The URL can be used to link to this page

Home My WebLink About06-0106 . 0(.,- l()/P . . . EAST PENNSBORO AREA SCHOOL DISTRICT FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2005 . . . . . . . C;u~CT&..~ . . TABLE OF CONTENTS . INDEPENDENT AUDITORS' REPORT I . MANAGEMENT'S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS District-wide financial statements . Statement of net assets Statement of activities Fund financial statements . Balance sheet - governmental funds Reconciliation of the governmental funds balance sheet to the statement of net assets . Statement of revenues, expenditures! and changes in fund balances - governmental funds Reconciliation of the governmental funds statement of revenues, expenditures, and changes in fund balance to the statement of activities . Statement of net assets - proprietary funds Statement of revenues! expenses, and changes in net assets - proprietary funds . Statement of cash flows - proprietary funds Statement of net assets - fiduciary funds NOTES TO FINANCIAL STATEMENTS . BUDGETARY COMPARISON INFORMATION - GENERAL FUND . Page Number IAR - 1 to IAR - 2 MDA - 1 to MDA - 8 FS-1 FS -2 FS - 3 FS -4 FS - 5 FS-6 FS-7 FS-8 FS-9 FS -10 FS - 11 to FS - 26 BCI-1 . . . . . . . . . . GREENAWALT & COMPANY, P.e. CERTIFIED PUBLIC ACCOUNTANTS JAMES E. L YQNS HOWARD R. GREENAWALT CREEDON R. HOFFMAN DEBORAH J. KELLY 400 WEST MAIN STREET MECHAHICsaURG, PEHHSYlVA.HI'" 17055 (1171766,4763 FAX (717) 766.2731 62 WEST POMFRET STREET CARLISLE,1'A 17013 (717)243-4822 FAX (717) 258-9372 R. A. GREENAWALT (1956_1983) A. A. REIDINGER (RETIRED) C. EDWARD ROGERS, JR. INDEPENDENT AUDITORS' REPORT Board of School Directors East Pennsboro Area School District Enola, Pennsylvania We have audited the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of East Pennsboro Area Schooi District as of anel for the year ended June 30, 2005, which collectively comprise the District's basic financial statements. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior year summarized comparative information has been derived from the District's June 30, 2004 financial statements and, in our report dated September 23, 2004, we expressed unqualified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information. 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 opinion, In our opinion, the financ'lal statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activitie's, each major fund, and the aggregate remaining fund information of East Pennsboro Area School District, as of June 30, 2005, and the respective changes in financial position and cash flows, where applicable, thereof and 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 October 18, 2005, on our consideration of the East Pennsboro 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 . MEMBERS __ AMERlCAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS -- PENNSYLVANIA INSTITUTE OF CERTIFIED PUBLIC: ACCQUNTANT'-; . Board of Directors East Pennsboro Area School District . . Management's discussion and analysis on pages MDA - 1 through MDA - E: and budgetary comparison information on page BCI - 1 are not a required part of the basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America, We have applied certa'ln limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it I . ~/ff/~,lc. GREENAW~ T'& COr/PAir, PC . October 6, 2005, except for paragraph 4 as to which the date is October 18, 2005. Mechanicsburg, Pennsylvania . . . . . IAR-2 . . . . . . . . . . . . EAST PENNSBORO AREA SCHOOL DISTRICT ENOLA, PENNSYLVANIA MANAGEMENT'S DISCUSSION AND ANALYSIS Our discussion and analysis compares our financial position at June 30 of 2005, 2004 and 2003. It also provides an overview of our financial performance for the two years between these periods, fiscal years ended June 30, 2005 and 2004, in accordance with governmental reporting requirements. Please read our discussion and analysis in conjunction with the District's financial statements, which begin on page FS..1. FINANCIAL HIGHLIGHTS . There were no unanticipated events during the year that significantly impacted our finances, and our financial position improved slightly. Our total revenues for 2005 were in line with our budget, and fully covered total expenditures. . We used capital funds to complete Phase I construction at the Middle School that included the LGI, natatorium, gym and natatorium locker rooms, intercom and sound system, and finishing of the concrete fascia beams on the exterior of the building, . We issued $3.5 million in new bonds in conjunction with scheduled redemptions of $2.2 million to lower our overall cost of financing, and provide funds for completion of Phase II construction at the middle School. . We have started Phase II construction at the middle school that will involve $1.4 million in renovations including floor coverings, lighting, library renovations, and ADA compliance improvements, This amount has been fully funded. . During 2005, we benefited from the growth in real estate through inc:reased revenue from real estate transfer taxes. USING THESE FINANCIAL STATEMENTS This report consists of a series of financial statements. The Statement of Net Assets and the Statement of Activities (on pages FS-1 and FS-2) provide information about the activities of the District as a whole, and present a longer-term view of the District's finances than Fund statements. Fund financial statements are on pages FS-3, FS-5 and FS-7 through FS-10. For governmental activities, these statements tell how District services have been financed in the short run, as well as show the amount remaining for future spending. Proprietary fund statements provide information about non-governmental operations, in this case food services. Fiduciary funds statements report funds held in trust by the District for such things as scholarship grants. The Reconciliation of the Governmental Funds Balance Sheet on page FS--4 connects governmental fund balance to the total net assets balance from the Statement of Net Assets. The reconciliation on page FS-6 does the same for the components of the changes in fund balances. Reporting the District as a Whole The statements present financial activities and the results of those activities in two categories, Governmental and Business-type, Capital assets (land, buildings, improvements, furniture and equipment) are presented with all other assets. Long-term debt is presented with all other liabilities. This is distinctly different from the Fund statements in which assets and liabilities are separated into various funds such as General and Capital Projects. The approach to measurement of revenue and expense is similar to that used in the private sector and is referred to as following the accrual basis of accounting, This is discussed further in the notes to the financial statements. MDA-1 . EAST PENNSBORO AREA SCHOOL DISTRICT ENOLA, PENNSYLVANIA . Reporting the District's Most Significant Funds The funds statements provide financial information about the District's significant funds rather than the District as a whole. There are three fund types, Governmental, Proprietary and Fiduciary, The use of each type of fund is described in the notes to the financial statements, Unlike the financiai statements that measure revenues on the accrual basis, the funds statements report revenues only to the extent cash has been received, or is expected to be received in the near future. . The District as Trustee The district acts as fiduciary for a Students Activities fund. In comparison to the Governmental Funds, the amount held in the fiduciary fund is small. The fund baiance assets are presented on page FS-10. . THE DISTRICT AS A WHOLE Table A-1 summarizes and compares the Statement of Net Assets from page FS-1 of the financial statements for each of the past three years, We have brought forward the 2003 balances from our 2004 MD&A. These balances are otherwise not a part of the 2005 financial statement package. Within this and certain other schedules in our . discussion, we have presented the dollar figures in thousands, unless otherwise indicated, to make them easier to read. This has resulted in rounding differences, and some columns may not add within a schedule. . Tabie A-1 Net Assets June 30, 2005 (in Thousands) Governmental Business-type Activities Activities 2005 2004 2003 2005 2004 2003 Current and other assets $ 9,703,8 $ 6,603.0 $ 6,339.1 $ (51,5) $ (49.5) $ 62.1 Capital assets 40,696,8 41,053,6 40,691.9 152,2 183.5 387,9 Total assets $ 50,400,5 $ 47,656,5 $ 47,031,0 $ 100.7 $ 134.0 $ 449.9 Current and other liabilities $ 3,266.5 $ 3,301,9 $ 2,3860 $ 47,1 $ 41,0 $ 140.1 Long-term liabilities 42,039.4 40,501.7 41,753,2 Total liabilities 45,305.9 43,803.6 44,139,1 47.1 41.0 140.1 Invested in capital assets (net of related (840.1) (34.5) (1,163.1) 152.2 183,5 387.9 debt) Restricted for capital projects 3,430.3 1,372.5 2,563.7 Unrestricted 2,504.4 2,514.8 1,491.3 (98.6) (90.5) (78.0) Total Net Assets 5,094.6 3,852.9 2,891.8 53.6 93.0 309.8 Total liabilities and net assets $ 50,400.5 $ 47,656.5 $ 47.031.0 $ 100.7 $ 134.0 $ 449.9 . . . . Net assets are the difference between total assets and total liabilities, andl represent resources that can be used to pay for future operations and capital improvements. The bulk of our assets are capital assets. These have been paid for using borrowed money and do not add significantly to our net asset value. The restricted portion of net assets represents cash and investments that can only be used for buildings and improvements. The remaining restricted fund balance will be used to fund future capital maintenance projects such as new roofing, Our current and other assets have increased by $3,098,731 from 2004 to 2005. The increase is almost totally related to Governmental Activities, with $1,047,338 due to an increase in our taxes receivable. . MDA-2 . . . I. . . . . . . . EAST PENNSBORO AREA SCHOOL DISTRICT ENOLA, PENNSYLVANIA The rest relates to growth In our restricted cash balances and investments held for future construction. The cash balance as of June 30, 2005 within Business-type Activities is $100,885, but due to the elimination of internal balances, the "Current and other assets" group is showing a negative balance of $51,522. Table A-2 summarizes and compares activity presented in the Statement of Activities (page FS-2). It shows the activity behind the increase in total net assets over the year ending June 30, 2005. Table A-2 Changes in Net Assets Year ended June 30, 2005 (in Thousands) Governmental Business-type Activities Activities Revenues Program Revenues Charges for services Oper. grants and contributions Capital grants and contributions General Revenues Taxes State general subsidies Other Total Revenues Direct Expenses Excess (Deficiency) before Transfers Transfers Special item-change in accounting Cl1ange in Net Assets 2005 $ 463.8 $ 3,160.4 696.6 20,396,1 3,992.2 323.2 29,032.3 27,785.0 1,247.4 (5.7) $ 1,241,7 $ 2004 374.9 2,722.0 490.5 18,591.5 3,861,8 270,0 26,310.7 25,824.6 486.0 (3.5) 478,6 961.1 2005 $ 705,1 $ 305.2 2.9 1,013.3 1,058.4 (45,1) 5.7 $ (39.4) $ 2004 653,2 262.0 1.0 916,2 963.2 (47.0) 3.5 (173.3) (216.8) Total Primary Government 2005 2004 $ 1,169.0 $ 3,465.6 696.6 1,028,1 2.983.9 490.5 20,396,1 3,992.2 326.2 30,045.7 28,843.4 1,202,3 18,591.5 3.861.8 271.0 27.226,8 26,787,8 438.9 $ 1,202.3 $ 305.3 744.2 Revenues during the year increased more than expenses, resulting in an excess of $1,202,317. The increase in revenue is almost entirely related to a 9.3 percent increase in real estate taxes and a 17.1 percent increase in earned income taxes. During 2004, we completed a fixed asset inventory and analysis project. In addition to improving our ability to track and monitor our fixed assets, the results had a favorable impact on reported asset values. Prior to 2003, many of our equipment and library items were not reported in our financial statements., We hired an independent appraiser to determine the estimated historic cost of these items, and adjusted our accounting records accordingly. Governmental Activities Table A-3, shown on the next page, presents expense information from the Statement of Activities for governmental activities. The total cost of services represents 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 total net cost of services of $23,464,158 must be recovered through gleneral revenue, primarily taxes and state subsidies, Amounts not recovered will reduce funds available for future yeal"s. The total net cost of services was 5.5 percent higher than the previous year, almost completely due to increased cost of instruction. MDA - 3 . EAST PENNSBORO AREA SCHOOL DISTRICT ENOLA, PENNSYLVANIA . Table A-3 Governmental Activities Vear ended June 30, 2005 (in Thousands) Total Cost Less: Program Net Cost . of Services Revenues of Services 2005 2004 2005 2004 2005 2004 Classroom instruction $ 17.011.3 $ 15,369.7 $ 3,010.3 $ 2,441,7 $ 14.001.0 $ 12.927.9 Instructional student support (Note 1) 2,732,2 2,626,8 191.6 137.8 2,540.5 2,489.0 Administrative and financial support 2,458,7 2,565.6 65.3 67.4 2,393.4 2,498.2 . Operation and maintenance of buildings 2,423.2 2,377.4 61.2 60.6 2,362.0 2,316.8 Student transportation 1,021.8 792.7 339.5 330.5 682.3 462.2 Extra-curricular student activities 620.3 551,2 67.1 58.7 553.2 492.5 Community services 26.5 31.4 26.5 31.4 Interest on long-term debt 1,491.0 1,509,8 585.9 490.5 905.1 1.019,3 . Total governmental activities $ 27,785.0 $ 25,824.6 $ 4,320.8 $ 3,587,3 23,464.2 22.237.3 Less state general subsidies 3,992.2 3.861.8 Total needs from taxes and other local sources $ 19,471.9 $ 18.375,5 Note 1: This item represents such things as the library, school psychologist, etc. . Classroom instruction costs for 2005 increased by $1,641,611 over 2004. A third of this related to wage increases of 3.75 percent. The remaining amount related to increased staff to accommodate growth in census, and new programs such as full-day kindergarten. Over half of the remaining amount was covered by a $568,514 increase in program revenues. . Business-Type Activities Table A-4 is similar to the previous table, except it presents business-type service costs. Note that almost all of the cost of food services is paid by program revenues. Table A-4 . Business~Type Activities Fiscal Vear ended June 30. 2005 Food services Less; Investment earnings (in Thousands) Total Cost Less: Program of Services Revenues 2005 2004 2005 2004 $ 1,058.4 $ 963.2 $ 1,010.3 $ 915.2 $ Net Cost of Services 2005 2004 48.0 $ 48.0 2.9 1.0 45.1 $ 47,0 . . Total business Type activities $ There were no significant changes during the year with the net cost of services remaining about the same in 2005 as in 2004. . MDA-4 . EAST PENNSBORO AREA SCHOOL. DISTRICT ENOLA, PENNSYLVANIA DISTRICT'S FUNDS The information in Table A-5 summarizes and compares the Governmental Funds' Balance Sheet for June 30, 2005, 2004 and 2003. Note that we again brought forward 2003 balances from our 2004 MD&A. This information is not otherwise a part of the 2005 financial statement package. The groupings are the same as those used in the Statement of Net Assets, . . Table A.5 Comparative Fund Balances (in Thousands) . 2005 . General Fund Restricted Unrestricted Total General Fund 1,076.3 1,076,3 $ . Capital Projects Fund Restricted Unrestricted Total Capital Projects Fund 3,039.1 3,039.1 Special Revenue Fund Restricted Unrestricted Total Special Revenue Fund 316.4 316.4 . All Governmental Funds Restricted Unrestricted Total All Governmental Funds 3,039,1 1,392.7 $ 4,431.8 $ . June 2004 $ 1,211.4 1,211.4 1,003.6 1,003.6 1,003.6 1,221.6 2,225.2 2003 $ 768.1 768.1 2,379.3 2,37'9.3 10.2 10.2 34.7 34.7 Change 2004 - 2005 2003. 2004 Change $ (135.1) (135.1) 2,035.5 2,035.5 306.2 (306.2) 2,035.5 171.1 $ 2,206.6 $ $ 443.3 443.3 (1,375.7) (1,375.7) (24.4) (24.4) (1,375.7) 418.9 ('956.8) As previously mentioned, the basis of measurement for fund assets and liabilities is different than that used in the Statement of Net Assets. The differences between the total governmental fund balance of $4,431,792 and the total net assets of $5,094,639 are itemized in the reconciliation presented within the financial statements on page FS-4. . The items that caused the change in fund balance during the year are presented in the Statement of Revenues, Expenditures and Changes in Fund Balances within the financial statements on page FS-5. The fund balance increased by $2,206,556 because the total fund revenues were greater than the total fund expenditures, . . MDA-5 2,37!~.3 80:2.7 $ 3,18:2.0 . EAST PENNSBORO AREA SCHOOL DISTRICT ENOLA, PENNSYLVANIA . General Fund Budgetary Highlights Table A-6 has been summarized from the comparative budget information presented on page BCI-1 of the required supplemental information. The total variance was favorable in that we budgeted that total expenditures would be higher than total revenues by $225,274, when in fact our total revenues exceeded our expenditures by $96,563. . Table A-6 Comparison of Budget to Actual For the Year Ended June 30, 2006 and 2005 (in Thousands) Total revenues Total expenditures Revenues over (under) expenditures Other financing sources (uses) Net change in fund balances $ Budget Actual Variance 2005 2004 2005 2004 2005 2004 28,110.5 $ 25,992.6 $ 27,940.3 $ 25,772.5 $ (170.2) $ (220.1) 28,335.8 25,714,0 27,843.8 25,415.9 492.0 298,2 (225.3) 278,5 96.6 356.6 321.8 78.1 (565.7) (553.5) (2,'1.6) 86,7 334.1 640,2 (791.0) $ (275,0) $ (1115.1) $ 443.3 $ 655.9 $ 718.3 . . $ . CAPITAL ASSETS Table A-7 summarizes the Changes in Capital Assets note to the financial statements on pages FS-19, The original cost of the capital assets on the books at June 30, 2005 was $59,753,668, Each year, for capital assets other than land and construction in progress, this amount is depreciated (reduced in value) to reflect usage. The net balance of $40,696,789 is the amount remaining after this reduction, As construction projects are completed, related construction in progress balances are moved into the buildings and improvements category, and depreciated over the estimated useful life of th e improvement. . Table A-7 Governmental Activities Capital Assets Comparison (net of accumulated depreciation) (in Thousands) . Land Construction in progress Buildings and improvements Furniture, fixtures. equipment and library books Total Capital Assets, net of accumulated depreciation 2005 $ 325.8 480.8 37,598.7 2,291.5 $ 40,696.8 June 30 2004 $ 325,8 2003 $ 325.8 . 37,837.8 2,890.0 $ 41,053.6 37,837.9 2,528,1 $ 40,691.9 DEBT ADMINISTRATION . Table A-B, shown on the next page, summarizes the Long-Term Liabilities note to the financial statements on pages FS-20 to FS-23. Most of the debt relates to general obligation bonds issued by the District to pay for capital improvements, Our ability to raise future funds through the issuance of dee,t depends on how well our existing bonds are rated by the investment community. Currently, the District is rated by Standard and Poor's as AAA . MDA-6 . EAST PENNSBORO AREA SCHOOL. DISTRICT ENOLA, PENNSYLVANIA . Table A-8 Governmental Activities Long-Term Liability Comparison (in Thousands) . General obligation debt Capital leases Compensated absences Unamortized bond premiums, discounts and refunding Total Governmental long-term liabilities 2005 $ 42,310.0 15S.0 29ti,8 (721.4) $ 42,039.4 June 30 2004 $ 40,985.0 103.0 214.7 (801.1) $ 40,501,7 2003 $ 41,855.0 204.3 (306.2) $ 41,753.2 ! . Each year, the District pays interest to bond holders and pays down a portion of the outstanding debt, referred to as redemption. The increase in general obligation debt was the result of adding a new issue, Series A of 2004 in the amount of $3,500,000, netted against scheduled redemptions of $2,175,000. . Next Year's Budget Table A-9 compares the revised budget for 2005 to the 2006 budget that wals approved on June 9, 2005, Table A-9 Comparison of Budgets For the Years Ended June 30th, 2006 ancl 2005 (in Thousands) . Total revenues Total expenditures Revenues over (under) expenditures Other financing sources (uses) Net change in fund balances $ $ Change 2006 2005 Dollar % 28,820.7 $ 28,110.!i $ 710.2 2.5% 29,512.8 28,335.0 1,177.0 4.2% (692.1) (225.:l) (466.8) N/A (372.8) (565.7) 192.9 N/A (1,064.9) $ (791.0) $ (273.9) N/A . . Total expenditures are budgeted to increase at a much lower rate than the, previous year's budgeted increase, The 2005 budget reflected planned staff increases, while the 2006 budget anticipates the retirement of 18 teachers. . . . MDA-7 .,-0 ~~~~M~~ ~ ",,,, ",,,, \OOr-I.O<r(:O..... ..:f")0) r---. 'i'> ~N .; 0- r--- .,- .,- '" '" !!!. % I- ",,,, .-t-~(,Om"--O '" ~'" ;e.ffi~~~$~ ~- 0'" c<1~ oil.C'i~6cD0~ ~ '" .,-'" ~ ..-~~g g 0 0'" 'i'> c-i~ t<5 ~ g '" '" tg~tn~ g, '" "' t-l.Oot- ?o '" g r-:ct5c-i..f " "' :2 r--- ~ ~ ~ :\\ ,. ~ CO ~ u,...c:4C OlD u: ell \;t '<l en I- ~ Z (/l 'C m E B. % I- (/l (/) ,s 4. '5 uJ ~ . . "' . !!! 0 '" Q " 8 CO " $ J . CO '" ~ $ 'a CO " '0 <Ii - ,. " "5..s g~ JZO . '" '" B ,% '" Q CO " '" ~ JZ'" '" ~ '" "' !!!. ()I- " ~ ... $ CO " to CO <; '5 '" "''' a>~ ,s ,. o 'a; E Q g~ <; ,s o '" ?\ CO '" <Ii o <Ii CO ~3 ~D ~----------- o~~~ ,... <;; 8 ~ .,-",,,, '" ~ O' '" ~ ~~~ 0; !;fenoo "'~o '" .".:o:it6~ "'lo~ -i ~NO ~ Ci NC0~..;f r-- ("')0 ~ ",r---'" '" ..-~ t-. ~ ('.10 to ..-_ ("')~ -.I:f~ '" r---_ ~ ~ t"-l 0)-- ~ ~~~ '" ';i '" <f> <f> .......("')\[)("\I ('.\ t- iD .,- G((l"- ~ '" ('"}0:>0)01 0'.1 t- en 0 .,-",,,- '" (".10"'-"- 0'.1 r- (f':J 0 ",,,,r--- "'. I[) 0) t'ir-: r-~ C"i ~ '" r-:ciui .,; ~ ..-U)N"- r:J:.1 t- C'l og $~~ .,- g "--,<.0. 1.0 l!'1 ..- r- ~ . -~ ~ ~cr>c-J .0 <:5 ~~ C'-\ 0 .,. '" '" <f> '" <f> '" '" $ .,- <'> %. '" $<'> 0 ~ '" ~ N ~ $ '" '" '" '" <'> r--- ~ .,; j; <:5 ~ g .,; .,; r--- '" .,- qo 0 ~ ~ ~ ~ ~~~~~ W(J).....CO 'if % (')to/.OC'l. .,-1YJt-"-1O (f)t-l.D'<'"'" '" $ ('.i~,...:~t<1 c5wr.6ci g " .q1.Ot-0'l C')OOO1 % ~ 0')\.0..-(0 q-{'4tP<O .,. ". ~C'5 c <f> t-C0(".lN 1>cg~~ <ocr)crir-: t-l.0..-....... 0.<.0, If) ~~ <f> " o .~ '0 " 0- ~ '" S "' -S to " g '" CO o '" " " ~ CO '0 g ..... -0 ~~ .e $':::: $ '" ~ ~"u"% <) ~ (Q g?\&-O tl>c"'O€. ~~~~ .s ~.- ~ ",.<!! ~ ~ ~ -g '0 "m .c,gc.o ~"O~.lB ,&;~$~ "%Q%ii Q)~(l)o.O- s~5~(5 $ " '1,\ '" <Ii -0 I- C'l.t-~b ~..~~(J) r---",C'i"-=I.ri \O';:~~ NO---lri " .,- " ~ iO !!! 0- .g ~ iO CO 0- E .\'l CO <1l ~ ~ 0 $~E1h ~~tUe ~-o~~ .$ ~"O ,;; c:,;;;;Q}~ ~ 0 ..... ::I (fl 0 '- Q) 'G g~r8.';t ".g .~ t=1D 0 0'1 ..n(")IDc:0 ot"'>t"'>lD oo~...:i .qt')oO> tO~\.Oo -0NJt) .\'l S '" CO '6 ~ l' '<l CO '" -E " g '" '6 ~ "' " ~'E " l' CO 0- 0", CO CO .. 0 .:;..ol/l ~~e o N .- E:e~ ,;: % ~ Q)ro$ " CO 0 p:Ol- m '" '" " " CO "@~ ~:t ; .~ E" ~6 6> CO :0 <f> 'i -8 '" S $ l' '0 <ii '" SU m ^9L Q) e '" <>- "'- ..s 10"0. ~ ~ g-~ " 0 .S ~ '" <J) $~ ~~~ ~ ::> Q} c. <t6.sO::::J <ii :z 'if '" Ci <;if Ci '" <f> <ii '" CO ~ro 'c:. "'0 ;;;1- l'- ~ '" ~ $ " '" '" "' <ii CO '" CO '" '" " ~ ~ 'E o I- ~ \ if) u- .\'l CO (\) to ~ -.; 1ii '(3 C '" C <<= (\) '" " ~ 0 ~ 0- 1\\ 0-. .2l .S C '" ~ '" '" ~ C Ol .S C '" g S Q '" (\) s:. ;-- . . . I . ~ .... o o '" .... ci U ~ It: 5 .... ...., ~ L()-g C 0-0 o e ..J ",w OOO6(ij o\!:!C"l" J:t:w>- u~~~ Inf--~- ()....,~ <(<(02 Wu-wc It:O~,g <{f--w'" o[io::~ 1t::::;;<{'E Ow~- f-- OJ llJ <{ w'o Inf-Ie Z CIl f-- OJ Z o::~ W ~-o ll.. " .... N en .~ <{ E W E :> CIl .!: ~ . . . . . . . '" a; ~~ <{ '" - 0 ~f- .S '" " "' co 0 c 0 '" N .c II ." C '" Q) ~ Q) c c. ~ ~,~ " "'- n:: (/J'S;: _Cl)~ a: .~ <: c ~ 8.'" x ~ wro ZCUl E~ c: .:;: (u '15 i';<( (9 ~~ .Q 'Q. S '" -"U .C -C o "'ll Q)." ~ C :u t'tI g' iV2~ ~ ~ Q) E ~ c. ~(!)o o 0: ~ o N ;;;-OOa;-;:-SNCO~G' &1 t'1rom(oNU"l~(oCD M Q)o>~r--.N'Il::to:::tNN 0 r--.-aia:iWN-NT--air--.' as ~~~M~~~O~ ~ NNN"N"-- ~N .......--- -~ '" ;:-G'LOr:::-~ON:;;ro ~ ('I')~vN-.;;tU)Nml.O ..;t aLOvOM"-IOO..- 0 .......-OM-NNC"'fwl,{)h-.;f cO 8;1;~~ffi~~g~ :!- -o:iNN-N-- -r:ri .....--- ~ '" '" ;::-i:Oli1r::-:;;;:-SN':;;oo g~~~~~~~~ ..--OM-NNr0cOu)'<:(" ovmlDCOLONO<O OIOC"')('I')(Olt)---O>'<:f ~NNN-- -ri ~--- t!.. '" '" "' co c:i ~ ~ '" "''''- ~ N "' "'CON N~r.ri ~"'CO "' ~ N '" CO"" 0 '" .... "' "'.... c0 oi J"-" C"l'" '" ~ S '" 1l .~ Q) Ul CO N N r--: N "' CO ID "' '" '" Q) ~ '" .c II '" ~;1; "'"' i.00 "'''' ",CO N ;0: g ~ ri .... C"l '" ci V ~ .... "' ri ~ '" u m ~ 1ii o~ w ~;!~~N~~~~ N..-<ONa)C\llflcnm ;~f;f~~~~!~faf;2;- Ol'-o;fVOID VI'- r-:NNN~ -r: N '" '" E '" a, o 0: U; c o U c :> u.. ~c c..!J! c.c. t~O o ro 1l 8:'0 c " c '" U) ~ ijj en El.;::cc;: ~ ~~'~~ID t5 (;)~-g5~ i c; ro'~ ~ g-'t5 'Eo5(;j.Qffi~ (l)t5U'C~~C:Q) E::l2'Ecvc.."O C~1ii-oa..::J2 lii.ss<CO[L(/) > o (9 '" ~ 'SO '13 :E '" Q)ro .,,-c ID E E ID U2E; .~ 6> ll.l ~ Q.l c > - U'J 0 0 0 Q) ~~!!:ro u 'c: 0 $ ~ '2: Et)~~~ E~ m-g o Q) Q) OE .stE '" " '" ;::- ~ .,; :!- '" ~ N ",' o '" CO N ~ .0 o .... N '" '" as "' o. r0- O) N '" "" N N ~ NIt)cr>T"" lO~rJ')(X) lOo>coro :g ~^ :g- ~ t-.....c.e..... Ci'i <<:t~ ~ "' o N N ~ "'. '" ~ r-1Ot-..... ~~~~ r-~ l.() N^ . COlOlO~ oco-o;tt\l ll'i<<:t^ ~ ;::- V o .,; :!- ro- '" ~ ~ ri ~ "'",0 "'....N O....N as ~ v~ "'CON ~"''''' (")^N^ N N ",..,.N ....N"' .q^ N '<t- """'- '" .... ri ~^ N .... .... '" N t-L{)t-v............Lt) O>'<t<<:tO)Lt)oq-l'-- O>Lt)l.Ovt-C\lU') r--Ll'iC\l.cci<<:t^N~ COL{)IOC"')COO)..... OCO"<tN 0)1'-- I.Ci -.:t^ c0 ~ ~ N '" Q) " '" '" c ~ (I) Q) ~ ctI :0 !l> ~ _ ~.oo - XQ) c:-gro !=1 E ~ (I) Q; E"'.~~c~~~ "C~Q)Oc:Q)~ -",Q) ~ Q; E..Q 0')0 ttimQ)m.c:ooQ)\\)1- ii5><C::wo~~:s a5 ~ c: 0 U) ~ .... '" "' ID '" CO '" ;;; CO .0 CO .... ri '" .... ~ as CO '" .... '" '" ri .... "' .,; N '" '" Q) " c Q) > ~ 13 ." -;;; '6 (5 o .c o '" ro o f- '" co <= .E OJ " IDCO N.... "'"' LO- 0> ON "'0 ri N .... .... '" N .... '" CO .0 ~ '" CO ~ I" ~ '" c g'~ E-g " '" h '" " .!:: a5 ~~ c '" i;i E f!!~ ~ '" <= '" ,:: ~ Q) <= Q) co ro 12-0 of- 8. (/J N N "' -.i ;: -.i N ;0: CO as ~ "' "' .0 o .... -.i N "' V N -.i .... .... .... '" N' o N. r0- O .... ci e '" N " .... "'- '" a; '" '" '" a; c .S Q) co c '" .c II .... CO CO o N ri "' 0; .0 .... '" ri '" 0) '" N '" CO '" N '" "' ri co c 'c: c '50 Q) -" '" a; '" '" '" a; z '" ~ '" .0 ;g; ",. '" N '" N as .... .0 '" '" '" '" ri '" '" '" '" CO -.i '" o '" '" N Ul LL co <= '6 e Q) vi 1: " E OJ 1ii iii m '0 c: OJ c: "" $ OJ .!: - 15 "t:: OJ 0- m 0, OJ E c: OJ OJ ~ OJ <J> " -0 c: Ol c: ';;' c: OJ 0- E o () () OJ " .!: f- '" a; '" '" '" a; z ..,. o o '" OJ) ~ o I- ~ b ~ C2. \'? 1-<fJ !a ~ g O? ~ ..Ju- :> 0:2. --> 01- (; ~m "C 0:;< ",.g (/lz.ol'l> c:(o:::\'?E WUl _0 ",,:;;OOe: ....0"'- 4.~Ul(ii O ' z."<3 I-?co ltUl--><g o Ul ~ CO:!: -0 (/l<fJ '" Z Ul .t:! ZO "' W~ C ,,--' c ... <( :> I- o:l <fJ (/l E 4. s W G- . . . . . .. O>-r"o<oC'l J,{)~o'C"'"""o ("')("')OLOO 6oollio ("')<.O~l'-~ ",..,.",..,. <""5N <It '" o \'? a>co<D\OO <DO'>COCO<r o:;rmr--r-LO c--i~~~t'i t-l.Or-CP ('0\D'-('I) ..nC"1 <It - '" ~~ .- '" ~(Il (5&. .....' o '" 6 ..- '" <It <> ';l ~ -E <( '" ..- '" u1 <It _$ III <> .- Q) ~'o oD: (ii ~ Q) co '" ~ <g '" 6 '" ..,. "" <It ~ '" ..- <6 <g <6 ",..,.", ",,,,,,, ..-(')..,. 0<<><0 ~",,,, o~ 1-_ ('l')_ ..-..-"- <It <It ~ ~ '" g ..,. 0> ....."'\1\ ~)g", <60><2.\ ....."''' 0"'''' ..-=-"-:N <It ..... o '" 6 ..- '" <It '" ..- '" u1 <It <g '" 6 '" ..,. "" <It O~<o"'O ~Q')"'C:O~ 1-O')t-"-l.O Lri~r--:~1:'"5 ~1.Of-01 wU>"-<"1 ~("'i '" ~ 6 '" ..... u1 <It $ $ co co '" ~ C ro~ c:. ::>' Q) (/) 4> 'S S~?" tJQ)"oOJ) Q) _ ...- 0') Q} J::. 1:> ~Q) ~Q):S OJ) '" '" m;>.s~> l.) '(1) 0 0 "ti} ~~%%~ ..ccll.t::..;:.:- cIl~G)aJ.2 (';$ ro::'>::::S ~ $01-000 ~ <It <It "" $ ?Ii OJ) '" ~ o I- '" \3i 6 <0 ..- '" o "" '" ~- ..- '" '" "" ",,,,<0 r1)~'" ",0'" l.Cia)m ~",,,, ",<0'" ";-N ..- '" '" "" ..... '" c c ~.o ~ :l 0.. -0 ~ ;~~-o c:c.-Q) to::10 t:. (/) 0 \....- Q) .'2 '6 ~~ ~<(o..O '1'> ro :::; --------------- <tJ'" ",,,, ","" ",<6 r-"- 0'" ..- ..- '0 ~ "" <g '" u1 ~ c--i co '" ..- .g '" '" "" '" '" r-_ ..- '" ..,. "" '0 '" 6 ..- '" ..... o '" 6 ..- '" '0 '" 6 ..- '" 1ft <0 ..- '" u1 <0 ..- '" u1 <0 ..- '" u1 ..- '0 0> '" o "" <tJ ~ '" '0. ..- OJ) Q) :e '1'> ro ~ o I- $-0 <> Q) OJ) ,~~ ~ e.~ .2 o...r;lJ Q) - '" - ~ ell -- ._ -0 -0 c:. ~c:cQ) o-;l~~ ,- ~ ~ - j2~~ro "0 't) Q) 'u a> .c ili (tJ ~{i)\9~ OJ) ~ Ql co o:::? r1) '" '" <6 ..... o. ..- <It <0 '" '" 6 '" ..,. "" "" '" ~ 6 '" r- u1 <It OJ) Q) <> c ro (ii 1:> -0 C " - -0 C ro (Il '" -g 'i ~ o I- ~ c ro (ii 1:> -0 C Z ~ o I- '" <fJ U- J!i co Q) C j!) ro in (ii "0 ~ co .co Q) OJ) Q) E '0 t ro ~ (ii '" j!) .S co ro Q) ~ ro OJ) j!) o co '" co "s;.. co ro ~ C S \i Q) J::. I- . EAST PENNSBORO AREA SCHOOL DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSi:::TS JUNE 30, 2005 . Total fund balances - Governmental funds I. I Amounts reported for governmental activities in the statement of net assets are different because: Capital assets are not financial resources and therefore are not reported as assets in the governmental funds. At year end, the cost of capital assets is $ 59,753,668, and the accumulated depreciation is $ 19,056,879 . Taxes receivable will be collected, but are not available soon enough to pay for the current year's expenditures, and therefore are deferred in trle governmental funds. At year end, these taxes receivable consist of: Real estate taxes Personal taxes Earned income taxes . . Certain liabilities are not due and payable in the current year, and therefore are not reported as liabilities in the governmental funds. At the year end, these liabilities consist of: Bonds payable Capital lease obligations Compensated absences Long-term liabilities Accrued interest on bonds payable . Costs related to the issuance of bonds are reported as expenditures in the governmental funds. At year end, the remaining unamortized bond related costs consist of: Bond issuance costs Bond discounts (premiums) Refunding costs . Total net assets - Governmental activities . . The accompanying notes are an integral part of these financial statements, FS-4 . $ 219,734 5,525 2,090,525 (42,310,000) (155,011) (295,758) (42,760,769) (517,122) 206,769 (34,405) 755,801 $ 4,431,792 40,696,789 2,315,784 (43,277,891 ) 928,165 $ 5,094,639 . rn 1---0""' 0> ;1;NtOO>O ~ N 0 0 0 Gin N CO ~ .... ..,. .... C!; (J)"l"'"Q(J) 0> ..,. 0 0 0 to 0> 0 '" '" ""' ..,. 0 a:>ONNf'-. ~ ~ 0 '" 0 '" ..,. CO 0 N "' 0 0 0;; "' o 'lt~ ~ ~>.-: '" ....- 0 ci 0 0;; <'i ill '" "' ..,. ~ ""' to 0 '" rn tOtO 0 " 0 0 '" ..,. .... ~ ""' CO '" 0 ~ to to ..,. CO LOLOVO ~ "'. 0 ~ .... e- ~ N 0 CO' ill "' "" I'-~ ~ ri .... ~ 0 ei: <'i '" N ~ N ~ '" ~ '" '" '" m . -0 f- .... ~ to to 0 .... '" '" ..,. ~ " ~ <:> " 0 ~ to to N 0 to N 0 0 N N N ""' .... 0 0 <:> '" 0 '" '" '" '" .... to ....'" 0 '" to "'. to ..,. CO CO <:> 00 to '" N ..... 0 ....- C"iu) ....- 0;; OCO "' 0 <'i ill 0 0)1.0 0 ill "' ;;; '" '" CO CO to to ~ ..,. 0 '" CO cD ~ <:> '" '" to 0 N 8 ..,. .... (")" 0 '" .... to "'. to " ..,.. <n ~ (") ~ N N ..,. <Ji ....- 0;; "' ....- ~ <'i .,; ~ <'i '" '" ..,.. N ~ N ~ N . '" '" .... .... .... 0 .... .... 0 0 0 0 0 0 '" '" '" '" 0 '" 0> ~ ~ 1: 0 ci 0 0 ~ ~ ~ a.'" (") (") (") 0 '" '" . N u& I- UJ ci 0 0 (") '" '" Z '" 0:: 0::> c Zu.. :J I- <(....l ...., !Q UJ~ -0 " " N N 00 0 00 ..,. to (() '" (") (") to to N 0 N " U; C ~z 0-0 '" '" to to .... 0 .... N o c !d .,; .,; <Ji .,; .,; "' :i 0 "' ..J:=;lWNW Q) " " '" '" ~ ..,. ~ . OJ-:;;6~ :E 0 oz(")m :;: :I: zffiw>- o ~> z '" '" '" lI) x o::>:S (9....,~ <UJ~la..g 00 w~UJ~c '" '" to " '" (() " " .... ~ (() (") (") ~ " N CO ..,. " '" ~ .... 0::::>wz2 CO cD "'. ~ '" '" '" " ..,. to 0 . '" "' "' '" .... ....- 0 "" cO "' <'i .,; UJ <t:zow'" '" t3 .... .... ..,. cD ..,. to " '" 0 '" u.. ~~~~I ~ Q) ". "'. ". ," 0 o. 0 a.._ '0 '" <'i '" 0 ~ ~ ~ uo:. o a:: III >- = .l'i lD ~ Cl w .!ll '" '" c lI) ZIO '" zJ-::>f-[ij E '" Z zu..a::_" ~ ;:::- - . wwzou.. .... ~ to <0 0 .... '" ~ 0 to .... '" " '" CO '" :;;-u..-o 0 CO N 0 N N ~ <0 ~ " (() <0 '" '" .... .... '" 1ii a.. w UJ '" .... '" .... '" '" '" '" cD '" '" ..... '" 0 <0 0 (")- N ro f-W N m 0 ~ '" "' 0 0;; "' a:i a:i '" '" ill .,; cO "' ~ ill I- ~(9 'C iD '" CO <0 " ~ g]. 0 " .... ..,. '" N <0 '" ~ .... "[i lI) '" c ..,. '" ..,. '" '" '" to cD ~ ~ ~ "'- o. c <t: UJ~ E '" .,; ....- ....- "' .... <'i ....- ~ '" (9 N ~ N C W I E "" 0 :J '" UJ '" '" '" ..c: '" . ~ :S '" '0 '" 1:: .a '" "- 'C ro c Q) co C, a. c -;;;- 1ii >< '() Q) Ql Q) Q) C :J :s iD iD '" '" . c .!!1 c :s > '" '" 0 -0 -0 '" Ql c Ql '" '" '" C Ql -;;;- '" '" -0 0 ~ Ql '" :J -0 ~ C .c '" '" '" c Q) Q) '" u 1ii ~ Q) '" Q) .2 -0 -0 8 '" '" lD '1: 2- m ~ Ql C co Ql Q) '" a. .a > 0 -0 .2 c c -0 >< .c '" Q) '() ~ 0 ;t;;' Q) c '0' 'C '" 5- a..c '" co .l!l -0 :J '" '" .!:: c - Q) '" ~ .2 lD 1ii c c c '" c m 0 u u 0 , 8 Q) Q) 5-Q) :; " -0 ~ ,s .c -0, 'C co '" '" '" > u c >_ a. % " c E E 0 " Q) c C . Q) Q) Q) :; ~ 1: .Q '" '" x 0 " 0 0 ,g Q) c .c Q) ,>, u u u t3 ~ () Q) c '" " .c .; u l2 .2 c ~ 0 Q) :; :J :; '" m c '" ~ 5 "2: m Q) 0> U .~~ '" 1: '" '" '" '" 0 0 0 -0 '" 0 -0 -() c ~~ .2 .2 .S: Q) " "- '" '" '" 1ii ~ U 1:: '" - " '" '() "-" Q) Q) u u E iD f- 2 8..,~ .l!l '" r- Q) c c " '" '" '" " c c '" ~ ~ Q) .a "a. :c :s. '" '" .2 u c :E c co '" rn 0 Ql Cii " 1ii a.c c co 0 oJ '" c 1ii m u :J 0 0 Iii Ql 'C :J 0 '" Q) '" '" Cl Ql 0:. .:: Ql ~ '" 0 C ....l ....l u.. C -" wz u 0 '" al c:r: 0 r- .c .c .c '" Ql ~ 8 lD u -0 " iJ .c Q) c c '" >< x 15 :J :J ..c: a:: w w z u.. LL f- . :B '" '" o '" '" '" . rj) uJ ;:: ~ G <1: ... o 'Z uJ ~ u.J \;( 'U, u.J :I: '0 UJ '0 O? 0 \-- ~ZuJ r ::> () ~U-ZLO o;tsg ..J\--<1:'" OZ<OO OuJO'" J:~Zu.J ()~::>Z (/)uJ~;; <:(b-o u.lt.9~'tS ~u.J<.9Z ...:I:zuJ 0\--<1:0: ""u.:I:<1: ....o()W Ozo)- CllO-';w (/)_~:I: Z\;(rj)\-- Z-uJO: u.l20:O 0..0::>u. ~c I-()o (/) wZ <:( 0: w u.I 0.- t) <Ii uJ ::> Z u.J ~ u. o ~ ~ uJ \;( 'U, . . . . . . <ii I-- I-- '" '" ~ O<ii~ 'g\? .",;~ <,>'" t.O_ tj)~ ~:::. '" ;,; ~ -02 ~~ '-' .~ %$ .t!l ~ ~~ ~5 <;hiii o '0 G~ ~~ "''' 88 " " '" " u> '" .~ ~ .~ :g " 0- '" '0 ;,; 'i; '" " " .0 ""C " a; "" '6 " '" \\\ - ~ " '" '0 ""C E ~ 1'l .. ~ .S '" g .;; U '" % " E " a; t '" a " ~ o ~ $ " " o ~ '" ~ .2 s " " 2 " Oi t <.9 ~ " '" .. .0 -0 " .2 s " '" " 1 u - " " s o \-- ~ .n 'g "';:-O~ ",0'" ",,,0 .:ri~ci ('i~~ ~ o fiI, e ~ '" o ~ ~ ~ s; '" <'> .n ~ "';:-\ "'~ ",,,, Ilicl ,,~ " '" .S '" ~ 'i\ ~ " ~ '., ~ .. '" -0 " 15 .;;; " o " <5 " " '" ill '" (ij tri ,,~ "'~ ~s " .. $~ "", :st. '0" "oS '&~ " ';:: :5-6 ~~ '" w, .. " ,S@ " g %.~ ~~ " .. :> '" " " '" \j ~.E " \\\ -0 " ~~ ~~ ~; -e~ o ~ " ~ *~ "D '" . " '" ,,-0 .ss .,- 2-" ~~ ., 2 ~ E '" " ~~ ro'" S '0- "'C5 ., ,;{j 2 ",c ~~ ,,}; :;;"C " " .- 0 .: 2 ~ '" ., " ~~ :r:~ ~~ " ., .2~ s~ c:. 'c ~6 " . 'ii5~ ~ " "," ~ ! " - " ,s= .g: ..... ~ '0 Z" ~o. ~-8 \z.. " " (J) ~ ~ "':> " ~; ~ 't:.~IJ)Q) ~1J)?;c (l)~~o ~~g'fi (a1U2!'~ lJ) E"o.. 0.. fu"~ ~ (1.\ ~1DOCl " - ~ .~ g~ '6.. Ii) o~ o o o .n I-- ~ '" .:1 W, '" " - " " '0 "- " 2 ~ S .. ~ .s '& ~ :i'i ~ '" '" ;:: ~ -" '" Q) '" " " u> " " .2 -.. ""C " 2 " Q; :> o '" ~ ,s '" 5 ' 5~ g~ en'!!! " '" 'g ~ '" '" & .~ 'Q)c% '" O-~ '" 0 "'ell -0 ~~ g.g "", ';; " ",oS ~(ij " Q) 8; 0-" o.~ -g .~ s8 '1ii " '0 - " " 2 ~ '" u; " '" .s '" ,~ ~ '" '" " ~ -" '" " ;; E \-- ~ " .2 S " " E " Oi t '" ~ " ~l " '" o ,- '" \\\ g''' 'G" " 0- ~~ ~.Ql -:i'i ! 0 o~ '" '" ",$ ,,- ~~ 8-5 " " ~ 5 '" .!8'@ " " ,,'" 2~ 0.0> 1A 'E '" " 2D s$ "0. 'fh o~ '" I-- o. r- r- ~ r- oO o o to. ~~ " oS u> " - :> t5 '" '0 "- " E ~ ~ ~ ~ oS" " '" .- " .:.c. ,,- ~~ " ." :l-6 .-0 ~~ '" ~ .- " c .S ,,- ~~ '" " 0.""C " .- .c." - " " " 2.8 " '" ~o ,,- .2~ s'.g " .- ,,- ~~ " ~ ~ " 0>1'- " " -:s.s ,s en <II -E ~ " ,,-0 ~-o ~~ " - ~tI " '" ~c ,,5 ~2 0- '" 0." ~'" " '" ~~ u; ., ~':i ~~ '02 !e .Ifl " ., " "" s " ~~ 0. " .'!!. " '" " " ~ " " '" u> Q) ,"' 's ra .."" '" '" o~ ""Co> ~ .~ .2l " .s~ '" ., " '" ,Sm ,E '0 .S 0; tiS %~ ~,..g -'8" ,,$ " '" - '" $~ " 0. E% " " ~2 g,~ G>~ ,s'" .~~ ",-" ,,\-- " . ~ ro " " "'" ~! ,,- ",g' '" ,- ~-a " '" g.~ ! ~ ,,- ~%" '" <!) g~ $'g .g~ " " "'- ~5 '" 0 'i\ E 0.'" 2 " s,s -'" 0" ~~ '" " ~'& '" <!) o.E " ~ .' 0- '" ~~ ;)0 ~~ '" '" ~-~ 0'" .0'" ,," %~ ~ '" .2 " " 0 i~ ~5 ~ E ",'" "" '" " "8 ~ " '" " -0$ " '" o 0 .0 u tt " " ,,<C- " U " .- ~~ ~b 8"- " " " 0 ~ E ~ '" -0 (I) "", :S~ " " "", '" ., wE f5~ 'e'ii ~o 0.' ,,-'8 ~5ro tl~ ~ c~(I) -gc:-E Q ~ 0) al ~ c:'S ~ -0'0)'3(1) c::>''''05t :g ~~ Q) ., ~ ~ ~.s3.g ~ .$ .5 ~ (,) (/') u:I '-2 Q) Q) iii 0 o ...... 0 E '@:EO< ,," '" " ,'!!. ~ 't:~ s~ '" 5 -is ~ "- " 2 ~ 0. " -.. 0. 'G .S 0- " .c. \-- if> " " .2 S " " E " Oi :> o 0> <!) '" .S '" " a '6 " " 0. ~ '" " "Q.ci ~w, 0'" 0.'" ,,- ~ " " " 'roo -ro"C .9- 11) .s ~ 0.$ " '" .g Q) "'" ,g'l c :O'~ o " " '" '" '" '" " $= m~ :<;;9' '$'ts " - o~ "'?O- c~ ~~ ;;-" 0.'" '" 11. '" $ ~ (J) (l) 1S~E ~~B "'- " .- ~.- 'lOg-g ro~E " " '" oco.UJ --------------. a ~ ~ " '" '" 1) " " ~ - " ~ '" '" 0. " -.. 0. 'G .S 6- " -" .... if> " " .2 ~ <!) E " .,; t '" " '" ,S '" ~ Z 'is " \i '" " '" '" -g~ " " o " ~o "e: - " '" E ~$ '0 ~ " '" ';:. 1.1) o..c. ,,- " " o .- .0 " o~ ~~ " 0. ~~ ",,, '" 0 0..0 '" UJ u. d> c: " E J!l ~ <ii '1) ~ '" ;:: "" " ~ ,s '0 -t: '" 0. <ii 0, ., .s " '" " ';; '" J!l 0- to '" .S: ~ '" 0. E 8 " '" " "" \-- '" ~ ,~ .." '" S " ~ " iii ~ Cl $ " '" '" '" -a; " .S " '" " '" .c. o . EAST PENNSBORO AREA SCHOOL DISTRICT STATEMENT OF NET ASSETS - PROPRIETARY FUNDS JUNE 30, 2005 (\Mth Summarized Financial Information for June 30, 2004) . Food Service 2005 2004 . Assets Cash and cash equivalents $ 100,885 $ 146,738 Due from other funds 32,204 Due from other governments 8,576 Other receivables 2,057 Inventories 14,756 13,792 . Total current assets 158,4 78 160,530 Furniture and equipment (net of accumulated depreciation) 152,212 183,457 Total assets $ 310,690 $ 343,987 . Liabilities Due to other funds $ 210,000 $ 210,000 Accounts payable 38,384 35,274 Deferred revenues 8,713 5,714 . Total current liabilities 257,097 250,988 Net assets Invested in capital assets (net of related debt) 152,212 183,457 Unrestricted (98,619) (90,458) . Total net assets 53,593 92,999 Total liabilities and net assets $ 310,690 $ 343,987 . . . The accompanying notes are an integral part of these financial statements. FS -7 . . . EAST PENNSBORO AREA SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2005 (With Summarized Financial Information for the Year Ended June 30, 2004) . . The accompanying notes are an integral part of these financial statements. FS - 8 . . EAST PENNSBORO AREA SCHOOL DISTRICT STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2005 (With Summarized Financial Information for the Year Ended June 30, 2004) . Food Service 2005 2004 . Operating activities Cash received from users $ 706,069 $ 653,037 Cash payments to suppliers for goods and services (950,072) (967,759) Cash payments for other operating expenses (28,208) (21,148) Net cash provided by (used for) operating activities (272,211) (335,870) . Non-capital financing activities State sources 37,603 36,056 Federal sources 212,318 196,308 Notes and loans received (repaid) (32,204) General fund contributed services 5,694 3,495 Net cash provided by (used for) non-capital financing activities 223,411 235,859 . Investing activities Earnings on investments 2,947 1,002 Net cash provided by (used for) investing activities 2,947 1,002 . Net increase (decrease) in cash and cash equivalents (45,853) (99,009) Cash and cash equivalents - beginning 146,738 245,747 Cash and cash equivalents - ending $ 100,885 $ 146,738 . Reconciliation of operating income (loss) to net cash provided by (used for) operating activities Operating income (loss) $ (353,266) $ (310,005) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities .. Depreciation 31,245 31,105 Donated commodities 46,722 37,792 Net change in other assets and other liabilities Accounts receivable (2,057) Inventories (964) 4,365 Accounts payable 3,110 (98,935) . Deferred revenue 2,999 (192) Total adjustments 81,055 (25,865) Net cash provided by (used for) operating activities $ (272,211) $ (335,870) . The accompanying notes are an integral part of these financial statements. FS -9 . . . .. Assets Cash and cash equivalents Total assets . Liabilities Due to student groups Total liabilities . Net assets EAST PENNSBORO AREA SCHOOL DISTRICT STATEMENT OF NET ASSETS - FIDUCIARY FUNDS JUNE 30, 2005 (With Summarized Financial Information for June 30, 2004) Student Activities Fund 2005 2004 $ $ 82,991 82,991 $ 82,991 82,991 Total liabilities and net assets . . . . . $ 82,991 The accompanying notes are an integral part of these financial statements. FS -10 . $ 89,663 $ 89,663 $ 89,663 89,663 $ 89,663 . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES . East Pennsboro 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 municipality of East Pennsboro Township, 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 East Pennsboro Area School District have been prepared in accordance with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board is the authoritative standard-setting body for the establishment of governmental accounting and financial reporting principles. The more significant of these accounting policies are as follows: . Reporting entity . Governmental Accounting Standards Board Statement No. 39 "Determining Whether Certain Organizations are Component Units" (an amendment of Statement No. 14), established the 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: . . 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. . There are no component units that the District feels meet all the above criteria for inclusion in this reporting entity. Jointly-governed organizations . The District is a participant in four jointly-governed organizations, each of which is a separate legal entity that offers educational 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, . FS -11 I- . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd,) JUNE 30, 2005 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.) Jointly-governed organizations (Cont'd.) . I . West Shore Tax Bureau provides earned income tax collection services, 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. 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 econOmllC 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. Accumulated depreciation and 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 presented as general revenues. . Basis of presentation. Fund financial statements . Fund financial statements are also provided for ali governmental funds, proprietary funds, and fiduciary funds of the District. Major individual governmental funds and major individual proprietary funds are presented as separate columns in the fund financial statements, Nonmajor funds, if any, are aggregated and presented in a single column. Fiduciary funds are presented by fund. FS -12 . . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2005 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd,) Basis of presentation - Fund financial statements (Cont'd,) . . 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 60 days of the end of the fiscal period, except for earned income tax revenue which may be considered available if received within 60 to 90 days of the end of the fiscal year, depending upon the frequency of payments from the District's collection bureau. 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 Governmental Accounting Standards Board, . Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing anlj 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 presented 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-baiancing 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 -13 . . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2005 . 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 bUdg,et is legally required. . The Pennsylvania School Code dictates specific procedures relative to adoption of the budget and presenting of its financial statements. 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. . FS -14 . . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd,) JUNE 30, 2005 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.) Basis of presentation - Fund financial statements (Cont'd.) . Fund accounting (Cont'd.) The Capital Reserve Fund accounts for transfers from other funds and related investments earnings for capital outlays not accounted for in another fund, . The Athietic Fund accounts for athletic revenues and expenditures of those funds for athletic purposes. The Capital Projects Fund accounts for bonds proceeds and the expenditure of those funds, . The District reports the following Proprietary Fund: The Food Service Fund accounts for the operations of the cafeteria. The District reports the following fiduciary fund: . The Student 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 11and, 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 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 -15 . . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Conl'd,) JUNE 30, 2005 . 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 reported in the government-wide financial statements as "internal balances". Any balances between funds are short-term items pending p,eriodic repayments. . Inventories Inventories are presented at the lower of cost or market on a first-in, first-out basis, and are expended when used. Donated commodities are recognized as revenue and are inventoried at an estimated cost value. . Capital assets . Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government- wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost of more than $ 1,000 and an estimated useful life in excess of one year. Management has elected to include certain homogeneous groups with individual costs of less than $ 1,000 as capital assets for financial reporting purposes. In addition, capital assets purchased with long-term debt may be capitalized regardless of the thresholds established, Such assets are recorded 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. . All reported capital assets are depreciated using the straight-line method over the following estimated useful lives: Assets Years . Buildings Building improvements Site improvements Furniture, fixtures and equipment Library books 40 15 to 40 20 5 to 15 7 . Proprietary fund equipment purchases are capitalized at cost and depreciated on a straight-line basis over useful lives of 5 to 12 years. FS-16 . . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2005 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd.) Long-term liabilities . . In the district-wide financial statement, and in the proprietary fund typas in the fund financial statements, long- term debt 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 and the strai9ht-line 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, Estimates . The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disciosures, Accordingly, actual results could differ from those estimates. Comparative information . Comparative totals for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the District's financial position and operations. Certain amounts presented in the prior year have been reclassified in order to be consistent with current year's presentation. However, presentations of prior year totals by fund and activity type Ihave not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Summarized comparative information should be read in conjunction with the District's financial statements for the year ended June 30, 2004, from which the summarized information was derived, . CASH AND CASH EQUIVALENTS AND INVESTMENTS . All of the District's cash deposits are either insured or collateralized. Custodial credit risk is the risk that the District's deposits may not be returned to it in the case of a bank failure, The District does not have a formal policy regarding custodial credit risk for deposits. However, the District requires all deposits in excess of FDIC insurance coverage to be collateralized by the depository institution with approved collateral as provided by law. As of June 2005 the District has the following: . FS -17 . . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2005 . CASH AND CASH EQUIVALENTS AND INVESTMENTS (Cont'd.) . I , Deposit balances with a local bank in the amount of $ 4,225,3:::3, of which $ 100,000 was insured and $ 4,125,333 was collateralized with securities held by the bank's agent in a collateral pool. The District is exposed to custodial credit risk because the collateral securities held by the bank's agent are not in the District's name. . The District also has cash equivalent deposits with the Pennsylvania Local Government Investment Trust (PLGIT) in the amount of $ 1,666,637. These deposits are invested by PLGIT directly in a portfolio of securities which are held by a third party custodian. Since PLGIT is acting in a fiduciary capacity for the District and recognizes the District as the pledgee of the collateral securities, these deposits are considered to be held by the agent in the District's name, TAXES RECEIVABLE . Taxes receivabie are as follows: . Taxes Taxes Receivable Allowance for Receivable Deferred (Gross) Uncollectibles (Net) Tax Revenue Real estate taxes $ 421,484 $ 80,637 $ 340,847 $ 219,734 Earned income taxes 3,205,626 3,205,626 2,090,525 Personal taxes 25.963 20.438 5.525 5525 General Fund 3,653,073 101,075 3,551,998 2,315,784 Full accrual adjustment (2.315.784) Governmental activities $ 3 653 073 $ 10~ $ 3551 998 $ DUE FROM OTHER GOVERNMENTS Due from other governments are as follows: . . Governmental Activities Business-type Activities . Local sources - other taxes State sources Federal sources $ 43,204 $ 195,836 152,145 1,211 7.365 $ 391 185 $ 8576 . FS -18 . . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2005 . CHANGES IN CAPITAL ASSETS Capital asset activity for the year was as follows: . Beginning Ending Balance Increases Decreases Balance Governmental activities Capital assets not being depreciated . Land $ 325,826 $ $ - $ 325,826 Construction in progress 485 , 866 5.031 480,835 325,826 485.866 5.031 806,661 Capital assets being depreciated Buildings and improvements 51,974,125 l' ,020,525 52,994,650 Furniture and equipment 5,003,727 97,497 25,595 5,075,629 . Library books 845,656 31.072 876.728 57.823.508 1 ,149 094 25.595 58.947.007 Accumulated depreciation Buildings and improvements (14,136,349) (1,269,021) 9,386 (15,395,984) Furniture and equipment (2,576,861 ) (598,208) 21,240 (3,153,829) . Library books (382.559) ( 124, 507) (507,066) (17,095.769) --1.:1.991.736) 30 626 (19.056.879) Total capital assets being depreciated, net 40.727.739 (842.642) (5.031) 39,890,128 . Governmental activities capital assets, net $ 41 053565 ~(356 776) $ $ 40 696 789 Business-type activities Capital assets being depreciated Furniture and equipment $ 420,590 $ - $ - $ 420,590 . Accumulated depreciation Furniture and equipment (237 .133) (31,245) (268,378) Capital assets being depreciated, net 183.457 (31.245) 152212 . Business-type activities capital assets, net $ 183 457 ~ (31 245) $ $ 152212 . FS-19 . . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2005 . 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 . Business-type activities - Food service $ 1,023,208 659,051 183,582 76,322 4,688 44.885 $ 1 991 736 $ 31245 . DEFERRED REVENUES . 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 $ 2,329,266 consist of $ 2,315,784 taxes receivable not received wit~lin 60 to 90 days of the end of the fiscal period, and $ 13,482 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 . A summary of the changes in all long-term liabilities for the year ended ,Iune 30, 2005 is as follows: . Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: General obligation debt $ 40,985,000 $ 3,500,000 $ ;~, 175,000 $ 42,310,000 $ 2,435,000 Capital leases 103,035 129,054 77,078 155,011 87,492 Compensated absences 214,704 130,554 49.500 295.758 65.500 Governmental activity long-term liabilities $ 41302739 $ 3 759 608 ~! 301 578 $ 42 760 769 $ 2 587 992 FS - 20 . . . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2005 . LONG-TERM LIABILITIES (Cont'd,) A. General obligation notes and bonds payable . Changes in general obligation notes and bonds payable were as follows: Beginning Scheduled Ending Balance New Issue Refundinq Redemptions Balance . General Obligation Bonds: Series of 2000 $ 620,000 $ $ $ 10,000 $ 610,000 Series of 2001 2,890,000 110,000 2,780,000 Series A of 2001 6,965,000 405,000 6,560,000 Series of 2003 9,435,000 580,000 8,855,000 . Series A of 2003 5,270,000 125,000 5,145,000 Series AA of 2003 1,755,000 730,000 1,025,000 Series of 2004 10,000,000 10,000,000 Series A of 2004 3,500.000 3.500,000 36,935,000 3,500,000 1,960,000 38,475,000 . General Obligation Notes: Series of 1999 4.050,000 215.000 3 835,000 $ 40 985 000 $ 3 500 000 1- $ 2175000 $ 42310000 Amounts . Due Within I nterest Rates Maturitv Date Callable Date One Year GOB Series of 2000 5,10% to 5.70% August 2018 February 2005 $ 5,000 GOB Series of2001 3,60% to 5.00% August 2021 August 2006 115,000 . GOB Series A of 2001 1.95% to 3,80% September 2011 September 2006 415,000 GOB Series of 2003 2.75% to 3.75% February 2015 August 2008 595,000 GOB Series A of 2003 2.00% to 3.90% August 2020 August 2008 265,000 GOB Series AA of 2003 2.00% August 2006 Not callable 745,000 GOB Series of 2004 3,00% to 4.00% August 2018 February 2009 5,000 . GOB Series A of 2004 1.65% to 4,00% February 2015 February 2011 65,000 GON Series of 1999 Variable February 2018 Not callable 225.000 $ 2 435 000 . FS - 21 . . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd) JUNE 30, 2005 . LONG-TERM LIABILITIES (Cont'd,) A, General obligation notes and bonds payable (Cont'd,) . Scheduled debt service requirements, payable by the General Fund, are as follows: . Year Endinq June 30 Princi~lal Interest Total 2006 $ 2,43~i,OOO $ 1,444,432 $ 3,879,432 2007 2,680,000 1,334,992 4,014,992 2008 2,720,000 1,260,333 3,980,333 2009 2,80~i,000 1,179,659 3,984,659 2010 2,90~i,OOO 1,091,319 3,996,319 2011-2015 15,970,000 3,918,610 19,888,610 2016-2020 11,930,000 1,098,576 13,028,576 2021 and thereafter 86~,. 000 31,120 896,120 $ 42 31 C',QQQ $ 11 359 041 $ 53669041 In September 2004, the District issued its General Obligation Bonds Series A of 2004 in the amount of $ 3,500,000. Proceeds of the bonds, after the payment of issuance costs, are being used to fund capital improvements to District facilities, . I . B, Capital lease obligations . Changes in capital lease obligations were as follows: Beginning Balance Additions Pavments Ending Balance . HP Financial Services $ 103035 L-129054 $ 77 078 $ 155011 The future minimum lease obligations and the net present value of these lease payments at June 30, 2005 were as follows (all governmental activities): . . 2005-06 2006-07 2007-08 Total minimum lease payment Less: amounts representing interest $ 89,013 61,562 11.469 162,044 7,033 Present value of minimu m lease payments FS - 22 $ 155011 . . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd,) JUNE 30, 2005 . LONG-TERM LIABILITIES (Cont'd,) C, Compensated absences . Changes in compensated absences were as follows: Beginning Balance Net Chanoe Ending Balance - Governmental activities Severance payments Vacation leave $ 172,752 $ 41.952 76,915 4.139 $ 249,667 46,091 $ 21~ $ 81054 $ 295 758 - Compensated absences (those for which employees received 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: I- I Vacation (administrative personnel only) - unused vacation days (not to exceed 5 days) are paid at the time of separation. - Sickness - no payout required except to retirees who meet the requirements below for severance payments Personal days - unused personal days (not to exceed 5 days) may be carried over but no payment is required upon termination . Retirement severance payments - retiring employees with at least seven consecutive years of District employment immediately prior to retirement, at least twenty yealrs of service to the District, and at least thirty years of total school service credited under the State Retirement System are eligible for severance payments based on years of service and accumulated sick leave days. The retirement payment amount is equal to $ 300 times the number of years of continuous District service to a maximum of $ 9,000 for thirty years. In addition, eligible retirees are reimbursed for accumulated unused sick leave in excess of one hundred days to a maximum of three hundred days at a rate of $ 50 per day for a maximum payment of $ 10,000 for accumulated sick leave, Total maximum severance payments to each eligible retiree under the new collective bargaining agreement in effect through August 31,2005 is $19,000. . . FS - 23 . . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30,2005 . OPERATING LEASES . The District leases photocopying machines pursuant to various lease agreements which are being accounted for as operating leases. Total lease rental payments during the year ended June 30, 2005 were $ 123,676 Minimum net lease rental payments for future periods are expected to be as follows: . 2005-2006 2006-2007 2007-2008 2008-2009 $ 123,796 52,124 12,930 6,069 MANAGEMENT SERVICES I. The cafeteria facilities of the District were operated by a third party vendor, Under the terms of the contract, the vendor provides for the operation and maintenance of food services as required by law, with the policies subject to the approval of the District. Operating costs, management fees and administrative costs are billed monthly to the District. . 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 Gluthority 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 i1ssistance 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.osers.state.oa.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, I n most cases, the contribution rates based on qualified member compensation are as follows: . Membership Class T-C Membership Class T-C Membership Class T-D Membership Class T-D Active members hired before July 22, 1983 Active members hired on or after July 22, 1983 Active members hired before July 22, 1983 Active members hired on or after July 22, 1983 5.25% 6.25% 6.50% 7,50% FS -24 . . EAST PENNSBORO AREA SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2005 . PENSION PLAN (Cont'd,) . 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, . Contributions required of employers are based upon an actuariai valuation. For the fiscal year ended June 30, 2005, the employer contribution rate was 4.23 percent of covered payroll, composed of 4.00 percent for pension benefits and 0.23 percent for health care insurance premium ass'lstance. The District's contributions to the system for the years ending June 2005,2004 and 2003 were $ 579,590, $ 504,105, and $ 144,840, respectively, Those amounts are equal to the required contributions for each year, OTHER POST-EMPLOYMENT RETIREMENT BENEFITS . The District offers one post-employment benefit to retired professional employees other than pension benefits as discussed in the previous note, For employees with twenty or more years of service to the District, the District will pay the basic medical insurance premiums for five years (excluding family coverage) following retirement The District finances this benefit on a pay-as-you-go basis. The cost of this benefit amounted to approximately $ 56,000 during the year ended June 30, 2005 and covered 21 eligible retired employees, The District does allow other employees not eligible for this benefit to remain in its group medical insurance plan upon payment by the retired employee of the cost of such coverage, I I. I RISK MANAGEMENT . The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; 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 commerci~11 coverage in any of the past three fiscal years, . For State unemployment compensation laws, the District is self-insure,d, 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 partiGipate in a public entity risk sharing pooi (School Districts Insurance Consortium) for processing claims and ot'taining reinsurance through commercial insurance carriers. Under this plan, the District's annual cost should not exceed standard commercial insurance rates, Effective August 1, 2005 the District joined several other local school districts for health insurance coverage through South Central Trust. The Trust processes claims and obtains reinsurance through commercial insurance carriers. The District is required to maintain adequate balances to cover risk and incurred but not reported ciaims. . FS - 25 . . EAST PENNSBORO AREA SCHOOL OISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 2005 . COMMITMENTS AND CONTINGENCIES . The District's prior contract with its teaching staff expired August 31,2004. in April, 2005 the District entered into a new collective bargaining agreement effective September 1,2005 throu9h August 31,2009. 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 participates in numerous state and federal grant programs which are governed by various rules and regulations of the grantor agencies, Expenditures charged to the respective grant programs are subject to audit and review by the grantor agencies; therefore, any findings or adjustments by the grantor agencies could have an effect on the recorded grants receivable and/or deferred grant revenues, and on the related grant revenues and expenditures. As part of its ongoing capital projects, the District has entered into contract commitments totaling approximately $ 1, 1 00,000 for various construction and improvement projects at June 30, 2005, including amounts due on disputed contracts waiting for final settlement . The District is named as a defendant in various lawsuits, all in the ordinary course of business. The District intends to vigorously defend itself against these actions. Legal counsel for the District has advised that they cannot offer an opinion as to the probable outcome of all such actions. In the opinion of management, the ultimate liabilities, if any, resulting from these claims will not have a material adverse effect on the financial position of the District . . . . FS -26 . . . . . W U Z ::i <( co ....0 u5 c::lJ.. ....Z UJenO is W Z '" 0::Jg ...J Z u... N O<(...J a ~15ffi~ ~~~5 W<(m--' <(en'-;'o w W...JW c::<( ~ :3 ~ t::.....w OOUn:: c::~<(~ OQ.~>- llJ X <( W UJ W I--- I Z ui WI--- Zw0n:: W::JOO ll..Z::JlJ.. wco ....> UJW <(n:: W~ I--- Z W ::;: W I--- <( I--- en . . . . . . . 'E - " 1l (]) 0 c.g>E ",,,<C .~ CD ro >(tj::l .-co ~i.L<( ~ .8 :s > .ll! c: 'E :J (]) " -0>0 (]) ." E ~~<( oro~ ~ '5, 13 u.. ';::: <( 0.9 tO~Nr:::-O ...-0",,"0 co OLO(J)(()..... L0t---c6o) ci VC'1C'1rn!'- ~ .....-...... '" r:o......NR6 .......O"<;f"OCO OLOO'>CO..... L6r--:<6crici v(")C")o>r---. t:!.- .....-..... '" 'E " o E <C ro " t> <C r--...... to CD 0 QroNON t--mr--.O>M ciciNu10 M(OCO<O..q- ...,-<DC'1"'t0'l O'l" t-~ r--.,- ~ N '" 1i> ." " OJ ro c: u:: MO'Q"(")O NQJOO"-O 1'-"It......lOlO Lri' C')-l,[j" 1.0 ci t--N...,.<D,- <D<DNlO..... oi 1"-- ai ~ N '" 1i> 0> ." " OJ ro .S (5 ('1')0",,"('")0 NOOCC..-O t--VI'-LOlO Lti ri t.O Ll)- ci t-NV<D...... COCONLO..... 0)- r--~ a:i ~ N '" '" ~ (]) (]) x.r::: "'- _ 0 , '" (]) " '" c: (]) (]) ~ ~ ~ 2 a; (,.) 2 () :J "- ~ :::l ~ 55 ro 000 0 U)lI){/)ro~ cnroro(1)Q) Q.l(.)()m"'C 2.3.3Ci5~ (]) > (]) n:: t-<'?<'? ~N ~O> ciLti <'?N C"'>COr---.....OOOt--lONlO co C0o;;t r--..-C") CON co m t- (OL!)..-LO...-OV..... ~ C'i-i"c5Lri...,.-t-- o::i ..... ..-C\l......NO) ~ ~ ONNO 0>....."\t<D .,...co..-..- ~..f~a5 LOLO~ Ncom.....M(oC'1('\JLO ...-C")coLOU)NO>NO) ("')NO>CO"i;f"coOCD..- -r--ricDNM"Q'"-r--:r--.-a5 NT""NN..........CON --.......... ...... N~'" <'? " "' cO at- <O~ coo -.;;r- N <'?O> " Nt- cot- t-<'? ~.,..: mOMN COQ)CO"", ONC"1t--. L6oN"r--: NC"'>lOO'> - -" ~~~~~~~g8~~~~2~~~~~ NM(Ot--LOCO.....Q)CO.....NLOCOO\'-OLOLOt- r--:0r--:N"..fcir--:LriN"or--:cD"":ririL6a5N"M .....NNM.....NlOLOt--(OMNC")C")CONVt-V Mt-M.....vcnmcoNvMo v IDCO {\fN- . N"-" crir..: ~ N I"-LOCDONVOowm~~oovo~~v ~MroNm~~~~~~roo~om~o~ ~N~~~v~o~~Nmoo~o~v~ ~N~~~M~0ro~~00M6~ro~~ v~Nv~N~~roro~Nv~mNvO~ ~~~~vmm~Nv~o v ~~ NN "N-~" MOO- ~ N oV.....~Nmro~~C:O~LOocom .....Nv.....voo(O.....LO~~vO(ov v.....LOmN~.....(Oom~.....ON..... 00- ~ (0- 6 M ~- v- 00- (0- v- v- v- 6 ~- ~- ~CO(j)vQ)OCO~oo~N~'<:tNCO (I")~N.....MmO~Nvl{)O v N-N" ~.....- N"~ ~ '" '" E E '" ~ ~ 0> 0>0 o ~ "'~"- E~Q) E U) ~ ~ ~ :t:: roEO'lo=Qjro ,-~e:;::;oc1I.i O)Clo..UUC_ eo_2~oro 0.. 0.. ro 1ii.c ~ ~ U),-_CC::IQ):;::; Q) ro ro.Q"- E 0.. U :;-S"u1OO>E=2 :gg'~g=og.1ii cO::(I)>Oua..E (]) "- x W c: o :;::;..c "'>= .;:. ro U) '" (]) '" :!;:: ~ E "6."00 ." " " <CD-OJ 'E '" Q. '5 (]) () c: '" :5 c: C .Q "(6 10 E15Ul ." "- (]) C U) .S::! '" c: 2: c ~ Q) 0-'" ~~~ w"Cc c...a Q) Ocnll O<'?O> 0<0<0 co~" ro 0 " t-N" <O<'? 6ro N '" (]) () '1: (]) '" '" (]) t~ ~U "-ro "- '" c: ~ (]) (]}." .c " oili 1;; [1' (]) 1; ." c: '" '" ro ~ '" "-" ~ .g:g .~ .~ ~ w :>,......... 0.. U'J ro Q) >< ~'3"S::! ~ "c 0 c: ..s = _ Q) 0 E2Ull- E "6. 15 c ro (]) uuo t- <'? co ~ N <'? N <'? "' ,.: N <'? <'? <0 "' cO 0> " t- N '" N ~ m <0 0> o <'? ~ '" [1' .2 '5 c: (]) "- x (]) :;; > o '" (]) " c: (]) > [1' '5 % c: (]) '<} '" (]) :s '" '" (]) () x W 0> c: '<} c: '" c: '" (]) '" U)oom ~"O= " c: '" .........:J;'!: ",- "- ~ w ~ ~.r::: 6 (5 E 00 0 e Cl~~ c:~." "0 ~ Q) c: '" (]) '" c: () c ro e ~;:a.. (]) .r::: o ~vON O~OQ) oooco ~criOU1- NO"' ~N<O ~VON mU10m (Oooro ocrici~ .....N.....t{) C.....l{)~ "" 0> "' <00 om- <ON C~ "' 0> <0 '" <0 C Om 0<0 00> 06 00> ti-t:::.- 8 o o o !!l- om 0<0 00> 06 ~O> ~t::., '" (]) () c: (]) '" 2:ro (]}.o "'." (]) c: ~ " ~- ro .S 1i> (]) 0>0> ." c: " ro OJ.c () 1i> z ;::- t- o '" <'? ~ "' o " o N N t- O> N cO t- co '" "' o " o N N t- O> N cO t- co '" "' t- <'? co 0> N cO t- o ~ ~ N '" o t- O> o 0> 0> o o o o N '" o t- O> o 0> 0> u co o o o o N '" 0> c: 'c c: 'c, (]) .0 0> c: '5 c: (]) (]) () c: ro ro .0 ." c: => lJ.. (]) () c: ro ro .0 ." c: " "- ,- -t rl >. ('") .....j r-( c; ~ -i >' 6; t'" (": ----. ~ c ",~::;; ~ - 1._.., co <J , CiL , () \ if Lu -- ....- ~l.tl '-::c -, Q (:Y 1-' --.r) ~-) CJ .<- c:? 0 0 c::;.. 't>t. c'-' ~~-