNOLER . DEBORAH J. KELLY 1717) 7664763 R. A GREENAWALT (19761903) FAX 17171766-2731 A. A. R®MGER (REIIREB) C EDWARD ROGERS. JR. INDEPENDENT AUDITORS' REPORT ON REQUIRED SUPPLEMENTARY INFORMATION - YEAR 2000 DISCLOSURE 0 O if 0 N0 10 10 Board of School Directors Camp Hill School District Camp Hill, Pennsylvania 62 WEST POMFRET STREET CARUSIF. PA 17011 (717) 24741122 FAX (717) 258 9)72 The year 2000 supplementary information on pages 21 and 22 is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and do not express an opinion on it. 4=dnloza' P.C, P. C. October 1, 1999 Mechanicsburg, Pennsylvania - 21 - 9) MEMBERS - AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS - PENNSYLVANIA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS I-E CAMP HILL SCHOOL DISTRICT REQUIRED SUPPLEMENTARY INFORMATION YEAR 2000 DISCLOSURE UNAUDITED JUNE 30, 1999 The Camp Hill School District began assessing year 2000 compliance for all I. mission critical systems and electronic equipment in 1998. The District contracted with a consultant to provide testing software to evaluate computer software and hardware systems. Most non-compliant hardware has been replaced, and software upgrades have been installed. The hardware which remains in use and is questionable as to it's ability to roll into the year 2000 are not critical to the mission of the School District . Internal climate control systems have been assessed and do not contain date sensitive components. various utilities, banking/ investment institutions `. , vendors, governmental institutions and emergency preparedness contacts have represented themselves to be assessing, remediating and testing in order to avoid potential year 2000 problems. Many have provided correspondence to indicate that corrective measures have been put into place to avoid technical failures. The District will serve as an emergency evacuation site should a major Community-wide failure occur, such as a utility stoppage. The District will be prepared with support facilities and manpower to assist if this need arises. Even though the District has taken numerous precautions because of the unprecedented nature of the year 2000 issues, its effects and the success of related remediation efforts will not be fully determinable until the year 2000 and thereafter. Management cannot assure that the District is or will be year 2000 ready, that the District's remediation efforts will be successful in whole or in part, or that the parties with whom the District does business will be year 2000 ready. 10 10 - 22 - IV I/ Uv ?R££J?cJ2 LICE ly9G7 n 2 d'9 -a Qi V