HomeMy WebLinkAbout10-7751
~ ti
~~~~ ~ L DISTRICT
MECHAN1CSgURG AREA SCHOO
FINANCIAL STATEMENTS
yEpR ENDED JUNE 30, 2010
~D
~~~ 0O$
~~~ a~~ s
~ ~~as~,ss
TABLE OF CONTENTS
Page
Number
INDEPENDENT AUDITORS' REPORT IAR - 1 to IAR - 2
MANAGEMENT'S ,DISCUSSION AND ANALYSIS MDA - 1 to MDA - 11
BASIC FINANCIAL STATEMENTS
District-wide financial statements
Statement of net assets FS - 1
Statement of activities FS - 2
Fund financial statements
Balance sheet -governmental funds FS - 3
Reconciliation of the governmental funds balance sheet
to the statement of net assets FS - 4
Statement of revenues, expenditures, and changes
in fund balances -governmental funds FS - 5
Reconciliation of the governmental funds statement of revenues,
expenditures, and changes in fund balance to the statement of activities FS - 6
Statement of net assets -proprietary funds FS - 7
Statement of revenues, expenses, and changes in net assets -proprietary funds FS - 8
Statement of cash flows -proprietary funds FS - 9
Statement of net assets -fiduciary funds FS - 10
Statement of changes in net assets -fiduciary funds FS - 11
NOTES TO FINANCIAL STATEMENTS FS - 12 to FS - 33
OTHER REQUIRED INFORMATION
Budgetary comparison information -general fund ORI - 1
Other post employment benefit plans ORI - 2
SUPPLEMENTARY INFORMATION SI - 1 to SI - 2
~' Greenawalt & Company, P.C.
James E. Lyons
CERTIFIED PUBLIC ACCOUNTANTS Howard R. Greenawalt
Since 1955 Deborah J. Kelly
~ Scott J. Christ
Creedon R. Hoffman
INDEPENDENT AUDITORS' REPORT
Board of School Directors
Mechanicsburg Area School District
Mechanicsburg, Pennsylvania
We have audited the accompanying financial statements of the governmental activities, the business-type activities,
the aggregate discretely presented component unit, each major fund, and the fiduciary funds of Mechanicsburg Area
School District as of and for the year ended June 30, 2010, which collectively comprise the District's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of the District's
management. Our responsibility is to express opinions on these 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 financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, the aggregate discretely presented
component unit, each major fund, and the fiduciary funds of Mechanicsburg Area School District, as of June 30, 2010,
and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated November 22, 2010 on our
consideration of Mechanicsburg Area School District's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The
purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards
and should be considered in assessing the results of our audit.
IAR - 1
400 West Main Street • Mechanicsburg, PA 17055.717.766.4763 • Fax 717.766.2731
62 West Pomfret Street • Cazlisle, PA 17013. 717.243.4822 • Fax 717.255.9372
www.greenawalt.cc
Board of School Directors
Mechanicsburg Area School District
Mechanicsburg, Pennsylvania
Accounting principles generally accepted in the United States of America require that the management's discussion
and analysis on pages MDA - 1 through MDA - 11 and other required information on .pages ORI - 1 and ORI - 2 be
presented to supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The
combining schedules on pages SI - 1 through SI - 2 are for purposes of additional analysis and are not a required part
of the financial statements of Mechanicsburg Area School District. Such information has been subjected to the
auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly presented in all
material respects in relation to the financial statements taken as a whole.
~ ~~
GREENAWALT 8~ C PA , P.C.
November 22, 2010
Mechanicsburg, Pennsylvania
IAR - 2
' MECHANICSBURG AREA SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
• Ji1NE 30, 2010
The management of the Mechanicsburg Area School District is pleased to present the following discussion
and analysis of the District's financial position at June 30, 2010, 2009, and 2008. It provides an overview of
our financial performance between fiscal years ended June 30, 2010 and 2009, in accordance with
governmental reporting requirements. The purpose of this discussion is to provide a narrative summary of
the financial position and activities of the District in order to enhance the reader's understanding of the
District's basic financial statements.
The District is required to present comparative financial information between the current year and the prior
year in its Management's Discussion and Analysis (MD&A) as mandated by the Governmental Accounting
Standards Board (GASB) Statement No. 34 Basic Financial Statements -and Management's Discussion and
Analysis -for State and Local Governments. This report contains such comparative financial information.
The District has elected not to include the financial information of its discretely presented component unit,
The Wildcat Foundation, in its Management Discussion and Analysis. The separate audited financial
statements for the Foundation are available by contacting the District office.
FINANCIAL HIGHLIGHTS
The School Board adopted the 2009-2010 general fund budget with a planned deficit of $1,202,639. One
million dollars consisted of a transfer from fund balance to the Capital Reserve Fund for the Middle School
construction project and the remaining was for one-time expenses for cumculum materials and equipment.
The actual 2009-2010 fiscal year results increased fund balance by $2,398,338. Expenditures were under
budget by $3,768,674 and revenue was under budget by $227,197 or .4%. This year the school district
received $991,330 from the PA Property Tax Relief Fund. This amount was used to provide property tax
reductions to each qualified homeowner in the amount of $140.70. The ending fund balance at June 30,
2010 is $12,388,207 which is comprised of $6,375,378 reserved or designated for future medical insurance
claims and future pension costs and $6,012,829 which is undesignated. The undesignated fund balance
represents 13.7% of expenditures and transfers to other funds.
OVERVIEW OF THE FINANCIAL STATEMENTS
These financial statements consist of three sections -Management's Discussion and Analysis (this section),
the basic financial statements, and other required supplementary information.
The first two statements of the basic financial statements are government-wide financial statements. These
statements on pages FS-1 and FS-2 consist of the Statement of Net Assets and the Statement of Activities.
The government-wide financial statements provide both short-term and long-term information about the
District's overall financial status.
MDA - 1
MECHANICSBURG AREA SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS (Cont'd.)
JUNE 30, 2010
The remaining basic financial statements consist of fund financial statements. These statements focus on
individual funds of the District and provide a more detailed presentation of the District's operations. The
governmental funds statements on pages FS-3 and FS-5 present how general District services are financed
in the short-term as well as what remains for future spending. The proprietary fund statements on pages
FS-7 through FS-9 present both short-term and long-term information about the activities that the District
operates similar to a business (the Food Service Fund).
The basic financial statements also include notes on pages FS-12 through FS-33 that provide a more detailed
explanation of some of the information in the financial statements. Following the basic financial statements
is other required information on pages ORI-1 and ORI-2 that consists of the District's budgetary comparison
and other post employment benefit plans. Other supplementary information on pages SI-1 through SI-2
present combining schedules for additional analysis.
Government-wide Statements Report the District as a Whole
The government-wide statements report financial information about the District as a whole using accounting
methods similar to the accounting used by private-sector companies. The Statement of Net Assets includes
all of the District's assets and liabilities utilizing the full accrual basis of accounting. The Statement of
Activities accounts for all of the District's revenues and expenses, regardless of when cash is received or
paid.
These two government-wide statements report the District's net assets and changes in them. The District's
net assets represent the difference between the District's assets and liabilities. The District's net assets are
one way to measure the District's financial position, or financial health, over time. Increases or decreases in
the District's net assets are one indicator of whether its financial health is improving or deteriorating,
respectively. To assess the overall health of the District, non-financial factors must also be considered, such
as changes in the District's property tax base and the performance of the students.
The government-wide financial statements of the District are divided into two categories:
• Governmental activities -All of the District's basic services are included here, such as
instruction, administration and community services. Real estate and earned income taxes, and
state and federal subsidies and grants finance most of these activities.
• Business-type activities -The District operates a food service operation and charges fees to
staff, students and visitors to help it cover the costs of the food service operation.
MDA-2
MECHANICSBURG AREA SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS (Cont'd.)
JUNE 30, 2010
Fund Financial Statements
The District's fund financial statements provide detailed information about the most significant funds, or
major funds -not the District as a whole. Some funds are required to be reported as major funds.
• Governmental funds -Most of the District's activities are reported in governmental funds,
and focus on changes in financial resources, rather than upon net income determination.
These funds are reported using the modified accrual basis of accounting, which measures
cash and all financial assets that can readily be converted to cash. The governmental fund
statements provide a detailed short-term view of the District's operations and the services it
provides. Governmental fund information helps the reader determine whether there are more
or fewer financial resources that can be spent in the near future to finance the District's
programs. The relationship (or differences) between governmental activities (reported in the
Statements of Net Assets and the Statement of Activities) and governmental funds is
reconciled in the financial statements on pages FS-4 and FS-6.
• Proprietary funds -These funds are used to account for the District activities that are similar
to business operations in the private sector. When the District charges customers for services
it provides, these services are generally reported in proprietary funds. The Food Service Fund
is the District's proprietary fund and is the same as the business-type activities reported in the
government-wide statements.
• Fiduciary funds -The District is the trustee or agent for individuals, private organizations
and/or governmental units as shown on pages FS-10 and FS-11.
FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE
Net Assets
The District's total net assets were $27,657,641 at June 30, 2010 which includes $26,734,689 in
Governmental Activities and $922,952 in Business-type Activities. This shows an increase of $3,447,658
from total net assets at June 30, 2009, which included an increase of $3,443,283 in Governmental Activities
and an increase of $4,375 in Business-type Activities.
MDA - 3
" MECHANICSBURG AREA SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS (Cont'd.)
JUNE 30, 2010
Statement of Net Assets 2009-2010
Current and other assets
Capital assets
Total assets
Current and other liabilities
Long-term liabilities
Total liabilities
Capital assets (net of related debt)
Restricted for capital projects
Unrestricted
Total net assets
Total liabilities and net assets
Governmental
Activities
$ 25,075,945
67,896,753
$ 92,972,698
$ 4,730,296
61,507,713
66,238,009
7,431,496
4,552,260
14,750,933
26,734,689
$ 92,972,698
Business-type
Activities
$ 572,996
416,183
$ 989,179
$ 42,311
23,916
66,227
416,183
506,769
922,952
$ 989,179
Total
School District
$ 25,648,941
68,312,936
$ 93,961,877
$ 4,772,607
61,531,629
66,304,236
Statement of Net Assets 2008-2009
Current and other assets
Capital assets
Total assets
Current and other liabilities
Long-term liabilities
Total liabilities
Capital assets (net of related debt)
Restricted for capital projects
Unrestricted
Total net assets
Total liabilities and net assets
$ 17,583,362
68,709,216
$ 86,292,578
$ 4,044,172
58;957,000
63,001,172
10,483,926
12,807,480
23,291,406
$ 86,292,578
$ 492,359
477,970
$ 970,329
$ 51,752
51,752
7,847,679
4,552,260
15,257,702
27,657,641
$ 93,961,877
$ 18,075,721
69,187,186
$ 87,262,907
$ 4,095,924
58,957,000
63,052,924
MDA-4
477,970
440,607
918,577
$ 970,329
10,961,896
13,248,087
24,209,983
$ 87,262,907
MECHANICSBURG AREA SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS (Cont'd.)
JUNE 3 0, 2010
Statement of Net Assets 2007-2008
Current and other assets
Capital assets
Total assets
Current and other liabilities
Long-term liabilities
Total liabilities
Capital assets (net of related debt)
Restricted for capital projects
Unrestricted
Total net assets
Governmental
Activities
$ 18,521,940
68,839,547
$ 87,361,487
$ 5,072,083
61,811,871
66,883,954
Business-type
Activities
$ 405,801
538,878
$ 944,679
$ 27,482
13,356
40,838
Total
School District
$ 18,927,741
69,378,425
$ 88,306,166
$ 5,099,565
61,825,227
66,924,792
7,274,553
145,657
13,057,323
20,477,533
Total liabilities and net assets $ 87,361,487
Statement of Activities
538,878
364,963
903,841
$ 944,679
7,813,431
145,657
13,422,286
21,381,374
$ 88,306,166
Tie results of this year's operations as a whole are reported in the Statement of Activities. Direct expenses
are listed by programs, and then offset by program revenues to determine net (expense) revenue and
changes in net assets. General revenues, such as taxes, state general subsidies, and investment earnings are
then applied prior to transfers, and special items, to determine the change in net assets. For the 2009-2010
fiscal year, the change in net assets for governmental activities was an increase of $3,443,283 and an
increase of $4,375 for business-type activities, for a net total increase of $3,447,658 as reflected in the
following chart. For the 2008-2009 fiscal year, the change in net assets for governmental activities was an
increase of $2,813,873 and an increase of $14,736 for business-type activities for a net total increase of
$2,828,609 as reflected in the chart below:
MDA - 5
MECHANICSBURG AREA SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS (Cont'd.)
- - JUNE 30, 2010
Statement of Activities 2009-2010
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues
Taxes
Other local revenue
State general subsidies
Investment earnings
Total revenues
Direct expenses
Excess (deficiency) before transfers
Transfers between activities
Change in net assets
Statement of Activities 2008-2009
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues
Taxes
Other local revenue
State general subsidies
Investment earnings
Total revenues
Direct expenses
Excess (deficiency) before transfers
Transfers between activities
Change in net assets
Governmental
Activities
Business-type
Activities
Total
School District
$ 966,761 $ 1,049,726 $ 2,016,487
6,316,476 716,162 7,032,638
699,166 - 699,166
36,617,588 - 36,617,588
- (3,033) (3,033)
6,088,945 - 6,088,945
102,106 1,757 103,863
50,791,042 1,764,612 52,555,654
47,228,555 1,879,441 49,107,996
3,562,487 (114,829) 3,447,658
(119,204) 119,204 -
$ 3,443,283 $ 4,375 $ 3,447,658
$ 1,019,813 $ 1,109,438 $ 2,129,251
5,219,506 664,238 5,883,744
787,845 - 787,845
35,101,544 -
- 1,990
6,340,245 -
433,963 6,106
48,902,916 1,781,772
35,101,544
1,990
6,340,245
440,069
50,684,688
46,624,673 1,941,116 48,565,789
2,278,243 (159,344) 2,118,899
535,630 174,080 709,710
$ 2,813,873 $ 14,736 $ 2,828,609
MDA-6
MECHANICSBURG AREA SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS (Cont'd.)
JUNE 30, 2010
Local Sources
Direct expenses represent the actual cost of providing the services while the net cost represents the amount
of cost that is not recovered through program revenues, meaning user charges, grants and contributions. The
net cost of services must be recovered through general revenue, primarily taxes and state subsidies.
Amounts not recovered will reduce funds available for future years.
Local Sources 2009-2010
Governmental Activities
Instruction
Instructional student support
Administrative and fmancial support
Operation and maintenance of plant
Pupil transportation
Student activities
Community services
Interest on long-term debt
Total governmental activities
Direct Program Net
Expenses Revenues Cost
$ 29,832,197
4,717,304
3,715,827
3,960,392
1,466,144
1,033,223
515,177
1,988,291
$ 47,228,555
$ 5,491,050
402,074
255,710
150,082
525,898
135,487
322,936
699,166
$ 7,982,403
$ 24,341,147
4,315,230
3,460,117
3,810,310
940,246
897,736
192,241
1,289,125
39,246,152
Transfers out and special items
State general subsidies revenues
Total needs from taxes and other local sources
Business-type Activities
Food services
Direct
Expenses
$ 1,879,441 $ 1,765,888
Program
Revenues
(119,204)
(6,088,945)
$ 33,038,003
Net
Cost
Transfers received, special items and investment earnings
Total needs from taxes and other local sources
$ 113,553
(117,928)
$ (4,375)
MDA - 7
MECHANICSBURG AREA SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS (Cont'd.)
JUNE 30, 2010
Local Sources 2008-2009
Governmental Activities
Instruction
Instructional student support
Administrative and financial support
Operation and maintenance of plant
Pupil transportation
Student activities
Community services
Interest on long-term debt
Total governmental activities
Direct
Expenses
$ 28,633,357
4,505,979
3,775,064
4,262,43 8
1,445,798
1,061,502
605,603
2,334,932
$ 46,624,673
Program Net
Revenues Cost
$ 4,582,189
300,711
204,232
101,472
509,517
136,810
404,388
787,845
$ 7,027,164
$ 24,051,168
4,205,268
3,570,832
4,160,966
936,281
924,692
201,215
1,547,087
39,597,509
Transfers out and special items
State general subsidies revenues
Total needs from taxes and other local sources
Business-type Activities
Food services
Direct
Expenses
$ 1,941,116 $ 1,773,676
Program
Revenues
Transfers received, special items and investment earnings
Total needs from taxes and other local sources
The District Funds
Net
Cost
$ 167,440
(182,176)
$ (14,736)
At June 30, 2010, the District governmental funds reported a combined fund balance of $20,508,995, which
is a increase of $6,699,934 from June 30, 2009. The information below compares the governmental funds
fund balances for June 30, 2010, 2009 and 2008.
(535,630)
(6,340,245)
$ 32,721,634
MDA - 8
MECHANICSBURG AREA SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS (Cont'd.)
JUNE 30, 2010
2008-2009 2009-2010
General Fund -unrestricted
General Fund - designated/reserved
Capital Reserve Fund -unrestricted
Athletic Fund -unrestricted
Construction Fund -restricted
Debt Service Fund -designated
Total governmental funds
Total unrestricted
Total restricted/designated
Total governmental funds
2008 2009 2010 ChanEe %Chanee Change %Chanee
$ 6,413,871 $ 4,484,491 $ 6,012,829 $ (1,929,380) -30.1% $ 1,528,338 34:1%
1,785,378 5,505,378 6,375,378 3,720,000 208.4% 870,000 15.8%
5,038,654 2,965,847 2,592,074 (2,072,807) -41.1% (373,773) -12.6%
4,289 (3,393) - (7,682) -179.1% 3,393 100.0%
145,657 - 4,552,260 (145,657) -100.0% 4,552,260 100.0%
765,100 856,738 976,454 9],638 12.0% 119,716 14.0%
$ 14,152,949 $ 13,809,061 $ 20,508,995 $ (343,888) -2.4% $ 6,699,934 48.5%
$ 11,456,814 $ 7,446,945 $ 8,604,903 $ (4,009,869) -35.0% $ 1,157,958 15.5%
2,696,135 6,362,116 11,904,092 3,665,981 136.0% 5,541,976 87.1%
$ 14,152,949 $ 13,809,061 $ 20,508,995 $ (343,888) -2.4% $ 6,699,934 48.5%
Governmental Funds -Reconciliation
The General Fund Balance increase of $2,398,338 was due to favorable variances on expenditures.
Revenue was essentially at budget for 2009-10.
The Capital Reserve Fund decrease of $373,773 was due to payments for capital projects.
The Construction Fund increase of $4,552,260 was due to a new bond issue to fund a 16-classroom addition
to the Middle School.
The Debt Service Fund increase of $119,716 was due to favorable interest rates on a variable rate bond
issue.
General Fund Budget
A General Fund budget is adopted each year in accordance with the Pennsylvania School Code. The revised
budget reflects budget transfers as approved by the Board.
The District applies for State and Federal grants each year. Certain grants may not be anticipated during the
budgeting process and must be added to the budget during the fiscal year. In addition, the grants that are
anticipated during the budgeting process are based on estimates. The budget must then be modified based on
the actual grant award.
MDA - 9
MECHANICSBURG AREA SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS (Cont'd.)
JUNE 30, 2010
June 30, 2010
Total revenues
Total expenditures
Excess revenues (expenditures)
Other financing sources (uses)
Net change in fund balance
Budget
Actual
Variance
$ (227,197)
3,768,674
3,541,477
59,500
$ 3,600,977
June 30, 2009
Total revenues
Total expenditures
Excess revenues (expenditures)
Other financing sources (uses)
Net change in fund balance
CAPITAL ASSETS
$ 50,856,1 S 1 $ 50,628,954
45,388,458 41,619,784
5,467,693 9,009,170
(6,670,332) (6,610,832)
$ (1,202,639) $ 2,398,338
$ 48,583,259 $ 48,766,324 $ 183,065
43,074,897 40,874,061 2,200,836
5,508,362 7,892,263 2,383,901
(6,146,643) (6,101,643) 45,000
$ (638,281) $ 1,790,620 $ 2,428,901
At June 30, 2009, the District had $66,645,647 in Governmental activities capital assets, which represents a
net decrease after depreciation of $1,091,511.
Capital assets (net of depreciation) 2008-2009 2009-2010
2008 2009 2010 Chance Chance
Governmental activities
Land $ 605,983 $ 605,983 $ 605,983 $ - $ -
Construction in progress 957,103 22,675 340,819 (934,428) 318,144
Land improvements 1,923,848 3,017,445 2,892,727 1,093,597 (124,718)
Buildings and improvements 62,469,056 62,396,446 61,164,121 (72,610) (1,232,325)
Furniture and equipment 1,553,014 1,575,463 1,493,768 22,449 (81,695)
Library books 102,876 119,146 148,229 16,270 29,083
Total governmental capital assets $67,611,880 $67,737,158 $66,645,647 $ 125,278 $ (1,091,511)
Business-type activities
Furniture and equipment $ 538,878 $ 477,970 $ 416,183 $ (60,908) $ (61,787)
MDA - 10
MECHANICSBURG AREA SCHOOL DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS (Cont'd.)
JUNE 30, 2010
LONG-TERM LIABILITIES
Bonds payable at June 30, 2008, 2009 and 2010 were $61,305,000, $58,260,000 and $60,450,000
respectively. Scheduled payments of principal made during the year to the bondholders were $3,110,000.
The amount of bond principal due within one year is $3,015,000. The Series of 2002A, 2003 and 2005 bond
issues were refinanced in March 2010 resulting in a net savings of $1,040,000.
Compensated absences increased during the year from anentity-wide perspective from $579,445 to
$748,135 at June 30, 2010. Compensated absences decreased from June 30, 2008 to June 30, 2009 from an
entity-wide perspective from $586,211 to $579,445.
Recording for other post employment benefits began in 2008-2009. The liability at June 30, 2010 from an
entity-wide perspective was $294,321, a net increase of $142,056 from the balance at June 30, 2009 of
$152,265.
NEXT YEAR'S BUDGET AND ECONOMIC FACTORS
Budget Budget
2010-2011 2009-2010 Chance
Total revenue
Total expenditures
Excess revenues (expenditures)
before transfers
Transfers
Net change in fund balance
$ 51,477,772 $ 50,351,611 $ 1,126,161
51,626,555 50,305,180 (1,321,375)
(148,783) 46,431 (195,214)
(249,070) (1,249,070) 1,000,000
$ (397,853) $ (1,202,639) $ 804,786
The new budget for 2010-2011 represents an increase in total expenditures of 1.5%. This increase is due to
contracted salary increases, contracted education services. The 2010-2011 budget increased the real estate
tax rate to 14.7 mills or 2.9%. The District plans to reduce its fund balance by $397,853 to offset the
planned budget deficit for one time expenditures identified in the budget.
CONTACTING THE DISTRICT FINANCIAL MANAGEMENT
The District's financial report is intended to provide the readers with a general overview of the District's
finances and to show the Boazd's accountability for the funds it receives. If you have questions about this
report or wish to request additional financial information, please contact the district office of Mechanicsburg
Area School District, 100 East Elmwood Avenue, Mechanicsburg, PA 17055, (717) 691-4500.
MDA - 11
~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~c0~ ao co
+-' 00 ~~- N I~ ~ O ti ONN O ~
p~= ~
to ~~ N
~
~ O
O N cr Cfl
OON O
~ 1~
~
~ M M N O) N N to 1~ O)
O
U
~ ~ ~ ~
~d' 0 0) ' f~ O I~ ~ M ' CO N 00 ti ~ ~' O) tr e- O N h CO O O ' ' N I~
~ O aD ~ O CO 0 0) O O N 1~ r- CO M O O O I~ tO M t~ CO O ~ f~
d'ON MOtAf~O X000 CO ~Ml~ON OMN N CON I~ CO O
~ 4)GD00 OOOCO~ COQ
' .-- ~I~~-tnM ~~4) ~ h N I~ I~ ~
.-OOet I~ V
ttr-M O~t~- O O)~~~M NO).- O
~
~
p O '~ N ~i h CO N O) ~ O to 'C' ~ tt) CO ~ O M 0
0
N CO ~
F' CO N ~-- ~ ~-- f0 M N M CO c0 I~ ~ ~ ti M
t- CO O) to O ~ N O
d9 fH lfl ({~
w
C
O
y O~ ~~ ~ ' N ~ ~ ~ ~ ' M O) O' ~ ~ ~ i CO ' ~ M' ~ ' Q) N O)
O_ `7 N I~ O O n O N ~ CO to ~
~ >~ W 00 1~ r I~ r r
i N O
r I~ D) r
O N w
> O 'tt t0 CO
~ ~
~ O O
~ O N M
~ M N t0
CO CO CO
O N
N O
OD
~ Cam. tt ~ ~ O O
.N a
~ _
~
.` m ~ ~ ~ ~
a
~ COOOtnf~O~ ' M ' tON1n 00 'V"d'OGO~ O(Oh O COO ' ' M O CO
O)OCONttOO) O OOH O> ~CpMODO) O~tn O O)CO M 00 O)
~ ~ tAONI~MOM l!7 ~OOOD CO OMh00N O'd'N O ~N O) CO CO
~" ~fOCD~000 r- ~fOaO
M t(~'
~OO
Ot~
O) N
h ~I~.--NM O~~
' ap .--N O ~ N
(n
` ,> sr
~
~e1
O ~ N ~ ~ 1~ CO N O CO
Q~ 00tit1
)OM NCOr
O ~' ~ ~ O ~ O M
N M~ to
~t ~A f~ M
1~ h
O
W _ ; V
Q ~ N ~ ~ ~ ~ ~ N M~ ~ ~~ ~ CO
N N
O
(n O
Q O ~ EA E!i b9 EA
H ~
O
W
N
Z
~ o
O `"'
~w
zz
w~
~~
w
Q
~
~ c
o
.
~
.
~
a~
a
a~
c -~
o ~
U C6 ~
,~ ~ O
U
N
C
O)
U ~ C ~
y ~ o ,~ -~
N
~
'O N ~ f6
C
~ N N N ~'' N
~ N O N N
~ > N V N
. 'd N (0 O N
~ V ~ l6
'~
N
t) O ~ ` .y.
y
~
O ~
f6
N ~ C N
O
~ N v-O ~ ~
=
.
~. N O O
>' v U
N N
m N E ~~ ~ rnn ~.3 ~
y y.o c
f6 X ~ U y t3 .C "O
> Q C O i C 'C N Q.D ~ C
~ N -p ~ N .O O +N„ m C N O C C f9 ~
.0.. U w f6
N C ul O) N y O y C O N O N
O N C O O
~ _
w a'~ .~. N N
U~ N~ t> O C~
~
N y
C N
N .
_ N .C
~ C O C~- O `~ ~_
E d U ~ N f6
f6 m C
C N
.~ .N.
d
?
V
N
U
N
O
O
O H N
N >, O U N~~ O N
f6 ~ 7> N .~ C O N K f6 ` N~
C)
O ~ >+-
N
(G
.
N
.
.~
C
f
d f
d
O
~ C O- N X N N a N N ~// N a C N~ C .L.. ~~ - O
,F
.C ~ 'O C~ C
~ es O
a~~.oEw:°
~'~E'~o
~
' F
- o°O~?o>~~c~ -
~~:c°-~yF H
.
a
a~ m m ~ y.c ~ w-a m n
~ ~~ =o
`
'=~w~
i
~ y
~ >.>.~.- ~ c
oo~
~a'
aao ~ ~ y E
>
~c
a
o_
c
c Q
Q~ ~_
c~~a~
a
Q -~ Z
w
U
H
N o
D 0
J N
~ W m
Of'W
_ >_ Z
F- .~
W
W Q D
O
Q Z W
W ~
~ W W
U~~
Q O
2
U
W
C
N
C w.
O
U ~s
rn
N
W
Q
N
Z
c
a
a> ...
c
c m
(6
s c
U ~
a >
c O
lC Ur
(U
7
C ~p
tU
~ a~,
I~ O n O (O ' CO r~ N
N o
~
N
N r M
f~ r
x0000 I~NO (O
~ O
M
~ N N
p vO
M~ 0~ O
H ~ ~ ~ ~ r ~
N `-' M
°'
a
~~
~ ::.
to •>
lU
C U
7
m d4
~onocD cD~uic~
d• M r r d• M~ N 0
r N r M N I~ N r
r 0 O O O I~ N O (O
M M ~ O~ aOvO ~ N N
'7 ~ M M v r O)
c N N
~.
W c '~
N U
Z (~ Q
_ c o
N N j
•a ~ .o
m c •~
U m c
~ o
U
a~
C
CU
d
~ ~
~I~
~I~
w ~ oconao M V' c0
(7 ~ CA N 0 r 0 r O CO
~ ~ O ~ M N ~
O~ O~ N r 0 M
C C
• ~ CD
~ O
U
~
~
d
O m ~
~ ~ ~ M ~ ~ ~
'
O to N
CO
N U 0 O O CO t~
(U . (O ~ N 0
Z ~ ~c
rn
rn
i ~
s
n
U
~
N ' N~
~
N ~ O
~~ O
_ M oD M N r N 0
U C M~ 0 0
~ CO CD M
O N
_ N O~~ CA ~ O 0 CA N
~ X O~ M M r r r I~
W N ~Y
ER
M ~
~ O
r N
M
~I ~
M M
~ N
0
(O
N
CA
co
0
(A
r~
~ M
f~ O
N ~
O O
~ N
CO
V ~
CO ~
E+H
h ' ' ~ I~ ~ ' ~ ~ ~ O O OD
M O O O ~ CO (A
r ~ lf) to tC) ~ r
O ~ ~ ~ V' ~ ~
`~ f~ I~
h O M M M to M M (D M
O O N CO M st CO f0 ~ O R
~ fD M O O D M M CO O (O
~ N~ O~ dD O O ~ O 0
(D O CD r O 0 ao ~ N CD
N 0 0 NV ~ M N N
' ' 1 f~ O ' IN NI CAI M 0I O
r M ~r O I ~ I 'V' CO I N
OI ~
fA
I~ 0 M CO ' 0 O) '~ 0 M 0 CA
O~ CO N O V' M O M 0 O O
~COMr O)c0 N ~ N er f~MD•
~ O C~O ~ O o00 O COO ~ N 1~
f~ CD t0 CV v N M ('7 f0
N ~ c1' N N
u> aNi
.~
rn ~
M N
r ~
V
r to
y
C)
•c
N
7 N
~ ~
m
~ ~
~O w
C
(U ~
fCi
c
~ c ~
rn ~ > >
fA X d N ~ N
rn m w ~ •~ ` ~ N m p~
X N C~~ t[l CU f6 (U C m
N to "p' p ~~ U d ~ ~ N C C
N c ~ C x p `' (0 47 ~ N N ~ N
~ N ~ 'p .p. C N (U O ~ ZT N ~ i
N N y ~ CU U ~ lp (U N C N N
NmE~E-°rno ~ o •~ y ~
~ ~ XQ' WO >~ ~~ ~` ~ c m m
m H
c ~ c ~ ~ ~
C7 U Z Z
~ c
o ~
n n ~
~ o -
O t6 U ~ d
d •U C ~ ~
fl. c N CU ~
~ C ~ 'D tCl N
N C '~ C C ~ E~ w O c
N ~ C p 0 O •V CU ~ •N O O
~ ,> 7 l0 ~ (6 N Z to ~ •> Z+ .
r w- m e a~ m a
~ ~ `~ > c o a~ .? N o> ~ a~ E w e
c c~ c w .v v ~` c rn aoi •v a c 'o
O C- N ._ N N 7 ~O (U .0..
O CU ~ ~ .C f0 "' N ~ ~ ~ O ~ N O ~ t6
C N N -~p fl- 7 OO .3. 0 .0.. ~ tU ~ ~ O 'O
C C Q O a. W (/) U~ N LL
a` C7 m U
N
~ O O O) CO I~ ~ O f0 ~ ~ O r M r O O 00 V' O ~ l(') (D
C oD O OD f~ ~ Q7 O
r O N N M M 0 O
~ r (p CM l(~ M
O M f~ tL~ Op O
to O f0 ~ In
O N M~ N h
OD O O
O) O
sr
N
f6 ~ N
'D f0 (O 00 X 0 0 0
~
' ~ lCl h r O N
` f0 O N O CO N N OD ~
p C
C OD CD
~ ~ I
~ ~
c0 ~ N CD ~ h r
M 00 f
to M to
~ d• ~ N O) O
CO ~ tI~ M h
I~ to (p O) r O
O to O
tp r
M
I- ~ ~ O) N r t(7 N ~h ~l In (O N O In
> r N N N
O
b9 fH 64 y9
U
.
~
L
_
Q
EA ER fA t9
~ ~ ~ ~ ~ ~ i ~ ~ ~ ~
M M ~
~ ~ ~ O M
C C
7 f ~
O ~ tf) M M N N ~
U ~ r r O O N N r
~ M M ~ ti In !17 M
~ (p t0 to t!7 CO
N
C ~
~ d' ~ ~ ~ ~
O
U
~ ~ ~r ts3
~ M i ~ r ~ i ~ ~ ~ i i ~ ~ i ~ d. i i ~ v
Z rn ~ v v v v
~ a~
O
O '
~ U
~
CO
(
CD
r
CO
t0
~ J ~ N ti N ~ i
G ~ ~
~
~
W EA ~ ffl fR
~ ~ O
~ Z O
W fV ap i ~ ~ ~ i Cp ~. i ~ ~ . i i i i ~
'
J
~
~
~ ~
~ ~
O ~
O O
~
~ M
N
W ~ ~ ~ N N ~ ~ ~
~ Z ..
.
•Q. ~
w O O «~ ~ O
~~ U ~ N N N N N
W
va t~ ~ ~
1U
~
to O O ~ ~ Ln O
r _
f~ 'ct O M
st
O ' O ~
O '
~
~ M O aD N 'd• O) O O) Q~ (O M G M op O f~ N O O
1~ O N ti M M 0 et I~ M h t1') 00 N O M OD N ~
Q ~ ~ f0 00 ~ O O O I~ ~ ~ ~ O N ~ O ~ N a0 ~
m
C O O~ O ti~~
'
'
' ' O n~ M M to
'
' O) ~T M r 00 QO
Q: I~
O
d
N ~1 O ~
~
N N W (O 1~ O O M O
J
i N
(7 r N r
r f~ N e1' ~ CO N
r ~
r
ER fR (fl bg
d
~
u!
~f
C
O y
~O y C = f0
s n
~
N ~
v,
~ C m
~ `~ .
y
C
1 C O N C
C O
N ~ M C0 ~ .
~
a~ f6 C ~p f/)
"a 3
N
C ~ 'C
O N 0 N C
a. C
w N
U ~•-
C
N N~ ' ~ U N •~
a
N O~ O ~ C 7 N ~ ' t6
N N ~ ~~ O ~ C
i t6 ~ O
C N
~ N
to f0
> L L ~ Q ~ ~ N ~ 7 ~ > _
~ O O ~ '~ . w ~ ~
U ~
C U O O N ~
a C N ~_ O
~ r ~ ~ ~ (6 ~ w N
U~
~
C
~ O O 'O
C L
O < ~ N N f
` C
N .0
(
p ~ f6 (
6 y
C ~ ~ 6 0 •
C C ~ m N
_ _
N f0 > ~p 7 7 ~
O U (6 l6 ~ N N N N N C
a
NU ~E-oo ~ Qa~oo ~~oo~
~ ~
Q J
M
rn ~
ti ~ rn
~ E ~
C
O N ~ ti
N ~ N ~
(
O C
p _ N
d9 I ~}
O to ~ t~D ~ (O I~ oD ti
~
M
N ~
O r
" ( Cf N N M ~
~
~ ~ M r
V to M C7
~' f~ N
.
v . ~t CO N M ~
.
O ~- r
CO (~
H
W
W
=
vi ~
N
~
W ~
O
.~
U ~ ~ c
Z c~0 ~ N
Q O ~ ~ O
m (~ ~ ~ N v1
~ W
~ C
N N
Vi
tO N
(n N ~ to
o
v c O O
a
~ Q 3 ~ 'N ~ "- C N
~ CJ w
O d '~ ~ ~
J
W
fa- Z o N
~ .
~,
.~ c6
~ C
°~ 7 0
~ •~
Z V- O ~ ~~ ~ C N U
W O N ~ N Q C L ~
Zz
° a~
~ N
`~
~ ~ ~
m
c
h -a c
o ~~
o o
rn °
x
w~ W ~ m~ ~ N
' a~ m~
°
>W~ ca a m ~n
° ~ '~
OI--, w ~~ ~o S °aNi
O~ y O~ ..LO
. U .
~ O L~
_ ~ ~ ~ U .
-O N ~ N
~ ~ ~ 'O
O
W
~ ~
N
O ~
~
(9
~ C C
~ N
~ _ .
C ~: N C U C (0
Z~ O ~ 'O N O O- ~ O >,
O ~
N ~ co ~ m ~ ~ ~ Q
~
Q ~
0 O ~ N~ (6 -O
' .p tq
~ 'D
J .
+
~ N ~
N ~ -~
U C O ~
~ N
Z
~ r
~ ~
O ~
O ~ > .~
td
O ~ ~ ca ,'.' ~ ~ -a o ~o
~
U S f° ~
~ '~ .~
~ ~
L m o
~ i
~ acc
~ C
LL U)
N N
U •N Q
'O
N U ~ ~
~
y O E
(q
c
'
~- ` ..N.
O N to
O C N
c- ~
> N
~ 'C "'' N
~ O
N
~ .
~
f0 N U
` ~ Q ~
C
C ,
~ .OQ
~ 'p ~
N .
>
~
~ I~0 f0 ~p
'
~ (B
f0 ~ ~
N ~ w
O C ~
N O
U +L.
N U
~
C U _ O N +, N C ~ ~ C
C U C ~~- O C N V N ~ C
>
~
C O
~ ~
N ~ ~ ~
~
N ~ N ~ _
~ X
3
O
~
O ` ~ ~
~ m ~
~ ~ ~ ~ ~
~ ~ w a~ ~ ~ :a
~ ~ E
~ ~
~
v~ ° ~ N '
'' m ~
~ ~ ~„
° s ~ v (6 ...
~ U
C
C7
U -O ~ = C ~- ~ Q '~ -a r N ~
N ~ > N IC
~ 'C
d y C
(0 N N ~
.+ ~ Q- ~ J 7 ~ ~
N C C N ~ _O
~ N
~ ~
N
~ L C 0 0~ U N N
fU
L N
.~ ~_ ~ .~ ~ mUO Q ~ ~mm ~~~ W N
C ~ d >, ~ _ N ~,
X 'p ++
N
o U Q U m U Q H~ ~
~
10- Q H
H
V
~_
0
J
0
N
W
Q
Z
W
v
Z
LL
J
Q
Z
W
Z
Q'
W
0
i
(A
~ W
. U
Q
~ Q o
m ~
~ D N
~ M
W W
- Z Z
~ ~ ~
~ W ~
C7
W
Z
= Z
CUW
o~
~Qw
~ ~
W
W
Z
H
~ O
C°z"-
- W
~ a.
~ W
i
. ~
W
Z
W
W
LL
O
H
Z
w
W
H
In ~ O r O In 00 'a' N O O
- O O O CO N N ~ r tp
~p ~~ N O N N ~ 1~ ~ r
O r O O N I~ M M CO O
~ O CD ~ 00 ~ I~ r N 'cf r I~ 00 O O O (D 00 O O O
O O O 1~ O ~f M O~~ ti M O M O In r ~ O O O 00
~p ~ -p (O M M O M O (O M N r~ 00 O M O O r O O O
~ C In 00 O M ti lC) 00 00 M r r In O h ~ ~ (O CO Cp l0
~~ O (p ~ r r 0 h N r r to O r In 00 ffl 00 Cp CO M O
> LL M r lp N r ~ r r
~ r N
O .
...
69 yQ
~~ i i~ ~ ~~ i i^ f7 ~ i 0 i i M M ~
In l() r r
~
~
O O o0 CO M M
U ~ ~ N N M M M
N
O N N r
.C ~-'
Q
~ ~
~
p ~ ~
p ~ ~ ~ ~ ~ ~ ~
C O
'
S O N ~ O N ~
`
` l
f
) N
• ~ N N N O
O
N O
~ a
l
[1
0 ~ ~' ~ ~
~ C M ~ ~ O to to
N ~ ~ ~ d'
C
O
U
~r ~
' ~. ~ ' ~ ' ' O ' O a) st' ' O N N
~ CO Gp ~
(O CO O ~ ~ r O O ~ M to
~ ~ a0 O O) ~ O O) CO h I~ ~
U r r O O) C) ~ l(') r O) O
N O M (~ ti ~ ~ ~
N r O O
Q ~ ~ t(') ~ M O c0
.
..
~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ O ~ ^ ti v
O to O aD M ~ ~ ~ O
w
•Q N
v
~
v
o
v
rn
~
fC N _
r r _ r N N
U ~
~ ~
to 0 0) r to In OD N O ' to O ' ' '
~
1~ O N O ~ O N N M op I~
O r o 0p O
I~ r 0 0 I~
r ~ M ~ N
(p O M O e! 00 O) ~ ~ r O> O) O OD O> OD
~ ~ ti O M~ ~
O
N r O r
O t
o
p
(O CO M ~ M
C
~ CD r r r 0 1~ T r r O) (O N O N
(~ M r to N 'cr
r
~ ~
a~
N O ~
d N N
in w •~ 'a
V d C N t~A N N w N~ N
U ~
O
~ N N N f6
U N -~ M V y D1 '6 O C w
o E
'O ~
' D7
N 'O
N
U N
U N `- N
7~ O ~`
~~ V X
N
y 7
C C
O O
p
a O U Z O
'O
M y p
d C
d
U
O N .
. ?
O O O N h ~ O Z
•~ ~ U ~ c O w C y~ .6 y
~ ~ O N
y m m ~~~ ~ a c :°. ~ H w c .o `
c w N~ jai ~ c c
m o o
~
m a ~
~
C o m m ° c°~ ~~ m ~
~
C m m
C
J
J
(n LL
C
~ (n Z U ~ _
o c~ m y~ m
~ CD ~ F- O v ~- ~
L m
~ m
~
O O L U C C
~ W _
O Z LL LL
u~
~ O O M r O M
(
7 GO O
i ~ a
O
O t0 O O O ~ O O O N
W l!7 t!j O ti O) 00 N M
U ~ V' O et
CO O_ I~ N
~ ~
(D
`-' ~
N M
N ` (7
W
~--'
~_
~-.'
U
Q
W
O
H
Z
W
W
Q
W
2
H
~ Z O
N ~ U
LL. Z D
°~gN
oWm~
V ~ Z
N ~ Z ~
O
W O w ~
Q = Z W
~ Q ~
~ O U W
}
m ~ Z W
~ Q ~
V J W ~
aZ?O
V ~ ~
W W W
~ ~ X
W
W
Z
W
W
lL
O
Z
W
W
Q
d9 I ER
N
a
C
w
:°.
N
E
C
N
O
U
C
f6
f6
a
C
w
.C
N
O)
C
f6
L
U
d
c
m
0
f'-
M et N ~ ~ O
O f00 OV M 01 ~
f~ OD CO I~ N ~
c~) a M O c+~ N
N M
fH
a~
.N a
~ ~
a~
t y ~ O O O T
o ~ c ~ c
> o
O a
N ~
N ~ ,~
y a
X E a m
X C
~ ~ a m a ~
C m
N y
N a~ ~~
N a
f0 N ~ C o > c a
v
~ o .~ °' ~ '> ~ ~~
.
_
m
'm
N m
ui
'to
.~ y a~
w v
~~ ,c
_
N D_ _
'O'
C
O T
O d
N N
O
N O
(O U .LO-. y ~ N ~ w`
~ 3
ai ~ ~ w v ~ "o o ~
~ ~ '
~
>' a~ v
""'
.d
O d
6 ~
~ a ~
O ~ ~
p w
X ~ ~ : +
in vi
U
O ~
N ~ m
~ a
O O
U ~ a~ ._
E w ~
f
q
O C
~ l6
-~ .
.
f6 N
C V 7
m a
C~
~ d (0 f6 N ~ ~ y ~ ~ N vi T
tll N N C L
3 C (O a d N N C O
d o
o
~
'
m p
° m >, 3 w~ ~ N ~ D.
m
?
~
~ v a
~ w~
~~ ~
N w~
~~ ~~
a ~~ is
_
~
m v
`m w E u
i v ~'
~ 0 0
o m m e o a >, f6 m ~ ~
C ~ n.
N a a~
H w
~'.' N L N ~p
U O O. O
N L N f0/1 j t
EL
mL
v
v o 3w
c a >,
'c w c
c o ca
y~ o 0
rno
:° 3 c c a ~
m o N ~ ~
L O O •C d
N ~ N C
~ l9 l0 to
w N
w
~
ca .
-'
a ,c c
o y .
w o
m
c ~
O ~
~ ~ ~
E m ~ `
y
a~ v c-o
w m rna
d~ _
~ a~
U1 E
a m C C 3
O V>
c 0 N N
L pl `
:fl U .L.. O
C U ~ L
C F_
w L O O~ ~ N ~ N N N r/J w Q .y+
N N (n ~ p N -O C~ ~ '~ N V
C
N O N
i w~ N~ O
L N ,~ ~~ ~ ~
o
E~ c c o ~~
~ ~ y
o m o~ ~ .~ a
~ U N N O E~ N~ X L c o
"" 7 N C
O) L
~
a ~
O N y
O
'
N
> C~ ~
f0 N O
O
w~ C
O N a
O) C U y
O N fA ~;
~ (0 a N
N >~ _ N
y N
C N
.
c X
o C f0
.c E y
d
.
N C .O-' >+ O t
.r O~
O
N
N N N
m ~
N~ =
a. F- c m
~>
m ~ ~
c~ a
N p~ .r
w m
'~ N a `c v_i ~ vi d x x ~ ~~ c o
C C C 'C N ~ N C ~ ~ N~ a L T
o
~ ~
°a ..L.
3
~ m
o d N O
f0 ~° N
N
d
~
c `
-
O U~
~ o
~ N ~
O
>
U
~ `
N N c
i
N m
E~
m a.~ ~
i m .
.
,
c may
~ o a ~ ~
a s o n
m y v
m
01 a
w ~ i
~ a
a~
c p
° a
m ~
m
o~
~ u
i c Q
y O ~
rn
O N .C C c vi ,~
= a X ~
y C a
~ >, E :~
N m
N N N
O
N y C x U l0
'C N O
N L> j N
a
O ; C N~
~ 3
O O N a
C a
O
W
>> nc a
m f
X
w
o d
U1 '
xm m a ao
,
~
0
0 c 0 ~
O y ~d~
U ~-' :°E
~ d
N
0 E
~
7
T O O
L y
a~ O
U .S c m N 4: U
N~ ~p .c .
.
C .L.. N
U C L
O N
~ 7 ~C ~ O~ N >' ~ N ~
~ O~ N~ O~ O 0 O V
O~ 'C d
O~ N N .U.. ~ O .LO.~ ~
7 w N O
~ :
O E N> f0 ~
y
N Vl a
C~ «~
C y f0
C to
U ~ N O a
C 0
U Q ~
f0
~ W ~p "
.Q ~ ~ ~
>. a
C a ~
C a ~ ~
U ~ ~
>. ~ ~
T ~
~
>, -
f0
U a a .5 m° o m° d m ~ a E a~ a .~
w
.j
U
f6
(6
c
m
0
C7
N
N
y
f0
N
C
N
rn
c
m
L
U
co
W
- • MECHANICSBURG AREA SCHOOL DISTRICT
STATEMENT OF NET ASSETS -PROPRIETARY FUNDS
• JUNE 30, 2010
Assets
Cash and cash equivalents
Accounts receivable
Inventories
Total current assets
Furniture and equipment (net of accumulated depreciation)
Total assets
Liabilities
Current liabilities
Due to general fund
Deferred revenues
Accounts payable
Compensated absences
Total current liabilities
Net assets
Invested in capital assets (net of related debt)
Unrestricted
Total net assets
Total liabilities and net assets
Food
Service
$ 960,848
172
16,701
977,721
416,183
$ 1,393,904
$ 404,725
32,211
10,100
23,916
470, 952
416,183
506,769
922,952
$ 1,393,904
The accompanying notes are an integral part of these financial statements.
FS-7
MECHANICSBURG AREA SCHOOL DISTRICT
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS -PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Operating revenues
Food service revenue
Charges for services
Other operating revenues
Total operating revenues
Operating expenses
Salaries
Employee benefits
Purchased property service.
Other purchased service
Food and milk
Other supplies
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Earnings on investments
Loss on disposal fixed assets
State sources -commodities
State sources -social security and retirement subsidies
State sources -meal subsidies
Federal sources -meal and other subsidies
Total nonoperating revenues
Loss before transfers
Transfers from other funds
Change in net assets
Net assets -beginning
Net assets -ending
Food
Service
$ 1,024,457
23, 854
1,415
1, 049,726
592,701
226,469
31,179
79,947
801,675
87,233
60,237
1,879,441
(829,715)
1,757
(3,033)
99, 505
35,467
73, 064
508,126
714,886
(114, 829)
119,204
4,375
918,577
$ 922,952
The accompanying notes are an integral part of these financial statements.
FS-8
MECHANICSBURG AREA SCHOOL DISTRICT
STATEMENT OF CASH FLOWS -PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Operating activities
Cash received from users
Cash payments to employees for services
Cash payments to suppliers for goods and services
Cash payments for other operating expenses
Net cash provided by (used for) operating activities
Non-capital financing activities
State sources
Federal sources
Net cash provided by (used for) non-capital financing activities
Capital and related financing activities
Cash received for equipment sold
Cash payments for equipment
Net cash provided by (used for) capital and related financing activities
Investing activities
Earnings on investments
Net cash provided by (used for) investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents -beginning
Cash and cash equivalents -ending
Reconciliation of operating income (loss) to net cash provided by (used for) operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to net cash
provided by (used for) operating activities
Depreciation
Donated commodities
Contribution of General Fund
Net change in other assets and other liabilities
Accounts receivable
Inventories
Due to/from other funds
Deferred revenue
Accounts payable
Compensated absences
Total adjustments
Net cash provided by (used for) operating activities
Food
Service
$ 1,055,414
(348,861)
(713,803)
(115,641)
(122, 891)
108,531
508,126
616,657
3,400
(4, 884)
(1,484)
1,757
1,757
494, 039
466, 809
$ 960,848
$ (829,715)
60,237
99,505
119,204
872
7,806
404,725
4,818
5,008
4,649
706,824
$ (122,891)
The accompanying notes are an integral part of these financial statements.
FS-9
U cn
~ ~
~,,, z
~~
~~
J Q
~ ~
_ ~
U ~ o
N
0
~ N
~ M
Q Q Z
~ Z ~
~ ~
m ~
N
U z
Z w
= w
V ~
W ~
~.
0
H
a~
.~
U
Q
U
C
N
Q
°~ vii
> °~. ~'
.`~~
°- a ~
o ~ o ~n ~n ~n o
~ 0 °D w o o
o
0 o
O a
o
0 0 ~ .= of o
~ ~ ~ ~ ~ ~
~ ~ ~ ~
~ ~ ~ ~ ti ~ ~
rn rn rn rn rn
~ ~ ~ ~ ~
M M M M M
~ r r ~ ~
ER EA E9 Et?
~ ~ ~ ~ ~ ' ~
r T l~ r r
N N N N N
~ M M M M
c
7
~ ~ ~ ~
° ° ° °
o o o o
~ v v ~
~ I ~~~ EAI ( I ~
m
c~
~
c ~
~
~
~ .v
~
~
~~
6
~ c~
~
~ i
a
=
~ ~
a~
~ a~
~ _
:n
U ~ ~ N f0
C +N' ..~. ~ ~ ~
L ~
O H f" ~N,, 'U
..~_. H
N
~ U Q -
m
N ~
~ m ~
Q ~ z
O
LL.
MECHANICSBURG AREA SCHOOL DISTRICT
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS -FIDUCIARY FUNDS
JUNE 30, 2010
Additions
Investment earrfings
Gifts and contributions
Total additions
Deductions
Scholarships awarded
Change in net assets
Net assets, beginning
Net assets, ending
Private Purpose
Trust
$ 313
28,207
28, 520
26,751
1,769
147,236
$ 149,005
The accompanying notes are an integral part of these financial statements.
FS-11
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 provided include a comprehensive curriculum for primary and secondary
education as well as special education and vocational education programs. The District receives revenue from
local, state and federal sources and must comply with the requirements of these funding sources.
The financial statements of Mechanicsburg Area School District have .been prepared in accordance with generally
accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board
(GASB) is the authoritative standard-setting body for the establishment of governmental accounting and financial
reporting principles. Accounting guidance is also provided through the Comptroller's office for Pennsylvania
Department of Education. The more significant of these accounting policies are as follows:
Reporting entity
The GASB establishes criteria for determining the activities, organizations and functions of government to be
included in the financial statement of the reporting entity. In evaluating the District as a reporting entity,
management has addressed all potential component units which may or may not fall within the school's financial
accountability. The criteria used to evaluate component units for possible inclusion as part of the District's
reporting entity are:
• The economic resources received or held by the separate organization are entirely for the direct benefit of
the District or its constituents.
• The District is entitled to, or has the ability to access a majority of the economic resources received or
held by the separate organization.
• The economic resources received or held by an individual organization that the District is entitled to (or
has the ability to) access is significant to the District.
The District has included The Wildcat Foundation (the Foundation) as a discretely presented component unit. The
financial data of the Foundation is reported in the component unit column in the basic financial statements. This
separate column is used to emphasize that the Foundation is legally separate from the District. The Foundation
was formed for the purpose of supporting projects related to educational programs and to create opportunities for
development for the students, staff and community within the Mechanicsburg Area School District. The separate
financial statements for the Foundation are available by contacting the District office.
FS-12
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.)
Jointly-governed organizations
The District is a participant in four jointly-governed organizations, each of which is a separate legal entity that
offers services to the District and its residents. Each of these entities serves several school districts and/or
municipalities and therefore are not included in this reporting entity. These entities do not have taxing power, but
are required to adopt an annual budget, which is funded primarily by its member Districts or others that use its
services. Complete financial statements for these entities can be obtained from the respective entity's
administrative office.
Capital Area Intermediate Unit provides special education services and programs.
Cumberland Perry Area Vocational Technical School provides vocational and technical education
services and programs.
Harrisburg Area Community College provides community college education services and programs.
West Shore Tax Bureau provides earned income tax collection services.
Basis of presentation -District-wide financial statements
District-wide financial statements (i.e., the statement of net assets and the statement of activities) report
information on all of the nonfiduciary activities of the District. As a general rule the effect of interfund activity has
been eliminated from these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are presented separately from business-type activities which rely to a significant
extent, on fees and charges for support.
The district-wide financial statements are presented using the economic resources measurement focus and the
accrual basis of accounting as are the proprietary fund and the fiduciary fund financial statements. Revenues are
recognized when earned and expenses are recognized when a liability is incurred, regardless of the timing of
related cash flows. Real estate and personal taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met. Net assets (total assets less total liabilities) are used as a practical measure of economic
resources and the operating statement includes all transactions and events that increased or decreased net
assets. Depreciation and amortization are charged as an expense against current operations. Capital assets (net
of accumulated depreciation) and bonds payable (net of unamortized costs) are presented in the statement of net
assets.
The statement of activities demonstrates the degree to which the direct expenses of given functions or programs
are offset by program revenues. Direct expenses are those that are clearly identifiable within a specific function or
program. Program revenues include charges to customers who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or program. In addition, program revenues include grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or
program. Taxes and other items not properly included among program revenues are reported as general
revenues.
FS-13
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.)
Basis of presentation -Fund financial statements
Fund financial statements are also provided for all governmental funds, proprietary funds, and fiduciary funds of
the District. Major individual governmental funds and major individual proprietary funds are reported as separate
columns in the fund financial statements. Nonmajor funds, if any, are aggregated and presented in a single
column. Fiduciary funds are reported by fund.
The governmental funds are presented using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are received within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the District considers tax revenue to be
available if received within 90 days of the end of the fiscal period. Revenue from federal, state and other grants
designated for. payment of specific expenditures is recognized when the related expenditures are incurred;
accordingly, when such funds are received, they are recognized as deferred revenues until earned. Expenditures
generally are recognized when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recognized only when payment is due.
Proprietary funds generally follow standards for accounting and financial presentation for private business
enterprises to the extent that those standards do not conflict with or contradict guidance of the GASB.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with the
fund's principal ongoing operations. Operating expenses for the District's proprietary fund include food production
costs, supplies, administrative costs, and depreciation on capital assets. All revenues or expenses not meeting
this definition are reported as nonoperating revenues and expenses.
Fund accounting
The accounts of the District are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing
accounts which comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as
appropriate. Resources are allocated to and accounted for in individual funds based upon the purposes for which
they are to be spent.
When both restricted and unrestricted resources are available for use, it is the District's general policy to use the
restricted (primarily operating grants) resources first, then unrestricted resources as they are needed.
The District has the following major types of funds:
Governmental Funds -These funds account for the activities through which most of the District's operations
are provided.
FS-14
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.)
Basis of presentation -Fund financial statements (Cont'd.)
Fund accounting (Cont'd.)
Proprietary Funds -These funds account for the operations of the District that are financed and operated in a
manner similar to private business enterprises.
Fiduciary Funds -These funds account for the assets held by the District as a trustee or agent for individuals,
private organizations and/or governmental units and are therefore not available to support the District's own
programs.
The District presents the following major governmental funds:
The General Fund is the primary operating fund. It accounts for all financial resources except those required
to be accounted for in another fund.
An operating budget is adopted prior to the beginning of each year on a modified accrual basis of
accounting. The General Fund is the only fund for which a budget is legally required.
The Pennsylvania School Code dictates specific procedures relative to budget adoption and financial
statement presentation. The District, before levying annual school taxes, is required to prepare an
operating budget for the succeeding fiscal year. This process includes the publishing of notices by
advertisement, that the proposed budget has been prepared and is available for public inspection at the
administrative office of the District, and that public hearings are held on the proposed operating budget
which are required to be scheduled at least ten days prior to when final action on adoption is taken by the
Board.
Legal budgetary control is maintained at the sub-function/major object level. The Board may approve
transfers of funds appropriated to any particular item of expenditure in accordance with the Pennsylvania
School Code. Management may amend the budget at the sub-function/sub-object level without Board
approval, provided it is not at a higher level than the Board adopted budget.
In order to preserve a portion of an appropriation for which an expenditure has been committed by a
purchase order, contract or other form of commitment, an encumbrance is recognized. Unused
encumbrances expire at the end of each year.
Included in the budget are program budgets as prescribed by the federal and state agencies funding the
program. These budgets are approved on a program by program basis by the federal and state funding
agencies. During the year these programs increased both revenues and expenditures of the original
budget by $ 504,540.
The Capital Reserve Fund accounts for transfers from the General Fund and expenditures of those funds for
capital outlays.
FS-15
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.)
Basis of presentation -Fund financial statements (Cont'd.)
Fund accounting (Cont'd.)
The Athletic Fund accounts for athletic revenues and expenditures of those funds for athletic purposes.
The Construction Funds accounts for bond proceeds and the expenditure of those funds.
The Debt Service Fund accounts for bond refinancing, related costs and other debt-related payments.
The District presents the following proprietary fund:
The Food Service Fund accounts for the operations of the cafeterias.
The District presents the following fiduciary funds:
The Private Purpose Trusts account for contributions to and interest earnings on scholarship funds donated to
the District, and for payments of scholarship funds to selected students.
The Agency Fund accounts for programs operated and sponsored by school related organizations. These
funds are separated from student activity funds.
The Activities Fund accounts for programs operated and sponsored by various clubs and organizations within
the schools.
Cash and cash equivalents and investments
The District's cash and cash equivalents are considered to be cash on hand, demand deposits (including pooled
investments), and short-term investments with original maturities of three months or less from the date of
acquisition.
The types of authorized investments are limited by State regulations. Pooled investment funds are required to be
operated in accordance with State regulations.
Investments, including pooled investments, are presented at fair value.
Taxes and taxes receivable
Real estate and personal taxes are levied as of July 1 with a legal, enforceable claim against the property and/or
taxpayer. Amounts not collected within six months (December 31) are considered delinquent and submitted to
outside agencies/entities for collection actions.
FS-16
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.)
Receivables and payables between funds
Activity between funds that represent lending/borrowing arrangements outstanding at the end of the fiscal year
are referred to as "due to/from other funds". Any residual balances outstanding between the governmental
activities and business-type activities are presented in the district-wide financial statements as "internal balances".
Balances between funds are considered to be short term items pending periodic repayments.
Inventories and prepaid items
Inventories are presented at the lower of cost or market on a first-in, first-out basis, and are expended when
consumed. Donated commodities are recognized as revenue and are inventoried at an estimated cost value.
Certain payments, if any, to vendors reflect expenses applicable to future periods and are presented as prepaid
items in both district-wide and fund financial statements.
Capital assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, sidewalks, and
similar items), are presented in the applicable governmental or business-type activities columns in the district-
wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost of
more than $ 5,000 and an estimated useful life in excess of one year. Management has elected to include certain
homogeneous groups with individual costs of less than $ 5,000 as capital assets for financial presentation
purposes. In addition, capital assets purchased with long-term debt may be capitalized regardless of the
thresholds established. Such assets are presented at historical cost or estimated historical cost if purchased or
constructed.
Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of
normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not
capitalized.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Assets
Governmental Business-type
Activities Activities
Buildings
Interior renovations
Land improvements
Furniture
Machinery and equipment
Library books
Computer equipment
Vehicles
50 -
25 -
20 -
20 20
10 to 15 15
5 -
5 5
8 -
FS-17
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.)
Long-term liabilities
In the district-wide financial statement, and proprietary fund types in the fund financial statements, bonds payable
and other long term obligations are presented as liabilities in the applicable governmental activities or proprietary
fund statement of net assets. Refunding costs and bond premiums and discounts are amortized over the life of
the bonds using the effective interest method. Bond issuance costs are presented as deferred charges and
amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance and refunding costs, as current period expenditures. The face amount of debt issued is presented
as other financing sources while discounts and refunding costs on debt issuances are presented as debt service
expenditures. Issuance costs, whether or not withheld from the actual debt proceeds received, are presented as
support service expenditures.
Net assets
Net assets represent the difference between assets and liabilities. In the district-wide financial statements and
proprietary fund financial statements, net assets are classified in the following categories:
Invested in capital assets (net of related debt) -This category groups all capital assets into one
component of net assets. Accumulated depreciation and outstanding debt that are attributable to the
acquisition, construction or improvement of these assets reduce this category.
Restricted -This category presents external restrictions imposed by creditors, grantors, contributors or
laws or regulations of other governments and restrictions imposed by law through constitutional
provisions or enabling legislation.
Temporarily restricted -This category presents external time and/or use restrictions imposed by donors.
Permanently restricted -This category presents donor-imposed stipulations that they be maintained
permanently with only the income available for specified uses.
Unrestricted -This category presents the net assets of the District, which are not restricted for any
project or other purpose. However, these funds may be internally designated for specific projects or
purposes in the fund financial statements.
FS-18
MECHANCISBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.)
Fund balance reserves and designations
In the governmental fund financial statements, reserves and designations segregate portions of the fund balance
that are either not available or have been earmarked for specific purposes. Reservations or designations of fund
balances are described below.
Reserved for prepaid expenses. This category reflects resources already utilized so they are not
considered as current available funds.
Reserved for capital projects. This category reflects resource which, due to terms of bond indentures,
must be utilized for capital projects; therefore, they are not considered as current available funds for any
other purposes.
Designated. The District has designated $ 1,785,378 toward the future payment of accruing retirement
plan obligations and $ 3,850,000 toward the future payment of medical premiums. Additional funds have
been designated for the retirement of long-term debt.
Recent accounting standards
In March 2009, the GASB issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions. This statement establishes fund balance classifications that comprise a hierarchy based primarily on
the extent to which a government is bound to observe constraints imposed upon the use of the resources
reported in governmental funds. The District is required to implement GASB 54 in its year beginning July 2010.
In March 2009, the GASB issued Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles
for State and Local Governments. This statement incorporates the hierarchy of generally accepted accounting
principles (GAAP) for state and local governments into the GASB's authoritative literature. GASB 55 was effective
upon issuance. The District has implemented this standard in the current year.
In March 2009, the GASB issued Statement No. 56, Codification of the Accounting and Financial Reporting
Guidance Contained in the AICPA Statements on Auditing Standards. The objective of this statement is to
incorporate into the GASB's authoritative literature certain accounting and financial reporting guidance presented
in the AICPA's Statements on Auditing Standards. This statement addresses three issues not included in the
authoritative literature that establishes accounting principles: related party transactions; going concern
considerations; and subsequent events. GASB 56 was effective upon issuance. The District has implemented this
standard in the current year.
Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect certain presented amounts and disclosures.
Accordingly, actual results could differ from those estimates.
FS-19
MECHANCISBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.)
Subsequent events
In preparing these financial statements, the District has evaluated events and transactions for potential
recognition or disclosure through November 22, 2010, the date the financial statements were available to be
issued and there are no items requiring disclosure.
CASH AND CASH EQUIVALENTS AND INVESTMENTS
Pennsylvania statutes provide for investment of District funds into authorized investment types including U.S.
Treasury bills, other short-term U.S. and Pennsylvania government obligations, and insured or collateralized time
deposits and certificates of deposit. The statutes do not prescribe regulations related to demand deposits;
however, they do allow the pooling of funds for investment purposes.
Custodial credit risk is the risk that in the event of a depository institution failure, the District's deposits may not be
returned to it. The District's policy requires that all deposits in excess of FDIC insurance coverage be
collateralized by the depository institution with approved collateral as provided by law.
At June 30, 2010, the District's deposits totaled $ 2,001,142 and the depository institution balances
totaled $ 2,391,991. Of the depository institution balances, $ 253,523 was covered by federal depository
insurance and $ 2,138,468 was collateralized under Act No. 72 of the 1971 Session of the Pennsylvania
General Assembly, in which financial institutions were granted the authority to secure deposits of public
bodies by pledging a pool of assets, as defined in the Act, to cover all public funds deposited in excess of
Federal Depository Insurance limits. The pledged collateral is held by the Federal Reserve Bank, but is
not titled in the District's name.
The District also has cash equivalents and investments with three organizations that operate as common
law trusts established pursuant to the Intergovernmental Cooperation Act and related statutes for the
purpose of pooling investments. Each organization's fundamental policy is to maintain a net asset value
of $ 1 per share, but there can be no assurance that the net asset value will not vary from $ 1 per share.
They may only purchase securities which are permitted under PA law. As of June 30, 2010, the District's
deposits in these organizations are as follows:
Pennsylvania Local Government Investment Trust (PLGIT) $ 11,921,016
Pennsylvania Treasurer's INVEST Program (PA INVEST) 3,826,715
Pennsylvania School District Liquid Asset Fund (PSDLAF) 4,055.054
19.802.785
FS - 20
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
CASH AND CASH EQUIVALENTS AND INVESTMENTS (Cont'd.)
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The
District does not have a formal investment policy for interest rate risk. The weighted average maturity of the
securities held by each of the organizations is generally less than 90 days.
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The District
does not have a formal investment policy for credit risk. The District's deposits in each of the organization's were
rated "AAAm" by Standard & Poor's.
Cash and cash equivalents and investments at June 30, 2010 are as follows:
Governmental activities
Business-type activities
Fiduciary funds
Total cash and cash equivalents
Cash and Cash
Eouivalents Investments
$ 19,686,189 $ 486, 000
960, 848 -
670.890 -
21-.317.927 $ 486.000
Investments consist of certificates of deposits with original maturities of more than three months from the date of
acquisition.
TAXES RECEIVABLE
Taxes receivable are as follows:
Taxes Taxes
Receivable Allowance for Receivable Deferred
(Gross) Uncollectibles (Net) Tax Revenue
Real estate taxes $ 647,875 $ 38,870 $ 609,005 $ 338,388
Earned income taxes 1.639.284 - 1,639.284 131.557
General Fund 2,287,159 38,870 2,248,289 469,945
Full accrual adjustment - - - (469.945)
Governmental activities 2.287.159 S 38.870 $ 2.248.289 $
FS-21
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
DUE FROMfTO OTHER FUNDS AND INTERFUND TRANSFERS
Interfund balances are as follows:
Assets Liabilities
General Fund $ 404,725 $ 404,725 Food Service Fund
Debt Service Fund 239,551 239,551 General Fund
Interfund transfers were as follows:
Other financing sources Other financing uses
Debt Service Fund $ 5,271,902 $ 5,271,902 General Fund
Food Service Fund 119,204 119,204 General Fund
Athletic/Special Revenue Fund 130,156 130,156 General Fund
Capital Reserve Fund 1,089,570 1,089,570 General Fund
DUE FROM OTHER GOVERNMENTS
Due from other governments are as follows:
Governmental Business-type
Activities Activities
Local sources -other taxes
Local sources -other items
State sources
Federal sources
$ 52,747 $ -
337,918 172
294,909 -
784, 773 -
1.470.347 $ 172
FS - 22
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
CHANGES IN CAPITAL ASSETS
Capital asset activity for the year was as follows:
Governmental activities
Capital assets not being depreciated
Land
Construction in progress
Capital assets being depreciated
Land improvements
Buildings and improvements
Furniture and equipment
Library books
Accumulated depreciation
Land improvements
Buildings and improvements
Furniture and equipment
Library books
Capital assets being depreciated, net
Governmental activities capital assets, net
Business-type activities
Capital assets being depreciated
Equipment
Accumulated depreciation
Equipment
Capital assets being depreciated, net
Beginning Current Year Activity Ending
Balance Increases Decreases Balance
$ 605,983 $ - $ - $ 605,983
22.675 340,819 (22,675) 340,819
628.658 340,819 (22,675) 946,802
5,131,936 95,637 - 5,227,573
81,718,395 1,287,080 - 83,005,475
4,823,020 567,982 (127,340) 5,263,662
1,691,357 90.000 (43,298) 1.738.059
93,364,708 2,040,699 (170,638) 95,234,769
(2,114,491) (220,840) 485 (2,334,846)
(19,321,949) (2,519,405) - (21,841,354)
(3,247,557) (607,442) 85,105 (3,769,894)
(1,572,211) (60,917) 43.298 (1,589,830)
(26,256,208) (3.408,604) 128,888 (29,535,924)
67,108,500 (1,367,905) (41.750) 65,698.845
$ 67 737.158 (1.027.086) (64.425) 66.645.647
$ 1,075,605 $ 4,884 $ (14,660) $ .1,065,829
(597,635) (60,237) 8.226 (649,646)
477,970 (55,353) (6,434) 416,183
Business-type activities capital assets, net $ 477.970 (55.353) (6.434) $ 416,183
FS - 23
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
CHANGES IN CAPITAL ASSETS (Cont'd.)
Depreciation expense was charged to functions/programs as follows:
Governmental activities
Instruction
Instructional student support
Administrative and financial support
Operation and maintenance of plant
Transportation
Student activities
Community services
Business-type activities -Food service
DEFERRED REVENUES
$ 2,100,705
794, 831
241, 526
170,214
7, 767
66, 725
26, 836
3.408.604
Governmental funds present deferred revenue in connection with receivables for revenues that are not
considered to be available to pay liabilities of the current period. Governmental funds also defer revenue
recognition with resources that have been received, but not yet earned. Deferred revenues in the General Fund of
$ 952,833 consists of $ 469,945 of taxes receivable not received within 90 days of the end of the fiscal period,
and $ 482,888 of resources that have been received but not yet earned.
Deferred revenue in the proprietary funds and the district-wide financial statements represents resources that
have been received but not yet earned.
LONG-TERM LIABILITIES
Changes in all Ibng-term liabilities were as follows:
Beginning Ending .Due Within
Balance Increases Decreases Balance One Year
Governmental activities
Bonds payable $ 58,260,000 $ 23,735,000 $ (21,545,000 $ 60,450,000 $ 3,015,000
Compensated absences 579,445 337,879 (169,189) 748,135 270,000
Other post employment benefits 152.265 277,897 (135,841) 294.321 140.000
Business-type activities
Compensated absences $ 19 267 $ 4,649 $ - $ 23.916 $ -
FS-24
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
LONG-TERM LIABILITIES (Cont'd.)
Bonds .payable
Changes in bonds payable were as follows:
2000 Series C
2002 Series A
2003 Series
2005 Series
2006 Series
2006 Series A
2007 Series
2009 Series
2010 A Series
2010 AA Series
2000 Series C
2006 Series
2006 Series A
2007 Series
2009 Series
2010 A Series
2010 AA Series
Beginning New Scheduled Ending
Balance Issue Refunding Redemptions Balance
$ 4,960,000 $ - $ - $ (5,000) $ 4,955,000
7,410,000 - (6,605,000) (805,000) -
5,870,000 - (4,490,000) (1,380,000) -
7,645,000 - (7,340,000) (305,000) -
3,815,000 - - (150,000) 3,665,000
9,985,000 - - (5,000) 9,980,000
8,400,000 - - (460,000) 7,940,000
10,175,000 - - - 10,175,000
- 5,000,000 - - 5,000,000
- - 18,735.000 - 18,735,000
$ 58 260.000 5.000.000 $ 300.000 (3.110.000) 60.450.000
Amounts Due
Interest Rates Maturity Date Callable Date Within One Year
Variable rate stabilized
at 4.50%
3.40% to 4.20%
3.625% to 4.125%
3.70% to 4.00%
2.00% to 3.90%
1.00% to 3.55%
1.00% to 3.80%
October 2016 Currently $ 5,000
August 2026 February 2011 155,000
August 2019 February 2011 5,000
August 2022 August 2012 480,000
August 2021 August 2014 5,000
August 2023 August 2015 -
August 2026 August 2015 2,365,000
3.015.000
FS - 25
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
LONG-TERM LIABILITIES (Cont'd.)
Bonds payable (Cont'd.)
Year Ending June 30 Principal Interest Total
2011 $ 3,015,000 $ 1,943,442 $ 4,958,442
2012 3,080,000 1,952,724 5,032,724
2013 3,795,000 1,857,737 5,652,737
2014 3,975,000 1,734,985 5,709,985
2015 4,155,000 1,596,758 5,751,758
2016-2020 23,300,000 5,710,568 29,010,568
2021-2025 17,430,000 1,410,763 18,840,763
2026 and later 1,700,000 347,123 2,047,123
$ 60,450,000 $ 16.554.100 77.004.100
In March 2010, the District issued its 2010 A Series of Bonds in the amount of $ 5,000,000. After payment of the
costs and expenses of insuring the bonds of $ 104,597, the remaining proceeds of $ 4,895,403 were deposited
into the 2010 Construction Fund to provide funds for improvement at the District's Middle School and other
building improvement projects within the District.
The 2010 AA Series bonds in the amount of $ 18,735,000 were for the current refunding of three other series of
bonds payable. After payment of issuance costs, net of original issue premium, of $ 231,805, the net proceeds of
$ 18,503,195 were used to call the $ 18,435,000 of outstanding bonds and pay accrued interest on those bonds.
The main reason for this restructuring was to take advantage of favorable interest rates. The impact of lower debt
service each year through the year 2027 resulted in a present value savings to the District of approximately
$ 1,040,000.
Compensated absences
Compensated absences (those for which employees receive pay) are presented using the termination payment
method. A liability is computed using estimates which apply historical data to current factors. The District
maintains records of unused leave and applies the contracted rate for employees eligible for termination
payments. The District allows only restricted sabbatical leave and therefore does not present any liability in
advance of the sabbatical. Payments for compensated absences are made in the year the absence is taken or the
employee retires. When an employee retires, the payout is as follows:
FS - 26
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL. STATEMENTS (Cont'd.)
JUNE 30, 2010
LONG-TERM LIABILITIES (Cont'd.)
Compensated absences (Cont'd.)
Unused sick leave will be paid at the following rates:
Number of Years
Percentage of
Accumulated Davs
Less than ten
10 through 14
15 or more
20
35
50
For teachers and administrators, any unused sick leave shall be paid at the daily substitute rate.
For support staff and Food Service Fund employees, unused sick leave will be paid at the lowest hourly
rate for support employees.
Retirement incentive payments
Professional employees who become eligible for retirement without penalty, and have at least 20 years of service,
are eligible for a one time District payment made to their individual 403(b) retirement account of $ 10,000. These
incentive payments are included as compensated absences once employees have met the District's eligibility
requirements.
Other post employment benefits (OPEBs)
The District reports OPEBs in accordance with GASB Statement No. 45 (GASB 45), which requires recognition of
OPEBs as part of the compensation package of active employees for services rendered. The cost and obligation
for OPEBs are required to be measured by an actuarial valuation.
Plan description
Under a previous negotiated agreement with the Mechanicsburg Education Association, the District provides
health insurance up to a maximum of $ 15,000 in premiums for any individual who retired with 30 years of
service to the District, age 62 with 1 year of service or 35 years of service regardless of age. This coverage
commences when the retiree reaches age 62 and continues until reaching Medicare age.
FS - 27
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
LONG-TERM. LIABILITIES (Cont'd.)
Other post employment benefits (OPEBs) (Cont'd.)
Plan description (Cont'd.)
All other eligible retirees (see pension plan) including teachers, administrators, and support staff are allowed
to continue coverage for themselves and their dependents until the retiree attains the Medicare eligible age.
Retiree's premiums are less than the District's actual cost to provide health care coverage to retirees. The
premium amount retirees pay is a blended rate for covering both active and retired Plan members. The fact
that the blended rate that retirees pay is less than the cost of covering retired members and their beneficiaries
results in what is known as an "implicit rate subsidy," which creates an additional cost to the District.
Participant information
Active participants 478
Vested former members -
Retired participants 60
Funding Policy
The District funds Plan liabilities on a "pay-as-you-go" basis, and has not established an OPEB trust fund to
accumulate assets to fund Plan obligations. The District has no statutory or contractual obligation to fund the
Plan and would only do so at the District's discretion.
Annual OPEB cost and net OPEB obligation
The District's annual OPEB cost (expense) is calculated based on the actuarially determined annual required
contribution (ARC) of the employer. The ARC represents the amount needed to fund the cost of benefits
attributed to the current year, plus an amortized portion of the unfunded actuarial accrued liability (UAAL). The
District has selected a blended amortization method, which results in the UAAL being amortized over a period
of 7 years.
FS - 28
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
LONG-TERM LIABILITIES (Cont'd.)
Other post employment benefits (OPEBs) (Cont'd.)
Annual OPEB cost and net OPEB obligation (Cont'd.)
Components of the District's annual OPEB cost, the amount actually contributed to the Plan, and changes in
the net OPEB obligation are as follows:
Employer normal cost
Amortization of unfunded actuarial accrued liability
Annual required contribution
Interest on the net OPEB obligation
Adjustment to the ARC
Annual OPEB cost
Contributed to the plan
Increase in net OPEB obligation
Net OPEB obligation -beginning
Net OPEB obligation -end
The percentage of annual OPEB cost contributed was as follows:
Year ended
June 2010
Annual
OPEB Cost
$ 277, 897
$ 78,162
218.723
296, 885
6,852
(25.840)
277, 897
(135.841)
142, 056
152.265
$ 294.321
Net OPEB
Obligation
$ 294,321
Percentage of
Annual OPEB
Cost Contributed
48.88%
Funding status and funding progress
The District's actuarial accrued liability (AAL) for OPEBs as of July 2008 was $ 1,288,868. There are no Plan
assets, thus, the entire amount is unfunded. The District does not have any current plans to fund the AAL.
Actuarial
Actuarial Actuarial Accrued
Valuation Value of Liability
Date Assets (AAL)
UAAL as
a % of
Unfunded Funded Covered Covered
AAL Ratio Pyroll Payroll
July 2008 $ - $ 1,288,868 $ 1,288,868 0.00 $20,610,024 6.25%
FS - 29
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
LONG-TERM LIABILITIES (Cont'd.)
Other post employment benefits (OPEBs) (Cont'd.)
Actuarial assumptions and methods
Actuarial assumptions and methods used in the July 2008 actuarial valuation include the following:
Interest rate 4.50%
General inflation rate 3.00%
Health care cost trend rate 8.50% in 2008 trending to 5.00% in 2015 and later
Actuarial cost method Benefits are allocated on a level basis over the earnings of
an individual from date of hire to assumed retirement date
Amortization (blended) Active employees over expected future service period, and
retirees over expected future payment period
Actuarial evaluations on an ongoing basis involve estimates of the reported amounts and assumptions about
the probability of events far into the future. Examples include assumptions about future. employment,
mortality, and the healthcare cost trend. Actuarially determined amounts are subject to continual revision as
actual results are compared to past expectations and new estimates are made about the future.
Projections of benefits are based on the types of benefits provided under the plan at the time of each
valuation and on the pattern of sharing of benefit costs between the employer and plan members to that point
in time.
Actuarial calculations reflect along-term perspective, and consistent with that perspective, actuarial methods
and assumptions used include techniques that are designed to reduce short-term volatility in accrued
liabilities.
The required schedule of funding progress in the other required information (ORI) immediately following the
notes to financial statements, is to present multi-year trend information about whether the actuarial value of
Plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
However, because the District maintains no Plan assets, information relative to Plan asset disclosures is not
applicable. Additionally, because the year ended June 2009 was the year of implementation of GASB 45, the
OPEB disclosure standards were implemented prospectively; therefore, the ORI does not reflect similar
information for three consecutive valuations.
FS-30
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
OPERATING LEASES
The District is obligated under various equipment and modular classroom lease agreements at June 30, 2010.
Total Operating lease payments included in General Fund expenditures for the year ended June 30, 2010
amounted to approximately $ 139,600. The following is a schedule of future minimum rental payments under the
operating lease agreements required for the years ending:
2011 $ 131,360
2012 129, 778
2013 62,315
2014 15,598
2015 3.350
Total minimum payments required $ 342.401
PENSION PLAN
Substantially all full-time and part-time employees of the District participate in the 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.
The District contributes to The Public School Employees' Retirement System (the System), a governmental cost
sharing multiple-employer defined benefit plan. The plan is under the authority of the Public School Employees'
Retirement Code (the Code), as amended. The plan provides retirement and disability, legislatively 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 the System at PO Box
125, Harrisburg, PA 17108-0125, or by accessing the System's website at www.psers.state.pa.us.
The contribution policy is established in the Code and requires contributions by active members and employers.
Contribution rates for active members are set by law and are dependent upon members' class. In most cases, the
contribution rates based on qualified member compensation are as follows:
Membership Class T-C Active members hired before July 22, 1983 5.25%
Membership Class T-C Active members hired on or after July 22, 1983 6.25%
Membership Class T-D Active members hired before July 22, 1983 6.50%
Membership Class T-D Active members hired on or after July 22, 1983 7.50%
Active members newly hired after July 1, 2001 are automatically Class T-D. The contribution rates for all
members in Membership Class T-D were effective January 1, 2002.
FS-31
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
PENSION PLAN (Cont'd.)
Contributions required of employers are based upon an actuarial valuation. For the fiscal year ended June 30,
2010 the employer contribution rate was 4.78 percent of covered payroll, composed of 4.00 percent for pension
benefits anal 0.78 percent for healthcare insurance premium assistance. The District's contributions to PSERS for
the years ending June 30, 2010, 2009 and 2008 were $ 1,148,602, $ 1,183,664, and $ 1,504,768, respectively.
Those amounts are equal to the required contributions for each year.
RISK MANAGEMENT
Health insurance
The District is a member of South Central Trust for processing claims and obtaining reinsurance through
commercial insurance carriers. The District has reinsurance for claims in excess of $ 125,000 specific (per
person). The District has a maximum lifetime benefit of $ 5,000,000 per person. Financial statements of the trust
are provided to member districts. District transactions with the trust were as follows:
Cash balance in the trust -beginning
Payments from the District and its retirees
Benefit claims paid by the trust
Stop loss premiums and commissions
Administrative and other fees, net of interest earned
$ 1,150,845
4,926,644
$ (4,189, 571)
(131,829)
(29.687)
(4,351.087)
Cash balance in the trust -ending
Prepaid health insurance
Amount available for accrued benefit claims
The amount available in the trust was as follows:
Accrual for benefit claims incurred
Accrual for health insurance coverage on payroll payable
Amount available for accrued benefit claims
1,726,402
(740,000)
$ 986.402
$ 532,562
453,840
There are various methodologies for estimating a reasonable level for claims that have been incurred but not
reported (IBNR). District management has selected the methodology of approximately '60 days of paid claims'.
District management believes this methodology provides an adequate amount for accrued claims.
FS-32
MECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 2010
RISK MANAGEMENT (Cont'd.)
Other insurance
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.
For workers' compensation insurance, approximately 80 Districts participate in a public entity risk sharing pool
(School Districts Insurance Consortium) 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.
COMMITMENTS AND CONTINGENCIES
Other commitments and contingencies
The District's collective bargaining agreement with its teaching staff expires June 30, 2013.
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 also audited by the State's Department of the Auditor General. Findings, if any, from these audits
could result in the repayment of funds, or receipt of additional funds.
The District participates in state and federal grant programs which are governed by various rules and regulations.
Expenditures charged to these grant programs are subject to program compliance audits and reviews by the
grantor agencies. The District is potentially liable for any expenditures which may be disallowed by the rules of
these grant programs. The District does not anticipate any material disallowance of program expenditures.
SUBSEQUENT EVENTS
In September 2010, the School Board awarded bids related to the District's Middle School renovations and
additions project totaling approximately $ 3.5 million.
FS - 33
I~ IAN 1~ ~O)NON ' O)1~~~'r Mtnrtp ' O)tn0~ eF f~ ' O 1~ O ~
> ~ N CO N O ~~ M~~ to M V~ N ao t0 N CO N h N f~ r~ O I~ O ti
L
~ ' ~ O ~ O r In ~ CO O N O N ~ M fp V h 01 r f~ ~ Ln O) (~ ~ In O) In ~'
~ O ~ N C'7 ~! I~ a0 ~ Ch ~ d) ~ to C'7 (V M O r ~ (O C'7 to 00 ~ O ~ ~
.
-p ~ M tD O W N N~ M CO O t!•) r N CO CD er ~ O O O
~mZ V ~N N TM Mr Or N h In t0 (~ N
M M M ~ O
C
(0 f6 >
•~ C
._
_
~
>
O
0_ 69 d4
to 61 O) ~ M(01~OOf0ON O V'CD I~V'O ' r O
O ~ O N ' OD O) h
1~d7Ntn to _
MI~OO)aDr COO Mtn f~I~~N O~M a0 I~ M M O O
j O O OCO O COOI~COrrNO~OO torMfDO O O ~ CO M a0 N
° O M O V' CO r CO M GO ~ M Op f~ ~ ~ O O 00 N 119 lO 00 r O ~ O O OI CD
E COMMO N O rN O ~OOMO)tnN M eroor
~ O O co ao
Q ~ f~ O M CO N ~ (O ~ N ~T to to f~ ~ r r I~ ~
CO CO O (O M O M
r
.- O O)CO rNN Mr O) CO N O ~
~
7 M
r ~
U
K3 fA
~ CO CO COO ~1'NCDCOrO)tnCpCp~Ttn~-NLnM ' OCOOIn 00 M NO O O O
N N I~ N LL)
CO N ~t O r (O O I~ ~ CD I~ N ~ 00 I~ CO O to to tD O N ~n
M CO ~t ~ ~ r O M O) ~- r CO O O O) ~ ~ to O ~ d)
CO M O
OD to M
CO CO
M M
I~
.o I~O)~M CO Of~t~~F~tMaOCOr• MO)~~ N~-N~n O
' r 00 N CO
N CO N M O Cp r r C0 CO
CO N h Cp 0 M CO ~n O et O CO N V
• Cp r to
`
' O 00 I~
Q m r (O O O CO ) r r Ql to M
O O N e! CO to t[) t0 CO In r tt ~ CO
- N M r
m (Dr~.- O CO rNN ~r to ~ C~ ~ M
~ M ~ N V' ....
Q C
~
V ~ ~ ~
~z
U) 0 '
' O O O
(~
W Z O
N CD a0 O O) r
Nf~raD tD O CO CO
~ O ~ CO ~ N to M
CD O O 1~ O
rCOOI~~ fpNM O~COO t[) V'~OaD O ) O) O
Q Ur
r
~
CONt7N tO
NM~tnC NMI Mr000C00 Ortnr r ~ tC ~ ~ M ~
~
O
~ i~Otn a1 r CA~~~~ ~N~ MO1 'ct~ MN1~ to CO. ~O N O
-N
J Q
J m NCON N M
rCpOln M NI~hCOO d'aoOtn~OtDNd' ~MrO O
OCON V'fp tn~COtotnt~tC'1rr O~ to M ~ O~ O
N O
M r
_
O ~ ~rN
o NCO rCV N yr r tri
O ~ M
~ M
V ~
r ' v v
WW •rn
UQW~ ~ ~ ~
W~
Qp
~~~z
Q~i--W
~ U ~
C9zaQ
~WOw
d ~
mwaW
Vviw~
c~
O
= j m
UW
W ~
~ w
O
H
z ~
w
w
a
Q x
H °
~ `N
0
C N
~
~
f6 C
~. N
to O
N N
E m "'
O
~ O` c c to ~ V ~~ N
~
rn
'
o ~ m c
° ~
~ c NN
~
m
mo
~ ~ v
E E
o ~ °~- m E o° m ~•Z m ~
° ~a~
~s Z ~ c c
~ v, u~ ~~ rn
rn ~avU a ~ ~' o c ~ •`°- o w •> w p
X ~ o°~ c a°i c
m
~ ~ ~ v°, °-a~
•~r
~.. `~ ~
°
N
~
°
~
~ ~` ~
0
o
~ ~
in m u
rn
a~
i
i
~
a
a
i o
o . '- ~
~ x
w
d ~ a~ a~
a"'ic16ic~i~'v
~° 'm~cfOitE~a~~E n•n~~c°o~Ea~
o~
w
°
~
°
~
o mc~
c~ m m m
m
°oo
~~.~v~~ oma~
a~
o
o--
°
v>>
-
v
~mv»O
Uao_5¢amOcnUO~inUUa 3
`'f-m °
~ ~ ~
. ~ ~
N
~ X
W
O N
Z 7
lt. 7
lL
r
O
, MECHANICSBURG AREA SCHOOL DISTRICT
OTHER POST EMPLOYMENT BENEFIT PLANS
JUNE 30, 2010
HEALTH CARE BENEFITS
SCHEDULE OF FUNDING PROGRESS
Actuarial UAAL as
Actuarial Actuarial Accrued a % of
Valuation Value of Liability Unfunded Funded Covered Covered
Date Assets (AAL) AAL Ratio Payroll Payroll
July 2008 $ - $ 1,288,868 $ 1,288,868 0.00 $20,610,024 6.25%
The District is required to have an actuarial valuation at least biennially (every 2 years). If the plan experiences
significant changes, a new actuarial valuation should be performed rather than waiting for the next scheduled
valuation date.
Because the year ended June 2009 year was the implementation year for GASB 45, and the District chose to
implement prospectively, the above illustration does not reflect similar information for three consecutive
valuations.
ORI - 2
O '
0 O
0 ~
0 ~ O
O O
O
0
0 0
0 0
0 00 a
D
~ ~ ~ N N
' d' ~
~ (O CJ ~ LL
) r (p
K3 (f} EA fA
00 00 00 00 ' 00
V7 ~ ~ ~ ~ D)
~
~ 00 00 00 OD 00
M M M M M
U
Q
d'3 b4 6R d9
a
C ~
O i~
CO ti
(O ti
(D ~
(D
++ 7
U LL O O O O O
+`'.. ao
M 00
M ao
M O
M O
M
_N U
~ ~ r r r r r
Q EH ER 69 ER
V ~
~ ~ O
0 ~'
.r Vl O O O
J Q
om O
~ O
~ O
v O
v
- H~
t
W
0 =
_ ~_ ~ ~ ~ c~
V u- o
~ o
W ~
~ ~
~
W o ~
~ 2 M
fn W
Q W Z a
~ c y
a ~
co
co
cfl
co
~
~
~ Z ~ ~ c
m Q O Z Efl ~3 ER ff3
~ m `
C7
U ~
a
Z
Z Z ~
~ ~ ~~
~ ~-
o r
O r-
O
0
O a
o
V o ~ ~F-
U
~ w
~ ~ ~ ~
.~`
.
~
m
~ a
~
c c v7 w
~
~ ~ ~
N ~ ~
_
~ ~ (C N N N
U O ~ C .Q
~
U ~ ~
t0 L
N ~ .~ ~
C f0 ~ f0 ~ (0
f6 3 ~ O ~ T
L
O
fA U
U Q
~
N
= ~
~~
to
~ ~
~ :a
cu
~
Q J L.L
MECHANICSBURG AREA SCHOOL DISTRICT
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE -ALL TRUST FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Revenue and other financing sources
Investment income
Contributions
Total operating revenues
Operating expenses
Scholarship awards
Total operating expenses
Operating income (loss)
Transfers to (from) trust accounts
Net income (loss)
Reserved fund balance, July 1, 2009
Reserved fund balance, June 30, 2010
Expendable Non-expendable
Trust Trust Totals
$ (74) $ 387 $ 313
26,507 1,700 28,207
26,433 2,087 28,520
24, 801 1,950 26,751
24,801 1,950 26,751
1,632 137 1,769
1,632 137 1, 769
86,259 60,977 147,236
$ 87, 891 $ 61,114 $ 149, 005
SI - 2