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HomeMy WebLinkAbout01-6136 M~CHANICSBURG A~EA SCHOOL DISTRICT FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 INDEX Page Number Independent auditors' report combined balance sheet - all fund types and account groups - June 30, 2001 Combined statement of revenue, expenditures and changes in fund balances - Ail Governmental Fund Types - year ended June 30, 2001 combined statement of revenue, expenditures and changes in fund balances - actual and budget - All Budgeted Governmental Fund Types - year ended June 30, 2001 Statement of revenue, expenses and changes in fund balance/retained earnings - All Proprietary and Non-Expendable Trust Fund Types - year ended June 30, 2001 Statement of cash flows - Ail Proprietary and Non-Expendable Trust Fund Types - year ended June 30, 2001 Notes to financial statements - June 30, 2001 Supplementary information 1 - 2 3 4 7 - 8 9 - 24 25 - 35 GREENAWALT & COMPANY, P.C. 400 WEST MA,~ STREET MECHANICSBURG, PENNSYLVANIA 1705S (717) 7~E-4753 FAX (717) 766-2731 I~.DENDENT AUDITORS' REPORT Board of School Directors Mechanicsburg Area School District Mechanicsburg, Pennsylvania We have audited the accompanying general-purpose financial statements of Mechanicsburg Area School District as of June 30, 2001, and for the year then ended. These general-purpose financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in 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 general-purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general-purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general-purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of Mechanicsburg Area School District at June 30, 2001, the results of its operations, and the cash flows of its proprietary fund types and trust funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our audit was conducted for the purpose of forming an opinion on the general- purpose financial statements taken as a whole. The supplementary information is presented for purposes of additional analysis and is not a required part of the general-purpose financial statements of Mechanicsburg Area School District. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general-purpose financial statements taken as a whole. - 1 - MEMBERS - AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS -- PENNSYLVANIA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Board of School Directors Mechanicsburg Area school District Mechanicsburg, Pennsylvania In accordance with Government Auditing Standards, we have also issued reports dated August 29, 2001, on our consideration of Mechanicsburg Area School District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. '~REENAWALT'&'~O~P.C. August 29, 2001 Mechanicsburg, Pennsylvania - 2 - MECHANICSBURG AREA SCHOOL DISTRICT COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2001 Assets and other debits Cash and cash equivalents Investments Due from other funds Accounts receivable Delinquent taxes receivable (net of allowance for uncollectibles, $ 226,184) Inventory Land, buildings and equipment (net of $ 129,561 accumulated depreciation) Amount to be provided for general long-term debt Governmental Fund Types General Athletic Capital Association Construction Reserve 496,595 $ 4,338 $ $ 4,910,905 - 42,784,456 443,576 100,448 _ 911,225 72,790 438,556 Total assets and other debits Liabilities Payroll and benefits payable Accounts payable Deferred revenue Due to other funds Due to student and other organizations Bonds payable Compensated absences $ 6,857,729 $ 4,338 $42,857,246 $ 443,576 $ 1,698,008 $ $ $ 760,766 311,977 13,115 283,770 _ 45,547 17,771 39,440 Total liabilities Fund equity and other credits Invested in general fixed assets Fund balances/retained earnings Reserved Unreserved Total fund equity and other credits 2,827,531 0 329,748 13,115 - 42,527,498 - 4,030,198 4,338 - 430,461 4,030,198 4,338 42,527,498 430,461 Total liabilities, fund equity and other credits $ 6,857,729 $ 4 338 $42,857,246 $ The accompanying notes are an integral part of these financial statements. 443.576 - 3 - Proprietary Fund Types Fiduciary Fund Types Debt Food Trust and Service Service Agency Activities $ 6,633 $ 140,049 47 131,501 78,486 45,547 - 1,898 - 1,136 Account Groups General General Long- Fixed Assets Term Debt $ 145,708 $ - $ 20,327 125,165 23,952,056 - - 60,316,361 $ 45,594 $ 284,762 $ 220,433 $ 145,708 $ 23,952,056 $ 60 316 361 $ - $ - $ $ 16,238 - - 82,677 1,898 - 140,049 145,708 11,117 0 110,544 141,947 145,708 $ 51,997,787 8,318,574 0 60,316,361 23,952,056 45,547 78,486 47 174,218 - 45,594 174,218 78,486 0 23,952,056 0 $ 45,594 $ 284,762 $ 220,433 $ 145 708 $ ~,952,056 $ 60,316,361 MECHANICSBURG AREA SCHOOL DISTRICT COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 Revenue Local sources State sources Federal sources Total revenue Expenditures Instruction Support services ODeration of noninstructional services Facilities acquisition, construction and improvement services Total expenditures Excess of revenue over (under) expenditures Other financing sources (uses) Bond proceeds Bond issuance costs Sale of fixed assets Debt service payments Transfers from other funds Governmental fund transfers Food service transfers Total other financing sources (uses) Excess of revenue and other financing sources over (under) expenditures and other financing uses Fund balances, July 1, 2000 Fund balances, June 30, 2001 Athletic General Association $ 22,102,272 7,084,393 257,635 Construction $ 100,777 $ 2,104,020 29,444,300 100,777 2,104,020 17,933,732 8,177,121 767,012 502,415 27,380,280 2,064,020 (2,283,970) (118,056) (2,402,026) (338,006) 4,368,204 147,521 2,513,932 147,521 2,513,932 (46,74~) (409,912) - 10,000,000 - (149,163) 45,000 (865,132) 45,000 8,985,705 (1,744) 8,575,793 6,082 33,951,705 $ 4 030 198 $ 4,338 $ 42,527,498 The accompanying notes are an integral part of these financial statements. - 4 - Capital Reserve 36,210 Debt Service $ 2 36,210 2 425,870 425,870 0 (389,660) 2 (3,058,554) 3,104,101 0 45,547 (389,660) 820,121 45,549 45 $ 430,461 $ 45,594 MECHANICSBURG AREA SCHOOL DISTRICT COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - ACTUAL AND BUDGET ALL BUDGETED GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 Revenue Local sources State sources Federal sources Total revenue Expenditures Instruction Support services Operation of noninstructional services Facilities acquisitions, construction and improvement services Total expenditures Excess of revenue over (under) expenditures Other financinG sources (uses) Bonds proceeds Bond issuance costs Sale of fixed assets Debt service payments Transfers from other funds Governmental fund transfers Food service transfers Total other financing sources (uses) Excess of revenue and other financing sources over (under) expenditures and other financinG uses Fund balances, July 1, 2000 Fund balances, June 30, 2001 General Fund Variance Favorable Actual Budget (Unfavorable) 22,102,272 $ 21,822,145 $ 280,127 7,084,393 6,973,059 111,334 257,635 261,749 (4,114) 29,444,300 29,056,953 387,347 17,933,732 17,953,934 20,202 8,177,121 8,228,224 51,103 767,012 796,628 29,616 502,415 503,200 785 27,380,280 27,481,986 101,706 2,064,020 1,574,967 489,053 (2,283,970) (2,283,971) 1 (118,05~) (118,056) (2,402,02~) (2,402,027) 1 (338,006) (827,060) 489,054 4,368,204 3,918,969 449,235 $ 4 030 198 $ 31091,909 $ 938 289 The accompanying notes are an integral part of these financial statements. - 5 - Athletic Association Fund Actual Budget 100,777 $ 68,400 100,777 68,400 Variance Favorable (Unfavorable) $ 32,377 32,377 147,521 113,400 34,121 147,521 113,400 34,121 (46,744) (45,000) (1,744) 45,000 45,000 (1,744) 6,082 4,338 45,000 45,000 0 0 o $ 0 (1,744) 6,082 4,338 MECHANICSBURG AREA SCHOOL DISTRICT STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCE/RETAINED EARNINGS ALL PROPRIETARY AND NON-EXPENDABLE TRUST FUND TYPES yEAR ENDED JUNE 30, 2001 Operating revenue Sales Net investment earnings Miscellaneous revenue Total operating revenue Proprietary Fund Food Service Fiduciary Fund Trust Funds 757,372 $ 3,424 7,722 11,146 757,372 Operating expenses Food and milk Labor Supplies and services Repairs and maintenance Employee benefits utilities and fuel Depreciation Scholarship awards Total operating expenses Operating income (loss) 501,007 404,686 43,319 7,443 104,752 57,513 21,124 1,139,844 (382,472) 61 7,542 7,603 3,543 Nonoperating revenue State sources Meal subsidies Social security and retirement subsidies Federal sources Meal subsidies Donated commodities Interest earned Total nonoperating revenue Income (loss) before transfers Services contributed by General Fund Equipment purchases by Capital Reserve Fund Scholarship transfers from Activity Fund 42,665 19,309 170,689 51,109 9,592 293,364 (89,108) 118,056 7,126 125,182 0 3,543 12,943 12,943 16,486 62,000 Net income Fund balance/retained earnings, July 1, 2000 Fund balance/retained earnings, June 30, 2001 36,074 t38,144 $ 174,218 $ The accompanying notes are an integral part of these financial statements. 78,486 - 6 - MECHANICSBURG AREA SCHOOL DISTRICT STATEMENT OF CASH FLOWS ALL PROPRIETARY AND NON-EXPENDABLE TRUST FUND TYPES YEAR ENDED JUNE 30, 2001 ~roprietary Fund Food Service Fiduciary Fund Non-Expendable Trust Cash flows from operating activities Cash received from users Net investment earnings Cash paid to employees for services Cash payments to suppliers for goods and services Cash payments for operating expenses Net cash provided by (used in) operating activities Cash flows for non-capital financing activities State sources Federal sources Transfer to expendable trust fund Net cash provided by (used in) non-capital financing activities Cash flows from investing activities Earnings on investments Purchase of pooled investments Proceeds from pooled investments Net cash provided by (used in) investing activities Net decrease in cash and cash equivalents, July 1, 2000 Cash and cash equivalents, July 1, 2000 Cash and cash equivalents, June 30, 2001 $ 758,596 (467,284) (488,980) (7.443) (205,111) 59,500 170,689 230,189 9,592 (303,201) 171.700 ~) (96,831) 103,464 3,336 3.336 (3,401) (3~401) (3,336) 3,401 0 0 6,633 $ 0 - 7 - MECHANICSBURG AREA SCHOOL DISTRICT STATEMENT OF CASH FLOWS ALL PROPRIETARY AND NON-EXPENDABLE TRUST FUND TYPES (Cont'd.) YEAR ENDED JUNE 30, 2001 Reconciliation of operating loss to net cash provided by (used in) operating activities Operating income (loss) Adjustments to reconcile operating income to net cash used in operating activities Depreciation Donated commodities Services contributed by General Fund Decrease (increase) in assets Accounts receivable Inventories Increase (decrease) in liabilities Accounts payable Deferred revenue Due to other funds Compensated absences Total adjustments Net cash provided by (used in) operating activities (loss) Proprietary Fund Fiduciary Fund Food Non-Expendable Service Trust $ (382,472) $ 3,336 21,124 51,109 120,530 (1,136) (2,401) 512 2,360 (3,078) (11,659) 177,361 0 $ (205,111) $ 3,336 The accompanying notes are an integral part of these financial statements. - 8 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 1. Reporting entity Mechanicsburg Area School District is the level of government which has oversight responsibility and control over activities related to public school education. The report includes services provided by the District to residents within the boundaries of the Cumberland County municipalities of Upper Allen Township, Shiremanstown and Mechanicsburg Boroughs. Services include a comprehensive curriculum for primary and secondary education as well as special education and 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. Ail operations of the District are included in the reporting entity. There are no component units that meet the above criteria for inclusion in the reporting entity. However, the District is a participant in three jointly- governed operations, each of which is a separate legal entity that offers educational services to the District and its residents. Each entity serves many school districts, and are therefore, not included in the reporting entity. Capital Area Intermediate Unit provides special services and programs. cumberland-Perry Area Vocational-Technical School vocational and technical education services and programs. Harrisburg Area Community College education services and programs. provides community education provides college 2. Summary of significant accounting policies The accounts of Mechanicsburg Area School District are maintained on the basis of accounting practices prescribed or permitted by the Manual of Accounting and Related Financial Procedures for Pennsylvania School Systems, issued by the Pennsylvania Department of Education in accordance with the provisions of the School Laws of Pennsylvania. These practices are in conformity with generally accepted accounting principles as applicable to governmental units. A summary of the more significant accounting policies is as follows: - 9 - MECHkNICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 2. Summary of significant accounting policies (Cont'd.) Fund accounting The accounts of the District are organized on the basis of fund types and account groups. Each fund type may consist of several different funds. Each fund is a separate entity with self-balancing accounts which comprise its assets, liabilities, fund balance/retained earnings, revenues and expenditures/expenses, as appropriate. The fund types and account groups utilized by Mechanicsburg Area School District are as follows: Governmental Fund Types 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 primarily derived from local property, per capita and occupation taxes, and State and Federal distributions. Many of the more important activities of the School District, including instruction, acLministration and certain noninstructional services, are accounted for in this fund. Construction Funds - The Construction Funds are used to account for the proceeds of bond issues and their corresponding expenditures. The fund balances at June 30, 2001 will be used for capital improvements. Capital Reserve Fund - The Capital Reserve Fund is used to account for special capital projects. Special Revenue Fund - Special Revenue Funds are used to account for the proceeds of specific revenues that are restricted to expenditures for specified purposes. The Athletic Association Fund is a Special Revenue Fund. Debt Service Fund - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long- term debt principal, interest and related costs. - 10 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 2. Summary of significant accounting policies (Cont'd.) Fund accounting (Cont'd.) Proprietary Fund Types Proprietary Funds account for operations that are financed and operated in a manner similar to private business enterprises: Food Service Fund - The Food Service Fund is used to account for the financial transactions associated with the operations of the cafeterias. Fiduciary Fund Types Fiduciary Funds (Trust and Agency Funds) are used to account for assets held by a governmental unit in a trustee capacity or as an agent for other funds or entities. Expendable and Non-expendable Trusts are accounted for in essentially the same manner as Proprietary Funds. Agency Funds are custodial in nature and do not involve measurement of results of operations: Trust Accounts Accounts for contributions to and interest earnings on scholarship funds donated to the District, and for payments of scholarship funds to selected students. District Agency Fund Accounts for programs operated and sponsored by non-school organizations. These funds are separated from student activity funds. Activity Fund - Accounts for programs operated and sponsored by various clubs and organizations within the schools. Activity funds are Agency Funds which are separately accounted for because of legal requirements. Account Groups Account groups are not funds. They are only concerned with the measurement of financial position and are not involved with the measurement of results of operations. General Fixed Assets - Accounts for the District's investment in land, buildings, and equipment. General Long-Term Debt Accounts for general obligation bonds payable and accumulated compensated absences payable in future years. - 11 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 2. Summary of significant accounting policies (Cont'd.) Basis of accounting The accounting and financial reporting treatment applied by the different funds is based on their measurement focus, which determines when revenues and expenditures are recognized. Governmental Fund Types These funds are accounted for using the "current financial resources" measurement focus, which is a modified accrual basis of accounting. Revenues are recorded when susceptible to accrual (both measurable and available). Available means collected within the current period or soon enough thereafter to pay current liabilities. Expenditures are generally recognized when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which is recognized when due. Disbursements for inventory type items and prepaid expenses are considered expenditures at the time of purchase. Proprietary Fund Types The Food Service Fund uses the "flow of economic resources" measurement focus, which is a full accrual method of accounting. This fund accounts for operations using accounting pronouncements required for private business enterprises, unless those pronouncements conflict with or contradict governmental accounting pronouncements. Donated commodities are inventoried at an estimated cost value when received. Inventories (valued on the first-in, first-out method) are recorded as an asset, and the portion represented by donated commodities is recorded as deferred revenue. Food service equipment is capitalized, with depreciation straight-line method using an estimated useful life of recorded as an operating expense. (computed on the 5 to 12 years) Compensated absences are recognized as operating expenses and the cumulative amount is recorded as a liability within the Fund. Fiduciary Fund Types (Trust and Agency Funds) These funds use a modified accrual method. They are custodial in nature and are not involved with the measurement of results of operations. - 12 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 2. Summary of significant accounting policies (Cont'd.) Basis of accounting (Cont'd.) Account Groups Land, buildings and equipment are presented at historical cost or estimated historical cost where the original cost is unknown. Depreciation is not computed on these assets. Long-term debt is offset by an amount to be provided by future taxation or other revenue sources. General obligation bonds payable in future years are recorded as District debt. Interest on bonds is recognized when such interest is due. Interest on Capital Appreciation Bonds is accreted annually and added to the amount of bonds outstanding. Compensated absences are presented using the vesting method. Unused vacation leave is minimal. Sick leave is granted as appropriate, and medical evidence may be required. Provision is made annually in the budget for the cost of substitute personnel. There is limited payment for accumulated sick leave at the time of retirement. The gross amount of unused compensated absences is recorded in the General Long-Term Debt group of accounts, General Fund and Food Service Fund. Cash and cash equivalents For purposes of the Food Service Fund and Nonexpendable Trust Fund statement of cash flows, the District considers all deposits purchased with an original maturity of three months or less to be cash or cash equivalents. Budgets The District adopts, prior to the beginning of each fiscal year, an annual budget for the General Fund and Athletic Fund. A part of this budget process is the adoption of local tax rates, subject to various legal restrictions. The District approves subsequent budget revisions (primarily transfers between expenditure categories), as necessary. Unused appropriations expire at the end of the year. Revenue - Local sources Real estate, residence and occupation taxes are levied as of July 1 with a legal, enforceable claim against the taxpayer and/or property. These taxes are recognized as revenue when received during the fiscal year or soon enough thereafter to be susceptible to accrual. - 13 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont' d. ) JUNE 30, 2001 2. Summary of significant accounting policies (Cont'd.) Revenue - Local sources (Cont'd.) An allowance for uncollectibles is recorded for taxes levied for the current fiscal year and estimated doubtful of collection within one year after the end of the fiscal year. Other tax revenues, including taxpayer-assessed revenues such as earned income taxes, are recognized as revenue when received during the fiscal year or soon enough thereafter to be susceptible to accrual. Revenue - State sources State subsidies due the District as current fiscal year entitlements are recognized as revenue in the current fiscal year. Revenue - Federal sources Federal program funds applicable to expenditures in the current fiscal year but expected to be received in the next fiscal year are recognized as revenue in the current fiscal year. Inter-fund transactions Expenditures by the General Fund for the benefit of other funds are reflected in the respective statements of revenue and expenditures/expenses, based on management's estimates. The District does not attempt to allocate all costs which benefit the other funds due to the difficulties associated with the measurement of such benefits. utilities, salaries, etc. paid by the General Fund for the benefit of the Food Service Fund amounting to $ 118,056 have been reflected on the respective statements of revenue and expenditures for the year ended June 30, 2001, based on management's estimates. Pension plan Substantially all full-time and part-time employees of the District 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. - 14 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 3. Cash and cash equivalents Cash and cash equivalents (other than $ 60 cash on hand) consists of checking, savings and treasury management accounts deposited with financial institutions. Cash and cash equivalents are categorized as follows: Carrying Bank Value Balance Insured (FDIC) Collateral held in District's name Collateral not held in District's name 100,000 $ 100,000 693,263 1,386,588 $ 793,263 $ 1,486,588 4. Investments Investments are categorized into these three categories of credit risk: 1. Insured or registered or securities held by the District or its agent in the District's name. 2. Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the District's name. 3. Uninsured and unregistered, with securities held by the counterparty or by its trust department or agent but not in the District's name. The investments, whose market value approximates cost due to the short term nature of the investments, are categorized as follows: Category Carrying Fair 1 2 3 An%ount Value U.S. Government Agency Securities Mutual Fund - $ $ 5,940,627 $ 5,940,627 $ 6,073,068 47 47 47 5,940,674 6,073,115 42,408,297 42,405,550 $ 0 $~0 $ 5,940,674 Pooled investment accounts Total investments $48,348,971 $48 478 665 The types of authorized investments are limited by State regulations. Investment policies followed during the year did not significantly alter the categorization of investments shown above. - 15 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 5. Delinquent taxes receivable Delinquent taxes receivable at June 30, 2001 consist of the following: Real Estate Delinquent taxes receivable held by delinquent collectors $ 329,520 Less: allowance for uncollectibles 98,800 Net Delinquent taxes receivable Personal Total $ 335,220 $ 664,740 127,384 226,184 $ 230,720 $ 207 836 $__438,556 6. Accounts receivable General Fund accounts receivable at June 30, 2001 consist of the following: Subsidies Due from other governmental units Investment income Other $ 165,832 730,741 6,486 8,166 $ 911.225 7. Land, buildings and equipment The schedule below presents estimated historical cost of land, buildings and equipment. These amounts were obtained, in the most part, from a valuation report prepared as of May, 2001 and updated by management to June 30, 2001. It includes equipment held in the Food Service Fund. July 1, 2000 Additions Disposals June 30, 2001 Land $ 416,983 $ 189,000 $ $ 605,983 Land improvements 1,528,196 - 1,528,196 Buildings 12,787,273 140,350 12,927,623 Equipment 7,338,553 1,551,701 8,890,254 General fixed assets $ 22,071,005 $ i 881 051 $~0 $ 23 952 056 Food Service Fund fixed assets Furnishings and equipment $ 247,600 $ 7,126 $ $ 254,726 Accumulated depreciation (108,437) (21,124) (129,561) Totals $ 139 163 $~)$ 0 $ 125,165 - 16 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 8. Bonds payable A summary of changes in bonds payable for the year ended June 30, 2001 is as follows: General New Obligation Interest Issuance Bonds/Notes Beginning Accretion Proceeds Repayments Ending Series of 1992, General Obligation Bonds 6.23%, Maturing 9/1/2005 Series Of 1998, General Obligation Bonds 4.0% to 4.6%, Maturing 2/15/2013 $ 5,087,019 $ 295,768 $ 9,495,000 - $ 1,025,000 $ 4,357,787 40,000 9,455,000 Series A of 1998, General Obligation Bonds 3.9% to 4.3%, Maturing 9/1/2009 3,475,000 285,000 3,190,000 Series of 2000, General Obligation Bonds 5.3% to 5.5%, Maturing 8/15/2016 4,995,000 4,995,000 Series A of 2000, General Obligation Note, En~aus Bond Pool, Variable Interest, not to Exceed (15.55%), Maturing 9/3/2002 Series B of 2000, General Obligation Note, Fmcnaus Bond Pool, Credit Facility (1) 15,000,000 15,000,000 Series C of 2000, General Obligation Note 4.5% variable, Maturing 10/1/2016 5,000,000 5,000,000 Series of 2001, General Obligation Bonds 3.95% to 5.00%, Maturing 8/15/2019 10,000,000 10,000,000 $43.052.01--9 $ 2__95.768 $~ $ 1.35__0.000 $51,997.787 (1) Series B of 2000, General Obligation Note, Emmaus Bond Pool Credit Facility will not be used unless necessary to support the Series A of 2000, General Obligation Note repayment. The amount of the credit facility is $ 15,371,590. No withdrawals occurred during 2000-2001. - 17 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 8. Bonds payable (Cont'd.) The Series of 1992, General Obligation Bonds consist of Capital Appreciation Bonds. Interest accreted through the March 1 payment date of each year on the Capital Appreciation Bonds is added to the carrying value. The bonds are due semi-annually through September 1, 2005. The Series of 1998, General Obligation Bonds are due semi-annually through February 15, 2013. The District is planning to use these proceeds to construct a new middle school and renovate the current middle school and high school. The Series A of 1998, General Obligation Bonds are due semi-annually through September 1, 2009. The proceeds of these bonds were used to refund the Series of 1993 General Obligation Bonds. The Series of 2000, General Obligation Bonds in the amount of $ 4,995,000 are due semi-annually through August 15~ 2016. Proceeds of the issue are currently being used to construct and equip a new middle school, and renovate existing elementary and secondary school facilities. Series A of 2000, General Obligation Note in the amount of $ 15,000,000 is nonelectoral debt issued through Emmaus General Authority. The Note is due September 3, 2002. No principal repayment is due until maturity. The District also issued Series B of 2000, General Obligation Note in the amount of $ 15,371,590 as a credit note made by Bayerische Hypo-und Vereins Bank, AG. There were no draws outstanding under this credit facility at June 30, 2001. The credit note will be utilized only in the event of default or inability to reDay the principal of Series A of 2000, General Obligation Note. Proceeds of Series A of 2000, General Obligation Note will provide funds toward planning and construction of a new middle school, renovation and expansion of the high school, capitalized interest and pay the remarketing costs of issuance. Series C of 2000, General Obligation Note in the amount of $ 5,000,000 is nonelectoral debt issued through the Emmaus General Authority's Variable Rate Demand Bond program. The Note is due October, 2016. Proceeds will be used toward planning and construction of a new middle school, capitalized interest and pay issuance costs. The Series of 2001, General Obligation Bonds are due semi-annually through August 15, 2019. Proceeds of the issue are currently being used to renovate the high school and pay costs of issuing the bonds. - 18 - MECHANICSBURG ARF~ SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 8. Bonds payable (Cont'd.) Future maturities and debt service requirements are as follows: Year Total Principal Interest Series of 1992 Capital Appreciation Bonds (1) 2001-2002 $ 5,164,090 $ 320,000 $ 3,819,090 $ 1,025,000 2002-2003 18,290,531 15,330,000 1,935,531 1,025,000 2003-2004 2,877,897 345,000 1,507,897 1,025,000 2004-2005 2,878,702 360,000 1,493,702 1,025,000 2005-2006 2,883,830 430,000 1,478,830 975,000 2006-2019 42,786,272 30,855,000 11,931,272 Totals $ 74,881,322 $ 47,640,000 $ 22,166,322 $ 5,075,000 (1)Reflects final maturity value of Capital Appreciation Bonds. 9. Contribution to Food Service Fund "Contribution to Food Service Fund" for the year ended June 30, the following estimated expenses charged to the Food Service through the General Fund: 2001 includes Fund and paid Custodian wages Administrative salaries Employee benefits Supplies Utilities and fuel Social security subsidy Retirement subsidy 13,579 38,028 5,284 5,570 58,069 (1,974) (50O) $ 118,056 In addition, equipment purchases totaling $ 7,126 were paid by the Capital Reserve Fund. 10. Inter-fund transfers The combined statement of revenue and expenditures for the year ended June 30, 2001 includes the following inter-fund transfers and contributions from the General Fund to the following funds which are recorded in the General Fund as budgetary expenditures: Food Service Fund $ 118,056 Athletic Association 45,000 Debt Service Fund 2,238,970 $ 2,402,026 - 19 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 11. Compensated absences The General LonG-Term Debt account Group includes $ 8,661,876 representing the estimated Gross amount of compensated absences, primarily sick leave, payable to all District employees if they were to use this accumulated leave prior to retirement. It was calculated by multiplying each employee's accumulated leave time by the current per diem rate. If an employee retires with unused compensated absences, the payout policy is as follows: EmerGency and personal No payout. Vacation (Administrative personnel) Paid at current per diem rate. Sickness Paid at the per diem rate paid to a substitute teacher at time of retirement, based on a formula involving a percentage of accumulated sick days and years of service. The maximum is 50% of accumulated sick days after 20 years of service for the year ended June 30, 2001. A sun%mary of changes in compensated absences for 2000/2001 is as follows: July 1, 2000 Net Change June 30, 2001 Administrators and support staff $ 1,416,300 Teachers 7,245,576 $ (114,359) $ 1,301,941 (228,943) 7,016,633 $ 8,661~876 $ ~) $ 8,318,574 Food Service Fund $ 22,776 $ ~) $ 11,117 12. Pension plan 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 annuitants. The System issues a comprehensive annual financial report that includes financial statements and required supplementary information for the plan. A copy of the report may be obtained by writing to PSERS, P.O. Box 125, HarrisburG, PA 17108-0125. The contribution policy is established by the Code and requires contributions by active members and employers. Active members are required to contribute 5.25 percent of their qualifying compensation if they joined the plan before July 22, 1983, and 6.25 percent if they joined on or after that date. Contributions required of employers are based upon an actuarial valuation. - 20 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 12. Pension plan (Cont'd.) For the fiscal year ended June 30, 2001 the employer contribution rate was 1.94 percent of covered payroll, composed of 1.64 percent for pension benefits and .30 percent for healthcare insurance premium assistance. The District's contributions to PSERS for the years ending June 30, 2001, 2000, and 1999 were $ 315,013, $ 706,207, and $ 904,239, respectively. Those amounts are equal to the required contribution for each year. 13. Post-employment benefits other than pension benefits The District does not offer any post-employment benefits to retired employees other than pension benefits as discussed in Note 12. The District will, however, allow retired employees to remain in its group medical insurance plan upon payment of the cost of such coverage by the retired employee. 14. Operating leases The District is obligated under various equipment, vehicle and modular classroom lease agreements at June 30, 2001. The following is a schedule of future minimum rental payments required under the operating lease agreements. Year Ending June 30 2002 $ 99,437 2003 70,998 2004 15,198 2005 6,898 Total minimum payments required $ 192,531 15. Tax collections Property Tax The District's property tax is levied each July 1 on the assessed value as of that date as maintained by Cumberland County for all nonexempt real property located in the School District. The assessed value of the roll upon which the levy for the 2000-2001 year was based approximated $ 95,156,820. The tax millage rate assessed for the year ended June 30, 2001 was 154 mills ($ 15.40 per $ 100 valuation). Real estate taxes attach as an enforceable lien on property on July 1. The taxes are collected by an elected tax collector. Taxes paid through August 31 are given a 2% discount. Taxes paid after October 31 are charged a 10% penalty. Delinquent real estate taxes are collected by Cumberland County. - 21 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 15. Tax collections (Cont'd.) Occupation, per capita and residence taxes Occupation taxes are assessed based on employment classifications determined by Cumberland County. They are levied July t at a rate of 110% of assessed classification value. Per capita and residence taxes are levied as of July 1 at a flat rate of $ 5 each and are assessed based on tax rolls maintained by Cumberland County. Occupation, per capita and residence taxes are collected by an elected tax collector. Taxes paid through July 31 are given a 2% discount. Taxes paid after October 31 are charged a 10% penalty. Delinquent occupation, per capita and residence taxes ars collected by a Board appointed delinquent tax collector. 16. Fund equity Fund balance reservations Reservations of fund balances of Governmental Funds are established to either satisfy legal covenants that require a portion of the fund balance be segregated or identify the portion of the fund balance that is not appropriate for future expenditures. Specific reservations of fund balance accounts are summarized below. Reserve for construction Bond proceeds and earnings on invested proceeds are reserved for funding the various construction and renovation projects of the District and are not to be used in the ordinary course of the District's operations. Reserve for debt service The Series C of 2000 General Obligation Note charges interest on the outstanding balance at a variable rate. The amortization of payments under this note include a rate stabilization component which allows the District ease in budgeting and provides a funding cushion should rates rise. The amount transferred as a rate stabilization payment is reserved for payment of interest under terms of the note agreement and is not to be used to pay principal or in the ordinary course of the District's operations until the issue is repaid. Reserve for scholarships Amounts included in the District's expendable and non-expendable trust funds are reserved to provide funding to scholarship payouts and are not to be used in the ordinary course of the District's operations. - 22 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30~ 2001 17. Budget amendments During April and June, 2001, the School Board amended previously approved budgeted revenues and expenditures to provide for the purchase of additional instructional supplies and capital purchases as follows: Revenues Expenditures Budget as originally adopted, net of budgetary reserve allocation of $ 45,000 for expenditures April, 2001 budget amendment June, 2001 budget amendment $ 28,991,315 $ 29,358,375 65,638 65,638 460,000 Budget as amended $ 29,056.953 $ 29,884,013 18. Risk Management The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to 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 State unemployment compensation laws, the District is self-insured, which is a common practice for local governmental units. Any unemployment claims are paid by the District on a quarterly basis as incurred. The District incurred $ 520 in unemployment claims during 2000-2001. No claims were outstanding at June 30, 2001. 19. Commitments and contingencies The District's contract with its teaching staff expired June 30, 2001 and is currently in negotiation. In the normal course of business, the District is subject to legal disputes and claims. The District does not anticipate any material losses from any pending or threatened litigation. In the normal course of preparing for the subsequent school year, the District has awarded bids for various supplies, fuel contracts, etc. No major commitments in excess of routine requirements have been made by the District. The District is audited by the Commonwealth of Pennsylvania, Department of the Auditor General. Findings, if any, from these audits could result in the repayment of funds, or the receipt of additional funds. - 23 - MECHANICSBURG AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2001 19. Commitments and contingencies (Cont'd.) The District participates in numerous state and federal grant programs which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and review by the grantor agencies; therefore, any findings or adjustments by the grantor agencies could have an effect on the recorded grants receivable and/or deferred grant revenues and on the related grant revenues and expenditures. The District is contingently liable for outstanding lease rental debt of cumberland-Perry Vocational-Technical School beginning in 2001-2002. The District will provide two payments to the Vo-Tech totaling $ 236,870. The District has undertaken several construction and renovation projects during the year. Renovation of the High School and construction of the Middle School were in process at June 30, 2001. Construction commitments under these contracts at June 30, 2001 were as follows: High School renovation Middle School construction $ 16,045,797 21,330,917 Total $ 37,376,714 The District has issued general obligation bonds to fund these projects as more fully described in Note 8. In addition, in connection with construction of the Middle School, the District was required by the local municipality to obtain several letters-of- credit to ensure completion of required roadwork and traffic signal installation totaling $ 683,638. 20. New accounting pronouncements During the year ended June 30, 2001, the District implemented Government Accounting Standards Board (GASB) Statement No. 33, ~Accounting and Financial Reporting for Nonexchange Transactions". The effect of GASB 33 had no impact on revenue or fund balance of the District. However, assets and liabilities were both increased for revenues meeting the definition of Nonexchange transactions. During the year beginning July 1, 2002, the District will be required to implement GASB 34, ~Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments". The effect of GASB 34 will significantly affect how the District presents its financial statements. The District receives information from various sources, including the Pennsylvania Department of Education, and expects to be ready to satisfactorily implement this accounting standard. - 24 - SUPPLEMENTARY INFORMATION MECHANICSBURG AREA SCHOOL DISTRICT GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2001 Revenue Local sources Current real estate taxes Public utility realty tax Current per capita taxes Current Act 511 per capita taxes Occupation privilege taxes Current occupation taxes Real estate transfer taxes Earned income taxes Delinquent taxes, all levies Tuition and other payments from patrons Earnings from temporary deposits and investments Student activities Rent frgm School and other facilities Community services activities Miscellaneous revenue Total local sources State sources Basic instructional subsidy Homebound instruction Vocational education School performance incentives Special education Transportation Rentals and Sinking Fund payments Driver education Health services Social security Retirement Read to succeed Tuition - court placed students Link to learn Alternative education grant Miscellaneous grants Actual Budget Variance Favorable (Unfavorable) $ 14,410,054 $ 14,409,287 $ 767 64,479 91,000 (26,521) 74,367 75,354 (987) 74,367 75,354 (987) 80,180 74,667 5,513 3,150,584 3,253,646 (103,062) 386,666 375,708 10,958 2,499,365 2,394,729 104,636 529,468 445,000 84,468 21,269,530 8,340 642,263 13,584 28,286 137,983 2,286 832,742 22,102,272 4,354,514 74 18,080 6,837 1,327,660 282,145 74,594 6,030 90,045 657,100 153,677 46,872 15,180 34,085 17,500 21,194,745 12,500 493,000 13,800 11,900 95,000 1,200 627,400 21,822,145 4,316,371 16,849 6,837 1,246,793 250,000 74,594 7,000 85,000 665,781 173,725 56,250 15,000 11,500 29,859 17,500 6,973,059 7,084,393 74,785 (4,160) 149,263 (216) 16,386 42,983 1,086 205,342 280,127 38,143 74 80,867 32,145 (970) 5,045 (8,681) (20,048) (9,378) 180 (11,500) 4,226 111,334 - 25 - MECHANICSBURG AREA SCHOOL DISTRICT GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (Cont'd.) YEAR ENDED JUNE 30, 2001 Actual Budget Federal sources MLK Service Initiative $ 3,500 $ $ IDEA Part B 95,898 95,898 Title I 89,028 89,028 Title II 12,256 10,007 Title VI 44,473 11,894 Drug free schools 12,480 14,643 Other grants - 40,279 257,635 261,749 Total revenue 29,444,300 29,056,953 Regular programs Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Other purchased services Supplies Property Other objects Special programs Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Purchased property services Other purchased services Supplies Property Other objects 10,570,811 2,247,670 99,950 62,646 524,644 38,534 56,474 13,600,729 1,902,155 495,420 811,417 5,140 96,154 31,471 9,762 10,337 3,361,856 219,586 Vocational education programs Other purchased services 10,571,366 2,249,527 102,034 63,185 525,760 38,584 56,475 13,606,931 1,902,435 494,469 815,322 5,200 98,000 34,723 9,800 10,436 3,370,385 219,586 Variance Favorable (Unfavorable) 3,500 2,249 32,579 (2,163) (40,279) (4,114) 387,347 555 1,857 2,084 539 1,116 50 1 6,202 280 (951) 3,905 60 1,846 3,252 38 99 8,529 0 - 26 - MECHANICSBURG AREA SCHOOL DISTRICT GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (Cont'd.) YEAR ENDED JUNE 30, 2001 Expenditures Other instructional programs Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Purchased property services Other purchased services Supplies Adult education programs Personnel services - salaries Personnel services - employee benefits Community College education programs Other purchased services Total instruction Support services - pupil personnel Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Other purchased services Supplies Other objects Support services - instructional staff Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Purchased property services Other purchased services Supplies Property Other objects Actual Budget $ 226,143 $ 229,568 54,316 54,333 1,980 7,003 14,597 84,198 388,237 0 363,324 17,933,732 684,526 135,445 39,712 3,560 28,405 572 892,220 782,858 173,332 10,499 5,523 2,714 189,371 376,895 53,197 1,594,389 2,160 7,042 15,000 84,253 392,356 1,000 130 1,130 363,546 17,953,934 684,594 136,387 43,384 3,620 28,487 6OO 897,072 785,019 173,364 21,436 5,700 2,750 189,375 379,200 53,197 1,610,041 Variance Favorable (Unfavorable) $ 3,425 17 180 39 403 55 4,119 1,000 130 1,130 222 20,202 68 942 3,672 60 82 28 4,852 2,161 32 10,937 177 36 4 2,305 15,652 - 27 - MECHANICSBURG AREA SCHOOL DISTRICT GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (Cont'd.) YEAR ENDED JUNE 30, 2001 Expenditures Actual Support services - administration Personnel services - salaries $ 1,168,102 $ Personnel services - employee benefits 244,322 Purchased professional and technical services 180,950 Purchased property services 17,081 Other purchased services 52,659 Supplies 38,708 Other objects 41,989 Support services - pupil health Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Other purchased services Supplies Other objects Support services - business Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Other purchased services Supplies Other objects Operation and maintenance of plant services Personnel services - salaries Personnel services - employee benefits Purchased property services Other purchased services Supplies Property Other objects 1,743,811 290,116 84,813 980 893 7,013 372 384,187 226,217 62,777 18,707 4,109 29,578 8,640 350,028 759,379 236,886 559,127 55,066 499,936 17,060 25,278 2,152,732 Budget Variance Favorable (Unfavorable) 1,168,123 $ 21 244,364 42 181,204 22,200 52,745 38,787 42,020 1,749,443 293,123 84,931 1,150 925 7,046 4OO 387,575 226,251 62,925 19,093 5,166 29,593 8,670 351,698 761,571 236,968 565,309 55,783 503,388 17,100 25,400 2,165,519 254 5,119 86 79 31 5,632 3,007 118 170 32 33 28 3,388 34 148 386 1,057 15 30 1,670 2,192 82 6,182 717 3,452 40 122 12,787 - 28 - MECHANICSBURG AREA SCHOOL DISTRICT GENEP~AL FUND STATEMENT OF REVENUE, EXPENDITURES A/TD CHANGES IN FUND BALANCES (Cont'd.) YEAR ENDED JUNE 30, 2001 Expenditures Student transportation services Personnel services - salaries Personnel services - employee benefits Other purchased services Supplies Property Other objects Central services Supplies Other support services Other purchased services Total support services Student activities Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Other purchased services Supplies Property Other objects Community services Personnel services - salaries Personnel services - employee benefits Purchased professional and technical services Other purchased services Supplies Other objects Total operation of noninstructional services Actual Budget Variance Favorable (Unfavorable) $ 21,559 $ 21,626 $ 67 3,515 3,549 34 884,226 888,145 3,919 50,582 50,600 18 - 550 550 3,426 3,600 174 963,308 968,070 4,762 5,650 8,000 2,350 90,796 90,806 10 8,177,121 8,228,224 51,103 356,604 44,247 10,300 20,045 30,109 11,915 39,810 513,030 91,859 23,121 121,961 7,895 1,125 8,021 356,606 47,406 10,300 20,113 30,982 12,000 39,900 517,307 112,112 23,169 122,000 10,000 2,400 9,640 279,321 796,628 253,982 767,012 2 3,159 68 873 85 90 4,277 20,253 48 39 2,105 1,275 1,619 25,339 29,616 -29 - MECHANICSBURG AREA SCHOOL DISTRICT GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (Cont'd.) YEAR ENDED JUNE 30, 2001 Expenditures Facilities acquisitions, construction, and improvement services Purchased property services Property Total expenditures Excess of revenue over expenditures Other financing sources (uses) Bond proceeds Bond issuance costs Sale of fixed assets Debt service payments Transfers from other funds Governmental fund transfers Food service transfers Total other financing sources (uses) Excess of revenue and other financing sources over (under) expenditures and other financing uses Actual Budget Variance Favorable (Unfavorable) $ 41,400 $ 42,100 $ 700 461,015 461,100 85 502,415 503,200 785 27,380,280 27,481,986 101,706 2,064,020 . 1,574,967 489,053 (2,283,970) (118,056) (2,402,026) (2,283,971) (118,056) (2,402,027) (827,060) (338,006) 489,054 Fund balances, July 1, 2000 Fund balances, June 30, 2001 4,368,204 $ 4,030,19__8 3,918,969 $ 449,235 $ 938 289 See accompanying report on supplementary information. - 30 - MECHANICSBURG AREA SCHOOL DISTRICT COMBINING BALANCE SHEET ALL CONSTRUCTION FUNDS JUNE 30, 2001 Assets Investments Accounts receivable Total assets Liabilities and fund equity Liabilities Due to general fund Accounts payable Total liabilities Fund equity Reserved fund balances Total liabilities and fund equity GOB Series GOB Series GOB Series 1993 1998 2000 $ - $ 9,975,923 - 72,790 $ 0 $ 10 048 713 $ 3,797,430 $ 3,797.430 $ $ 15,392 - 226,763 0 0 242,155 0 10,048,713 3,555,275 $ ===~==~0 $ 1__0,048,71--3 $ 3,797,430 See accompanying report on supplementary information. - 31 - Variable GON Series A Of 2000 $ 5,152,895 $ 5,152,895 0 5,152,895 $ 5.152.895 Emmaus Bond Pool, 2000 GOB Series 2001 $ 9,954,974 $ 9.954.974 Total $ 42,784,456 72,790 $ 42,857,246 $ 13,903,234 $ 13,9~03.234 $ 2,379 $ - $ 17,771 85,214 - 311,977 87,593 0 329,748 13,815,641 9,954,974 42,527,498 $ 13 903 234 $ 9,954,974 $ 42,857,246 MECHANICSBURG AREA SCHOOL DISTRICT COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL CONSTRUCTION FUNDS YEAR ENDED JUNE 30, 2001 Revenue and other financing sources Investments income Bond proceeds Total revenue and other financing sources Expenditures and other financing uses Facilities acquisition, construction and improvement services Other financing uses Total expenditures and other financing uses Excess of revenue and other financing sources over (under) expenditures and other financing uses Fund balances, July 1, 2000 Fund balances, June 30, 2001 GOB Series GOB Series GOB Series 1993 1998 2000 $ 1,089 $ 584,325 $ 253,146 1,089 584,325 253,146 25,666 - 1,187,102 - 114,799 25,666 0 1,301,901 (24,577) 584,325 (1,048,755) 24,577 9,464,388 4,604,030 $ ~0 $ 10.048.71____~3 $ 3,555,27__~5 See accompanying report on supplementary information. - 32 - Variable GON Series A Emmaus Bond of 2000 Pool, 2000 GOB Series 2001 Total $ 104,137 $ 2,104,020 10,000,000 10,000,000 $ 288,426 $ 872,897 288,426 - 1,301,164 74,351 675,982 74,351 1,977,146 214,075 (1,104,249) 4,938,820 14,919,890 $ 13,815,641 872,897 10,104,137 12,104,020 2,513,932 149,163 1,014,295 149,163 3,528,227 9,954,974 8,575,793 0 33,951,705 $ 5,152,895 $ 9 954 974 $ 42,527,498 MECHANICSBURG AREA SCHOOL DISTRICT SPECIAL REVENUE FUND - ATHLETIC ASSOCIATION STATEMENT OF REVENUE AND EXPENDITURES YEAR ENDED JUNE 30, 2001 Revenue Season tickets Football gate Jr. High gate Basketball gate Soccer gate Volleyball gate Wrestling gate Program sales Program ads Lost equipment Golf tournament Concession stand District playoff General Fund Miscellaneous Total revenue Expenditures Football Jr. High football Girls' sports Basketball Wrestling Swinu~ing Baseball Soccer Track Golf Golf tournament Cross country Volleyball Tennis District III and state playoffs Training supplies Dues, subscriptions and meetings Purchased services Miscellaneous utilities Jr. High other sports Concession stand Travel and gas Total expenditures Excess revenue (under) expenditures See accompanying report on supplementary information. $ 11,255 32,069 797 14,905 4,044 3,593 4,602 1,151 4,731 1,427 5,900 4,074 7,608 45,000 4,621 145,777 19,876 10,189 22,164 5,889 4,385 4,953 8,982 7,912 4,974 2,878 4,576 2,582 4,082 1,589 9,215 5,380 6,615 1,268 1,326 310 17,380 142 854 147,521 - 33 - MECHANICSBURG AREA SCHOOL DISTRICT COMBINING BALANCE SHEET EXPENDABLE, NON-EXPENDABLE TRUST AND DISTRICT AGENCY FUNDS JUNE 30, 2001 Cash and cash equivalents Due from other funds Total assets Liabilities Due to other funds Due to other organizations Total liabilities Fund equity Reserved fund balances Total liabilities a~d fund equity Fiduciary Funds Total Expendable Non-expendable Trust Trust Trust Funds $ 14,653 $ 63,833 $ 1,898 $ - $ 1,898 $ 0 1,898 i6,551 61,935 Agency Fund Total Trust District And Agency A~ency Fund Funds 78,486 $ 140,049 $ 218,535 1,898 1,898 ~ $ ~ $ 220,43~ 1,898 $ $ 1,898 140,049 140,049 1,898 78,486 140,049 141,947 78,486 See accompanying report on supplementary information. - 34 - MECHANICSBURG AREA SCHOOL DISTRICT COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL TRUST FUNDS YEAR ENDED JUNE 30, 2001 Revenue and other financing sources Investment income Miscellaneous revenue Total operating revenue Operating expenses Supplies and services Scholarship awards Total operating expenses Operating income Scholarship transfers from Activity Fund Transfers to (from) trust accounts Net income (loss) Reserved fund balance, July 1, 2000 Reserved fund balance, June 30, 2001 Expendable $ 88 7,722 7.810 61 7, ~42 7,603 207 12,943 3,401 16,551 0 Non-expendable Trust $ 3,336 3.336 3,336 Total $ 3,424 7.722 11.146 61 7,542 7.603 3,543 12,943 (7,401) (65) 16,486 62.000 62.000 $ 61.955 $ 78.486 See accompanying report on supplementary information. - 35 -