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HomeMy WebLinkAbout99-00098 ~ ~~ ~ ~~ ~I ~! 9 •,i • ' Y . ~i ~~ zl z r-. i ~ iA ~1< - ~ - ..~ ,. _~..i l ~~ ~ ~ 'k tY ,,~ 2 v~f! .:. ~. 'k ~. _. '[~i t3~ --`':rZ ~., ~. `4 3 ~1 z n'- ~i I.'I s • • • n~ , qq. qs • M • 8IQ SPRING SCHOOL DISTRICT NEWVTLLE, DENNtlYLVANIA JUNE 30, 1998 ~~ 111 ~ Fagp Nu ber Indppendont auditors' report ... m 1 Combined balance chest - all fund types and account groups - Juna 30, 1998 ~ - ' 2 . Combined statement of revenue, expenditures and changes in fund balances -All Governmental Fund Types - year ended June 30, 1998 , . _ 3 ~ Statement of revenue, expenditures and charrges in fund balances -actual and budget - General - - and Athletic Funds - year ended June 30, 1998 4 - 5 Statement of revenue, expenses and changes in fund balance/retained earnings - ~• Food Service Fund -year ended .7une 30 1998 , 6 Statement of cash flows - Food Service Fund - year ended June 30, 1998 ~ Notes to financial statements - June 30 1998 , 8 - 1B ~. .. ~ CiREENAWALI' St COMPANX, P.C, crRrlrles rur~la AcoouNrnNrr 1AA110! IYtJNS f~.a, fox 8 4OO ~IIEBT MAIN STREET ARD R alllrNAWA1.T of WOT MMIIIlT tTll!!T rr~txr r. IIa1YMAN MECHANIwrulro. PENNlYLVANIA 17095 cAxwln, rA Imn KMW M xllNfallR OOI1rAl1 l xM.Y PIA NbYlti A _,_. nm Tae ~Te] rpx Irl+1 nAOlri A A. MBIN6G I~If11RAY9e11 rAx ITITI Tee~aTal c mwAAS Rrx11Rl, 1!. ~ INDEPGVDENT AjtDITORS_,REpOR~ ©oard of School Directors $i.g Spring School District Nawville, Pennsylvania We have audited Che accompanying general-purpose financial statements oP Big Spring School District as of Juna 30, 1998 and for the year then ended. These genera].-purpose financial statements are the resporleibillty of the District's management. Our responsibility is to express an opinion on these general-purpose l.inancial atataments based on our audit, r We conducted our audit in accordance with generally accepted auditing standards and 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 whetlrer the general-purpose financial atataments are free of material misstatement. An audit includes exarnini.ng, 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 ae evaluating the overall general-purpose financial statement presentation. We believe that our audit 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 $ig Spring School District as of June 30, 1998, the results of itE operations and the cash flows of its Fond Service Fund Cor the year then ended, in conformity with generally accepted accounting principles, In accordance with Government Auditing Standards, we have also issued reports dated September 23, 1998 on our consideration of $ig Spr.tng School District's internal control structure and on its compliance with laws and regulations. .i `"~ P~. GREENAWAL'I & COM ANY, P.C. 9eptembe; 23, 1998 Mechanicsburg, Pennsylvania - 1 - t MEMrER9 - AMERICAN INSTRIRE nr l'F.RTIFIF.G PUBLIC pCCOI'N1'ANTti -- 14:NNFYLVANIA INNTITUTF. Itr CERTIFIED PUNLII' ACCn11NTANTS 8IU 9PRINU SCHOOL DISTRICT COMBINED BALANCE SHEET - ALL FVND TYPES AND ACCOUNT UROUP9 - J1?NE 30, 1998 v„ _ °ovarnmantal Fund Twes _ Capital Capital Athletic &eserva P#,'p.~QSc~E Aseats Cash $ 420,73? Investments, at coat 4,220,02E Due from other. funds 86,221 Accounts receivable 1,019,904 Delinquent taxes receivable (net of $ 412,305 allowance for uncollectibles) 450,000 Inventories of supplies 50,000 Food service equipment (net of $ 221,1,92 accumulated depreciation) - Lapd, buildings and equipment - Amount to be provided for general long-term debt , ~ $ 11,178 $ 288,399 $ 59,392 ~ B9 - _ ~ Total $ .64255,766 $ 11,267 $ 288.399 Liabilities Payroll and benefits payable $ 1,001,832 Accounts payable 225,489 Deferred revenue 304,010 Due to other funds _ Due to student organizations - Bonds and notes payable - Compensated absences Total liabilities _1692.131 Fund equity 2nvested in inventories 50,000 Invested in general fixed aesr.te _ Fund balances/ retained earnings Reserved _ Unreserved 4.513,635 Total tLnd equity a,s6 635 Total $ 6,255,766 $ $ 989 -~ 61,009 .-.~~O.Q $ 59,392 $ - 1,500 1,500 b 10.778 _ 1A,778 $ 11,267 227,390 X27.390 $ 288,399 The accompanying Horse era an integral part of these financial statements, 2 - 57,892 57,892 $ 59,392 ~, , Proprietary Fu Tvoer Biduniary Fu d T n vuee Ar~coyn t Orouue Faod 9ervice Actlvlty F tlenaral i en, d Y~~aatu oeneral Long- Term Debt $ 115,817 g 140,062 $ $ - 78,732 _ ..4;787 _ - w- 27,442 - _ - 149,801 _ _ r - - „ 16,G24,269 - _ 5. 346.7~Q $ 396.579 $ 140,062 $ 16;624.269 $ 5.346,710 ' Q ~ _ . $ - $ - $ - $ - 35,737 14,247 - _ _ @6,221 - _ _ - 140, 062 - - - - - 4,5@0,'000 @5,137 7 71 __ _ 221,342 140.062 -0- ~ 5. 346.7] Q , '- - - - 16,624,269 - 64,664 _ _ .~ 110.57 _ ~_ i 175,237 -0- 16.624,269 -0- "y 396.579 $ 140.062 $ 16,624,269 $ 5,346.710 BIQ SPRING 9CHQ0G bISTRICT COMBINED STATEMENT OF REVENUE,' EXPENDITURES AND CHANGIES IN FUND BALANCES ALL CIOVERNMENTAL FUND TYPES SEAR ENDED JUNE 30, 1998 Capital .Capital Debt c7eneral Athletic Reserve Proieete Service Revenue Local eourcee $ 10,104,544 $ 43,644 $ 18,304 $ 461. $ 493 ~ State eourcee 9,797,912 - - _ Federal eourcee 245,507 _ _ ', Other financing eourcee 11,345 316.594 250,000 ~__~ Total revenue 20,199,384 _ 340 242 264,304 ~ q93 • Expenditures Instruction 32,542,416 - 196,672 ~ _ _ Support services 6,156,348 - 246,432 - _ Operation oP ~ noninetruc- tional services 319,694 352,692 .. _' Other financing ueos 892,492 _ _ 9,949 Total expenditures 19.951.350 ,_52.692 ~ 44 3.708 ,-i?- 9.949 Excess of revenue over (under) expenditures 248,034 7,550 (174,796) 461 (9,496.) (`,9 Fund balances, July 1, 1997 4,265,597 _ 3.2,x@ 402,x¢ 57,031 _ 9.486 Fund balances, June 30, 1998 $ 4,513.63y5 $ 10,778 $ 227.390 $ ~~ 5~ '7,892 $ -0_ 'The accompanying notes are an integral part of these financial statements. 3 ~-, HID SPRINO SCHOOL DISTRICT STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUNb BALANCES - ACTUAL AND HIIDOET GENERAL AN- ATHLETIC CUNDS YEAR ENDE- JUNE 30, 1995 ~, . 0ener~ ~ Variance to 1 ~~-~.- E id et Favorable (Unfavorable) Revenue Local sources State sources ~ $ 10,L09,584 $ 9,479,110 $ 625,474 ~ Federal Sources 9'797'912 9,675,068 122 844 Other financing sources 285,507 330,115 (44,608) 11,385 11. sac ToCal revenue .20,199.388 19 484 93 _..~.._.~.~-_ 735.095 Expenditures _ Q Instruction Regular programs Special programs 9,340,519 9,409,390 68,576 Vocational education programs 2,211,784 2,217,572 5,788 Other instructional programs 441,967 585 893 449,393 7,426 ~ :Adult education programs , 585,941 48 ?,358 _ 3.331 _ 973 ' Total insCructicn .12,582,816 - 12.665 627 . _ 82.811 Support services Pupil personnel Instructional staff 508,546 512,974 4,428 Administration 691,658 714,166 22,978 Pupil health 1,286,114 1,289,384 3,270 Business 160,424 160,430 g - Operation and maintenance of 367,197 381,6'70 14,473 plant services Student transportation services 1,736,836 1,762,551 25,715 ~~ ~' , Other support services 1,355,523 1,355,897 374- 50 020 51.857 1,837 '- Total supporC services - 6 56.3 .6,228.929 72,581 - ~. (Continued) 4 i ~iJ is Athletic „ __~ Variance Favorable Actual Bu aet (Unfavorable) $ 43,648 $ 42,700 $ 94B ' 316,594 322,306 (5,7,~T) 360,242 365,006 (4.763) , 6J - _ _0. _0 .0_ .p_ _0 _0. tl , ' . OId SPRINd 3CHUOL pISTRICT STATEMENT OF REVENUE, EXPENDITURES AND CHANdE9 YN FUND BALANCES •• ACTUAL AND BUDdET dENERAL AND A1`HLETIC FUNDS (Cont'd,) YEAR ENDED JUNE 30, 1990 Expenditures (Cont'd.) Operation of nonlnetruetional eervicea Student activities Community eervicea Total operation of non- inetructional services Other financing uses Debt service Fund transfers Budgetary reserve Total other financing uses Total expenditures Excess of revenue over (under) expenditures Fund balances, July 1, 1997 Fund balances, June .30, 1990 (J The accompanying notes era an integral part of these financial statements. - 5 - ~~ -. -- d-ene~l Variance Favorable to 1 9udaet (Unfavorable) $ 302,924 $ 307,237 $ 4,313 16,770 - 16,771 ~ 1 319.699 324.008 ~ 4,314 ' 553,492 553,503 11 339,00.0 710,000 371,000 _, 2,226 2,226 ~ 092.492 1.26529 _ 373.27 19,51 50 20.484.293 532,943 248,030 (1,000,000) 1,248,0.38 ~ _9,265,597 4,195,926 69,671 $ ..4,513,675 $ 3,195,926 $ 1.317.709 {~ t~ Varianoe Favorable ' $sS~V.Oi Qu~aet (UnEavor~]F+ S 352;692 $ 365,006 $ 12,314 ~ ~ , _.~i.~6,Q2s 365,006 12.3]4 ,. ~., - _ .- -0c _, _0_ -0- 352,.~~. _ 365,006 12.314 ~ 7,550 -0- 7,550 3,228 -0- 3`228 ... $ 10.778 $ -0- S 10...,778. U ~ '. yy,. ~. s~ _ . _ ~ ~ ~_. SIO SPRTNtl SCHOOL DISTF:ICT STATEMENT OF REVENUE, EXPENSES AND ~ CHANOE9 IN FUND FIALANCE/RETAINED EARNINtlB FOOD SERVICE FUND YEAR ENDED JUNE 30, 1498 ~ Operating revenue 5alee $ 561.129 operating expenses Aalaries and wages 313,913 Employee bene£ite ~ Food and milk 130,778 Oeperal supplies 335,317 Repairs and maintenance 17,676 Utilities and £uel 13,195 ' Depreciation ~ - 35,000 23, 0¢2 ~~ Total operating expenses _868.941. Operating lose (307.812) i Nonoperaking revenue State sources Meal subsidies 18,697 9oclal security and retirement subsidies 23,497 Federal sources Meal subsidise ,. 167,465 Donated commodities 42,87.9 Interest earned S.93g d Total nonoperating revonue 258.472 ' ' Lose before transfers (49,340) Fund tranaPars tlaneral Fund contributed services 28.000 Net loss (21,340)- ' Fund balance/retained earnings, July 1, 1997 196,577 ~7 Fund balance/retained earnings, June 30, 1498 $ 175,237 The aecompa.nying notes are an integral part of these Pinancial statements. - 6 - b BIO BpRINO 9CNOOL pISTRICT STATEMENT OF CASH FLOWS FO00 SERVICE FUND YEAR ENDEO JUNE 30, 1998 Operating activities ,w Operating loss $ (307,812) Adjustments to reconcile operating loss to net cash used in operating activities Depreciation 23,062 Decrease (increase) in assets Accounts receivable (2,333) w Inventories (3,417) Increase (decz'ease( in liabilities Payroll and benefits payable (7,177) Accounts payable 35,737 Deferred revenue 4 797 Due to other funds - ' 81, 961 ~ Compensated absences _ 7.401 Net cash used in operating activities 161,741,1 Non capital financing activities Orante and subsidies ~ State sources 42,194 Federal sources 210,344 Fund transfers (General Fund contributed services) 28.000 Net cash provided by non capital financing activities 280,538 ~ ' Investing activities Purchase of equipment ~ (g 492) Increase in investments (4,060) Interest earned ,,,~ 5, 9,39, Net cash used in investing activities (6,61¢) Net increase in cash 106,179 Cash, July 1, 1997 9,638 Cash, June 3U, 1998 $ 115,817 The accompanying notes are an integral part oE,theae financial' statemente. i+ - 7 - ,~ BIq sPRINr SCHOOL, D1'STRICT NOTE;9 TO FINANCIAL STATEMENTS JUNE 10, 1998 1. Reporting entity Hig Spring School. District is the .Level of government which has oversight responsibility and co t l n ro over activities related to publlr, school educatlori, The report includes servi ces provided by the District to residents within its boundaries; the Cumberland count Tow hi ~ y ns ps of Caoke, Lower FrankPord, Upper Frankford, Lower Mifflin, Upper Mifflin, North Newton A th w , au Ne ton, Penn and West Penneboro, and the Borough of Newville, Services provided inr lud . e a comprehensive curriculum far primary and secondary education as well as special educati d on an vocational education programs. 1'he District reraives zevenue from local, state and federal sources and moat r_amply with the requirements of these Fundi ng sources. Criteria established in governmental Accounting Standards Heard SCatement Number 14 were used in determining the entities to be included in the reporting entity, These criteria include ba i i s c tems surh as Pinar~cial interdependency, selection oP governing authority deeignar io F , , n a . management, ahility to eignif.ieantly influence operations, accountability for fiea l ~ a matters, scope of public service and special financing relationships. All operations of the Di t i t r s c are included in the reporting entity. There are no component unite chat meet the above criteria for inclusion in this reporting entity. However, the District is a participant in two joinCly-governed operations, each of which ie a separate legal entity that offers educational ~ servicee to the District and its residents. .Each entity serves several school districts, so the following entities are not included in this reporting entity, Capital Area Intermediate Unit provides special education services and programs, Cumberland-Perry Area Vocational-Technical School provides vocational and technical education servicee and programs. 2. St;mmary of significant aacountina policies The accounting records of Hig 5priny Schaol District are maintairtad on the 6asie R1 of accounting practices prescribed or permitted by the Manual oP Accounting and Related Financial Procedures for Pennsylvania School Systems, issued by the Pennsylvania Department of'Educatlon 1n accorddnce with the provisions of the School Lawe 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; + Fund accounting The accounting records of the District are organized an the basis of fund types and account groups, Each fund type may consist of several different funds. Each fund ie 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 Big Spziny School District are as follawa: - 8 - r HIG SPRING 9CHOUL DISTRICT NO'PE5 TU FINANCIAL STATEMENTS (Cont'd,l JUNE 30, 1998 2, Summary of significant accounting policies (Cont'd,l Fund accounting (Cont'd,) Governmental Fyp-d es - Theae are the funds through which mast 1~ governmental functions era provided, The acquisition, use and balances of khe Diatrlct's expendable financial reaoureea and related liabilities (except those accounted for in proprietary futrdel are accounted for through governmental. funds. The General Fund accounts for all financial resources except ~ those required to be accounted for in other funds. 'fhe majority of Aistrict artivitiee, including instruction, administration and other eervicea are accounted for in this fund. Tha Athletic Fund is a special revenue fund that accountn for the revenues and expenditures for athletic purposes. ~' The Capital Reserve Fund provides Por unspecified future construction or equipment needs. The Capital. Projects Fund accounts for bond procaeda and the expenditure of. those Eunde to construct an elementary school. ~ Remaining funds will be available for renovations, improvements and equipment acquisitions. Tha Aebt Service Fund accounts for proceeds of general obligation bonds :and notes, that were issued to refund. prior bonds and notes. Any remaining proceeds are used to reduce the • initial debt service payment on the new series of bonds or notes. p~-gpy'ietarv Fund Twee - These funds account for operations that are financed and operated in a manner similar to private business enterprises,.. i«7 The Food Service Fund accounts for the financial transactions associated with the operations of the cafeterias, Fiduc~~v Fund Twee ('Iruat and Anency Funds) - Theae. funds account for assets held in a trustee capacity or as an agent for other funds or entities. The Activity Fund accounts for programs operated and sponsored by various clubs and organizations within the schools. {lc count GrOUDa - These account groups are not Eunde, They are only concerned with the measurement of financial position and are not involved with the measurement of results of operation. 9 - 47 BId 9PRIAId 9CNOOL DISTRICT NOTES TO FT.NANCIAL STATEMENT (cont'd.l '. JUNE 30, 1998 ' 2. Summary o! significant accounting policies (Cont'd•) ,Fund accounting ICont'd.) deneral Fixed Assets accounts for land, buildings and equipmenl•, deneral Long-Tartu Debt accounta for Gonda, notes and compensated absences payable in future yearn, ~ easie of. presentation The accounting and financial presentation methods of the diff,axent fund types are based on their measurement focus, which determines when revenues and expenditures era recoynizad. governmental F'und,~Aae - These Punde use the "current financial reeourcee" measurement focus, which is a modified accrual method, Revenues era recorded when susceptible to accrual. (both measurable and available) Available means collected within Che current period or soon enough thereafter L•o pay current liabilities. Q i Expenditures era generally recognized when the related fund liability ie incurred. Excepticna to this general rule include principal and interest on general long-term debt which le recognized when due, Disbursements for inventory Cype items and prepaid expenses are considered expenditures at the time of purchase. Proorietarv Fund ee - The Food Service Fund uses the "Plow of economic reeourcee" measurement focus, which is a full accrual method. Donatsd commodities era inventoried at an estimated value when received. Inventories (valued on the first-in, first-out method) C,# are recorded as an asset, and the portion represented by donated commodities is recorded ae deferred revenue. Food service equipment is capitalized, with dapreciati.on (computed on the straight-line method using an estimated useful life of 12 years) recorded as an operating expense. The equipment (net of 0} accumulated depreciation) is offset by a reserved portion of retained earnings. Compensated abaencea are recognized as operating expenses and the cumulative amount ie recorded as a liability within the fund, The liability is offset by a reduction in the reserved portion of retained &7 earnings . - 10 - E3 n BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENT ICont'd.) JUNE 30, 1998 ~, 2, Summary of significant accounting policies (Cont'd.) Basis of presentation (Cont'd.) Fiduclary~'u~d TyBes (Trust and Aaen~,, Fundel - These funds use a modified accrual method. They are cuetodial.in nature (assets equal Liabilities), and are not involved with the measurement of results of operations (revenues and expenditures), account Grouo{i - Land, buildings and equipment are presented at coat, Depreciation is not computed on these assets, Additions and disposals had been estimated since the previous outside valuation report, which was performed in 1992. As of July 1997, the District obtained an updated report which i.a to be revised annually for additions and disposals. Long-term debt ie offset by an amount to ba provided by future taxation or other revenue sources. General obligation bonds and ~ notes payable in tut:urn years are recorded as UletricC debt. InL•ereat cn these bonds and notes is recognized when such interest is due. Compensated absences (those for which employees receive pay) are presented using the termination payment method. A liability is computed using estimates which apply historical data to current ~ factors. The District maintains records of unused leave and applies the contracted rata for employees eligible for termination payments. The District allows only restricted sabbatical leave and therefore. does not present any liability in advance of the sa.bbatica7.. 0 Budgets T'he District adopts, prior to the beginning of each fiscal year, an annual budget for the General Fund and Athletic Fund. Apart 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 categorise) ae necessary. Unused appropriations expire at the end of each year. Revenue - Local sources Real estate, or,~cupation, residence and per capita taxes are levied ae 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 and also. estimated to be received within sixty days after the end of the fiscal year. Amounts estimated to be received between sixty days and one year after the end of the fiscal year are recorded as deferred revenue. An allowance Paz uncollectibles is recorded for. taxes estimated not to be collectible within one year after the end of the fiscal year. ,> tither 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. - 11 BIO SPRING SCHOOL DISTRICT NOTES TO .FINANCIAL STATEMENT'S (Cont'd,) ~ ... ~ JUNE 30, 1990 2. Summary of eignifiaant accounting policies (COnt'd,) Revenue - State sources State subsidies due the District ae current fiscal year ontitlamehte are reecynized 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 Pisca.l year are recognized as revenue in the current fiscal year. Inter-fund transactions Expenditures by the General Fund far t:he benefit of other funds era reflected in the respective statements of revenue and expenditures/expenses, based on management's estimates. The District dooe not attempt to allocate all costa which benefit the other funds due to the difficulties aseociakad with the measurement of such benefits.. Pension plan Substantially all full-time and part-time employees of the District parY,icipate in a cost-snaring multiple employer defined benefit pension plan. The District recognizes expenditures or expenses equal to its contractually-required contributions, subject to the modified accrual basis of accounting in governmental funds. 3. Cash and investments Cash (other than $ 00 cash on hand) consists of checking accounts in financial institutions and pooled funds in which the District owns a prorate share of the- . fund assets and is categorized ae followsi Carrying -. Value Insured (FDIC) Collateral held in the District's name Collateral not held in the District's name Pooled funds 12 - $ 259,392 -0- 2H0.480 539,872 495.629 Bank Balance $ 259, 392 -0- 300.09a 559, 487 996.432 $ O1 $ 1.555.919 F11 A 4J vJ 8I0 9PRIN0 SCHOQL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd,) JUNE 30, 1998 ~ ' 3. Cash and inveetmenta (Cont'd,) For purposes of the Food Sa=vice Fund statement of cash flown, cash consists of a checking account and pooled Eunds. Inveetmentn are ae tollowe: Pennsylvania Local Government Investment Tzuet $ 4.307.550 The inveetmenta, whose market value approximates coa t due to the short term nature of the inveetmenta, are categorized as follows: Insured (FLTC) $ _0_ Collateral held in the District's name _0_ Collateral not held in the District's name _p_' Pooled investments .p_ 4.307,560 $ 4.307.56Q The types of authozized investments are limited by state regulations. Investment policies followed during the year did not significantly alter the categorization of inveetmenta shown above. 4. Accounts receivable Accounts receivable are ae follows: General Athletic Food Service ~_ _~_ Fund Local sources Earned income taxes Other revenue items State sources Federal sources Other items $ 545,288 $ - $ _ 151,703 - 1,811 248,676 - 2,317 23,456 - 20,659 50.861 89 ' $~ 19 9 $ _. B9 $ 24,757 13 - DIO 5pRIN0 SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1198 5. Delinquent taxes receivable Delinquent taxes receivable and the related deferred revenue are ae Pollowe: ~' Real estate taxes $ 427,493 Occupation, residence and per capita taxes 434,912 Delinquent taxes receivable 862,30y Allowance for taxes estimated not to be collectible within one year 412,305 ~' Estimated to be collectible within one year 450,000 Estimated to be collectible within sixty days 100,000 Deferred revenue, delinquent taxes $ 350.000 6. Land, buil.dinge and equipment Changes in land, buildinye and equipment were ae Polloweo Adjust to July 1997 July 1, 1997 Valuation Additions ~.aDOBg-lg June 30. 1 Land and improvements Buildings and systems Equipment J General fixed assets $ 325,000 $ 1,110 $ -0-. $ - $ 326,110 12,175,000 '757,900 75,000 •~ 13,007,900 6.500.000 {3.734.741) -~ 525,000 ~ 3,290,259 $ 19,000.000 $ (2.975.731) $ 600,000 $ ~~~ $ 16.624.269 Food service equipment $ 369.601 $ -0- $ 8492 $ (7.000) $ 371.093 The above amounts .include approximately $ 230,000 for the District's Jacksonville and Centerville properties. The District is in the, process of selling these properties for approximately $ 190,000, pending all necessary approvals. 7• Donds and notes payable .Changes in bonds and notes payable were as follows: Scheduled De9Crintlon July 1, 1997 ~edemotione June 30, 19~ General obligation notes, 1997 Series $ 4.965,000 $ (385,000) $ 4.580.000 - 14 - HIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (COnt'd.l JUNE 30, 199H '/. Gonda and notes payable (COnt'd.) The notes, which boar interest at the fixed rate of 5.0755, are not pubject to ~ prepayment prior to the stated mandatory maturity dates. Scheduled debt service requirements are ae followsi Year Ending Jun~,30 Principal Interest Total ' 1999 $ 195,000 $ 237,„435 $ 427 435 2000 2001 ~ 350,000 222,539 , 572,539 ' . 2002 365, 000 209, 776 569, 776 2003 385,000 106,253 5'11;253 ' 2004 - 2009 405,000 .166,714 .571,714 2.880,000, 533,382 3,413,382 $ 4 0 00 $ 1.596,099 $ 6.12~6,099~ e. Compeneatad absences ~ Changes in compensated abaeneas were as follows: July 1, 1997 Net Chance Juno 30. 1998 General Long-Term Dsbt ' Teachers ' $ 556,220 $ (2,081) $ 553,347 M . . Custodians - 71,318 (12,729) 58,509 Secretaries 70,619 2,637 73,256 Aides ' 15,609 701 16,390 Administrators 4b.819 ~ 16,309 _5.128 ' ~ $ 762.673 $ 4,037 $ 766,710 1~ - Food Service Fund $ _ 77.736 $ 7.401 $ 85,137 Payments f.or compensated absences recorded in General Long-Term Debt are mado Chrottgh General Fund expend.i.tures i n the year the absence to taken o r the employee retiree. At rrtiremenk or death, wh11e in School llistricC servi ce, employees (with at least 10 years service in the School Dist rict) or their beneficiaries shall choose one of the following opkione (subject to a maximum of $ 12,000 for administrators and $ 6,500 for all other employees) ; 1, Accumulated unused sick leave days times $ 5 0 per day (j 2. Number of full years af. service in khe Distr ict times $ 150 per year. - 15 ~. BTO SpRINO SC'HQOL UISTRTCT NOTE9 TO FINANCIAL STATEMENTS (COnt'd.) ,711N~ 30, 1998 9. pension plan ~ The District contributes to a governmental cost-sharing multiple-employer dsfined benefit pension plan administered by PSERS. Aenefit provisions of the plan are established under the provisions of the PSERS Code (the Codol and may be amended by an act of the Pennsylvania State Legislature, The plan provides retirement, disability and death benefits; legislatively mandated ad hoc cost-of-livittg adjustments, axed healthcare insurance premium assistance to qualifying plan members and beneficiaries. Tt also provides for refunds of a member's accumulated contribution upon termination of a member's employment in the public school sector. PSERS issues a publicly available financial report that includes Financial atatemente P.or the pl.att. That report may be obtained by writing to PSERS, P.O, Aox 125, Harrisburg, PA 17100-0125. The contribution policy is set by the Code and requires contributions by active employees and by participating employers. Plan members are required to contribute 5.25 percent of their compensation if they joined the plan before July 22, 1983, and 6.25 percenL• if they joined on or after that date, The contributions required of participating employers is based on an actuarial valuation and is expressed as ~ a percentage of annual covered payroll during the period for which the amount is determined. Districts pay the entire employer contribution rate and are reimbursed by the Commohwaalth in an amount equal to the Commonwealth's share as determined by the inr.;ome aid ratio (as defined in Act 29 of 1994), which is at least one-half of the total employer rate. The District's contributions to PSERS Y~r the yearn ending June 30, 1990, ].997 and 1996 Were $ 995,585, $ 1,175,594 ~ and $ 1,196,647, respectively. Those amounts are equal to the required contribution for each year. 10. Poatemployment benefits other than pension benefits Under the negotiations agreement with Aig Spring Education Association, the District'ehall provide Eor continuance of health care insurance after retirement until age 65. This health care insurance shall be at the retiree's expense, except that employees who retire after thirty or more years with the District, shall have up to five years of health care insurance benefits provided on the basis of the District paying 504 of the cost and the retiree paying 5U4 oP the coat. The District finances this benefit on a pay-ae-you-go basis. For the year ~ ended June 30, 1998 the District incurred a total cost of $ 25,207 to provide this benefit to 20 participants. 16 - fs7 a EItl 9PR'tN0'SCHOOG DISTRICT NOTE9 TO FINANCIAL 9TAT'EMENT9 (Cont~d~) ~ JUNE 30, 1998 11, Inber•fund transacticns ~ General Fund expenditures includes. contributed services and fund trauefere a® eollowsi Studenh. activities Athletic Fund $ 255,994 ' Aat•ivity Fund - - 47,330 Fund transfers Capital Reserve Fund 250,000 Food Service Fund '19,000 Athletic Fund G1, 000 ~ 12, Anticipated construction projects and related financiny The District has received a feasibility study with regard to new construction and renovations oP existing .school district facilities. It is .anticipated that between $ 20,000,000 and $ 35,000,000 will be needed but no Final determination has been made. Based upon this study, the District has obtained the following $ 30,000,000 of financing: General obligation bonds dated October 15, 1998 with scheduled maturities through April 1, 2018 $ 10,000,000 Variable rate loans from Emmaus General Authority A Dated No•ember 2, 1998 with maturity date of ' November 1, 2000 10,000,000 Dated Navemger 2, 1998 with maturity date of February 1, 2001 5,000,000 ' Dated January 4, 1999 with maturity date of February 1, 2018 which the District may prepay in whole or in part by giving 45 days written notice 5,000,000 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 emplcyees; and natural disasters,. The District maintains commercial insurance coverage covering each of Chose risks of lose. Management believes such coverage. is sufficient to preclude any signie.icant uninsured losses to the District. Settled claims have not exceeded this commercial coverage in any of Che past three fiscal years. V - 17 - ---- - . ~- n BIO 9PRIN0 SCHOOL DISTRICT NOTRS TO FINANCIAL 9TATEMEN'fS (Cant'd.l JUNE 30, 1998 13, Riak management (Cortt'd.) For State unemployment compensation laws, the District ie self-insured, which is a common practice for local governmental unite. Any unemployrnant claims era paid 6y the District on a quarterly basis as incurred. For workers' compensation insurance, approximately 80 Districts participate in a ~ public entity risk sharing pool (School Districts Insurance Conaortiuml for processing claims and obtaining reinsurance through commercial insurance carriers. Under this plan, the District's annual cost should not exceed standard commercial insurance rates. Over Che past two years, the District's health lneurance plan hae evolved Erom a traditional (premium only) plan to the current plan which allows each participant to choose one of the three coverage options available thrrntgh South Central Trust. Reserves remaining in the traditional plan and with South Central Trust are considered adequate to provide for incurred but unpaid claims. 14. Cammitmente and contingencies ~ The District's contract with its teaching staff is scheduled to expire in June 2001, In the normal course of business, khe District is subject to legal disputes and claims. T.he District does not anticipate any material lessee from any pending ;w or threatened litigation. In the normal course of preparing for the subsequent school year, the District hae awarded bide for various supplies, fuel contracts, etc. No major commitments in exceaa of routine requirements have been made by the District. ~' The District ie also audited by the State's Department of the Auditor General. Findinge, if any, from these audits could result in the repayment of funds, or~ the receipt of additional funds. - 18 - 4 ~. e ~'; ~' ~ `,, `~ „~ , , •f;. m_ ,-, ~~ ~ ~. (:,~t ,_ r.. qty F> ~ ~, , ' ~~~ ~~iL ,i. Cu t1 ~ ~J`I ~''T R,- ~~aa•a •