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Home My WebLink About99-00099 • • n u ~a. ~-'~~ i CAMP HILL SCHOOL DISTRICT CAMP HILL, PENNSYLVANIA .7tlNE all, 1990 ~rectinwnlt ~~ C'o~rpnay, p C VVi (, •srl~ei/ .~~i~~.i~ .Lyrvuv•nlcxft 4~ J r~ Tndependent auditors' report Cambined balance sheet - all fund types and account groups - June 30, 1998 Combined statement of revenue, expenditures d h i an c angel n fund balances - All Governmental Fund Types - year ended June 30, 1998 3 Combined statement of revenue, expenditures and changes in fund balances - budget and actual 6enaral Fund and Athletic Fund - year ended June 30, 1990 q _ 5 Combined statement of revenue, expenses and changes in retained earnings/fund balances - Proprietary Fund Types and Nonexpendabla Trust Funds - year ended June 30, 1998 ~ 6 .,..~ Combined statement of Dash flows - Proprietary Fund Types and Nonexpendabla Trust Funds - year ended June 30, 1998 ~ ;: ~ Notes to financial statements -June 30, 1998 8 22 +J GREENAWALT & COMPANY, P.C. ' GAIT TII IAD -U[L10 AGOOUNTANTA JAMIS A. LYUM HON'AAD [ DAaNAwur P.Cl, BOX B 400 W[aT MNN 5TN[[T QAm01V A. iNM#MAN ' 1011N H. KUNOlY1 A M[GNAIVN'7dBUgp. P[NNAYLVANIA J7058 H 1~KCLY 171T 7tltl~17tl3 !~ A. A. DNAA}IAWh1.T (197b19Nfl A. A. MbWDYI A[n[ADI MX 171A 7tltl~#7tl1 C. ADMAND NIXIIN.X, IA. n INDEPENDENT~_ITOPS' REPpRT # Board of School Directors Camp Hill School District Camp Hill, Pennsylvania 6} WI6T 1'OM![AT 1TAR1' GANIaLA, M 17011 (7171 HSY#7 ' IAN 17171 i7A-0fl# We have audited the accompanying general purpose financial statements of Camp Hill School Distrir..t as of June 30, 1998 and for the year then ended, as listed in the preceding indux. These general purpose financial statements are the zesponeibility of the District's management, Our responsibility is to express an opinion on those general purpose financial statements based oh our audit.. We conducted our audit in accordance with ganerallyaccepted auditing standards, Those standards require that we plan and perform the audit to obtain j reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting tho amounts and disclosures in tho general-purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, ae well as evaluating the overall general purpose financial statement presentation. {Ve believe thaL• our audit ,y 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 3ahool District ae of June 30, 1998, the results of its operations and the sash flows of ~,te Proprietary Fund Types and Nonexpendable Trust Funds foz the year then ended, in conformity with generally accepted accounting principles. GREENAWAL &CUMP P.C. .~? Octoberl4, 1.998 Mechanicsburg, Pennsylvania - 1 :,i Mk:MaENB - AMERICAN IN319TIRF. OF CERTIFIEn PUNLIC ACfeIfNTANT9 - PENNSYLVANIA INSTITCTF. qF CERTIFIED PIIaLIC ACCOUNfAN7S M•- CAMP HILL SCROQL DISTRICT COMBINED BALANCE SHERT - ALL FUND TYPES AND ACCOUNT f1ROUPS JUNE 30, 1998 Assets Cash and caah'equivalenta Investments belinquent Caxea receivable (net of allowance For uncol7.ectibles of $ 476, 010) Due from other funds Intergovernmental accounts receivable State subsidise receivable Federal subsidies receivable Other. accounts receivable Loans receivable - related parties Land and buildings Furnj.ahingp and equipment Food service equipment (net of acrumulataQ depreciation of $ 25,301) Amounts available in debt service funds Amount to b6 provided for the retirement of general long-Germ debt Total Liab111tiea Accrued payroll and benefits Accounts payable Deferred tax revenues Due to other funds Prepayments from persons or firms Due to student organizations General obligation notes payable Capital lease obligations Accumulated compensated absences Total liabilities Fund equity Invested ire general fixed assets Retained earnings Specific fund balance reserves Unreserved fund balances Total fund equity Total - - - - 812,416 },192,04,2. 23,261 - 1.192.043 23,261 Q3.• 16 $ 2 176 $ 23.261 $ 81 17 ~ The accompanying notes era an integral part of these financial statements. • ~.._._..___Si9v~nmental Fund Tvuee • Special Capital General Revenue Protect $ 341,79p $ 23,261 $ - ~ 1,507,102 - 434,184 194 , 949 - - 446,833 21,811 - - • 99,227 - 40,555 - - 180,634 - 27,020 - _' ~ ~ • $ 2,493,176 $ 23,261 $ 801,017 • '$ 560, 998 $ - $ - .86,603 - 68,601 190,384 - - • 446,033 - - 16,315 - _ • 1,301,133 -0- - .68,601 - 2 - ~ 0 d J Prapriotary ---_ Fund Twe@._ ~'iduriarv Fund Tvaea Arcount oroune Debt Food Agency General deneral 9crvioe 8er~ '~,ruat (Activitlee) Fixed AeeeCe j,4na-T~~ $ 370 $ 5,699 $ 40,,300 $ 84,729, -$ ' - $ _ .. .. 1,275 _ - - ~ 4,934,106 _ _ _ 3;804,700 _ 1 121 y .. _ _ _ - 170 - - ,_ 5.312.327 $ 970 $ ~ 820 $ 40.308 $ 86~QOq $ 8,638,806 $ 5,312,697 _ _ _ 400 _ - - 1,275 - ' _ . _ _ 85,604 - _ - - - : - 5,020,000 _ - - _ - 20,811 _ „_, 271,786 -0- -0- 1.275 86,004 -0- 5,312,697 - - - 8,638,806. - - 6,820 - _ 370 - 39,033 - 370 6,820 39.033 -D• 8,638,BOf -0- $ 370 $ 6.820 $ - _40,308 $ 86.004 $ 8,638.8G6 $ 5.312'69'> CAMP NILG SCNOOG DYSTRiCT' COMBINED STATEMENT OF REVEMIE, EXPENDI TURES AND CNANtlE9 IN FUND BALANCES - ' AGG WVERNMEtJTAG FUND TYPES YEAR ENDED JUNE 30, 1998 ppecial Capital Debt 4one:~a1 F+~v411LL4. EF.4~.~.~, SA£Xi.~S Revenue Looal snurces $ 8,096,033 $ 17,211 $ 40,102 $ 2,103.. w State sources 1,347,468 - - - Federal souroee _, 77, 274 ____ .~. TaCal revenue 9,20.775 _17.x,11 ~ 40,102 2,103 Expanditurea ® IneCrucCian 5,509,557 - Support se niices 2,576,281 - - - Operation of noninetructional services 235,988 92,054 - Facilitice acquisition, construction and C1 improvements 9,321 - 1,177,330 - Debt service Principal payments 312,504 - - Interest 2.79,597 - 48 Administrative expanses - _, 3.OOG, D Total expenditures 8,923,248 92.054 1.177.330 3,059 Sxceee oP. revenues over (under.) expenditures fi97,527 ~f74,843) (1,137.220) _ (951) Other financing sources (uses) :.9 Interfund transfers in 3,429 78,000 496,833 Refunds of prior years'. expendituree 180,6.99. - Net proceode from the issuance oP long-term debt 8,382 - - 4,984,517 Debt service - j.~) refunded bond issues - - - (4,984,517) ( Interfund transfers out X69 56 ) _ 13.429j. j Total other financing i snurces (uses) (377,,_g56) _- 78.000 446.833 (3.42.) ~ Excess aP revenues and other financing sources over (under) expenditures and ocher financiny uses 220,471 3,157 (690,395) (4,38 01< < Fund balances, July 1, 1997 -~Z1,572 ___.20.109 1_,-,OZ~.B11 rA ~~Ts,~r, >! ..d Fund balances, June 30, 1.998 $ 1.2,043 $ 3 2 ~ $ 18 2,416 ~ $ .,.^,..rsta. ,...!= The accompanying notes are an integral part of khese financial statements. J _ g .. • CAMP HILL SCHOOL DISTRICT COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ~ GENERAL FUND AND AT}ILETIC FUND YEAR ENDED JUNE 30, 199@ General Fund _ Variance Favorable Bu_ d-lc-et ct 1 (Unfavorable) Revenue • '- ~ Local sources --$ 7,849,375. $ 8,096,033. $ 246,658 State souroea 1,312,812 1,397,468 34,656 Federal sources 75.066 77.274 2,208 Total revenue x,237,253 9,520,775 283,522 Expenditures Instruction Regular programs 4,591,044 4,551,166 39,878 Special prayrams 810,239 799,125 61,114 ' Vocaticnal education programs 47,951 4%,698 253 Other instructional programs 72,438 70,484 1,954 ~ Community College education programs 98,000 91.08$ 6.916 Total instruction 5,619,672 5,509,557 110,115' Support services ~ Pupil personnel 476,535 457,429 19,106 Instructional staff 336,083 .295,311 40,772 .Administration 716,298 702,284 1,4,014 - Pupil health 1].1,640 109,793 1,855 Bueineae 208,225 199,322 8,903 Operation and maintenance of ' ~ plant services 747,358 740,358 7,000 Student transportation services 43,822 46,60% 3,155 -.. Central 6,100 4,459 1,64.1 Other 21,.086 20.68 __~ Total support services 2,673,55 2.,76,281 _9~.~74 ~ (ConCinuedl 4 j • • _ Athle ~ c Fund Variance Favorable ud a etu 1 (Unfavorable) $ 10,000 $ 14,069 $ 4,069 ]Ai000 14,069 9,069 _ _ - - _ ~, .0_ -~^ -0- -.~~~~_ COMEINED STAT MENT OFSREOCL DISTRICT' CHANGES IN E GENERAL pF~ gA~CES ~g~ XPENDITURES ~ AND ATHLETIC FUND (Cont'd.) YEAR ENDED JUNE 30, 998 AND ACTUAnLND Expenditures (Co d,) D servt~n of non1netructtonal x~es Student activities Community services Total operation of non, instructional services F and xi mprovemen t iservi ce ons t ruct i on Debt s service Total expenditures E eXSe °f revenue over (under! Penditures Dther financing sources (uses) Refundanof prior era in NetxPenditures Years, Proceeds from the issuance Ind f longterm debt erfund transfers out Total other financing sources (uses) Excess of revenues and sources over (under) e and other x her financing financi Penditures n5 uses Fund balances, July 1, 1997 Fund balances, June 30 1998 Ge e ~ Var-'_^-- A'=tu`1_ Favorable av le,~ $ 234,599 7S 56 9 800 5 q3~~ 1S' 1 8 592 162, 474 2 252 96,B7q 5~ 661 $ 220, 671 1 317 $ 13,928 ~ "- 6 33 ,_,_~~~ _'"'~,~ 3 1 ~. 9~~ ~ S 2 301 "'--~$ 8 23 `~ ~-},,~ p~ 4 3 • 7 27 3, 929 180,699 3'429 • ls, zzs 8,382 56 56 ) 77 0 6) 220, 971 $ ~~~ The acco 6~.,,6~= $ mPanYing notes are 1 192 43 $ an integral part op these financial statements -s_ 8, 3 B2 9 74J 123, 597 r .__4_06. 5~3 0 ,028 A } ~. Ath~etic Fund ~ Variance Favorable ~~ ctu 1 (Unfavorable) - $ 305,171 $ 89,027 $ 16,144 105.171 _ 89,027 16.144 0 ___0_ - p wl 105, 171 027 16. 14,g (95,171) (74.958) 20,213 ' -95,171 75,000 (20,171) ._.:. ,171 75.000 (20.171) : ; -0- 42 42 "0° __.3`,396 15.396 $ -0- $ 15,438 $ 38 - cJ CAMP HTLL SCHOOL DISTRICT ~ COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINdS/Fl1ND BALANCES PROPRIETARY FUND TYPES AND NONEXPENpA[3LE TRUST FUNDS - ' YEAR ENDED JUNE 30, 1994 Proprietary Fiduciary Fund TYP€_ Fund T~,g Food Nonexpendabla Service _Trust Funds Operating revenue Local sources - food servir_e revenue $ 91 214 $ ~ Local sources - donations , 80 Total operating ravanue 91.214 80 Operating expenses Food and milk Q Salaries and wages 54,923 - Employee benefits 50,909 Materials and supplies 13,712 _ 6,623 _ Property Depreciation 152 Scholarships 850 p 1.675 Total operating expenses 135.164 1.675 Operating income (lose) _, 43 955) (1,595) Nonoperating revenue (expenses) '.~. Interest income ~ '183 2,190 State sources 3.42.1 Total nonoparating revenue (expenses) 3.604 2.190 Tncome (loss) before transfers (40 351) 59S GV , Fund transfers ' General Fund contributed services. gq,q~i3 Nat income (lose) 4,382 595 ~~ Retained earnings/fund balances, Jttly 1, 1997 2.438 _ 38.438 Retained earnings/fund balances, June 30, 1998 $ 6,820 $ 39.033 ~~? The accompanying notes are an integral part of these financial statements. 6 - (~J ,__ r, ,:~ CAMP HILL SCHOOL DISTRICT COMBINEp STATEMENT OF CASH FLOWS ~',' PROPRIETARY FVNU TYPES ANU'NONERPENDABLE TRUST FUNDS YEAR ENDEU JUNE 30, 1998 ~ Proprietary Fiduciary Fund Twe Fu„a ,rwe Food Nonexpendable ' 3e ice, Trust Funds Cash flows from operatiny activities ~. .Opcrating_income (loos) $ (43,955) $ (1 595) Adjustments to reconcile operating lose to , net cash previded by (used for) operating acti vities Depreciation Due from other funds 050 1,275 G Net cash provided by (used for) operating activities (43.105) (320) Cash flows from noncapital financing activities Slats subsidies - social security and retirement reimbursements Ci' Fund t;anefere 3,421 _ 44,733 Net cash provided by noncapital ' financing activities 48.154 _0_ Caah flows from investing activities (~ Earnings on investments 183 2;190 Net increase (decrease) in cash and cash equivalents 5,232 1,870 Cash and cash equivalents, July 1, 1997 467 _ ,38.43Q . Cash and cash equivalents, Juna 30, 1998 $ 5.699- $ 40.308 ~. U' The accompanying notes are an intsgral part of these financial statement s.. ' 7 _ __ _.. r~ CAMP HILL SCHOOL DISTkICT PIOTE9 TO FINANCIAL STATEMENTS '~ - ~ JUNE ~30; 1998 - 1, Reporting entity ~ Camp Hill School District ie 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 ae well ae special education and vocational education programs, The District receives revenue from local, state and Federal sources and must comply with the requirements of Chase 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. Theca criteria include basic items such as financial interdependency, selectioh of governing authority, designation of management, ability to significantly Influence operations, accountability for fiscal matters, scope of public service and spacial financing relationehipa. eased on the foregoing criteria, the reporting entity has bean defined to include all the fund types and account groups for which the School District is financially accountable or for which there ie a significant relationship. The audit reports of the component unit and joint venture are available for public inspection in the School District's administrative office. Blended Component NB,its Some component unite, despite being legally separate from the primary government, are so interl•wined with the primary government that they are reported as part of the primary government. The component units reported in this way are as follows: Camp Hi11 Borough Authority ~ The Camp Hill Borough Authority (Authority) was created to administer bond issues which provided funds for the construction of the Camp Hill Junior-Senior }{igh School and for subsequent improvements thereto. The Authority became inactive in November, 1997 upon the transfer of its remaining cash balance to the District. eased upon these factors, the Authority is included in tjie School District's reporting entity as part of its Debt Service Fund. ';) The District is also a participant in three other jointly-governed operations, .oath of which is a separate legal entity that offers educational services to the D'iatrict and its residents. Each of these entities serves many school districts and era therefore not included ae part of Camp Hill School District's reporting entity. These other entities are as follows: •j - 8 - n CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd,) JUNE 10, 1999 1, Reporting entity (COnt'd.) &lended Camoonent Units (Cont'd 1 - ' 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 'collage education services and programs. 2. Summary of significant accounting policies The accounting records of Camp Hill School District are maintained on L•he basis of accounting practices prescribed or permitted by the Manual of Accounting and Related Financial Procedures for Pennay.lvania 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 then basis of fund typee 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/retainod earnings, revenues and expenditures/expenses as appropriate. The fund types and the account groups utilized by Camp Hill School District are as follows: J ' Governmental Fund Tomes Governmental Funds are those through which moat 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) era 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 cateyory are: - 9 - c'AMP HILL SCHOOL DISTRICT NOTE3 To FINANCIAL STATEMENTS (Cont'd,) - JITNE 30, 1998 2, Summary of significant accounting policies (Cont'd.) Fund accounting (Cont'd.) Governmental Fupd Tepee (Conk'd ~ General Fund - The General Fund is used to account for. all financial ~ Gransactione not accounted for in another fund, Revenues are 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, adminiet:ration of the School District and certain noninetructional services are accounted for in this fund. Special Revenue Fund - Special Revenue Funds are used to account for the proceeds of specific revenues thaC are restricted to expenditures for specified purposes. Capital Projects Fund - Capital Projects Funds are used to account '~ for financial resources to be used fo.r the acquisitipn or construction of capital facilities. Debt Serviea Fund - Debt Service Funds are used to account for the accumulation of resources for, and the payment oE, general long-term debt, principal, interest and related costs. t7 Proprietary Fund Tvoee Proprietary Funds account for operations that are financed and operated in x manner similaz to private btteiness enterprises: Food Service Fund - The Food. Service Fund ie 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 ae an agent for other funds or' entities. Nonexpendable Trusts are accounted for in essentially the same manner ae Proprietary Funds. Agency Funds are custodial in nature and do not involvrp measurernent of the results of operations: _;r - 10 - ..a C"AMP HILL SCHOOL DISTRICT NOTE9 TO FINANCIAL STATirMENTS (COnt'd.) ~1 JUNE 3U, 1998 2. Summary o! eignilicanC accounting policies (Cont'd,l 'Fund accountiny (Cont'd.) Piduci@py Fund Twes (cgn~Z .Trust Accounts - Accounts for contributions to and interest earnings on scholarship funds donated to t•he'District, and for payments of echo.larship funds to selected students.. Activity Fund - Accounts for programs operated and sponsored by various clubs and organizations within the schools. Activity funds era Agency Funds which are separately accounted for because of legal requirements. {~ cc t Groups Account groups era not funds. They are only concerned with the meaeiarement of financial position and era 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 bonds, capital lessee and compensated absences payable in future years. Saeie of accounting The accounting and financial reporting treatment applied by the different funds ie based on their measurement focus, which determines when revenues and expenditures are recognized, ;,~ ~ Governmental Fund Twee 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 egos enough thereafter to pay current liabilities. Expenditures are generally recognized when the related fund liability is incurred. Exeeptiona to this general rule include principal and interest on general long-term debt which is recognized when due. ;~ Dieburetmente for inventory type items and prepaid expenses are considered expenditures at. the time of purchase. ].1 ~`7 n CAMP HILL SCHOOL DISTRICT NO'CES TO FINANCIAL. STATEMENTS (Cant''d,) ' JUNE 30, 1999 2, Summary of significant accounting policies (Cont'd.) ~'' Baeie of accounting (Cont'd.) Fiduciary Fund Tvpes 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. v~ J J Proprietary Fund Tvpes The Food Service Fund uses the "flow of economic resources" measurement focus, which is a modified accrual method of accounting. Food service equipment 1e capitalized, with depreciation (computed on the straight-line method using estimated useful lives of 5 to 12 years) recorded as an operating expense. ~c,count Groff Land, buildings, furnishings and equipment are recorded at post, or at estimated historical coat f.or. those items for which Che original coat 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 these bonds is recorded 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 For purposes of the Food Service Fund and Nonexpendable Trust Fund statement of cash Ylbws, the District considers all deposits purchased with an original maturity of three months or leas ro be cash or cash equivalents. - 12 - CAMP HILL $CHOOG DISTRICT NUTEB TO FINANCIAL S'('ATRMENTS (Conk'd,.> ~ JUNE J0, 1998 2.` Summary of significant accounting policies (Cont'd,! Budgets The pistrict adopts, prior to the beginning of each fiscal year, an annual budget for the General Fund and Athletic Fund. Apart of this budget process ie the adoption of local tax rates, subject to various legal restrictions. The piatrict approves subsequent budget revisions (primari.ly transfers between expenditure categories) as necessary. Unused appropriations expire at. the end of each year. Because the District did not adopt a budget far all Special Revenue Funds, the actual-to-budget comparison far Special Revenue Funds contaiue information for the Athletic Fund only. Revenue - local sources Real estate, per. capil-a, residence and occupation taxes are levied as of July 1 with a legal, enforceable claim against the taxpayer and/or property. Thaea taxes are recognizable ae current revenue when received by the .District during the fiscal year and also estimated to be rereived by the District within sixty .~ 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 fur uncollectibles is recorded for taxes estimated not to be collectible within one year. after the end of the fiscal year. Other tax revenues, including taxpayer-assessed revenues such as earned income ~ taxes, are reccgnized ae revenue when received during the Eiaca'1 year or soon enough thereafter to be susceptible to accrual. Revenue - State aourcea 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 currant fiscal year. Program revenue received in advance of the expenditure of program funds are deferred until ouch expenditures are incurred. ~r - 13 - u; CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENT'S (Cont'd.l JUNE 30, 1998 ~~ 2. Summary of significant accounting policies (Cont'd.l ~ Pension plan Substantially all full-time and pare-time employees of the Ristr.icp participate in a cost-sharing rnultiple employer defined benefit pension plan. 'The DistricC recognizes expenditures or expenses equal to its contractually-required contributions, subjert to the modified accrual basis of accounting in governmental n Punds. Intsr•fund transacl•lone 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. Tha District does not attempt Co allocate all coats 'which benefit the other funds due to the difficulties associated with thn measurement of such benefits, 3: Cash and investments The District's cash and cash equivalents consist of cash balances dspositod in financial institutions and repurchase agreements purchased by the District from the financial institutions ae part of a cash management account. In addition, the District has pooled liquid investment accounts which are invesL•ed in qualified securities through the Pennsylvania Treasury INVEST Program and the Trust Department of local financial institutions. Tha cash and cash equivalents at June 30, 1998 are categorized as follows, Carrying Bank _Value Balance (~, ~. Change funds $ 455 $ Insured (FAIL) 109,823 104,8?.3 Collateral held in the Diatrir_t'e name _ Collateral not held in the District's name 350,002 428,821 Pooled liquid accounts _ 40.805 4gy~r Total $ 496,.165 $ 75 4 5~?9 Investments at June 30, 1998 era as follows; Pennsylvania Treasurer's INVEST Program for Local Governments $ 21 6 - I9 - a r CAMP HILL SCHUOL DIST'P.ICT NOTES TO FINANCIAL STATEMENTS jCont'd) JUNE 30, 1998 E! ~~ 4J 3, Cash and investments (Cont'd.) The investments, whose market value approximates coat due to the short-term nature of the inveatmente, are categorized as pooled investments. The types of authorized inveatmente are limited by State regulations. Investment policies followed during the year did not significantly alter the categorization of investments shown above. 4. Delinquent taxes receivable Ae explained iri Note 2, taxes ar:e recorded ae revenue only when received, cr, in Che case of delinquent real estate taxes, available within sixty days. .The remaining balance of delinquent taxes receivable era recorded as deferred revenue in accordance with school accounting policies, Deferred tax revenue amounted to $ 190,.384 at June 30, 1998. Delinquent taxes receivable ae reflected on the June 30, 1990 balance street consist of the following: Total Real Es ate 1989 and prior years 1990-91 1991-92 1992-93 1993-9A 1994-95 1995-96 1996-97 1997-90 Less: Allowance for uncollectibles Total 5. Loans receivable - related parties S ea,37u 14,946 25,532 48,295 38,782 62,525 sa,eel 127,495 210,933 671,759 (476,810) $ 64 2,529 2,988 36,708 60.8y} 103,130 ~~ ~ 6~ ) personal $ 88,370 14, 946 - . 25,532 48,295 38,718 59,996 51,893 90,787 SSQ,092 5GB,629 (474, 7,~) $ 194.949 $ 101.068 $ 93.881 Loans receivable Yrom related parties at June 30, 1998 are as follows: Former Superintendent $ i5,Otl0 Camp Hill Band Booetara ~ l2ytlztl Total $ 27,020 As part of an insurance benefit, the DietricC advanced a total of $ 25,000 toward the premiums of, a life insurance policy on the former suparizttendent. This -~ noninterest bearing advance is scheduled to be repaid over the next three years. The advance is collateralized by an assignment of the policy to the District. - 15 - ~~a CAMP NILL SCHQOL DISTRICT NOTE9 T'0 FINANCIAL STATBhiENTS (Cont'd.) ~ ~IIINE 30, 1990 lily 5. LOanB receivable - related parties (Cont'd.) In 1996, the Diarrict purchased a truck for use by the Camp Ri11 Band eogetera at a cost of $ 16,500, and has agreed to advanco up to $ 2,000 in additional -funds foz improvements to the truck. The Band Boosters are to repay at least 15i of the total advance annually until this interest-f.ree loan is repaid, A ,~ payment of $ 2,475 was received during 1997-98. 6. Land, buildinga, furnishings and equipment A summary of the changes in land, buildinga, furnishings and equ ipment fox the yearended June 30, 1998 is as follows: ;.. Beginning End ' of Xear Increases 'Deareasea y r t3eheral fixed assets Land and buildings $ 4,959,772 $ 56,284 $ 191,950 $ 4,834,106 Furniehinge and equipment 2,749.952 1,160,455 ~ 105.707 3,604,704 '. T'otale $ 7,709.724 $ 1 216.739 $ 287,657 $ 8,638,806 Fobd Service Fund fixed assets Furniehinge and equipment $ 26,502 $ - $ - $ 26,502 Accumulated depreciation 24,531) 8501. 125,381) ~ Totals $ 1.971 $ (850) $ -0- $ 1.121 W1 - 16 - wj CAMP HILL SCHOOL pISTYtICT NOTES TO FINANCIAL 9TATEMENT9 (Cont'd,) JUNE 30, 1998 ' 7, Caeneral obligation notes payable A summary of changes in general obligation notes payable for the year ended June 30,.1990 is as follows; Payments Beginning and other End ~ of Year Additions Decreases Year general Ubiigation Bonds Series of 1993, , interest x•ates 3.19r to 5.74 $ z, ego, o0o S - S 2, a2D, o00 $ - ~ Series of 1996, interest rates 4.14 to 5,554 2,375,000 - 2,375,000 General obligation Notes Series A of 1998, ~, interest rate of 4.454 - 2,570,000 - " 2,.370,000 Series AA of 1998, interest rate of 4,64 ~7,45U,000 - X450,000 Total $ .19 00 $ 5.020,000 $ 5.195,000 $ 00 Effective March 23; 1999, the Matrict issued General Obligation Notes, Series A of 1998 and Series AA of 1998 totaling $ 5,020,000: The procesde of the aeries A Note urere used to redeem the Genera]. Obligation Bonds, Sariee A of 1993 and to °' pay Hoke issuance coats, The note is payable in various annual inetall.ments Prom March 1, 1999 to 2006 at an annual interest rate of 4,456. The net proceeds of the Series AA Note were deposited into an escrow account at Dauphin Deposit Bank and Trust Company to be used to pay upon scheduled maturity the Series of 1996 General Obligation Bonds and the semi-annual interest due and .payable thereon. The note is payable in various annual installments from February 15, 1999 to 2010 atan annual interest rate of 4.64, - 17 - ~~ CAMP N[GL SC}lpDL DTSTRICT NO'PE9 TO FIPIANCIAL STATEMENTS ICont'd,) JUt4E 30, 1998 7. peneraL obligation notes payable (COnt'd,l Scheduled debt service requirements are as followsi _._.94riea A ger~as A ~~ Total c 1 .~.U4e_FSaS. principal A ,Lt~;erest 1998 - 1499 $ 463,180 $ 2.50,000 $ 107,376 $ 5,000 $ 1999 - 100 -804 2000 550,710 320,000 103,240 15,000 2000 - 2001 , 112,470 560,780 335,000 09,000 25,000 2001 ~• 2002 111,780 554,722 345,000 74,092 25,000 2002 - 2003 110,630 558,220 365,000 58,740 '1,5,000 2003 to 2008 2 015 921 955 - 109,400 , , ,000 16,541 1,300,000 2008 to. 2010 1,1 8 17p 404,300 , , _` 1,US~,QOp _ 73.37Q $ 6.63'1.903 $ 2y570.00p $ _ 508,989 $ 2,450,000 $ 11, 02.914 e. Capital lease obligations The District has entered into two capita]. lease agreements far the f inancing of rertain pieces of equipment. A summary of these agreements and the mi nimum lease payments thereon ~t June 30, 2.998 is ae follows: ~ Minim}im lease aavmente Lease $1 Lease q2 ' x~ (Photocopier) (Coma t r ~~ Minimum lease payments 1998-99 $ 203 $ 22,952 $ 23,155 Lase: Amounts representing `~ interest 1 ~ 24 2,244 Present value of minimum lease payments $ 202 $ 20 709 $ ,~..~,~.. 20, 911 9. Operating lcasee *~ The District has entered into several operating lease agreomente in which it. has agreed to lease certain small pierea of equipment far various lengths of time. The agreements contain various terminaCion and ~'laase-up" trade-in provisions which could allow the District to effectively change the terms of the agreements. Total operating lease payments included in General. Fund expenditures for the year ended June 30, 1998 amounted to $ 23,667. Minimum lease commitments for Future years, aesurniny no voluntary terminations, are as follows at June 30, 1998: 1998-9$ $ 20,756 1999-2000 22,211 2000-2001 15,401 2001-2002 7 344 J Total $ 65,712 - ~. e - CAMP HILL SCHOOL Dl'STRICT NOTE9 TO FINANCIAL 3TATRMENTS (Cont'd,) ~ JUNR 30, 1998 ~ 10. Compensated absences At June '30, 1948, Che General Long-Term Debt• Group of Accounts includes a liability for compensated absences of $ 2'/1,786. Payments for compensated absences are made through General Fund expenditures in r.he year the absence is used or the employee retires. When an employee retiree, the Distri ct's payout policy with regard to each typo of unused compensated absence is as follows; &mergency and personal - no payout required. Vacation (administrative personnol.only) - unused vacation days (not to exceed 5 days) are paid at. the time oP eaparation. Sickness - a retiring employee receives payment for unused accumulated sick days determined ae a percent of substitute teachers' por 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 magimum of 270 days and 55'k of the per diem amount, Retirement with 15 or. more yeaz's of service - retiring professional employees with at least 3o 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, 1997 Net Chance June 30, 1998 ~ .. Vacation $ 7,944 $ (1,052) $ 6,892 Retirement bonuses 24,000 18,000 42,000 Sick leave 230,331 (7.47) _ 222.894 ' ' $ _26.2,.275 $ 9, 511 $ 271, 786 ' _ 19 _ ~a CAMP HIGG SCHOOL DISTRICT NOTES TO FINANCTAG 9TATEMENT9 ICpnt°d,) JUNE 30, 1990 11. Pension plan The District contributes to a governmental cost-sharing multiple-employer defined benefit pension plan administered by the Pennsylvania School Emplpyees Retiremenk System (PSERSI. Benefit provisions of the plan are established under the provisions of the PSER"a Code Ithe Codel and may be amended by an act of khe Pennsylvania State Loyielature. The plan provides retirement, disability and death benefits, legis'iatively mandated ad hoc coat-of-living adjustments, and healthcare insurance premium assistance to qualifying plan members and benaficiariea. It also provides for refunds of a membe:r's accumulated contribution upon terndnation of a member's employment in the public school sector. PEERS issues a publicly available financial report that includes financial statements for the plan. That report may be obtained by writing to PEERS, P.O. Box 125, Harriebury, PA 17108.0125. The contribution policy ie eat by the Code and requires contribuCione by active empioyeoe and by participating employers, Plan members err, required to contribute 5.25 percent of their compensation if they joined the plan before July 22, 1983, and 6.25 percent if they joined on or after that data. The contributions required of participating employers is based on an actuarial valuation and is expressed ae a. percentage of annual covered payroll during the period far which the amount ie determined. Districts pay the entire employer contribution rate and arc reimbursed by the Commonwealth in an amount equal to the Commonwealth's ehar'e as determined by the income aid ratio (as defined in Act 29 of 1994), which is at least one-half of the total employer rats. The District's contributions to PEERS for the years ending June 30, 1998, 1997and '1996 ,were $ 962,370, $ 531,216 and $ 568,1.96, respectively, Those amounts are equal tp the required contribution foY each year. 12, Poetemployment benefits other than pensions The Uiatrict'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 ox more years of service with .the District, The benefit ie paid by the District toward the retirees' health insurance premium ranglny from S 750 to $ 1,000 per - year per retiree for a period of 2 to 7 years. Bath the contribution amount and the number of years of payment depends on the retirees' years of service, The benefit is paid only unt11 the year in which the retiree is eligible far full social security benefits. The District finances this benefit on apay-as-you-go basis. For the year ended June 30, 1998, there were Can retirees receiving this benefit at a total cost to the Distrir.t of $ 9,340, w> 20 - CAM P.HILh SCHOOL DISTRICT NOTES TO FINANL•IAG UTATEMENTS (Cont'd,) ~ JUNE 3U, 199N 13. Inter-fund transfers deneral Fund expenditures include inter,-Fund transfers of $ 569,566 summarized as follows Athletic Fund Band Uniform Fund Capital projects Fund Food Service (non-cash transfers) Total 14, Riek management $ 75,000 .3,000 446,033 44,733 $ ~ 6s yr,~§g The District ie exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to omployees; and natural disasters. Tha District maintains commercial insurance coverage oovering each of those risks of loss. Management believes such noverage 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 unemployme^.t compensation laws, the Uietrict 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 1e 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 carryiny excess liability coverage, 15. Commitments and conti.ngeneies The collective bargaining agreement between the Uietrict and the teaching staff ie effective for the period July 1, 1996 Chrough .Tune 30, 2000, ~1 ~j In the normal course of business, the Aistrict is subject to legal disputes and claims. The District does not anticipate any material losses from any pending or threatened litigation, - 21 M G~ J ~:? CAMP NILL 9CNOOL pISTI2ICT NOTE9 TO FINANCIAL STATEMENTS (COnt'd,) JUNE 30, 1998 15. Commitments and contingencieu (Cont'd.) Tha District is contingently liable for the repayment of the General Obligation, Bonds, Seriae of 1996 which were refunded by ttte deposit cf funds into an irrevocable escrow account in amounts sufficient to retire the bonds and interest when due. Because of the refunding, these bands are no longer included ae general obligation debt on the Diat.rlct's balanr.e sheet. At June 30, 1998, the amount of the 9eriesof 1996 bonds outstanding totaled $ 2,3fi0,000. In the normal course of preparing for the subsequent school year, the pietri~t has awarded bide for various supplies, fuel contracts, eta. Contract commitments at June 30, 1948 to complete renovation projects in process approximated $ 65,000. The DiatricC participatee in numerous state and federal grant programs which are governed by various rules and regulations of the grantor agencies. Coate 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, 16. Subsequent event On July 31, 1998, the Dietrirt settled on the sale of the Lincoln Elementary School Building fur a consideration of $ 900,000. Such amounk has been used to establish a capital reserve fund. .r_ ~_. ,.,- - .., ,.. _ r~~r ~,~~ - _. 'i A ,. • • ~_ «s >- c- ~~ ,~ ~. 1 ..:I ~ ' ' r Ll.i --~ r 1 '.r r ' ~r-1 -'~j lL l.~ G~ l) s M ~ 7,~ Bpd G~eer,c~wa9.k e C.lo', ~PrC.' , Gu +~ 139 ~'1 R~ ~533~ ~; • •